THE JOINT ECONOMIC COMMITTEE NATIONAL PRIORITIES

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August 11, 1971
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STENOGRAPHIC INUTt S otoveror Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ; Unrevised, Une ea no for duplication or reprinting Vol. CONGRESS OF THE UNITED STATES Report of Proceedings Hearing held before ommittee on Pr ior 117,1 e and EO ?now in Ijoy THE JOINT ECONOMIC COMMITTEE r --day. Auguot 11, 191 Washington, D. C. WARD, SMITH, PAUL & ALDERSON General Stenotype Reporting 410 First Street, S. E. Washington, D. C. 20003 Washington, D. C. 20024 (2.6erovectqw_Relsose 2002/06/18 : CIA-RDP73B0029PROP020015/033053915 300-7th Street, S. W. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 13 w fl 24 g ATEA S STATAMTaT OF PAGE Jeroina Cohen, Professor of Lw, Harvard UniverEity John. K. Fairbank, Director, east !.sin Research Center, ilarvard University Allen S. Uhitin-J, ProEessor of Political ScieAce, Associa.ce, Cent= for Chlr.c:so StudiQ,s, Univursity of Michigan proved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 193 197 207 -Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1 11 kil.;TIONTJ.4 PRIORITIES 11 d Wednselay, August 11, 1971 a 41ro., OR. W. Congress of the United States, Subcommittee on Priorities and Ecoz:omy in Government of the Joint Economic Committe, Washington, D. C, The Subc)lomittee met, pursuant to recess, at 10:,05 a.m., in RODM 1202, New Senate Office Building, Honorable William ProYmire (ChaLvman of the Subcommittee) presiding. I).RE'8LT4'2,1 Senator Proxmire, ALSO PRMEi7ST: John R. Stark, Executive Director; Lucy A. Falcone, Economist; Richard F. Kaufman, Economist; LcAighlin r. McHugh, Senior Economist; Walter B. Laessing, Minority; and Leslie J. Bender, Minority Staff EconomiSt, an. akim Jamb catoc P.re Tbittct--.2 will come 't.o order. In fiscal year 1971 over $163 billion of the conventional; forces portion of our defense :;-,1d ,et was allocated for Asian contingencies. The conventiol !es portion of the budget arrounted to $40, billion in tiu_ "Etc..: This figure, of course, 1 does not include the nIttni_s spey,t G- strategic forces. Neithex:! 1 does it ircld th coscs o the wa:: in Vietnam. .pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 181 L 1 {; il The $16 billion conventional forces figure for Asia was sacond only to the $19 billion spent in Europe. Obviously if li Vietnam cests were added to the other military expenditures in 11 Asia, those outlays would represent the largest portion by far 7` ii in the conventional forces portion of the defense budget. If I . Recently serious questions have been raised about our G official views of the People's Republic of China. It is clear 7 that much of our foreign and military policies in East Asia 1.C.) 20 21 2.2 (Y7, 24 and the budgetary expenditures associated with them are a revoonse to the threat we perceive from the People's Republic of China. What is the nature of that threat? Are we spending too muah or too little to meet it? Those issues stand out vividly in light of President Ni'xnes recent announcement that he intends to make an officiall visit to Peking next year. These mntters and others are the subject of today's 1 discussion with three of the tountry's foremost experts on Caima and Asian affaLrz7, Jerome Cohen is Professor of Law at Harvard University, a graduate of Yale Law School and Yale College. He is a bpacialist in as Asian legal studies, particularly China. He: has published a number of books in this field and is about to complete a study of China and international law. John Fairbank rec,Aved his Ph.D. from Oxford. He has beeni Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 i Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 '7 ? 0 ?f.1 2 0 2 22. Ab A 23 1E2 on the faculty of the Department of History at Harvard since 1936 where he is presently Higginson Professor of History. Ha hz,s been History Director of the East Asian Research Center sine 1959. Mr. Fairbank was with the Coordinator of Information and the OSS in Washington in 1941 and 1942. He was Special Assistant to the American Ambassador in Chungking, China, in 1942 and 1943; with the Office of War Information, Far Eastern Ooerak:ioits, Washington, D. C., in 1944 and 1945; Director of the U.S. Information Service in China in 1945 and 1946, and ho La: been a womber of the National Commission, U.S.-China Relations since 1966. Mr rairbank is the author of several books, including: United States anl Chinar "Modern China;" "A Bib1iographica1 Guide to Chinese Works, 1898-1937;" "A Documentary History of Chinese Communism;" "Trade and Diplomacy on the China Coast:" "China's Response to the Wast;" 'East Asia: The Great Tradition;" "East Asia: The Modern Transformation." Allen S. Whiting received his Ph.D. from Columbia. He was former Director of Research and Analysis, Far East, Department ; of State, from 1962 to 1966. He was Deputy Counsel General, Hong Kong, from 1966 to 1968. He has taught at Northwestern University, Michigan State and Columbia. HO was With Rand Corporation from 1957 to 1961. He is the author of "China Crosses the Yalu;" "Soviet Policies in China, 1917 to 1924;" Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 2 4 5 6 7 *?1 I3 14 15 117 c:`(3 10 22 23 25 ;Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 183 1 co-author of "Dynamics of International Relations," and other works. Dr. Whiting is currently a Professor of Political Science and an Associate with the Center for Chinese Studies at the University of MichigEm. Gentlemen, we axa honored to have you present. Mr. Cohen, will you proceed. I might say I would appreciate it if you would hold your remarks down to ten or fifteen minutes and thert the balance of your statement, what you can't cover, will be printed in full in the record. Sr2ATI2NENT OF jEFOME COHEN, PROFESSOR OF LAW, HARVARD UNIVERSITY Mr. Cohen. Thank you, Hr. Chairman. I am very pleased to have this opportunity. I do haw.: a longer statement that / would like to submit for the record, but I will be relatively brief in my informal presentation. rentation addroz itself to the two principal questions that your Committee is seeking to investigate. Ono is, how do wo assess the threat of China. And the second is, how do we respond to that threat. I would say with respect to the first question that for over 20 years our assessment of China reflects misperceptions, myth and mistakes. Bviefly, one can tick off what what almost 14pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 N., ee 23 24 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 184 coee,,titutes e litany of mistakes and misperceptions. At the verv outset, as a number of people have pointed out, the U.S. leaders sought to depict what was going on in the Chinese revolution and the Communist takeover in 1949 as a Soviet sate/lite installed in China. At one point Dean Rusk called China a "Slavic Manchekuo." Secondly, Wean North Korea irvaded South Korea in June, 1950, the United Stats perceived this as being largely a Chineau-seoneored invesion and used this as the pretext for ieteevaning our fleet and eventually posting our military rces, between Taiwan which had been recognized by us at part of China until than, and Mainland China. -We didn't realize, anparently we didnt care, that this would be by woi,le, in Asia, but in China epecifially, as seen not only intervention and aggreesion against China's territorial integrity, even though that had ear-?r been our poSition. We eventually male an even more profound mistake, ot perhaps one of equal Dlagnitude, when We decided to seed troops eeeose the 38th parallel, China's border of N)rth gorea, and the Yalu River, despite the most repeated Chinese warnings 1 that China would deem itself threatened in security if we sought established in 1949. We didn't apparently take into account thit to being down the North Korean regime. Again, what we under- estimated was China's determination to defend the Chinese revolution, which was then only a year old, having been Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 185 5 the Chinese had rememl)ered western intervention against the Lik 'Revolution in 1918: that the Chinese had remembered 3 I that Japan's invasion of China started with interference with Taiwan in 1395 and proceeded in 1910 to take over Korea, and thcu py...oealaed thence north into Manchuria. To the Chinese, asi P:-Dfssor Whiting's a',)le study of 1960 shows, the United Statee ' .to be repeatinj the Japarese pattern of infringing on 1 C1iri security and territorial integrity. 110.1, we eqded tae Korean War, and China adopted a policy 3 of peaceful existence from 195d to mid-1957. And at that time 1 c.ontiuucd to jm.tify our rebuff of China's repeated initia- ":MS to have peaceful co-euistence, not merely with the United Stz,It5 but with the w3r1d, by invoking the myth of aggressive Citinno After all, ths United Nations, which had been a party in the Korean conflic*z, had condemned China as the aggressor. To the Chinese, however, this looked rather Odd since china's t:060 ',?0 had not takeA part in North Korea's attack on South Korea and since they only entered the war, as X indicated tyii after the Un:Lted Ctatas advanced toward the Chinese border. Well, the period of peaceful co-existence didn't really wiL any great gains for Peking. And in 1959 she shifted to a more militant policy. And in parte as I think Professor Whiting's paper today will also support, that policy reflected a covert United State t sponsorship of many hostile acts toward .12 IS "i0 2;) 2i 22 23 2.3 cnina. we saw, koy: ?1?xampIe, that Peking's new emphmais on Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 (I tiApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 liberatinc! by force Taiwan in 1958, the offshore oil lands which sLonW have been perceived as renewal of the civil: war eraphasis, was by us transformed into an international pzoblem because of the fact we said Taiwan was no longer part of China. We ignored the fact that it was United States sponsozt- i ship of Nationalists initiatives in the is/and area i that brought out Peking's renewed hostility. 1 We also aaw that whea Peking suppressed theithamba tribes- 1 melx's rebellion in Tibet in 1958 we sought to portray that 2 1 criois, 3 4 5 1 3 186 ce an international problem, even, though theta were no protests' agait China 'S reincoxperation of Tibet which had earlier boeni p3Irt of China in 1950, and even though we were covertly sponsoring and supporting sore of that revolt activity against , ; aice rule. '4419Iniin probb.-5m of 1962 and the overt hostility, at that '3 r.oint, I think, also Y.I.a7e been part of the aggresbive China "3 7 iz..dictmnt that we have heard so much About in the late)O'S f and early '60's, as Professor Whiting's paper again, I think, suppcol-ts, The Indian problem was brought out in part by 20 1 China's concern about covert and hostile activities against Chita in the area of Tibet and elsewhere along the Indian border, 22 So, by the early '60's this country was haunted by a ? 1 23 specter -- and it was a specter -- of aa aggressive, militant 1 94 China. And it was this specter that made possible the mobilital P fr.7,43 tion of public support in this country for odr tragic Vietnam !Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 211 3 4 3 7 3 9 15 SO 10 20 21 22 23 24 25 irterventioa. Today in self-juetification, sore of the former high ). 187 officiale of the Keneady and Johnson Administrations argue thati although in 1971 we have all recognized that China is no longer! expansionist in the conventional border-crossing sense, it was reasonable in 1965 to see China an being aggressive, and therefore it was reasonable to challenge China's co-called indirect aggression in Vietnam by sending American combat troops there. They saw, in other words, in 1965 the existence of an Asian Communist conspiracy -- as one once Said, its capital w4a. Poking, China -- but they say today, of course, it has dioappenred. This reminds ma in a curious way of the story About the Iad who at 13 thought his parents were quite Ignorant about thei affairs of the world and was amazed by the time he reached 21 at how much hi z parents had learned in three years. I think the orIginal image of China emu inaccueate; but it would be equally inaccurate, however, if WG were to see China as wholly ? benign today. But in neither case can we justify the indictmen11' tremendous expenditure of resources by the United States, not merely in money and other resoUrces, but in people, in order tol combat and contain this aggression. that China is unively aggressive and therefore justifies the I think the establishment is now coming to reeize that pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ees 9 1 - , tele hes beena grosely exaggerated view, a carieatuse of the 2 , Chinese image, and that it has been a tremendously expensive one and one that has cost us very dearly. Even if one turns 1 188 0 to so-called indirect aggression and Chinese subversion, one finds that the Chincee have allocated relatively insignificant 1 amounts to helping was of national liberation abroad, and that, even their propaganda, weapons training and other forms of support for these wars of national liberation have not been ve O successful, and that we shouldn't exaggerate the danger there 0 lO (that any healthy society in Asia that is led by genuinely neticealistic leaders with some popularity would have from this 1 i2 kiild of a threat from China, 13 Finally, on the military front, i think it is fair to say . thee Chou En-lai as rot grossly exaggerating the other day in 1 45 hie interview with Mr. Reston when he described China's 16 atomic-nuclear attainnents as merely in a preliminary stage of 1!?esaarieantation, and that not in our lifetimes will we find the 10 CMnese nucleax threat comparable to the Soviet or the-. American 19 tl.)::ez.t to other powerz's froze the existence of nuclear weapons. 20 And even with China s predominantly rural nature, with its urban 21 shelter probe:am, with its perhaps ability to absorb nuclear V aacks greater than others, because of these factors X think it 23 would be the height of irrationality for Peking to resort to nuclear weapons. And indeed P%king has repeated its request thai: 2.3 other powers join it in a no-first-use pledge of nuclear weapons, lApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ....?????? Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 10 189 IAnd I would urge that we take very seriously a response of a favorable nature te talking about under what conditions could 3 we indeed come up with a no-first-use pledge. So I thiak we have to understand that Peking wants nuclear weapons because Peking, althoegh it talks about itself as a 0 middle power that wants to group itself with the Junior powora In the world ageinst the superpower conspiracy of the United States and the Soviet Union, really had-aspirations for equalitr 0 with the United states and the Soviet Union. One has to under- stand a great deal about the Chinese past -- and I ma sure Peo!!essor Iliairbaek will mention this peculiar emphasis upon equality, upon :reciprocity, upon being treated not as some junior member of the world community, but as a leading power -- 13 to enderstand why Peking leaders have this extraordinary sensitivity and want to have equality and therefore want nuclear weapons uhich represent the ticket to equality with `e3 the suporpowere. Before leaving the subject of our ausessment of China and eur mistakee in the past, I think it is important to question whether ee axe now oerrently.laboring under another misappre- hension about the nature of China's po/icies and China's determination to achieve equality in the world. President ; ke Nixon hate repeatedly announced the belief that we can norealizel relations with the Peeple's Republic of China while still main- 23 I 25 taining our friendly relations and our defense commitment to 4Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 3,1 1) 11 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 4 6 13 14 70 17 10 10 10 21 22 ?23 24 25 thc Republic of China on Taiwan. 190 Now, perhaps this is simply something that has to be saidl at the moment in 02:del: to quiet the obviously unquiet rightwinj elements in bW-11 political parties. Perhaps it is simply a domestic political maeeuver to distract us from our internatiodal domestic problems. But my hope is that the President is eeofoundly sorions ebout believing that he may succeed in normalizing relations with China. But if he is, I think we have to realize that the Chinese are not kidding when they say we can't have our cake and eat it too, we cannot recognize two geveenments as being the legitiMate government of China and 4 that we will have to break diplomatic relations eventually withl 1 ch o Nationa1i0t Government on Taiwan if we hope to.normalize relations, ae I think we have to do for our security position, with the People's Republic on the mainland. Otherwise the rresilent'e journey for peace, I fear, will in Shakespeare's femoaa phrase, "keep the Word of premise to ear and break it to mu! hope." Vinally, Mr. Chairman, I want to talk briefly about roe:pone-ling to this threat. I think the threat is exaggerated. I say the threat is LaLud on misperception and perhaps deception of the /)merican public to a certain extent, and exiggerated fear.. Nee?, should we so respond? Obviously if we are really going to Vtite a new chapter in Sino-American relations we are going to have to Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 S7,:"Et 'Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 2 1 3 is Chinese territory, going back on our pre-June, 1950, 4 1 position that it in part of China's territory, and we are going 191 normelize relations, I or:6y, with Peking, we are going to have to recogniv . a legitemate basis for Peking's claim that Taiwan to have to somehow implement the vague prescriptions of the Nixon doctrine in a way that will respond to Washington s perceptions of their legitimate both Peking and security intereste. / am not a epecialiet on military affairs, and I won't burden the Committee with my remarks on this subject. But I am a specialist on international law and I would like to conclude - testimony with a few remarks on its relations to our pelitical-military problems with China. By adopting a new attitude toward international law, the 14 United States could help significantly to reduce Sino-American tensions. 6 Now, I bell ee our present attitude can be summarized as If 5 3 9 20 21 22 23 24 95 oae scholar, Bari Ravenal, did recently, by saying that this nation behaves. according to the principle that we have a peivileged puepoee that ee must impress upon the rest of the world. Now, 1 think that has been obvious in our relations wit China. And let me simply illustrate it by two recent examples. Last week in the New York Times it was reported that the United States in order to facilitate the President's trip, would discontinue flights over China by our manned SR-71 spy planet end our =manned reeonaaissance drones. We would continle rkpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1 ees i: Fl 11 1:3 173 13 10 20 21 22 23 24 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 192 our satelliee reconnaissance because that did not take place in Chiraa'sairspacebut above it, and therefore it was not provocative. Now, ceetain Admi that. we have ever flown SRe71's overflown North Korea with them. that we have flown our unmanned eance-missions. Now, on the nistration sources have denied over China, saying that we have; But they concede, of course, drones into China on reconnaleei face of things this looks like a very enlighter ed thing to have done. We suspended these overflights., and ohould eliminate the possibility of another U-2 fiasco such es we had in 1960 that cancelled the BisenhowereKhrushchev conference. But what virtually no one see es to recognize is thet this very announcement years the United State has ir apace. implicitly conceives that in formerj been violating China's territorial I No, this is contrary to the accepted rules of international law. This ie no news to Peking, of course. It has issued elmoet BOO protests againet this and it ha e ehot down a number of our drones. One eaa imegine the outrage ihateAmerlcan leaders and American public opinion would feel if Chinese military aircraft were repeatedly violating our airspace But somehow it seems rights to Americans that the United .States should be violeting the airspace systeuatieally of China, and not merely China, North Vietnam, Worth Zorea, Cuba and other Comunist states. We want them to abide by the rules of the Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 l I 193 2 interaational game that says invading airspace is out of line. I A And yet we zacpect them to tolerate our failure to observe the same rules. 6 Similarly, we castigated China for refusing to observe the ; principles of non-intervention in the affairs of other states, but we have sought to rationalize our intervention in Vietnam because we weee combatting this kind of Chinese subversion, thi;..i indirect aggreseion I mentioned earlier. And yet we tend to ignore the evidence that enterprising journalists and scholars uncover from time to time of the extent to which our own government hen engaged in hostile activities of a covert netuee -- not merely propaganda -- against the People's Republic, as in Tibet, and in sponsoring Nationalist raids eel/Lest the Chinece. Last week the Waehington Post discoveredandreported that the Urrited States has just ordered the CIA to stop sending into China Lao tribesmee whom we have been using to infiltrate into China for variety of purposes. Peeviouely, high Administratioe officlals net only in public but in private have denied that these raids have been going on since the NiXOn Administration toe!; officio. They conceded they wpre going on earlier. And ye e it has become very clear now that it is not only Peking and Moscow that hav been fostering subversion in behalf of the universalistic ideology. Now our ideoloey is different from theire. I prefer it. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 15 10 11 12 14 15 16 17 10 on 20 21 22 23 24 25 ; Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 /94 1 3ut the question is, does that really justify us and not them i in covert departure from the rules? Even if, as it appears, the Chinese Communists regard international law as an instru- ment of policy to be adopted and used when deisrable, but to he ignored when necessary, we should4.'t overlook the extent to which this attitude of their reflects their perception of how we and others play their game. I could go on at length, but I will simply tick off other instances in which they see us as having manipulated inter- national law to our interests, I have mentioned our overnight change on the legal status of Taiwan. One can go back to the United States for peace resolution in 1950, where we Changed the role Of the General AmGembly far beyond what was contemplated at the time the tnited States Charter was passed. They regard, of course, the label of aggression on them in Korea as being inappropriatel We held up a truce in gorea for well over a year because of a I new interpretation we grafted upon the 1.949 Geneva Convention with respect to prisoars of war. We announced in 1954 that we were wrong in 1950 in saying that there was no veto in the Security Council on the question of China's representation. I was glad, by the way, to see that Mr. Rogers appears to be retreating from that position and saying that at least the United States will assert a veto on China's representation in the Security Council. Approved For Release 2002/06/18 : CIA-RDP731300296R000200150005-9' ars 16 9 10 '11 21 22 23 24 25 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 195 in odditio?? to this manipulation of the rules, we baea to he continulo,g, as I have indicated, covert violations. My own college classmate, who has been in a Chinese prison for nlost 20 years, was engaged in CIA air operations against China, which we have denied. And we have used meteorological balloons over China as an excuse for getting reconnaissance information. And we have used foreign fishermen and other means of getting data inside Chinese territorial waters against their will. And the Chinese haven't ignored either how we play the gami in international law, not only in Vletnam but also in the Bay Pios -- but with respect to the overthrow of the Arbenz regino in Guatemala, and the Dominican Republic in 1965 is a beautiful case. The State Department legal adviser, Mr. Meekero then aid, while it is true that one could argue from a mechani-: cal, legalistic point of view that we may not have complied with aU. the rules of interactional law, properly viewed one could sea euo action in the Jcminican Uepublicas another chapter in the croative development of international law. Well, that is fine for domestic public opinion, but if you are looking at it from tho point of vita/ of Peking and other capitals, it doesn't! look very persuasive. Sc) I an hoping, Mr. Chairman, that our new cessation of thci houtile ground pwietration of China, our new cessation of the Approved For Release 2002/06/18 : CIA-RDP73B00296R000200150005-9 srs 17 4 11 13 15 1G 11 1G 10 20 21 22 LJ 24 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 196 overflights into China's airspace, represent not merely some tactical decision to facilitate and assure the President's trip to China, but represrznt more than that, represent a new policy of dealing with the Chinese, one that is based upon respect, respect for China's territorial integrity, respect the other forms of international law, and respect for the principle of reciprocity. I think if we adopt such a policy and combine it with a more realistic and less fearsome assessmeitt of China's capabilities and intentions, we will be making a substantial contribution to the relaxation of tensions in China, to our own security and to the conservation of our own human and material resources. Senator Proxmire. Thank you very much, Mr. Cohan. (Prepared statement follows:) for' Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Ii Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 2 / 17 73 10 20 2! 22 23 24 197 Senator Proxmire. Mr, Fairbank, STATEMENT OT PROFESSOR JOHN K. FAIRBANK, EAST ASIAN RESEARCH CENTER, HARVARD UNIVERSITY Mr. Pairbank. Mr. Chairman, I agree with praceically everything Mr. Cohen said. I would like to look back a little bit and begin with the point that President Nixon's visit to Peking is part of a general trend toward greater contact with China. And this kind! of contact cannot be handled by purely economic and military means. It will require academic cultural, educationeil and informational means on a much larger scale than heretofore. Since these latter means are a great deal cheaper than the ueual military and economic means, this trend can benefit the American taxpayer' Historiana look back at past cases to get a longer view of our experience. In Chinese historical studied we try to take account of the psychology of the Chinese people. In the new and as yet neglected field of American-East Asian relationt,, we study the values .0ad attit=det: of the peoples on both sides of the Pacific ad how they interact. The first point revealed by such studies is that the Chinese attitudes and values are very different from those of I the Americans. Their war aims and peace aims are both different. We have recently found that the Vietnamese peychology, values and attitudes'are different than we thought/ Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 19 198 and for this reason our firepower has not had the effect we who used to be Confue.ans and Buddhists and are now claiming tel be Conmunists, whereas we ourselves have not been any of those I expected it to have 1 1/2 15 16 1. 24 25 in Vietnam. We have been fighting people things. How could we expect to understand their psychology? I suggest that just us men is a creature of hit, so nations are Creatures of history. One way to foresee their future conduct is to look at how they have behaved in the past. As we prepare to deal with China, what has been the Chinese record, first of all, as a military power? Histeriane have long since exploded the fiction that the Chinese have always been a very pacifist people. Actually, their history has as muds warfare in it as that Of most countries. However, warfare in China has Occurred in A diffeeent context and sometimes for different ends than we might expect. filled have seldol countrleb. In and is so an extremely have been the Take the simple question of expansion over surrounding peoples. The Chinese record shows that once the Chinese up their own subcontinent that they now occupy, they gone abroad with expeditionary forces to foreign fact, China stretches so far from north to south self-sufficient economically that they have been stay-at-home people, while the Western Europeans expansive peoples. We can understand this if we look back to China in the yew Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 C." 20 1r exploration, maritime trade colonialism and taking over the world in the 19th century. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 199 1 1000 or in the time of Marco Polo in the 13th Century, when thei Chineu Empire vas a commercial area with a great deal more population and production ad a higher technology than medieval; Europe. Probably one reason the Chinese did not expand much beyond! their frontiers was their self-sufficiency. in contrast, the : European countrice on the small peninsulas of northwest Eurasia Iwere relatively poo:. For example, they lacked products like cotton and sugar, which they got from the Eastern Mediterranean and warmer countries. The Europeans were have-nots with an incentive to expand abroad and this led them into foreign LU 10 20 9 22 In the last SOO years the Chinese have been concerned primarily with their can affairs, as usual. Unfortunately for them, in the period of the Renaissance and industrial revolu- tions the Mines? fell behind the western countries. They are! now trying to catch up, but they still have a long way to ger and they are trying to oateh up in a rather different way than we would eepect. They are not interested in a great foreign trade and have nhown no signs of wanting to develop a worldwid naval power. They claim they have plenty to do at home and observers of their recent progress all agree that there is a great deal to be done there. Let me illustrate China's non-expansiveness with referencl. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 sre 21 0 10 11 12 1C; 17 10 20 21 22. 23 24 25 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 200 to Southeast Asia. By the first century A.D., the Chinese were, in touch with Southeast Asia and could zee there were trading 1 possibilities in the area. It was quite easy to sail with the i monsoon winds from tha coast of China to the Straits of Malacca and back again with the seasons. The Chinese in South China anil in North Vietnam -- where the unified Chinese Empire had begun to rule in the second century B.C. -- had more than 1500 years of opportunity to expand their trade and political power into Southeast Asia, right down to 1500 A.D. Indian and Arab traders were at first more active in this region, but eventually Chinese also began to go to Malacca for trade. But the Chinese government never followed up with colonies or political control. In the 1300'a and 1400's, the Chinee gOvernMent at Peking tent fleets to the south on the 0.? established rouei of trade and they got sea* of the Southeast ? Asian rulers to send tribute missions to Peking. These Chinese fleets found overseas Chinese trading communities already established in places like Malaya and Sumatra. ficwever, there Wa3 no governmental e:tcmpt tc cztab1is11 colonial contra. The Chinese fleets went back to China and did not come again after 1435. IAlmost a century later the first Portugese got to Malacca 1 in 1511 and to China in 1514 and began the process by which European colonialism took over Southeast Asia. the Portugese were succeeded by the Dutch and the British and the French, and Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ers 22 9 13 13 I Ii 16 21 23 25 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 201 now in receet years the Americans have been active in that same, area, all comiag half way around the world from a great ; distance. Chena has remained close at hand all this time, bothl in the 1500 years before the Europeans arrived and in the 400 years after that. Yet China has not even tried to establish colonies in Southeact Asia. This does not indicate that the Chinese are incapable or 1 stupid, but rather that they have different aims and a different: govoramental tradition. Their military tradition is defensive and throughout most of their history has been concerned with In sr Asia, wheee the Russians now pose a menace to their feentiere. Predeceasors of the Russians were, first, the Huns ie tha period B.C. and then later, the various Mongol tribes, leading up to the Mongol conquest of China in the 13th century. This record of conquest of China from Inner Asia, which was repeated by the Manchus in the 17th century, has led to a Chinese strategic concentration on tho landward side of their realm. Their concern for Russia today carries on this traditio, Tho Great Wall eas built in the poeiod before Christ to mark this frontier and help keep these foreigners out of China. There was no menace from the ocean and no tradition of defense by naval power. All of this land-minded defensiveness has resulted in China having a very weak naval tradition. This was not a resul of technological backwardness. Far from. it. The Chieeee were Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 era 23 1 fl 10 11 12 1Z1 14 15 tO 10 10 20 22 a. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 202 the early inventors of the watertight bulkhead, the use of transoms in naval architecture and also were the early inventort of the axial or stern-post rudder. They were the first to use the compass in navigation and developed a very efficient lateen-sail rig. Nevertheless, all this did not go on to produce a navy in the modern sense. The Chinese were simply not concerned about nava/ expension overseas, nor did any naval power menace them until recent times, when it was too late. it is significant that the Mongols who invaded China by land also , tried twice to invade Japan by sea in the late 13th century, but the Chinese never made the effort. Just as they have not colonized under government auspices, io they have not had striking forces going by sea against foreign powers. What about the new missionary zeal of their Maoist revolu- tion today? They claim today, as they used to do centuries ago, that their systen is a model for other countries to follow. How much missionary zeal and subversive proselytism arm they going to put behind this idea? They have very little tradition of the adventurous young man who goes abroad to conquir the world and have a career in foreign parts. China has produced very few missionaries. The rather few I Chinese laborers, who in the 19th century contracted to work e3i1 foreign cuuntries? did so mainly in order to send remittances ! back home. China it, the center of the Chinese world and not a place to go away from. We cannot judge them by ourselVeea. We Approved For Release 2002/06/18 : CIA-RDP731300296R000200150005-9 rs 1.4 14 17 13 10 20 21 22 23 24 1; Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 203 have been reiaed on the idea of enpansionism, and Americans today are gzeat travelers around the world. It seem fairly normal foz. us to be-No a mIllion troops overseas and a million tourists going to Europe. rn3 Chinese have no such tradition. Sending even a few thousand people abroad is for China a great new achievement. In addition to their attitudss and values being different from ouro, the Chinese capacities are strictly limited. Of course, being such a big country, they can mobilize talent and resources to build a euelear weapon, but I have seen no evidenct that they are going into a production program of nuclear de- vices in any way comparable to ourselves or the Soviets. Their etaneard of living is still low and they have many prior denande on their resources., The American public, if it has 30 million handguns and other firearms for hunting and sport, may have as much firapoeer as the whole Chinese army today. Eow shall we deal with this very different society and its different ways? Surely the first thing to do is to find out more about China, not a u mattar of intelligence or statistics though these are useful, but as a matter of aims and attitudes, lite style and basic values. In recent weeks the so-called China experts in the United States have been deluged with requests for background information and evaluations. Speaking as one of these characters, I can say that both el. questions and the answers in our publie discussion have Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 yirs 25 1 7 2 15 11; 1 10 20 21 22 23 24 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 204 lacked depth and background. Americans who know the difference between a Catho3.ie and a Protestant cannot tell you the difference between a Confucian and a Buddist. Even we so-called China experts have an only superficial grasp of some elements. I We are one-eyed men who currently play a role only because the I 1 public is practically blind. Chinese studies in the United States are in their infancy and have far to go to catch up with the studies of other countries that we take as a matter of course. Many Americans speak Prenchp German and Spanish but our military problems do not now lie in that sector. Very few Americans can read or steak Chinese or Japanese. We are very poorly quipped for contact with those countries, and this lessensi, our chance of avoiding mutual destruction. What mechanisms can We set up to right the imbalance in our approach to the Western Pacifie? It is easy to make a Asti of needs. I have ne doubt these needs will be Met before the 1 decade is over, because it Will become apparent in no lot* time that raeating these needs is goieg to maximize our chances of survival in the nuclear age. Need number one: Funds on the order of 6.0 million a year! !or support of Chinese and Japanese and Vietnamese and Korean libraries in the United States, not only at the Library of Congress but also in the major university centers across the country. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1 4 lApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 26 1 1205 Need numbar twoZ Say $10 million a year -- rising to a 1 2 10 1; :J 10 1? 19 20 21 22 23 24 larger figure in later years -- for the support of advanced training and research of undergraduates and graduate students in Americaa education in the field of East Asian studies. Universities have thus far depended upon the Ford and Rocke- feller Foundations, the Carnegie Corporation and other private I agencies for their start in East Asian studies. This taPk is becoming too big for foundations, /t is a national need of thei first importance. Weed number three: Say $10 million for exchange arrange- meats, for travel of American scholars to East Asia and of East! Asian scholars to the United States, in other words an increasei in the Fulbright and similar programs and a logical expansion and development of their activitiea. The atm here is a give- and-take between the American and East Asian peoples, helping able individuals to go back and forth and understand each othert better on a two-way street. Federal government and state and private universitieS havel Federal funds of $30 million or so a year can be handled througt all sorts of channels which we already know haw to operate. We know that the government is not obliged to dictate to the hed a good deal of experience in doing these sorts of things. educational world. The two can cooperate. But the national need has to be rocognieed by the Congress before the talent among our citizens can find adequate opportunities for training Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 I Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1 ers 27 206 / Our national need is to understand East Asia before it is too 2 late. 3 We all recognise, 1 am sure, that the most heavily armed 4 nations are likely to be the most completely destroyed whenever 5 we loae our grip on peace. The intellectual resources needed for warfare are rather small compared to the intellectual 1 resources needed for avoiding warfare and maintaining peace. Today we know enough to fight in East Asia. The question 1 is whether we kaow enough to save ourselves from further fight- ;0ing in the future. The Chinese are never going to threaten US 7 1 in this country. The preblem is how to stay in contact with Eest Asia and still stay out of trouble with the East Asian 1 peoples on their home ground. For this the requirements are 13 14 13 76 17 73 19 20 6.1 23 24 25 less military than diplcmatic, less material than psychologicer intellectual. conclude thnt we Americans are in deep trouble becatter I as between our two great public institutions, the armed Servideb and the educational system, our national priorities have been unbalanced onto the military side. It is tis we redressed the balance on the side of educatiOn, ideas and understanding. Senator Proxmire. Thahk you, Dr. Fairbank. Dr. Whiting, Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 !Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 20 21 22 25 207 STATEMENT QF ALLEN E. WHITING, PROFESSOR OF POLITICAL IENCTE. AND ASSOCIATE, CENTER FOR CHINESE STUDIES, UOIVEESITY OF MICHIGAN Mr. Whiting. X, too, lik Professor Cohen, would like to brief: my statement and have the full statement received for the: racord. senator Promire. The entire statement will appear in the xecord, mr. Whiting. Our military expenditures in Asia have irrgeAly been in reopousa to a non-threat. Moreover, to some extt they have actually provoked a latent Chinese military 41.,faava posture whidh in turn we use to justify further expiandi t-4zzes. in conjunction with the Chinese nationalists we have sponsored guorrilla 1 and supported a wide range of espionage, saboatage an activities on the mainland. Those activities created crises in tho Taiwan strait in 1954 and 1958, and furthered a rzwelt in Tibet in 1959. Covert operations heightened Chinese alaro over Indiaa advancaL on the Tibetan frontier in 1962, cniminating in the Sino,-Indian war that fall. These crises triggered Chinese Communist military reactions which, in turn, hava been used to justify a'vast expanae of U.S. military bases, alliances and military assistance programs throughout Asia, ostensibly to contain he threat of Chinese Communist aggreasionf 1 The Chimove Fationalists have, with the knowledge and Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ers 29 3 7 0 1/ 7? 13 14 13 77 10 21 22 23 24 23 208 support of the United States, carried out clandestine air, sea and land operetione against mainland China and neighboring areas for 20 years. From 195D to 1953, hostilities between Chinese Communist anf.' United Nations forces in Korea may have justified our support for these activities. However, our Shadowy involvement with Mao's civil war enemy steadily grew after the Korean War and the Geneva Conference of 1954. The Pentagon Papers throw new light on the air operations in particular. According to a top secret memorandum from Brigadier General Edward Lansdale to General Maxwell Taylor, President Kennedy's chief military adviser* a Chinese kationalist airline* Civil Air Transport --CAT-- ostensibly "engaged in scheduled and non-scheduled air operations throughout the Par East" was actually "a CIA proprietary." CAT furnished "air logistical support under commercial cover to most CIA and other, U.S. Government agencies requirements. Down to 1961, according to General Landdale, CAT carried out "nore than 200 owlrrlighto oil mainland China andTibet." These were not reconnaissance but airdrops of supplies and pc,asibly men for guerrilla warfare. The 1959 Tibet revolt evoked specific accusations from Peking of outside support, openly conceded by the Chinese Nationalists on Taiwan. These claims and counterclaims, howeve now gain fresh credibility. Ultimately Tibet was to become so Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 30 7 a 13 14 15 10 17 113 13 20 21 22 23 24 25 I Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1 1 posed by the Soviet Union's subversion in Sinkiang, by India's 209 eerious concenn in Peking by 1962, partly because of increased overflights, as to spark a war between China and India. To be cure, as border tension escalated, Indian air recon- naissance missions undoubtedly expanded. However, the sensitiv- ity of People's Daily in its heightened reactions to overflight of Tibet suggests zin added dimension of concern consequent from suspicion of American-Chinese Nationalist intentions which earlier triggered a Taiwan Strait alarm in June. Peking's fears linked an internal economic crisis with external threats advances on the Tibetan border and by new invasion indicators from Taiwan. The linkage between India's "forward policy" and the Taiwan invasion threat was not were propaganda or paranoia. It was rooted in tangible evidence of collusion between the U..-Ching clandestine operations and Tibetan guerrillas. Indian patrol advaaces in and of themselves posed more of a politica/ challenge than a military threat; however, as seen feon Peking in conoort with other hostile postures on China's borders, they necoseitated halting. kailing that, they met a firm rebuff. U.S. activitiee involving Chinese nationalist facilities or forces carry a latent threat to mainland security, whether or not they are immediately aimed at part of China, such as Tibet or the coastal provinces of Fukien and Chekiang. In this regard, Taiwan's utilization and participation in the IndochinaI Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 zrs 31 7 a 9 70 72 14 15 15 17 10 20 21 22. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 210 war had doubtleesly ben of particular interest to Peking. CAT gradually gave way to a new competitor, China Air Lines -- CAL formed in 1960. In 1961 CAL began charter operations in Laos; the next year it moved into South Vietnam. Its contribution came to encompass almost half the pilots and planes for Air Vietnam, with significant contribution in pilots to Royal Air Lao. In addition, it carried out "clandestine intelligence operations" frankly characterized by CAL officials as more dangerous missions." Taiwan is also the headquarters for Air Asia, a subsidiary of Air America, the latter notorious for its role in the CIA's secret war in Laos. facility in the Far fighter maintenance Air East Asia's admitted function is "the only ??????? excluding Japan and overhaul contracts.' ????11. with modern jet Well over 600 combat aircraft ware serviced there in Fiscal Years 1969. The interest interlock of China Air Lines, Air Asia and Air America supports U.S. attacks in Laos, mounted from bases in Thailand. This places Peking's concara with this area in a different perspective from that commonly held in Washington. With Bangkok and Taipei supporting Vientiane s forces, at times bombing up to or over the Chinese border, sensed security need may explain much of Peking's expanding military presence in road construction and antiaircraft activities in Northern Laos. What is depicted elsewher as posing a threat to Thailand can Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 32 1 211 also serve China as a buffer cone to protect against hostile probes of Yunnan province. Only a complete investigation of all Chinese Nationalist 4 activities in the area and clandestine U.S. support thereof can fully clarify Chinese Communist motivations and objectives in those portions of Burma, teas and Thailand adjoining the People's Republic. In sum, there is a credible case that overt and covert U.S.-Chinese nationalist activities have aroused Chinese Commenist security concerns resulting in heightened military deployments toward and across China's borders. This actiVity, in tern, haa been used to justify increased American and allied military investment throughout Asia to guard against the so- ca/led Chinese Communist aggreeeive threat. Our moot provocative yosturee of course, exists on Taiwan, where, only four years after the Korean War, we Wilt a major 5 I 1 12. 23 i5 17 27 strategic bomber base capable of serving our B-52 s. Also at that time we deployed to Taiwan nuclear-capable, 600 nautical mile =Inge Matador mi.aaileo, the first in the Par East. Again, in 1962, when foreign diplomats reliably reported "vaeic in Peking," we moved the first U.S. combat air unit to Taiwan. Today more than 1,000 American military personnel man the $45 million base of Ching Chuan sang, supporting operations in Vietnam. Meanwhile the Chiang regime has expanded other airfields as potential strategic bomber facilities. In short, Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 33 9 5 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 212 the past 13 years of our military activities on Taiwan have brought a steady increase in the capability of that island to i threaten mainland china. 1 liAsuming that our withdrawal from Vietnam removes the need for Ching Chuan Kang and aasociated personnel, the remaining 1 1 American military presence also bears scrutiny. At least until recently, we had more than 660 Air Force officers and enlisted 0 men there, unaffiliated with any specific base. Another 190 U.S. military personnel comprised the Taiwan /0 Defense Command, of whom 90 were identified in *communicational 11 and 50 in "intelligence.9 All these were, of dourse, separate 12 from the U.S. Military AeSiStance Advisory Group (!IAAG) which numbered almost 500. 13 Although we have furnished more than $2.5 billion in military aid 64er 20 years, as of fisdal year 1970 we still 15 authorize $25 million in MAP expenditures, supplemented by 1G another $35.9 million in excess equipment deliveries. These 0 dalivories, unauthori un zed, controlled and often unknown to the Cougr so, promise to Taiwan a steat3y stream of cutrate Weapons 10 out 20 of the mammoth Vietnam stockpile. In fiscal year 1970 they included a-squadron of F-104's, more than 30 C-119 transports, 21 SO medium tanks, thousands of M-14 rifles, a MIKE-Hercules 23 battalion and five destroyers. tbviously, this is a sizable package for a military 1 establishment that already has almost 600,000 men-gnarding an '5 i Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 .o Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ars 34 5 C 14 15 15 17 13 10 20 21 22 24 25' 213 island only 250 mil lona and less than 100 miles wide. Yet this indivace military assistance has lain beyond Congressional control, despite its implications for our relations with both Peking and Taipei, not to mention mainlander Taiwanese reletione ou tho island itself. In this regazde assessment of our actual and perceived involvement with the Chinese rationalists has been seriously hampered by secrecy and censorship. Now, however, we must see the problem in all its ramifica- tions. So long as we provide concrete evidence to Taipei and Peking alike that our military and intelligence interests are tied to Taiwan and the nationalists both Chinese regimes will draw negative conclusions concerning our expressed desire that they settle the Taiwan problem peacefully and between them- selves. Moreover, in Peking those responsible for military con- tingency planning will continue to allocate resources against a U.S.-Chiang threat of subversion, if not of invasion. In Taipei, demands will coetinue for increased military aid to match mainland developments. And in Washington, the military-intelligence complex will argue that helping our ally helps ourselves through continued involvement with and support to the Taiwan regime. Last, but not least, important groups in Japan will press for retaining Taiwan by any means, with or without Chiang, Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 0 4 16 10 20 22 23 4 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 2/4 becaece of its straeeeic im ortance. This is the ultimate danger az oaen from Peking. James Becton, direct from an interview with Chou EL-lei, reports "on the highest authority that officials here axe * * * furious because they think this (U.N. formula) was reaehed as a result of pressure from both Japan and Chiang Rai-chek." The eminent New York Timea reporter continues, "At the nub of the problem here, if one hears these top officials clearly, Jaeanese economic power and military potential, and the Taiwanese independmnee movement -- independent of both Chiang Kai-shek and Mao Tse-tung -- are this capital's nightmares." It i5 no coincidence that the Chinese eoumenists as well a! the Chinese Nationalists suspect that escape from Taiwan of 2rofesson Peng Ming-min in early 1970 waa a plot by U.S. or Japanese intelligence, or both. Recently Chou En-lai in an impracade ted interview pereonally attacked Professor Peng and the Taieanoze Inde oe&ence Movement as instruments of a foreign power, Nor are these auspicious ircredible. Our military and intalligonce investmeet in Taiwan eonvincee all observers, wheth r in Taipei Peking or Tokyo, that this is seen as an important asset which must be retained by whatever means, whather directly in U.S. hands or through allied control. But the path to peace in the Pacific does not lie throUgh .increasing Japan's ammaments, much less acquiescing in. Japanese aspirations foe nucloar weapons as hinted by press badkgroUnder4 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs ?-3 1'1 1f3 20 21 22 e) A 215 dvr:.ng the cct vuit of Sec2:eary of Defense Laird. It lies ? zn a coac'Eteel offo:ct with the Peop/e's Republic of China to arrive at a.zmii control agreements and nuclear free on arrang.r merits which can to the mutual escalation of military expendi- 1 turas. Only a convincing and credible reversal of our own military-intelligence use of Taiwan c2n lay the basis for confidence necessary to mAke President Nixon's 'journey for peace" a successful raality. Senator Prormire. Thank you, Professor Whiting. (Preparod statement Zollews;) Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 216 1 s:czrenornil:e. Professor Whiting, as a former State 1 2 i Dapartment oici3. I should ask you would like tht7i other witnesses to address it also. A 1 Each of tha opening statements underline the question this quilstion first, but im,31icit in my own larlier remarks; Are we spending too much 5 g 1 or too little in military outlays in Asia? If we have been +1 4 wrong the Many year in viewing China av an expansionist, , e.'?(t.iressiv.a nation, if her real intent is to live peacefully ?, within her borders, how can our enormous military expenditures Mr. t:hiting. I think that the Korean War did cause our of the threat to the West Pacific in an entir,ay difmt fracuwork from that which had been entertained by tho Ttu.Tian &drainivtratiozi. Prior to that war there was no enUcipation of the North Korean invasion of South Korea as is Cloar from the rceora, nor indeed was the Chinese willingness tc.tak reai ricks E:nd sacrifices on behalf of its security vnti'it,atod at tK.n :117Tler leTels of government down from Novel,t,,: of 19;30. Ant in the hock o2 discovery that other interests weLe taken that seriously, there was an e..:avgeration of what lay nhead. The image of hoards of Chiteve wt.pwer pot,ring into 7,,roa was a reality. Hoards did c.x-Jio in, at a tr-mendous sacrifice. And it was then assumed that si,oilar sittaticA19 might arise in the China peninsula and "vistnam Wac autl that iLdced the Chi:?esc support and /Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 r,s 38 217 suhversiQn elcswhere would lead to an expansion of power beyond, all reascnable fe,eano of containment and the mass retaliation doctrine was annonced. .It required axtra-strategic forces in that theatre separate from those of the Soviet Union. This 5 was never questioned because of the policy of McCarthyism and ;0 4 ?.0 22 even challenge to that notion became tantamount to treason not only in the goverment but cextainly in the academic community of the United States. T think that. it has taken time, and it has taken the raFaDval of that inhibiticn against speaking out for us to 1 1 tt-focus our concL,rn to realize that there is not that military 1 1 k.:rezit to the Wilted States or the area coming out of China, 1 and that the situation in the Korean Peninsula is a function I i of Eorean actiolls and not Chinese actions. The capture of the 1 1 PU1173L0 and the rihoting down of our intelligence aircraft off f., Kor.?a was nnt triggered from Peking; indeed, the Chinese rezp.nso at the ::,iale was rather reluctantly supported by Pekin Aor was the Vlatnalits:Jse war directed from Peking but obviously and clearly from Hailoi. If we then accept these past errors as a function of the limited experience at the time, the domestic Politica of the United States aad the trauma of the Korean War, I think we can under tend how they have evolved and hopefully correct them today and in the context -- 1 ; Senator Proxmire. When you say correct them today, you 1 i , Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 39 e 20 2.1 22 23 2.4 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 218 1 mc:an are spIncling too much? Can you give us any notion of how much too much? Eow much can we safely reduce our immense commitrient over there? Mr. Whiting. I would say our WILARIS-POSEIDON force in the Qestern Pacific is so great in ts strategic deterrent eer over the ne:e. &Dcade that we have virtually no need for any etrategic bomber bases in that theatre, that instead of increasing we could decrease to a minimum presence uutah to rassuro those countries to whom we are allied that we are indeed mumitted to those defense treaties we have signed; an am speaking here priaarily of South Korea and Japan. 1 Senator Prolalliro, I indicated in my opening remarks that I we exe spending $16 billion in the Asian theatre, not counting' th,a amount we are spe,Ilding in the Vietnam War, and I pointed ut that this vras a vary large part ol! our total conventional the $16 billion compared to the $19 billion that we, are spentning in Lurepe. Can you giv, us any notion of what this would mean in , of savings of ouv owa resoilrces? 14r. Whiting. I am afraid( sir, am not a cost analytt, and I would not maka any pretension to Vantifying in dollar terms whet the ovings could be. I see no real utility for our ;0,000 or 40,000 men in South Korea, and that entire cost can be eliminated without jeopardy to the credibility of our commitment or to the 2,acurity of South Korea. pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ,4xs 40 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 see no rola for any of the bases or hope to keep alilm in Japan. 219 that we have maintained can be closed Certainly our entire establishment in Taiwan forthwith, and should be. The type of forQes that we have maintained in Clark in the 'Philippines have been expanded because of the Vietnam War, ' and if the Vietnam iv, as the President promises, eliminated as cost factor in ths very near future, than presumably that force structure in the Philippines could also be collapsed. 0 20 22 23 24 2'3 And I would suggest i..hat this kind of line item approach would i give you a better figure than something I would grab out of the Senator Proxmire. Dr. Pairbank? Mr. Pairbank. I fdel this situation that Mr. Whiting has just revealed about the American military activity under the guise of Argerican aid is all of a piece with our Vietnam problela. Sere wo have had a relationship with Taiwan. The public has not realiAmd the extent to which we have used Taiw for this ofte1?. 4nr, W., have bean outraged in this country in recent months with the idea that the civilian administration did not keep the public informed as to Vital 62cizions of involvemat in war in Vietnam. We have or should be equally outraged, if we have any of that sentiment 1 ft, about the way in which the military had their cap set under the argument of secrecy of operations in the CIA, to pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 41 z 22 23 24 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 220 conduct were whieh in turn produced responses as from the People's Republic without the American public knowing about This is a very enair situation for any people to be placed They are coefronted with the feet that the Chinese for some reason are extremely militant toward us. The Chinese seem to be threatening us and claiming we should not do this or that and not be aggrensive. And yet the American public lacks the evidence to Understand why they seam to be aggressive. And the inatitutional structure that we have is such that we are not seeposed to know that thea secret military things are being done. It is not possible to have your Secret operation known 1 1 to the public, and the regult is that we have been led, and theli the period Hr. Whiting has been discussing and Out of ignoranc1r ricee pbelic has been lad, into animosity toward China in ? the. :1!iclt that we also have contributed to the animosity. Neuf this is nt a baste on which we an survive. And to put it very eimpIy, X don't think we are going to make it. We have a military institution in this country that is too big to be brought under public centrol, unless a Committee such as yours, ait? can bring it to public information. Senator Proxmire. One of your conclusions is that the Chinese Vial toyer threaten this country. Now, of course, our concern with the Chinese power goes far beyond this country. We are ect civply looking at our own interests here -- meybe we should but we are e t -- we are also concerned with our Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 , [' lApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 42 intores'cs in tlro; Pacific. Would you 221 extend that observation to say that the Chinese will never threaten our interest as a Pacific power? Mx. Faitbank. Any Chinese threat to us is part of the 3 balance of forcos. And the thing I have just mentioned is r. ) that We don't know the balance of forces. We are using force not knowing it with cur left hand secretly; and we are then outraged when the other side, the Chinese, respond in some way. '.1 0 13 1Z") 2.0 42?. 2z.! '25 Now, we can build up a Chinese threat very easily. And we can also get into having a Ae..A?or Senator Proumite. You say we build up a Chinese threat. What I am getting at is, would you conclude that most of the $16 that wta seem to be spending in the Pat East, in addition to the $13 billion or so we are spending in Vietnam, moat of that $16 billion Is unnecessary, it i built on our own myth, our own misunderstanding, our own self-deception? Mt. Faithank. I am personally of the vital,: that theSe who arm are most likely to be destroyed. And I simply ft hot believe that our armamcnt licy at present is a defense policy; it is rathar like putting our finger in the door and waiting for the door to close, or putting our necks on the block and waiting for tho knife to fall. Insofar as we have built up our military posture in the name of defense, we have collaboratbd with the mi/itary people of other countries to do the same. 1 1 There is no end to this and the only out it to stop the defense Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 4 4 5 6 23. 22 23 25 pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 222 effort. Now, this .s a vaey simplistic approach. But I have not seen anybody who has a better idea. Once you start talking about countering the threat of others, you are off in the game of the escalation Senator Proxmire. Dr. Fairbank, many undoubtedly share that view, but many do not. Supposing we do not share that. View, supposing we think we have to be prepared to meet any reat threat to the teeth, we have to be prepared to meet and over- whelm any threat to this country. On the basis of your testi- mony as an eXpert on Chine, and the teetiMony of Dr. Whiting, and Or, Cohan this morning, I would aesuMe that you would still argue that just from the standpoint of deployment of military forces on the ausuuption you have to have them to meet Any real threat cannot be justified in the Par East simply beoiaie China doesn't ropeeeent 4 threat, they don't haVe the economy to represent a threat, they don't have the force in being or the potential force to de it, they don't have the havy, they don't have the iniustry, they don't have the air force or the capa- bility of building an air force, there just isn't anything there that can really threaten this country, possibly in Balthaa6t Asia, possibly in the Korean penineula, period. The faeter that persuades me on this e- and I would like to be disabused if / an wrong is that they are not even threatening Quemoy and Matsu two or three miles offehere, let Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ra 44 17 10 9 20 2,2 2,4 23 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 223 alone Formeoo, it alone the Philippines, let alone Hawaii or any other 1)eee ia the Pacific. What really are we concerned aLout? Why are wo deploying these billions and billions of dollars worth of degee.as on the assumption -- again, I don't -want you tr.) take any notion -that the best way to meet force is 1 for us to redues our :force, with the feeling that they may do the same -- I am 'assuming that we have to recognize force and ! meet it hard and headon. When it is not there we are just throwing our money away. Mr. Whiting. If I could intervene at this point, Mr. 1 Chaileaan, I would like to say that in the South Noreen situatiot a great deal lei? this investment is directed not at Peking primarily bet against the North itorean threat. In this rceard I think it ie faaCinating that Premier Chou EA-lai's interviews with Scotty Reston of the New York Times ealt rather heavily on the Kotean 4ue3tion as another one that he would like to see explored. I think that i itself! a genuine concert to the Chinese, as it should be, that another war in the Korean penentula would be fxightfa to contemplate, that forces now in the area could escalate that far beyond the last war, and perhaps lead to the introductien of nuclear weapons. And yet wa have assumed that the only way to live with the Korean situation is to increase the defense capabilities of the south as the defense capabilities of the north increase, which is a perpetual arms race gambling on the restteint of the! Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 w4.s- 45 1 fJ Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 224 men in Pyongyang, Prcnnier Chou En-lai is not saying that we shoul- withd-,aw, paniod. He in saving that there should be nsgotiont to nnd the Korean War. He has gone back to the 1954 failure at Geneva. I think that it is futile to talk abou: simply increasing Japanese ezpenditures and our investment in the arsa to meet the C%inese threat. We should take up the earlier Chinese proposu for nuclear agreements in the area and nne 'chat /rind of convergent intoreat and shared costs might lie in the joint sharing pn:ograms of that type, instead of unilater ly 9amoing more meney nnd more weapons in on all of our allied cnuatries to produce this defense credibility. Hr. Cohen. Mr. Chairman, could I just comment on these preblaxa? tanntor Proxmire. Yes. Mr. Cohen. I think, first of all, what Mr. Whting has 372at said about South Eorea and that the Chinese desire for some .ort of settlement there, not merely the withdrawal of U.S. forces, it corra?zt. It also appears to coincide: With the wisaes of both Pyongy,14 and Seoul. In recent weeks both sides made a statement that they weal 12,ka to begin talking to each other About the problem of event al unification. And I think we should certainly do what we can to encourage that. Now, Choi./ En-lai pants us to withdra our troops not only from South Korea and vietnan but he wants u to and any pressure for Japanese rearmament, and also to Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 46 0 9 0 10 f7"), 13 14 15 1?5 1E) 21 22 25 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 225 withdraw troops from Thailand aad the Philippines as well as Taiwan, of ars. Mr. Rcuton seemed to indioetithat Chou - was asking to mech in asking us to withdraw the troops from the Philippines and Thailand. I don't frankly understand that I myseaf because it seems to me as the Thais have made clear, once the Vietnam oonflict is over our troops should not have any real role in Thailand; Thailand would be better equipped, 'C think, without the preseace of American troops to handle its 1 own modern insurgency problems. I think the instability of government in the Philippines cone for not only a more vigorous Philippine governments more eeeponsive to tho neses of that Society, but ago the withdrawal,. of the stivelue that :American troops presence seems to provide the leftist elemente for anti-American posture that in turn weakens the government that entertains the troops. don't eee the problem in gradually withdrawing, in accordance with the 'Aeon Doctrine troops from Thailand arid the Philippiaas as well as these other places. think we have got to dietinguish very clearly Taiwan r these othee places. The Chinese claim Taiwan is Chinese territory. They do not Claim that the Philippines or Thailand or Japan and gorea are Chinese territory. And we have to distinguish Chinese aims and ambitions with respect to Taiwan compared to the other places. It doesn't Mean that the Chine ,e 1 aro prepared to take over Taiwan by force. The evidence Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 47 10 11 i2 13 14 15 16 17 10 ;0 20 1-7 24 25 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 226 suggests that they nre hoping Taiwan will be reunified with the mainland through 'Leans other than force. The Chinese are tlot naive. They realize they have a very grave problem on their northern border. It has just been accentuated by the Soviet treaty with India. They understand that action against Taiwan would leave them open on the northe border as well as elsewhere; and they would also be creating, kindling, you might say, the later Taiwanese independence nationalism, one might call it -- if they sought to use forte against Taiwan. So even with respect to TaiWan, which they distinguinh from these other areas, we don't see a great emphasis on the use of force. I would think we certainly could withdraw our troops from South Korea. But I would say that Japan should also be distinguished froal all these other areas. Th.7. Chinese would like us to sever our security treaty as well as withdraw troops from Japan. And they would really like to see us liquidate our entire operation in Asia. I den t think we can ignore what Chou himself conceded to be a contra- diction in the Chinese policy. They want to see us Athdraw from Asia but they also don't want to see Japan rearmed and fill the gap that would be perceived to exist by the Withdrawal of American power. So we have the problem, the U.S. wants to Withdraw troops Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 iirs 48 5' Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 227 5 under the Nixon Doctrine. We d n't want to limit our commitmen 1 1 however. So hc are we going to make up for the existing force i that presumtbly will help us implement these commitments? 1') 10 22 23 24 Senator Proxmire. L t ma interrupt to say, again and again, being Chairman of the Foreign Operations Subcommittee of the Appropriations Committee, I have heard the Administration witnesses argue that the Nixon Doctrine means that we will withdraw our troops, we will replace our troops with foreign troops equipped and funded by this country. Mr. Cohen. Precisely. And that is what the Chinese fear specifically in the Japanese case, that we are going to try to have our cake ,Knd eat it too by withdrawing American. , troops, bnt increasing Japah's armed force as well as the armedl forces of other countries. And this worries them even more 1 than the PL;sence of American forces. I would think we must not vreudce our relations with Japan, we must Make Japan continue to feel socue in Atia, and we must not encourage Japan to go nuclear anmament and I would think that the Chinese realistically, if they tee us not only withdraw from Vietnam but also from the Philippines and Thailand and South Korea, ( iand other places, will understand that it is in their interest as cell as ours that VA not rock the boat in Japan, and that we 1 even -- although we cannot expect them to pay lip service to this -- maintain our security arrangement with the Japanese. would hope that az we implement the Nixon Doctrine as our new Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 49 C1 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 228 policy towax Peking, we will be moving in close coordination 1 with the Japanese who I think have been profoundly shaken by Min Ninon 's overture tnward Peking and who want to go along and 1 =ordinate with un. I think we have to distinguish, therefore, the Japanese situation from that of other countzies. Mr. ?airk. I:1 I could amplify just one question about I Taiwan exab it seems to me that it is of first importance that we pull out American troops and cease these offensive activities. On the other hand, it seems to me that we can easily get a dwagon psychology or some kind of enthusiasm in this country! 1 I 1 :::aniz:wpdr:1:::hc::nag, add mis/ ad onrselvei into thinking t c 1 easily Solved by a complete switch. do et think things can be worked out that way. It takes a 1 i4 40 lot f time, - lot 04 work. Talk with Chou is just a beginning. onsequently, 1 'bink that we have to kedp that defenSe itn-zalt about Taiwan for some time to come. I hope that the Taiwan government will cease to be a rival of PokincF. 1 would hope that sometime they would have sense encngh to say that they ace mily governing a part of China antonomouslv, but not as a rival to Peking; they are not OlaiWi all of China. Senator Proxmire. You would say that it would binWide for us to withdraw our troops and to follow the prescription that the 11.6ministration seems to propose to increase out foreign military asaiStaice, at least to Taiwan, and to continue it withi Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Srs 0 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 229 respect to South Mee a end other areas? Mr. Fair:eank. I see no point in increasing military assistance, unleea this is proved in the public discussions whioh are brought before you. We need figures; we need , comparative figures. And we need to know whether there is a a 1 buildup going on, or just a maintenance of a situation. But 7 I in particular we nee C to have some assurance that we do not 0 I have offeneive activities emanating from Taiwan. If the 1 place can be no longer an offensive threat to the mainland, 3 i I 1 e "05 ,e9 21 23 24 25 then the mainland can perhaps tolerate it, and will have to tolerate it for a time. But we cannot expect the mainland people to accept an offensive Taiwan still on their front door. And I would argue thet it is possible to have a non-offensive Teiwan situation with our defense commitment if it doesn t leave these offeneive aspects to it. In other words, it is an eleutent of stability in a traneition period for us to continue or trea0:a. with Taknen to defend the island from attack providag we make it plain, and carry it out in practice, that we are not readying it for any ofEnneivo action or using it for such. Mr. Whiting. Mr. Chairman, I would like to go further than Profeseor Pairbank. I would advocate termination of all military expenditures, direct and indirect, that support the military establishment of the Republic of China while main- taining our treaty Commitment. These expenditures are surplus to any logical analysis of that ialandus needs agaixut any Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 lApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs51 230 q foreseeeEre tereat. We lei.ve eeent $2.5 billion and while I , , , ,) p realize that your figure of $13 billion makes a saying of if o ,1 $50 millioa sound insignificant, to a mere taxpayer $50 millioni 3 i A h. saved is $30 million that might be used in another way. And i !--e i 5 1; ; ; if our direct and indirect expenditures approximate $50 million HL - II then I think that should be eliminated. There is no credible 11 1 , ll threat from the mainland offered by the testimony of such i 1 reknowned military analysts as Colonel William Whitson, now i I ; with Rand, and recently retired from the U.S. Army; of Morton I I Alpern, formerly with CIA and the National Security Council, i 10 - now with Drookines Institute; or any analysis of which I am 1 i el), awere in the U.S. Government. If there is no threat, and if well 1 1 1 i havo a very large defense establishment there, why spend a i 3 ' i I dollar on it? Every dollar spent is going to be unnecessary, i 1 i if not provocative nationalist posture, whether it is defensivei , I ; or offensive. 1 Mr. Cohen. vre Chairman, I would like to endorse what M. Whiting has said and simply emphasize not merely the sayings in dollars and cents which you obvioUsly have been reoccupied with, but I am sure you are also aware of the profoUndly hostil eymbol system that our continuance of military aid to Taiwan, to the Republic of China, really represents at a tine When it is extremely important for our larger security intermit we genuinely, not just for public relations, but genuinely move toward a new era with Peking. And We cannot expect them tc that Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 s 52 0 231 entertain out initiatves toward the leadership of Peking if we art going to continue any form of military assistance or presence on islanc of Taiwan. !.1 ? nator prox,ara. Yesterday and today we have had witnesses s 1 on the Soviet Union. And they contended that one element in c dissuading the Soviet Union from increasing their military co:amitments was for us not to increase ours -to the extent ;;? that wa increase ours they tend to match by corresponding increase. Governor Farriman pointed out, for example, that it was his und3rsta,dtnia that in 1964 or 1965 the Russians ; 1:!?lair.1)d that it was their understanding that we had reduced our military budget, and that they had reduced theirs because of that understanding. We didn't do that. We increased ours. Of conrse, the Vietnam War was the principal reason. But we increa d ouzo. Patd I think that was a very useful observation Oil their part, because it indicated that in their view at least I to the extent that we do not escalate, they agreed that that Alld bring a corr,sponding deescalation on their part. The reason 1 give you that background is because I wonder if thee is a corresponding reaction on the part Of China. / would. 'Ake to ask you, pr. Pairbank, as a clogs Student of China's internal development, could you tell WI something about way resources are allocated between civilian and military sttort3 in that country? Can you &ascribe briefly how the ? de,c4i'.7iort-ranking process works and how i ififors from ours? Are Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 , Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ers 53 232 ! neee tensieue el-eilee to those in the Soviet Union as a result; 2 military, consm-er and industrial demands fox resources? Ana , hee ere these tensions resolved? 4 ;4r. Fairbanh. 'net is a very intexesting question. I V - oeeeee possibly give you the answer. I don't think anybody inl ! thi,e r uutry knows. If anybody does, he certainly hasn't P 7 ti eetetlished it. 1 ii , Senator Proxmire. If you don't know, no one else does. 1 mr. Fairbank. One thirg ,youCansay about the Chinese ei,teation is, the milLtary are under the control of the so- calle-2 civil government. In other words, the civil governtent iu eztremely Militant, and they call themselves revolutionaries. tehen has been a commander of troops, Nao Tse-tung a miP.tery strategist, 'They don't make the division between civil Ireee m:!_litary that ee hew! got. So they don't have this situatici! la that we have where we call in the military, who are given a Ty i issioa to perform, and they tell us how they are going to do it after they have done it, perhaps. On the contrary, the chins e leadership dscides the military questions as well as the ,1 civil questions all in one bag. And that gives them a great ee lachantage over us in any ways. They understand what is going \on,and what their position is militariely an..3 otherwLse. We i '3 11hae ,.1 problem, by giving the military their ialssion we then advoeate that when they have won pee, or whatevar they have go 23 they come back ad report it. 4pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ii sirs 54 1 , 1 I.. Chinese civilian leadrs really envision themselves as military Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 233 Senator Pronmire The trotble we have with that, and I think many people, is that I think they would say that the k peoplo in a senrm. That is the way many Americans look at it. F 1 zi r They reel that Mao, for example, and Chou, and so forth, are 1 1 primarily viewing tHeIr role as one of military revolutionariesi t and consequently when you say the civilians are in control, it t ! 1 r , i li 1 , 1 0, ,3 4 11 { improving consumer 1.;ei.1 being as much as there is a group that TO iv determinud fanatiAlv to achieve revolution. Wow, I don't say that that view is correct, but I say that .., is a very widespread view. 7 ? II ---, Now do 7ou meet that? 1 Mr. Fairbanh. FAist of all, there are people who are 1 11 I dedicated to a revolution at home, and they are stuck with the d I; ; i oblem of Chita, which ia an enormous problem such as the worlil ? r: il has never dean before, so big, so many people, and how do you 1 ; 1! intain a goveangtent Nobody has ever done that before. It 1 1 1 I is a job that ;Eates aL..1 your time and attention. And this in !f i fact has he3d China back. Maintaining unity is slow work. We f dosn't mean that there is an element that is interested in 2? can be sure of one thing, that unity of China and the governMen; of China and the situation in China comes first in their considerations. They do not have a country which is oriented toward the outside. They do not have a country which is dependent upon foreign tratia. It has no lifelines abroad. It Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 zix:;t 55h 234 . 1 does not depend on thic cz tha kind of commodity from abroad. e H Thera is RD stale trade from vh!.: southern realm, for instance. 0 They are self-contexed; they always have been; they cover enough lattitude north and south so that they don't need to expand for eny of their goods. G d .:2 ,3 C. '7 / 20 In this situaticn the Chinese leadership has to keep its eye on the domestic scene. And foreign relations is the framowork within which they try to carry on their revolution. The fact that they have the idea of themselves as a model for ether countries iJ an ancient Chinese tradition. They always felt they were a model for nearby countries; and they felt the: they were a model for Korea and Vletnam in the early days, and evzli Japan. And they continue in that rather superior train of thought, they are the center and model. This dace not mean that they have been able to develop the ;1d of overseas &subversion or foreign aid abroad comparable to the Russians or ourselves. They simply don't have the resoerces, and they haven't put that much into it. The prosPect f their doing so in the future is not very great. Mr. Whiting. Mr. Chairman, could I answer your question a bit? In terms of the Chinese nuclear story, I think the developJ ment of Chinese nuclear weapons is one of the most misperceived i and misunderstoed stories of this country. We threatened the I Chinese with nuclear weapons in the Korean War in the spring of, 'Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 56 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 235 1953. Presideet Eisenhower and Secretary Dulles sent nuclear threats to Peking in February and May of that year, and forced their acceptance of our terms. In 1970 we deployed, aas indicated in my testimony, nuclear missiles that could fire 600 miles into Chinese territory from Taiwan. It was not until Mao Tse-tag want to Noscow in Novembor of 1957 that he won from the Russians any kind of nuclear weapons assistance program. In 1958 we gave the Nationalists 8-inch howitzers on the island of Quemoy and indicated that they could have nuclear heads In them to wipe out the Chinese batteries on the mninland. The Ri res2onded to the Chinese demand and for years gave them important ingredients in what has subsequently become an independent nuclear capability. Weem we say, why would the Chinese go for nuclear weapons, uhlle it may be the ticket of equality that Professor Cohen hae eeforred to, but ie also has had an important atrategio response to our utraece c threat. Former Secretary of State rean Rusk said only a month ago: "/ cannot imagine a war with China that would net be nuclear.? If the U.S. Leadership LSSUMOS that nucloae weapons are an option against China, then surely China is going to have to develop some nuclear deterrent. capability at least against the bases in the Western Pacific which they can hold hostage against a first strike from us. It may be a crippled response, but it is the only response a self- xesp cting governeent would take under the circumstances. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 57 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 cannot peetenf. to know whether there is a military- 2. aoitplex in Peking that argues with civilian ecca o 1' 236 ;icanalysto as to how to allocate resources. Presumably there is a consensus. We have very little to spend, says any Chinese leadership, but the first need is for defense, I think the remarke of both Mao Tse-tung to dgar Snow and Chou En-lai to Jamea Reoton are honest assessment of the point I have their resoueces and the case for nuclear weapons that they would rather not have, but the necessity has been forced on thezil by oue ectivitioe and to the extent that Secretary 4aied looks to Jaean encourage the Japanese to spend more, and we provide h offshore peocurom nt or backup fee any escalation of arme, thee wifl not b any argument between civilian and and milita 23 24, ,,L that thn Chineza leadership will feel itself threatened and it first prioeity will be for deferiSe needs. Senator Proxvire. I take it that the consensus of this panel is that the extent to which the Chinese commit their resources to defense or to military purposes or to aggression, potential aegreesion, is very much a function of what we do, to the extent that we seem to threaten them by our activities in Taiwan and the Vietnam War and elsewhere, they react by increasing their military commitments. And it is very hard for them to do it because they have an extremely limited economy with enormous demand for feeding their people and clothing thei people and housing their people, they have so many of them, and 'Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ars 58 f Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 237 of coarse, this ecoaomy is one-twelfth as productive as ours, aderatend. would like to aek, though, Dr. Cohen, if you would agree aith what aaoms to be the views of Mr. Fairbank and Mr. Whitingi 3 I although paleampa X have paraphrased it too much, that the military j is many not a factor in the same way it is in this country. 7 we hoar a lot abeut the military on mainland China. Apparently ir military establishment, however, occupies a somewhat 1 th different role in the society than does the military in this co try. Can you d scrit7e that role for us and can you say whethar China is in any sons a a militaristic nation, is she daminatod by military Values, do military requirements have the hit priority, is her aconcmy determined by military needs, that is, do the military get what they need first and then what is le2t in nada available to the economy? mt. Cohen. Mr. Chairman, first of all, I want to emphaa what I have said earlier and what others I think have said here this morningc that China:3e policy is very often reactive rather than active. We often think that they are taking the anitiatives and we are always responding. But actually the way they see it it is often the other way, but obviously there Jai al dynamic process at work here. Just a2 the Soviet Union cannot afford to be exclusively 23 II cencernad with what we spend, but now has to look incteasingly 1 25 1 to its onern about what China is spending ant what ;Japan Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 srs 59 'iApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 110 will be spending, I think we have got to understand that it is dum d net a bilateral world for the Chinese either, that they will 4., obviously take into account and to acme extent respond to el! reductions in our own military expenditures, but they also have r j to take into account that they zee not confronted by about 238 800,000 fully armed for defensive purposes So.4et troops plus about 200,000 Mongolian troops on their border. And no matter what we do, they would have to maintain or obtain enough cepaeity to guaranteeaome modicum of security against that threat, apart from any American threat New, specifically with respect to your question, I would agree with the other eitnesses that it is very difficult to haw a ceaventional kind of separation between military in China and political in China. Piret of all, the Chinese are at a mudt less advanced degree of economic development than the United States and the Soviet Union and therefore fenetional speeiali- zation and departmentalization have reached a lesser degree of attainment there. But they have ideologically committed to prevent that kind ol! departmentalization and specialization. Ti- whole debate they have had about whether to be a specialist has downgraded the role of specialistseincding people who are exclusively military specialists. As you know, their slogan has been, politics commands. Although all of these people come from a civil war background as military leaders, they are not exclusively military leaders; indeed they properly perceive tekpproved For Release 2002/06/18 : CIA-RDP731300296R000200150005-9 ti Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 s s 60 0 239 the failure of Chiang Kai-shek to govern China effectively and to prevai3. in the civil war was largely due to the fact that hel was exclusively a military leader. Chinese Communists have been truly aware that if you are going to run a society you e must deal with politics and they are aware that politics is thel 10 - 15 Arlp !o 21 2.i thing, and the militaey must be the tool of implementing what your military goale are internally and externally. And I think that is the predominant kind of focus that they have. Now, withospect to their goals, I think strength at home is slightly critical. Just at we have seen how we can be debilitated and wtakened by Out Vietnam Witethey have no illusiche that they must bring Up the standard of living of the masses of Chinese people. And I think the reporters who recently visited Chins from this country have Made this 'eery . clear, that although for the elite in past Chiba there haS been obviously some loss Of status and deprivation of Privileged . position, that for the overwhelming masses Of people they have done an incredibly good job in bringing up the level of the standard of laving. And that cannot be ignored oven in the world's most retaliatory internal syStem., New, as to their defense needs, I think there are prefeUnd disagreements within the Chinese elite. That has been Clear, it is becoming even clearer; and even the small group that hes been running China in rodent years seems to be fractured. We have just been reading now about Chen Po-ta, who is apparently I iApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 - Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 y o,e1.C30 :-1.13re rrly otr i c-,e Llavra state. ana t77, L?c o look incxeasingly li%e the 24() hz:ve very Eexious -- it is not to oay thcy defense must con before anythiug, ? ticin ig you do it; do you defend China thigh 7 , mizry mre kollcAng, say, the Soviat -, .-, 44.4,'Fg-1i r=:.-1:e.,, 4.1.1-';'Dc,11 C^7,tilatVld 1,J .0., ,...?-1,-,,- ."--.7.J. .,,,,,,?. _ -7,7 i(,:..'" "?A of vic--1---1 11 1 -*i,..:.!,:,.i,s2 Do v;,-,, a.,137,=,,,1:, a primarily desnsive pozture on the , , _ .. .. , , , . - . . . t ,,,..ha t,.,,,,,,:-,,,,,,,...; c...-.,3vincT .0ana and tima to th,'L., lrvaae:;:, al., H him o34, in, ynn will eventually take him :7,1!:1? Do you , ..? :. Y',??'-'-?Z.','.r-14''' '7:S:.:,41 l''::::!il '..:1;:',1 ,aeAcd? fonwzrd strtegy7 7.-hse .., A ,.., ?, .... _...... . , , , , . i ..,--....--:?,f,,,,....;,:,....t t?...t.,......:z.c..,;-!?.:;?,?::....,?.....,;.,..,?-t-.1..: ..,,.j.l. L.-...il'....;k:: '17.1 r.....,- to :::,..17.:; cp.,10t7, 'LA C.31 of lv:!?,?-?,..' 17,172,,:',-.3-4.??,,, Y1%. evnvrax..,?onco. the Qh.inere elite has really been fracJtrxed. then R2 a group that obviolt.31y has 6aZfencos of opirtion about questiontaboUt " ? we EZ.4.1 lloud have differencios of opinion. ;And 'within vou have cl:fwzeAt kiiJs of allianc-s-s in ter04;.:Of the little, L;urprisiagly-little, about4 HerL rt e at the top, and also how it funotiens - c rIt tW.L11 1oca.1 H ;1ator Prori., Both Brofegao2 Cohen and Profesor 'a.itir? haveabout the 1J in in the voi36Y2ing, 17,2,:efioor Cohen, that the U.S. ? r ; !! engaged covel:t in Eviyve.-.7n, in Tibet, and H, 'Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 , ; Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 241 Chin csz ?ifespEse 'Lhat has basnlabe1 aggression yee7Ts? Pr,;.74fss,,,1:c Whiting's stritement provides more 'v own. But .7". would agree tJa what we is to foster --I an. not say.Ing we axe alone W3 Lcd looel co.Jpar.7,.tion within the area 3.959 th..2! r,i_velt of the Nhamba trib 4 1,1",c c,7v,-,Irn-Leat of T_bet. Now, I must oay that t vea-: k7z.rve klen rclTeatod ns stories,. Hews Service; I believe it La!,72:43? esmlbing in taetail, namizg names, r '11 wIlo were sending these Laos tribesman , ,..3 SL.;.!.,., Cl. P.,:p.:a 4 ,,)fi: t?,y,:'1 'gvincipal people was named as someh, ? 1"..4 .. ti . , l, ii telt.= 17; i,,11 the 1959 operation against Tibet. Now; , - . , ! 'Y-,..u.atoly with 3 high ,7,1dministratiOn officiels , J i , ;i di,.Ao4a it aLe.1 zas'.2Alred ma the Central Intalligenco Agency ,r;,-.3, Alw.: w:,,s 271.t.) bn31,.. fcir this, these were aertainly reoortarct , 1-1 Vi , .. . ..L;..f.d to nit LIvo,ud Laos with nothing to and were obligated siluoly making thi3ss thir,4--s up ? , a yeaz ago;this was sln 1:.1.1cze.) cl:Loils from LOW; iUtC4 Chin& weroinot, Itappcniy,q, r2Jf-Lurda1ly dsntial bani2; prbly. uo 1.1.,z;1? hs I me!ntioned in my st!it(imsnts all s..11.3j.:11 the citionz that w,,,3?...e .r.civer going o:ti :Aara been And '1 titha3 vory? important, that they have 723 . Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 242 aael I Lr forff'',L0 and hope it will be a continuing 1 ein't w.!,7 can afford to ignore what China 3Jre,7, pi1ic haG had concealed from it, that wo ongojinc: in a lot of hanky-panky; we have inter- 1 fcr,,fi with the Lffair,-.; of other countries. Just aswe wouldn't t:,)n to ;qo it to un, t17,3y don't like to have it done to :1.thi 4c' a reciprocal kind of interaction and oiar now pel:!cy toward China will involve a ceasatioA Q actri. think they may, percoiving a also out a diminution of their efforts, haven't groat by and large, to subvert their jit:-x)rs Sc,natar 1-.?reocAre. Professor Whiting, you have spoken covext ,---Jtivities aimed at mainland China. You ' ,i , *?I'l Ila,- 9 o! -;z.4z17.- ::,tatement that "there is a credible case ; tj '',"q:11' n,,sr:.; and,,:ovzr:: U.S .-Chinese NationEklist activities have Clrina;!Je Cc,..LItnist security concerns, resulting in hAOtz).:1c,2 military: 6sployments toward and across China's 11 .' t , To alLke o11,0! ln accv4-3ation stick you need more than just & 1, h ible case, i'k: s2,7,:zo to me. What you are saying is that we , k` 4 i n . 17, i01y on7,/^keii the Chinese into enlarging their , ; 1 military capa:oilities and that we have then used those enlargedi ' 1 - .; i;` capabiliti ,!is :,in ,,sxclase for incraasing our own military ,- i .9nvo, end ,2ilitry ,,,z,Astance activities in that part of i 1 [Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 , I Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 J:k:s 6i1 i3 the proof for this accusation? 243 Kr. 1.ting? d:U-1 act say that ue did this iatentionally iTlouse 2r:aF;poace, which wa would then upe to justify cr .1 ,t 4,1,:tad:Ltuzco,,I nplaining a ceazsal relationship, not ti ? k a nAatinship wuz effective by U.S. design. We have arouzed thia. But I did not zay that we intended those respont*. u ? Til:et or azUsting revolt in Tibot think that any of the persons involved anticipated, for, atno-:mlian war. No do I think that those persons ' tnat i-tvolvad f%n the cov6rt operations from the offshore 1 inlieved that they would trigger the crises of 1962. Yes. But you seem to imply that by , -, , 41 ? ......' 6 l,.q tho3a ieti3n:?; ,;:e certainly should have recognized that . , , thi), aJill-A rc-1.7..)e.1% An ..,7(Le Chinese increasing their military , 1 and ITalitany reaction. Whitinc. art ae you realize, the government of the Un1t2S. lar; the left hand and the right hand not what c.:Jah other is doing. The operations taken ? t.11 ortainiy net cl:anked into the estimate cf the Department of Defense when we look at what th Chinese develop in airfields, air capacity and 2. 1li tryresponse, and than project that through time five yearel ti hence, and then aay, we must have this kind. cd capability in thz ayicsa. ; 25 1 SenaV= PrcYfildro, They certainly ought to look at it. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 hi , Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 , 0, 244 ceLq-,aialv zhould. Were it not for the t f1..72.ree to go into it. But L.of "7,igadier General Lansdale documents , corad hava gone much further than I ? .4 Pr,7aL I fien't want to suggest a .7.,.:mspiratoriat 3 on their K;,ert, bocause I don't believe in cr..aspiracy. I wa have 17:ne people in the Pentagon and they are well A;',.71.vA7,to.d, and thy doing :her 'acJst for their country, - a vny to,,:J.gh, difficult job. But it seems to te by t,1cj iiean?Jrioteimsidcring the consequences of their. - I by thr.. Pentagon I m,c,an the CIA, too pu?',', it i the budget of the Pentagon they seem c?m'cing a situlttion whet-3 it is inevitable that the ""It7 Yould thcjreact militarily,. and so they n7 e need a greater defense establishment, t?o ntc2ur resources frau domestic areas into military I! aeas. _ Mr. tti?h esZ:ablichment of the strategic busineSs ?:;) 4i ? In 1957, for ;nstc,rves; he never been examined in the context the Chise uze of their own air force in 1958. This actioni -) :foaction syndrene 1..arely is linked together in the kinds of .... ci .'.3.,efense deployment that w have made over the last 15 years in -, Wostcyn :TA aithEP-. bcen oxcusc'd zu3 exaggerated suspicions and unfounded And when the Chinese have moved it has ,Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ,91,awAs, or a 3.4.2n that cenly aqgressive ane initto 245 Mr. wc4i..1.4. (..!ould afid, 14r. CMirpt,m, it seeTs to me thi3 dynaiism which on military do their jobs, their very ;z*st anC as you say, thoy are not conspirators, they are patriots -- aad then othor parts of the government.do their jO3 th& vsmy bost but oparattng on a pluralistic basis this is the re0, C0,4: of our dyilamic expansion we have f.nen ao nany -liZferent elements that az doing their jobs rd .andIv.g? hasiness eni missionarieE, and everybody and y.,zeL-...,Isors, And as this e:Tansion goes alcag, it the ClinE:so with a .k.ulti-headed sort of hydra, in vhien arst there iu this hind of expansion and then that kind;:; it is ocntrol; e do not expand under control in this ccx.ntY.-y. And 01,i3 cE the things that we may find in the case ,. ,1 uZ Cl.tina in a littlu. hit of ho oe in their system. They do have:, - , 14 a .c.,,er dasz'c'2, of cntrol, because they do not wish for ..; i.. -. 0 g 0 a pluralistic to oE operation either. Their business 1 '- P activity is under a degree of control in foreign 'trade. And ? P 0' ,1 1, ::',) li .., 1. .,i ;., .:. . i 0 i )1 Senator Proy.a-Are. Let ma ask you to convent, Dr. Fairbank on a very interesting observation with rIspept to ChinaTs agrimatural problem. that. YOu have uiven us tIm picture of a self-contained country is celf-sufficieat that sually hab locked inward during " 11 most* of its h1etory, .and to continue to if -4 0 i :Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 67 0 246 t c.,.:,sr,tml:!ohm.c,,It from wr,'.%hout. That picture ar%:i.cle in Lusiness Weak, / think, ahi very p.,-1%-otlir, and very intoresting, soid this: Ahezdi however, economists see some .for China. It is hard to see how an r, C".%.f r..?1,1 3n agricultural output can 14-,E.t sustained Ch31,ese yeilds already ar not much Yi .hc'-.;s7;. in J,1::;,):z.L in the next decade or so the Chinese to I .serious food bind again. In the past f s.Adnaumption has risen from 2 million tons 1 ; r:i1M.G2 In Zhe ne%t derpde it will have to i * 50 wia.1.1 CO tons a veer fas- output to kespl 5 , it N07,U11 (51,(7,Qth6 t+ Dzpartent estimates that even if . _ H ,\-,,cklologv could b*, brought- up to, and keep , Hp. th:;.t of th2 U.0.0 which is utnlikely -- the:best it ovwr tkvr) 50 years would ka to miltiply farm outpu4 5 ?tT0c. Tito 7.),72,. Csnsus Bureau estimatesthatdUring H prIrio6 pogulaUc.-1. will triple.." ti s ciives then a very favorable assumpt On, bepAase -) g rlortainly ant going to be able to meet oet:standard. - tw, r3c car aherltd of the Soviet Union and China ii our outp-et. , '2tose grin statistics pose the danger that China will ' iouner under the wo.ight of population. To date.?-Poking!s Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 247 Gn pcTulatit'o. 31t3 been eramtic. :Lt first 130.hed a f,?,i1v-p1aaulng program in 1956. That tO -0T:;711 LeLp Fcruard. zavived ir 1 1L.62, oRly ts elown FA.ga:"Il during the Cultural Ravolutien." 'Under the:-Aza oa-cumstElnce. China is certain to remain intano and mounting social and political strain. Stble growth .ppear to L,A,a difficult to maintain. Some Q.2T.6,Ltzi, in fact, think that China mut change so fast to sl..1Kviv that .--?A.t :x.17Alal.to remain in a permanent revolutionary. corAltione contolli2AtIc for long oaly by fanatics." Nr. Tht is a great dope story, and always the lavel la:Lca so3I.1,o7 debating, where they take a ? ? ? ; vhiQh ravs a p-:?.ulation will triple, and then quote it as a at statistic ' H Let's forget about tha population ? triOing; let's for;et about aay likelihood t*.lat they can - .7',T,cIeusa their L,,:::;rienitur&I output e47. m,,ch as it projects ,111),, ;T:It p7L'. It a simpler way. g n:.; it 1.21o.s.sLA:LA2 i.d..zoblvm of E.roO,ucing enough food fox their inore,FoIng 1..or..n1ation would put them into a position ') k ; whare the?q might 17.3 able to do it, and therefore their previous 17.1?3tory o2 internal coacern might turn to looking outward, and , it; ii ? ,1 ? supple.s$ ? ;I Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 mnay c!c'Intries have done in the past when they need kb4o, ma 1E1 to engacre in military aggression to get ! , Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 , Farbank. 248 Ib a poi-ate here. The first nat the havci a very serious food supply pzoblem, anTK a ;?1,F,tion. inomase which is formidable -- while rato may not ry high, it is such a big be, you get 0 million e-M;y-t a year, or something like that. The point is they tolo shown or,0ereh1s capacity fo;: reducing the population 1110-2-oaL..2, ratc3r1, r_h,y have now a progrcm that jdoan had of free: G-Lo-:tion clinc;; &1-1f. latex a9a of marriage is being encouxaged; a,,ast -.7id of the idea that you have to have : for .:r..,.ztx:Ity. tiais jfi the first thing that Till Durdelli adW.,.;h-ic going in corresp,ndents have reported. They have und connida:en7:je evideoe by talking at random -- and this tTcacn't s(7.,m to be a line that they are being fed -- that payttF4 Aler don't need large families as they used to for old becirraze they do svete:.u. T.;,`? m.c&ect: of have a social welfare P course, but it will remove the la-tataltivo for 1-z.vy population production. A socsna io that even with the best effort to reduce' la.og-s-o7,1, ,..1? the fool: supply, they are going to have a i>augh tri. And wh2ther they Are going to rake is indeod a TIcsUon. Ulti,IA we loot at this from the historical perspec- I would suggest that those countries that have tried to cx:Land for avA sz.pplv have soldom solved their population lalm. You your extra people. You have to. liekpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 249 th to You. c--..ulf5n.'t begin to export 20 pe?lo -a of f,;Lonrse. AS you develop at home you n,ty ant, te,t; aroad, L1.3?,; th3 implicatiaa that you have to er2anariiliti1v;t:t a non ::euitur. It is an idea that havehncL 7!''e Japanese, for example, ahen they had 70 2r...1t that they we: stranded and had to expandL hey ICU i.i1ion at hz.,e, and they are expasIding %ey bo.t rf-t militarily. think T undou!atedly went too far in tie. fk.tur-.:1 on th;s. (;/n on.ly Limit ourselve,; -- it seems to me 1 snly progreas that is helpful and useful-- . Zenator if I limit my questioning?to the I WC o ruch to /earn in this area, so 10 or 15 or 20 yaars ahead, let's confinc: ?:-11c-; inlr..ediate future. 1.4%, M076 jAZO thi:3. f: hc,vE ?,????. co swiftly in Asia in the past few weeks A =C. in the ntzat dcyo ?,:hat it is hardly possible to keep up , ; thcm. if onys' clear up some of tho confusion a is vac. 11 ' ) CI First, what is the significance of the recent discussion ;)etwoen Wushingtoa and Peking and of President Nixon's ' - p 3 cnnouucod intentions to visit China next year? This is a very !: !..):road quqlstion czo parhaps we c:an restrict the response to the signiaance in terms cq uar ralations with China. Approved For Release 2002/06/18 : CIA-RDP731300296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 250 us really easing after all these v,7,,rore Do r.w. Eao repwed trade and if so, how large 1=7.a don't think the trade is going to grow .Traativ. al-cd tda with us if they can possibly avoid it. -H ".r both rIre convinced that they need contact - c:a,,Jh other; and it i;i; mainly because we see ourselves the Chinese will remain diversified in a !nulti-wer world. Th ,o two superpower confron- I 3 passed; it is now multi-power. Thr::4444 tl-fat is a factor, and Europe is ' 1 a :?.7.?lot.ol:. An-3. China wants to oome into the , .:17c-power sitntion. An,q Is possible i ,-0.w.cg,ntration of power and not a super- 2Z1W countries fuzz*. nAatOr :PrOA1:: You wanted to comnent? '0: wanted to respond to your last, three question's, Malrm,Ing didn't want to interrupt you. 1 ; 4 4aw you -4ceeping notes. Mr. Cohen. elft3: dealing briefly with this last question, I? would agree with Professor Fairbank, our immediate?interest tz'adc will be the: small. And thdre has been a?study 1 pthlishqd by the Vational Committecl on U.S.-China Relations that tries to go into t.LA. in great detail. The Chinese have said, Cz cos, that Ilyje therc is a noraielization of relations Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ..?????????, ?????"""` I Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 72 ' 251 7:),ctvcm the U, S, Einl China thare wili ble no direct trade tween. the tWO C7:17i0E1 One d.esn't know whether they will 'Icatinue -- I hryoe th:71a7 won't to adhere to that line, becaus4 ? 4, T think that 0,irst trade will enhance businessmen's contacts- and interest Lh 4,'thina and will have " evolution o': China . H is nsw an enliFihtened result on. policy. Bt certainly indirect at a very modest level, and will continue with the help oZ the Pef,ministration's welcome change in China - ti gencla:a:Ay the Chinesf3, if one can credit Mt. !!! v.ntenoiva il.ltsrview published veoterday in the Times " k,ALO tahlavfairly mature, relaxed posture a here, recogniP;ing that we cannot change overnight, bUt indicat-i that their F.laj goals will be ones that they will Continue want to atAnp and that we have been in the wrong. by and V ie aad we cioillg to haw, to do some changing. 1: think - t; tzt it s laq to hz;t est lesson to make the American 4 awa.ce o?Z, , - 1,loaso there is a good deal of need for chang6 - i w.,,licg, :-.!-.1;.. v,-,f, .:.,:XiiZi C.21.Ct 1]:.r;) 1.4-ti aluoh more forthcoming than ) i ) :1 ; '01,1x1e2s the i...,..:I.Gtration!is yet aware. , ; .. i , , Viola, I won: 'ii:!. that we also have a vary high priority , i ' i.a tn1hi,1 with them abvat nuclear weapons. And 1 .) i _f:tc:., thwe g,o-Z; -i: 'Le reopmeive to their recent suggestionsd , iApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 i raEr l&; but tocoine international concerns that _ mi previously mentioned reference to a--,Wax6 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 252 wd hnsylA to diazz thiF problem of how do you control :Juclear "A. 'rimy cleim they don't want to be involved in 4 4 a discussio wi::t 041y the nuclear powers. Obviously a discuasion mat3n3 12:1 or 330 odd states, many of which might be minuscule, might not !At the best forum to begin a discussion of nu:clear contols. But we ought to be generous, I think, in caming back with a ccunteroffer. Wo are trying to make the 1,)s- of soirs ialtiol discussion, but we have a very high priority interest in this subject. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 STiel/j1w fiws sr5 (.; Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Senatr Promairao 253 Before you leave that, how about Cin, z capabilitar; nuclear power? lr. Cohen, when will she become a full fledgoi. Well, in the Soviet sense, I don't think we' can anticipate when China will begin to be anything like a full anticipating, as my stateme0: fledged nuclear power. aat we are ? I states, that as the 1970s unfold, China will eventually be 1 , 1 9 1 '9 1 11 VI 11 i7,3 control 1 i GAO. daploying ICII:is. And even though this may be a relatively small capability, it is going to pose increasing concern to US. But there Chine 4". 47. 03,"3 24 25 are many other reason, of course, for Wanting cooperation, And I think just the environmental problem alone is a more long run but equally pressing Senator Pre=ird. You have referred to a no first use pledge, and Dr. Whiting has rcderred, I think, to nuclear 1.17es 3ones. How can we do this with the Chinese? We worked out very careeully our agraement With the Soviet Union on the teat ban. And that if CCUITIO is subject to inspection, and to determination on a unilateral basis. Wa don't have to wurry about anything like that. But a no first u-Je pledge, what would it really mean? How can it be enforced Mr. Cohen. It All be pledged by each of the nuclear powers that it will never be the force to usa nuclear weapons wider any ciremstances. To them obvious ll- it has advantages. Lpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 254 They have not raacliec our e_egreo of attainment of vuclear capal- bi/ity. May aoula like to feel secure against? particularli not from th US ow I shocld point out, but from the Soviet Union -- a first strike that wouA demolish, for example, mnny of th..Ar own ntIclear installations in northwest China. It woald mean that ac matter what the threat, no side would us tr.'Iclear weapons, that war would be conducted at: a conventional! level. Senator Proxmire. With the -- what is the quid pro quo, w'lat does the ti5 ?out of it. Cohen. Well the question would be, firat of all, ue covad link any number of things that we are interested in to what the? Chinese ere obviously interested in Senator P,:(7.:ti.M!ul:G. Such as DnoOen., one, for exatple, we could auk for a reduction in conventional Chinese forces, Since we wodld see that: we %mad be at a disalvantage if we gave Up our nuclear strungth while we are puiline. our conventional forces out of Asia. ???? ADO And if we continue to be codserned about Chinese border Senator Pr mire. 116v; do we enforce thatt It. Cohen. There would be, for example, some opportunity t would AS5UMC, if not directly, by US obsorvation to verify the anocation of Chinese expenditure, perhaps through othea. visitors, thrcuh ca:o'langes of information, and vie also tioula Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 4:1 7 9 i0 11 1.0 14 13 IC 17 ?JD 21 24 a.F.3 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 255 1 installatic,ns o.i! a wilitary nature through our satellites have, of GoOrse, continuing observation of Lew Chinese thlth are g)Ing; above Chinese air space. And we have a whole panoply of intelligenoe gathering methods apart from any forma method we might be able to agree with the Chinese on in terms of inapootion and control of any agreement. So I don't think we can despair of our ability to judge s-,nat they are making gross changes according to their preScip ,on in 3:d,e7: to bring abwt some forms .P arms control and disarm- ament. I think what you say -- Senator Proxmire. Do you think that that might be a part of tho Tn bringing greater stability in general to Far E;a,5t. Mr. Coholt. think it would be very welcOme. Senator inor.mird. If they reduced their forCes: presumab that would help us with the Japanese? r. , - 1 Cohen. Ono would think AO. And certainly the JaPene d, not being nuclear: and very Vulnerable beCaUse of their cOnfi ,ed space on the island, would cirthally welCome seeing China boun to e first no use ploage with respect to nuclear weaPon$L So I think there is a lot td be talked about and negotiated he-e. And I think we ought to respond in a serious way On that ghest New, With respect to the other problems, I don't think we should let the record stand as it now does to togOst that becauze none of us believes in a conspiratorial theory that al Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 if 1 2, 1 3 4 11 256 wa have is a vision of the US cr(?vtirnment rannihg a foreign policy through 1%Illtj2le arms w!th no checking or coordination at the '..op that wcw:e. help to rez;train parAcp covert actions by 030?op that -aight be inconsistc-nt with innocent actions or estimates by another group. If th Pentaqoz ratpors tell us anything, they make it clear that although often this kind of uncontrolled hydra image may represent in cne portion reality, that We shouldn't be 1 naiva, that they also show that on other'coCations there has bean Conscious progranming and solleulinl of covert operations and link,i.ng them to the public aspects of 4Ur operations at the very highest levels of government. tbat id What the theani cif all the Bundy and McNamara and MoNaUghton and Other thethorinla Ut I is. ; 15' / They talk ,alout doing these things ih foreign bperations A T6 and blending ti d into e2t schedule full of ?ropaganda, Covert i i7 11 and overt oParations. This is really the ,ay international !a il operations hava bean planned. I think there is more policy 11 10 li control and sophistication and direction uiing Covert ats well 20 I as other meand than we perhaps care to realize. Zut that 21 2,2 23 24 2:3 (seems to me to be the lecson of the Pontagn papers. senator Proxmire. Would you tie that in with the specie luestion which wa, related to the situation in Tibet, that we deliberately ated to provoke the situation, in Tibet against t.ha Pao2l3s Rnpablic that they in turn iicuid increase their iNpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 257 milital:y forc2, so that wo in turn could then say, look, they increas:&I t.hal.r military force, we have got to increase ours, and therefore i:^ne Pentagon gets a bigs:er piece of the 1 pia, would you go that far. I M. Cohen. That goes to motivation and intent, and as I Mr. Whitinc acid, different decision makers and people who fee4 iyata -- Senator ProXmire. Then you go back to the difficulty of pluralism rather than the conspiratorial theory. Mr. Cohen. Certainly pluralistic intent. X don't ? think that there asIon't Some people who don't have that intent otle ansuma that the cOaapiratory always conspires for unpatriotic raaols. Senator Prox..lire. No, we had at specific question, WTA this related to to Peatai?on's effort to get biggiur military aopropriatiols, is this the reason they did th1.4. mr. Cohen. We will have to atlait 4 Mort vigerouS Congressional inquiry into that incident than we haw have. Senator 'Proxmire. At any rate, you wouldn't dismiss that? mr. Cohen, X wouldn't dismisa it. I doknelli from Other operations that we conducted against China that peeple at a higher level have been alerted that wc are conducting covert operations against China, they have explicitly lied in public about it, and sme a these op3rations have been revealed. Th ,t IApproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 3 4 7 13 0 11 I 1 23 19 10 21 24 Ican, 5.7aci,tcr a cornpazab le kind of economic and political and so ia Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 258 w.:31.1dnit shock me t 11 if that happened to be the case. Andl what was the Iiay of Pigs .if not a covert operation that was 1 okayed and approved at the highest level? Wd know this goes oi al/ the time. Senator Proxmit:). I certainly don't argUe, anybody in th panel or anybody who has studied our history would not say that %N) don't engage in covert operations. That is what the CIA is all about, as X understand it. And many people feel that we have to, including this Senator, we have to engage in co4rert operations often. What I am saying, howaver, is tha motivation is very import.ent. Wa eugave in covert operations in crder for tha fienl:agon to get a bigger appropriation, and they create a situation where the country tiiirespend by. increasing its military ferce so that we in turn will have to givf thcm more of cUr restUrces. X think that is quite different than a covert oration tO achieVe:00ms kind Of more . . specific and direct purpose, Which I 44 Or iliaY not aripport. Mr. Cohen. Let me go on to the last point, Mr. Chairman. It seemed to me :Orofessor Pairbank was quite acCurate in dePic in the measurcs the ChiAese have taken to get birth contrbi wider control, if yo. will. T think we should realize that because Chia 's intQrael oysten, now reinforced by the cultural revolution, that China car impletvemt whatever Measures it de appropriate much more effectiVely and rapidly than, oak, xndia 5 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1 q 259 1 D 1 li problem. And the airte.ocz do appear to ba looking some progress' 1 2 1 in in2luancing peo.eo judgments about the variety of ways I i o 1 o II that should be used to get birth control. 1 I Also I think Chinese agriculture seems to be on the road to improvement again after a period of difficulty. Some of our reporters in China seem to be a little euphoric about it. They talk abont China being the only communistic country a to have licked the agriculture problem. That may be a little too strong, even if it is cast in relative communist state TO comparisons. SUL,. 1 think progress is being made. ?1 tut I think ons of the mo%ivations of a leng run nat4re that china may have tor voning in to the Itoited Nations, for 1,3 cooperating in other wayo in ocoromic Matters, is that China nts to improve itz fertilizer, China wants to improve ite rice, and I think China may oven need capital and technical aid, although initiclly it mi4:47ht seem unattraftive. i7 t In 1950 one of out leading economists on China affairs, T, at that point, when I asked, is the Chinese pattern of SO perc ni %re with the Soviet bloc and only 20 percent with tht rest of the world like.7.y to change, assured me that it Would only 2? change to increasingly within the Soviet bloc. And yet when 000n within 10 years how it has absolutely reversed, and now it is SO oercent with the non-communist world and 20 percent 24 with the communist world. And similarly I think we Shouldn't ondeoestimate Chino's potential interest iL trying to attain a 14 23 pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ?'" t 0 20 t2 20 21 22 24 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 260 higtr:ar cf cononic developmertt throngh forms of cooperat.on perhaps evel, with the US, only on a multilateral basis. Bat Chinese have real insentives to coeperate with us in order to meet this very problen that I referred to. Senator Proxmire., Mr. Whiting, duvelppments in China are also having a severe impact in the Soviet Union .0011. Mr. Whiting, Could Z answer the question your raised. 0eAatel- 2rermire. Yes. I am sorry. Mr. Mixing. You asked about trade with China and thc, prspects and implications of the President's trip to PeXtng. Covad I address that quostion briefly. I think thot beyond trade one must look at the developmen: prospects of ne main:i.and. They have taken same unusual :Aeps with differtmt countries in the past. They haVe reCentl. informed the Canadians that they will permit, indeed they will invite, C%;v1rIclirn entrepreneurs to come to China to install pl .t and factory equipment, constraints which they have never lifte for previous relationships. They have engaged in a long negotiation Ath the vest Europe power consortiuM known at CZNAG for a multi-billion dollar petrochemilial oomPle* in ncrthwest China in the mid-60s. I see now reason why we should concentrate so'...ely on China's capability in trade for relatinc the economic emergence of interests between our country and China. Indeed, turnkey projects, ae they tlre kn are most likly co be vented by Om Peoples Republic. This Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ? a- Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 261 of coveee wi . eequiea uertaie credit facilities, and indeed Expozt-Imczt Eank approval. We wondered why the Chinese seepect our de3ign on Taiwan. Yet at the same time that the President is plemning to go to Peking, export-import bank has (*proved a $93.5 million loan, approved by the Atomic Enerey Commission, for the Republic of China to have a nuclear powsr plant. Now, perhaps Peking thinks we aro going to trans for that $93.5 million to Peking when it takes over Taiwan, but I think that is rather fatuous. I think we foresee retaining Saiwan for a long time tn -ome. In a sense this is the left hand not knowing what the tight hand doeth. If we are tarling about truck enOilitkis in the SoViet Union while We know that the Soviet teniot poises a threat to seeue!ty of China, and indeed is massing troops on China' boraers, then should we not think aboet the Export-Xmport Bank's faeiiieaeint e truck construction plant in the Chinese ?copeee Repal,lia as e defense need against the Soviet Union? We have another possibility in the ecoaomic realms The Chinese have discovered oil reserves that are beyond theit foreseeable neede for the balance of the century, laivekh the etate of their eednomy. Japanue need for Oils is tole Well documented to require elaboration here. But Japan's oil heeds must be servized over long, valnereble sea leees and costly Lines o traileportae on to the precarious Meddle East. It is Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 jiw 10 t Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 262 quite coztcaivable thz? compatible interest between Chinese economic oil ckiwlop.mant ctnd tlapanese economic development; linked to :American prospecting and refining capital and produc , 1 equipment Invested in china, with Chinese concern and control 5 i of course, Wold show a new nexus of convergent interest in th, 1 northeast area, instead of conatantly looking at it in bilater term, or in confrontation terms. 2411 c?.i these are the prcepectt that are opened up by the President's trip, and they .literally do blow ones mind to get cut of tha couvantional language of the past. Sz.nator Proxmire, Along that line, of Cohrse,,developmen In China axv.4 also having a severe impact in the Soviet Union. wo c-.re all awarn of t17e Soviet-Sin? dispute and the friction that: exists along thE:ir common border. China also seems to ? deeply corwernod over a possible preemptive Russian strike aga;r1t Chiia's nuclear facilities. Hew serivis is the disput atd is there a real poJsibilitv of a preemptive strike in ycar vicw? t.Whiting. I think the possibility of a Soviet preemptive strike a)ant Chinas nuclear facilities Was rais ? Ws3COW through its own media, and by Victor Luri, a Soviet 44pported unaUst in 1969. So we do not need to credit ? cls a Cine phcntasy, it is a real possibility, and it h s beaa ealscd over the last five year. . I would not ptt A Prob hi.1:ty es.timata to it. That is violy determined by men in Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 263 Moscow and the shing 13.1ance, of eshimW:es among those men in mosecv a5 to what the risks are. I ersonally think the peak risk was in 1969, aad that it has diminished but not disanpeared since that time. It is because of this Soviet threat that I would disagree with Professor Cohen's suggested development on Chinese ceaventional force level. I think Chinese conventional force levels are mueh more a function of tha Soviet border threat, the subversive threat that the Soviets have manifested in Sink lanee in Moagolia, than they are a function of the external relatione of the US. And if I were hopefUl I would say that aeme agreement wild be in the forward development of nuclear ? weapons rnth-r than in existing force levels. ilz ceLzanot negotiate the .Soviet Chinese relationship. The is 0 g to be a funceion indirecte.Of our relation3hi0 eith 1- I that, but that it is eertainly justified in Showing to Moscow 1 Chin . And I think thiS adiinistration is not ekploiting -/ tl--- I it does not want a War between Russia and .China. 24 Ohat eill dee Moo between Mosoow and Peking after the dita ok Mao Tse-tung io anether question that is implicit in any co ideration. After Nao leaves the scene -- and that may be soon or in the near future -- there are ObviouSly going to be them in Moecew or Peeine who will eeek to revive it. / du not fear a reaeprochement between Moscow and Peking, I woull wic it over the prospect of. Ein-Soviet war. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 liekpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 5 264 And I thin z it toe is of genuine ineerest to this administeation. I would call your attention to the very sophisticated analyvis by a SoViet American. specialist summari I,ee in this morning's New York Times: "Only by letting the Chinese, however, built their own defenee base can they have enough deterrent strength to hold 1 off Any of those in Moscow who would like to take out 'Chinest: nuolear facility Senator ProXmire. / Will call: on Dr. When, I know he wjti to respond. But the prospect is for rather remarkable persona changes in Mina, notably Mao, but virtaaily all pf the leaderi 12 and whethee that will have a eignifloant 'effect. We can wegoeb a.ahaneo-, I think, in the 10 or 15 years with the entire top '..ayer of leaAeNship, Mk. Ohiting. 1 think it is important that President Nixon stcoaed in hi: endeavor no4 while there IA a secure ead autheritative leadership manifested in the personalities of Mao and Chou Ewveaai. X think that any residual problems that we leave from cur past zecord with China for a sUcCeteor regime to cope with might find a far less flexible situation. Certainly a man who is in second or third after Mao Tae-tung will have many peUeical problems at home to Contend with. And many of the iCSUeri that 4aW1 has put out for the agenda ee may seem cerious to a second or third stop euccessor in this LS. leada;:ship. I don't wart to eay that aftee.Mao goes China will Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 , ii 1 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 I /a 24 25 265 bs torribly insecure, But X certain/'r thin% that there is a problem there that is perhaps one of the explanations for this I overweening cult of Mao that we now see. Xf the cult of mao has grown in the past four years, it may be a function of their sensed belief that a successor governmeht will have call upon Mao's thoughts as a first claim to legitimacy AS you know, there is no national peoples congress, tehre is no operatins Constitution, in fact there in not even an official chief of state in that government today. Chou En-lai hao cexried on a good deal of activity as premier Of necessity, because this is ho one else th the governMental position to whom he can delegate thete responaibilities. would net predict the man or the section of that elite that will emerge over the next decade. But X would say that if a negotiatory record is laid down succossfully by Mao and Chou, that it will Certainly SarViVe this scceesoion to the extent that we make it a credible and confidential basis of our relationship. Senator Proxmire. Dr. Cohen. Hr. cohort. COu1 I ay that what Professor Whiting has correctly just said aboUt the importance Of striking while the iron is hot -- while 'Zhine has a secured, mature leadership could equally well perhaps be applied to our own domestic situation. The Nixon Administration seams to be admirably efiuippei AC.p7d to lake J:hatves iv, our China pc,licy than any Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 jlw 14 if's! Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 266 zucce:wox, becaue i, to has its doma,stic conztituency worry abc;.2t, and it way no: feel secure enough to make. Perhaps Mr.1 Ni %ch can face dow::/. -.he right winv. of both patties that are zow aQplying JItc.ueasing pressure against his China intentions.i Dut we can't be sur.,:. that any successor administration, particularly of the :)emocratic side, would be able in the li0; oe. past experience to muster a similar kind of counter pressur 1 Now, I apparently failed to make myself clear with rzr,'pect to your first no use pledge as to what we might get in return from the Chinese. I was addressing myself to what X brought up in my earlier discussion about the mnitilateral no Me) firs use pledge that the Chine have no4 suggetted. As 13 said earlier, we. can't ettpoct any bilateral alms bontrol. rosponse from the Chinese, because they have got the nussians to worry about. So we have go o have a mUltiIateral situation here. 17 And I would quite ag:me with professor Whiting's View*, I donut think there :14 hny difficulty at Al on that point. ;19 Now, as to the preemptive strike, 4 think it is a genuine threat. I think if von will reca/1, Mr. ChairMano there was 20 I. 21 25 a period when this country debated very setiouSIY hating a national shelter bnilding program against a contetplated nuclear attack. We wore and still are, I think, the tiChest country In the ;Toni& And yet we abandoned that Pregra*: tecaute of it psychological implication's, because of the Approved For Release 2002/06/18 : CIA-RDP731300296R000200150005-9 ;Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 141 23 267 msallocation rozoureas for oven a very rich country. ,Chin has undertaken a national urban shelte_ building program, it h= bean going or me for so time. China is a very poer coun: i r I This is a Aisallocation 04 its resources unless there is a creti- 1 1:le basis fo.: China to Lear the possibility of a nuclear strike by the Swiot Union. So / think the Chinese certainly are taking it very sericusly. It is not rata in the sky or somethikg they are makim7 out of whole cloth. 4,rd I might say that part of the significance of the Indian treaty with the Soviet Union that has just been concludid may be that it will offer the Soviets a pretext for acting ac.,;ainit China. If, for exatple, China should support Pakistan too vigorously in any Pakistan-Indian clash, I think us might find the Soviet Unicn chcmping at the hit to txerCise Some influence over the Chinese by threatening to come to India's aid ii the most demonstrable way. The situation is beginning to look a little like that in 1914 of Serbia and Austria-Hunga each backed by its own prominent more powerful allies. And this is & t ricns problem. Senator ProxMire. This morning's paper carrie0 a report of what is des=ibed as en "authoritative article in Pravda" exp eSsing concern that an anti-Soviet coalition might develop out of AMarican-Chinese contact . Is this realistic, Professo. Fairbanks. Ar. F,A7cbanks. I could read this aw the kind of counter )fp p rove d For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 7 flw IS ,?????.. (3 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 268 ccettintf. Crom all these countries. Tha Sevin,ts .ii i,1 polii way are exp::essing their concern lest we are ,Jonnvirinv against them. The Japanase have been expressin,' again ccacrn about or not consulting them over China. 1 am not sure there is anythiag more to it than that. It is politi47, pressure, Mr. whiting. Mr. Chairman, first, may I suggest that you us' the words "preventive war attack" rather than "preemptive 1 strihe" in referring to what mitht be in the Soviet mind, becatse V) 1 1 1 Y woald not credit the Soviet Union with believing that preemption, which p,Dperly dafiaed means getting your blow '7 '"), . I ak-tzak would be all about. preventive war is removing any futme capability of raising a throat. And I think that they in bore tha other blows come at you, is what this kind of an! nre striking so long in advance of the Chinese nuclear capabi l. ty it could only ba des ribed a$ a preventive threat. And ly if Mk. Abatoff.'s concern is there -- and if the French express. on 11 honi snit qui Mal - pense, does apply -- if the kuesians 1.,9 15 have t.nlen thinking about doing any harm to China then those 20 who Would bolster China's defense are in that definition anti- 21 Soviet, they are thwarting Soviet designs to blackMail or brut 1 ir punish China. Benatna Proxmire. You understand that they are looking a. 241 ;?;.55 it from tho 6oviet standpoint, that two other great power0 in the`vorld, the US nnl China, into going to Ywie a detente, or ir Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 0 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 269 d of rlat:icz,Ahip of aEolist?.1.no..3; of the kind you anscriO, our businer. there to clp thew .4,3constxuct their inCutvy. Nr. wotld look at thi3 in two levels. Soviet Union had not invente:d all of tha military ? builaxyl ar,!ort Crosn 1963 o, at ,u time when tharo was no credil:lc Cl'ineoe threat to th,l. Soviet Onion, then ore could say, soillethvls b:yinniug at oU ititire r Chine initiative initiative which coulti justly b?s. 5.;i::. th:Lnk that investmoliY:. 1 in militry encialaioont of Chinn on 0:4-a northeaSt 19 22 23 I nts,rthw,:st l!rontiorrs mo.ke thin a 9o2evic not a practical 1 ellarge. Rat secondly, il tarns of anit-Soviet beir ! collated as con?ntiten for infLasnco, that is that wezld politica a=e all :bout. .11.1%d i tt P viet Union has aa embzsny in eekiatg with nn ambassad r edtr.i.de =citations, obviously parity i. tha W.IliMVA the US vould d,;AcInd witherat being called anti-Soviet. I think ill the longt, statenent Mt atoff cOrrectly Az.4.7erued saveral kinds of gzoups and several kinds o trends in American policy. And he doesn't single out this one as the donir,ait elemnt. Yndeed, I think his is nophisti tad' reLuttal to craaar Soviet attacks to our policy which have comi oarliez, but which '.-kave only talked about theL=ti-Soviet cati as. .7,nd I am sitze that al Presidaut rinou and S'ocue.;7.ary floccrs crry ttloAr mave 174., Fakj.agc the71 axe vary mindful itekpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 H Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 270 id the Middle klast and alsewhere to assure the RI1SF- '9 were it io reasonable, but not where it i nnreasonable. Se ator Prolcaire. 3:Ie.::: me just try to gat a little blancl in tai y asking Dr. Cohen this. think a lot of myths about Chiha are being d spelled these dayr. and that is bound to be a healthy thing. But / wonder if the 1..endu1um play swing too far. Pnhaps China is no the vioiet :cme nation sow have be1ie7ed her to be. But how c you eplain China's role in the Pakistani civil war iFt a n2.ation that claims to be dedicated to revolutionary agails: of;pressivo colonial type regimes. The E L'Jditnis rebel agaizet the more pouerful and apparently repressive Wat the East ruthlessly crashes the rebellion, ur3itundrods of thousands of her ptople and causeS Ailli,-4ns to t1i CUflb, if we to believe thd press X'apoti n6, China uupports West Pakistan, how do you explain thls7 Mr. Cohen. &n& there are undoubtedly a nutber of tIrceads here. Zovt I would think one thing to bear in mind vir.n res cot to Chica's policy toward Pakistan is, the Chinese of ooursc are dedicated to wars of national liberation and sel uovoments. but they ate even more dedicated to rzational uniflatinn, to China's territorial integrity. th7;yik the Chilviscl ern vary careful, they are extraordinarily Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 4 7 f Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 271 ; sene&tive t", this Pakstan question, Y. thin% extraordinatily E3ensitiva. They are very Careful not- to act in such a way as I wc1.1d jristHy retro3pective7.y the Tibetan revolt against China or pzospectively ay need on Chirta' part to use force if.othei7 yleans should fail in the diiltant future against Taiwan. They don't want to be in the position of witnetaing and 1 helping the Ealkanization of Asia through supporting self &i7-z-rminatica overnont that would destrey Pakistan's national g unity, China's national unity, and perhaps others. So 4 I;I think thwi are baing very careful, apart from other reasons A 0, 1?9 't70 II 24 I 4.4 thv.t they hiTwt, AcIaL.9w1o1e question of misunderstanding wi Sn-33a, the diffimity with ilho Soviet bnion. And they are als plRyinq ia this azpact couvontional kinds of balance of Power politica. Cenator Pro=axt. Maybe to our eyes tht it tion is mor horriZying than to the eyes cf the Chinese. And they may be more used to or aapable of tolerating 4:ho kind lf violence we rt.:ad about., nut we have the incredible atrecities, and as I say, tha wholesale durdar of hdndreds 0 thousands of people, genocide. Mr, Cohen. It iv a shodking thing -- Senator Prozmi.;m. To support that it stems to me it beyoJd I would agraa that the break up of Pakistan woUld be uni!critultaL,e - would suem to tae that they can take a positim that wolAd bring as muctl prossua:a to bear on Wet Pakistanis Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 In Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 272 eec,t, in this Iznd :If extermination without at the same time supporng a separation M. rairbz--ak. Sic, they are not giving arms to the Pakis tani government: which is killing thclse people. Senator Promire. That is true. And we certainly are, according to everythinl we can deteline, zathough the Defense Dope:I:I:ma:It has denied it to me when '4-ecre'cary Laird c'lt up to %clotify befare my subcommittee. Ent I think the doclamentatim Is pretty clear nlt. Cohea. Wo ha Te got to be aware of their extraordinar.ly sovitivity to China's borders4 to its territorial integrity. Ve.cy have livud thrc.ji a co-called century of hUmiliation in through (me protext or means or another Japanese power 4 has sought to detaoh from chin. various .ortions of China. .0 china communist revolUtion really came to power on a pia.; forill of restoring Chinl's self respect, its equality and its tcrvitorial integrity, They are not going to be begUiled 13 , by sicvms of eel? dclt3rmination, they are not even going to b.ink 10 , trcmanilous, bton?:cndsus slarighter within neighbor states 23 1 that are going through their own convulsions, because they 21 fezIr interferonce by other states. 22 " And that is the principle that takes priority over other principlzo. Senator Pronmire. How does thvec,ten C^raina? Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 the sc-...paration of East Pskist ) Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 TAK",Ccthi 273 -I .-2,tt,)4.- '.:fskIra, a X have indicated, by prc(i(dall by ,vilalog70 becciuso of tho Tibet probl,sm. You remenba.7hc th um-Ad ai te,:ribly upset when China put down by fol:ce ;.he relolt in Tibet. The world was vary concerned cbcu.:. what would happan with respect to Taiwim if the US shoul remove its d'af.,:!n5e ctrert. It it this ly.::ecedent. I think there is any direct security i.-7.terest that China hal the co!V:inuet2 iLtagration of East Pakistan. fortaZ:or Pro3tmir..1. This isn't Chins territory as Tibet ma/ have been. East Pakistan, it seems to me, if separated wcraid rapresant a lessor threat. Y'. Cohen. Elactiy. But china is not going to be in tha p sition as I tried to say earlie*, of supporting the Lroa%up of a natio%al entity according to thci principle of lf determination, because they see that as justifying them callin9. for Tiet separating from China Taiwan separating frola China. X/f we use self determination highly selectively we can usa south Vietnau to .,:gue for our intervent%on there. I think as they see it that as the Chiang KU-shek forces lose grocnd in this coent%ly the Chinese will shift t14eir rhetoric fzt supporting the Republic of China to sUpporting self determination for the people on Taiwan. We hatran t called for, self daterninati,m in the yrs we have supported the Chiang Ka4.-lht..?k regime becaust it would embarrass that regime, which 3 24 a5 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 :ii w 22 12. ;i Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 274 isn't baA ,:sn self determinatiol:a. But I know we are going t have sorne itOerest A it. Ana the Chinese have priorities of th.tgs just atrewe do. Ad nuiaber oee for them is Chinese territorial integrity. Mr. Whiting, I would like to place this in a different perspective. I thik that. ? the "pactitis" of John Poster Dulles aroused in Peking the -- Senator Proemire. Pactitis? You are not talking about P istan. Mr. Whiting. Vactitis, the use of pacts in foreign relatione as was dote in the mid-59s when confronted with a p4 - blem you solved it vith a pact. Ve formed SEATO and CENTO. We used Pakistan as a massivel intelligeeca effort directed against China and the Soviet Union from the faciIitiee at Pedhawar. China had had from as 17 1 eaely ae 1954 to 19S5 to respond directly and conventionally at a time when they were not in hostile array against India to sae how that alliance could be eroded. Chou En-lai made appro 10 I es to Taiwan at the conference in 1955. The approachee to eakisten were a little more oucceesful, becanse of Kashmir 21 i and because.of India. The Chinese tried to ride both at the a same time: the FrleA7hip to Indian and the friendship to ea 1 e.? ?alcitrtan. 24 Intimat3ly their border dispute with Tedia came ap and 5 they became .c) increasingly dependent upon tha pact against India I tkpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 j1w Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 275 t 'aut the ealergoe 0:!: their pact alliance as tacit one i 1 11 13 1 , - 22 25? ilekpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 P.1 WEL3 ao oug ,t,yr.plit alliance with Ppkistan. Once Pakzs romavzid intIlligance facility at Peshawar, the oculd e pcsf.tivo gains from -further cooN,eration with; thu We3t Pakistani c'overnment. As cn Et Pa%istan rebellion emerges, the Chinese betwael,q vealpolitik rlod toto3 revolutionary grosspol tik is a very na:-:d ono. Bat at this time and under the circuxstances that T.,ht Chinese fac., in the agricultural reva'ation, tbey seem tt) ba going 2o realpolitik. an vausA in a sense by your question, because in the past the nightTaare that IndiEn Policy has projadted would be ? a Chinese se:peration of East Pakistan, and alliance there with West Bengal oalmuaist party, one ef the stronaer forces, and illetesid a sap:Aratica of that portion of the seeL;continent of Assalli; end the Nacolites rebellion; and so forthr cutting I Indi;,.t down to , small part of what it is now That iS tiot whal nocr,:xxod. In$ttlad, Peking made the choi06, as appears to 1 pportJmq the Pakistani govarnoont implicitly' or expliditly rea bolitik, ou 1 hait7 been the choice in thin country, of grt$s or what I agreo with you is genocide. But i31ace it in this earlier context of the alliance 1 cDrisolation IAlich tze indead forced on Peking by the formation 1 cP enNTo and SEATO. Ematon I reali3e that the h4ur is late. But 4 jlw 24 '. i : Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 0 i 11 0 q have a few more cli.x?t,tions. ,i 0 J" ?, , J 1 0 1 :fact between the Soviet Union and India. This too seems to I ,. 1 I have been broui7;ht about, in some meas=e, by events in China. t ,i i China, of ,..-,our.se, haa sided with West Pakistan in the dispute 276 Anothr eNtremzly important now development is the recent! J ithEast ?akistan .?,nd India, as we have already mentiOned. 4,7*. 23 24 25 1 gomo rather hard lines seem to be forming here, with Russia ant. India on one side and Pakistan and China on the other. We have taken uo formal position hut we have been sending arms to West Pakistan and or gowilrameat seems more friendly ' to it than to India. What if.4 the significance of the Soviet- India traaty aad what do you think the US would do if hostilit ez broke out? And by the way do you think persons in this count zight soma day ba ask.i.ng, Who lost India?" Mrs Fairbanks No, X don't think no. We don t have tho a.rx nt abov. InUa that wa have out China. Somehow it ii a different co T. think this Not from the tndian side seems to be taken -lot au a vcry heavily military allianco. It isn't in the mili alliance tlr's that ig CUttern!Lir7 . And the Indians May well fnel that th:Is is jcst friendship, and the Russians are helpin' In other words, it 6,oes not make American aid and American relations any less easirable or feasible. Lila so while it- may be a straw in the wind that tha Soviets wore moving into the Indian Ocean -- pproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 i ow ,Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 I 25 27? , . i , ,1 1 i 1 Senc,.;;or Prorp i,:,,-1? :::t m? make it haa:dar for ConvresQ ti; ., 1 , aporova. i 1 i Mr. .r.airbank. Wall, the domestc politics of India. the 1 4 1 . Soviets obviously want to p/ey in, onel I don't think we want ts1 i: get into that. But this I don't think is a very ser ow, matte!. "o that we 3hould exercise ourselves a?'cut. It is part of a cleneral trend of the Russian movament In that treat which I thizi e0 have to accept. Mr. Mitin5. There is, sir, an implicit contradiction . bo-,:waen this pact and the reality of mutual alliance and frientl- . 4,11o1uding with ths. Peoples Papublic of Chin ap of 1950. 1 Yoz. in the articlo that is aost operative the Soviet Union has; 1,;:adgod tl4at it win not vivo military assiztance to any gve.- zt is :In hotility to the Indian govemment. The 1 Lthinese have had hortilities with the Indian government in 195.1, 13,62 and 1965 aud if read tnat article correctly, this 77 formerly praoludes thr. Soviet tinion from a.!itisting the Peoples, 23 27.2 23 24 11 L,74 $ibiicof China urAer any circumstances that axe hostiIe. It doc,b not say defensive, offensive, who Wad attacking ,Whom, but it simply ?Jreclude.e military aSsititance to a goVernment which is in tt&litioa with the other signatcry, thLak thal, is going to he roai in reking with much more attention than question ..kla!; ?7,.1 have raised namely ont cx.i our concerns over what will happen in a Pak-India war; But yo w question raises ancther Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ? Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 4 9 3,0 19 20 Seant.c.:: 273 It is a vary, very interesting oi;s4vation, I complotell misssa that. Mr. Whitina. But thore is other observation I would ilk tc make. And that is found in the excellent journal of the former ambi43sador to India, John Xenneth Galbraith, and in they hook by Nevil MaLwell abont an Indian-China war. And that isFiin D62 the US government moved precariously close to interventio wth military action on behalf of India in what was a border wan, which 1 bolievo the Indians brought upon themselves, ve_thout reference to the Congress of the US, and under no mutu41 agreement or ocmmitmant for assLstanoe. I think this pattern of elbowing and e'asing our way into a military situation withcut reference to the Congress and without reftronce to legal obligations should be examined, as I knew it has been examined, by various pieces of legislati introducod in ths Congress. And the preosdebta go beyond the Vietnam war. We should certainly nail this one down befar. 313 slip or slide any further into what might be a holocaust. cvl the subcontinent. StInator 2rozmire. het Me ask YoU gentlemen We have been Cisoussing what might be labeled the coming realignment in Ai What will the eccnom_c consequences of all this be for the US*? As you kac,4 we have a tremendous economic investment ia Asia. Om: trade with 3aptn is huas and ow: investments there are vary great. We have Eubstartial economic interests in thel Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1 0 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 4.4 1 "0 aavt really envisage the People*s Republic of China cooperati,g Philippiac, in tore theso and militarily? Dr. Cohen? Mr. Cohen. bo in a position " C.,r1 ???,' esia and throucjhout Ai Wha.c. lies in as z result c17 what f haPening politically You have already indicated that we should substantially ;:o out down out military 1 c-xoendituras, hopeftIlly Alot jut for combat troops but for mil.- tary ext?ense for Aay Asian regilzen. Senator Prosmiro. I asked that vostiono andI think the! (Jiarc., of ubat you gontlemen told us am:gest:4 that. M. Cohan tate it your qusstion now future ot Atiloricnn private invastmant in Asia. This gives me, chaitoe to ..;o= nt on the vision of the future and all the onders that cld 17,11, Protease*. Whiting Oiritod out, if we tld get some coopc.ration between Imerioan private if not ).?ub/IL.. soult'ens and the governments of East Zia on the exploi tation of these racently diseoverad resources of oi/ in kast China and tha South Chita Seas. But I would think that thd prohlpectc4 for that in the naar future ara extreMely dim. We I, with the nepablic of China or with South Korea or with South Iietnam in 3040 joint venture with the Japanese to exploit the zonour Mr. Waiting. May Z interrupt. I was only referrin' contiriental mainland reserve not offshore reserves. fkpproved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 jIw 2P Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ')fft of the P vatest rezouraen am thc world. But they can't be ef.2ectively, exploited, X think until 14o have worked out at , least wheth6r it is going to be Peking or Taipei. It is 0 going to rcially hav the jurisdiction, or exam-pie, to award WO 1,2 'Ltd 15 17 if:,47.1 ?:.q"; cotre.cts to Americzn corporations, or Japanese corporations. And indeed Peking's concern at efforts along these lines by th Japansze, tha Scuth 1Wreans and the people on Taiwan to begin exploiting '2Alese re:ionrces have really, I think, properly led uz to be oatremcly cavtions c?bcat going ahead, because that cotIld lez-4 to ao.i;ua lihooting ineiclenta jtist az disputes wlow betwezr.,, sFy, ;the PhiAppLnes nd both Chineac governMents are leading to vary minor incideants of the other islands in south Chind Sea. So that is a problem. But in the long tun let's hope tha thote on bc ams ecccnoMic cdoperation. I have already indicated that wa ougLt to be working toward other fo:this of econonic cooziarztion, such at the examples of Professoe han ri to for elzaple: the Canadian, By the way, we have had British and Vest German firms setting up plants in China. tla -ould hope that Americana would tAke part in that. 1 Pzvit evsntaally American corporatio_s should be able te profit one way or another, although We are never going to see Chine biking very open in taros of permitting foreign Corpdtationt to ao busine5v; in China. Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 21* w:4,11 t;91f,ctL CU:1.7a ear to tt otao tha OWL!A: UfA.,AM nw la thnt respsot. "Oey, ot!l3..;7 co'xa.;:xis in may beca',7o Chizese presslam a ,vzgg,:tic,n? Incrausngly natiOnalistic. The 5 h7o vy strong in nupporting Latin Zmorican ef:fforte t.f,1 co.rb inwsztment? 121.)t merely by vovernmentG ouch 7 c,mtt? bt cnqPeru and other Latin Amert,mn s, 1 4 couAt:;.:ie control of theLT, owr resourcas, And it may ' bcor tht. fus Thailand the Philippinc:s? az they awa. fr-ct ar6ently anizmurist pottura, and vary e .114 1 cloa:J re1T'LLax3 with vs, that wo will see Inc buvircas intarsts ther. *?,f3? 2t) 22 DLO; ".): hlvl," got to zoco;niv) that in a uhaitgrg- c.>.4r ,13?rigIf; detc=win Z:.110 allo=lti?n of hc,;t f.an I fc is statfi contlwAla mzlsoaabl. tr,:!zas of tha Le which that has got to he df,,77Ae. Senator Prevaire. Dr. tairsav,nk, .7: would like to osk you to plrsucl this. Aledng the Anes that uaz recently kind of a revolution to my of us by former ambassador -- he pointed out if the JarJanc!se continue to exoand their economy in the mxt 30 yaars al they have in the last 10, by the year 2000 they oil1 have gross national oroduct oi r6(i trilliou, in other words, in z:aftstant Ocellars it will be times as 1:1f.g ,As onr Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ,??????.. F' Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 232 pof?rAction. Now, I :,,A4)7,,,ouct there are many 1itlit5ng .? ?:1 novarcleLm, i:his is zm 4 V glani%0thfiiis Zth.-; clec,aomic giant o5,7 Esia. A,3 I ray, we nraly inyclotont, nd have a great trada with Japan. WAat c2focts this %.approcherc.ent with china have on cur in7est- mant;i. in C.a-xln and,;,...Aaehwere. -4 ,4 Mr. Painban31.. tbe rproblem that the Japanese A ciconomy oala be quito a substitute for all our economic An6 Ilavo competition. It seems to me for tha ^P rt ri vis-a-vis Chlna the only help that we have is to get iAc?*;.r.:%.77,ateral c?r laternaConal auspices refiadge -) ozonic r4ctivity to a mrIch greater elegree than 13 i 1 hsretofore. V, If cl;:,Itracts now conduCmd by American corporations coulcU , , P 0 . !i b,) fie d through international body, regional committees, $ 0 0 , P cr: nultination commissions, that kind of thing, that there i 0 ii 17 might 'la less onus of immrialist capital expansion, as they c4L11 , , , 1G it in China. They sea a great menace in the 'Japanese economy 10 because it builds up interest abroad, which then becomes endangered and are followed by military support, probably. 1 22 I 23 24 They accuse us of this same kind of thing. Now, in both oasesi / think the American and the Japanese are not following really, a Leninist book, where the economic growth leads to military i expansion, rather it is a mere complicated than that. But the is n psychology of expansion in both cases. We have the 4 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ; t, Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 223 11,c;61eratia cur ow .11e1th,s SLAC: tiMO. r;art sm71 ..'coaomy in a way. Tits Chinf3a this the outlida. very .;=.oxiaidab7,e proi,;pnot wauld think that institutiorzl. Invelo?m-:nt .Z:he first C thinc -1,111z). t ght to v,y1L, aur ninds to. TM f,:thi)nnels thransh Ta;)ich thir.., kind of aid can cove interno7,,12y ocxtenly can be worked on, and can be improvcv.L t; ? Sol??!....(:7.? ting? would you like to comment it, 1 cn that?:, is, thz: c:EferA of our relatiomhip, budding anfl eAval,7G,ing );)latio7as1ip, that wa all hope is going to Cevaap cunstmactivelv avd peaclefully with China, our investments elsoi where and sconalic commitments elsew1i3re? Nr. I think 1.:%at the prospect of US invento; 'i!7? 1 In Azia is going to be a depressing one, if we se ourselves 1 ie 1 in conpatition- with the aapanese. I think it is clear that i 1 i i 17 i cur entire price-wage structure and tha value of the dollar 1 ! , T 70 J i 20 1 21 1 aa 23 24 in this ocuntry is a problem first of priority, and if it is not aL;olvad tiithla the very near future, we will simply not ba in a pocition to compete abroad. The confidence and the coSt of Cloaling with the US as opoosed to dealing with Japan will make us uncouTetitive. I think while this administrationi % has claim. to have solutions, they have at least not been evieent ?:(1) my eyes. And I an not an economist, and -I cannot perceive he much of a crisis lfl_es ahead for how long. But I I f Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 1. Il 14 16 17 18 19 23 711 24 25 Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 284 wc-a1C to ile:e prctior. until 2. am confi6ent of th3 US lo goiug to Lis solvod. then) are ways in which the matual neeZs' of China the US ccmturnity of ;:avestors ckirl deviot4 North:2..7A 11.71a0 cither with undz-trarit:7.nts Jf the world b3Jak? the Avian Dave1.0Dment E.ay or w!Ith oLhe tN :%cstitutioas, this too i Ii have tc .ccme?after tho resolution of our politi,a1 problems with poli tkL-is public. Ani that is why I think the trip that ..cesident Ni;s.con has prol?osat. has very fan reaching BW: you don't U,C3 than consistently in tha fre- i:13aic of the Vietnm wary or 1.n. tha framework of military secury And that is ,:lhy / made such remarks as 1 did about complat.e fresh and undonv&Itional appx.oaches to the economic convargen- otos, rather than the economic confluence of China, Japan aad the US. Saaall.rir 1.)ozmire. Gentleman, thank you very, very much. D. Cohen. Mt. Cohen. could X just have one final remark about the stobility in Asia. It sems to me appropriate that we begin to revive interest in this country than in the executive branch in the idea of recognizing establishing diplomatic relations with Mongolia. We were, as you know, 'zany close to doing that in Ji ;.:3,8 of 1969 when the State Departmlnt had recomraondad it. /Slit thre Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 .7., Ii Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 v77.1.3 265 :!::ogima on Taiwan aga:Inst this. They hi;,:';,nt,i17zast in .7aollaing or China ;;Imigolia. Lad I think i rofound rTistake that wn didn't go ahead d1,13pite that objeetiozi in reognizi-ag Mango/ie. I think we now should do it, becanso it would accord with the President's rocantly aapzessed objective of recognizing realitt, and recognizing gwarnalts t.h ccTAtrol the bulk of areas wa calle naion states. And I think it would give 4, a very important listening post on Taany-of these problems you have been asking questions 11 about, Mic. Chairma, it would *rovide some balance to the Soviet Union alaost exClusiva ability to =erase influence 141 9' 41 Mongolia. f4 I think the Mtngoliana have been long interestul in a 10 window on the .west for economic and politiocl rinfInflle and thqi: 16 Peoples Republic is not likely to ta 'upset by this move. 17 It has recognised Mongolia and made a barter agreement with it 13 although it doesn't like the way the Russians have treated 10 China with respect to Mongolia. And I think if properly 20 approached this point the Peoples Republic night welcome 21 having a US presence in Mongolia as a counterpoise to the 22 Soviet influence at a time when tha Chinese influence in 23 Mongolia is very/ very low. 24 For all these reasons I think it would be extremely 25 important for us to revive that idea and perhaps give the Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ? Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 .. ttpr. 'Dr ". and c-D11g that it wou.3.d be Er. Fail7hlank. Lir chairman, may I say we need funds mora CtineJe studies in this country. 2enatorroxmire. lbsp inclose. And I think you hv,ve ad for I vztry. strong and compelling case for that. And I appreciatc tt a qtt deal. 1 want to thank you gentlemen very mach. Th' su:Lcemnittee will reconvene in September. We expect tc have witne6ses from th'a Defense Department to give just:;.fication, and their viewpoint, and their responses, some extent to your testimony in the State D3partnent and from other witnesses, because we feel that the such a vital question that has not been explored or developed. So We will continue to do it. You have certainly made a contribution this morning. Thank you very much. Whereupon, at 12;45 p.m., the subcommittee was adjourned s.lbject to the call of the Chair.) Approved For Release 2002/06/18 : CIA-RDP73600296R000200150005-9 ?