FAR EAST / PACIFIC BRANCH WEEKLY SUMMARY 9-15 DECEMBER 1947

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A004600010004-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 23, 2016
• Document Release Date: March 12, 2013
• Sequence Number: 4
• Publication Date: December 15, 1947
• Content Type: REPORT

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yitGS.R1.1
Nicument No.
6
0 0 la; C A_A!!C1
NO CHANGE in Class. jJ
t'eciay Sumary
StDECLASSIFIED
1 ss. CHANGED TO: TS $ W
C 9-15 Decesber 1947
DDA Memo, 4 Apr 77
Auth:infirzazg____
G:LiltAL
? : 1978 BP "
Date:
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LCAFE
15 Decellieer 1947
f,CAPE concluded its seCond session in Baguio on December 6 after ?
adopting a copidichensive program outlined by the US for economic re-
habilitation of the Far /est. A part of the outlined plan, adopted
over vigorous ,JSSR protest, provides for 'a consultative arrangement
betv:Len the commission and control authorities in Japan and tom:.
The uiz:a mintained that it was unnecessLry to set ui a consultative
fraLework for.orea vim: that country was usoonn to be ineepeneent.
It had been anticil atad that the relationship of Japan to the
other Far Eastern countries would be a serious stumbling block on
the atenda of this session of CAF,.. Active consideration of this
subject, however, Las preventuu by the protracted nebates over mem-
bersh4s to the Commission.
Alsoi4cia1ayan Affairs
The Chinese Chain:am of cverseas Chinese Affairs 'Commission on
? 5 toccthber e).isecced concern over the net draft constitution of the .
lialayan Union. The Chinese claim the constitution is discri rinatory
to the Chinese in 1a3aya.
:IC11.712:1 DIVISIUN
Japan--1 ?Utica ?
Katayaba Cabinet Critic Gives liJttus to Conneflative 'vend in
Diet. -.Tangling within the Social-Democratic larty over a cuccessor
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to Agriculture ihinister Hirano who was cismissed curly in November .
by Premier Katayana combined with a breakdown in Democratic /arty
discipline over the passage of the State Coal Control Hill has brought
into clearer focus a conservatiice trend in the hict.
Although the recent rift between the 1:ational Farmers' Union
end the Japan Farmers' Unions right and left wing elements respectively
of the Social?Lemecratic }arty, over Hiranots successor has been terr
porarilylatehee up, the basic conservative outlook of the Unutional
1;armerst Union anu its dissatisfaction -with the party still rou-in.
Shoulu futur?.diskrooments -rise the organisation might entertain
an invitation to join a conservative coalition. The conservative-
ninded.keoples Cooperative lurty, one of the gov)Lrnment coalition
parties, also took a strong stand on the subject of Hirano's successor
.ano colic possibly be induced to join a. new conservative party;
After the Democratic ferty, another of the present coalition
parties in the caeinct, had reached a decision to supiort the State
Coal Control tall, a right ,wing faction refus,d to uphold the ;arty
position. Under the leadership of ..e.ron Shideharl, the dissident
mothers have formed a now Licit group, the iroshi 'Kai. The possibility
now exists that the Doshi Kai may .join with the Litmral Iarty, the
most conservative party which is encouraging other anti-Socialist
.forces in the Diet to form a conservative bloc culled the National
Salvation /arty. Such a coalition could conceivably oust the Katayara
Cabinet through a vote of "no-confidence". This trend, however, does
not necessarily presage an imediate chane in the Cabinet. Liberal
Fartriresident Yoshida, the probable successor to Anttly)ra, shows
L reluctance to assume responsibility for Japan's present economic
problems.
Japans?Leonora?
Reparations. The USSR has rejected the US proposal ,mfore the
1E0, which was designed to break the deadlock on division of Japanese
industribl facilities as reparations. A stalemate had arisen over the
inability of the reparations sub-committee to agree on u schedule of
percenta)es for the eleven countries concerned. Thereupon, the US
proposed a schedule which would give each country a somewhat smaller
percentage than it had hitherto agreed to accept.. For its pert,
the .US would receive 28 percent, tut of this, 18 percent would be
'held as a "kittym for subsceuent oistribution to the ether ten nations.
on any basis mutually agreeable. Ath the U36:t rejection, the 11$
is strivint. to secure epproina cf the other ;TEC countries.
The refusal b;.. the Urta to aco_pt the Wiest US ipposl is
probably another .)oviet tactic to delay settlement of the relarations
irobiem, .7. Ley factor in the slowness of apbnese economic revival.
To the U$SU, delay in that revival means, among other things, contin-
;;27Citer
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uution of drain on US occupation funds; development of bitterness on
the purt of the Japanese against the US occnintion authorities; and
e:aintenance of uncertain econmic conuitions uhich 1fierve us a ftrtile
ii Id for Jalantse coatunist,rolds..
EconothiC dwell:O.:Amt. Tao tills havt ben 1:sss.e L, the Lie;
which are of major ikaorte.nce to tau Japanese econonly. lassege of
the ?tate Cek-1 Control hill re;:rosonts the ..atayara Oovernmtnt's
only success in the current session in puttinc through important
loslation which is dusigneu to revive tne trhapint; industrial
structure.. ihe coal 'shortage is one of the chief causes for the
failure of .Japanese industrialists to Lttein a lev?i hip;aer than 45
porctnt of file 1930-34 level (the lerioo which the F.0 deers the
staneard to ut sought for staele econory). jtate control of the coal
industry pas felt by the .-.atty:zza Covernaunt to be the answer to
the complaints by the coal companies that they had neither sufficient
capital funds nor otheryesources to eNpund their ,roduction. Con-
siderable opiosition to the bill ratx the Covorrrent yield to amend-
ments which tent to preserve the ,osition of the rine otmers and -
operators.unuer marited state control.
Also passed was the economic decentralization Lill, which pro-
vides for cilitting Japanese comp-nice into srall units and eontAns
provisions width are intended Lc trey:zit control cy.any one cor.44.:ny
over more tik-n a minor portion of the Jaizmese economy. The bill
is a rajor stoi in SCh} t6 1ro4Tam to abolish the aaibatsu and to
ensure the deniial of opportunity for revival of :giant combines whose
policies might load to future aggression.
Foreign Trade. Negotiations between SCIJ and a banking croup
for financing of Japanese imports and ex4erts VIUNAJOILL revolving fund
aro still in rogress. Under this i.lins SCA! would 1.1cdT,c 8137,000,000
in Japanese gold and jewels as security for a:self-lighiduting loan.
Most of the groundhork for the loan has oaen completed, but certain
ltmal olcstions remain to be resolved.
Korea
The recent currency conversion in North Korea serves as further
confir:34tion of the existence of a Seviet plan to estuelish there an
indopencent overnment, as a legal obstacle to iralaccent4tion of the
UCGA resolution on Korea. In adoition this ttop will render more un-
stable the presont critical econonic.situafion in 3outh Korea.
fletAnning 4 Decumeer and continuing fur a period of about five
days Soviet occupation currency and Japanese-issued kank of Chosen
notes were exch,..nged for now currency issuad by the North Korean
SLCRET
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swan
}sepia's Council. Individual persons wore permitted to exchange 200
won, art; heads of families 500 won, at the rate of one for one. All
excess currency had to be deposited in state banks where it will be
frosen for aeout tit? months. The announcement of the conversion .
precipitated a buying panic which was halted only by restriction of
trading to state-owned stores and by the reduction of frices at these
stores to about enc-tenth previous levels.
The North Lorean kcoplets Council has recently directed the Graft-
ing of a "Korean" constitution and the proration of a legal code.
Alen these measures are consideved along with the currency conversion,
it becomes aciarent that the US611 is proceeding with a clan of es-
tablishing a legal basis for recognition of the :orth Korean puppet
regime as the indelendent government of Korea. This would clear the
my for Soviet troop withdratm.l. The new currency was issue:a by the
h.:epic's Council of North Korea, not by the peculation authorities,
and the conve:eion Leasure was hailee by itadio iyongyang as a move .of
"great political significance in accelerating thc formation of a
United Korean Government". It is not clear whether the preliwinary
pLnie was part of the Soviet plan, but the subsequent reduction of
prices was designed to have a deflationary and stabilizing effect on
the Horth lwroan economic situation, to convince the leople that con-
version was a praiseworthy neasure and to instil confluence in the new
currency issue.
The uncertain conditions of. release (no rate of exchange for the
frozen deposits has yet been announced) till induce many North Koreans
to hoard sank of Chosen currency for illicit parchascs in South
Kcrea where it is still negotiable. This will result in a great in-
flux of currency into South Korea which will accelerate the inflation-
ary siiral and encourage speculation. Bank of Chosen notes turned
over to the ;:orth Korean govermtent for exchange can be used :ts funds
to finance agents of Soviet iolicy in South Korea. There are no
mediately effective measures which ,merican occupation authorities can
adopt to halt this currency influx.
According to cress reports the exchange rate will be announced
by the North A:orean regime en 4 kebruary. The kcocless Council is to
meet at that tie:e and the new "Korean" constitution till oe presented
for its apiroval. Hence it is reasonaole to conclude Vest the soviets
have schuouleo the comclution of their proc;:ratory work in North Korea
for the beginning of February. Aecognition of the "legal" and "inde-
pendent" goverment of Korea and the withdrawal of :5oviet troocs, if
decioed upon by the Kremlin, will irobably take lace at that time.
8:WALT
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SECRET
CHINA DIVISION
Lilitary
Communist general Chen Yi has moved edditional units southward
over the 1440-Lai rail line and, according to press reports, has launched
an attack on (saifeng, strategically important Nationalist rail point.
Lesnwhile, :iu 1-o-chen,i; has moved westward across the king-han rail-
road as Fationalist pressure on his aapiehshan bases Continues. In
Shantung, terrorist activity by the Communists is said to be driving'
additional re:Mutes into Nationalist-hela cities. ate number has
reached 220,t00 in and around Tsingtao where the refugeeu seriously
encumber the city's administration. The Nationaliats finally opened
to traffic the Tainan-} thou sector of the lairrepu rail line on 11
December.
Internal
The Chinese Rational Government has not yet announced the results
of the election conducted on 21-23 ;Advember to choone members of the
iintional Assembly, the body which, with itn election of thc ireeident
of the Republic, will put into effect thinals new constitution. The
difficulty of determining the exttst of minority reprenent%tion, and
the proolem of :aintaining the fiction that the new Goverment will
have been popularly electee, are factors which ere probably causal to
the present inextion. In view of this belay, the Goverment will
probablyipostpone the convocation of the Gational AseembIy until late
February or early :darch, one will promulgate a jrovisional statutory
law that will od effetive during the intdlida period between the ex,-
peration of the validity of Lae Omit constitution of the latoMintang
and the tine of the convening of' the .:ational Assembly.
The anti-US propajinda of the Chinese Conmunists?begun in 1944
upon US Ambasseeor Jurley's departure from China?has continued for
three years, growing steedily more violent in tobor. "Imperialist
butchery" and "aggressive invaaion of the secrete soil of thina....in
league with the slavish traitor, Chiang Kai-shek", are sample:, of
recent Gormannist invective oirectee aLainst the US. This week, both
US Ibfbasnesor Statart and an experienced newspaper man have noted that
thin Communist propaganda is having a rArkec effect on Chinese public
opinion, especially among Chineze University ano intellectuatuoups.
Sturat expresace tne opinion that the Uniteb btates Information der-
vice in China should mbar.: on a positive j.rotra to damonstr,te that
the U55h is the real imperialist power in the Far Last.
33 CI
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3LCst' 4T
is:term' 2elations
Unconfirmed reports from China, uttee Lctoner 1947, inuicutc
Soviet-lolish coopo.ttion um plans in Glum.. 'the Scitiot iu r.n.orted
to bu backing ioliah retistn.tion and repatriation, vhile ioliuh offici-
als are to carry on the work of some Soviet officials in event of a
dipla.aLic break between the WSP. and .chinc.
The Chinese Foreign din= ' retested on 9 !december to the 'Sritish
alleascy over the eviction of Chinese residents of ..owloon, claiming
administrative jurisdiction. The siltish ,flbassactor, in a :Leuters,
interview, ts4lained the eviction ey saying it -tr4s ;.urely acnini-
o-rative and a-ce in the' interests of acalth anu cn:fety.
bconomics
The black mur.cet US dollar eaca_nge experienced tild fluctuations
for the thin. consecutive week. The rcte soared from uNC 133,000 at
the beglmtirs, ?flit:a weak to 160,000, then dropped to 142,000 on 10
Deccan Ca=ocity Irises sosreu pro" ortionaLoly ?us; ite tat: govcrn-
feent's erferta to auld ,riceu dcv.n. This uiheavel wis ,rimarily
caused .;,y the Issuance of neu lar_e cenomination notes of lluteD,
ano 5,060 tustelis Gold UnibJ, e ,uivalent to CC 20,000, /4,000 and
100,00u ref ()Ace released in 3hunghei 10 Lecembe... The previous
ltrgeLt note .as aNC 1U,SOU. General slack market transactions cused
(claming I russure .on. economic 1 olice .nu lls; enforcement agents to
crac:c dewn on, unuer-cever u..a lingo. The:.e nt note. iSSIKS* iAll boost
the total curruncy in circulation to wnother recore height. Total
issue v4...s CNC 260061 billion up. to 5 beceaLer, corik.r.c tith 32726
:billion in circulatien on 1 January 1947.. et this rate the aetu in-
crease for the month of mccember is ey+ecteu tc ae near the 1.6venbur
leroenta.l. of .increese, thich was 28 lereent over the previous =nth.
industry
It is re, ortec that tne gond...cut 1 1.ns to furnish all
cotton to dor.ostic :ails, take tne finishee am cloth, and give
the rill operators a r.esonasle profit. Lotten, which is one of the
favorite COLuiCatiCS, is an yAtre-Cly seerce item in
Sluam:hti. Tilia toad be another Ltep by the governLent to uni>ge in
priln.te inausury. Jecause of the cir.ic rob; acts in setinoUs rseuvery
incustrialists rc re' ortte ienvinL: nangit i to v; en ; in
_or*: aong. ae cuneitions norsun it IS CDif tiVA, ineestry
will leave ofcdk,,ItA.
lincrals
A tungsten ore 'recessing , lant, preeucirt; 50 -eons (concentration:
65 ercenti montsly, is rcl orted located in hong Acotiotions
aro unuer eibcia:sion'ty a US fir: to purchase tits or tire out; ut. The
unart has ac,uired for some time past virtually the total output.
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,
arAta
External aelations
Unconfiraus reports from China, datec tctower 1947, inuicate
Soviet-lolish coope.ation WIG plans in'Uhim. The 6uviet. is r:+orted
to be backinG solish redistration and repatriutions while iolish offici-
als are to carry on the work of !Jame 6ov1et ufficials in event of a
diploaatic break between the MSR and Chine.
The Chinese Foreign uffidc IroLectoe on 9 Lecember to the Eritish
:4Soas,j over the eviction of Chinese reci(2ente of .Ariloon, claiming '
adrinistrativt jurisoiction. The Eritish .ebasscoor, in w *niters
interview, te4loinad the eviction by stying it was purely acrini-
strutive ono L..Uu in the interests of health anu
ceonomics
The black mutt:cot US dollar exchtrcie experienced wild fluctuations
for the thirt ecnsecutive week. The rte soared from cNC 133,000 at.
the bccinnin.5 ufthe week to 160,000, then dropped to 142,000 on 10
Doceneor. Cflocity.,rices sw.reo. Frolortionately dosiite the govern-
ment's efforts to mold irices,dewn. This uphc-val irimarily
caused .4 the issuance of new sar_o oenominatien notes of 1,U00, 2,006,
snc 5,000 CueLeas Gold UjtLb, eluiv,lent to CC 20,0W, 43000u and
100,000 rciorteu released in :A-lunch-1 10 Lecembei.. itc ixevious
1.xccot note ??ri 1U1000. General ?lack rarketitransactions,easod
foilowing.pressure on econonde olice anu law onforcement aLento to
cracl< dewn on under-cover a-taint:Q. Thsbe new note issues will boost
the total currency in circulation to another recort heiL;ht. Total
issue wt.:3 Cit 2E,061 billion up to 5 beceeler; compar?o with 3,726
billion in circulation on 1 January 1947. Lt, this r-tc the note in-.
croo3e for the month of ;Jocomber-is expecteo 'Le be near the !:ovembur
perctutalse or incrteee, thich wi?s 26 lereent over the previous month.
Inclustr-
It is reiortec that tne'lational govtrit.cat 1141e. to furnish all
cotton to doestic millsi take tae finished ern ane cloth, and give
the mill operators a r.asonaele profit. uotton, which is one or the
.fuvorite specal...tive toz.t.ceitiee, is .an oat-m.61y seuret item In
tould be another stcp Cy the goveru.ent to oairge in
indurtry. _soca:Ise of the cr.rk ;rot acts in uutdness recovery.
somo incustrialitte are rtiorteu :..hanh,i to ?l en ill's. in
,s euntitions wo??en it is expueaeu that .sre, inoustry
will leave oted014.
'ainerals
A tungsten ore ;recessing 11..nt, procuein,: 50 tone (concentration
65 percent) ItorrenIy, is reported located in )ionE, 1,ong. ?oc.otiations
arc under eiacet:sion Cy a US firm to purchase vie uctire ootiut. The
USSR pus ac,uired for some time past virtually the total output.
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31.CaLT
Transportation ?
Train service betceen Tsinan land iukou was re; ortcd resumed on.
11 December. The Ludken-1 aping line is open Lt }resent, but. the trip
requires tour deys. eess than 40 percent of China's railways are now
'?opian to traffic.:
D1VI6ION
Australia
tolitic..1 Follot:ing larliamentiry passage of the bill .to nation?
alize tALc .ustralian banking system, the Covormients of South Australia
and Victoria joined the-private uanksain appealing, to the High Court
for an injunction restraining. the Govorniient free:: talking over the
bs.nics until hez.rings on the Constitutionalit; of the :.,e-sure could be
held.
The trime kinister is see.;inj an atai.:nd..ent to the Constitutien
to erovitac tor per:nent Goverment control over routs Lne prices.
11 referendum, required for such an :-Lie311(..;..taits 18 scaeuuled for Lay 1948.
The labor Governmtint in Tasirania recr:ivcci c. severe setback when
ire;ter uokTove tvas indictee en chaso.s of corruption. IS the Op?
position forces an election, as it ray well do, it is unlikeis tha.t
'Labor vaould De returnee to office. ? . ? '
tiaconomic. All dollar r.j.ort licenges va..ra oincelled in line c-ith
the ?le currency censer-A..1ton program. 4XCLI1 tiens to the
order 4ere those covering fr,:oocis (a) shipped before za. ubtober; (b)
uncter irregoca.ale letter of credit; and (c) listed Ls having
.hii;h priority, such at nil parts tor. ineustriLl m.rehineery.
Adaitional cuts in ix:ports of auto chassis, tobacco, newsprint,
gasoline, anti 'film remittances ...:cre announced.
. Australia's dollar positi,on has been corsenee .by the spread of the
Tally Clerks strike, which has belu wcel experts thus cutting off
? temi.orarily. - uc fall ortAnt source of dollars.
Burma ?
- 1-ossible }yo?Socialist Guilt. District leaders of the Peol.les0
Voluntary Organi4ation, (PVC), a semimilitary'groui originally inspired'
by Ming San anc one of the two Arinciol elements of the Anti?Fascist
League (AFL), are 'meeting in aangoon to consider the ratification of
the merger between the :NO and the Socialist larty,, the other important.
.faction of the AFL.. Thin docialist?propoted me:.:gor was'to become the
Ler.gue, designed to replace the All. as the utdinbnt political
SECE22
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SaeST
organii.e.tion, in 3urma, laxly rorts indio tee thbL the merger tould
be rcj..cteu socialists roi...cv.c: from the governaert, however, the
Socialists later appeared to bo regaining some Lyounci :when it was re- ,
ported that the I.:arlist Lec4;ue was still under consideration, and that
Vie present caoinet would contirlue in office until about.,14.'..ianury 19/480
(liurmese inc.ependence day; at which Line i VU nominees Iviad repLIce
some of the socialists.
twig Stalls ueatn ieraoinlity clashes have developed within
the Are. over the c...uccitiLn of iez?uersiiiii. k.yaw Hyain, the amoitious
Socialist Home I.linister, in particuler,? has Len untirinA; in his efforts
'to dissolve, or at least reauce the effectiveness of the :VC. It
therefore appears that this meeting; 13 a.i.VC waneuver not only to con-
solioate their own organization, but to ,:ain olltictJ. ciontino.ncc: in
/sun, ok the e CL13C of the Socialist. Since the I VC iv. s a virtual
loonol.oly" of the t.FI, military strength their ...ill undoubtedly
prevail s.ne if the present ;ituation 1.recipit_tes a showoown with the
Socialists, there exist three A ossiuilities. First, littla or no
cnarces will ec :"14.C.It: in the present terKing ajereement ectlIeen the two
groul.O. .ieconc.., in Oreer. for the eocialists to rcriv.ain in the govern-
eat they 1...ay In.ve to accept a suboreinate rule, kossibly to the ex-
tent of losing tneir oitical it...ntity as socialists, in a new oroi-
nlization.. Thire, the oocialists exiclleu bythe f-VO whereupon
they r..ay :attempt to join forces with the Surr.z. Communist 1-arty, the
less doctrinaire of 3ur.-.E. s two ccs.-munist a.rtics, tr el crate inde-
pendently in-elposition to a IVU centroLled ,-;overn...ent. If, in case of
such e split, the IVO failed to r.L.Intain its solidarity and a firm
'grip on the governaent, it ib possibls . that tde Burt:eerie i.oliticol scene
t: Ice on the familiar pattern Of numerous elitical z..rtics which
evolve 1-ore asout orsonalities than policids. LS these three possi-
'hi-titles, the secone appe:..rs the .iort; e. a comrromisc be-
tween the 'IL and Socialists the Socialibts will rt.thin a
certain amount of influence in tilt. ent.
Siam
besi.ite that the military 11.1/4s ocen coni;le-tely 3014re-tea
from the ::ionsLise- dro-visional bcv...rn? tem, in tic:ecru-nee .n.ith US and
11: intimations 01 Lisplcasuro hL :_iiitary control, the sii.mose Army
continui-b to ;Ian. on the ?Cubrunist-2e; ublican menace" against which .,
the:fel-1m to :n..ve ,....cteu, in -tart, to esti...al:ill the i..rebent govorni.ont.. ?
This is the gencscal linc of tha pres..urc cart:Agri Lo In US rcoonnition;
and the fact t U t.:e i.: on this joint iiieicatc, the
rvatun.: of the A..recent rSiitry authoritz/, whether it is
nwittka?awn from politica or ot?. 31.4tater:Ls by leauers of tit(' regime
cicarly inaicate Line insti;ators iiiaaers of the :?ovesitier
ccut otzt believe that this new orit ntee te the ht. am
including ;..-.en .zno-.7:1 for their anti-co.unist at: rid, will succc.co in
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41-01;t4e7sse".
winninc, sui.j.ort anu rLcogeition from the US. This belief was and still
at 1xse6 kriearily wren US efforts to counter comunism in Miro, e and
China, as Is' licantea b; the Truman Doctrine ans.the Larshall Flan.
The soul. t.youp, uolievine, that Siaa can off?r i. zrreat seal as an
4ntiecomsuniaL center in Asia is atLekiting ,to create the. infression .
that they his. acted If ih accoruanca with American ideals", and to this
ono hc.vA: c.:arcee Nei Friril 4ider Statethwan skonser of the ex?sOvern?
ment, ans the Free Thais' with beirc a cornetist threast to Siam. Col?
laboration with the Chinese Caxounists in jiam.and the Vietnam is
also attributes to the Free Thais. These i_lt..ments have risinteriretcd
ana wisely publitisee as 4 "little Yarsliall Flan" a ster:etion by
the US delegate, LGAY:._, that each. Asiatic country raoecatirc aid should
exLmine its economy to determine its tell?hell cal:abilities.
It is believed that the i resbnt reLime will continuo to miuinteriret
US policy in regard to jiam anu that they will become increasincly
dis?
cutisiied with the US Fosition a& they feel that they are inannting
it in Asia
4
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Declassified in Part - Sanitized Copy Approved for Release 2013/03/12 : CIA-RDP78-01617A004600010004-6
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Declassified in Part-Sanitized Copy Approved for Release 2013/03/12 :CIA-RDP78-01617A004600010004-6
ow('
,:-T,?010.1.1""r"
wiririin sucdrt LflL recomition Lilo US. This belief 4.t.rxi still
Ic bessu Lii,on US efforts to counter colar.unial:.: in ...:uroie and
China, 4:4.s 1:4 1i icnt.t b; the TruiLun Doctrine ane. the klan.
The coul. :A.4.Liovine; thz.7.t cnoffer e, as an
center in is tinj to create thc.i.i russion
tiley hem, ..eteu in accorui-nc,, 1:ith anc to this
kJ. friril kicr6ti...teEkn onsor ?1 tile ex-L;overn-
zento all:, the Free Th;=is vdth cor.lunist thre...t to Siam. Col-
.14bor..tien wita the Ghinese ido.7.4iatniet3 in the 1ictim-2 is
elso attributes. to t:io Free r.-.isinterireted
ano 171itt1el;Lrsiv..11 ilan" suzLe.tien by
the US d61t, Low.:', th.t eech. .s.1.4,.4.tic country ru,-.2:tinc e.ic should
ex.k.,:,.ainsit cconoLc- to oetermine its ...elf -hell ci.qabilities.
it is believec. ti. t roserzt will continue to .r....1:3interiret
US 1..olicy in re&.rcdi to SiaL, Lnu tttiLeyi1i eco:le increacanly dis-
satisfied with the US osition et.s they feel that thoy are Lir.tiri.
it in
Declassified in Part-Sanitized Copy Approved for Release 2013/03/12 :CIA-RDP78-01617A004600010004-6 amig