Foreign Relations of the United States, 1955–1957, East Asian Security; Cambodia; Laos, Volume XXI

91. Telegram From the Delegation at the SEATO Council Meeting to the Department of State¹

Karachi, March 8, 1956—9 a.m.

Secto 19. Department pass CINCPAC. Third session morning March seventh closed session (part II).

Consideration item 5, classified report.² Thai representative approved classified report and its recommendations. Further recommended addition of Economic Officer to Executive Secretariat. He stated his government would continue provide housing for Secretariat and research service center. Recommended that at later date contributions to SEATO should be in accordance UN ratio. Economic officer proposed by Thais would devote full time study economic questions, prepare economic matter for permanent working group and serve as secretary economic committee.

In consideration of classified report French Foreign Minister submitted four papers³ as follows:

1. General statement of principles governing international economic relations specifically concerning assistance, expansion of trade, stabilization raw material prices, agricultural surpluses and peaceful use of nuclear energy.

2. Recommendation that member states submit within four months reports on special problems resulting from their defense effort. Reports to be considered by Economic Committee which will recommend what measures or assistance would be appropriate.

3. Recommendation for reports on areas where economic weakness contributes to susceptibility to subversion. Economic Committee to consider and make recommendations.

4. Proposes approval recommendation Economic Committee that each government appoint representative Bangkok to keep his government informed re SEATO economic affairs and develop more continuous flow of economic information.

French delegation invited economic experts to hold next meeting in Paris.

UK delegation accepted all recommendations in classified report. He suggested that Wadhana Isarabhakdi of Thailand who has been acting as Executive Secretary for Council Representatives be made permanent SEATO Executive Secretary and offered nominate UK candidate for Deputy Executive Secretary. British representative pointed out SEATO will now have full time PRO. Military plan appoint PRO and have asked Council coordinate civilian and military public relations programs. In British view public relations are primarily political function and should be only civilian PRO who might be assisted by military expert. British submitted suggested directive on public relations policy describing functions of Public Relations Officer citing principles which should guide him.

Australian representative accepted all recommendations classified report. Commended Philippine suggestion for stronger countersubversive organization. Discussed economic and military aid and referring to what he called quasi-military aid. Stated his country might be able to help in this field.

Philippine delegation submitted paper⁴ recommending establishment office Secretary General responsible to Council and for continuation of Council Representatives and military advisers on a “coordinate and parallel level”. Philippine paper viewed preparations to meet subversion as totally inadequate and recommended setting up “an integrated and effective SEATO anti-subversion group to detect, expose and counteract subversive activities”. Also recommended permanent Economic Section within International Secretariat and increased staff for research service center. Chart accompanying Philippine paper showed a special security committee with, subordinate to it, sections labelled Information Culture and Education, Labor, special projects.

US (Dulles) called report most valuable contribution and US accepted all its recommendations. Commended Council Representatives for working out report this scope and magnitude as encouraging sign growing cohesion efficiency of organization and its ability work together. Re countersubversion Secretary commented member nations now faced with new development “peaceful offensive”. Essential have interchange of knowledge within threatened area concerning nature and substance of threat and unity of planning for action to counter each threat. Welcomed recommendation for research service center to increase ability identify and expose methods, mechanics and modus operandi of international communism affecting treaty area. Secretary urged early establishment research service center. US will submit nominations for positions on staff during next meeting in Bangkok of Council Representatives. Re economic, felt most encouraging progress made by less developed members in initiating programs to build economic strength through expansion and development agriculture, irrigation, farming, transportation, electric power, communications, et cetera. Progress in industrialization also begun and some impressive results achieved. US Government will ask Congress appropriate funds next fiscal year to continue assistance programs and will ask for authority make certain long-term aid commitments to provide greater assurance of continuity in aid programs. Secretary called attention to other sources of US capital, Asian Development Fund and Export Import Bank. Latter stands ready to consider applications for loans from treaty area members for economically sound projects. US will cooperate to meet problem shortage skilled labor and is prepared join in contributing resources and personnel. US supports proposal of Thailand delegation for economic officer and staff. Secretary welcomed recommendation for Cultural Relations Office and said US currently planning inaugurate new program bilateral exchanges to be known as “SEATO Grants”. Secretary hoped SEATO would expand its information program along both public and confidential lines. Secretary urged full effective support of member nations in making SEATO widely and favorably known. He attached great importance to recommendations for strengthening treaty organization, especially prompt establishment of permanent working group and Secretariat.

New Zealand delegation considered very important stress positive aspect SEATO work with increased emphasis economic field. Disturbed by inadequate coordination between Council Representatives and military advisers and said would circulate paper setting forth concrete recommendations. New Zealand as small country doubted sharing on equal share basis cost of Secretariat by willing accept Thai proposal subject review after one year. On publicity, felt one man should be responsible for both military and civilian information. Supported Thai proposal for economic officer on Secretariat. Said would examine with interest Australian proposal re “twilight area” of aid between straight civilian and straight military aid.

Pakistan (Amjad Ali) had some reservations but in general supported contents report. Very interested Australian suggestion re “twilight area” economic aid which he said US called “defense support”. Cited such base Chittagong and road transport. 65 percent central resources Pakistan now devoted to defense; income tax up to 78 percent in higher brackets. Heartened by US intention request congressional authority put aid on long-term basis rather than year to year. Welcomed mention of Asia fund and Export Import Bank. Hoped for private investment to help develop Pakistan resources. Generally agreed re recommendations for expenses of Secretariat. Supported Thai proposal for economic officer on Secretariat.

UK (Lloyd) welcomed Australian proposal for strengthening organization. Desired time study Philippine proposals more closely. Re countersubversion agreed Australian need to identify this question more precisely. Cited example of Chinese Communist subversion in Chinese school, Singapore. Re strengthening police and security forces in area UK prepared exchange experiences other type counter-measures.

US (Dulles) said he felt Council should in general confine itself to report. Difficult for Council members give consideration new proposals of broad character made in present meeting rather than coming up through process of study and consideration by Council Representatives.

France suggested separating proposals for simple amendments or additions to report from completely new proposals.

Council Representatives instructed meet separately and report to Council at afternoon session on how various proposals before Council should be handled.

Dulles

1. Source: Department of State, Central Files, 396.1–KA/3–856. Confidential. Repeated to London, Paris, Canberra, Wellington, and Manila.
2. “Report of the Council Representatives to the Council”, designated SCR(56)/REP–C and dated March 1956. In it the Council Representatives recommended the establishment of a Permanent Working Group to be composed of full-time employees (one from the staff of each of the Council Representatives), the setting up of a permanently-staffed international Secretariat headed by an Executive Secretary, the creation of a Research Service Center for the collection and distribution of overt materials on Communism, the development of an information program to be implemented by a new Public Relations Officer, the establishment of a cultural relations program to be administered by a new Cultural Relations Officer, and the funding of these additional functions and staff by a common budget. (Ibid., Conference Files: Lot 62 D 181, CF 666)
3. None printed. These papers bear the series designators SCM/K.56 D/7 through SCM/K.56 D/10. (Ibid., CF 661)
4. “Strengthening of the SEATO Organization”, SCM/K.56 D/3, dated March 7, not printed. (Ibid.)