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D. Nationalism that expresses itself in Asia as anti-colonialism, if properly guided, is also a potential weapon against Communist imperialism. At the present time, however, some Asians tend to regard "Western colonialism" as more evil and pressing than the possible future threat of Communist imperialism.

E. Economically, the countries of Southeast Asia vary in their products and markets. Many major export products of the area (rubber, tin, copra, etc.) are absorbed by the West. However, rice production is a natter of pan-Asian concern as is oil production.

F. Southeast Asia as a region is less homogeneous than the Atlantic Community or the American Republics in the factors making for real regional consistency and strength. There are major ethnic and religious differences as well as traditional enmities. There is no sense of a common danger as regards Communist imperialism.

G. Current developments including military operations in the Associated States and the forthcoming Geneva Conference, will have a major influence on future U.S. policy throughout Southeast Asia.

H. U.S. position and policy in the area are most effectively represented in the Philippines and in Thailand, from which countries — outside of Indo-China — any expanded program of Western influence may best be launched.

IV --

A. The Special Committee considers that these factors reinforce the necessity of assuring that Indo-China remain in the non-Communist bloc, and believes that defeat of the Viet Minh in Indo-China is essential if the spread of Communist influence in Southeast Asia is to be halted.

B. Regardless of the outcome of military operations in Indo-China and without compromising in any way the overwhelming strategic importance of the Associated States to the Western position in the area, the U.S.. should take Rh