Office of the Historian

60. Telegram From the Ambassador in Vietnam (Durbrow) to the Department of State1

Saigon, March 28, 1959—10 a.m.

2042. Country Team message. In past week Pres Diem and close associates have made particular point call attention Country Team members to alleged intensification Viet Cong operations Laos and Vietnam. (Diem made particular point to pass on this information to General Williams and me March 20. Same day Thuan gave similar story to Gardiner, who was about to leave for consultation. Diem asked me be sure Gardiner understood seriousness of situation before he left. According Diem, strength Viet Cong in Laos west of seventeenth parallel considerably increased recently. This so far not confirmed by Vientiane.) In Vietnam he reports Communists infiltrating [Page 177] and stepping up activities Ca Mau Peninsula in extreme south. North of Saigon ARVN reported be engaged sweep to capture tough Viet Cong band which may number 300, probably including some Chinese. Diem claims GVN security forces have destroyed their camp and captured several tons rice and other supplies as well as large number identity cards. Although contact reportedly made with band March 7 and again on March 17 final phase of sweep did not get under way until March 23.

We have some independent information to confirm some of these reports but they do not show abnormal rise in activity for this season of year. I suspect incidents deliberately pointed up by President as part of his usual spring offensive to influence volume of US aid to VN. These reports coincided with aid committee meeting to discuss 1960 program and followed closely my March 15 discussion with Vice President and Thuan repeating our instructions to limit our contribution 1960 military budget to $130 million and discontinue contribution to SDC. (Gardiner had told them this some weeks before.) In addition to passing us reports concerned Viet Cong operations, President through Ladejinsky and Thuan has warned he cannot consider cut in 1960 military budget, would not “accept” any reduction US military budget support below 1959 level, nor accept discontinuance our SDC contribution, and might refuse to accept “economic” aid if our military budget support is cut.

While there may be some substance to reports Diem has given us, I see no reason retreat from our position re SDC and limiting our 1960 military budget contribution to $130 million and asking an increase own support. MAAG preparing guidelines for annual joint MAAG–ARVN hearings on 1960 military budget and I have asked them to include the $130 million figure in the guidelines and to set target maximum $165 million total budget in view tight revenue situation GVN will face in 1960.

Please draw this message attention Gardiner.2

Durbrow
  1. Source: Department of State, Central Files, 751G.5–MSP/3–2859. Secret; Limit Distribution.↩
  2. A marginal note on the source text by Mendenhall reads: “Done, 3/31/59. JAM.”↩