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 now insist that the French implement this agreement, in practice as well as in principle, in all respects. For example, we should insist that they remove the expensive FOA-financed machinery from the coal mines north of Hanoi. This mine plays a large role in the economy of the area, providing power for the region, and at present is worked by the Communists for their benefit. Despite French assurances, nothing is being done to remove the machinery.

. It concurs that Diem is probably the best available Prime Minister.

. It concurs in the present emergency programs subject to screening in detail by the departments and agencies concerned.

. It concurs that guidance regarding the 1956 elections is necessary and that this should be developed and sent to General Collins within the next month or six weeks.

. It concurs in the order of magnitude of the cost to the U. S. of the military and non-military programs for CY 55 ($327.3 millions) and CY 56 ($196.6 million). There appears to be no insurmountable obstacles to the financing of these programs. The force goals for the Vietnamese armed forces have already been approved by the Joint Chiefs of Staff.

3. It is recommended that:

. You approve the report of General Collins and expression the appreciation of the DOD for his work in Indochina.

. You support the Planning Board positions regarding the above major points in the event the Council is asked to act on them. Rh