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1. General Collins will be present to discuss his written report of 20 January 1955 (see TAB A). The principal points in this report are:

. Because Free Vietnam security lies in the military and moral support it may receive under the Manila Pact, the determination to react in the event of a renewal of hostilities in Indochina should be strongly affirmed by the signatories at the forthcoming Bangkok conference.

. There is a real doubt as to French intentions and objectives in Indochina. Although General Ely is cooperative in Free Vietnam, the Sainteny mission in north Vietnam appears eager to "coexist" with the Communists. The U. S. Government should have this matter out with the French Government once and for all.

. Diem is the best available Prime Minister.

. The principal efforts of the U. S. at present are to aid the Vietnamese to develop and execute a series of emergency programs covering the military establishment, agrarian reform, refugee resettlement, fiscal management, and the establishment of a national assembly. Agreement by the U. S. to assume training responsibility and to grant financial aid to a reorganized and revitalized national army should have a stabilizing effect.

. The prospect of national elections in 1956 hangs as a threat over Free Vietnam.

. The U. S. should expand the funds, material, and effort required to strengthen the country and help it retain its independence. Without our aid, Vietnam will surely be lost to Communism. If Diem has firm U. S. support and guidance, and French cooperation, he has a reasonable prospect for success. This chance of success is well worth the gamble.

2. The Planning Board has discussed the report, and the following are the its comments:

. It concurs in the desirability of a strong affirmation at Bangkok of allied determination to implement the Manila Pact, should the need arise.

. The State Department contends that we have had "this matter out with the French" at various high-level conference and that the French have agreed in principle to our position in writing. The Planning Board believe we should Rh