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

Mr. President, as your American military advisor, I feel this is again an appropriate time to review the military situation. I know you also feel that we are at a decisive period in the military history of Vietnam, which is today in the vanguard of the Free World's fight against Communism. Events are moving so fast that it behooves us from time to time to review the events of the recent past so that we may give better direction to our present and future activities.

Largely because of your keen understanding and assistance, we can point with mutual pride to the accomplishments of the past few months. Although the urgency is great and there is still much to do, I am particularly heartened by the following actions.

Your approval of the Armed Forces reorganization portion of the Counter-Insurgency Plan has established a single chain of command from JGS through Field Command to the operating units. The most important implementation phase of this reorganization, which I shall discuss later at greater length, is now under way.

As you know, the actual build up of the 20,000 man increase in the RVNAF force structure is now in process with the attendant budgetary problems apparently on the way to resolution. At your direction, certain of these units are now being activated and equipment is beginning to arrive for them in significant quantities.

Also, I feel we can both be well pleased with the progress in the overall Civil Guard Program since transfer was effected to DOD.

Your establishment of the Central Intelligence Organization is another improvement which, when it becomes fully operational, will, together with Military Intelligence improvements, contribute greatly to the counter-insurgency campaign by ensuring improved Operational Intelligence to the Armed Forces.

The Combat Development and Test Center, discussed with you by Mr. Godel and myself, and which you have authorized also holds great promise of assisting in the overall Counter-Insurgency effort. Rh