The International Commission in Laos was established in 1954 to supervise the execution by the Communist Viet Minh and the French Union High Command of the Cease-Fire Agreement which ended the long period of hostilities between them. The Communist Pathet Lao, who had supported the Viet Minh against the French and the Royal Government, regrouped in the two northern provinces of Phong Saly and Sam Neua. In effect, responsibility for the execution of the Cease-Fire Agreement devolved on the Pathet Lao and the Royal Laotian Government. The main task of the International Commission until last November was to prevent incidents between these two parties and to further their efforts to reach an agreement by which the Pathet Lao could be integrated into the national community.

Agreement finally was reached in November, 1957. The Pathet Lao (the Neo Lao Haksat) became a new political party with the rights and duties provided for by the constitution of Laos, and were given two portfolios in the Laotian cabinet. In return, they agreed to disband their military units and become peaceful members of the community. Supplementary elections planned for May will increase the size of the National Assembly from 39 to 60 seats, and will provide for representation of the Pathet Lao in the Government.

Laos occupies a strategic position, situated as it is between Communist China on the one hand, and Thailand, Malaya and Cambodia on the other. In Communist hands, Laos would provide a convenient base for aggression or subversion directed against the rest of Southeast Asia, and therefore the main objective of the Western powers continues to be the thwarting of any Communist attempt to displace the present pro-Western Government of Laos.

The recent agreements between the Royal Laotian Government and the Pathet Lao left something to be desired, but it seemed clear that a continued division of the country posed more dangers than did the settlement. The United States has serious reservations about the agreements and about the inclusion of two Pathet Lao representatives in the Cabinet. The Laotian Government has been informed that the United States intends to re-examine its programme of aid to Laos in the light of developments. The Canadian view has been the same as that of the United Kingdom and France, i.e., that the wisest course of action now will be to provide both moral and economic support to the Laotian Government. This support, along with the advice which can be given by the Western powers, will help the pro-Western group in Laos to maintain its position and to withstand any attempts by the Communists to gain control.

The political settlement opens the door to the dissolution of the International Commission in Laos. As you know, we have been unrelenting in our attempts to reduce our commitments in all three of the Indochina Commissions. In Cambodia we consider the Commission's job to be completed, but we have been unable to convince our Indian and Polish colleagues that the Commission should be dissolved. Our task has been complicated by the fact that the Cambodian Government wishes the Commission to remain. However, in Laos, the position of the host Government is different. Prince Souvanna Phouma has asked the Commission to leave as soon as possible. The Laotians need the accommodation which is occupied by the Commission, they consider that the presence of the Commission infringes upon their sovereignty, and they interpret the recent agreements and the elections which will be held in a few months as constituting the political settlement provided for in the Cease-Fire Agreement for Laos.

The Indians, although they favour a reduction in the size of the Commission, continue to maintain that none of the Commissions can be dissolved independent of the others. We, and the United Kingdom, have indicated to the Indians that we think there should be immediate reductions in the Laos Commission, and that the Commission should be completely eliminated following the establishment of control throughout the country by the central government. If the Indians are to be convinced, it is essential that the Laotian Government continue to press for the dissolution of the Commission.

Our relations with Laos have not been on a large scale but they have been friendly. Trade between Canada and Laos is on a negligible scale, but we have provided some technical assistance under the Colombo Plan. Funds are available to continue, and possibly to expand slightly, Canada's present programme of technical assistance in Laos, and there is no doubt that this aid makes some contribution to the general economy of the country and thereby strengthens the Laotian ability to resist Communist subversion.

In summary, therefore, the following are the main points which we would expect Prime Minister Souvanna Phouma to raise during his visit:

1. The International Commission: When this subject arises, I would suggest that you inform the Prime Minister that we are anxious to see the Commission in Laos dissolved as soon as the agreements have been carried out. It perhaps would be wise to explain to him that we recognize that the presence of the Commission does constitute an infringement of the sovereignty of Laos, and that we understand his desire to have the situation ended as soon as possible. From our point of view, the Commission represents a considerable drain on our personnel resources and we should like to reduce this drain. It would be worthwhile to inform the Prime Minister that requests from the Laotian Government for the dissolution of the Commission are the best means of convincing the Commission powers, and that any further requests his government may make to the commission would strengthen our arguments for dissolution. A request to the Co-Chairman, however, would not be wise. It is unlikely that the U.S.S.R. would be cooperative, and this might lead to a hardening of the Indian attitude.
2. Colombo Plan: There is not a great deal of money available for capital aid projects in Laos and it would be advisable to be fairly non-committal in any requests which are made for this type of aid. Funds are available for technical assistance and you may wish to indicate to the Prime Minister that we are prepared to consider sympathetically requests for training of Laotians in Canada or for the sending of Canadian experts to Laos.
3. The Future of Laos: You may wish to assure the Prime Minister of Canada's sympathy for the national aspirations of the Laotian people. We appreciate the difficult future which the country faces, naturally we wish them every success in their efforts to develop the strength and unity of the country while maintaining the democratic approach which they have followed in the past.

Attached for your information is a more detailed brief† on various aspects of Laos. There are two pieces of personal information about Prince Souvanna Phouma in which you may be particularly interested:

1. He speaks only French and Laotian.
2. The leader of the Communist-oriented Pathet Lao is Prince Souphanouvong, who is the Prime Minister's half-brother.

Sidney Smith