Page:Pentagon-Papers-Part V. B. 2. b.djvu/183

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Internal administration was transferred by the French to the State Governments on December 30, 1949, except for certain powers reserved to the French High Commissioner and certain interstate matters to be settled by an interstate conference. This conference was concluded in November 1950 when it was agreed that all internal administration would be turned over by the French to the State Governments by December 31, 1950, However, the piastre would continue to be pegged to the franc (at a rate highly beneficial to the piastre); the French have military base rights similar to those of the United States in the Philippines as provided in the United States-Philippine Treaty; and French functionaries would continue to carry out certain educational, war damage, and French military security functions. Other French functionaries would be employed by the Associated States only as desired by the latter.

The three State Governments are now limited in their assumption of powers only by the availability of qualified indigenous officials their dependence on continued French financial support and their lack of popular support. The planned formation during 1951 of national armies is expected to contribute toward the actual attainment of sovereignty in each State. This, should have a beneficial political effect in winning additional popular support for the governments.

The most severe threat to the continued growth and even to the continued existence of the State governments is the increased capability of the Viet Minh forces, resulting from the extension of military and materiel aid from Communist China. There is also some evidence of Soviet support. Such aid from Communist China began in April 1950, and h&s increased steadily. Up to now, light artillery, mortars and automatic weapons have been shipped to Indochina for the Viet Minh. Training centers in South China have trained and equipped some 50 Viet Minh battalions which have returned to Vietnam. The capacity of the training centers has been estimated at 10 to 30 thousand men rotated about every three months with some 50,000 having already completed their training. It has been reported that there are 15 to 20 Chinese technicians with each China-trained Viet Minh battalion, usually directing the artillery. The capability of these troops is rated as equal to that of French Union Forces, Chinese Communist troops in South China, within easy striking distance of the border, are estimated at two to three hundred thousand. Airfields at the border posts evacuated by the French are available to the Viet Minh, and air training is reportedly being conducted in China. However, no Viet Minh air power has yet been used, and in this respect the French Union Forces hold a present advantage due almost entirely to United States Military Aid. French Naval power is also superior Rh TOP SECRET