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July 13 1954

MEMORANDUM FOR THE SECRETARY OF DEFENSE

SUBJECT: U.S./U.K. Discussions on Southeast Asia

Three meetings of the Joint U.S./U.K. Study Group on Southeast Asia, established as a follow-up to the Eisenhower/Churchill discussions, have been held. In addition, there have been several meetings of tho U.S. side. Under Secretary of State Walter Bedell Smith is the Senior U.S. Representative. The U.K. is represented by Sir Robert N. Scott.

The views of the U.K. with respect to collective security in the Southeast Asia area may be summarized as follows:

. It is the British view that a collective security arrangement for Southeast Asia should be considered in two contexts, (1) on the basis of a settlement in Indochina, and (2) on the basis of no settlement. In the event of a settlement which does not pose an immediate military problem, the British would prefer a generalized collective security arrangement designed to bring in as many states as possible. This approach would include such states as India, Indonesia, and Burma. On the other hand, if there is no Indochina settlement at Geneva the British would agree to immediately establish an organization to meet the military threat. Such an organization would presumably be limited to those countries who would make military commitments to halt the Communist aggression.

. Under the arrangement which the British prefer be established in tho event of a settlement, there would be three principal elements to the organization: a council which would include all participants in the organization, an economic and political council which would include as many of the states as possible and would deal with the economic and social problems of tho area, and a military organization which would have fewer members, since states such as India would unquestionably not wish to participate in the military aspects of the organization.

. In the event that there is no agreement in Indochina, the British would immediately move ahead with an effective military arrangement designed to obtain as much support as possible for an organization to resist further Communist aggression in Southeast Asia. RhRh