280. Telegram From the Department of State to the Embassy in Vietnam 1

700. For Ambassador Lodge. Request you discuss following instructions with Brent, AID and report your joint views before implementing.

You are authorized to inform GVN, at your discretion, but not earlier than Monday Washington time that US prepared to resume CIP and PL 4802 in order prevent disruption of war effort and economy and avoid hardships on population.

You are authorized to negotiate extension of the existing PL 480, Title I Sales Agreement to provide an additional three months supply of cotton, wheat flour and milk. Separate cable3 today provides more detailed negotiating instructions, including amounts as calculated here.

USAID/Vietnam is hereby authorized to issue procurement authorizations for the remaining approximately $5 million of the existing $18.5 million CIP allotment. A separate cable today transmits program approval and allotment information for $20 million additional for CIP.4

We will proceed with pending project actions, i.e. Saigon water and power projects.

[Page 541]

The CIP funds should be used within the framework of the FY 64 CIP program as earlier planned, and applied to those commodities which are already or which promise to be in short supply. Particular attention should be given to potential shortages that might have political repercussions on the new Government or on relationships between the U.S. and the new Government. At the same time we must, as you point out, avoid the appearance of giving the new Government a blank check.

Pursuant your suggestion, we plan no public announcement of resumption of CIP projects and PL 480. However, after hearing from you, in response inevitable questions in wake of recognition new Government, we plan say all types economic aid now going forward.

  1. Source: Department of State, Central Files, AID (US) S VIET Secret; Immediate; Limit Distribution. Drafted by Stoneman, Janow, and Hilsman and cleared by Forrestal and Rusk and in draft by Bell.
  2. Agricultural Trade Development and Assistance Act; 68 Stat. 454.
  3. Not found.
  4. Not found.