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(8c) The Executive Branch has requested the Congress for approval of end item military aid for Indochina for FY 1954 in the amount of $460 million, a common use program of $30 million and economic aid in the amount of $25 million. These proposed amounts have not yet been approved by the Congress. In FY 1953 military end-item assistance was authorized in the amount of $263.8 million and economic and technical assistance in the amount of $25 million, with a further sum of $30.5 million for common-use items.

(8d) The United States continues to cultivate friendly and cooperative relations with the Governments of the Associated States and France and has received in Washington the first Ambassador of Viet-Nam. A Laotian Legation is to be opened shortly. Cambodia has been represented in Washington since 1951.

(8e) This section of NSC 124/2 lists eight elements of positive political, military, economic and social policies considered especially important among positive policies to promote which the United States should use its influence with France and the Associated States. The "use of influence" in terns or action may be assumed to fall short of pressure of any type where such pressure might be self-defeating. In addition to the opportunities which the American ambassadors in Paris and Saigon have had to set forth the views of the United State, there have been a number of special occasions which have permitted the fullest and frankest exchange with the French regarding military, political, and economic aspects of the Indochina situation. Such occasions were the military talks in Washington in October 1952, NATO Council sessions in December 1952, the visit of the Secretary of Sate and the Director of Mutual Security to Paris in February 1953, the visit of Premier Mayer and Cabinet colleagues to Washington in March 1953, the permanent session of NATO in April 1953, visits of General Clark in March and Admiral Radford in April 1953, and, finally, the study undertaken in Indochina at the invitation of the French by the American military mission headed by General O'Daniel.

A review of developments and considerations relating to specific elements of policy outlined in Section 8(e) of NSC 124/2 follows:


 * (1) In the face of criticisms of Socialist and Radical Socialist opponents in the French National Assembly, the French Government restated in the latter part of 1952 its acceptance of primary responsibility for the defense of Indochina. The military portion of the French budget placed

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