Evaluates implementation of Diem's 1957 Five Year Plan for economic development and social reform, noting that the creation of agrovilles and land development had priority over industrialization. Comments on shortage of capital and incompatibility between US aid procedures and medium-range development planning. Discusses the possibility of deficit financing and of attracting foreign private capital to finance big projects envisaged by the Plan. Mentions that granting of US aid only on a year-to-year basis hinders implementation of the Plan. Reports on the joint US-Vietnamese special-action program resulting from Vice President Johnson's pledge of US help to achieve a plan for medium-range economic development. [TAIC]
