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The forces of France and the Associated States in Indochina have for 8 years been engaged in a bitter struggle to prevent the engulfment of Southeast Asia by the forces of international communism. The heroic efforts and sacrifices of these French Union allies in assuring the liberty of the new and independent states of Cambodia, Laos and Vietnam has earned the admiration and support of the free world. In recognition of the French Union effort the United States Government has in the past furnished aid of various kinds to the Governments of France and the Associated States to assist in bringing the long struggle to an early and victorious conclusion.
The French Government is firmly resolved to carry out in full its declaration of July 3, 1953,(2) by which is announced its intention of perfecting the independence of the three Associated States in Indochina, through negotiations with the Associated States.
The Governments of France and the United States have now agreed that, in support of plans of the French Government for the intensified prosecution of the war against the Viet Minh, the United States will make available to the French Government prior to December 31, 1954 additional financial resources not to exceed $385 million. This aid is in addition to funds already earmarked by the United States for aid to France and the Associated States.
The French Government is determined to make every effort to break up and destroy the regular enemy forces in Indochina. Toward this end the government intends to carry through, in close cooperation with the Cambodian, Laotian, and Vietnamese Governments, the plans for increasing the Associated States forces while increasing temporarily French forces to levels considered necessary to assure the success of existing military plans. The additional United States aid is designed to help make it possible to achieve these objectives with maximum speed and effectiveness.
The increased French effort in Indochina will not entail any basic or permanent alteration of the French Government's plans and programs for its NATO forces.
American Foreign Policy 1950-1955
Basic Documents Volumes I and II
Department of State Publication 6446
General Foreign Policy Series 117
Washington, DC : U.S. Governemnt Printing Office, 1957