Revolt In Laos Strains Economy

Press, Volume XCVIII, Issue 28987, 31 August 1959, Page 11

Revolt In Laos Strains Economy

(Rec. 11 p.m.) VIENTIANE, August 30. The Laotian rebels, in their six-week campaign in Laos, have extended the Government forces to the maximum and have put a big strain on the economy of the country, an informed military source said yesterday.

He added that there was unrest in some parts of the country, which in some cases bordered on panic, but he believed the Laotian Army could control the present uprising provided no new forces or supplies came in from outside.

In Sam Neua province, the scene of the heaviest fighting, the rebels have continued to occupy a cordon round the northern and eastern borders of the province.

fortress of Dien Bien Phu into Sam Neua, according to military observers.

In Manila, the Philippine Foreign Secretary <Mr Felixberto Serrano) dismissed the possibility that the South-east Asia Treaty Organisation would initiate any proposal to solve the Laos situation.

The rebels last night attacked a small Army post 16 miles east of Vientiane, but no casualties were reported on either side.

The attack was the latest of a number of small incidents reported in Vientiane Province during the last 10 days. It was the closest yet to the capital of the little South-east Asia kingdom, but the rest of the country was reported quiet. The rebels opened fire with rifles, and threw some hand grenades. About 15 men were believed to have been manning the post.

Answering questions at a new, conference Mr Serrano said: “Prudence demands the adoption instead by S.E.A.T.O. of an attitude of watchful waiting." Mr Serrano said the Philippines. a S.E.A.T.O. member, was viewing the Laos situation with concern but not with alarm.

The Army rushed reinforcements by truck, and the rebels retreated into the surrounding forest.

The rebels have apparently established full-scale military occupation of the 50-mile long Muong Son Valley, stretching down from the ill-fated French