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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011  progress. Viet nam can be an example in Southeast Asia for the progressive potentialities of men who are determined to remain free. We strongly urge that our two governments make this the purpose of tier continued cooperation.

At the moment, however, the primary problem is the restoration of internal security in the face of tough, widespread, externally aided Communist guerrilla warfare and subversion. To meet this problem requires stepped-up military and policing action. But the problem is more than a military problem. Its solution also demands stepped-up economic and social action, especially in rural areas, closely integrated with the military action. For example, one of the more promising counter-guerrilla methods tried up to this time involves regrouping scattered rural populations into more readily defensible communities so designed and assisted as also to offer improved opportunities for livelihood.

Recognizing this close interdependence of the military and the economic-social problems, we have based our recommendations on the following three central considerations:

1. The military-internal security requirements must for the time being have first call on Viet Nam's manpower and economic resources and on U.S. assistance. This is a short-term but essential requirement.

2. At the same time, the degree to which the military-internal security operations achieve lasting success will, in large measure, depend on the speed and effectiveness with which the recommended emergency economic and social programs are applied.

3. The ultimate objective of these economic and social programs and of the longer-range development planning which we also recommend is to hasten the day when Viet Nam will be a self-sustaining economy and a peaceful, free Rh