Arrangements have been completed so that on January 1, 1955, the United States can begin supplying financial aid directly to the Governments of Viet-Nam, Cambodia, and Laos for the purpose of strengthening their defense against the threat of Communist subversion and aggression. This direct aid reaffirms the independent status these Governments now possess, and is in addition to the economic aid that has been given directly to these three states by the United States since 1950. The aid will be given pursuant to section 121 of the Mutual Security Act of 1954 which provides for "the furnishing, as far as possible, of direct assistance to the Associated States of Cambodia, Laos and Viet-Nam...." The provision of U.S. aid directly to these Governments was confirmed by the communiqué issued at Washington on September 29 of this year, following talks between representatives of the United States, France, and the Chiefs of Mission of the three Associated States and by letters from President Eisenhower to the King of Cambodia and to President Diem of Viet-Nam.

(1) Department of State Bulletin, Jan. 10, 1955, pp. 51-52. Back