751G.00/9–554: Telegram
The Ambassador in Vietnam (Heath) to the Department of State
899. Repeated information Paris 300. Dr. Fishel,1 STEM consultant and personal friend of President Diem, came to see me September 4 to tell me of latest activities of President and of conversation which Fishel had had with Foreign Minister Do.
Diem has now changed his mind and will not have General Hinh accompany him on three day tour refugee centers. This change due to Diem’s fear of placing himself in Hinh’s hands. He felt temptation might be too great for Hinh to find himself with President in areas remote from Saigon where only forces were national army troops responsive to Hinh’s command. Diem has thus decided to leave Hinh behind in Saigon “under close surveillance”. Diem’s tour of refugee centers is prompted not only by concern for refugees but also by fact he has no place to hang his hat for next few days as French have established themselves in Papais Gialong but have not yet made Palais Norodom available to Vietnamese Government.
During Diem’s absence Fishel has been charged with “reorganizing office of the president”, a task which he believes will be extremely difficult as it will not be possible make a clean sweep of incompetent personnel.
Diem also considering candidates to head “court of honor” which he will set up to inquire into personal finances government officials and punish grafters and corrupt elements. President is now inclined to go slow on agrarian reform program until he is in stronger position.
Fishel also told me of conversation he had with Foreign Minister Do. Do had talked with Binh Xuyen General Le Van Vien. Do said General Vien had gained impression US strongly backing Diem at this point and General therefore considering terms under which cooperation with Diem will be possible. General Vien would like to be Interior Minister as his price and in addition Do believes could be persuaded to close gambling houses in return for subsidy from government. General Vien’s gambling concession runs only until next February 1.
Do believes subsidy need not be more than about 5 million piasters per month as General Vien is already well established financially with handsome income from other investments. This matter has yet to be explored, but Fishel sees advantages in closing gambling establishments with much publicity while government quietly pays off General Vien behind the scenes.
- Dr. Wesley R. Fishel of Michigan State University.↩