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 4. The Communist regimes in North Korea and North Viet Nam have established effective control over their respective areas and represent a constant threat to their free-world counterparts and other nations os the region. Both depend heavily on support of all kinds from the Sino-Soviet Bloc.

5. A fundamental source of danger we face in the Far East derives from Communist China's rate of economic growth which will probably continue to outstrip that of free Asian countries, with the possible exception of Japan.

In view of both the real and the psychological impact of Communist China's growth and the major effort of the Soviet Union to gain influence in the less developed countries with aid and promises of quick progress under Communism, emphasis should be placed upon economic growth of the free Far East countries, but this cannot be at the sacrifice of adequate security measures, for, without security and the stability and confidence deriving from security, real economic progress will be unattainable.

6. That portion of the Far East not under Communist control does not represent a unified area. Rather, it is characterized by inter- and intra-national stresses and strains that almost deft solution by orderly processes. Age old fears, jealousies, and suspicion aggravated by World War II scars and memories inhibit efforts toward developing cohesion among the nations. Rh