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

SENT TO: AMEMBASSY SAIGON PRIORITY 10 4

(NVNAF)

Counterinsurgency Plan, including 20,000 men increase VN armed forces/and provision training and equipment 32,000 Civil Guard, approved on basis following FY 61 funding: $28.4 million MAP for expanded NVNAF and $12.7 million MAP for Civil Guard. $660,000 as proposed for psychological operations and communications equipment also approved.

Highly command Ambassador, Country Team and staffs. Recognize Plan allows considerable latitude for changes and refinements as implementation worked out with GVN and as situation requires. However, U.S. would as Plan provdes expect GVN absorb local currency costs these increases aid does not contemplate further US dollar grants to generate additional local currency for this purpose.

preparation abridged version plan suitable for use Ambassador and in presenting plan to Diem. In presenting plan to Diem recommend you emphasize implementation will require extraordinary effort US-GVN cooperation, but that if implemented promptly and vigorously, we believe it will give GVN means turn tide against VC and at same time improve GVN capacity resist evert aggression. Immediate purpose Plan is to enable GVN defeat insurgency, but Plan also envisages that GVN must move on political front towards liberalization

FE;SEA;CTWood;tha;erc 2/3/61

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