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NSC 124/2 was approved by the President on June 25, 1952. He directed that implementation of NSC 124/2 would be by all appropriate Executive Departments and Agencies of the United Stated Government, under the coordination of the Secretaries of State and Defense. It is requested that this first progress report, submitted in accordance with the directive of the President, as of June 15, 1953 be circulated to members of tho Council for their information.

The main objectives of the United States are to prevent the countries of Southeast Asia from passing into the Communist orbit and to assist them to develop the will and ability to resist Communism from within and without and to contribute to the strengthening of the free world.

The general considerations to be taken into account in determining courses of action (Sections 2–6 of NSC 124/2) continue applicable without change of emphasis or addition except for the reference to rice exports in subparagraph of Section 2. Indochina should have been included as a rice exporter along with Burma and Thailand. The rice exports from these areas are of great importance to other rice deficient Asian countries including especially Indonesia, Ceylon, India, Malaya, Hong Kong and Japan. By offering rice and a high price for rubber Communist China has been enabled to secure rubber from Ceylon and thus to diminish the effectiveness of the UN attempt to embargo rubber going to Communist China. Communist China is making a serious effort to secure rubber from Indonesia; the success or failure of this effort will depend in part on the degree to which the United States shows a practical understanding of the economic, social and political problems of the rubber producing countries and of the impact of low rubber prices on tho stability of these countries.

(7a) United States Information Services continued to utilize the media of press, radio, motion pictures, and utilize information centers to explain United States objectives and actions and to counter Communist propaganda. Information centers and libraries and exchanges ofRh