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44. Success of the Dong Quan project (a plan for regrouping many small villages into large fortified villages similar to the Templar Plan in Malaya in concept) is questionable in the opinion of the STEM officials who are supporting this project. Dong Quan has been the target of repeated Viet Minh attacks, which signifies enemy concern over this plan, and consequently villagers are currently quite unwilling to move into Dong Quan. Because of the tremendous scope of the village relocation project, if carried through to completion (even if restricted to the Tonkin Delta), and the existent static commitment of a great number of troops in Indochina, it is imperative that local militia only be ultimately employed in defense of this type village. The impression received was that the Dong Quan project was losing popularity, however the effort is a new one for Indochina and further developments will be watched.

45. The mission of the 54 Commando Battalions to be added to the Vietnamese Army by 1954 is primarily for pacification. As of 30 June 1953 9 battalions had been activated, with 3 operational. 31 battalions will have been organized and trained by 1 October 1953. The 3 battalions operational are being employed near Bui Chu, in the southwestern part of the Tonkin Delta. Commando battalions are being trained for political, propaganda, and counter-guerrilla warfare.

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