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present burden include: (1) a settlement with the communists in Indochina; (2) an agreement to internationalize the action in Indochina; (3) reduction of the NATO obligations of France.

22. A settlement based on a military armistice would be more complicated in Indochina than in the case of Korea. Much of Indochina is not firmly under the control of either side, but subject to occasional forays from both. Areas controlled by the opposing sides are interspersed, and lines of contact are fluid. Because of the weakness of the native governments, the dubious attitudes of the population even in areas under French control, and the certainty of continued communist pressure, it is highly probable that any settlement based on a withdrawal of French forces would be tantamount to handing over Indochina to communism. The United States should therefore continue to oppose any negotiated settlement with the Viet Minh.

23. In the event that information and circumstances point to the conclusion that France is no longer prepared to carry the burden in Indochina, or if France presses for a sharing of the responsibility for Indochina, whether in the UN or directly with the U.S. Government, the United States should oppose a French withdrawal and consult with the French and British concerning further measures to be taken to safeguard the area from communist domination. In anticipation of these possibilities, the United States should urgently re-examine the situation with a view to determining:


 * . Whether U.S. participation in an international undertaking would be warranted.


 * . The general nature of the contributions which the United States, with other friendly governments, might be prepared to make.

24. A cessation of hostilities in Korea would greatly increase the logistical capability of the Chinese Communists to support military operations in Indochina. A Korean peace would have an even more decisive effect in increasing Chinese air capabilities in that area. Recent intelligence reports indicate increased Chinese Communist military activity in the Indochinese border area. If the Chinese Communists directly intervene with large forces over and above those introduced as individuals or in small units, the French would probably be driven back to a beachhead around Haiphong, The French should be able to hold this beachhead for only a limited time at best in the absence of timely and substantial outside support. ANNEX TO NSC 124 Rh