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1. NSC 5405, approved 16 January 1954, continues to be the policy of the United States with respect to Southeast Asia.

2. It is highly improbable that Communist agreement could be obtained to a negotiated settlement which would be consistent with basic United States objectives in Southeast Asia. (JCS memorandum, 12 March 1954).

3. At Geneva, the French Government under continued domestic pressure will favor a negotiated settlement of the fighting in Indochina at almost any price.

Tho French Government has teen under considerable domestic pressure to terminate the hostilities in Indochina. In order to forestall a showdown prior to Geneva, M. Laniel, in a public statement, proposed six points as conditions for a cease-fire in Indochina. These six points would unquestionably be unacceptable to the Communists, particularly if reinforced by additional conditions to assure enforcement of the armistice terms. However, domestic pressure on the French Government to terminate hostilities is expected to increase during the course of the Geneva Conference, rather than decrease. In view of this, it would be extremely difficult for the French Government not to accept an agreement which would be less than the conditions of the Laniel proposal. It should be noted that although the above factors make it almost certain that the French Government will seek agreement Geneva at practically any price, there has been no indication that this "price" has boon considered realistically by the French Government or public.

Communist tactics at Geneva are likely to follow closely those tactics employed by Communist negotiators at Panmunjom. Communist intransigence and other tactics, short of actually breaking off negotiations, led to prolonged discussions which worked to the disadvantage of our side. As a result, the Korean Agreement in its final form produced an armistice bringing about a cease-fire but with which is has been impossible to assure Communist compliance. On the other hand, in Korea the United Nations Command is required to live up faithfully to the terns of the armistice. It should be noted that this problem would be considerably more complex and disadvantageous to the French in Indochina.

The Department of Defense has considered the military implications of terminating the fighting in Indochina under conditions less than a military defeat of organized Viet Minh forces. It was the conclusion of tho Department of Defense, as indicated in Assumption No. 2 above, that inasmuch as it is highly improbable that Communist agreement could be obtained to a negotiated settlement which would be consistent with basic

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