U.S. Withholding Aid To Laos

Press, Volume CI, Issue 29716, 9 January 1962, Page 11

U.S. Withholding Aid To Laos

(N Z.P.A -Reuter—Copyright)

WASHINGTON, January 7. The United States State Department announced tonight that it is temporarily withholding a 4,ooo,ooo>dollar cheque for Laos.

A department spokesman, Mr Robert McCloskey, said: “The matter is under review.” Other United States aid to the South-east Asian kingdom also was under review, but was continuing.

The department has deposited 4m dollars each month to guarantee the convertibility of Laotian currency. The spokesman said the cheque was normally deposited on or about the first month, but it had sometimes been deposited as late as the 10th. The sum being withheld is for January. Another state department spokesman today reiterated the official position that United States combat troops were not needed to fight Communist guerillas in South Vietnam. The Assistant Secretary for Far Eastern Affairs. Mr Averell Harriman, said improved transportation, including helicopters and aircraft, was the chief current need of the forces of President Ngo Dinh Diem. Appearing on a television programme. Mr Harriman said nearly 200.000 South Vietnamese had been trained by U.S. instructors. He said: “We have a very competent group of Americans who are training the South Vietnamese and there has been no discussion of outside traps. . . . The Vietnamese are ready to fight themselves. What they need is equipment and help in a number of different ways.”

The Associated Press said that Mr Harriman’s reassurances came in the face of

some reports that United States soldiers were already taking a combat role in South Vietnam against the Communist Viet Cong, which was backed by North Vietnam. He reported that he had been trying to get the Chinese to admit United States reporters to their country but had made no progress. He said that efforts to this end were continuing. “It is frightfully importtant for us to have an

American view of Chma.” he said. “I read everything that other nations write. They may be very accurate reporters, but, somehow, they are not very good reporters and we don't get a clear picture of whet is going on." Mr Harriman reiterated also his conviction that the Soviet Union was sincere in its expressed wish to liave a truly neutral Laos. Because of this, there was still a chance for a workable solution there, he said.