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 In addition to the foregoing, there are several points which have come out in discussions with the British which are worthy of mention:

. The British have no intention of "pressing forward" with a Southeast Asia Collective Security Organization until the Indochina phase of the Geneva Conference has been terminated.

. The British representative has referred on a number of occasions to use of military force to repel overt Communist aggression. However, the British attitude with respect to infiltration and subversion is vague.

. The British consider that the principal problem in dealing with Southeast Asia after an Indochina settlement would be a large-scale economic assistance program. Although there has been no discussion as to support of the economic assistance program for Southeast Asia, there is little doubt which state would be the principal contributor.

During the course of the meetings, General Smith has maintained that regardless of whether there is a settlement in Indochina it is necessary that an effective collective security organization be established. Further, it is necessary that the organization be established immediately in order that we will be in a position to deal with the probable adverse political and military repercussions in the Associated States that will result from an unsatisfactory settlement of the Indochina conflict. It has also been pointed out to the British that inasmuch as the principal danger of further Communist aggression in Southeast Asia will probably take the form of infiltration and subversion, the organization must be in a position to deal effectively with this situation.

Since approval of a collective security organization would probably require considerable time for action by the various governments concerned, the United States representatives have proposed that consideration be given to the establishment of an interim organization to deal with the situation. The British have indicated tentative agreement with this idea. A further point ha been made by the U. S. representatives that no geographical limitation should be put on the treaty covering the collective security area. I recommended, and Secretary Dulles agreed, that the area covered by tho treaty should not be restricted to Southeast Asia, but rather should be open to permit inclusion of non-Communist states of the entire Far East area. Although Sir Robert Scott did not object to this view, it is possible that when the formal British position becomes clear they might not agree to leave open the area to be covered by the Treaty.

An additional point which has been discussed with the British has been the question of a declaration to be made in the event of a settlement at Geneva on Indochina. Secretary Smith informed the British that the U.S. is planning to make a unilateral declaration and hopes that Rh