393. Telegram From the Ambassador in Vietnam (Durbrow) to the Department of State1
236. Joint Embassy/MAAG/USOM message. Ref: Deptel 165.2 Following are comments on paragraphs of referenced message:
Paragraph 2. SDC originally approved by joint State/Defense/ICA message DEF 92661 dated 8 Feb 563 which authorized $6.2 million for SDC support during CY 56 and tentatively programmed same amount for CY 57. Message further stated “inasmuch as corps are not fully organized assume all temporarily allocated funds CY 56 may not be needed since plan based on salaries for full 2 months.” Funds were budgeted on a calendar year basis and no authority exists to transfer unobligated balance of 56 to the same chapter of the following year. Nonexpended CY 56 and 57 funds cannot be utilized in CY 58. Recruitment difficulties were not only cause delay in establishing SDC. Unsettled condition of country and many pressing governmental problems contributed to delay. Although Washington approved SDC on 8 Feb and government was reminded continuously delay in establishing SDC meant loss of funds, a Presidential decree forming the SDC was not issued until 4 April 56. Furthermore, first official SDC units not formed until June 56. Since no funds were obligated or expended as of 30 April 56, country team directed withdrawal 94.3 million piasters in credit allocations on 18 June 56. The Vietnamese DOD request for reestablishment of this credit was denied on 21 Aug 56 by country team. CY 57 budget approved by Washington included $6.2 million for SDC’s support. Current expenditures based on present strength indicate that during remainder of CY 57 there will be a savings of about 15 million piasters.
Paragraph 3. By country team decision budget now being prepared for submission to Washington will include $3.1 million for [Page 838] support of SDC for CY 58. Until Washington action on budget is announced availability of funds for SDC during CY 58 will be unknown.
Paragraph 4. After careful study problem country team recommends US support a 30,000 SDC at rate of 300 piasters per man per month for CY 58. Maximum strength of SDC of 58,377 was attained throughout period Dec 56–Mar 57. Since Mar 1957 there has been gradual reduction to strength of 49,773 as of 27 July 57. Original plan for SDC was that by CY 58 internal security situation and overall development of Vietnam would have progressed to point where combined efforts of provinces and national government could finance project. Effective distribution in critical areas only, combining command and administrative functions with Civil Guard and acceptance of additional financial burdens by provinces can reasonably be accomplished. Such action would reduce need for US support by approximately one half. This does not mean SDC cannot be larger than 30,000 if government wishes to finance additional strength. However, country team position is that a 30,000 SDC can probably meet its particular internal security requirement during CY 58 if Vietnamese attack the problem realistically and conscientiously. It is doubtful that such action can be promoted until exact amount of CY 58 US support for SDC is known. An early Washington decision is recommended prior to final budget action to facilitate Vietnamese internal security planning for CY 58.
It obvious from GVN memo July 17 to Dept as well as from SecState Interior Chau’s conversation with me July 31 (memo conversation follows4) that GVN wants US to provide funds for 60,000 SDC not only for CYs 1956 and 57 but also for 1958 without regard to actual strength of Corps. This has never been US concept of our support of SDC. As stated under para 2 above unexpended CY 56 and 57 funds cannot be used in 1958 and as of this time we feel situation is such that US should support SDC of only 30,000 in CY 58.
- Source: Department of State, Central Files, 751G.5–MSP/8–357. Confidential. Passed to CINCPAC.↩
- Document 390.↩
- Not printed.↩
- In despatch 56 from Saigon, August 9. (Department of State, Central Files, 751G.5–MSP/8–957)↩