Page:Pentagon-Papers-Part V. B. 3. a.djvu/187

Declassified per Executive Order 13526, Section 3.3
NND Project Number: NND 63316. By: NWD Date: 2011

 

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b. Political Program. Pursuant to the French declaration of July 3, M. Laniel has assured U. S. representatives of his determination to grant genuine independence to the Associated States without the strings which have marked the previous grants of "independence". He apparently envisages something very much like Dominion status, retaining only such French authority and privileges as may be agreed.

c. Fiscal Rehabilitation. Laniel conceives his project for Indochina as an integral part of a new and supreme effort by France to "put its house in order". He plans to approach a balanced budget during CY 1954. This will involve a cut in French military as well as civil expense for that year. At the same time he contemplates a greater effort in Indochina. To do this he asks the U. S. for additional assistance amounting to about $400 million for FY 1954.

6. a. Attached are two tables showing (1) the financing of the Indochina war in CY 1953 and as proposed for CY 1954; and (2) U. S. aid for France and Indochina under 1953 program and 1954 appropriations. They contain tentative figures for 1954.

b. As the first table makes clear, under the proposed program, the United States would assume about 50 per cent of the 1954 budgetary expenditures ($829 million out of $1,676 million) and, if end-item aid is included, would be carrying about 61 per cent of the total financing. This would represent about two and one-third times the amount of U. S. aid for CY 1953.

c. As shown by the second table, this program would entail an increase of $403 million over the assistance now planned for France ($1,286 million). Of the total French military budget for both Indochina and NATO, the presently planned U. S. aid, including end items, would be 26 per cent; if the aid were increased as requested, such U. S. assistance, including end items, would be 34 per cent of the total.

d. Finally, as the first table indicates, under the program, the total expenditures for Indochina for 1954, including end items, would be $2,160 million as compared with $1,700 for CY 1953.

 

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