231. Telegram From the Department of State to the Embassy in Vietnam1
1511. To Ambassador from Ball. The President desires that you be aware that he personally made decision against providing blanket authority to grant waivers from limited worldwide procurement policy for up to twelve million dollars of industrial machinery. Deptel 1474.2
He also has made decision against direct purchase of twelve million dollars worth of piasters to fund items in GVN military budget proposed urtel 1663.3
He desires that you understand and inform the GVN that these decisions were made in the light of our present basic policy to improve the US balance of payments position.
Further he is not persuaded that the above two proposals are necessary to accomplish your purposes.
He believes that any delays or cutbacks on the part of the GVN in providing piasters for necessary efforts to defeat the Viet Cong are incomprehensible in the light of the present grave threat to the independence of Viet-Nam and in view of the enormous quantities of economic and military aid we are providing.
FYI: Your discretion as how to inform Diem of substance this message. End FYI.
- Source: Kennedy Library, National Security Files, Vietnam Country Series. Confidential, Priority. Drafted by Cottrell, cleared with Fowler (AID), Peterson, Wood, Little (State), Diehl (Treasury), Bundy (DOD), Kaysen and Bundy (White House), and approved by Ball. Repeated to CINCPAC for Polad.↩
- Document 225.↩
- Telegram 1663 from Saigon, June 27, proposed, in view of the withdrawal of $12 million waiver authority, that the U.S. Government buy $12 million worth of piasters to be used for military support of construction, facilities maintenance, and MAAG support. (Department of State, Central Files, 811.0051K/6-2762)↩