851G.00/12–2846: Telegram
The Ambassador in France (Caffery) to the Secretary of State
[Received December 28—9:40 a.m.]
6304. In conversation with Baudet yesterday, he said he did not anticipate any decision on policy in Indochina until report had been received from Moutet. Referring to Mr. Acheson’s conversation with Ambassador Bonnet (Deptel 6586, December 24), Baudet minimized danger of intervention on part of Chinese. He professed to have no information other than that which has appeared in press re refugee Nanking Annamite Government formed by Nguyen Tuong Tarn but still considered it of little importance since Tuong and his party have very little popular following in Indochina.
Baudet felt that emphasis placed by Maurice Schumann and Admiral D’Argenlieu on Vietnam membership in Indochinese Federation (mytel 6183, December 1991) was misleading since it had already been generally agreed that Indochinese Federation should be limited largely to economic and financial matters and would have only limited political functions. Two fundamental issues separating French Government and Vietnam are, according to Baudet, (1) Vietnam demand [Page 82] that their independence (or autonomy as French prefer to express it) within French union should include right to have their own diplomatic representation abroad; and (2) question of inclusion of Cochin China within Vietnam. As has been reported before, Baudet feels some compromise can be worked out on latter point based on theoretical inclusion of Cochin China within Vietnam state but with autonomous [status or?] special guarantees for French interests.
Sent to Washington as 6304, repeated London as 842.