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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 7. The Ambassador should make clear to President Diem that if this is to be a truly joint effective effort, action by each country must be related to that by the other. In particular, the U.S. attaches grant importance to the reasonable implementation of the agreed criteria governing imports; we also consider the gaining of the effective piaster rate applicable to U. S. commodity aid, to which it is understood President Diem has already agreed, to be an indispensable part of our effort. Action by Viet-Nam on both of these matters will be very closely related to the U.S. contribution to the over-all effort. The Ambassador is authorized to assure President Diem that increased piaster realization per dollars worth of imports will not be used as a reason for reducing the U.S. share of our joint efforts.

8. The President directs the Director of International Cooporation Administration to conduct through USOM Viet-Nam and in cooperation with appropriate Vietnamese experts, a through and expeditious review of the new proposals for emergency social action outlined in Section B of the Joint Program and of programs already underway which these proposals are intended to supplement.

9. In order to derive long-range benefits from our joint efforts to win in the present emergency, Viet-Nam needs long-range planning. Accordingly, urge the Vietnamese to create more effective planning machinery to develop a long-range plan and urge them to expedite the training of staff to carry on planning activities. The Parallel Committees should develop specific development projects in line with the general recommendations in the Joint Action Program.

10. Make clear to Diem that we hope that one consequence of our new joint efforts will be an effective projection to the nation, its friends and its enemies, of our confidence in a long-range Rh