751G.00/8–552: Telegram

The Ambassador at Saigon (Heath) to the Department of State

confidential

304. Rptd info Paris 70, Hanoi unnumbered. Persistent canard re intentions Fr to negot settlement with VM again current among Vietnamese. This time linked with Bao Dai‘s forthcoming trip to France. Allegation is Bao Dai removing himself from IC scene to avoid being implicated and also to facilitate negots. Latest rumors thus far more vague and lacking in details than previous ones. Recrudescence this theme indicative continuing susceptibility Vietnamese to suggestions Fr seeking way out of difficulties by deal with VM.

Another story making rounds of Viet circles is that Bao Dai stock has gone up since dismissal of former Pres Tran Van Huu and that imperial position has been substantially buttressed by increased number Bao Dai men in key positions. In Paris Bao Dai will make a play to further enhance his prestige by pressing for addtl concessions from Fr, notably greater Viet voice in mil policy decisions and larger role for Viet higher officers.

We believe above two items nothing more than local gossip. What appears real, however, is that Vietnamese outside govt circles who were momentarily shaken from their usual carping and pessimistic attitude toward Natl Govt by series of bold and unequivocal statements made by Pres Tam and Bao Dai are now becoming restless. Willingness to withhold judgment until govt had chance to prove itself, which very evident several weeks ago, giving way to criticism that “fine declarations” have so far amounted to little concrete. It is asserted:

1.
Natl Provisional Council project is developing very slowly and ambiguity which surrounds its composition lends substance to view its members are likely to be hand-picked groups of “safe” men. It is said that some moderate but well thought of leaders who had been approached had refused participate in Council.
2.
Much daunted propaganda action program promised by Info Min Giao has never gotten underway. With Giao out of country his deputy reportedly avoiding taking action. Other mins finding that shortage of funds and polit “realities” are proving almost insurmountable obstacles to implementation programs
3.
There is glaring lack of dynamism and know-how among weaker Cab members. Tran Van Que, Secy of State for Studies and Reform, for instance has reportedly not even organized a team.

Comment: The “fence sitters” and opposition have terminated their temporary and partial truce of criticism of the Tam regime and the anvil chorus is again in full swing. The publication of the budget and constitution of the Natl Provisional Council which shld [Page 237] occur shortly may mute some of this criticism. Magnitude of probs besetting Tam are such however it wld seem unrealistic to expect that Tam can maintain pace which will satisfy notoriously critical Vietnamese.

Heath