751G.00/7–652: Telegram
The Ambassador at Saigon (Heath)1 to the Department of State
43. Rptd info Paris 7, Hanoi unn. I had my first talk with Tam yesterday. He was modestly optimistic regarding the prospects for achievement of his govt. He said that as a young man he had never dreamed that one day he wld head the govt of a reunited independent Vietnam. While two ministers (unspecified) were rather weak, he had in general a good governmental team which wld get results.
- 1.
- He was determined to increase the strength of the regular army, the regional militia, and provincial admin. On paper, the natl army was increasing fairly rapidly, but actually the real increase was small, since it was offset by reductions in the number of auxiliary troops and regional militia. To realize his plans of govtl and mil expansion, he must have more money, which he proposed to obtain by ruthless suppression of sinecures or nonessential govt jobs, by determined collection of existing taxes, by imposition of new or increased taxes, and by loans. It was no secret there were many firms and individuals who were dodging the greater part or all of their taxes. His govt must produce an honest public budget, available for inspection by Viets and by France and US, who were so generously assisting Vietnam. His Finance Minister thought he cld produce budget within two months.
- 2.
- Tam said he was determined stamp out corruption. One thing the Commies had achieved in areas under their control was suppression of graft. Viet Govt must be no less successful. He had abolished the old institution of high censorship and was replacing it with a corps of six inspectors. In response to my inquiry, he said that perhaps six inspectors were not enough, but he cld not be properly manned.
- 3.
Cabinet had that morning auth constitution of an advisory council of 20 members. This assembly wld be progressively invested with additional powers and increased to total membership of 100. From the start it wld have power of passing on proposed budgetary increases. The initial Assem wld be appointed by Bao Dai and wld consist of reps of the liberal professions, commerce, and agric.
It was not possible at this stage to elect the members, since almost certainly the VM wld be able thereby to infiltrate the body.
It will be noted that his present plan for formation of Assem differs from his original view, reported in Legtel 2419 June 52
- 4.
- Tam expected shortly to establish a rural credit bank to start land reform thru aiding tenants to purchase land parcels from large absentee landlords. Latter wld be glad to sell if assured payment. Govt had set aside 20 million piastres for initial capital of bank and MSA chief Williamson had promised assistance.
- 5.
- He remarked that while there had been no weakening of will and morale of VM command, there were signs of deterioration of obedience and morale in VM ranks and populations under VM control. He planned to exploit this deterioration, not merely thru propaganda of govt info service but thru non-Commie nationalist parties which still had connections and organization in many sectors entirely or partly under VM control.