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He apparently envisages something very much like Dominion status, retaining only such French authority and privileges as may be agreed.


 * . . Laniel conceives his project for Indochina as an integral part of a new and supreme effort by France to "put its house in order". He plans to approach a balanced budget during CY 1954. This will involve a cut in French military as well as civil expense for that year. At the same time he contemplates a greater effort in Indochina. To do this he asks the U. S. for additional assistance amounting to about $400 million for FY 1954.


 * 6. . Attached are two tables showing (1) the financing of the Indochina war in CY 1953 and as proposed for CY 1954; and (2) U. S. aid for France and Indochina under 1953 program and 1954 appropriations. They contain tentative figures for 1954.


 * . As the first table makes clear, under the proposed program, the United States would assume about 50 per cent of the 1954 budgetary expenditures ($829 million out of $1,676 million) and, if end-item aid is included, would be carrying about 61 per cent of the total financing. This would represent about two and one-third times the amount of U. S. aid for CY 1953.


 * . As shown by the second table, this program would entail an increase of $403 million over the assistance now planned for France ($1,286 million). Of the total French military budget for both Indochina and NATO, the presently planned U. S. aid, including end items, would be 26 per cent; if the aid were increased as requested, such U. S. assistance, including end items, would be 34 per cent of the total.


 * . Finally, as the first table indicates, under the program, the total expenditures for Indochina for 1954, including end items, would be $2,160 million as compared with $1,700 for CY 1953.

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