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 TOP SECRET however, that French armed forces of approximately 140,000 men are in the field and that if these were to be withdrawn this year because of political considerations, the Bao Dai regime probably could not survive even with United States aid. If the United States were now to insist upon independence for Vietnam and a phased French withdrawal from that country, this might improve the political situation. The French could be expected to interpose objections to, and certainly delays in, such a program. Conditions in Indochina, however, are unstable and the situation is apparently deteriorating rapidly so that the urgent need for at least an initial increment of military and economic aid is psychologically overriding. The Joint Chiefs of Staff, therefore, recommend the provision of military aid to Indochina at the earliest practicable date under a program to implement the Presidents action approving the allocation of 15 million dollars for Indochina and that corresponding increments of political and economic aid be programmed on an interim basis without prejudice to the pattern of the policy for additional military, political and economic aid that may be developed later.

15. In view of the considerations set forth in paragraph 14 above, the Joint Chiefs of Staff recommend the immediate establishment of a small United States military aid group in Indochina, to operate in conformity with the requirements in paragraph 9 above. The Joint Chiefs of Staff would expect the senior member of this group to sit in consultation with military representatives of France and Vietnam and possibly of Laos and Cambodia. In addition to screening requests for materiel, he would be expected to insure full coordination of military plans and efforts between the French and Vietnamese forces and to supervise the allocation of materiel. The Joint Chiefs of Staff believe in the possibiltiypossibility [sic] of success of a prompt coordinated United States program of military, political, and economic aid to Southeast Asia and feel that such a success might well lead to the gaining of the initiative in the struggle in that general area.

16. China is the vital strategic area in Asia. The Joint Chiefs of Staff are firmly of the opinion that attainment of United States objectives in Asia can only be achieved by ultimate success in China. Resolution of the situation facing Southeast Asia would therefore, be facilitated if prompt and continuing measures wore undertaken to reduce the pressure from Communist China. In this connection, the Joint Chiefs of Staff have noted the evidences of renewed vitality and apparent increased effectiveness of the Chinese Nationalist forces.

17. The Joint Chiefs of Staff suggest the following measures with military implications:


 * . An increased number of courtesy or "show the flag" visits to Southeast Asian states;

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