AID TO SOUTH VIETNAM

Press, Volume C, Issue 29508, 9 May 1961, Page 15

AID TO SOUTH VIETNAM

U.S. To Demand Reforms

(N.Z Press Association—Copyright)

WASHINGTON, May 8.

The United States had decided to link its offer of increased military aid to South Vietnam with stronger pressure for domestic reforms there, Washington officials said last night, according to United Press International.

The United States Vice-President (Mr Johnson) is scheduled to leave for Saigon tomorrow to discuss with President Ngo Dinh Diem a broad strategy for protecting South Vietnam against Communist aggression.

President Kennedy was described by Administration sources as determined to prevent the story of Laos from being repeated in Vietnam, United Press International said.

The Administration believed there still was a good chance of stopping the Communist drive into South-east Asia if vigorous action was taken now. Otherwise it was feared Communist guerrillas might establish firm footholds in South Vietnam—either in territory or popular following.

A policy study headed by a White House adviser, Mr Walt Rostow, had concluded that both military and political economic decisions were needed both in Washington and in Saigon. American officials said President Diem would be urged to move faster on promised steps to liberalise his regime and identify it with Vietnam’s popular causes and needs. President Kennedy and his Secretary of State (Mr Rusk) emphasised last week that the ultimate decision in.the struggle with communism hinged on the success of nonCommunist Governments in rallying their people to defend their independence. On the military front, the United States has announced a sharp increase in military aid to enable South Vietnam's 150,000-man Army to move faster in tracking down the Communist guerrilla forces, and in intercepting their supply and troop movements from Communist North Vietnam. The United States Administration also has been considering President Diem’s request for more United States arms and' money to support a 20.000-man increase in the army's strength. The United States was likely to support some of the increase, informed sources said. U.P.I. reported. The National Security Council has been considering other measures, including a pledge of United States armed action or a possible joint intervention by the South-east

Asia Treaty Organisation if this becomes necessary. Both Australia and New Zealand are S.E.A.T.O. members.

More unconventional measures also have been considered. U.P.I. said some American officials were known to be pessimistic about assuring South Vietnam’s security as long as only the Communist forces were on the offensive.