751G.5 MSP/11–2054: Telegram
The Secretary of State to the Embassy in Vietnam1
2056. For Collins. In talks with French Secretary has in general terms indicated our conclusions on amount financial support for FEC calendar 1955 should be reached after taking account likely cost related security programs Indochina and elsewhere Far East. We endeavoring same time give fullest support your recommendations and tentatively plan inform French here next week of $100 million figure for support FEC calendar 1955 in order prevent their assumption that higher figure will be forthcoming.
Note your estimate at least $240 million would be required calendar 1955 support Vietnamese forces during transition period and at reduced levels outlined your 1830.2 Must also take account financial support upwards $100 million for combined Laotian and Cambodian forces plus another estimated $100 million for rehabilitation and refugee programs in three states.
We must assess possibilities ultimate success in Indochina with estimated expenditures exceeding half billion dollars year versus possible results from similar investment elsewhere. Aid to Southeast Asia in our view must be apportioned among various countries on basis priority and probable chances of success commensurate with investment. We concerned likelihood success in your selling new force plan to Vietnamese [Page 2276] themselves which involves scaling down financial costs next year in support military effort at level described your 1830.
What timetable do you envisage for talks with Vietnamese to sell them on new force plan?
If we would propose devote less than $440 million for combined military forces support Indochina during coming calendar year what would your present thinking be on where such financial cuts might best be applied, whether to forces Vietnam, Laos, Cambodia or FEC?
Presently plan speak to French here Tuesday3 and would if possible like any comments you may have by then.
In any discussions with Vietnamese on this matter please bear in mind joint instructions being sent separate telegram today.4