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 TOP SECRET forces are allied with them. In addition, the generally inadequate indigenous forces of tho independent states are actively engaged in attempting to maintain internal security in the face of Communist aggression tactics.

5. It appears obvious from intelligence estimates that the situation in Southeast Asia has deteriorated and, without United States assistance, this deterioration will be accelerated. In general, the basic conditions of political and economic stability in this area, as well as the military and internal security conditions, are unsatisfactory. These factors are closely interrelated and it is probable that, from the long-term point of view, political and economic stability is the controlling factor. On the other hand, the military situation in some areas, particularly Indochina, is of pressing urgency.

6. With respect to the measures which, from the United States military point of view, might be taken to prevent Communist expansion in Southeast Asia, the Joint Chiefs of Staff recommend early implementation of military aid programs for Indochina, Indonesia, Thailand, the Philippines, and Burma. Malaya might also be included provided the British by their actions in the areas in Asia where they have primary interest evince a determined effort to resist the expansion of communism and present sufficient military justification for aid. The effectiveness of these military aid programs would be greatly increased by appropriate public statements of United States policy in Southeast Asia.

7. The Joint Chiefs of Staff recommend that the military aid from funds already allocated by the President for the states of Southeast Asia be delivered at the earliest practicable date. They further recommend that the presently unallocated portion of the President's emergency fund under Section 303 of Public Law 329 (81st Congress, 1st Session), be planned and programmed as a matter of urgency.

8. Precise determination of the amounts required for military aid, special covert operations, and concomitant economic and psychological programs in Southeast Asia cannot be made at this time since the financial requirements will, to a large extent, depend on the success of aid and other programs now in the process of implementation. In the light of the world situation, however, it would appear that military aid programs and other measures will be necessary in Southeast Asia at least during the next fiscal year and In at least the same general over-all order of magnitude. The Joint Chiefs of Staff, therefore, strongly recommend that appropriations for over-all use in the general area of Asia be sought for the next fiscal year in terms similar to those under Section 303 of Public Law 329 (81st Congress, 1st Session). It is believed that approximately $100,000,000 will be required for the military portion of this program. Rh