Foreign Relations of the United States, 1951, Asia and the Pacific, Volume VI, Part 1

851G.00–TA/1–2551

The Chargé at Saigon (Gullion) to the Secretary of State

confidential

Saigon, January 25, 1951.

Subject: Point IV Program for Indochina.

In response to the specific questions raised in paragraph 4 of the reference telegram,¹ the Legation has been developing the Point IV program² for Indochina in the sense that it has had lengthy discussions of its intent and the best method of implementing it with STEM and that it has discussed its initiation with Vietnamese ministers. Assuming that the over-all cost of a single American technician brought to Indochina on an annual basis under the program might reasonably be expected to average $15,000 and that some funds would have to be spent for necessary supplies and equipment, the $400,000 earmarked for Indochina would finance the services of 20 to 25 technicians. The Legation and STEM believe that, provided the basic problems outlined below can be avoided or solved and provided the scope of permissible projects is not too limited, it should not prove impossible to develop projects which could absorb this moderate amount of technical aid.

The preliminary study of Point IV matters by American agencies in Saigon referred to above has, however, raised the following questions:

1. Will the French object to the program? As indicated in paragraph 3 of the reference telegram, the Department and ECA are well aware of the problem of foreign experts in Indochina. STEM has been able to circumvent it by the fact that its “advisers” are in a sense subordinate to the equipment and supplies which are being brought into the Associated States. The two are considered complementary aspects of a single program. This would not be the case with Point IV. In this program technicians, experts, or advisers would, it appears, have to be requested as such by the Associated States and equipment and supplies could be provided only when United States technicians work “on joint projects with Indoehinese”. It is noted that the Department wishes to have “official requests” based on “specific proposals”. The Legation and STEM, have been concerned whether these requirements, unless the initial approach were most carefully planned, might not lead to an open showdown by the French on the question of United States advisers under whatever guise they might assume. Such a showdown could conceivably endanger the excellent work which STEM has hitherto been able to accomplish. It is realized that the problem of whether or not foreign “counsellors, technicians or experts” can or cannot be officially requested by the Governments of the Associated States concerns only those states and France. The United States is, of course, not bound by the March 8 and comparable agreements.³ Nevertheless, if the United States appeared to be urging the Associated States to infringe” not only the letter but the spirit of these agreements, our relations with the French authorities here might be seriously impaired.

2. What kind of projects should be included under Point IV? The most useful short-term projects would obviously not deal with mass education or vocational training, but with fiscal management and overall administration. Yet it would appear obvious that it is precisely in these fields that French would consider any intrusion of American technicians as a danger to its own carefully guarded position in Indochina. France might also even react strongly against American technicians appearing to supplant French technicians in weather bureau and coast and geodetic survey work. As for higher education, the only University in Indochina at the present time is the University of Hanoi which has a branch in Saigon. Under Title III of the cultural convention between France and Vietnam signed December 30, 1949⁴ this University which is financed in equal parts by Vietnam and the French would be directed for at least six years by a French Rector who is also specifically given authority over its budget. In all these latter fields the prestige of French culture and science is at stake. In the former fields of fiscal and administrative management the political position of France in Indochina is at stake. If this reasoning is correct and if the United States at this time does not wish to force its technicians into Indochina against the wishes of France, it would appear that Point IV funds as far as Indochina is concerned would have to be limited to projects of mass education, vocational training and teacher training and even of these the French would probably look with suspicion upon United States assistance in training Indoehinese teachers on linguistic as well as cultural grounds. Nevertheless, particularly if technicians could be associated with supplying equipment and materials 20 to 25 experts could probably be officially requested by the Associated States and effectively utilized in vocational training where even the French would have to admit presumably that the United States is outstanding. The Minister of Education has already informed the Legation that American assistance in this field would be most desirable.

3. Are Point IV funds necessary? STEM has informed the Legation that it may have some funds uncommitted at the end of the present fiscal year. If so, theoretically these could be used for the same purpose as Point IV and the latter diverted to other areas. Nevertheless the Legation is aware that for political and psychological reasons Point IV program should be started wherever practical. It is a long term program and one which, if the problem of foreign experts generally were solved, could “contribute greatly to the economic development” of the Associated States.

4. Will the Associated States welcome the program? In spite of the fact that hitherto, unless encouraged otherwise by United States officials, the Governments of the Associated States have tended to think of requests for aid in terms of materials, equipment and funds, it is believed that they would generally welcome United States technical assistance on the scale projected. On many occasions indeed the need for initiating economic and social reforms and the need for improving and strengthening the administrative structure of the government has been brought to the attention of the highest Vietnamese officials. The general impression to date has been that these officials may not take drastic action, however, as long as they need important French military forces for the defense of their country, but will support United States efforts in technical assistance fields as long as they do not cause serious trouble with the French. In the final analysis, most Vietnamese are anxious to rid themselves of French advisers, would welcome United States technicians, but feel that they must exercise caution until the military situation is more stable.

Action:

1. The Legation is sending the attached note to the Governments of Cambodia, Laos and Vietnam and will discuss it informally with the High Commissioner’s Office. In drafting this note it was felt inadvisable to specify the type of projects which might be included in technical cooperation programs in order to permit flexibility in discussions with these Governments and in order not to raise unnecessarily in an initial written communication any implication that the Point IV Program might produce results which would infringe the agreements between France and the Associated States regarding the latters’ use of foreign experts.

2. The Legation would appreciate being instructed whether, as was apparently done in the case of Ceylon, it is contemplated under Section 406 of the “Act for International Development”⁵ that a formal bilateral general agreement should be negotiated with each of the Associated States or whether the Point IV Program might be initiated on the basis of specific projects. Under the circumstances, it would appear decidedly more desirable to proceed on the latter basis. In any event could the Department kindly furnish the Legation with a copy of the Ceylon agreement?

3. It would be appreciated if the Department could furnish the Legation with a copy of the United States–Ceylon agreement on technical cooperation programs.

Edmund A. Gullion

[Enclosure]

Note to the Governments of Cambodia, Laos, and Viet-Nam Regarding Technical Assistance Programs

Saigon, January 25, 1951.

The Minister of the Legation of the United States of America in Saigon presents his compliments to the Minister of Foreign Affairs of the (State of Vietnam, Kingdom of Cambodia, Kingdom of Laos) and has the honor to state that the Government of the United States has made available additional funds for the initiation of a new program of bilateral technical cooperation programs in Southeast Asia. This action represents a step in the development of what has been referred to as the “Point Four” program of the United States. It will be recalled that in his inaugural address of January 20, 1949 the President of the United States of America set forth in general terms four principal directives for the foreign policy of the United States. The fourth consisted in facilitating the development of areas not yet having reached their full economic potentialities by putting at their disposition the technical resources of the United States and, with the freely agreed cooperation of their peoples, in encouraging capital investment in these areas.

Although the American Legation in Saigon will assume major responsibility for coordinating technical cooperation programs insofar as the interests of the United States are concerned, the United States Special Economic Mission, and the United States Information Service are vitally concerned since projects advanced may closely involve their activities. If the (Government of Vietnam, Kingdom of Cambodia, Kingdom of Laos) wishes to consider participating in the new technical cooperation programs, it is respectfully suggested that, in order to explain the program and mutually determine how best individual projects might subsequently be developed, the (Government of Vietnam, Kingdom of Cambodia, Kingdom of Laos) may wish to designate a representative or representatives who could meet in the near future with representatives of the American agencies mentioned above.

To provide information regarding the background and United States legislative status of the Point IV Program a copy of the Department of State publication: “Le Point Quatre: Programme d’Application” and pertinent sections of the Act for International Development are attached hereto.⁶

1. Telegram 900 to Saigon, January 16, not printed.
2. Documentation on the overall administration of economic and technical assistance to underdeveloped nations within the “Point IV Program” is scheduled for publication in volume i. For documentation on Asian regional aspects of the program, see pp. 1 ff.
3. Reference is to the agreement between France and Viet-Nam embodied in an exchange of letters between Vincent Auriol, President of France, and Bao Dai, March 8, 1949. For the text of this agreement regulating relations between the two states, see France, Direction de la Documentation, Notes et Etudes Documentaires, No. 1147 (June 20, 1949), pp. 3–14, or Margaret Carlyle, ed., Documents on International Affairs, 1949–1950 (London: Oxford University Press, 1953), pp. 596–606. An English translation of the major portion of the agreement appears in Allan W. Cameron, ed., Viet-Nam Crisis: A Documentary History, vol. i: 1940–1956 (Ithaca: Cornell University Press, 1971), pp. 120–129.
4. On December 30, 1949, representatives of France and Viet-Nam signed at Saigon approximately thirty conventions providing for the transfer of powers in the following fields: justice, military affairs, economics, finance, public works, cultural affairs, public health, information, and personnel. For documentation on these agreements see Foreign Relations, 1949, vol. vii, Part 1, pp. 1 ff.
5. Reference is to Title IV of the Foreign Economic Assistance Act of 1950 (Public Law 535, 81st Cong.; 64 Stat. 198). Title IV authorized assistance under the Point IV Program.
6. The subenclosures do not accompany the source text.