Office of the Historian

751G.5 MSP/9–453: Telegram

The Secretary of State to the Embassy at Saigon1

top secret
Washington, September 4, 1953—7:21 p.m.

375. Limited distribution. Following is summary status Franco-American exchanges new French military program and United States aid. Full text pertinent material pouched today, estimated transit time nine days. Material should be very closely held. Make available Trapnell.

French Government memorandum2 confirms acceptance in general Navarre recommendations on basis early United States commitment additional United States aid of magnitude about $400 million State, Foreign Operations Administration and Defense views now being formulated for National Security Council September 9.

Nine reinforcement battalions including Korean to be landed Indochina by November 1. Native force buildup for 1954 to be slightly decreased over previous estimates although 1953 goals will be exceeded.

French appear indicate presently programmed end items for delivery in 1954 will meet needs all forces Indochina. However French have also stated new requirements for unspecified number helicopters, two LST, one transport vessel and twenty-five C–47 aircraft. Only last item appears to have been submitted MAAG Saigon. Is this correct?

Exclusive MDAP aid, French show total 1954 cost native armies about 195 billion francs and thesis maintained this should be financed entirely from United States and Associated States sources. Of total, French estimate 60 billions could come from Associated States, leaving [Page 758] 135 billions to be financed by United States. Your views appreciated on capability Associated States to meet 60 billion figure, which in piasters is nearly double this year’s contribution.3

Dulles
  1. Drafted by Bonsal and Getz of PSA.↩
  2. For text, see p. 770.↩
  3. In telegram 423 from Saigon, Sept. 10, Ambassador Heath reported that MAAG Saigon had received formal requests for most of the additional end-items cited in the penultimate paragraph. With regard to the financial contribution of the Associated States, the Ambassador expressed the opinion that Vietnam, Laos, and Cambodia would fall substantially short of the amounts which were expected of them. (751G.5 MSP/9–1053)↩