366. Letter From the Under Secretary of State (Katzenbach) to the Deputy Secretary of Defense (Nitze)1

Dear Paul:

In answer to your letter of April 13,2 we will be pleased to undertake a reassessment of U.S. policy for Laos by the Interdepartmental Regional Group/East Asia. I would suggest one change in the purpose of the exercise as stated in your letter: the Geneva Agreements have not been “exploited” but rather consistently violated by the North Vietnamese in the most blatant manner. I presume that North Vietnamese “violation” rather than “exploitation” was meant, and we are proceeding to set up the policy review on that basis.

It is now over a month since the Contingency Study Laos/Thailand3 was approved, and I enclose a Status Report on developments during the intervening period which may be of interest. I also enclose a paper entitled “What the Enemy Has Not Done in Laos” which may also be of some help to the participants in the policy review. Copies of these two papers will be separately disseminated to all members of the Interdepartmental Regional Group/East Asia.

Sincerely yours,

Nick
[Page 719]

Enclosure 14

CONTINGENCY STUDY LAOS/THAILAND

Status Report as of May 1, 1968

I. Military Situation In Laos

In the approximately six weeks since our Contingency Study was approved, there has been no major enemy attack in Laos. The NVA has continued to apply pressure not only in South Laos around the provincial capitals of Saravane and Attopeu, but also around Thakhek on the Mekong in Central Laos and against guerrilla posts in north Laos. It has taken only a few minor friendly positions, for example Lahanam in southern Savannakhet province on April 13, and such successes were not the result of major military operations. The NVA still retains the capability to overrun much of Laos, but the approaching rainy season will soon limit the magnitude and speed of a possible new NVA offensive.

II. Possible Augmentation of Air Assets for Utilization in Laos

Consultations were begun with our Embassies in Vientiane and Bangkok about the possible utilization of Thai T–28’s (either “sheep-dipped” or overt) and additional deployment of US air assets to Thailand. Ambassador Sullivan in Vientiane believes that the political disadvantages would greatly outweigh the marginal military advantages of overt use of the Thai air force in Laos. [less than 1 line of source text not declassified] he considers it preferable to augment the number of “Class B” pilots (Thai pilots flying RLAF aircraft under control of our Air Attache in Vientiane). A much more significant increase of tactical deterrent air strength will result from the contemplated expansion of US air resources in Thailand, particularly in propeller planes which seem best adapted to operations in Laos. Ambassador Unger in Bangkok believes that there would be no Thai political objections to the increase of US aircraft in Thailand if the purpose is to shore up the defense of Laos. This finding should help in speeding up deployment of additional tactical prop-aircraft to Thailand, though they could not be there in time to help counter an enemy offensive in Laos should one occur before the advent of the rains later this month.

III. Lao Call for Article 4 Consultations

On December 30 and February 29 Souvanna Phouma wrote to the Co-Chairmen of the Geneva Conference denouncing the North Vietnamese attacks in Laos and calling for consultations among the signatories under Article 4 of the 1962 Geneva Agreement. In March the UK suggested [Page 720] to the USSR that the Co-Chairmen circulate both letters along with a joint message for which they submitted a draft. Since the USSR has not replied, the UK at our urging has now finally decided to circulate both of Souvanna’s letters unilaterally on May 6.

IV. ICC Activity

1.
The February 21 ICC “visit” to Saravane (which may have played some role in restraining the NVA in South Laos) was followed by a visit of the Indian Chairman and the Canadian Commissioner on April 12–13 to Attopeu, Saravane and Lao Ngam. The Polish Commissioner again declined to join his colleagues. Although a mortar attack on Attopeu occurred while the ICC visit was taking place there, it is possible that the increased ICC activity may have some deterrent effect on Hanoi. At any rate, it helps to buck up Lao morale. We can claim no credit for the more positive Indian attitude in the ICC, which seems due largely to the personality of the new Indian Commissioner and some tactical gaffes by the Pole, who has now completed his tour of duty and been replaced.
2.
To encourage the Indians in their forward posture, we have suggested to several governments that New Delhi be encouraged to maintain its present relatively active attitude. The UK and Japan have taken action. France is willing to help, though in a lower key. We do not wish demarches in New Delhi to be too obviously orchestrated, so are still holding in reserve the encouragement of similar diplomatic actions by Germany and Thailand, both of whom are judged to be willing. Australia will weigh in with Prime Minister Gandhi when she visits Canberra in May. We have no illusions that even the cumulative effect of such efforts will have any decisive influence on the Indians, but it may make backsliding more awkward for them.

V. Laos and US/DRV Negotiations

Souvanna and the King are anxious that US military support for Laos will continue even while we de-escalate in North Vietnam and that Laos should benefit promptly from any lessening of hostilities in South Vietnam. To that end, they are seeking both private and public assurances from us that our negotiations with Hanoi will include a strong requirement that the Geneva Agreements of 1962 should be respected by North Vietnam.

Enclosure 25

WHAT THE ENEMY HAS NOT DONE IN LAOS

The Contingency Study of March 23 implies certain advantages of continued U.S. adherence to the Geneva Agreements of 1962. These may [Page 721] become more apparent by sketching out some of the actions the enemy continues to be capable of taking in Laos but which he has not yet taken, partly because we have not overtly upset the framework of the Geneva settlement.

1.
Setting up a rival (“neutralist”) government in Laos.
2.
Obtaining Soviet and Chinese recognition for such a government.
3.
Raising the specter of Chinese intervention.
4.
Pushing to the Mekong on a broad, or even limited, front, thus diverting U.S. and Thai troops.
5.
Pushing to Luang Prabang, thus delivering a major psychological blow to the Lao Government forces.
6.
Conducting terrorist raids against vulnerable Lao targets.
7.
Denouncing US/SVN intervention in the Prairie Fire zone on the basis of hard evidence.
8.
Exploiting sensitive U.S. operations in Laos, using materials and equipment captured at Site 85 and in the Muscle Shoals area, and aircraft downed in Laos.
9.
Increasing harassment of U.S. economic as well as military activities in Laos.
10.
Conducting terrorist raids against U.S. bases in Thailand, such as Nakhon Phanom.

If the U.S. were to abandon its formal adherence to and observation of the limitations of the Geneva Agreements of 1962, any inhibitions on the communist side would disappear and the Geneva settlement would collapse entirely; the Royal Lao Government would quickly lose much of the international (including communist and neutral) support which it now enjoys by virtue of its adherence to the Geneva agreements, and leave us as virtually the sole supporter of a no-longer neutral Laos—a costly and diplomatically poor position to be in.

We would then have to deal with a government whose area of control was rapidly shrinking and which would have lost the ability to appeal to the Geneva Agreements which had created the basis for its very existence.

  1. Source: Department of State, Central Files, POL 27 LAOS. Top Secret. Bundy sent a draft of this letter to Katzenbach under cover of a memorandum of May 3, drafted by Herz on April 23, recommending that Katzenbach sign the letter and give it to Nitze on the evening of May 8. A note on another copy indicates that Nitze saw it. (Washington National Records Center, RG 330, OSD/Admin Files: FRC 73A 1304, Laos 381, 1968)
  2. In an April 13 letter to Katzenbach, Nitze stated that he knew Katzenbach shared his concern over the deteriorating situation in Laos. Nitze reported that he supported a JCS recommendation for a broader effort (than the contingency study) to reassess U.S. policy for Laos in the Interdepartmental Regional Group/East Asia. According to Nitze, “the primary purpose of the reassessment would be to identify means by which international support might be obtained for the elimination of North Vietnamese exploitation of the Geneva Agreements and to consider alternatives that might offer better prospects of promoting U.S. interests.” (Department of State, Pol 27 (LAOS)
  3. See the attachment to Document 350.
  4. Secret.
  5. Top Secret.