851G.00/1–347: Telegram
The Consul at Saigon (Reed) to the Secretary of State
4. Moutet5 went to Hanoi yesterday; reportedly will return today. Official reticence as to whether will meet Ho6 or other representative Vietnam Government but known French hope arrange cease-fire. In conversation with representative Socialist press, Moutet stressed desire settle conflict but reiterated French stand willing to give autonomy internal affairs but France to handle external relations and to maintain her legitimate economic interests. All this far less than Vietnam has claimed and far short of independence, but many Cochin-Chinese who formerly spoke of union and outright independence now speak of progressive independence.
Continuance of isolated incidents in Cambodia and restored territories but on the whole, situation not unfavorable and French not uneasy.
Dept please repeat to Paris.7