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to carry on in Indochina, the only alternative is eventual withdrawal, the only question being the exact method and date on which the withdrawal will take place. He has instructed General Navarre to prepare a new plan on the assumption that no funds will become available, and this plan will be ready shortly and will be available for our information.

Thus, in conclusion, Laniel pointed out that not only the whole question of Indochina, but also the whole problem of balancing the French budget and putting France back into a position where she could make a strong contribution to the European and Atlantic communities, depended on whether or not approximately 150 billion francs additional could be made available for Indochina in calendar 1954.

DILLON

AB:TT/11

Rh