Southeast Asia, a "Pacific Rim" region with diverse political structures, religions and cultures, presents the United States with real opportunities to fully develop and strengthen mutually beneficial security and economic partnerships with the region's countries Unlike other regions that are demanding significant resource investments (S W Asia, Bosnia), the high level of stability currently enjoyed by the region requires only modest investment to return significant payoffs Additionally, the close proximity of this region to China provides the U S with additional policy alternatives should China move in directions unfavorable to U S national interests This strategic assessment begins with a review of U S interests pertinent to the region, outlines key factors and trends influencing U S - S E Asia relationships and highlights challenges, threats and opportunities With this as background, a discussion of policy objectives and the means (tools of statecraft) suitable to achieve these objectives is provided.