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The National Security Council and Mr. Tuttle for the Secretary of the Treasury at the 196th Council meeting on May 8, 1954, discussed the recommendation of the Joint Chiefs of Staff on the subject, and adopted the following statement of policy with respect thereto (NSC Action No. 1111):

"In the event of a cease-fire in Indochina in advance of an acceptable armistice agreement, including international controls, the shipment of military end-items under US MDAP provided under the "Agreement for Mutual Defense Assistance in Indochina between the United States of America and Cambodia, France, Laos, and Vietnam" will immediately be suspended. In such event, the entire question of US aid to Indochina will be re-examined in the light of circumstances then existing. The US also assumes that, in such event, military end-items previously delivered in Indochina by the US will be recovered or destroyed to the maximum practicable extent."

Accordingly, the above statement of policy, as approved by the President, is transmitted herewith to the Secretary of Defense for guidance and appropriate action, and to the Secretary of State and the Director, Foreign Operations Administration for information.

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