Declassified per Executive Order 13526, Section 3.3
NND Project Number: NND 63316. By: NWD Date: 2011
TOP SECRET – Sensitive
in Vietnam is not bright, I believe that if Diem has firm US support and guidance and active French cooperation, or at least acquiescence, his government has a reasonable prospect of success.98
As a result of Collins' recommendations the NSC endorsed a strong policy in Vietnam: the US would continue to support the Diem government and continue to press France to carry out its commitments under the Smith–LeChambre agreement. The NSC approved in principle the programs of military and economic aid to implement Collins' recommendations (about $500 million) and determined to seek reaffirmation of the Manila powers' determination to react under the SEATO treaty if hostilities were resumed.99 Dulles decided to "take the plunge" and begin direct aid to Vietnam on January 1, 1955. The aid program was to be flexible and fluid, adjusted according to circumstances and subject to discontinuance at any time, as at present.100
- E. Crisis of the Spring, 1955
With strong United States backing, Diem went into the sect crisis of the spring, 1955. Different from the military coup crisis of Autumn 1954 end the Quat cabinet crisis of December, the sect crisis was resolved by Diem's taking firm action and was not followed by another. It was followed by the end of any real French presence in Vietnam.
- 1. The Problem of the Sect Armies
The sects had been quiescent but not quiet since Cao Dai and Hoa Hao ministers had joined the cabinet in September 1954. The end of French subsides for sect armies in February shook them out of complaceny. Diem agreed to pay a part of what the armies had received from the French to ease the transition of some 40,000 soldiers to civilian life. But transition it was to be: he would not tolerate armed bands separate from VNA command and separate from Saigon's political guidance. Sect leaders had different objectives, however. They wanted to preserve their military forces by integrating, intact, as many units as possible into the National Army. (With a VNA force level of 100,000, few could be accommodated; in January only 6,000 sect troops had been absorbed.) Secondly, the sects wanted substantial government assistance for soldiers forced to leave the military. Most important, they wanted recognition of their areas of influence and Diem's assurance that he would not encroach on their territories. Diem would countenance no part of this third request.101
Since December, a. Franco–American group headed by Col. Lansdale and directed to "come up with a peaceful solution" to the problem had worked furiously, found a solution and urged its prompt adoption. Generals Collins and Ely decided to give the matter further study. Lansdale's reaction:
