204. Memorandum From Chester L. Cooper of the National Security Council Staff to the President’s Special Assistant for National Security Affairs (Bundy)1

SUBJECT

  • The Status of Non-Military Actions in Vietnam

Attached is our status report for non-military programs covering roughly the past five weeks.2 It may provide the President with a useful feel for what we’ve been doing.

The very nature of the non-military struggle in Vietnam is such that we cannot realistically expect dramatic progress from one month to the next. During the past month there have been some concrete results and advances. Both our own efforts and those of the Vietnamese have been impressive, but these efforts must be measured against a backdrop of enormous economic, social, political and security problems. Much is being done. Much more has yet to be done.

At the national level, the most encouraging sign continues to be the growing responsiveness of the GVN leadership to the requirements in this field and its willingness to take new initiatives. This constructive [Page 576] attitude is particularly evident in the areas of pacification program planning, rural reconstruction, labor relations, land reform. But this is but a first step. New programs must be implemented, enlarged, and sustained over the long run. The capabilites of the GVN to perform well here have yet to be proven. Its appeal and ties with the people, especially the peasantry, remain tenuous.

At the GVN working level, the picture continues to be a dismal one of too much corruption, too little motivation. At the grass-roots level there continues to be decreasing effectiveness of local government. However, the GVN, supported by Ky personally, is giving renewed attention to this critical problem. Moreover, USAID efforts to improve the flow of funds to rural construction operations appear to be having positive results. It is the Mission intention, of course, to see that this attitude and trend continue and improve.

The most critical immediate problem is the inflation which could undo the good effects of all our programs. This is being tackled vigorously not only on the monetary front, but by increasing the supplies of essential goods to areas outside of Saigon. Another critical problem, one that does not come through a program-by-program report, is the growing scarcity of manpower and materials in Vietnam. This is a matter calling for a comprehensive program review both here in Washington and in Saigon. You will be hearing more on this subject shortly.

C
  1. Source: Johnson Library, National Security File, Country File, Vietnam, 41-Pt. Program in Non-Military Sphere in SVN. Secret.
  2. Not printed. Bundy sent the report to the President under cover of a note that reads: “If you have time for it, this report on the non-military program in Vietnam is worth your attention—this continues to be our toughest long-range set of problems, in spite of all the headlines.” There is an indication on the covering memorandum that the President saw it. (Ibid.)