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c. China Sees Creation of a Neutral Buffer Zone
Beyond Vietnam, the Chinese apparently believed that the final
agreements would preclude the three Indochinese states from involvement in the American security system.
1/ When Chou communicated to Eden his concern about Laotian, Vietnamese, and Cambodian participation in a Southeast ASIA treaty organization, the Foreign Secretary said he knew of no proposal
for those States to join.
2/ The next day Eden told Nolotov that a security pac in Southeast Asia was inevitable and completely in line with British policy; but he added. that no consideration was being given to the inclusion of Cambodia and Laos (a comment which Smith regarded as a "mistake" inasmuch as the U. S. hoped to use the threat of their inclusion to get a better settlement).
3/ When the conference closed, the Chinese felt sufficiently assured about the matter, it would seem. On 23 July, a Chinese journalist confided.: "We have won the first campaign for the neutralization of all Southeast Asia."
4/
d. China's Domestic Economy is Protected.
China, at this time, was greatly concerned. "with her own internal
problems, and anxious to consolidate at home before moving further
into Asia. The Korean war had. exacerbated the pressing economic and political problems "within China, as had the attempts by Peking to push an economic reconstruction beyond the limits of possibility. The Chinese were satisfied that the Indochina situation after Geneva allowed, at least, temporary assurance that a major effort could be turned inward without fear of repercussions along China's south western border...