more complex. It supported Japan's effort for a larger influence, in that Japan was strengthening its defensive power in the region. This was due to China's intention to minimize the influence of the Soviet Union, which was identified as China's primary enemy. However, simultaneously, it was not delighted to see a U.S. ally exercising influence on Southeast Asia. The United States's response was positive. Present American policy in Southeast Asia take root in July 1973 with the announcement of the Nixon Doctrine. As a consequence of this doctrine, America pulled its land forces out of Asia. Following the Nixon doctrine, America espoused another major set of beliefs. The Ford Doctrine, announced in 1975, called for the normalization of relations with China. These elements, along with the collapse of the three Indochinese countries to communism, shaped American policy towards ASEAN countries, with the key determination being the protection of the non-communist countries while maintaining good relations with China and withdrawing from the region. Thus, America, as well as China, was supportive of Japan's new advance in the region. The reaction of Vietnam, the most powerful Indochinese communist state, changed before and a while after the Fukuda visit. Its attitude went from being hostile to a more benign one. At first, Vietnam viewed Japan as a supporter of capitalist interest due to Japan-U.S. alliance and ASEAN as a hostile military alliance. However, the growing hostility resulting from a war with Kampuchea in 1978, and the need for outside funding for its ambitious five-year economic development plan left Vietnam little choice but to seek for financial support from Japan. Despite Japanese conditionality, the full repayment of outstanding debts of South Vietnam's, Fukuda made an extraordinary statement that moved the stalled negotiations forward, which received a positive reaction from Vietnam. Overall, the Doctrine was perceived as a promise of a strengthening of political and economic bonds, however, over time, the reversal of the trend could be depicted. This reversal was due to the fear that Japan would be less focused on ASEAN. Japan's external and internal policies in the last quarter of 1978, was affected by the development of Sino-Japanese relations, the change of leadership from pro-ASEAN leader Fukuda to pro-China leader Ohira, the competition for the “China market” among OECD countries, the uncertainty in the Southeast Asia region with the influx of refugees into ASEAN from the conflicts in Indochina. Domestic Reactions Domestic