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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011

This funding program is discussed under two headings: (a) GVN Defense Budget (local currency) and (b) MAP. It is understood that these are estimated figures and that the Task Force will attempt more detailed estimates as programs are approved.

a. (Local currency GVN defense budget requirements in millions of dollars.)

1. To provide for defense against increased Communist insurgency, the GVN defense budget has had to be increased materially over the past two years. The GVN defense budget is mutually agreed upon by the GVN and MAAG. The budget for FY 60 and our present estimate for FY 61 and for FY 62 GVN defense budget are in dollars (Vietnamese FY is also CY):

The figures for FY 62 inlude the increased costs for the already approved (but not funded) actions as well as the additional actions recommended in this program.

2. Funding of budget: Funding of its defense budget is accomplished by GVN, with the US providing imported commodities which are Rh