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 e. The loss in prestige involved in the defeat of the Viet Minh armed forces could in part be offset by depicting the Viet Minh as an indigenous liberation movement Moreover, the Viet Minh Government and its armed forces could be preserved on Chinese soil where they could exercise constant military and political pressure on the forces of the, US and the Associated States.

f. The military and political nature of the Indochina war is such that even if the US defeated the Viet Minh field forces, guerrilla action could probably be continued indefinitely and preclude the establishment of complete non-Communist control over that area.

g. Under such circumstances, the US might have to maintain a military commitment in Indochina for years to come. Heavy US commitments to Indochina over the long run might cause concern to US allies and might create divergences between the US and neutralist states.

10. The Director of Central Intelligence and the Deputy Director for Intelligence, The Joint Staff, believe that the Communist reaction to commitment of US forces in Indochina would largely depend upon US posture prior to, and at the same time of, such commitment. If the US posture made manifest to the Communists that US naval and air retaliatory power would be fully applied to Communist China, then Peiping and Moscow would seek to avoid courses of action which would bring about such retaliation. In such circumstances, the chances are better than even that the Chinese-Communists would not openly intervene in Indochina, even if they believed that failure to intervene would mean the defeat at that time of the Viet Minh field forces in Indochina. Therefore the Director of Central Intelligence and the Deputy Director for Intelligence, The Joint Staff, believe that in weighing the arguments set forth in paragraphs 8 and 9 Chinese Communist leaders, in such circumstances, would estimate that it was more advantageous to them to support a guerrilla action in Indochina and tie down large US forces in such a war, than to risk US retaliatory action against China itself which open intervention would involve. However, the Communists would almost certainly continue to support the remnants of the Viet Minh, including re-equipping these remnant forces on the Chinese side of the border and possibly augmenting them with Chinese "volunteers" so that Viet Minh resistance could be continued indefinitely. Moreover, they would pursue their objectives in the rest of Southeast Asia by all means short of open military intervention.

11. The Special Assistant, Intelligence, Department of State, the Director of Naval Intelligence, the Assistant Chief of Staff, G–2, Intelligence, Department of the Army, and the Director of Intelligence, USAF, believe that the condition of "decisive defeat of the field forces of the Viet Minh" prescribed for considering this problem would necessarily result in such a serious setback to Communist prestige, security, and expansionism as to lead to the following conclusions. In weighing the arguments presented in paragraphs 8 and 9, the Communist leaders in both Peiping and Moscow would probably give greatest consideration to: (a) the loss of prestige, the threat to Bloc security, and the setback to Communist expansionism in Southeast Asia involved in a decisive defeat of the Viet Minh armed forces and, (b) the risk of direct US action against Communist China. To the Communists, the consequences of the decisive defeat of the Viet Minh armed forces would be both certain and far reaching. In appraising the possible nature and scale of direct US action against the China mainland, the Communists would weigh any US warnings of probable consequences of intervention, the temper of US and free world opinion, and the probable US desire not to expand a local action. It is unlikely that the Communists' appraisal would lead them to the conviction that the US reaction to their intervention in Indochina would take the form of extensive and intense warfare against Communist China. In any case, their overriding suspicion of the ultimate motive of US forces in strength on or near the borders of Communist China would strongly influence their courses of action. Thus, the thought foremost in their minds would most probably be that failure to dislodge US military forces from the Chinese border would lead to increasing challenges to Communist power elsewhere. We Rh