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November 17, 1953

General Collins has submitted a report and his recommendations regarding force levels in Viet-Nam. A breakdown of the proposed forces as recommended is attached as Tab A.

In summary, the main points of his report are as follows:

1. It would be disastrous if the French Expeditionary Corps were withdrawn prematurely since otherwise Viet-Nam could be overrun by an enemy attack before the Manila Pact Powers could act.

2. The United States should continue to subsidize the French Expeditionary Corps during calendar year 1955, at least to the degree of one hundred million dollars, to encourage the French to retain sufficient forces. (The current rate of U.S. subsidy is four hundred million annually).

3. The Vietnamese National Army, now. totaling 170,000 should be reduced by July 1955 to 77,000. It should be placed under Vietnamese command and control by that date. It would be organized into six divisions, three of which would be field elements designed to reinforce the balance of the Army which would be stationed in regimental and battalion garrisons throughout the provinces. A small Air Force and Navy is provided for. The cost to the U.S. would be two hundred million dollars annually. (This is less than current costs). Rh