74. Telegram From the Department of State to the Embassy in Vietnam1

910. State/AID/Defense message. Embtel 860.2 Concur with your plan tell Nhu and Diem further procurement and shipment hamlet kit materials, PL-480 and AID dollar procurement items for hamlets not justified unless there adequate piaster fund and agreed procedures for piaster use.

You may further wish indicate that new approvals are currently pending in AID/W for additional funds for direct counter-insurgency procurement and for additional Title II PL-480 commodities. We may hold up these approvals pending resolution piaster issue. FYI, we will continue processing papers assuming satisfactory outcome your negotiations End FYI.

  1. Source: Department of State, Central Files, AID(US) S VIET Secret; Operational Immediate; Limit Distribution. Drafted by Heavner and Stoneman and cleared by Wood, Rice, and Hilsman, and in DOD/ISA in substance by Heinz. Repeated to CINCPAC for POLAD.
  2. Document 70.