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

8. Vietnam and Thailand are the immediate- and most important -- trouble spots, critical to the U.S. These areas require the attention of our very best talents -- under the very closest Washington direction -- on matters economic, military and political.

The basic decision in Southeast Asia is here. We must decide whether to help these countries to the best of our ability or to throw in the towel in the area and pull back our defenses to San Francisco and a "Fortress America" concept. More important, we would say to the world in this case that we don't live up to treaties and don't stand by our friends. This is not my concept. I recommend that we move forward promptly with a major effort to help these countries defend themselves. I consider the key here is to get our best MAAG people to control, plan, direct and exact results from our military aid program. In Vietnam and Thailand, we must move forward together.

a. In Vietnam, Diem is a complex figure beset by many problems. He has admirable qualities, but he is remote from the people, is surrounded by persons less admirable and capable than he. The country can be saved -- if we move quickly and wisely. We must decide whether to support Diem -- or let Vietnam fall. We must have coordination of purpose in our country team, diplomatic and military. The Saigon Embassy, USIS, MAAG and related operations leave much to be desired. They should be brought up to maximum efficiency. The most important thing is imaginative, creative, American management of our military aid program. The Vietnamese and our MAAG estimate that $50 million of U.S. military and economic assistance will be needed if we decide to support Vietnam. This is the best information available to us at the present time and if it is confirmed by the best Washington military judgment it should be supported. Since you proposed and Diem agreed to a joint economic mission, it should be appointed and proceed forthwith.

b. In Thailand, the Thais and our own MAAG estimate probably as much is needed as in Vietnam -- about $50 million of military and economic assistance. Again, should our best military judgment concur, I believe we should support such a program. Sarit. is more strongly and staunchly pro-Western than many of his people. He is and must be deeply concerned at the consequence to his country of a communist-controlled Laos. If Sarit is to stand firm against neutralism, he must have -- soon -- concrete evidence to show his people of United States military and economic support. He believes that his armed forces should be increased to 150,000. His Defense Minister is coming to Washington to discuss aid matters. 9. The Rh