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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 TOP SECRET – Sensitive military assistance to the French effort in Indochina would have been counter-productive, since it would have led to a further deterioration in the French military position there. In other words, there was a basic incompatibility in the two strands of U.S. policy: (1) Washington wanted France to fight the anti-communist war and win, preferably with U.S. guidance and advice; and (2) Washington expected the French, when battlefield victory was assured, to magnanimously withdraw from Indochina. For France, which was probably fighting more a colonial than an anti-communist war, and which had to consider the effects of withdrawal on colonial holdings in Algeria, Tunisia and Morocco, magnanimous withdrawal was not too likely.

France, having no such policy incompatibilities, could and did pursue a consistent course with the stronger bargaining hand. Thus, the French were able to resist pressures from Washington and through the MAAG in Saigon to create a truly Vietnamese army, to grant the Vietnamese more local autonomy and to wage the war more effectively. MAAG was relegated to a supply function and its occasional admonitions to the French were interpreted by them as interference in their internal affairs. Even though by 1954, the U.S. was financing 78% of the costs of the war, the French retained full control of the dispensation of military assistance and of the intelligence and planning aspects of the military struggle. The expectation of French victory over the Viet Minh encouraged the U.S. to "go along" with Paris until the conclusion of the war. Moreover, the U.S. was reluctant to antagonize the French because of the high priority given in Washington's planning to French participation in the European Defense Community. France, therefore, had considerable leverage and, unless the U.S. supported Paris on its own terms, the French could, and indeed did, threaten not to join the EDC and to stop fighting in Indochina. (Tab 2)

American thinking and policy-making was dominated by the tendency to view communism in monolithic terms. The Viet Minh was, therefore, seen as part of the Southeast Asia manifestation of the world-wide communist expansionary movement. French resistance to Ho Chi Minh, in turn, was thought to be a crucial link in the containment of communism. This strategic perception of the communist threat was supported by the espousal of the domino principle: the loss of a single nation in Southeast Asia to communism would inexorably lead to the other nations of the area falling under communist control. The domino principle, which probably had its origin at the time of the Nationalist withdrawal from mainland China, was at the root of U.S. policy. Although elements of a domino-like theory could be found in NSC papers before the start of the Korean War, the Chinese intervention in Korea was thought to be an ominous confirmation of its validity. The possibility of a large-scale Chinese intervention in Indochina, similar to that in Korea, was feared, especially after the armistice in Korea. Rh