ECA Cable File: FRC Acc. No. 53A278: Telegram1
The Chief of the Special Technical and Economic Mission at Saigon (Blum) to the Economic Cooperation Administrator (Foster)2
Toeca 841. For Foster and Griffin. For State.
1. Saigon Legtel 2355,3 rptd Paris 944 raised important fundamental questions concerning American IC policy in general and STEM operations in particular. It provides opportunity at close our first year activity and when new appropriation being considered to review STEM policy and work against broader background American policy. Pls read this cable in conjunction with Toeca 721, rptd Paris Torep 95 June 19.4
2. Although I agree fully with the promise of Legtel 2355, that it was and is US policy “to supplement but not to supplant” French and that without French support a free Vietnam wld immed collapse, I do not believe the analysis of present IC situation goes far enough or reaches in all respects valid conclusions, particularly as far as STEM is concerned.
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27. The argument might be made that there shld be closer and more systematic consultation on our program with the Fr. This point of view has considerable appeal and certainly everything shld be done to keep the Fr as closely informed of our work as possible. We must realize however that there are pitfalls. Basically the Fr are not very sympathetic with our program and wld much prefer to see our money used for other purposes such as mil expenditures and to cover budgetary deficits of the three states or the debts inherited by them from Fr. They have said so. We wld have to expect that close consultation wld be accompanied by constant Fr insistence on this approach and that unless we altered our program constant difficulties and bad feeling wld probably result. Increased consultation wld be profitable only within a framework of agreed premises that does not now exist.
28. The question also arises whether such a consultative relationship wld be mutual so that we wld be consulted on the Fr plans just as they wld be on ours. There wld be the further question as to what participation [Page 451] the Assoc States wld have in these arrangements. It is very doubtful that they wld wish see coordination systematized. Even assuming that we try to systematize coordination and consultation all around the board, it is well to recall that neither the quadripartite procedures developed for the commercial import program nor the triple tripartite negot of the bilateral is a happy augury for smooth and speedy work. The institution of more systematic consultation and coordination shld therefore be considered only in relation to a reexamination of our entire program.
29. If the strengthening of the Fr is an imperative short term necessity, strengthening local anti-Commie aspirations is no less mandatory if the Fr presence is to be continued and for the maintenance of our influence here. During its first year-operation the STEM program has been greatly handicapped and its beneficial psychological results largely negated because the US has been pursuing at the same time program of support to the Fr. It can hardly be said that the reverse is true and that the STEM program has weakened our support of the Fr. If STEM were to be reduced to a secondary role, and be under constant pressure to apologize for its presence in a desire to pls the Fr, the effort being put into it wld no longer be justified. The dilemma will not be quickly resolved, but in my opinion the solution does not rest in the decision to trim our sails to every changing wind of Fr humor. If this were to be done I wld recommend instead that the STEM program be withdrawn entirely, as its purpose, which is polit one, cld not then be served, although it cld continue perform useful econ and social tasks.
30. We must do everything we can avoid undermining the Fr position but we must recognize that this undermining is the work of the Viets themselves, brought on in part by Fr mistakes, and has been going on for many years. Perhaps the best we can hope for is to conduct here a kind of uneasy holding operation until something else happens in another place. If and when this happens the Fr may have to withdraw entirely, and unless we are willing abandon this area indefinitely we shld try maintain position of influence in this part of world where only break with past offers a firm foundation for the future.
31. I think our position in these matters needs to be explained quite openly and frankly to the Fr who shld see that it is no narrow selfish interest that inspires us. I do not think the tone shld be an apologetic one. We are helping defend their interests as well as ours. Unless we take firm stand on our rightful position and do not allow, by our own inaction or self-deprecating attitude, the impression to grow that we are anti-Fr, we will find our standing gradually undermined and our usefulness ended. On the basis of my experience during the past [Page 452] year I am confident that an understanding with the Fr is possible provided we hold firmly to the principles that brought us here.
32. In my opinion the problems now under discussion, including those analyzed in this cable, need to be carefully reviewed so that, if necessary, new policy decisions may be taken. I think such a review shld precede any further conversations with the Fr whether in Wash, Paris or Saigon.
33. Pls pass to State. This cable has been shown to Min Heath.
Sent Washington Toeca 841, rptd Paris Torep 114 (pass Embassy and ECA France).
- File of Economic Cooperation Administration telegrams located at the Washington National Records Center.↩
- This telegram was sent in eight parts totalling fifteen pages. The extracts printed here are from sections one, seven, and eight.↩
- June 29, p. 432.↩
- An extract from Toeca 721 appears in footnote 2, p. 436.↩