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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 Page 2 of telegram to AMEMBASSY; SAIGON

SECRET

to retain necessary popular cooperation; that various economic steps be taken; and that there be adequate cooperation with RKG on frontier control. It considered US view that success requires implementation entire plan.

Should make clear our present commitment to support Counterinsurgency Plan is only for FY 61 part of program. Future funding will require Congressional approval. Views Congress likely be influenced by developments in political as well as security situation. FY 61 component represents large increase in US support Viet-Nam. If GVN willing to accept the obligations involved in its implementation, the US is ready give full and immediate support in carrying it out.

Suggest proposeing to Diem that members US Missions ready confer with GVN opposite numbers work out agreed version Plan within, say, two week time limit. Urge changes be kept minimal to avoid necessity referred CINCPAC and Washington.

In implementing Plan recommend that Country Team:

a) Conduct annual or more frequent review question balance as between forces committed primarily against VC and those intended primarily resist external aggression.

b) Emphasize importance GVN-RKG border control.

c) Urge GVN improve treatment VC prisoners, as done by Magaaysay, to encourage desertions.

d) Urge GVN increase efforts to infiltrate VC in SVN.

In view Congressional interest monetary reform advise whether GVN should be pressed for early establishment unitary rate or whether additional costs

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