This report analyzes the stark security challenges confronting ASEAN and China as a result of the substantial and continuous strengthening of Soviet naval capability in the Asia-Pacific. The report discusses the commanding coercive benefits accruing to Moscow from the Soviet Union's successful geo- strategic leapfrog to naval and air facilities at Cam Ranh Bay and Da Nang in Vietnam. Overall, this analysis concludes that the major objectives of the Soviet naval buildup in the region are to compel Southeast Asia governments to accommodate Soviet foreign policy goals and to raise concerns in the region about the wisdom of close association with the U.S. The report calls for enhanced naval cooperation and defense-sharing between the U.S. and ASEAN in order to provide the requisite regional maritime security to counter Soviet threats. (FR)