The outbreak of war on the Korean Peninsula brought about an abrupt change of focus in American foreign policy. The new American strategy was to militarily isolate or alienate China in Asia. To accomplish this, the United States established bases in East Asia and mutual defense treaties in East Asia. Treaties were negotiated with Japan, the Philippines, Australia, and New Zealand. American President Eisenhower later expanded these to include South Korea, Pakistan, and Thailand. To cap off this anti-China strategy, the US strengthened ties with Taiwan or Nationalist China, with which the former had official diplomatic ties.
In the 1950s, American power and credibility deteriorated somewhat in the Cold War. Its own people, who began to oppose McCarthyism and the blunt anti-communist policies of John Foster Dulles, the American Secretary of State in the Eisenhower Administration, helped to undermined national prestige.
In 1953, Josef Stalin, the Soviet leader, died. These events helped to bring about a shift in direction in American foreign policy. The United States began to look more to Asian events as major threats to Americas national security. The Iron Curtain was firmly established in Europe, and NATO forces provided secure protection on the western side of the curtain. For the time being, things looked fairly stable in Europe. In the East, because of the end of the Korean War and the exodus of the French from Indo-China, things were not as stable. The American political elite contended that the foremost problem was the vacuum left by the French withdrawal from Indo-China. To officials in the United States, this void must not be filled by another communist regime. The realization of objectives of the domino theory could not be allowed to perpetuate. The Chinese Revolution had established a communist regime in the most populous country in the world, and the tensions between North and South Korea were not going to go away overnight. Success of the domino theory looked more likely in Asia than in Europe. The United States felt that it needed to concentrate its energies and resources in Asia. American policies, during the 1960s and early 1970s, essentially were to prevent communist takeovers in Asia, in particular, particularly in South Vietnam and Taiwan. American policy was to contain communism where it already existed, while simultaneously coexisting peacefully with its cold war communist rivals. Military expenditures increased as defense budgets went sky high with democratic and communist bureaucracies building huge arsenals or inventories of high velocity, even supersonic destructive nuclear weapons, in a very fragile polarized world. Even China tested a thermal nuclear weapon in the early 60s.
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