While war raged in Korea, the French were battling the nationalist and Communist Viet Minh in Indochina. When a French army became surrounded at Dien Bien Phu in 1954, Paris appealed to the United States for air support. American leaders viewed the insurgency as part of the worldwide Communist campaign and at first propounded the theory that if Indochina went Communist other Southeast Asian countries would also fall “like dominoes.” Eisenhower, however, was reluctant to send U.S. troops to Asian jungles, to arrogate war-making powers to the executive, or to sully the anti-imperialist reputation of the United States, which he considered an asset in the Cold War. In any case both he and the American people wanted “no more Koreas.” Hence the United States supported partition of Indochina as the best means of containing the Viet Minh, and after French Premier Pierre Mendès-France came to power promising peace, partition was effected at the Geneva Conference of 1954. Laos and Cambodia won independence, while two Vietnams emerged on either side of the 17th parallel: a tough Communist regime under Ho Chi Minh in the north, an unstable republic in the south. National elections intended to reunite Vietnam under a single government were scheduled for 1956 but never took place, and, when the United States assumed France’s former role as South Vietnam’s sponsor, another potential “Korea” was created.

The Korean War and the new administration brought significant changes in U.S. strategy. Eisenhower believed that the Cold War would be a protracted struggle and that the greatest danger for the United States would be the temptation to spend itself to death. If the United States were obliged to respond to endless Communist-instigated “brushfire wars,” it would soon lose the capacity and will to defend the free world. Hence Eisenhower and Secretary of State John Foster Dulles determined to solve “the great equation,” balancing a healthy economy with only what was essential by way of military force. Their answer was a defense policy whereby the United States would deter future aggression with its airborne nuclear threat. As Dulles put it, the United States reserved the right to reply to aggression with “massive retaliatory power” at places of its own choosing. In implementing this policy, Eisenhower cut overall defense spending by 30 percent over four years but beefed up the Strategic Air Command. The diplomatic side of this new policy was a series of regional pacts that linked the United States to countries ringing the entire Soviet bloc. Truman had already founded the NATO alliance, the ANZUS pact with Australia and New Zealand (1951), the Pact of Rio with Latin-American nations (1947), and the defense treaty with Japan (1951). Now Dulles completed an alliance system linking the 1954 Southeast Asia Treaty Organization (SEATO), stretching from Australia to Pakistan, to the 1955 Baghdad Pact Organization (later the Central Treaty Organization [CENTO]), stretching from Pakistan to Turkey, to NATO, stretching from Turkey (after 1952) to Iceland.

Dulles viewed the postwar world in the same bipolar terms as had Truman and, for that matter, Stalin. Asian independence, however, not only expanded the arena of the Cold War but also spawned the third path of nonalignment. In April 1955 delegates from 29 nations attended the Bandung (Indonesia) Afro-Asian Conference, which was dominated by Nehru of India, Gamal Abdel Nasser of Egypt, and Sukarno of Indonesia. In theory the delegates met to celebrate neutrality and an end to “the old age of the white man”; in fact they castigated the imperialist West and praised, or tolerated, the U.S.S.R. Although most of the Bandung leaders were sloganeering despots in their own countries, the movement captivated the imagination of many guilt-ridden Western intellectuals.