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maintenance, and except for the supply of spare parts no significant maintenance problems were anticipated.

Admiral Sharp, Commander in Chief, Pacific, believed the MACV concept to be practical, but was quick to point out that worldwide demands for the UH-1 were such that accelerated deliveries to the Philippine government were unlikely. In light of the aircraft shortages, the limited capability of the Philippine Air Force, and the lukewarm attitude of the Philippine government, Admiral Sharp viewed the plan as impractical. The proposal was again reviewed by the Secretary of State and the Secretary of Defense, who concluded that a Philippine helicopter squadron to support the Philippine Civic Action Group could not be justified and would be an uneconomical use of the limited helicopter resources. The use of Philippine pilots in South Vietnam to support operations of the Philippine group, however, would be militarily beneficial. Washington finally decided that U.S. authorities should neither raise the question of a Philippine helicopter squadron nor take the initiative in obtaining Philippine pilots to serve with U.S. units supporting the Philippine group. Should the Philippine government again raise the question, however, the U.S. response would be that a careful review of the helicopter inventory and competing high priority military requirements appeared to preclude the formation of a separate Philippine squadron in the near future.

While high-level discussions of additional Philippine support were taking place, work continued on the Philippine pacification effort, the Thanh Dien Resettlement Project. Indeed its establishment and presence had bred complications. By January 1967 the Viet Cong began to realize that the project was a threat to their cause. Harassment of work parties became more frequent and intense. In cases where innocent civilians were not involved, the task force returned the enemy's fire with all available organic and supporting weapons. Even with these interruptions work progressed on the resettlement project and related tasks and the first refugee families were resettled in early April.

Enemy opposition to the Philippine group intensified. The Viet Cong attacked the Thanh Dien area both directly and indirectly. In addition to attacks by fire and a propaganda campaign, attempts were made to infiltrate the Philippine equipment park at Hiep Hoa although attacks had little effect.

In the Philippines developments indicated that there would be extended debate over the appropriation for the Philippine Civic Action Group, Vietnam, for the next fiscal year. Although the appropriation bill had passed the House by an overwhelm[ing]