851G.00/5–247: Telegram
The Consul at Saigon (Reed) to the Secretary of State
141. Source who often gives correct information states French-Vietnam negotiations proceeding faster than anticipated and anticipates definite change in situation in not too distant future, also believes Ho will remain.
Definitely two trends to negotiations: (1) to recognize Ho because of undoubted influence with bulk of natives but eliminating extreme elements and (2) to deal with Bao Dai who apparently has Chinese backing and who enjoys growing popularity.
Changes in high Government personnel and apparent scrapping of ideas, projects former High Commissioner is disturbing to many French who feel Bollaert to arrive at quick solution will go too far in yielding to Vietnam desires.
Anti-French activities on increase and April 29 night 20 grenades thrown in city and 1 land mine exploded near city center—this after city-wide raid led to detention over 1200 natives.
Contacts descending from north express concern over possible famine conditions and lack of repairs to dikes.
Please pass Paris.