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FY 1953 MDAP appropriations, to furnish items of an estimated value of $19.3 million.

For calendar 1954, M. Letourneau estimates a "deficit" of $231 million covered neither by the French nor the Vietnamese budges and for which U.S. assistance will presumably be requested. End-item assistance from MDAP of a value of some $81.3 million is also estimated.

For calendar 1955, the estimate on the same basis as above includes a "deficit" of approximately $299.3 million and additional end-items worth about $10 million.

It should be emphasized that the above are preliminary figures subject to careful screening and to scrutiny as to whether in part at least some of the financial deficits could not be made up through increased Vietnamese contributions. (There seems to be little prospect especially--in calendar 1954--that the French will be able to increase their contribution.)

(9b) In continuation of the conversations which have been held at intervals with the British and French for planning action in the event of aggression in the Pacific area, military representative of the United States, France, the United Kingdom, Australia and New Zealand held discussion to consider possible military action in the event of Chinese Communist aggression in Southeast Asia. These conversation are referred to in paragraph (7d) above.

(9c) This paragraph appears adequately covered by the discussion above particularly under (7d) and (9a).

10-13 Action projected in paragraphs 10 to 13 is to take place in the event of Chinese Communist forces intervene overtly in the conflict in Indochina. The proposed course of action are believed adequate but must be kept under constant review in the light of the outcome of further military talks and over-all commitments and capabilities not only of the United States but of friendly nations, chiefly the United Kingdom and France.

Burma

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