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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011  people, is surrounded by persons less admirable and capable than he. The country can be saved -- if we move quickly and wisely. We must decide whether to support Diem -- or let Vietnam fall. We must have coordination of purpose in our country team, diplomatic and military. The Saigon Embassy, USIS, MAAG and related operations leave much to be desired. They should be brought up to maximum efficiency. The most important thing is imaginative, creative, American management of our military aid program. The Vietnamese and our MAAG estimate that $50 million of U.S. military and economic assistance will be needed if we decide to support Vietnam. This is the best information available to us at the present time and if it is confirmed by the best Washington military judgment it should be supported. Since you proposed and Diem agreed to a joint economic mission, it should be appointed and proceed forthwith.

b. In Thailand, the Thais and our own MAAG estimate probably as much is needed as in Vietnam -- about $50 million of military and economic assistance. Again, should our best military judgment concur, I believe we should support such a program. Sarit is more strongly and staunchly pro-Western than many of his people. He is and must be deeply concerned at the consequence to his country of a communist-controlled Laos. If Sarit is to stand firm against neutralism, he must have -- soon -- concrete evidence to show his people of United States military and economic support. He believes that his armed forces should be increased to 150,000. His Defense Minister is coming to Washington to discuss aid matters.

To recapitulate, these are the main impressions I have brought back from my trip.

The fundamental decision required of the United States -- and time is of the greatest importance -- is whether we are to attempt to meet the challenge of Communist expansion now in Southeast Asia by a major effort in support of the forces of freedom in the area, or throw in the towel. This decision must be made in a full realization of the very heavy and continuing costs involved in terms of money, of effort and of United States prestige. It must be made with the knowledge that at some point we may be faced with the further decision of whether we commit major United States forces to the area or cut our losses and withdraw should our other efforts fail. We must remain master in this decision. What we do in Southeast Asia should be part of a rational program to meet the threat we face in the region as a whole. It should include a clear-cut pattern of specific contributions to be expected by each partner according to his ability and resources. I recommend we proceed with a clear-cut and strong program of action. Rh