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g. Admiral Auboyneau agreed to a reorganization of French Naval Forces to include a Joint Amphibious Command for the purpose of (1) attaining increased amphibious effectiveness and (2) delegating increased responsibility to Vietnamese leaders and units.

h. Once the French became convinced of the soundness of our initial proposals they became increasingly receptive to our subsequent recommendations.

i. As evidence of French sincerity in carrying out actions designed to improve the status of anti-communist military forces in Indochina, General Navarre and other French officers repeatedly invited me to return in a few months "to witness the progress we will have made".

3. I recommend that the Joint Chiefs of Staff:

a. Note the contents of the attached report and take appropriate action where required.

b. Propose to the Secretary of Defense that he recommend to the Secretary of State the sending of a small group of qualified experts to Indochina to study the desirability of the U. S. assisting in the development of Associated States small industry capable of producing certain military items or military-support items such as small arms, batteries or recap tires.

c. Approve an increase in artillery units in the force basis for Indochina if MAAG and Department of the Army screening indicates such increase is necessary for a balance of forces in the new divisional organization.

Rh