Foreign Relations of the United States, 1964–1968, Volume IV, Vietnam, 1966

83. Paper Prepared by the Assistant Secretary of State for Far Eastern Affairs (Bundy)¹

Washington, February 23, 1966.

HONOLULU MEETING

RECORD OF CONCLUSIONS AND DECISIONS FOR FURTHER ACTION²

[Here follows a table of contents.]

Explanation

The Consensuses recorded in the following text were those jointly reached by the U.S. and Vietnamese delegations at Honolulu. In some cases these represent a specific form of words as adopted; in others they are an effort to record the sense of one or several general discussions.

The Further Actions noted are based on specific discussions which involved both Vietnamese and U.S. representatives. In the parentheses following the action there is noted which agency is primarily responsible for follow up on this matter; this means in many instances a responsibility is placed on the U.S. Mission Saigon to keep the Vietnamese Government moving on the agreed action.

I. Diplomatic Track

Consensus: The United States Government and the Government of Viet-Nam will continue to press the quest for a peaceful settlement in every forum and explore every path to peace. They will stay in close touch to proceed internationally as closely together as possible.

Further Action

1. U.S. and GVN leaders agreed on full consultation on further action at Security Council. (Resp: State)

2. The Secretary and FonMin Do reportedly agreed on language for Japanese consensus statement.³ (Resp: State)

3. It was agreed everything possible will be done to prevent an independent VC role at any future negotiation. (No more precise decision taken.) (Resp: State)

4. All measures possible will be taken to increase pressure on Hanoi to bring them to the conference table or persuade them to stop aggression by their tacit acceptance of the fact they cannot win. (See II. Military Program.) (Resp: DOD, State)

5. The President asked for the GVNʼs suggestions on further peace initiatives we might take. (Resp: GVN, Embassy)

6. Vice President Humphrey and Governor Harriman will visit Asian capitals to explain our position and describe the Honolulu meeting. (Action taken)

II. Military Program

Consensus: U.S. and GVN leaders announced a policy of “growing military effectiveness and still closer cooperation.” We will act with all possible regard for the rights of civilians and respect for the territorial integrity of peaceful neighboring countries, and will adhere to the Geneva Convention of 1949 on treatment of prisoners of war.

Further Action

1. Among the measures to be considered to induce Hanoi to move to the conference table will be Ambassador Thaiʼs idea of feints by GVN sea forces against North Viet-Nam to preoccupy and pin down North Vietnamese armed forces and to create uncertainty there. (Resp: DOD, State)

2. The Secretary of State will take another look at various possible measures for bringing pressure on Hanoi which were mentioned, including bombing dikes or water gates in the pre-flood period. (Resp: DOD, State)

3. The GVN was urged to carry out further internal reforms within the RVNAF. (Resp: GVN, Mission)

III. Free World Assistance

Consensus: The GVN, with strong U.S. support, will press for a maximum number of contributors and a maximum number of types of assist-ance.

Further Action

1. Free World assistance activities should be more closely coordinated. In addition to close coordination in Saigon, Washington is to be kept fully informed so that GVN Missions in Washington and New York can take initiatives with foreign representatives located there. (Resp: GVN, U.S. Mission, all Washington agencies concerned with FWA)

2. Study will be given to increasing Free World assistance to the GVN agricultural cadre program. (Resp: GVN, U.S. Mission, AID with Dept. of Agriculture and State)

3. Study will also be given to increasing Free World assistance to the GVNʼs medical programs. (Resp: GVN, U.S. Mission, AID and Dept. Health, Education and Welfare and State) (See also IV–F.)

4. Top level U.S representatives will be sent to Australia, Korea and New Zealand to thank them for their assistance and to the Philippines to press for further assistance in the form of an engineer battalion with an adequate security force. (Resp: White House, State)

5. Ways of gaining further Latin American assistance will be studied. (Resp: State)

IV. Internal Vietnamese Programs

IV–A. Rural Construction Program

Consensus: Building democracy in rural areas is as important as military battles—rural construction is the central instrument in bringing about the social revolution on which Viet-Nam is now embarked. For 1966, program should concentrate on four priority areas.

Further Action

1. Assure that province chief actually retains operational control over necessary military forces to support program in his province. (Resp: U.S. Mission Saigon, with reports to Washington if problems arise)

2. Areas where program under way, and four priority areas in particular, should be placed under superior province chiefs who should not be removed while program being developed without serious cause. (Resp: GVN, U.S. Mission)

3. Move forward with elected village executive councils as rapidly as feasible. (Resp: GVN & U.S. Mission)

4. Assure that all Ministries concerned with pacification work out effective coordination among themselves. (Resp: GVN, U.S. Mission)

5. Adequate military priority should be given by ARVN commanders to priority rural construction areas. (Resp: GVN, MACV to follow up)

6. General Thang stated provinces should achieve 75 percent of their 1966 plans by the end of the year. This would involve the pacification of 963 new hamlets, consolidation of 1,083 existing hamlets, and the building of 2,251 classrooms, 913 kilometers of roads, 148 bridges, 57 dams and 119 kilometers of canals.

7. Emphasis will be given to increasingly effective cadre training, with emphasis on political indoctrination and winning the peopleʼs sympathy. (Resp: GVN, U.S. Mission)

8. Greater emphasis is to be put on U.S. and RVNAF troop indoctrination to assure better understanding of how to win over population, with U.S. to study additional support requirements. (Resp: GVN Political Warfare Directorate, DOD, JUSPAO)

9. Develop more agricultural cadre for greater emphasis on agricultural development, especially in priority areas; study increasing Free World assistance in this area. (Resp: GVN, U.S. Mission, AID with Dept. of Agriculture and State) (See also III: Free World Assistance.)

10. Expand the development of handicraft and light cottage industries, emphasizing priority areas. Handicraft industries should be encouraged to hire refugees, veterans and, in Minister Tonʼs words, “people whose livelihood comes from the presence of allied forces in Viet-Nam.” (GVN, U.S. Mission and AID) (See also IV–B. Refugees.)

11. Study formation of a land reform organization in each priority area. (GVN and U.S. Mission)

12. Expand rural electrification program, adding at least 50 new stations if feasible during 1966. (GVN, USAID, Secy Freeman to investigate)

13. Study improved credit facilities for farmers, and place emphasis on more efficient production. (Resp: GVN, USAID, Dept. of Agriculture)

14. Study possibilities of joint training program for village and hamlet chiefs, who would presumably be elected. (Resp: GVN, U.S. Mission)

15. An agreed name for the program should be selected as among pacification, rural construction and social construction (see Saigon Embtels 2967,⁴ 2997⁵ and 3063).⁶

IV–B. Refugees

Consensus:

The care of refugees is highly important as a means of including in the social revolution now going on in South Viet-Nam the large numbers of people who have courageously, of their own free will, left the Viet Cong. The refugees must be prepared to resume a useful role in society. U.S. aid for refugees is an important demonstration of the humanitarian aspects of U.S. aid to Viet-Nam, and the U.S. will provide full support for GVN plans in this area.

Further Action:

1. Special effort will be made to provide schools for refugee children. (Resp: GVN, AID with HEW)

2. In addition to the school effort, the President urged special attention to other refugee projects such as vocational training, small loan programs and the like. (Resp: GVN, AID with HEW)

3. Refugees should be given employment in light industry and given training in handicrafts. (Resp: GVN, U.S. Mission)

IV–C. Political Development and Current Politics

Consensus: The GVN affirmed its intention to proceed with the building of democracy and encouraging a widened and more active popular participation in and contribution to this process. The U.S. affirmed its support for free elections.

Further Action:

1. The GVN will appoint an advisory council consisting of 80 members selected from a cross-section of society and all regions of the country. Appointment will be made by the end of February. (Resp: GVN, U.S. Embassy to monitor)

2. Advisory Council will draft a constitution, which will be taken to the people for discussion and modification and submitted to a referendum in late 1966. (Resp: GVN, U.S. Embassy)

3. The Council will also discuss electoral laws and political party formation. On the basis of elections, rooted in the constitution, the GVN will create an elected government. (Resp: GVN, U.S. Embassy)

4. Ambassador Lodge will continue to carry on a dialogue with the GVN on this subject.

5. A Washington representative or group will go to Saigon at some point in the future to discuss political development with GVN leaders. (Resp: State)

6. The President made it clear we are not pushing the GVN to move more quickly than would be wise or to change its ideas on the subject. (Resp: U.S. Embassy)

7. General Ky was urged to spend more time in the countryside in the role of a political leader. (Resp: U.S. Mission)

IV–D. Montagnards

Consensus: General Thang stated that in the new society the GVN was trying to build all groups, including Montagnards, would be treated equally.

IV–E. Chieu Hoi

Consensus: The GVN is making an appeal to the enemy to leave VC ranks and join with South Viet-Nam in the “national, revolutionary adventure” on which it is embarked. The U.S. pledged its full support to the principle of open arms and amnesty for all who turn from terror toward peace and rural construction.

Further Action:

1. Generals Ky and Thieu agreed to place greater emphasis on the Chieu Hoi Program. (Resp: GVN, U.S. Mission, especially JUSPAO)

2. President Johnson urged a strong program directed at “very young” members of the VC. (GVN, U.S. Mission, especially JUSPAO)

IV–F. Economic and Social Programs

1. Health

Consensus: The GVN will intensify efforts to meet at least its basic needs in context of mounting demands upon scarce resources. The U.S. hopes to expand its health program considerably to assist the GVN to meet these goals.

Further Action: (For details, see Saigonʼs Toaid 4985.)⁷

a. A team of experts under Secretary Gardner will go to Saigon to clarify specific future goals and agree with GVN on action assignments. (Resp: HEW)

b. Both governments agreed to make increased efforts to train health personnel. (GVN, USAID, HEW)

c. A more effective medical logistics system will be established. (GVN, USAID, HEW)

d. Increased medical manpower to be sought through the dispatch of U.S. and Free World medical teams to the provinces. (GVN, U.S. Mission, State)

e. Attempts will be made to stem drain of manpower through adjustment of wage levels, and to gain manpower through incentive systems, and possibly a release of health personnel with long service in the Armed Forces. (Resp: GVN, U.S. Mission)

f. Improvement will be sought on epidemic reporting system; U.S. (and hopefully Free World) will assist in providing modern immunizing equipment. (Resp: GVN, U.S. Mission, State)

g. Increase assistance to refugees, including surveillance, immunization, etc. (Resp: GVN, U.S. Mission)

2. Education

Consensus: Strong emphasis should be put on vocational and technical education, and on assistance to refugees.

Further Action: (For details, see Saigonʼs Toaid 4985.)

a. GVN will inform USG of appropriate time for visit of team headed by Secretary Gardner to go to Saigon. (Resp: GVN, HEW)

b. Efforts will be made to increase vocational training for students finishing primary education. (Resp: GVN, USAID)

c. Agreement to strengthen cooperation in building elementary schools as rapidly as possible, paying particular attention to priority areas and refugees, and in training teachers. (Resp: GVN, U.S. Mission) (See also IV–B.)

d. U.S. will continue supply of textbooks to schools, with 7 million more scheduled for 1966. (Resp: USAID)

3. Agriculture

Consensus: Increasing food production is a fundamental part of the GVNʼs effort to create a better life for its people, and U.S. assistance in this is a fundamental part of U.S. efforts to help the Vietnamese people build while they fight. It is also part of the U.S. pledge to attack hunger wherever it is found.

Further Action:

a. Secretary Freeman and team of experts to develop enlarged program of agricultural cooperation from visit to Saigon. (Resp: GVN, USDA)

b. It was agreed that a special effort will be made to move agricultural know-how—particularly new species of rice and corn and vegetable seeds—from the experimental station to the farmer. (Resp: GVN, USAID)

c. Steps for more rapid land reform were reviewed and will receive further study. The U.S. pledged its full support for land reform. (Resp: GVN, U.S. Mission)

d. Production in the agricultural sector will be increased. Top priority will be given to expansion of agricultural industries such as processing of agricultural products and production of fertilizer and agricultural implements. (Resp: GVN, USAID)

4. General Economic

Further Action:

a. US agreed to increase its project assistance to the level of at least 150 million dollars. (Resp: USAID)

IV–G. Financial Stabilization

Consensus: South Viet-Nam faces a serious problem of inflationary demand during the current year, but with appropriate stabilization measures the situation is manageable. The GVN will follow a policy of economic austerity.

Further Action: (see February 8 Minutes of Understanding, and report on February 7 meeting—Annex IV G—for details.)⁸

1. U.S will increase commodity import and PL 480 Title I assistance to at least $400 million in CY 1966, subject to market demand and port capacity. (Resp: AID)

2. Subject to market demand and port capacity the Government of the Republic of Viet-Nam agreed to increase imports to a level compatible with a policy of using its foreign exchange earnings in 1966 to help combat inflation. (Resp: GVN, USAID, Embassy to monitor)

3. Advance deposits by importers will be required. (Resp: GVN, USAID and Embassy to monitor)

4. The 90-day grace period on payment of duties will be eliminated. (GVN, AID and Embassy to monitor)

5. The customs force will be enlarged, with U.S. technical assistance. (GVN, AID, Treasury)

6. Overall import procedures are to be simplified. Study to be made of the entire system of import procedures, to begin in the next few weeks. (Resp: GVN, AID)

7. U.S will eliminate present barter requirements with respect to procurement from less developed countries of commodities other than petroleum products. (Resp: AID)

8. AID will reduce the time required to produce bulk items. (Resp: AID)

9. The GVN will appoint a master port director, responsible directly to the office of the Prime Minister, and give adequate authority to a single Saigon port director. (Resp: GVN, USAID to monitor)

10. The U.S. will supply technical assistance in port management. (Resp: AID)

11. Security stockpiles will be established as quickly as port facilities allow. Plans will be drawn up at once for warehousing and management of stockpiles. (Resp: GVN, AID)

12. The U.S. will remove PX supplies from port area warehouses as expeditiously as possible. (Resp: MACV)

13. The GVN will increase revenues, both from increased taxes and better tax collection, as well as from other sources. The target for increased tax receipts in 1966 is approximately 4 billion piasters. (Resp: GVN; USAID to monitor)

14. Non-tax receipts should be increased by greater promotion and sales of GVN lottery tickets, including sales to U.S. forces, and by flotation of piaster bond issues of approximately 2 billion piasters in 1966. (Resp: GVN, MACV; USAID and Embassy to monitor)

15. Foreign exchange earnings accruing in 1966 to the Republic of Viet-Nam, will be used promptly to help combat inflationary pressures, by financing imports or by other appropriate means. (Resp: GVN; USAID to monitor)

16. The U.S. will support the Vietnamese request to the IMF for technical assistance in the financial area. Mr. Bell will talk to Mr. Schweitzer of the IMF to press for an IMF groupʼs visit to Saigon by the end of February. (Resp: AID)

17. High level political consideration of raising the exchange rate for import duties from 35.1 to 60.1 will be initiated promptly, with a view to activating this measure at the beginning of the second quarter of 1966. It was agreed that this would be the most appropriate and equitable additional measure to reduce liquidity, expand GVN revenues and reduce excessive wartime profits. (Resp: GVN, U.S. Mission, AID, State)

18. Discussion will be held and recommendations made before the end of February on modifying the Special Currency Fund rate of 118 piasters per dollar and on the GVNʼs possibly increasing and using the gold component of its international reserves. (Resp: GVN, AID)

19. The U.S. will provide technical assistance where appropriate in support of GVN anti-inflationary measures, and will moderate the demands of U.S. expenditures in the Vietnamese economy. (Resp: All agencies)

20. Prime Minister Ky will announce some of the economic stabilization measures to be taken by no later than mid-February. (Resp: GVN; U.S. Mission to monitor)

21. The GVN agreed to carry out promptly the measures to which it had agreed with Mr. Bell in early January. (Resp: GVN; USAID and Embassy to monitor)

V. Public Affairs

Consensus: The U.S. and the GVN will both lay stress on their joint efforts to carry out a social revolution and build a new society in South Viet-Nam.

1. The U.S. and GVN will both publicize the Honolulu meeting. (Resp: GVN, all U.S agencies)

2. The President urged GVN officials and Secretary Gardner to stress at every possible opportunity work being done in increasing school enrollments, building schools and increasing the number of health teams. (Resp: GVN, HEW)

3. Generals Ky and Thieu should be encouraged to make more American TV appearances. (Resp: JUSPAO)

VI. General and Miscellaneous

Further Action:

1. It was agreed that GVN and USG leaders will have similar meetings in the future “for the continued execution of the policies and purposes of the Declaration of Honolulu.” The first such meeting will take place about June, for the purpose of assessing progress on agreements reached at the Feb. meeting. (Resp: GVN, all U.S. agencies concerned)

2. The U.S. will try to formulate a way to better our organization in support of the Vietnamese effort.

1. Source: Johnson Library, National Security File, Country File, Vietnam, vol. XLIX. Secret.
2. As recorded in public communications, records of plenary and working group sessions and notes on restricted sessions. [ Footnote in the source text.]
3. Not further identified.
4. Dated February 15. (Department of State, Central Files, POL 27 VIET S)
5. Dated February 17. (Ibid., POL 15 VIET S)
6. Dated February 22. (Ibid.)
7. Dated February 15. (Ibid., Ball Files: Lot 74 D 272, Viet-Nam, Misc. Notebooks)
8. Not attached.