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

While the Government and people of Vietnam are prepared to carry the heavy manpower burden required to save our country, we must know that we cannot affortafford [sic] to pay, equip, train and maintain such forces as I have described. To make this effort possible, we would need to have assurances that this needed material support would be provided. I have drawn on our past experience of United States support we have received to make some extremely rough estimates of the costs of these proposals.

The costs of providing essential initial equipment to the added forces under the Military Assistance Program would probably be in the neighborhood of $175,000,000 with deliveries to be distributed over the next two and one-half years as units can be activated. If the United States assumes the task of providing this initial equipment for the additional forces, I understand that the annual Military Assistance Program for force maintenance will increase by about $20 million above the level of help support for the presently authorized 170,000 force.

The Vietnamese Military Budget, which includes piaster requirements, must also be supplemented. As you know, Vietnam contributes to this budget to its fullest capability now with respect to existing forces. Despite our best efforts, your Government has largely supported this budget through Defense Support Assistance. Although we have made significant progress in developing our economy in the last four years, the support of even the inadequate armed forces we have has far exceeded the modest capabilities of the economy of our small country. In order to carry out the expansion of forces, the piaster military budget now averaging nearly 7.0 billion piasters a year will have to be supplemented. As I see it, the annual maintenance cost will increase gradually during the force implementation and will ultimately level off at approximately 10.60 billion piasters.

This program, I realize, will be expensive in money, equipment and personnel. The benefits to be gained, however, in preventing the subjugation of our free people and in establishing a solid obstacle to the advance of communism, I know you will agree, far outweigh the cost. With your support, we stnadstand [sic] determined to survive in independence and freedom.

It goes without saying that in the face of the extremely serious situation created by the communist aggressor, we must temporarily Rh