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EYES ONLY AMBASSADORS. RE SECTO 389.

Defense Dept reports that five-power military conference at its plenary session of June 4, under chairmanship General Valluy, amends and approved Conference Study No. I: "Intelligence Survey of Military Situation in SSA Ares."

In connection with review of intelligence survey, Gen Valluy presented his own evaluation military situation Tonkin Delta as follows:


 * 1. If Tonkin is lost, military will not rpt not be reestablished anywhere.


 * 2. Anyone can find on map a line with tactical characteristics which theoretically should permit reestablishment, such as Laos bottleneck or eighteenth parallel, but Valluy said he could affirm there would be no fores to man this line.


 * 3. Valluy said he was not rpt no speaking of French forcwes in this connection but meant to indicate that there was no rpt no southern Vietnamese who could oppose northern Vietnamese.

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