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

165. Joint State–Defense–ICA message.

1.
Vietnamese Embassy handed Department informal memorandum dated July 17 entitled “Aid Plan for Self Defense Corps”,2 summary of which follows in next three paragraphs. Requested appointment for Vietnamese Ambassador to discuss subject with Department officer.
2.
On basis 60,000 man strength at 300 piasters per month each, MAAG Saigon approved initial two-year support amounting to 12,254,000 dollars for 1956 and 1957. Selection recruitment difficulties delayed establishment Self Defense Corps until late 1956. Therefore MAAG provided only 122,200,000 piasters for CY 1956 and 211,907,000 piasters for CY 1957 amounting to total of only 9,545,874 dollars out of 12,254,000 approved.
3.
Tran Trung Dung asked MAAG for continuation of support for CY 1958. Received reply Country Team would recommend CY 1958 support only for 30,000 men at rate of 300 piasters per month each. MAAG added DS budget support of Self Defense Corps expected terminate December 31, 1957 and since no financial plans made in Washington to continue support after that date Country Team recommendation no guarantee funds available.
4.
Memo requested Viet-Nam receive for 1958 “at least” support set forth in recommendation attributed to MAAG in paragraph 3 above, that is, 300 piasters per man per month for 30,000 men. Memo further described this “reduced” support as insufficient and attempted justify 60,000 man corps by reference to size of Viet Minh [Page 829] armed forces. Concluded with request 6,054,000 dollars be provided for CY 1958 support of Self Defense Corps at present size.
5.
Before discussion with Vietnamese Ambassador would appreciate your comments.
Dulles
  1. Source: Department of State, Central Files, 751G.5–MSP/7–2557. Confidential. Drafted by Corcoran and cleared with FE/SEA and with ICA and the Office of the Secretary of Defense in substance.
  2. Not found in Department of State files.