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 favored general concept but thought that detailed figures should be looked into carefully. Ambassador also believed that emphasis should be placed first on 8 critical provinces surrounding Saigon…

General Harkins noted that a mobilization lav was in fact in existence but that few people knew about it. He pointed out that ARVN, CG and SDC were not up to their authorized military strengths. Khanh said that he realized this but believed it still desirable to have a new law setting forth a national service or mobilization program. Harkins stated that MACV and other elements of U.S. Mission would like to work closely with Khanh…in developing such a law. Khanh replied this well understood, McNamara said it was agreed on American side that general concept was a wise one and that we should proceed on this basis.

Khanh then inquired whether it was desirable to raise CG to same relative status as ARVN as regards salary, pensions, survivors benefits, etc. He estimated that total cost would be in neighborhood of one billion piasters. McNamara thought this was highly desirable…

McNamara inquired how long…it would take to recruit and train administrative cadre for 8 critical provinces near Saigon. Khanh estimated approximately one month, in any event he believed cadres could, be in place by end of April. Khanh said GVN would aim for volunteers for this effort and it was not necessary to await promulgation of National Service Act.

In response Taylor's question as to how long Khanh anticipated it would take to draft and promulgate National Service Law, Khanh observed that…law could be ready for his signature in very short time. Taylor pointed to necessity give due regard to democratic forms in developing and announcing a National Service Act. Khanh agreed and said that at same time a major effort was being made to pacify the countryside. He intended push for concurrent development of democratic institutions and forms. McNamara suggested that when Khanh ready announce a National Service Act that he also re-emphasize related actions…such as those for expansion of national Rh