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 of the Indochina war, and French apprehensions concerning eventual German rearmament not only make them reluctant to increase the military establishment in Indochina but impel them to seek the early return of French troops to Europe. The French Government will therefore remain under strong and increasing domestic pressure to reduce its military commitment in Indochina. On the other hand, the French Government is under strong pressure to maintain its position in Indochina. There is still considerable sentiment against abandoning the heavy investment which France has poured into Indochina. More important, there is great reluctance to accept the adverse effects on the cohesion of the French Union and on French prestige as a world power which would accompany the loss of France's position in Indochina. In these circumstances, we believe 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. At the same time, France will probably continue to seek maximum financial and material assistance for the French Union effort while resisting any measures which would impair French pre-eminence among the Associated States, including the making of any commitments concerning the eventual political status of the Associated States.

28. Political strength in Vietnam may grow slightly during 1953 as progress is made toward a stronger national army, as the Vietnamese assume increasing governmental responsibilities, and as Premier Tam's social and political programs serve to decrease distrust of French intentions. There will probably also be a growing understanding, and fear, of the true Communist nature and purpose of the Viet Minh. However, these developments will not bring about a significant increase in Vietnamese will and ability to resist the Viet Minh during the period of this estimate because the Vietnam leadership cannot in this brief period overcome popular apathy and mobilize the energy and resources of the people. Moreover, if events should persuade Vietnam leaders that no progress toward national independence is possible under the French or that French Union forces cannot defeat the Viet Minh, it is probable that the political strength of Vietnam would decline rapidly. Substantial Viet Minh military victories in the Tonkin delta or elsewhere in Indochina would also produce such a decline.

29. In Cambodia, political stability is likely to decline as the result of tension between the monarchy, the politically divided people, and the French colonial administration. Even if French concessions to the King insure his adherence to the French Union, unrest in Cambodia or a Viet Minh penetration into southern Laos might force the deployment of strong French forces to Cambodia.

30. In Laos, political attitudes will be determined almost entirely by military developments. The Laotians will probably remain loyal to the French Union if they are defended aggressively. They will not, however, offer effective resistance to Communist efforts to consolidate political control if French Union forces retreat from the country or if the French Union forces defend only a few strong points.

PROBABLE TRENDS IN VIET MINH AND CHINESE COMMUNIST CAPABILITIES AND COURSES OF ACTION

31. Viet Minh Capabilities and Probable Courses of Action. Barring serious Viet Minh military reverses, which could occur if Viet Minh forces should overextend themselves or make frontal attacks on French Union strong points, the Viet Minh regime will probably increase its total strength slightly during the period of this estimate. Viet Minh prestige will be increased by their recent gains in Laos. The organizational and administrative effectiveness of the regime will probably continue to increase with experience and Chinese Communist guidance. The program of expropriation and distribution of lands to tenants now being carried out probably weakens the Viet Minh appeal among some classes, but will Rh