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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 a. That there then exists a mutually agreed upon geographically phased strategic plan for bringing Viet-Cong subversion in the Republic of Viet-Nam under control.

b. That on the basis of such a plan there exists an understanding on the training and use of those 30,000 additional men.

c. That the rate of increase from 170,000 to 200,000 will be regulated to permit the most efficient absorption and utilization of additional personnel and material in the Vietnamese armed forces with due regard to Viet-Nam's resources.

3. In view of the fact that the force level of 200,000 will probably not be reached until in 1963, a decision regarding the further increase above 200,000 will be postponed until next year when the question can be re-examined on the basis of the situation at that time. Meanwhile, the build-up in equipment and training of the Civil Guard and Self-Defense Corps within already agreed levels should be expedited.

4. Within the limits of available funds, the United States will provide the external resources required to implement the Joint Action Program, including commodity imports which can be justified and absorbed under the seven criteria of the Joint Action Program (pp. 20-21). The parallel Committees of the United States and Viet-Nam will immediately cooperate in working out target estimates for an import program that will give the United States Government a basis for planning.

5. In order to direct the resources of Viet-Nam to the highest priority requirements, Viet-Nam should be strongly urged to undertake to generate piasters through the several means spelled out on pp. 22-23 of the Joint Action Program.

6. Strongly urge early implementation by the Vietnamese of the recommendation regarding tax reform and the principle of a single and realistic rate of exchange. Rh