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 that the French will continue without enthusiasm to maintain their present levels of troop strength through mid-1954 and will support the planned development of the national armies of the Associated States.

6. We believe that the Chinese Communists will continue and possibly increase their present support of the Viet Minh. However, we believe that whether or not hostilities are concluded in Korea, the Chinese Communists will not invade Indochina during this period. The Chinese Communists will almost certainly retain the capability to intervene so forcefully in Indochina as to overrun most of the Tonkin delta area before effective assistance could be brought to bear.

7. We believe that the Communist objective to secure control of all Indochina will not be altered by an armistice in Korea or by Communist "peace" tactics. However, the Communists may decide that "peace" maneuvers in Indochina would contribute to the attainment of Communist global objectives, and to the objective of the Viet Minh.

8. If present trends in the Indochinese situation continue through mid-1954, the French Union political and military position may subsequently deteriorate very rapidly.

THE CURRENT SITUATION

9. Military Situation. The Viet Minh occupation of the mountainous Thai country of northwestern Tonkin in late 1952 and the follow-up thrust into northern Laos in April 1953 demonstrate that the Viet Minh have retained the military initiative in Indochina. Although the Viet Minh did not defeat any large French Union forces in these operations, they did force the French to withdraw the bulk of their offensive striking power from the Tonkin delta and disperse it in isolated strong points, dependent on air transport for logistic support. At the same time, strong Viet Minh guerrilla elements plus two regular Viet Minh divisions sufficed to contain the 114,000 regular French Union forces remaining in the Tonkin delta. The Viet Minh now appear to have withdrawn the bulk of their regular forces from Laos. They probably have left behind political cadres, some regular forces, and well-supplied guerrilla units in the areas which they overran in order to consolidate Communist political and military control, to prepare bases for future operations, and to pin down French Union garrisons.

10. The invasion of Laos may have been undertaken as part of a long-range Communist design to develop unrest in Thailand and ultimately gain control of all Southeast Asia. Viewed solely in terms of the Viet Minh objective to win all of Indochina, however, the Viet Minh offensive in Laos is an extension of the 1952 winter's offensive in northwestern Tonkin, and represents a shift in Viet Minh military tactics. This shift in tactics is probably largely explained by the inability to defeat the main French Union forces in the Tonkin delta by direct assault Faced with this position of strength, the Viet Minh began Rh