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 TOP SECRET . Encourage the countries of Southeast Asia to restore and expand their commerce with each other and the rest of the free world, stimulate the flow of the raw material resources of the area to the free world, and assist in establishing small arms production in appropriate locations in Southeast Asia under suitable controls.

. In Indochina:


 * (1) Continue to increase the military effectiveness of French units and the size and equipment of indigenous units by providing timely and suitable military assistance without relieving the French authorities of their basic military responsibilities or committing United States armed forces.


 * (2) Continue to encourage internal autonomy and progressive social and economic reforms.


 * (3) Continue to promote international support for the three Associated States.

. In Indonesia, the United States should seek to strengthen the non-communist political orientation of the government, promote the economic development of Indonesia, and influence Indonesia toward greater participation in measures which support the security of the area and Indonesian solidarity with the free world.

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