The report, now known as the "December 1961 White Paper," argued for an increase in military, technical, and economic aid, and the introduction of large-scale American "advisers" to help stabilize the Diem regime and crush the NLF. As Kennedy weighed the merits of these recommendations, some of his other advisers urged the president to withdraw from Vietnam altogether, claiming that it was a "dead-end alley."

In typical Kennedy fashion, the president chose a middle route. Instead of a large-scale military buildup as the White Paper had called for or a negotiated settlement that some of his advisers had long advocated, Kennedy sought a limited accord with Diem. The United States would increase the level of its military involvement in South Vietnam through more machinery and advisers, but would not intervene whole-scale with troops. This arrangement was doomed from the start, and soon reports from Vietnam came in to Washington attesting to further NLF victories. To counteract the NLF's success in the countryside, Washington and Saigon launched an ambitious and deadly military effort in the rural areas. Called the Strategic Hamlet Program, the new counterinsurgency plan rounded up villagers and placed them in "safe hamlets" constructed by the GVN. The idea was to isolate the NLF from villagers, its base of support. This culturally-insensitive plan produced limited results and further alienated the peasants from the Saigon regime. Through much of Diem's reign, rural Vietnamese had viewed the GVN as a distant annoyance, but the Strategic Hamlet Program brought the GVN to the countryside. The Saigon regime's reactive policies ironically produced more cadres for the NLF.