851G.00/4–3049: Telegram

The Consul at Hanoi ( Gibson ) to the Secretary of State


34. Atmosphere Viet Namese circles Hanoi following action Territorial Assembly and arrival Bao Dai1 reflects first display even slight optimism. Demonstration fêting Bao Dai’s arrival took place all day 28th with apparent sincere display enthusiasm. Expected Viet Minh terroristic counter display failed materialize and during whole day only one grenade exploded in town, killing Viet Namese child.

Central Govt actively recruiting personnel for anticipated enlargement services. Have already hired one Consulate secretary at double present salary.

French circles severely depressed, convinced if their days are not numbered as result military crisis, changeover to Viet Namese Govt will accomplish same result. Colonialists appear be grasping for first time true impact March 8 accords and believe any future for French business lies in Cochin-China if at all. Hanoi director Denis Freres, leading French house, informed me that majority French interests Hanoi were quietly selling out, making plans return France and he would do same if he were able. This trend corroborated elsewhere.

Sent Department 34, pouched Saigon, repeated Paris.

  1. He reached Dalat on April 28 from Singapore.