SOUTHEAST ASIA

The mainland part of Southeast Asia historically has been called Indochina. Of the six countries on this peninsula, the three larger ones occupy more than 80 percent of its surface. They are Burma in the west and northwest, Thailand in the center, and all of Vietnam in the east. Cambodia and Laos are squeezed between Vietnam and Thailand, in contrast to the Malay Peninsula in the south, which extends from the mainland toward Indonesia. During the war between the French and Viet Minh, after World War II, the word Indochina became almost synonymous with French Indochina, the French-controlled former association of the three states of Cambodia, Laos, and Vietnam.

The name Indochina is as accurate and useful as such names ever can be, as the peninsula is inhabited by peoples who were influenced by both Indian and Chinese civilizations. It lies between India and China, geographically connected with both, and as close to the one as the other. Over the whole width of Indochina's northern boundary offshoots of the mountain ranges of southern and southwestern China run down into the peninsula from north to south. Their narrow river valleys have forever been migration routes of the peoples, displaced by the pressures of stronger invaders, who populated Southeast Asia, descending from southern China and Tibet into the peninsula and proceeding onto the islands of Indonesia and beyond. The modern day peoples of Southeast Asia are racially and socially cousins to the Chinese rather than to the Indians.

China's geographical intimacy with the peninsula has largely neutralized the mountainous boundary areas and the easy approach by sea that India enjoys to the whole western coast of Indochina, in addition to a land connection with Burma. The sea does not separate the countries of Asia, but rather connects them with each other and with the rest of the world. Indochina, as a result, has always been subject to the influence of her two gigantic neighbors to an almost equal degree. Indian traders and priests have contributed to the development of Indochinese civilization as much

as Chinese moral philosophers, Chinese conquerors, and Chinese political administrators. Religion, philosophy, art, and political organization show the cultural predominance of either India or China over this territory for some two thousand years--without, however, making the cultures of Indochina into mere copies of Chinese or Indian culture.

In many parts of the world where developments have traditionally been measured in terms of centuries, the past two decades have been a period of almost breathtaking change. And nowhere is this more true than in Southeast Asia. This area has suddenly seen a dramatic alteration of its relationship to the rest of the world. From the isolation imposed by geography and a colonial history, most of the countries of this area have been literally thrust into the midst of international politics in a manner few could have predicted.

The problems imposed by this sudden transformation are staggering. The nations of the area are striving to maintain selfgovernment and self-determination, but have only limited traditions of representative government and experience in modern statecraft. The countries are rich in resources but poor in the capital and technology to exploit them. They are dedicated to the preservation of their independence but they often lack the military and economic means to guarantee it.

One potential problem is population pressure, relatively new to mainland Southeast Asia which contains four of the world's great rice bowls: southern Burma; southern Thailand; Cambodia; the Mekong delta in South Vietnam.

The economies still suffer from the colonial pattern of exporting raw materials and food and importing manufactures. For example, about 50 percent of Cambodia's export earnings come from rice and rubber.

Each country has gone about the task of modernization in its own way, depending on its history and experiences, its geographic situation and its conception of the dangers it faces. Burma, for example, has opted for neutrality. Thailand has united in a collective alliance for mutual defense and economic welfare known as

SEATO, the South-East Asia Treaty Organization. The members of SEATO are Thailand, Australia, New Zealand, the United Kingdom, the Philippines, France, and the United States. In November 1972 Pakistan indicated that it would not continue as a member as of November 1973--and this held true.

Much controversy has surrounded SEATO since it was created in 1954. And yet, SEATO has helped, perhaps in a limited way, to stimulate a new trend in regional cooperation--in political, economic, social and cultural affairs. It has given impetus to the belief that the welfare of one is the welfare of all in the area.

The following comments pertain to background information of the countries of Southeast Asia. (Taken from various Department of State Background Notes)

BURMA

"Political Conditions

"Since seizing power in 1962 the successive Ne Win regimes have attempted to effect a thorough and radical transformation of Burmese society under a program called "The Burmese Way to Socialism." Led by a new elite consisting of senior military officers and leftist intellectuals, the program rejects Western parliamentary democracy in favor of authoritarian political control through a single party system. These leaders hold the key positions in the Burma Socialist Program Party (BSPP), which they formed in 1962 as the only political party. It was a "cadre" party until the 1971 First Party Congress, at which time the BSPP was proclaimed a "mass" party and given theoretical control of the government.

"The government's economic objectives aim at virtually complete government control of economic activity with almost no role for private enterprise, except in the agricultural sector.

In implementing his program, Ne Win has encountered a certain amount of opposition but has been able to maintain firm control. Opponents within the government resigned while all political parties, except the BSPP, were outlawed and many politicians placed under detention and surveillance. Since 1966-67 Ne Win has made several moves aimed at increasing civilian support for his military-dominated government, including the release of most detainees, amnesties to dissident leaders, and

invitations to various prominent Burmese to participate in advising the government on various matters.

"Former Premier U Nu, released from detention in 1966, left Burma in 1969. He has never relinquished his claim to being the legitimate Prime Minister of Burma and until early 1973 attempted to overthrow the Ne Win government from a base in Thailand with the cooperation of various insurgent groups within Burma. He served connections with these groups in 1973 and then went to the United States on a lecture tour.

"Problems of Insurgency

"A major problem of the government, as for all Burmese Governments since independence, has been disaffection among Burma's ethnic minorities and insurgent uprisings conducted by members of these minorities as well as by two outlawed Communist parties ("White Flags" and "Red Flags"). Ne Win attempted to end the insurgency during 1963 by peace negotiations with the various groups. All negotiations failed before the year was over, except for those with a Karen group, the Karen National Defense Organization (KNDO), which had some limited success in reducing insurgency. Kachin, Shan, and Karen rebellions are still in progress, however, representing extremist elements who demand secession from the Union or other forms of autonomy within the Union. find a combination of political, economic, and military measures to harmonize relations between the central government and the minorities is probably the most critical long-term problem facing Burma.

To

"The principal insurgent group, the White Flag Communists, has suffered serious setbacks in its long standing strongholds in central Burma, partly as a result of internal dissension. In 1967, however, a new White Flag organization, "The Northeast Command, "' was formed under the leadership of a Chinese Communist-trained Kachin, Naw Seng. With the support of the People's Republic of China, this organization has seriously limited government control along the China- Burma border in the northeastern region of the Shan State. By late 1973 significant territorial gains threatened government control over the administrative center of Kengtung.

"Economy

"Burma is an agricultural country heavily dependent on rice source of foreign exchange. It also produces cotton, timber,

and rubber and has important mineral resources (lead, zinc, tungsten, and petroleum), which provide an impressive potential for economic development. Burma's total production has been increasing at a very low rate in recent years and per capita income is one of the lowest in the world. Production in some industries and mining enterprises has declined, primarily as a result of the continued insurgencies, the drastic cutback in imports, and the unsettling impact of nationalization. Burma's few industries include agricultural and wood processing, textiles, footwear, and mining.

"The government announced its first 4-year economic development plan in early 1971. Its targets were not met and the plan was revised in 1974 to coincide with the installation of the new government.

"Trend Toward Socialism

"Since independence all Burmese economic policies have been based on socialism. Faith in socialism as an ideology has been reinforced by a nationalistic desire to reduce, through nationalization of private enterprises, the economic power of foreign minorities (i.e., Indians and Chinese) who had long dominated private trade, finance, and industry in Burma.

"This Socialist trend has been accentuated since the advent of the present regime whose program envisages almost total nationalization of industry and trade. Initial strides toward this goal were taken in 1963 and 1964 with the nationalization of all foreign and private banks, the imposition of steep tax rates on private businesses, and the nationalization of all foreign trade. By the end of 1965 the government had taken control or ownership of all important industries and domestic trade. Several hundred other commercial and industrial enterprises were taken over by the government in late 1968 and early 1969. While agriculture has not been directly nationalized, the government has a virtual monopoly of the marketing and processing of agricultural products. One direct result of the nationalization program has been the repatriation of many thousands of Indians, Pakistanis, and Chinese.

"The economic policies of the Ne Win government have eliminated foreign private investment and economic or technical assistance formerly received from foreign private agencies, such as the Ford Foundation. Although Ne Win insists that Burma must rely primarily on its own resources for economic development,