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

389. Memorandum From the Deputy Assistant Secretary of State for Far Eastern Affairs (Jones) to the Deputy Under Secretary of State for Political Affairs (Murphy)¹

Washington, July 26, 1957.

SUBJECT

• Status of TERM (Temporary Equipment Recovery Mission) in Viet-Nam

In reply to the question you raised at a recent G staff meeting we are submitting the following information from the TERM mission.

You will recall that TERM was established in Saigon, Viet-Nam in June 1956 to recover and to ship out reparable MDAP material excess to Indochina needs, to improve the logistical capability of the Vietnamese armed forces, and to dispose of salvage and scrap returned to U.S. control. The taking over by TERM of what was in substance the logistical function of MAAG released MAAG’s strength of 342 for training activities and provided through TERM 350 military personnel for logistics.

The International Control Commission (ICC), established by the Geneva Accords and consisting of Indians, Poles, and Canadians, has not accepted TERM as a legal activity and has continuously questioned the legality under the Accords. Correspondence on the matter continues between the Vietnamese Government and the ICC. During the first nine months of its existence, starting with June 1, 1956, TERM has accomplished the following:

1. Shipped out more than $36,000,000 worth of MDAP equipment (acquisition cost) from Viet-Nam, notably to Taiwan, Thailand, the Philippines and Japan. This is over and above the $137,000,000 worth of MAP equipment that had been shipped out prior to the TERM augmentation of the MAAG.

2. Converted the Vietnamese armed forces to the U.S.-type supply system, and assisted in the establishment of a functional logistical organization.

3. Arranged for the participation of Philippine technicians in on-the-job training, and made available spare parts and tools so that equipment could be maintained.

4. Assisted in the opening of the Saigon shipyard for the Vietnamese Navy.

5. Implemented a vehicle rebuilding program outside Viet-Nam.

6. Redistributed substantial amounts of matériel turned over by the French to the Vietnamese, Cambodian, and Lao armed forces.

7. Also 391 Vietnamese military organizations were subjected to detailed end-use inspection and deficiencies were called to the attention of the Vietnamese authorities.²

1. Source: Department of State, FE–VN Files: Lot 66 D 193, MAAG–TERM 1957 Confidential. Drafted by Jones and Corcoran.
2. The following marginal note is written on the source text in Murphy’s own hand: “Howard, this is an excellent record and proves the wisdom of the policy. RM, 8/8/57”.