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-2- reconsideration. Financial assistance for economic and social development in the amount of approximately $250 million over a period of five years is, however, required. Such assistance must be firmly conditioned on satisfactory performance by the Philippine Government and must be effectively utilized as a lever by the Mission to obtain such performance. The Government must at the same time be persuaded to intensify and rationalize the military drive against the Communist guerrillas. This will probably require United States advice on tactics and opera tions down to the combat level and may also require additional mill- tary assistance. It is to be emphasized, however, that the military effort against the Communists cannot succeed unless the requisite economic, social and dministrative reforms are adopted. A summary of the Bell Mission report is attached as Tab S. An intelligence estimate of Communist capabilities and threat in the Philippines is attached as Tab T. CONFIDER

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    "ocrText": "-2-\nreconsideration. Financial assistance for economic and social\ndevelopment in the amount of approximately $250 million over a\nperiod of five years is, however, required. Such assistance must\nbe firmly conditioned on satisfactory performance by the Philippine\nGovernment and must be effectively utilized as a lever by the\nMission to obtain such performance.\nThe Government must at the same time be persuaded to intensify\nand rationalize the military drive against the Communist guerrillas.\nThis will probably require United States advice on tactics and opera\ntions down to the combat level and may also require additional mill-\ntary assistance. It is to be emphasized, however, that the military\neffort against the Communists cannot succeed unless the requisite\neconomic, social and dministrative reforms are adopted.\nA summary of the Bell Mission report is attached as Tab S.\nAn intelligence estimate of Communist capabilities and threat in\nthe Philippines is attached as Tab T.\nCONFIDER"
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