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 ANNEX TO NSC 124

February 13, 1952

1. To determine the policy of the United States toward the countries of Southeast Asia, and in particular, the courses of action which may be taken by the United States to strengthen and coordinate resistance to communism on the part of the governments and peoples of the area, to prevent Chinese Communist aggression, and to meet such aggression should it occur.

I.

2. Communist domination of Southeast Asia, whether by means of overt invasion, subversion, or accommodation on the part of the indigenous governments, would be critical to United States security interests. Communist success in this area would spread doubt and fear among other threatened non-communist countries as to the ability of the United States and the United Nations to halt communist aggression elsewhere. It would strengthen the claim that the advance of communism is inexorable and encourage countries vulnerable to Soviet pressure to adopt policies of neutralism or accommodation. Successful overt Chinese Communist aggression in this area, especially if achieved without encountering more than token resistance on the part of the United States of the United Nations, would have critical psychological and political consequences which would probably include the relatively swift alignment of the rest of Asia and thereafter or the Middle East to communism, thereby endangering the stability and security of Europe. Such a communist success might nullify the psychological advantages accruing to the free world by reason of its response to the aggression in Korea.

3. The fall of Southeast Asia would underline the apparent economic advantages to Japan of association with the communist-dominated Asian sphere. Exclusion of Japan from trade with Southeast Asia would seriously affect the Japanese

ANNEX TO NSC 124