851G.00/4–2746: Telegram

The Consul at Saigon (Reed) to the Secretary of State

confidential

122, Mytel 121, April 27, 10 a.m.35 Returned yesterday from Hanoi where situation tense. Called on all high French, Chinese, Vietnam officials. He [Ho?] dwelt largely on Cochin China issue, first, must join Vietnam, second, French must cease entering Cochin China; he also mentioned need for complete financial independence, own bank and own bank note issue. He was highly indignant action of French in arresting and dispelling [expelling] from Dalat Dr. Thach, Cochin Chinese delegate to Dalat conference. He expressed hope for future if French lived up to their agreements which he rather doubted but added that outside help, chiefly capital and technical aid, must be supplied.

Pessimistic views held by all French regarding success of Dalat conference which is now suspended for a few days while Vietnam demands regarding Cochin (cease hostilities, release political internees Armistice Commission and political freedom) and French counteroffer regarding all Indochina (establish special committee to investigate Vietnam-French incidents) are being studied and that French have now adopted thesis conference merely preliminary and Paris [Page 38] approval must be obtained which is contrary previous understanding. French defend arrest, expelling Dr. Thach on grounds that he is notorious anti-French Cochin Chinese and that Cochin China not yet part of Vietnam.

French insistence withdrawal Chinese from north and all-over procrastination to Dalat may have ulterior motives as it is not impossible French military coup may be brought off as soon as Chinese gone. Some French civilians have spoken of this “as putting Vietnamese in their place”. In any event over-all picture is not happy one and much compromise, good faith and tolerance needed to effect peaceful settlement.

Reed
  1. Not printed; for summary, see circular telegram of April 30, 11 a.m., infra.