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operation against Cambodia, the defense of Cambodia would require troops from other areas. French Union forces would retain the capability to launch limited offensive operations before the full onset of the rainy season, either in the Red River delta region or on the coast of Annam.

14. The political consequences in Indochina of the fall of Dien Bien Phu would be considerably more adverse than the strictly military consequences, although the two are interrelated. The defeat would increase the tempo of deterioration in the over-all French Union position in Indochina, particularly in Vietnam. The principal political consequences would be: (a) a major blow to French prestige among the Indochinese, and an increased conviction on their part that the French were unable to protect them against the Viet Minh; (b) a serious decline in French and Indochinese will to continue the war, and in particular a further decline in popular support in Vietnam for Vietnamese military programs; (c) exacerbation of French-Indochinese relations, partly as a result of increased Indochinese suspicions that the French will "sell out" to the Viet Minh; (d) a sharp increase of "fensefence [sic] sitting" among politically conscious groups previously disposed to support the Vietnam Government; and (e) a sharp increase, particularly among Vietnamese, of covert support of the Viet Minh. However, we believe that a general collapse of French and native governmental authority during the next two or three months would be prevented by the continued existence of organized French Union forces and the hope that the US might intervene in Indochina.

15. The political effect in Laos would probably be similar to that of Vietnam. However, the Laotians would probably display a greater disposition than the Vietnamese to stand by the French and to continue the war effort.

16. The political effect on Cambodia would be extremely uncertain. The internal security of Cambodia and a certain minimum stability might be maintained, but Cambodia's vulnerability to future Viet Minh pressure would increase.

17. The Viet Minh would make every effort to make political capital of their victory at Dien Bien Phu. They would concentrate on increasing the sense of hopelessness in the Associated States, and would seek to convince the Indochinese that the triumph at Dien Bien Phu signalledsignaled [sic] their imminent "deliverance" from colonial rule by fellow countrymen. They would intensify current efforts to enhance the status of the so-called "People's Governments" of Laos and Cambodia.

18. We believe that although the fall of Dien Bien Phu would not immediately lead to collapse of the French Union position in Indochina it would accelerate the deterioration already evident in the French Union military and political position there. If this trend were not checked, it could bring about a collapse of the French Union position during the latter half of 1954. It should be emphasized that this estimate does not consider the repercussion of major decisions in France or Geneva and elsewhere which are likely to have a decisive effect on the situation in Indochina.

Rh