751G.5 MSP/11–2654: Telegram

The Acting Secretary of State to the Embassy in Vietnam1

secret
priority

2130. For Collins. Re Washington consideration total cost effectiveness US programs Vietnam, you will have noted Secretary reserved US position with Mendes-France. In light of these talks and your findings, State, Defense and FOA would appreciate having during process your mission basic estimate from you prospects of success for US programs designed strengthen Diem government, create some security and stability and hold Free Vietnam. Since total cost FY 55 and FY 56 programs will be in magnitude $400 million more or less, US Government would like your views before final commitments made. Desirability of basic estimate has been raised in OCB and discussed at high levels of interested agencies.

Suggest you develop such estimate as soon as you feel you have had sufficient time and facilities to canvass general situation Vietnam.2

In order obtain over-all picture of prospects three Associated States, suggest it might be useful for Yost, McClintock and you meet together in near future for consolidated appraisal of three states and your combined recommendations.

Saltzman
  1. Drafted by Young of PSA. Repeated for information to Phnom Penh as 167 and Vientiane as 115.
  2. In telegram 2063 from Saigon, Dec. 3, General Collins stated the opinion that $400 million was the practical minimum estimate for FY 1955 and FY 1956. The General contended that any lesser figure would be insufficient to accomplish the objectives of the United States in Vietnam. (751G.5 MSP/12–354)