MEMORANDUM FOR: MR. DULLES FROM JSE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R000300180001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 14, 2016
• Document Release Date: May 21, 2003
• Sequence Number: 1
• Publication Date: December 2, 1959
• Content Type: MF

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STAT
ILLEGIB
MEMORANDUM FOR: Mr. Dulles
Attached a e (1) Ed Lansdale's impressions
of (Tab A , (2) Ed Lansdale's
memo covering a new pposa1 for OB activity
T
when he sees you at te ternoon (Tab B),
(3) FE Division's co s ereon (Tab C),
and (4) FE's memo on atus of Proposed
Expansion of Operatiotherhood (Tab D).
- ' Ct
--Motto by
2-December 1959
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OFFICE OF THE SECRETARY OF DEFl1SE
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Executive Registzy
OFFICE OF THE SECRETARY OF DEFENSE
WASHINGTON 25. D. C.
27 November 1959
MEMORANDUM
Colonel E. G. Lansdale, OSO/ OSD
SUBJECT: Pakse-Kontum Road
rivi 40Y -/"/I/ ST
One of the fundamental needs in Southeast Asia is to provide Laos
with the means for ground movement, as a basis for sound political-economic
stability. A long-desired action, to help accomplish this, 'would be to
complete an all-weather road between Pakse in southern Laos and Kontum
in Vietnam. The U. S., Lao and Vietnamese officials who have desired
this Pakse-Kontum road have been motivated by the following:
a. Such a. road would open Laos to a port on the China,Sea, Qui Nhon,
since Kontum is .linked with roads to the Vietnamese coast and Pakse is
linked to the Mekong River waterway in Laos.
b. Such a road would traverse the Bolovens Plateau, which is so
located that it is of strategic significance in the Free World defense of the
Indo-Chinese peninsula; the road would make overland military .movement
feasible, in case of contingency need.
c. Such a road would permit social and economic development of a
region which is sparsely settled, which is currently vulnerable to Communist
activities, and which preliminary surveys have indicated is one of the most
promising areas of Laos in natural resources.
Fresh Viewpoint
As indicated above, the construction of a road from Pakse through
Attopeu to Kontum has been under consideration for some time. Now, a
Filipino who has proven his belief in Free World principles by his life of
actively upholding them has presented a refreshingly fundamental approach
to the problem of building such a road. He offers a way by which we can
more rapidly reach true U. S. objectives of developing the area for the
security, political well-being, and economic betterment of Laos -- rather
than merely building a road which would facilitate short-term commercial
exploitation of the indigenous population, of a type to increase vulnerability
to communist activity.
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The Filipino is Oscar Arellano, head of Operation Brotherhood
which operates Filipino medical teams in Laos, including teams on the
Bolovens Plateau at Paksong and Attopeu. The operation uses. a medical
approach to accomplish socio-economic actions of a "grass-roots" level
in trouble areas. Mr. Arellano has been the leader of Operation Brother-
hood (OB) since its beginning in Vietnam, when he was Vice President,
for Asia, of the International Junior Chamber of Commerce (who initiated
the "OB" project).
On 20 November, he met with a group of Mutual Security planners
in the Office of Special Operations, OSD, where his ideas on the Pakse-
Kontum road were discussed informally.
Concept.
The concept is as follows:
a. Survey. Make an aerial survey of the region to locate the
most promising areas for mineral and agrarian development. Plan the
route of the road to run as close as possible to these areas, to diminish
the requirement for feeder roads.
b. Labor. Expand the present "OB" projects in the Bolovens
Plateau into new projects adjacent to the planned route. These are
essentially agrarian-community development projects; the Paksong pro-
ject is currently improving health among the Kha tribesmen by improving
the diet, teaching farming and the preserving of food (it is now producing
bacon, ham, etc.). The introduction of mechanized equipment would per-
mit the Filipinos with "OB" to not only increase acreage of farm products,
but to teach the local Lao how to operate and maintain 'equipment. Past
success of "OB" training of Lao indicates that a labor pool could be
readied from among present inhabitants of the Bolovens Plateau, who now
live in primitive status.
Contractor.
Rather than limiting the project to a road-building enterprise under
ordinary contractual arrangements, this could be made into a pilot project
of a new type of U. S. -sponsored area development. The thought is to get
some well-motivated American construction engineers together with well-
motivated Filipino construction engineers and form a company willing to do
many extra things for the Laos. One important "extra" would be in turning
over a share of the profits to either ".OB" or a Lao government entity to be
used in developing new communities in the region and in education of the
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villagers. Empathy for the Lao on the part of the Americans, instead of
looking down their noses at "natives" and "gooks", would be a priceless
contribution towards winning over the local residents to the political pre-
cepts of the Free World and to support of their national government. This
would be a strong way to demonstrate both our belief in free enterprise
and our brotherhood with the free men of Asia.
In support of the road construction, an idea could be borrowed from
the highly successful Construction Corps, known as CONCOR, which U. S.
Army Engineers organized for reconstruction work in the Philippines after
World War II. The idea is to establish a commissary at each work camp
along the road, where workers could buy food and simple luxuries, such
as cigarettes for themselves and their families, at low prices. These
commissaries could provide a ready market for foodstuffs produced by the
"OB" - sponsored farm communities, induce proper diets, stimulate local
agrarian and handicraft development, and act as a brake on short-term
commercial exploitation by selfish Asian entrepreneurs whose presence
on other projects have given shady meaning to the concept of free enterprise.
After completion of road construction, these commissaries could be turned
over to the villages as public buildings.
A political action program should be undertaken concurrently, team-
ing the Laos "civil action"and "OB" programs -- to reach local leaders and
through them the people. Instead of temporary labor camps, new communities
of homes could be developed using local materials, with skills taught by
"OB"'s quick methods. These would be agrarian communities., with their
populations learning to work together for the national good, and given an
economic start by supplying labor and farm produce to the road project.
The political program, which is a fundamental one, would result in self-
protection, better community administration, a sense of belonging to a
nation, and closer cooperation with the Armed Forces of Laos.
Summary.
a. The consolidated program envisaged would be designed to reach
security, social, political, and economic objectives. desired by the United
States -- in a region currently endangered by Communist activities -- and
in a manner to make the U. S. aid dollar stretch much further in helping
the local people.
b. Road construction would be undertaken by a joint U. S. -Philippines
corporation, selected for technical competency and for unselfish motivation;
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there are many Americans and Filipinos willing to do their bit for man's
freedom; witness the Eastern Construction Company now in Laos.
c. Social-economic development would be undertaken through the
non-profit Operation Brotherhood on a sub-contract basis, since "OB" can-
not contract directly with a government. In this development, "OB" would
cooperate closely with the Laos g-overnment.
Recommendation.
It is recommended that this consolidated program be -considered for
the Pakse-Kontum Road Project, as a priority matter, and as a pilot project
with potential use elsewhere in Laos as well as in other countries receiving
U. S. aid.
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OFFICE OF THE SECRETARY OF DEFENSE
WASHINGTON 25. D. C.
19 November 1959
MEMORANDUM FOR ALLEN DULLES
From: Colonel Lansdale, OSO/OSD Id
Subject: CRITICOMM
After a prolonged and most complex examination of the
Defense portion of the CRITICOMM problem, it looks as though we
have come up with answers we can handle with some assurance of
meeting the Presidentts deadline for these communications. I hope
to have our part of the joint CIA-Defense reply to the NSC letter of
24 September completed and signed by the Secretary the middle of
next week. I understand that your staff has worked intimately with
OSO in drafting this reply, to facilitate your signing this joint
letter.
Admiral Dorsey, Deputy Director J-6, Joint Staff, gave
a fine presentation to the Hull Board this afternoon on the technical
progress Defense is making. My feeling is that you might like to
have much this same half-hour briefing given to USIB, perhaps with
Tidwell's CRITICOMM Committee briefing. This J-6 presentation
could be arranged informally though me. Next week's USIB agenda
is heavy. Perhaps you might like to do this for the 1 December
meeting.
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MEMORANDUM FOR: The Record
The attached correspondence was recalled
at the request of Colonel Edward Lansdale in the
Office of the Secretary of Defense in view of the
approval of DCID's 5/1 and 5/2--which action
took place shortly after the receipt of this
memorandum in OSD.
(An
January 60
(DATE)
FORM 101 WHICH REPLACES FORM 10-101
BE USED.
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MEMORANDUM FOR: Mr, Dulles
You will recall that you asked Dick Helms to
get back from the Office of the Secretary of Defense
the memo sent to him on 13 November concerning
the implementation of NSCID No. 5. Mr. Helms
has obtained the two copies from the Secretary of
Defense which are attached. Also attached is a
list reflecting that all other copies which were sent
out of the Agency have now been returned except
for the Army's copies which will be returned next
week when their staff man comes back from leave.
Did you wish to destroy all copies of this memo or
would you prefer to destroy all except the original
and file it with a note reflecting that it has been
recalled in view of the issuance of DCID's 5/1 and
Ye ,p%VLd b TOL, d FMC (31 December 59)
BEM US10-101
IO AUGH 54 Ivl WHICH RELACES
ED.
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30 Dec 1959
Distribution and Return of QSI 3-D-61.3/3. 16 Nov 1959
re D CID* 5/1 and S/2
Agency
State
Defense
Copies received
Copies returned
Date
24 Dec 1959
Z8 Dec 1959
Army
Navy
Air-Force
NSA
Joint Staff
AEC
FBI
(Will be returned ne
week. Staff man is
on leave)
1
(Second copy being
returned tomorrow)
21 Dec 1959
9?Dec 1959
21 Dec 195.9
21 Dec 1 959
28 Dec 1959
22 Dec 1959
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 CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
INITIALS
The DCI read. the attached memo from
Ed Lansdale and suggested that I pass it on
to you for scheduling, if it seems feasible.
Will you please take care of the necessary
coordination on this? To the bes or
knowledge it has not been seen by
others who might be concerned.
STAT
FORM N0.?~ Replaces Form 30-4
1 APR 55 J which may be used.
11/23/59
 ^''~R w.~L~. GMECK CLASSIFICATION TOP AND BOTTOM
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%-LASSIFIED CONFIDENTIAL SECRET
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
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TRANSMITTAL SLIP
DATE
30 December 1959
Attached is a status report on
external distribution of USIB -D-61, 3/5
I will leave "a'* note' to ask
to keep you advised of any further
changes as they occur.
11jUIL1uG
drrino
I FFEB ORM 55 241 REPLACES FORM 36-8
WHICH MAY BE USED.
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