Foreign Relations of the United States, 1955–1957, Vietnam, Volume I

224. Telegram From the Secretary of State to the Embassy in Vietnam¹

Washington, July 6, 1955—6:45 p.m.

49. 1. You have seen joint tel 5681² replying your 5769.³ Hope obligation $234.8 million will satisfy needs Vietnamese military CY ’55.

2. Estimated CY ’56 costs your 5769 are considerably above amounts Washington agencies have been considering based on previous country team submissions. Do you believe appropriate now begin discussions Vietnamese concerning CY ’56 military program or have such discussions already begun? If such discussions should begin you may do so on basis consideration our 5681 provided other members country team agree. Note Chau stated Vietnam counting US aid to support 200,000 man army. Paris Embtel 5777 rptd info Saigon 792.⁴ Also MAAG Saigon monthly report May states new army figure 142,000 exclusive sect forces to be integrated discussed with FAVN.

3. Your 5769 requested Washington decision force levels CY ’56. Such decision not likely near future and can not be made without further data from country team Saigon (Deptel 5681). Aid request to Congress made basis 100,000 man force. Would be difficult if not impossible to secure additional $150 million for Vietnamese CY ’56. On other hand Department does not believe under present circumstances aid figure should set exact force levels or that exact force levels should be set primarily by consideration fear inflation or economic dislocations. Recall Barrows stated to OCB Working Group that if procedures could be set up so CY ’55 program could be carried out without inflation then could handle aid program for ’56 of magnitude support forces costing any figure within range being considered country team Saigon, i.e., $180 to $336 million.

4. Department hopes adequate Vietnamese force levels can be maintained at cost US within limits which will be set by foreign aid appropriation. Possible solution is reduction cost per man which is very high and further refinement of minimum necessary force levels. Will be interested in Embassy and country team report this problem.

Dulles

1. Source: Department of State, Central Files, 751G.00/6–1155. Secret. Drafted by Price and cleared in draft by PSA, S/MSA, and FE.
2. Document 218.
3. Document 208.
4. In addition to support for the 200,000-man army, Chau envisioned, in the event of an attack from the North, U.S. military support in the form of air and naval power if French forces withdrew from South Vietnam. (Department of State, Central Files, 751G.00/6–2955)