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Appendix C JGS Letter to DAO on FY 75 Funding REPUBLIC OF VIETNAM DEFENSE MINISTRY JOINT GENERAL STAFF, RVNAF OFFICE OF THE COMMANDING GENERAL Ref 4201/ TTM/ VP/ TMT General CAO VAN VIEN Chief, Joint General Staff Republic of Viet Nam Armed Forces Major General IRA A. HUNT Acting Defense Attache Embassy of the United States of America SAIGON Subject: FY.75 fund. 1-The Joint General Staff has been informed by the Defense Attache Office that the Military Assistance Fund for the Republic of VietNam may stay at the 700 million US dollars level. 2-DAO also informed that within the 700 million the following expenditures will be included: -F.5E purchase................................................ 77.4 million -Ammunition pipeline.....................................55.0 " 346 Appendix C -Transportation................................................ 47.0 " -DAO............................................................... 35.0 " -Training in FY74.............................................. 9.9 " - " in FY75...................................... 2.5 " -F5A................................................................... 3.3 " _______________ 230.0 million Therefore, it will remain 470 million reserved for OM, and it will be allocated to 3 branches of services as followed: Army : 329 million Air Force : 130 million Navy : 11 million 3- With such really small OM fund (470 million over 1.219 million required) the combat efficiency and the moral of the RVNAF troops will be severely hurt. - In the past year, the RVNAF has endeavored in the field of protection and saving of ammunition of fuel, and of other military equipment by using them at the right place on the right time, and by avoiding waste and pilferage. - Even with a tremendous effort, the RVNAF feels it is impossible to operate with such a small military aid fund mostly during the period of communist readiness for a possible general offensive in Winter or Spring. The communism is exploiting the fact that the United States have cut down the Military Aid Fund to South Vietnam. They propagandize among their territorial troops that the RVNAF will not be supported effectively due to the shortage of ammunition, of fuel, of artillery etc. . . . when the communism besiege, shell, or launch an attack on the RVNAF. The communism also increased regularly their sabotage actions over the RVNAF logistics depots in order to destroy the RVNAF potential that they know the replenishment of which is quite difficult at the present time. The communism acquired more freedom in building up their re- [3.138.101.95] Project MUSE (2024-04-19 06:38 GMT) Appendix C 347 supply routes, in the transportation of supplies and men to replenish their logistic depots and their units, and specially they can cut short the time needed to reinforce the front in the South Vietnam with reserved divisions stationed in the North. 4-To assist the RVNAF in the duty of protecting South Vietnam, in which the United States Armed Forces had invested hundreds of billions of dollars and thousands of American lives, the Joint General Staff requested that the Defense Attache Office recommend to Washington the followings: a - Review the purchase of F.5E aircrafts this year, if it is possible to carry this program over next year. b - Review the ammunition resupply system in order to reduce the pipe line costs; allow the RVNAF to be resupplied with ammunition from depots situated in the South East Asia mostly during critical periods. c - Review other expenditures included in the 230 million, to reserve to the maximum this amount of money for the OM mostly for the purchase of ammunition, fuel and pharmaceutical products. d - Strongly recommend for an early increase of military aid fund to the minimum of one billion dollars for FY75. 5-In short with 700 million, in which 230 million will be set aside for the above mentioned obligated expenditure, the RVNAF will be short of ammunition, of fuel and of pharmaceutical products while carrying out the duty of defense South Vietnam against the communism aggression. The military aid fund of 1 billion in FY75 is highly necessary for the RVNAF. ...

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