NOTHING TO BE WRITTEN IN THIS MARGIN

Dd. 32855 Ed (4200)

Confidential

expansionist policy, a£ 'confronting her

Malaysian, Philippine and Australian neighbours.

35 SEATO is a mixture of regional and extra-

regional defence co-operation. It has been

welcomed by some countries in the area as the

most effective way of ensuring U.S. protection;

by others it has been shunned as a Western bloc,

association with which would do them more harm

than good. A reappraisal of its role will

presumably be necessary when the Vietnam war has

ended. If the U.S. decided on an off-shore

protective role, would SEATO be the best vehicle

for this? Is there any prospect of an enlarged

defence grouping of the regional members of

SEATO (effectively Thailand and the Philippines)

Could it emerge from a prior economic associa-

tion? Would it need U.S. guarantees to be

credible?

36.To move south from South East Asia proper,

Australia and Lew Zealand share the general

Western interests of promoting stability in

Asia and resistance to Chime se pressure by

strong indigenous régimes; their geographical,

and increasingly their economic, involvement

with the 'Near North' underline this interest in

a special way. Australia in particular is likel

to feel a growing self-interest in using her

wealth to assist in the economic development of

the area. Her Europeans-only immigration policy

may pose problems for her in her dealings with

the countries of the area if the issue of race

moves to the fore of world politics.

/t.37.

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