NSC BRIEFING 17 March 1959 CHINESE ECONOMIC ACTIVITY IN SOUTHEAST ASIA I. Peiping began an economic drive in 1954 in Southeast Asia. Effects first really felt last year, but now, because of current pre-occupation with the "leap forward," moving ahead on its earlier momentum. Presents long-range threat of major implications for the position of the West in Southeast Asia. A. Chinese activity is dual-motivated: to make its growing power felt in Southeast Asia through economic relations, and to generate sterling, enabling China to finance West European goods essential to its own developmental program. II. China has a capability for a major trade assault which could disrupt several Southeast Asian economies. A. Rice sales to Southeast Asia, now totaling less than .005 percent of Chinese production, easily could be expanded with drastic effect on the economies of Burma and Thailand. B. Chinese rubber purchases, nearly 10 percent of Southeast Asian production, are shift...
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