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SECRET REVIEW OF THE WORLD SITUATION AS IT RELATES TO THE SECURITY OF THE UNITED STATES 1. Emphasis on Asia. tional resentment against Western interven- tion. The revolution has succeeded and, tem- East Asia has become the center of the porarily at least, virtually has destroyed US world's more immediate and urgent inter- influence in China along with the power of the national tensions. The Western Powers, com- Kuomintang government. Peasant unrest mitted to a policy of containing Soviet influ- and nationalism are not peculiar to China. ence, heretofore have concentrated their ef- They are powerful forces nearly everywhere forts in Europe and the Near East. The in Asia. Moreover, at present there is a stub- danger of Soviet aggression or subversion in born element of anti-Westernism in Asiatic these areas has not passed, but it has receded. nationalism. The urgent question of 1950 in For the time being the ripe "revolutionary Asia, therefore, is whether Soviet-oriented, situation" of Communist doctrine is little in China-based Communism can continue to evidence, very much less than in France and identify itself with nationalism, exploit eco- Italy a year or two ago. The year 1950 will nomic privations and anti-Western sentiment, be a crucial period in the efforts of the West- and sweep into power by one means or an- ern European community to reorganize and other elsewhere in Asia. reconstruct its political, economic, and mili- tary strength. These efforts, associated with 2. Communism in China. the second, i.e., constructive, phase of the In the long run, and to some extent in 1950, European Recovery Program (ERP) and the the success of Soviet-oriented Communism in first phase of the Military Assistance Program South Asia will depend on how China develops (MAP), remain the primary factors in calcu- as a base from which to export revolution. lations of US security interests. The oppor- The Chinese Communist regime in Peiping tunity to develop these long-range programs, has won undisputed military control of China however, exists because the threat of Commu- nist revolution has lessened and the atmos- proper and will receive diplomatic recognition phere of immediate military emergency has by most of the nations of the world. lifted. While the strength and stability of a. Recognition. Europe will continue to be of prior strategic Political leaders in many Asiatic states, par- importance to the US, most of the crises of ticularly Nehru in India, see the advent of the 1950 probably will arise in Asia. Some of Communist regime to power as the culmina- them are already at hand. tion of an indigenous national revolution of In Asia, the situation is still fluid. As else- many years' duration and welcome it as such. where around the world, the USSR is working Though these Asiatic political leaders may toward the expansion of Soviet influence. As have misgivings about the Communist govern- elsewhere, the USSR has employed the tradi- ment, they consider it to have a comparatively tional pressures of power politics whenever broad popular base and therefore to be quali- they seemed profitable, but mainly relies on fied to replace the Kuomintang, which not the revolutionary Communist techniques of propaganda, infiltration of government by only has been thoroughly discredited as an ef- subservient local Communists, subversion, and fective government but also was widely iden- insurrection. In China, the local Communist tified with Western intervention, dictatorial movement was able to identify itself with en- political procedures, and special privilege for a demic agrarian discontent as well as with na- landed, commercial, and financial minority. SECRET E. O. DECLASSIFIED 11652, Sec. 3(E) and 5(D) or (E) 2 C.I.A. OSD letter, 13:31-77 HL NARS Date4-18.77 Dv NLT-

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