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 the piastre disbursal difficulties on inherited French budget practices, and promised to pressure the province chiefs further on the matter. There was talk about incompetent personnel within the GM and of the problems of replacing them.

4.

The next landmark of policy formation for Vietnam was the Honolulu Conference of 30 May 1964. On 26 May, the President sent out to Lodge his call for the Honolulu Conference:

I have been giving the most intense consideration to the whole battle for Southeast Asia, and I have now instructed Dean Rusk, Bob McNamara, Max Taylor and John McCone to join Felt in Honolulu for a meeting with you and a very small group of your most senior associates in Southeast Asia to review for my final approval a series of plans for effective action.

I am sending you this message at once to give you private advance notice because I hope this meeting can occur, very soon - perhaps on Monday. Dean Rusk will be sending you tomorrow a separate cable on the subjects proposed for the meeting, and Bob McNamara will put a plane at your disposal for the trip…

Other parts of the message referred to matters related to impending changes in the mission in Saigon - the retirement of General Harkins and his replacement by General Westmoreland and the strengthening of the civilian side of the country team. 95/

The promised policy guidance followed promptly. It constituted both an appraisal of the current situation and a statement of the needs - flowing from that appraisal - that it seemed evident had to be met^ along with some proposals for meeting those needs.

I. You will have surmised from yesterday's telegram from the President and the Secretary that we here are fully aware that gravest decisions are in front of us and other governments about free world's interest in and commitment to security of Southeast Asia. Our point of departure is and must be that we cannot accept overrunning of Southeast Asia by Hanoi and Peiping. Full and frank discussion of these decisions with you is purpose of Honolulu meeting…

2. President will continue in close consultation with Congressional leadership (he met with Democratic leadership and Senate Republicans yesterday) and will wish Congress associated with him on any steps which carry with them substantial acts and risks of escalation. At that point there will be three central questions: Rh