Shaky U.S. Policy

In Laos last week, almost nobody was left to mind the store.

On the Communist side, Red Prince Souphanouvong had been gone for a fortnight from his headquarters in Khang Khay to celebrate the Buddhist New Year festival with some villagers. Two Red military commanders stopped off in Peking on their way to Moscow. Soviet Ambassador Aleksandr Abramov was going on leave after three years in Southeast Asia, hoping for a new assignment.

"Neutralist" Prince Souvanna Phouma pleaded indigestion caused by eating fermented, raw deer liver--a Laotian delicacy--and flew to Italy to inspect a prospective son-in-law, then motored to the French Riviera to inspect a modest villa he is building. He planned to stay in France until his daughter's June wedding.

Also on the road: anti-Red Strongman General Phoumi Nosavan and his protege, Premier Boun Oum, who had gone to Bangkok seeking economic aid to bolster their challenge to U.S. policy in Laos.

That policy was shaky from the start, but there seemed to be no better alternative under the circumstances. Last week the policy appeared shakier than ever.

While U.S. attention was focused on South Viet Nam, the danger in neighboring Laos increased.

Risky Gamble. Just a year ago, when the U.S. finally persuaded the Soviets to accept a cease-fire in Laos, Washington gambled heavily on a long-shot bet: better to rely on Russian guarantees of a neutral Laos than go on fighting a war that could not be won. The Red Pathet Lao forces, aided by Communist North Vietnamese, controlled half of Laos, and the Royal Laotian Army seemed unable to nrevent the Reds from overrunning the country (which so far has received $450 million in U.S. aid). The U.S. decided to abandon Phoumi's anti-Communist regime, which appeared doomed, and planned to replace it with a neutralist government. But Phoumi strenuously opposed the idea; a neutralist coalition, he feared, would soon fall to all-out Red control--and rob him of his own power.

Phoumi last week could point to a few hopeful military factors. The tough, anti-Red Meo tribesmen control the important Xiengkhouang-Vang Vieng road and force the Reds to supply several bases by air.

In the jungle surrounding the Pathet Lao stronghold on the Plaine des Jarres, Meo guerrillas also successfully harass the enemy. Even the regular army occasionally shows up well: last month 100 outnumbered government troops fought their way to a village under attack by the Pathet Lao, turned defeat into a victory.

But most of the time, green government soldiers turn and run. Last week the royal regime announced the fall of two more army outposts near the northwest provincial capital of Nam Tha.

Desperate Search. Meanwhile, the U.S. vainly pushes its blueprint for a neutralist coalition. Ever since February, Washington has refused to deposit Phoumi's $3,000,000 monthly aid check to force his agreement. Last week President Kennedy refused a new plea for financial support from the royal government. But even withholding economic aid from Laos has failed to overcome Phoumi's opposition.

All this has crippled the Laotian economy. The black-market rate of the local currency, the kip, is soaring toward twice the legal rate; the price of rice has doubled; the price of fish, vegetables and oils has jumped even higher. These were the facts that sent Phoumi, Premier Boun Oum and a clutch of other top officials to Bangkok in a desperate search for help from Thailand's Marshal Sarit Thanarat.

In the past, Sarit, Phoumi's older cousin, also challenged the Kennedy administration's plan for a neutral Laos, but now he has apparently changed his mind. Declared a Thai government spokesman even before Phoumi arrived: "The U.S. must have considered all reasons and circumstances before reaching such a decision . . . If evil consequences arise later, the U.S. will not ignore its responsibility and will help Laos."

The Laotian delegation was determined to go on looking for dollars,to finance its last-ditch stand against the U.S. line, planned to stop at South Viet Nam, Formosa, South Korea. Since these countries are heavily supported by the U.S.. it would merely be a roundabout way of getting U.S. funds, and the chances looked slim. For better or worse, the U.S. is still determined to force the anti-Communists of Laos into neutrality.

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