751G.00/2–2153: Telegram
The Ambassador at Saigon ( Heath ) to the Department of State
1661, Repeated information Hanoi unnumbered, Paris unnumbered. Joint Embassy STEM message. Chief of STEM 1 and I called on President Tam February 18 to discuss several accumulated problems:
1. Technical Assistance.
Subject associated with offer help in staffing a national economic council and planning board. Tam appreciated information supplied [Page 393] regarding similar institutions Thailand and Laos but indicated due basic accord with French question American technicians delicate. President stated firmly no question at all that American experts should be employed by STEM supervise US-financed projects, but Tam clearly implied government unable accept technicians not associated with projects thus excluding experts in field public administration, tax reform, statistical services et cetera. Since clarification Vietnam stand this question considered vital future planning STEM, we left aide-mémoire 2 previously discussed with Janot, director Letourneau’s cabinet.
Comment: STEM and Embassy would appreciate MSA/W and State’s reaction this situation particularly whether we should continue push for acceptance non-project associated technicians. If Washington believes question should not be considered closed, we recommend further discussions with French at possibly Washington or Paris level. Possible [Possibly] wisest course might be consider supplying this type technician definitely French responsibility now possible of implementation through new French economic and technical mission.
2. Gocong Land Reclamation Project.
We suggested that before this project commenced Vietnam should consider the following:
- (a)
- Instituting land reform within area since considerable part of it held by large proprietors. Tam response not too definite but he indicated that he was already in touch with one or two of the owners.
- (b)
- Applying 1947 landlord-tenant law for Cochin China which provides generally for 40 percent of harvest as payment by tenant instead of actual payments roughly 50 percent. Tam explained he considered the 1947 law not in effect, had asked Agriculture Minister Quy to revise and simplify it, latter had become too involved in study land laws other countries, and he himself had undertaken draft new legislation.
- (c)
- Instituting some form capital increment assessment tax. Tam’s first reaction was better to continue old system of relying upon normal reassessment of land with consequently increased real estate tax returns. When I pointed out that special assessment tax could also be applied urban improvement, President was considerably interested.
Comment: Fact President feels only he can draft landlord-tenant law indicates certain lack of confidence in his associates and of technicians in government. His reaction applying land reform tends confirm our impression that Tam wishes handle agricultural reform on highly personalized basis. If this is true, difficult see how it can be quickly implemented or objectively administered.
[Page 394]3. Trainees.
We noted Tam had reduced trainee candidates proposed by Ministers of Public Works and Agriculture from six each to three each. Tam explained Vietnam so short of technicians he could not authorize their leaving their posts although he did not object to having even “300” young students given scholarships for study in the States.
Comment: We sympathize with President’s desire not lose even temporarily any of the too few even semi-trained technicians which government now has, but believe in long run this will prove shortsighted policy.
4. Dong Quan Pacification Project.
Tam highly critical this scheme contrasting it unfavorably with much cheaper project which he wanted develop with US help on edge of Plaine des Jones but willing Tri finish project in order prove whether it will actually be successful or not. Bartlett took occasion inform President Tam that STEM mission maintains completely neutral position in any such matter where differences of opinion exist within the government.
Comment: STEM and Embassy realize Dong Quan calculated risk, but urge Governor Tri be allowed finish his experiment since no other form civil pacification has yet proved successful in delta. Fuller report by airgram.
General comment: Bartlett and I believe discussion most useful in clarifying issues. Certainly indicative degree to which policy decisions are concentrated in office of President himself and explains one reason for delays often encountered in getting action.