POSITION OF OVERSEAS CHINESE IN SOUTHEAST ASIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01043R000900050015-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 73
• Document Creation Date: December 22, 2016
• Document Release Date: September 14, 2010
• Sequence Number: 15
• Publication Date: April 25, 1957
• Content Type: REPORT

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50X1 -HUM
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Intelligence Report
POSITION OF O F$2EAS C:f'JESE I1 SCUTh AST ASIA
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COIIFIDEI'T1L
NOTE
The xeadcr is asked to note that
this report analyzes r~iaterial only
through February 10, 1957. SLhsequent
developments have nateriaiy altered
the picture in Cat~ibodia (wjth respect
to C omrnnist penetration and to official
concern about the problem of subversion)
and in Vietnam (tth respect to the
~overrrnent program of forced nationaliza?.
tion o: Chinese).
CONFIfl jTIAL
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 o. P~ttitude toward Nationalist Governrrient ? ? o ? ...... ?. ?
Thailand c?..??.o???....?????.?a?no?.??.??????a??.???,?.,e.o?.
A~ Popular htti tude to ?ard Chinese ,.inority .? ? ? ? y ..?.. ? a ? ?
1. Overseas Chinese Economic and olitical Influence ..?.
2? -~'oclal Position ?ae??..???.?,?.~,?e???.moa...?.?.???a,
B. Governmental attitude tovrard Chinese Minority ?,????????
1
r. A
t1tuc?e toward Communist China .o....,
CONFIDENTIAL
This report is based on information available through February 10, 1957.
TABLE OF C OIL! TENTS
ract ...........................,~.....?....? ...................
I ntr o duc t i on .. ? . ? . ? ? ? ? ? ? . ? .. ? ? ? ? . ? .. ? ? ? ? . ? . ? ? ? ? . ? ? ? . ? ? . .. ? ? ?
Indonesia ..o ............................................o. 5
A. Fopular attitude toward Chinese Iinority ~........,? ???, 5
1. Overseas Chinese Economic and Political InfluencF ..?? 5
.0 ? ? ? ? ? ? ? ? ? C ? ? 'D... Q.
9e Governmental Control of Chinese Education ...a..??,??,
D~ Political Orientation of Overseas Chinese
1. Attitude to'ard Government ???????oe?????.???.????o???
r
t
7
9l~en neglstration Requirements o......,,,a~?,???.?a
8. residence and Travel Restrictions
2s 1.Inmi.gratlon Controls ?..?..??...?e??..??.?.o.cc,.t??..?
3. Citizenship ; equirelient for Ethnic Chinese ,
4. Restrictions on.Crorerty ightS e.??eo.......????~le.e
5? Economic ~.ole ???.???.??.?+??..???..?.e..a.....?e?~??e
6g Taxation ...?e.a?.e.?..o,??~...??.?.,?o.?no..????o???.
.
5. Polidies toward Chinese Education ......._..~.?.....
6? Subversion ?.????????????o~.?.???o?o???o?r??.??.??????
C. Legal Status ................?.........................?..
to Relevant Treaties ??.?.?,.
??.?.????e???o???
4, status of Chinese Organizations .
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29 Social 'ositIon a..??....o??o??????.???..o?
24 iarticipation in ; olitical ctivities ................
1. Ass:imi1ation Potential ?......e??e?,s:???.?.o.?...+
3. :joie in Civil Service, Police, and armed. Forces ?.....
?.
~,, aaa??0?,.0?
C ? Legal Status ????.????c?n.~..aoa??????????.. a ? a ? a
1. Relevant Sino-Thai Treaties ?.??,o,o,,,,,?^?,??
2. Irm lgration Controls ???..o.???..???..,a?.????e
3? Citizens~aiu Requirements for Ethnic Chinese
4. Restrictions on Property Rights .?e?. ???ve o?
~ T
? Economic hole ?c??.?:o??????!???o????.??.??.,??,
C CNFI DETIAL
B. Governmental Attitude toward Chinese Iinority
tatus of Ch Qj
.ineserganza-i onS ????o???w.?e??.a?.
Assimilati P ttil
?oncena ?????e??G.e?????e???..,??.???o?
2. Participation in Local Fol.itical Activities
3. Role in Civil Service. t olice, and armed Forces .
4 S
5. 1 of Lcies toward Chinese Education
a. a
6
6
7
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TABLE OF CONTENTS -- continued
Page
6? Taxation ??????????.???.o.???oe..??.e?..e???????.??? 23
7. Alien hegis trataon Eequirea.~ent8 . ? ? ? o o. ? o o m. o ?... o s . 23
8. Residence and Travel Restrictions .?.' .............. 24
9. Governmental Control of Chinese Education o...e?..r. 24
10. Subversion ?o?...?...o.????..?e?.?..u??????oo?o?..?? 24
D? Political Orien tation ?..?.??...??.????o...?.?.?.????.?. 25
1. Attitude toward Government ???.o.?..???a~?.oe???e.?? 26
2. Attitude toward Comriunist China e?r~r.o?oe..?.??a??c 26
3. Attitude toward Nationalist Government ....??....... 27
IV. Federation of Malaya ..?.?......?.?.?...???~o.?.?????...?.?. 29
A. Popular Attitude toward Chinese ]Y~inori ty . ?. ? ? ?? ? ? ?..... 29
1. Overseas Chinese Economic and Political Influence .? 30
. 2. Social and Cyittura~. Ir;es 4 ....... ? ............ 30
B. Governmental tti tulle toward Chinese : Minority ...???.??. 30
It Assimilation Foential ??.oe???..???..oc1??ooe.....?. 31
2. Participation in Local Political Activities ..a.....
3. Rcle in Civil Service, Police, and Arried Forces ....
4. Status of Chinese Organizations ..?...???..?..???.?.
5. Policies toward Chinese Education ..???.??.??..??.?.
6? Subversion .?.:?.?.??..??o?.??...??e?.o..e.?...?.e?.
C. Legal Status of Chinese Minorztyy ???..??.??ea??.??....?.
1. relevant Sino-i/lalayan Treaties .....??.o.....e?..??.
2. Immigration Controls ..??.??..?.o??.?.????o???o.???.
3. Catizen3hip Requirements for Ethnic Chinese .....?..
4. Restrictions on aroperty Rights .???..????.??.??????
5. Economic Role .?..?..????.???.??.??????.???????????.
6? Taxation ?.??????.? .??????o.~??oo???.???oA?.??????
7. Alien Registration Requirements o??.o.?.??.????.????
8. Residence and Travel restrictions ???..e..?.???.?..?
9. Governmental Control of Chinese Education ..........
D? Political Orientation .o?????o.?oo?.?..?..???o?.oe???..?
le Attitude toward the Goverment
2. Attitude toward China ?.?e?.oa..?.???.?.??o???e?????
31
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V. Singapore ?..????.o.????.v?o.?:-~.?o?.oo?oe?..o????.a?o?o..?. 39
A. Popular Attitude toward Chinese ?oo.?........??...?.??.? 39
B. Governmental Attitude toward Chinese i:inority ...,...... 39
1. Assimilation Potential ....?....:e.....?......?..... 39
2. Participation in Local Political activities .?..???. 39
3. Role in the Cavil Service, Police, and Armed Forces, 40
4. Status of Chinese Organizations ..e.?.....?....???.? 40
5. Policies toward Chinese Education ...,.??e.~.?...?.?. 40
6? Subversion .....??o..?oo?.?.?????o.?o.?.ao....?.?.e.
43
C ONFID'EI'TTIAL
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CONFIDENTIAL
TABLE OF CONTENTS -- continued
Page
C.
Legal Statip ?...Q...Q.?o.ou.oo?ee...?~....?..a.o.?.....
44
1. Governmental Control of Chinese Education
44
D?
Political Orientation v.??o.?o..?o..?~QOe?ooo??..?o.???.
45
1.
Attitude toward Government .?eAOe..va??e?..ov??o???.
45
2?
Attitude toward Communist China o??oe.e.?e?????.?.??
45
3.
Attitude toward Nationalist Government ..?..........
45
VI.
British Borneo ?.?a??a.e?..???????o?e??.?e?.??o?????.?.?????
47
A.
Popular Attitude toward the Chinese Minority :?.........
47
1.
Overseas Chinese economic and Political Influence ..
48
2?
Social and Cultural Differences .ou?.?????.?o??....?
48
B.
Governmental Attitude Toward Chinese Minority om??.?....
49
1.
Assimilation Potential ?..?..????.??A...,....??,?~?.
49
2.
Participation in Local olitical Activities .???.??.
49
3.
Role in Civil Service,'olice and Armed Forces .....
49
4.
Status of Chinese Gr anjzations ?s.???s.??.so??o?o??
50
5.
Polices toward Chinese Education ?o,........'3..?,
50
6?
Subversion 0.??.?.???o????s.e.o??.?.????o?e????ao???
52
C.
Legal Status of Chinese i.Iinority sooe?e?.e?..Q,.....?..?
52
1.
Relevant Treaties .o?....?p~??sooe,o?eo?????.??????
53
2.
Imrligration Contro s ?~o0v???o.??.??????e,??.??????0
53
3.
Citizenship Requirements for Ethnic Chinese ??......
53
4?
Restrictions on Property Rights ??.o?e..?e?A????????
53
5?
Economic Role ......?..?o.??....?aa.?aa.a.e......?..
54
6?
Taxation ??..?,o?,..???.....??o.??..?.....?o?...?...
54
7.
Alien Registration Requirements
54
8.
Residence and Travel Restrictions ?,????????,???
54
90
Governmental Control of Chinese Education ....?,`...
54
D. Political Orientation o.eo?.?e???.?a?.??..M?????????a.?? v4
1. Attitude toward the Goverimient ? ? ? ? ? ? . , ? ... ? . ? ? ? 54
2? Attitude toward China ..?n.?.,..??.??????....???.~?. 55
VII. Vietnam ..??????..?.?.??..?.a?oo?at,...o??....??........e.... 56
A. Popular Attitude toward Chinese 'finori ty . o. o ? ?.. ? . ? ? ? ? ? 56
1. Overseas Chinese economic and Political, Influence .? 56
2? Social 1Josltion ??..o..o.?.?on..????.?.?..e.???.?e?. 57
B. Governmental Attitude toward Chinese Linority ? ?..... ? ? ? ? 57
1. Assimilation Potential ..eoo?.?.??o?o???e+?ee.???.??? 58
2. Participation in Local Political Activities .?.??..? 58
3. Role in Civil Service, Police, and Armed Forces ?. o.a 59
4. Status of Chinese Organizations o.??,...?.,~...,.,,, 59
5. Policies toward Chinese Education o??.?..?~.,.?????. 60
6. Subversion .o...,...??,??..??..,?,...,...,.???e.??., 61
C. Legal Status ............?,..o..?.~....,...?..??...e.... 61
COI'TFIDENTIAL
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TALE OF CONTENTS -- continued
Page
1? Relevant Tr?ati es ?.e?????.?.?.?.??o.??.???.?????. 62
2. Immigration Controls ?.??...????..?o???.?.e?e.???. 62
3. Citizenship Requirements for :ethnic Chinese .??..? 62
4? ~T ~ Restrictions on Property Riy-htS 63
..????eo...oo?oo?e
5? Economic iLole .e......o.....?..........o...e.?.... 63
6Q Taxation ??.o....????.ea?op.?o.??,.0?7.0?.A.G,???? 63
7. Alien registration Requirements .o....do.?.~.o.... 64
8. Residence and Travel Restrictions ..??~o?....e?.? 64
9. Governmental Control of Chinese Education ? ? .. ? ... 64
D? Political Orientation ..?~...........~.~??.0e ? .,,??.. 64
1. Attitude toward Government o....o.?e?....?~.?....? 64
2. Attitude toward Corcrnunist China ...,,,.,,..?.....? 65
3? Attitude toward Nationalist Government ?.?..?....? 66
VIII. Cambodia ?. o?e?.e????..a??Y.??.oo?.??.040??.?oe?.?.??.p
68
A. Popular L.ttitude to1'?;ard Chinese lliinority Q,..??.?...,. 68
1. Overseas Chinese t~conomic and Political Influence ? 68
2e Social Position ?ee.p???0o0?..??0.?.?e~.?ea?.???.. 68
B. Governmental Attitude toward Chinese i'Tinority ???.?.?
le Assimilation Potential .,,...,..,,?,,.?" ,?? .?..a
2. Participation in Local Political iictiviti,es .oa.?.
3. Role in Civil Service, Police, and Armed Forces o.
4. Status of Chinese Organizations ?e???o??or??, , ???
5. Policies toward Chinese Education o.o.,,,?,?,..,.,
6e Subversion e?..oe??e???.??o???.???e.?.????o???o???
C. Legal Status o??.?.a.?oe???o????.?.??u.???.?.oeee?.?.?
1. Immigration C ontrols ?O??.????.???0.6o?o??Y?e?0...
2. Citizenship Requirements for Ethnic Chinese ......
3Q -?estrictions on property tights ..,,,,??.???,,,,.
4. e
Economic Role .?.?o?e?e.???.??o?????..?....???..?0
5? Taxation e.??.....??e???.?a??se????...????..??????
6. Alien registration ~Lequirements . ? ? ?... ? ? ? ?.. ? ? ? ? ?
7 ? residence and Travel t?estriC Lions ? ? o ? .... ? ? ?.... ?
8. Governmental Control of Chinese Education ?????.?
D. Political Orientation e?? e??.??o....?..?o????.?..??.??
1. Attitude toward Government ?...,?.,.,.,....??.?,.?
2. Attitude toward Communism and Communist C Tina ?...
3. Attitude toward Nationalist China .,.,,,,?,.,,??
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IX.
Laoe e?.Q??..c.o..e?e?..???...?.e?.??.?..??......?........
77
A. Popular Attitude toward Chinese iianority
77
1. Overseas Chinese Economic and Political Influence.
77
2? Social Position =.._?,.????o?s.?..??.????.?e....,.
77
C ONFIDENTIAL
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CONFIDENTIAL
TABLE OF C ONTEMTS continued
Page
B. Governmental Attitude toward Chinese Minority oc.....o. 77
i,s Assimilation Potential ?a. oa??.?+~4o?see????oo?...e? 77
2. Participation in Local Political :activities ....... 78
3? Role in Civil Service; Police, and Armed Forces ..? 78
4. Status of Chinese Organizations O.i!???e?....e.?... 78
5. Policies toward Chinese Lducation a..??n e.ee....... 78
6. Subversion ,e.e.?o??ee?.??s.e?..?.io?o??..?.eo.??a?
78
C? Legal Status ..?o?...?..* .............?........-....... 79
1 Relevant Treaties ee..?oo.?o..?....6.c?.....??....? 79
2, Immigration Controls .-?.?p??.?.?e?s?+???os??..eo.. 79
3. Citizenship Requirements for Ethnic Chinese .a...?. 79
4. restrictions on Property lights ?.o?o?.,.?.?..??eo? 79
5? Economic Role .??esse,..eoe.??o.e+????.ee:o-e???eo0 79
6e Taxation Qeo.s?????.???..?.?o??????????? .?.???? ?e 79
7. 1zlien ~~'.egistration a;equirer~.A~~+s o?Q?oao?ea?.??o??.a 79
8. Residence and Traveltestrictions ???e?oe,e.?s??e.? 80
9. Governmental Control of Chinese Education y,....?.. 80
D. Political Orientation ????ee??e?.?.. ????e???4ee.???e.e? 80
1. Attitude toward Goverrm ent .?..?....v.~e.?......... 80
2? Attitude toward Communist China ao..?a..vo...?.?..e 80
3. Attitude toward Nationalist Government .,.....,.,.. 80
X? The Philippines ..?.?~.?.....?.....e??..?. ~.........?a..... 82
A. Popular Attitude toward Chinese Linority a. ?.e ~..?...., 82
1. Overseas Chinese Economic and Political Influence ? 82
2? Social Position ,....,.......? ..............?,..... 83
B: Governmental Attitude toward Chinese inority ?......,? 83
1. Assimilation Potential ??.??o.?,.,,?,...?? 84
2. Participation in Local Political j.ctivities ..??..e 84
3. Role in Civil Service, Police, and Armed Forces e?n 85
4. Status of Chinese Organizations v..???..?..?.....?. 85
5. Policies Toward Chinese Education .?.???..??....... 85
6. Subversion .?. .....? 85
C. Legal Status of Chinese inority ...o+.~e.o??e.??.??..? 86
1? Relevant Sino-Philippine Treaties ....??...?....... 86
2. Immigration Controls e????.?......?...?.....?....., 86
3. Citizenship i'.equirements for Ethnic Chinese ?. ?.. ? ? 87
4. Restrictions on Property Rights ?? ??4......?.. ?... ? 87
5: Economic ole ??oe.?e?o??oeeo??????o?~??ss.?..??e.? 89
6? Taxation .o.???????v???.?..e..??..o?.o???.???e.e?.? 90
7? Alien registration Requirements a.?o??+o..~o??????? 90
8? Residence and Travel restrictions e ....?e.??.o..?. 91
9. Governmental Control of Chinese } ducation ?.?????.? 91
CONFI DEiiTIAL
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C ONFI DEi~ T IAL
TABLE 0~~ CONTENTS continued
Pag3
D. Political Orientation ???~???.????.???.?.???????.e??.? 91
1 ? Attitude toward the Goverlmlent ? ? . ? ? , . ? ? . , ? y ? o ? o ? ? 91
2. iitti tude toward Communist China .. ? ? ? . ? ? ? ? ? ? o ? .. 92
3. Attitude toward Nationalist Government ?..???,?..? 92
xI? Burma e??.?v...? ???es.??.oe..?.??.??....????.?.
A. Popular Attitude toward Chinese i:::inorit5' ?..?,?,e.oee?
1. Economic Influence of Overseas Chinese ?.?.??.????
2? Social Position .,??????..??.?.???o????.???e???.??
B. Governmental attitude toward Chinese Minority a???????
1? Assimilation Potential ??????.?..r??????.??o???.?.
2. Participation in Local 'olitical Activities ??..?.
3. Role in Civil ServiQe, Police and Armed Forces ?..
4. Status of Chinese Organizations =..?,...?,...
5. Policies toward Chinese Education ?..?....?....?..
6. Subversion ?.??a?.?.e.??...?????ee.o?e??e?s??.o???
C. Legal Status rf Chinese '.'jnority e, ? ? ? ? ? ? ?.. ? ? ? r ? ? ? ? ?
1. Relevant Sino~Burmese Treates ?,?...,?.....??....
2. Immigration Controls ????o???....?...e.?o.?.r....?
3. Citizenship e;uirements for Ethic Chinese ,.._..
4. restrictions on Proerty Rights ????.ou.?s?.....??
5, ECOfO1].C Jole ,.ee.???.?.????.???e.??????????.e..?
be Taxation ?,?.?.???a.?.????e.??e?r.oe??????..?...?.
7. Alien 'registration .requirements ?. ? ?
8. residence and Travel !estrictionS ? ?..??...y.....
9. Governmental Jontrol of Cni iese Education ?...?..
D. Political Orientation .?????????,.ea.?...~ ? ?.?.e.?.?.
1. Attitude toward Government ..??,?.,.?....?...?????
2. Attitude toward Conmunist China ..?o.e?o..c.??,?..
3. Attitude toward Nationalist Government ? ?, m ?.. ? ? ,?
APPENDIXES
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A. Indonesian-.CPI Dual Nationality Agreement of April 22, 1955.$ 106
B; Indoneajta?CPR Excha.ngQ o. Notes on Dual National ity of
June 3, 1955 ................ ............................. 110
C. Chinese Communist Policies toward the Overseas Chinese ?.?,?? 113
D. Policies of the Government of the Republic of China toward
the Overseas C hinese ..?.?....?.??,...?.?...?..?.???...... 118
C ONFIDENTIAL
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Abstract
As the Chinese form the largest minority groups and play important
roles in the economies of almost every Southeast Asian cou_ntry~. their
presence and activities create serious problems for governments in this
area. In recent years these problems have been augmented by the struggle
between the National "overnment of China and the Chinese Communist regime
for the loyalty of the Overseas Chinese.
Assimilation of the Chinese generally is regarded bar these Southeast
Asian countries as the ultimate solution to this minority problem. Pressure
to deal with the Chinese by other means -- segregation, expulsion, or ex-
termination ~- virtually does not exist. Few measures .have been taken by
Southeast Asian governments until the present, however, to stimulate as.
similation. Those which have been taken, such as the restrictions on
Chinese-language education in. hailarid, the Retail Trace pct of 1954 in
the Philippines, and the attempts to abolish dual ci tizenship in Indonesia,
have not usually been adopted as part of a compreensive assimilation
prograr:. Rather, tie:T often appear as devices to off--set Overseas Chinese
economic pourer or restrict their potential as subversives.
For the Overseas Chinese the :selves, assimilation with the
indigenous populations frequently is regarded as an alternative to reliance
on either the ::rational Goverrrnient of China or the Communist regime in
Peiping and not as a desirable objective in itself. The Chinese generally
consider themselves culturally superior to the indigenous populations and
have sought to preserve their traditional way of life through private
Chinese schools nd commercial and other associations. They do not apologize
for their superior economic position and interpret local resentment to the
hold they have over commercial, life as arising from laziness ar.d envy.
The Chinese 1rho reject assimilation, and these still form the
majority throughout Southeast 1Lsia, are also generally uncommitted to
either Taipei or Peiping because of the weakness of the former and the
unattractive nature of the latter. There are, however, organized minorities
partisan to one regime or the other. In recent years the pro-Communist
factions have gained strength because of the growing prestige of Communist
China in Southeast Asia. There is a possibility, however, that this trend
will be counteracted to some extent by the recent socialization measures
in Communist China and the world-wide Communist adoption of soft tactics
which, by diminishing the specter of overt Communist a"gression in South-
east Asia, may reduce the importance of fear as a motive for Overseas
Chinese accommodation to I~eipin5 .
The extent of Chinese Communist influence over the Overseas Chinese
is in part dependent upon the policies of the Southeast Asian governments.
In instances where they follow courses vhich generally permit the further
growth of Communism, this growth can be observed in the Overseas Chinese
communities as well. But in countries where Communist infiltration is
recognized and dealt with touhly, Overseas Chinese appear less apt to develop
a commi tment to C ommunis t China,
CCNFI DETIAL
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I. INTRODUCTION
There are more than 10,,000,000 Overseas Chinese in Southeast
Asia. In most countries of the area, except`'Singapore, Overseas
Chinese are a minority, ranging from 1.8 percent of the total population
in Burma and Laos to. 3 i .8 percent in the Federation of. Malaya. :But
even in countries where the Overseas Chinese are a small minority they are
influential economically. By comparison with average indigenous inhabitants!
Overseas Chinese almost invariably are rich They also actively preserve
Chinese cultural traditions; their superior economic status i::as enabled
them to maintain private schools where the-. Chinese language and Chinese
historical traditions are perpetuated. The. separate school system has
set Overseas Chinese still further apart from the indigenous inhabitants.
These economic and cultural considerations are causes of the general
unpopularity. of the. Overseas Chinese among the indigenous populations
and have obstructed their adjus bnent to the social and political environ-. .
ment in the countries of Southeast Asia. xtlthough the degree of
maladjustment differs widely from country to country'. everywhere it is of
serious dimensions. . . . ? ..
An additional complicc.tion derives from 'the fact that` Overseas
Chinese in recent years have been an object of. competition between the
Government of the Republic of China (GOO ) and the Chinese Communist regime.
Both Peiping and Taipei are trying to attract the loyalty and influence
the political views of the Overseas Chinese. Because of the impression
of power deriving from their.contr?ol over the..?mainland? their alleged
military prowess,:. and because of their: diplomatic offensive in Southeast
Asia and. for various other reasons, the.; Chinese= Communists haveheld the
initiative in this competition with. the GRC. (See Appendix C, . "Chinese
Communist:. Po.hicies Toward Overseas.:: Chinese, " and-.tippendix D, ` "?olicies of
the Government. of the Republic of Chin. Tcward the Overseas Chinese."
It is difficult in many cases to draw a line between assimilated
Chinese and "ethnic" Chinese -- persons of Chinese ancestry who consider
themselves Chinese by language, culture, and famil3r and are so regarded
by the indigenous population of the country . in vtich then live. This,
together:..vYith.te general lack of accurate statistics, makes it difficult:
to calcularte the number of ethnic Chinese. in Southeast Asian countries.
Following area the most rezent rough estimates of, the nunhers of ethnic
Chinese:. and: their, percentages of the total populations in the several
countries: of Southeast Asia; - . ..
CONFIDENTIAL
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Declassified in Part - Sanitized Copy Approved for Release 201 1/1 1/04 : CIA-RDP81-01043R000900050015-7