B. Consultations Under the ANZUS Treaty

427. TENTH ANZUS COUNCIL MEETING (WASHINGTON): Communiqué, October 26, 1959 1

1

The ANZUS Council met today in Washington to review subjects of interest to the three countries. The Right Honorable Walter Nash, Prime Minister, represented New Zealand; the Right Honorable Richard G. Casey, Minister for External Affairs, represented Australia; the Honorable Christian Herter, Secretary of State, was the United States representative at the one-day meeting.

The representatives of Australia, New Zealand and the United States recalled that at the 1958 Council meeting they had enjoined the Chinese Communists to renounce the use of force in settling disputes. In this connection, Prime Minister Nash and Minister Casey noted with satisfaction the agreement by President Eisenhower and Chairman Khrushchev that "all outstanding international questions should be settled not by the application of force but by peaceful means through negotiation." a Each of the Ministers today voiced his concern that Peiping's destructive violence in Asia and its threat of a "liberating" war in the Taiwan Strait should continue to pose a serious threat to the peace of the world. They reiterated their conviction that any resort to force of arms by the Chinese Communists in the Taiwan area or elsewhere could only be regarded as an international problem affecting the stability of the region.

5

The Ministers agreed that the communist-incited disturbances in Laos constituted a threat to the stability of the Far East which would require the utmost vigilance on the part of both the United Nations and the Southeast Asia Treaty Organization. They expressed their satisfaction that the United Nations had already acted with dispatch in response to an appeal by the Royal Lao Government for assistance. They hoped that there would soon be a satisfactory resolution of this dangerous situation. In this connection it is recognized that, if necessary, SEATO, to which all three nations adhere, will live up to the obligations it has assumed with respect to the security and integrity of the area.

As a part of its discussion of the world situation, the Council reviewed the recent activities of the communist bloc, the results of Chairman Khrushchev's recent visit to the United States, and communist economic activities in Southeast Asia. The Ministers were confident that economic and social progress in the Far East would render communist political subversion and sabotage in the area increasingly difficult. They noted the growing awareness on the part

1

1 Department of State press release No. 758 (text as printed in the Department of State Bulletin, Nov. 16, 1959, pp. 708-709).

2

See American Foreign Policy: Current Documents, 1958, pp. 1119–1120. 'See ante, doc. 317.

of Asian countries of the threat posed to life and liberty by communist imperialism. In this situation they were agreed that there was increasing need for other free countries to devote a larger share of their resources through bilateral or multilateral channels, such as the Colombo Plan, for technical and economic development assistance to the countries of the area.

The Ministers agreed that this, the tenth, meeting of the ANZUS Council had proved extremely useful in further strengthening their close and most friendly relationships in matters affecting the mutual security of the three countries and the peace of the world.

The delegations also included:

For Australia: The Honorable Howard Beale, Ambassador to the United States; Vice Admiral Sir Roy Dowling, Chairman of the Chiefs of Staff Committee; Mr. Charles Kevin, Australian High Commissioner to Ceylon; Air Vice Marshal W. L. Hely, Head of the Australian Joint Service Staff, Washington.

For New Zealand: Mr. A. D. McIntosh, Secretary of the Department of External Affairs; Major General Cyril E. Weir, Chairman of the Chiefs of Staff Committee; Mr. G. D. L. White, Chargé d'Affaires ad interim, Embassy of New Zealand; Air Commodore T. F. Gill, Head of the New Zealand Joint Services Mission, Washington.

For the United States: Mr. Robert Murphy, Under Secretary of State for Political Affairs; Mr. Allen Dulles, Director, Central Intelligence Agency; Mr. G. Frederick Reinhardt, Counselor of the Department of State; Mr. J. Graham Parsons, Assistant Secretary of State for Far Eastern Affairs; Mr. John Irwin II, Assistant Secretary of Defense for International Affairs; Admiral Harry D. Felt, CINCPAC.

C. The Colombo Plan

428. ELEVENTH MEETING OF THE CONSULTATIVE COMMITTEE OF THE COLOMBO PLAN FOR COOPERATIVE ECONOMIC DEVELOPMENT IN SOUTH AND SOUTHEAST ASIA, DJAKARTA, NOVEMBER 11-14, 1959: Communiqué Issued November 14, 1959 1

The Eleventh Meeting of the Consultative Committee of the Colombo Plan for Cooperative Economic Development in South and South-East Asia took place in Djogjakarta from the 11th to the 14th November, 1959, after inauguration by the President of the Republic of Indonesia.

'Text as printed in Current Notes on International Affairs (Canberra), vol. 30, Nov. 1959, pp. 606-608.

The Consultative Committee adopted its 8th Annual Report which reviews the progress made since the meeting last year, the problems encountered and the tasks that lie ahead in the effort to promote economic development. The Report will be published in the capitals of the member countries on or after 7th January, 1960.3 The introductory paragraphs of Chapter I, reviewing economic progress during the last year, and the full text of Chapter II, indicating the tasks ahead, are, however, annexed to this Communiqué.*

The Consultative Committee was created at Colombo, Ceylon, in 1950 to "survey the needs, to assess the resources available and required, to focus world attention on the development problems of the area, and to provide a framework within which an international-cooperative effort could be promoted to assist the countries of the area to raise their living standards."5 The Eleventh Meeting of the Consultative Committee was attended by Ministerial representatives of all the member countries: Australia, Burma, Cambodia, Canada, Ceylon, India, Indonesia, Japan, Laos, Malaya, Nepal, New Zealand, Pakistan, the Philippines, Thailand, the United Kingdom, together with Sarawak and North Borneo, the United States and Viet Nam.

Singapore, which has been participating since the inception of the Colombo Plan as a part of the United Kingdom Delegation, was accepted, and participated, as a full member at the meeting following upon the constitutional changes establishing the State of Singapore. The Consultative Committee found that its annual meeting again. provided a unique opportunity to go beyond the cold facts of economic data to a warmer human understanding of the strivings of the peoples of the area for higher living standards. Such understanding contributes much to the effectiveness of the cooperative effort of the Colombo Plan.

Special significance was attached at this meeting to the future of the Colombo Plan. The Colombo Plan was designed to run for a period of six years originally. It was agreed at the annual meeting in Singapore in October, 1955, that the Colombo Plan be extended up to 30th June, 1961. As a result of the specific review made this it was decided that the Colombo Plan should be continued for another five years from 1961, on the understanding that the meeting of 1964 of the Consultative Committee will consider the period of a further extension.

year,

In its annual review this year, the Consultative Committee found encouraging evidence of a quickening pace of economic activity.

2 See American Foreign Policy: Current Documents, 1958, pp. 1126-1128. 'Published under the title The Colombo Plan for Cooperative Economic Development in South and Southeast Asia: 8th Annual Report of the Consultative Committee (Djakarta, 1959).

'Not reprinted here.

*See American Foreign Policy, 1950-1955: Basic Documents, pp. 2338-2344. The former crown colony of Singapore became a self-governing state within the British Commonwealth June 3, 1959-the date of entry into force of its new Constitution.

For the Oct. 21, 1955, communiqué of the seventh meeting of the Consultative Committee, see the Department of State Bulletin, Dec. 12, 1955, pp. 994–995.

There was a notable recovery in agricultural production in many countries of the area. Mining and manufacturing industries also showed progress. The improved situation in the international commodity markets for many of the exports of the area also contributed to an improvement in the balance of trade in 1959.

The Consultative Committee noted indications of growth in real per capita income for the area as a whole. Progress was also evident in the extension of essential social services in fields of education and public health.

Large-scale expenditure occasioned by a variety of factors, however, led to considerable increases in the internal money supplies in many countries of the area. Inflationary pressures have persisted. Therefore, some degree of strain in the internal economics continued. In a number of countries positive action has been taken to contain inflationary pressures and to improve the balance of payments position.

The Consultative Committee observed that the large increase in population in many countries of the area is one of the most pressing problems, particularly because of the effects on economic development and on employment. The Consultative Committee will seek further information on population for inclusion in its subsequent reports.

The Consultative Committee noted that the process of economic development involves not only the mobilization of resources but the application in the area of the benefits of modern science and technology. This calls for a wide variety of training of personnel as well as special emphasis on technical education. Since the inception of the Colombo Plan in 1950, training has been afforded to over 18,000 persons selected by member countries and the services of over 10,000 experts have been provided to countries of the area by members of the Colombo Plan. Assistance under the Colombo Plan is extended on a bilateral basis. It is estimated that assistance from members outside the area to the countries of South and South-East Asia increased to more than 1,400,000,000 dollars during 1958-59. Since the inception. of the Colombo Plan about 6,000,000,000 dollars of such external aid has been made available to the countries of the area. In addition, the International Bank for Reconstruction and Development has made available 935,000,000 dollars in loans to countries in the area.

The Committee noted that the basic initiative and the major part of the resources needed to achieve development has to come from the developing country itself. In spite of difficulties, the countries of the area have continued to generate a large part of the investment they need. Further external aid continues to be required, but it is clear, that Government-to-Government arrangements will not meet in full the pressing demand for long term capital by the Colombo Plan area countries. Many countries in South and South-East Asia have been taking positive measures to encourage the flow of foreign private investment.

The Colombo Plan has become a symbol, both in and outside its area, of the economic aspirations of hundreds of millions of people. The consultative technique of the Colombo Plan has proved its worth. The Committee was confident that the continuation of the Colombo

Plan will bring renewed vigour and determination to the tasks ahead. It is in this spirit that still further progress can be made toward the goal of enabling the free nations of the area to achieve a momentum of economic progress which will make it possible for them to go forward in self reliant growth.

The Consultative Committee took note of the approaching Tenth Anniversary of the Colombo Plan and of the arrangements being made for suitably celebrating this occasion.

The meeting agreed that its next meeting would be held in Japan in 1960.

D. Relations With Certain Countries and Concerning Certain Problems of the Area

THE CHINA AREA

429. THE POTENTIAL THREAT OF COMMUNIST CHINA TO THE NONCOMMUNIST WORLD: Reply Made by the President (Eisenhower) to a Question Asked at the Golden Jubilee Celebration of the National Press Club, January 14, 1959 1

1

I don't believe in the measurable time that on this [question of the potential threat of Communist China to the free world] you could make a really worthwhile conclusion or prediction. There is no question that the leaders of Red China are determined, by methods with which we are all familiar, to become an industrial power, which means that behind it, so far as we can see, they want to be a big military power, and they are going at that just as hard as they can. Now, here is a people of 600 million, and I would think that if they continue in that line, with no change in objective, doctrine or method, then we must indeed be watchful, not only for ourselves but for other people that are friendly and who live closer to China.

But, of course, we would hope that as the instinctive urge of men for freedom, for the right to walk upright in the world, that begins to create a ferment not only in the more western section of the Eurasian mass but over in China as well. That, in my humble opinion, is something that must occur during these years, and I am sure we will have to use more mechanical methods, more material means of assuring our own security.

Until that happens, we have indeed got a bleak problem that must be solved.

'The reply printed here is taken from pp. 28-29 of Public Papers of the Presidents of the United States: Dwight D. Eisenhower, 1959.