NND Project Number: NND 63316. By: NWD Date: 2011
U.S. appropriations available in Vietnam, Vietnamese calendar year expenses have normally been paid from funds appropriated for the U.S. fiscal year.
c. However, if it is necessary to reduce Vietnam's share of the $700,000,000 currently appropriated for Southeast Asia, it would be possible to limit the amount made available to Vietnam to $172,300,000 (required for 1st half of CY 1955) if we could be assured of $155,000,000 (required for 2nd half of CY 1955) from new FY 1956 appropriations.
d. Estimated costs for CY 1956 are:
CY 1956
1st Half | 2nd Half | |||
Military | $ 91.4 | $ 88.6 | ||
Non-Military | 40.3 | 33.3 | ||
Total Costs | $131.7 | $121.9 | ||
Less Vietnamese Contribution | 28.5 | 28.5 | ||
Remaining Requirement for U.S. Funds | $103.2 | $ 93.4 |
e. The requirement for U.S. funds for the second half of CY 1955, $155.0 million, added to the requirement for U.S. funds for the first half of CY 1956, $103.2 million, or a total of $258.2 million, would be the total requirement for U.S. FY 1956 appropriations. A contingency fund of $20 million may be required for FY 1956 as indicated in Enclosure "B".
5. In view of the importance of Vietnam to all of Southeast Asia, I an convinced that the United States should expend the funds, materiel, and effort, required to strengthen the country and help it retain its independence. I cannot guarantee that Vietnam will remain free, even with our aid. Buy I know that without our aid Vietnam will surely be lost to Communism. If the chances of success are difficult to calculate, the results of a withdrawal of American aid are only too certain, not only in Vietnam but throughout Southeast Asia. Such a withdrawal would hasten the rate of Communist advances in the Far East as a whole and could result in the loss of Southeast Asia to Communism. In my opinion, the chance of success is not only worth the gamble; we cannot afford to let free Vietnam go by default.
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J. Lawton Collins
Special Representative
of the United States in Vietnam
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