Word: indo-china
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...This seemed to mean that the U.S. was ready to give up the U.N.'s declared objective (October 1950) of a "unified, independent and democratic" Korea. Leviero went on to say that the administration wants to persuade the Chinese Communists to stop sending arms to warring comrades in Indo-China in return for a U.S.-French "guarantee that Indo-China would be governed by native leaders." As to Formosa, the Administration is considering a "United Nations trusteeship for that strategic island, with the creation of a republic of Formosa as the ultimate goal." This seemed to imply 1) recognition...
...Indo-China is a particularly appropriate place to carry on our resistance to Communist aggression; the war there is not stagnant like its Korean counterpart. Since China has no troops committed to the Communist army, a strong offensive could win the war. With a comparatively small addition of arms aid, there is an excellent chance that the Vietnamese troops could reinforce their territory behind the Communist lines and use it as a foothold for all out attack...
Sending these arms and giving extra money specified for use in Indo-China will help cut down the drain on the French economy. Each yearn France has spent over a billion dollars of her own money, forty-three percent of the military budget, and diverted half a billion in U.S. aid to fight this war. Once freed, much of this money could be used to build divisions for European defense...
...second part of the new policy, direct arms aid for Indo-China, will give the Vietnam government more autonomy. The villagers, who are not enthusiastic about fighting for a French army after years of European domination, may be more willing to cooperate with an army that is truly their own. Vietnam needs their support to solidify any offensive...
...spending more money on Indo-China now, the United States may end a war that would otherwise drag on indefinitely, and at the same time gain the confidence of the people of Vietnam. We hope that this type of clear thinking will characterize the new State Department policy in Asia...