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SECRET
tiated peace in the Chinese civil war, perhaps through the good offices of the USSR.
The prospects of a negotiated peace at this time, however, appear remote. It does
not seem likely that the USSR would be willing to help negotiate a peace that might
alter present trends in China which are favorable to Soviet interests. Moreover, the
Chinese Communists would probably insist upon terms which the National Govern-
ment would be unwilling to accept so long as a US aid program remains a possibility.
16. KOREA.
Unless the Interim Committee of the United Nations quickly instructs the UN
Commission in Korea to proceed with elections in South Korea alone, the US will be
subjected to an intensified propaganda attack from both the South Korean Left and
Right for causing an "unwarranted" delay in the achievement of Korean independence,
and the US Military Government may be faced with serious outbreaks of violence. An
early election in the south will undoubtedly result in an overwhelming rightist victory,
in spite of the recent formation of a coalition of moderates. It still seems improbable
that any South Korean Government can maintain its independence after a US
withdrawal.
17. INDONESIA.
The current political discussions between the Netherlands and the Indonesian
Republic, which are based on principles laid down by the UN Good Offices Committee,
may be jeopardized by renewed suspicions that have arisen between the parties to the
dispute as a result of (a) the premature, Dutch-inspired plebiscite on Madura; (b) the
repeated violations by both sides of the recently signed military truce; and (c) the
reservations of the Republic regarding its future conduct of foreign affairs and other
attributes of sovereignty. If the discussions are protracted with little prospect of
obtaining conclusive results, the Dutch will accelerate the formation of a United States
of Indonesia, regardless of the attitude of the Republic.
LATIN AMERICA
18. GENERAL.
The majority of Latin American countries continue to oppose US trade objectives
in the International Trade Organization meeting at Havana by insisting on complete
freedom of action for underdeveloped countries with respect to preferential tariffs and
quotas. At the same time, these countries tend increasingly to seek, or virtually
demand as a right, US economic assistance, in spite of US commitments to the Euro-
pean recovery program. These attitudes are expected to persist at the forthcoming
Inter-American Conference at Bogota.
The potentially revolutionary situation in the Caribbean-deriving largely from
the armament purchases by the Dominican Republic-is not expected to develop into
open revolutions in the immediate future. However, should the tension among the
Caribbean republics lead to intraregional groupings, formalized by treaty, the effective-
ness of the hemisphere military defense program might be impaired.
DECLASSIFIED
SECRET
E. O. 11652, Sec. 3(E) and 5(D) or (E) 9
C.E.A letter,
By NLT.WC NARS Date 4-12-77
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"ocrText": "SECRET\ntiated peace in the Chinese civil war, perhaps through the good offices of the USSR.\nThe prospects of a negotiated peace at this time, however, appear remote. It does\nnot seem likely that the USSR would be willing to help negotiate a peace that might\nalter present trends in China which are favorable to Soviet interests. Moreover, the\nChinese Communists would probably insist upon terms which the National Govern-\nment would be unwilling to accept so long as a US aid program remains a possibility.\n16. KOREA.\nUnless the Interim Committee of the United Nations quickly instructs the UN\nCommission in Korea to proceed with elections in South Korea alone, the US will be\nsubjected to an intensified propaganda attack from both the South Korean Left and\nRight for causing an \"unwarranted\" delay in the achievement of Korean independence,\nand the US Military Government may be faced with serious outbreaks of violence. An\nearly election in the south will undoubtedly result in an overwhelming rightist victory,\nin spite of the recent formation of a coalition of moderates. It still seems improbable\nthat any South Korean Government can maintain its independence after a US\nwithdrawal.\n17. INDONESIA.\nThe current political discussions between the Netherlands and the Indonesian\nRepublic, which are based on principles laid down by the UN Good Offices Committee,\nmay be jeopardized by renewed suspicions that have arisen between the parties to the\ndispute as a result of (a) the premature, Dutch-inspired plebiscite on Madura; (b) the\nrepeated violations by both sides of the recently signed military truce; and (c) the\nreservations of the Republic regarding its future conduct of foreign affairs and other\nattributes of sovereignty. If the discussions are protracted with little prospect of\nobtaining conclusive results, the Dutch will accelerate the formation of a United States\nof Indonesia, regardless of the attitude of the Republic.\nLATIN AMERICA\n18. GENERAL.\nThe majority of Latin American countries continue to oppose US trade objectives\nin the International Trade Organization meeting at Havana by insisting on complete\nfreedom of action for underdeveloped countries with respect to preferential tariffs and\nquotas. At the same time, these countries tend increasingly to seek, or virtually\ndemand as a right, US economic assistance, in spite of US commitments to the Euro-\npean recovery program. These attitudes are expected to persist at the forthcoming\nInter-American Conference at Bogota.\nThe potentially revolutionary situation in the Caribbean-deriving largely from\nthe armament purchases by the Dominican Republic-is not expected to develop into\nopen revolutions in the immediate future. However, should the tension among the\nCaribbean republics lead to intraregional groupings, formalized by treaty, the effective-\nness of the hemisphere military defense program might be impaired.\nDECLASSIFIED\nSECRET\nE. O. 11652, Sec. 3(E) and 5(D) or (E) 9\nC.E.A letter,\nBy NLT.WC NARS Date 4-12-77"
}