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 that the Viet Minh are under complete Communist domination, the Viet Minh control many villages within areas of nominal French Union occupation through terror, compulsion, and their continued nationalist appeal.

24. The Viet Minh and the Chinese Communists continue to maintain close relations. It is estimated that there are less than a thousand Chinese Communist advisers and technicians with the Viet Minh in Indochina. The Chinese Communists are providing the Viet Minh with military supplies at an estimated average level of 400 to 500 tons per month, and some Viet Minh troops are sent to Communist China for training. Small Chinese Communist units reportedly have entered the mountainous northwest section of Tonkin on several occasions to assist the Viet Minh against French-supported native guerrillas, but no Chinese Communist troops have been identified in forward areas. There was some evidence during the past year that Viet Minh policy statements may be "cleared," if not written, in Peiping. Close Viet Minh relations with Communist China are complemented, superficially at least, by equally warm relations with the Soviet Union, but we are unable to determine whether Peiping or Moscow has ultimate responsibility for Viet Minh policy.

PROBABLE TRENDS IN FRENCH UNION CAPABILITIES AND COURSES OF ACTION

25. French plans for dealing with the war in Indochina now revolve around the development of national armies in the Associated States, particularly in Vietnam. In March 1953, the Franco-Vietnamese High Military Council approved a new program calling for an increase in Vietnamese strength during the current year of 40,000 men, organised in 54 "commando" battalions. A further expansion of 57,000 men has been proposed for and will probably be undertaken if the initial reinforcement is successful and if equipment is made available by the US. With these additional Vietnamese forces, the French hope to undertake widespread clearing operations and subsequently to organize sufficient mobile groups to begin by early 1955 the destruction of the Viet Minh regular forces in Tonkin.

26. Progress has been made in carrying out the troop reinforcement program thus far, and the Vietnamese may have close to 40,000 reinforcements recruited, trained, and available for combat by early 1954. However, the Viet Minh invasion of Laos and the threat of similar operations will probably keep French mobile reserves deployed outside the Tonkin delta in isolated strong points. The addition of 40,000 untested and lightly armed Vietnamese will not offset the absence of these regular French forces, and effective clearing or offensive operations cannot be undertaken until French Union forces are regrouped. Moreover, the French military leadership has been so dominated by concepts of static defense as to be unable to conduct the planned operations with the vigor necessary for their success. How the new military leadership may alter this we cannot estimate. Finally, unless the French Union forces prove strong enough to provide security for the Vietnamese population, it will not be possible to sweep the guerrillas out of the areas as planned. Not only will the populace fail generally to provide the intelligence required to rout the guerrillas but, as in the past, they will frequently give warning of the presence of the French Union forces, thus permitting the guerrillas to take cover and later to emerge when the danger is past.

27. The French are fearful that they cannot achieve a military decision in Indochina. Unless the French Union military plans achieve great success during the period of this estimate, the conviction will grow in France that the Indochina problem can only be solved through some over-all East-West settlement in the Far East. The difficulties of the French financial position impel the French to seek relief from the mounting costs Rh