CO537-4998 — Page 279

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We consider, therefore, that our present policy witholding military aid should continue until political settlements have been reached in both countries.

Deductions

25.

Until all interested countries have arrived at an agreed Far East policy the only military action that we can take is:-

26.

(a) To restore law and order in Malaya.

(b)

(c)

To encourage the settlement of

differences between India and Pakistan so that they may co-operate in fighting Communism.

To continue to give India all possible

military support, even though she should decide to leave the Commonwealth, with the object of making her the main bulwark in Asin against the spread of Communism,

(a) To continue to give military support to

the Governments of Burma and Siam.

(e) To reconsider the establishment of a

military mission in Siam similar to the British Services Mission Burma.

(f) To withold military aid from the

Dutch in Indonesia until a satisfactory settlement has been reached.

MILITARY CONSULTATION AND EXCHANGE OF INFORMATION

It is essential that all countries of the Far East should appreciate the seriousness of the Communist threat and realise that a united policy is required to . deal with it. In particular they must realise that internal

dissensions (e.g., in French Indo-China, Indonesia and Kashmir) are minor issues compared with the Communist

menace.

27.

The Foreign Office agree that unified political action by the countries concerned is very desirable but stress the difficulties of obtaining it. Since the establish- ment of military and consultative organisations must be preceded by agreement on political action, the latter is essential if serious military consequences are to be avoided. Urgent steps should therefore be taken to agree politically on the necessary measures to fight Communism. The recent action by the Dutch in Indonesia, while making the possibility of obtaining political agreement more remote, emphasises the urgent need to tackle this problem.

@ COOSEA 616 dated 29th May, 1947

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?July?