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

943. Paris SEATO for Hilsman and Felt. Embtels 882 and 888.2 Your recommendations receiving full review here. Meanwhile suggest you hold off requesting explanatory letter from Diem and from reducing counterpart support to GVN military budget.

What is your judgment as to probable GVN actions if support to GVN military budget were revised downward as suggested reftel?
If these revisions made what likelihood that GVN would agree use these funds for CI Program?
Why do you believe that GVN will not make 1.3 billion piasters available for CI?
Do you expect GVN could be persuaded to make their piasters available under acceptable procedures?
Would GVN likely agree to provincial advisers continuance and joint CI fund if funded (a) with U.S. owned Sec 104 (c) PL-4803 piaster proceeds; (b) with more purchased piasters?
What is your estimate amount needed carry on non-CI economic projects and fund USOM operating expenses for remainder CY 63?
What is possibility at this time or in near future of altering the proposed counterinsurgency joint fund to give GVN greater voice in planning and control of operations, and at same time continue an effective CI effort?

Request reply Tuesday COB Washington time.4

  1. Source: Department of State, Central Files, AID (US) S VIET. Secret; Operational Immediate. Drafted and cleared by Wood. Repeated to CINCPAC for POLAD and to Paris for the U.S. Delegation at the SEATO Council meeting.
  2. Documents 81 and 82.
  3. Section 104 (c) of P.L. 480, as adopted on July 10, 1954, stipulates that the President may enter into agreements with friendly nations to use the foreign currency which accrues under P.L. 480 for the following purpose: “To procure military equipment, materials, facilities, and services for the common defense.” (68 Stat. 454)
  4. See Document 85.