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. When the people have confidence in their government and in its ability, through the Nationalist army, to give them the protection from Communist terrorism, which is necessary for business and commerce, then complete victory will be in sight.

The U.S. has greatly contributed to the success of the French in holding Indochina from the beginning. In January 1951, material was rushed from the docks of Haiphong to the battlefield of Vinh Yen, then being fought under the personal direction of Marshall De Lattre himself. Since then, delivery of aid has kept pace with changing French needs, often on a crash basis, down to the present heroic defense of Dien Bien Phu. U.S. aid has consisted of budgetary support, furnishing of end items, military hardware, and of technical training teams. The magnitude and range of this contribution is shown by the following very few examples. All of these figures are as of 31 March this year.

a. 785 million dollars has been allocated for the budgetary support of the French Expeditionary Force and the Vietnamese Army. This will assist in meeting budgetary requirements for pay, food, and allowances for these troops.

b. Under MDA Programs, a total of more than 784 millions of dollars has been programmed for the years 1950-54. Of this, more than 440 million dollars worth of military end items have been received.

c. To date, 31 March 1954, 441 ships have delivered a total of 478 thousands of long tons of MDA equipment to Indochina.

As in Korea, Iran, Malaya, and Burma, the war in Indochina is not a separate entity. It is another tentacle of the octopus, another brush fire on the periphery of the iron and bamboo curtains. The problem can only be solved completely if the masters of the Kremlin decide that Indochina should be abandoned in favor of more profitable enterprises elsewhere. However, ways and means exist to achieve a degree of success with respect to Indochina, beginning at the political level -- specifically at the level of Chiefs of State. What is then necessary is as follows:

a. An agreement must be re ached with the French to deliver their strongest possible assault upon the Viet Minh as soon as possible to reduce the efficiency of that force to its lowest potential.

b. Concurrently, the Associated States armies must be put through a training cycle designed to produce leaders and units and to develop confidence through skill and achievement. Such forces must be developed to the level of the ROK or Greek armies under American tutelage and material support for these forces must be in being and capable of replacing the French when they retire.

c. A defensive alliance of democratic nations of the Orient must be developed to provide future stability for the Associated States. The U.S. must establish leadership in this area by relieving the French in a similar manner as was followed in relieving the British for the responsibility of Greece.

d. The sovereignty and territorial borders of the Associated States must be guaranteed — under no circumstances should the country be allowed to divide on an arbitrary parallel such as in Korea. Rh