Foreign Relations of the United States, 1961–1963, Volume III, Vietnam, January–August 1963

137. Telegram From the Assistant Secretary of Defense for International Security Affairs (Nitze) to the Commander in Chief, Pacific (Felt)¹

Washington, May 29, 1963, 1:52 p.m.

DEF 928638. Reference: (a) JCS 9820 DTG 091805Z May;² (b) DEF 928115 DTG 160026Z May.³

Part I

1. Following guidance for preparation FY 64-69 MA Programs for Vietnam has been obtained from SecDef. It supplements and amplifies instructions in Part III of ref a.

FY 64

a. The MAP dollar guideline including supply operations will be $180 million.

b. Of this amount approximately $35 million may be programmed for ammo. However, whatever ammo is required for successful prosecution of the counterinsurgency campaign will be provided. The source of funding for any ammo requirements over the program level of approximately $35 million will be determined as requirements are filled.

FY 65-69

a. Three alternative plans will be developed and compared in the detail described in para b, Part III, ref a. These three plans will be based on the following dollar levels:

1. $585 million (derived from CINCPAC 11 May submission).⁴

2. $450 million.

3. $365 million.

These dollar levels include supply operations costs.

2. The materiel of U.S. units in Vietnam that will be replaced by equivalent Vietnamese units will be made available to the Vietnamese through the MAP. Items will be delivered where is, as is. Thus, the pricing of such items will be at the minimum allowable as authorized by law and based upon the year in which turned over to the Vietnamese.

Part II

1. The following additional planning guidance is provided by the Director of Military Assistance:

a. In comparing Plans, indicate projects or items which would have to be deleted (and any substitute items added) to arrive at lower plan levels. Projects or items should be listed by year by priority.

b. Following FY 65-69 funding guidelines for these three plans are provided:

Plan ($ Mill)	FY 65	FY 66	FY 67	FY 68	FY 69
$585	150	130	120	100	85
$450	150	120	70	60	50
$365	125	90	50	50	50

2. Secretary of Defense requirements for data on “supplementary assistance” must be derived from USAID/Vietnam.

3. Washington review will address many points on which estimates and opinions of USAID and Embassy will be of great interest and these agencies should be given maximum opportunity to participate in development of plans and to provide full comment on all aspects of same.

4. U.S. materiel being turned over in place to equivalent Vietnamese units must be charged to MAP. However, do not count MAP costs against country MAP program guidelines stated Part II, para 1-b above. Rather, submit as additional and separate requirement, including lists of subject equipment (all major items), and year in which turn-over will occur. ODMA will then establish MAP price in accordance with para I-2 above, and seek approval of additional MAP funding if required.

4. [sic] The revised FY 64 program in program data card detail together with abbreviated MAP Element Description (descriptive title and machine data less asset data) will be submitted to ODMA on 30 June 63.

6. Alternative $585-$450-$365 Plans for FY 65-69 will be submitted to ODMA no later than 1 Aug 63.

1. Source: Washington National Records Center, RG 330, OSD Files: FRC 69 A 3131, Viet 091.3 MAR Secret; Priority. Drafted on May 27 by Woods in the Planning Division of OASD/ISA/ODMA and cleared by Milton H. Thick, Director of the Division, and several Defense Department officials, including William Bundy, Krulak, and Kent. Repeated to COMUSMACV.
2. See footnote 4, Document 111.
3. Telegram DEF 928115 to CINCPAC, May 16, indicated that the programming level and source of funding for fiscal year 1964 for ammunition for the Republic of Vietnam would be included in a forthcoming general guidance. (Washington National Records Center, RG 319, U.S. Army Message Center Microfilm, Reel 11328)
4. Document 121.