Office of the Historian

343. Telegram From the Department of State to the Embassy in Laos1

Washington, February 9, 1956—6:45 p.m.

811. Joint State–Defense–ICA message. Vientiane 967 passed CINCPAC.2 You may inform Lao Government US prepared support [Page 742] force level 25,000 for Calendar Year 1956 in accordance CINCPAC plan. This would include development 721-man air force over three-year period. JCS concurrence modest 1,350-man increase given for psychological, political, morale aspects problem. Figure obtains this calendar year only and subject review in light political military situation prevailing later date. PEO meanwhile requested undertake thorough study force basis question. Lao Government should be urged reduce to 25,000 level rapidly as possible, with target date March 15.

With respect aid figure, Icato 4903 suggested $30 million not be revealed Lao Government only because amount considerably lower than that desired by Lao and knowledge thereof might damage morale. We recognize political and planning advantages communication definite calendar 1956 aid figure to Lao Government. We nevertheless reluctant authorize disclosure figure substantially greater than $33.65 million already approved, particularly in absence detailed justification additional amount and in view Lao accumulation large sums unused dollar reserves.

Owing urgency matter reported by Country Team however Washington agencies agree your telling Lao Government US military support calendar 1956 will be $37.5 million including $2.5 million unexpended funds obligated CY 1955 and now in pipeline. You should add two reservations you recommend reftel.4

FYI: Actual breakdown $37.5 million as follows: $30 million DS and $3.65 million DFS already approved; $2.5 million unexpended in calendar 1955 (in pipeline); $.5 million carry-over 1955 Cambodian program; $.85 million additional CY 1956 funds. We anticipate actual expenditures, barring greatly increased hostilities, will be below this figure owing reduction forces in being to 25,000 and more precise cost planning made possible upon arrival PEO controllers.

Dulles
  1. Source: Department of State, Central Files, 751J.5/2–356. Secret; Priority. Drafted by Byrne and cleared by PSA, FE, Defense, and ICA. Repeated to Saigon to pass to MAAG and CINCPAC.↩
  2. Document 339.↩
  3. See footnote 3, Document 339.↩
  4. Done on February 14, according to telegram 1021 from Vientiane, February 14. (Department of State, Central Files, 751J.5/2–1456)↩