Foreign Relations of the United States, 1952–1954, Indochina, Volume XIII, Part 1

751G.5/8–1953: Telegram

The Ambassador in France (Dillon) to the Department of State

top secret
priority

Paris, August 19, 1953—8 p.m.

647. Distribution as directed by Secretary’s office. Re: Embtel 572, August 13.¹

1. Jacquet gave Labouisse this afternoon promised data re French 1954 program for Indochina, consisting short covering memorandum and three annexes. These documents being translated soonest and will be transmitted Department by air despatch, together with three tables referred to paragraph 2 reference telegram.²

2. Estimate for total cost Associated States forces in CY 1954 is given as 195 billion francs. French hope Associated States will agree increase their financial contribution from 3.2 billion piasters in 1953 to 6 billion piasters (60 billion francs) in 1954, thus leaving estimated gap next year of 135 billion francs. Jacquet stressed that in his opinion this is minimum figure, particularly since no understanding yet exists with Associated States re their 1954 contribution, and suggested gap might well reach 150 billion francs (which would imply Associated States contribution of 4.5 billion piasters or 45 billion francs).

3. Covering memorandum concludes with following comment regarding 195 billion franc program for ASIC build-up in 1954:

Begin translation. In order to put this plan into effect and at same time limit French military expenditures in Indochina to a level roughly compatible with France’s capabilities and her obligations in Europe, one possible formula would be for United States Government to relieve France of the burden of the external financial aid required Vietnam, Laos and Cambodia to build-up their national military forces.

This would imply that while maintaining the aid provided in favor of the French military budget in 1954 in application of April 26 memorandum,³ United States Government would agree, in addition, to contribute to financing of the military efforts of the Associated States through assistance in a form to be worked out subsequently and in an amount of 135 billion francs ($385 million) as estimated in documents annexed to this memorandum. End translation.

4. Third annex indicates 135 billion franc figure exclusive any end-item aid.

5. We have not yet had opportunity analyze data received today, but on first reading obvious there are major deficiencies. Memorandum contains nothing on French strategy and tactics Indochina, nor on French 1954 NATO expenditures and force goals. In response our questions Jacquet said French Government hoped maintain Lisbon commitments, but that it is “too soon” to be able say anything firm on this point. We are not at all certain that Pleven yet fully acquainted with plans upon which memorandum and annexes based.

6. We are proceeding analyze data received and will then discuss with French the additional information that will be required. In addition to guidance provided Department telegrams 461, August 12 and 545, August 18,⁴ we would appreciate your further comments as soon as you have considered data being pouched.

Dillon

1. See footnote 2, supra.
2. The documents were transmitted in despatch 589 from Paris, Aug. 20, infra.
3. See footnote 2, p. 507.
4. In telegram 461 to Paris, Aug. 12, the Department of State indicated that the French should provide not only costing data for 1954, but also an explanation of their intentions regarding implementation of the Navarre Plan. (751G.5/8–1153) Telegram 545 of Aug. 18 quoted the operative portion of NSC Action No. 874 of Aug. 6 (p. 718) and stated that a general memorandum describing the strategy and tactics contemplated by the French in Indochina would serve as the primary basis for an evaluation of the feasibility of the French program. (751G.5 MSP/8–1353)