851G.00/10–647: Telegram

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

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329. Little change overall situation, French sitting tight and next move up to natives who don’t seem to be getting together. Conflicting reports re Bao Dai and his attitude but some native contacts complain he doing nothing but talk, all of which in French favor. More and more French businessmen disgusted with whole show and want action, attitude being give natives what they want if French interests really protected. New Cochin-Chinese Govt being organized with perhaps better overall political party grouping than under Hoach regime. Hoach will be one of two Vice Presidents and Govt will include National Union Front Minister of Information and Propaganda as well as Popular Movement Minister of Education. Very little publicity given renewal Bollaert’s mandate as High Commissioner but much given Ho’s statement Bao Dai does not speak for country. Seems to be some political activity Cambodia with cousin of King trying organize party in opposition Democratic Party.

Reed