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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 TOP SECRET – Sensitive :d.

In the meantime, U.S. policy suffered, a setback in Asia. A China Aid Program had been enacted by Congress in June, 1948, in the same omnibus foreign assistance legislation which authorized ERP and ECA. The China Aid Program met almost immediate failure, for Mao's armies spread unchecked over the China mainland, and by late 1949, the position of the Nationalists there was untenable. This "failure" of U.S. aid — it was termed such by Congressional critics — no less than the urgent situation in Europe figured in Congressional action on military assistance legislation placed before it in 1949.


 * e.

In September 1949, the Soviets exploded their first nuclear device. On October 6, 1949, Congress passed the Mutual Defense Assistance Act, designed as a comprehensive law, providing a Mutual Defense Assistance Program (MDAP) through which U.S. arms, military equipment and training assistance might be provided for collective defense. In the first appropriations under MDAP, NATO countries received 76% of the total, and Greece and Turkey (not yet NATO members), 16%. But Korea and the Philippines received modest aid, and the legislators clearly intended the law to underwrite subsequent appropriations for collective security in Asia. The opening paragraph of the law not only supported NATO, but foreshadowed SEATO:


 * "An Act to Promote the Foreign Policy and Provide for the Defense and General Welfare of the United States by Furnishing Military Assistance to Foreign Nations, Approved October 6, 1949.


 * "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the 'Mutual Defense Assistance Act of 1949.'


 * "FINDINGS AND DECLARATION OF POLICY


 * "The Congress of the United States reaffirms the policy of the United States to achieve international peace and security through the United Nations so that armed force shall not be used except in the common interest. The Congress hereby finds that the efforts of the United States and other countries to promote peace and security in furtherance of the purposes of the Charter of the United Nations require additional measures of support based upon the principle of continuous and effective self-help and mutual aid. These measures include the furnishing of military assistance essential to enable the United States and other nations dedicated to the purposes and principles of the United Nations Charter to participate effectively in arrangements for individual and collective self-defense in support of those purposes and principles. In furnishing such military assistance, it remains

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