For the source text click/tap here: Avodah Zarah 39
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Although the Mishna appears to require that the Jewish person watch the milking process, the Gemara quotes a baraita that permits the milk as long as the Jewish person was in the vicinity, even if he was not watching. The Gemara explains that the very presence of the Jew will frighten the non-Jew and keep him from placing anything non-kosher in the milk. As we have already learned, some contemporary rabbis permit the use of milk that has government inspection guaranteeing the purity of the milk.
We explore how cholov yisroel in the US represented the evolving approach to post war communal minhag standards.