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communist penetration in any one area, point to the importance of action designed to forestall any aggression by the Chinese Communists. The most effective possible deterrent would be a joint warning by the United States and certain other governments regarding the grave consequences of Chinese aggression against Southeast Asia, and implying the threat of retaliation against Communist China itself. Such a warning should be issued in conjunction with other nations, including at least the United Kingdom, France, Australia and New Zealand. Participation in such a warning involves all the risks and disadvantages of a precommitment to take action in future and unknown circumstances. However, these disadvantages must be weighed against the alternative of a costly effort to repel Chinese invasion after it has actually occurred. A second, but probably less effective, means of attempting to deter such an invasion would be to focus world attention on the continuing threat of Chinese Communist aggression against Southeast Asia and to make clear to the Soviet and Chinese Communist Governments the fact that the United States views the situation in Southeast Asia with great concern. In fact, statements along these lines have already been made. Such means might also include a Peace Observation Commission, if desired and requested by the countries concerned, public addresses by U.S. officials, and "show the flag" visits by naval and air units.

17. The Chinese Nationalist forces represent considerable reserve upon which to draw in the event of military action against Communist China. The deficiency in equipment and training seriously limits the possible employment of these forces at present, however, continuation of our training and supply efforts should serve to alleviate these deficiencies. The manner of employment of these forces is beset not only with military but also with political difficulties. Hence the decision as to the best use of these forces cannot be made at this time. Nevertheless, we should be prepared to make the best practicable use of this military augmentation in light of the circumstances existing at the time. ANNEX TO NSC 124 Rh