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SENTO: Amembassy Paris 868

1. Subject to our receiving necessary assurances from French, NSC today approved additional aid proposed for Indochina based on substance DEPTEL 827, with Presidential approval expected tomorrow. Comments URTELS 939, 940, 941 fully taken into n:count in presentation to NSC.

2. On most confidential basis you should therefore now informally advise Laniel and Bidault above action and indicate assurances desired are to effect that French Government is determined:


 * a. put promptly into effect program of action set forth its memorandum Sept 1;


 * b. carry this program forward vigorously with object of eliminating regular enemy forces in Indochina;


 * c. continue pursue policy of perfecting independence of Associated States in conformity with July 3 declaration;


 * d. facilitate exchange information with American military authorities and take into account their views in developing and carrying out French military plans Indochina;


 * e. assure that no basic or permanent alteration of plans and programs for NATO forces will be made as result of additional effort Indochina;


 * f. provide appropriate info to US Govt of amount of expenditures for military program set forth in memo of Sept 1.

3. We would expect these assurances be embodied in note which US in reply would acknowledge, US reply would go on to make clear that:


 * a. appropriately established financial requirements for military program as indicated in Sept 1 memo from French Govt, not rpt not to exceed $385 million or its equivalent in Calendar Year 1954, will be met by US Govt (see para 8 below);

Rh