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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 ASSISTANT SECRETARY OF DEFENSE WASHINGTON 25, D.C. Rh

INTERNATIONAL SECURITY AFFAIRS

I-15565/61

MEMORANDUM FOR MR. GILPATRIC

SUBJECT: Joint Action Program Proposed by the Vietnam-United States Special Financial Groups

1. In the report, subject as above, submitted by Dr. Eugene Staley, Chairman of the U.S. Special Financial Group, to Presidents Ngo Dinh Diem and John F. Kennedy, the fiscal and economic implications of increasing the Vietnamese Armed Forces to 200,000 have been described. A rough, order-of-magnitude estimate of the dollar costs of this force level was made by the Special Financial Group. The report indicate s that approximately $42,000,000 in addition to requirements already planned would be required for the military portions (including the increase to 200,000 force level) of the overall program of joint action proposed during the 18-month period 1 July 61 - 31 December 62.

2. With favorable action by the Congress on the FY-62 MAP submission, and necessary decisions to adjust priorities of other requirements, funds can be made available to meet these additional requirements.

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