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TOP SECRET earliest practicable date comprehensive and detailed recommendations for such revisions in such policy as may be required by national security interests, both long and short range.

. Utilize all feasible overt and covert means, consistent with a policy of not being provocative of war, to create discontent and internal divisions within each of the Communist-dominated areas of the Far East, and to impair their relations with the Soviet Union and with each other, particularly by stimulating Sino-Soviet estrangement. However, do not agree to Chinese Nationalist offensive actions against mainland Communist China, except under circumstances approved by the President. Agree to Chinese Nationalist actions against Communist China which are prompt and clear retaliation against a Chinese Communist attack; provided such retaliation is against targets of military significance which meet U.S. criteria as to feasibility and chance of success and which are selected with due consideration for the undesirability of provoking further Chinese Communist reaction against Formosa and the Pescadores.

. Continue the policy towards Indochina and Thailand stated in Annex A.

8. . The United States should attempt to convince the other Free World countries of the soundness of U.S. policies toward Communist China and toward the Republic of China and of the advisability of their adopting similar policies, without, however, imposing such pressures as would be seriously divisive. Rh