212. Memorandum From the Deputy Director of the Office of Southeast Asian Affairs (Ewing) to the Director (Trueheart)1
SUBJECT
- Checklist of Developments During Your Absence: Laos
1. U.S. Operations
There has been an intensification of Steel Tiger activities. Defoliants authorized along a narrow strip of the SVN border. One B–52 strike (Duck Flight) close to the SVN border has taken place on a target developed by Shining Brass. There have been two more Shining Brass reconnaissance team penetrations (for total of 4). (I believe you have seen all the important messages on the above.)
2. Souvanna
Souvanna is in more of a fighting mood than ever and has reacted strongly to the NVN involvement in the Thakhek fighting of November. He warned the DRV Charge, for example, that unless NVN troops are withdrawn others (i.e. US) may feel they can bring in troops. We had a Nodis exchange with Sullivan on the use of napalm for which Souvanna was pressing.2 Souvanna has also talked to the SVN Ambassador (Nodis) re possible GVN military action from the east in the event the PL/NVN move against Mekong river towns.3
3. Publicity
The problem keeps getting worse and holding the “no comment” line more difficult in view of continual leaks by US and Lao sources. P is quite concerned.
4. Lao Military Operations
Having blunted PL/NVN advances in the Thakhek area in November, largely as a result of T–28 close air support, the FAR is slowly re-establishing its defensive lines in the area. However, PL groups are still moving about freely south of Thakhek and there has been some activity in the Savannakhet-Seno area. The FAR General Staff is apparently pushing Souvanna for more aggressive RLG action in southern Laos where they fear a PL/NVN attempt to take Seno. Operations are also underway to improve defenses around Tha Thom. Comment: As usual some [Page 428] of the generals want to bite off more than they can chew. They should concentrate on clearing up PL pockets in Mekong area and improving their defenses (as they plan in the Tha Thom area) rather than moves towards Muong Phine-Tchepone, etc.
5. US Presence
[1 paragraph (5–1/2 lines of source text) not declassified]
6. Political
Souvanna and Sisouk have had to do some work in countering criticisms and mild opposition that developed and resulted from their absences from Laos. A special Assembly session will take place in January. Originally it was intended to deal with economic problems (i.e. criticism of the RLG and US aid) but Souvanna and Sisouk have apparently succeeded in deflecting this and the special session will be concerned officially with the Phoumi case, with economic problems to be discussed quietly.
7. Economic
It looks like we will have trouble raising $16 million for FEOF. We have made our demarches here to all present donors and are now working on prospective ones (NZ today, Canada and Germany next week). A wrinkle has developed over implementation of the Nam Ngum project—the Lao want to manage the project, with the IBRD only managing the funds. This, of course, is unacceptable to us and the Bank. A donors meeting is scheduled in Washington December 22. We are still short of the $26 million requirement. On the domestic economic side we are still faced with the problem of local currency requirements for our aid program, including Wapi expansion. (We have sufficient counterpart to carry us through the fiscal year but will have a problem in early FY 67.) Vientiane is still calling for approval of the Hawaii survey team-recommended model secondary school in Vientiane as a new project to announce to the Lao. We have reservations about this project here and cannot give quick approval. There is also the problem of new commitments.
8. Co-Chairmen/ICC
The Co-Chairmen circulated their report to the signatories, pursuant to Article 19 of the Protocol, on November 25. If there are no replies within two months, the Co-Chairmen stated they would take this to mean the signatories agreed with the Co-Chairmen position not to recommend termination of the ICC at this stage. The PL, Hanoi, Peking and Moscow have attacked the ICC Report on the three NVN prisoners captured in 1964 (No. 35), which the British released unilaterally on December 6, as illegal, null and void. As yet, the PL, Hanoi and Peking have not addressed themselves specifically to the Co-Chairmen report although they continue to attack the Indians and Canadians who they say are playing the US imperialists’ game, etc., [Page 429] and do not investigate US violations (air activities) of the 1962 Agreements.
- Source: Department of State, EA/Vietnam, Laos, Cambodia Files: Lot 75 D 394. Top Secret; Limdis. Drafted by Barbis.↩
- Document 205 and footnote 4, Document 206.↩
- As reported in telegram 601 from Vientiane, December 1. (Department of State, Central Files, POL 27 VIET S)↩