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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 TOP SECRET – Sensitive  : United States should be adapted to promote, where possible, economic conditions that will contribute to political stability in friendly countries of Asia, but the United States should carefully avoid assuming responsibility for the economic welfare and development of that continent...."


 * "h. The United States should continue to use its influence in Asia toward resolving the colonial-nationalist conflict in such a way as to satisfy the fundamental demands of the nationalist movement while at the same time minimizing the strain on the colonial powers who are our Western allies. Particular attention should be given to the problem of French Indo-China and action should be taken to bring home to the French the urgency of removing the barriers to the obtaining by Bao Dai or other non-Communist nationalist leaders of the support of a substantial proportion of the Vietnamese....


 * "i. Active consideration should be given to means by which all members of the British Commonwealth may be induced to play a more active role in collaboration with the United States in Asia. Similar collaboration should be obtained to the extent possible from other non-Communist nations having interests in Asia.


 * "j. Recognizing that the non-Communist governments of South Asia already constitute a bulwark against Communist expansion in Asia, the United States should exploit every opportunity to increase the present Western orientation of the area and to assist, within our capabilities, its governments in their efforts to meet the minimum aspirations of their people and to maintain internal security."

Thus, in the closing months of 1949, the course of U.S. policy was set to block further communist expansion in Asia: by collective security if the Asians were forthcoming, by collaboration with major European allies and commonwealth nations, if possible, but bilaterally if necessary. On that policy course lay the Korean War of 1950–1953, the forming of the Southeast Asia Treaty Organization of 1954, and the progressively deepening U.S. involvement in Vietnam.


 * b.

On December 30, 1949, the French signed over ten separate implementing agreements relating to the transfer of internal administration in Vietnam to Bao Dai's State of Vietnam, in accordance with the Elysee Agreement of March 8, 1949. By January, 1950, Mao's legions had reached Vietnam's northern frontier, and North Vietnam was moving into the Sino-Soviet orbit. A Department of State telegram reviewed U.S. policy as of 20 January 1950: Rh