793.5851G/9–2451: Telegram

The Secretary of State to the Legation at Saigon

secret

424. During course dinner conversation with de Lattre Sep 23, Merchant asked de Lattre status in intern KMT troops in Indochina and prospect their repatriation Formosa. Recognizing US interest in accomplishing repatriation, Gen stated emphatically that in view existing threat Chi Communist intervention he must avoid any action which cld be considered by Commies or by others as provocative, [Page 524] which he believed repatriation wld be. He added he found presence KMT troops expensive and source of difficulties with local population.

Sent to AmLegation Saigon, for info 424, AmEmbassy Paris, for info 1780, AmEmbassy Taipei, for info 265.

Acheson