751G.00/7–2954: Telegram
The Ambassador at Saigon ( Heath ) to the Department of State
370. Repeated information Paris 139, Hanoi unnumbered. Following our discussion of refugee problem yesterday (my telegram 360)1 Diem discussed political situation. He said apologetically that reports he had offered his resignation on July 22 were correct. (When I saw him on July 23, my telegram 304,2 he indicated he was not planning to resign.)
Diem said he felt he was honor-bound to offer resignation to Bao Dai, since he had failed to prevent partition of Vietnam. (Bao Dai had replied immediately by cable refusing the resignation and asking for cabled assurance that Diem would continue on in office, which Diem immediately gave.)
I told Diem of my talk with General Phuong, Cao Daist Commander; that I had urged Phuong to support new government and latter had said he was willing to do so if government invited his support.3 I intimated it might be well to assure himself of support of that sect which was more important and stood on higher ground than Binh Xuyen and Hoa Haos. Diem replied he had rather good impression of Phuong and agreed that Cao Daists were on higher moral plane than other two sects. He said trouble was these sects insisted on retaining full administrative powers in regions which they dominated.
[Page 1891]Diem said he was prepared to announce Cabinet changes and additions. He had offered Cabinet appointments to several good men, all of whom had asked for several days to consider his offer. He said that “people” had expected him to dismiss incompetent officials and punish corrupt ones. He wanted to replace Mayor of Saigon at earliest possible moment. He planned to proceed with a program of “purification” but he could not do so until he had a definite government firmly established and particularly until he had police under his control.
He went on to say he felt convinced of General Ely’s loyalty but there was no doubt that lower echelon Frenchmen were encouraging pretentions of the sects in south Vietnam. After all French had made and paid these “confessional armies” and the sects were quite ready to permit continuing French overlordship if they saw any profits or power in so doing.
Diem said French Government should be grateful to him for he had prevented demonstrations against French when news of Geneva accord had become known.
- Telegram 360 from Saigon, July 28, is not printed.↩
- For telegram 304 from Saigon, July 23, see p. 1872.↩
- Ambassador Heath and General O’Daniel met with General Phuong at the request of the latter on the evening of July 27. The conversation was reported in telegram 348 from Saigon, July 28. (751G.00/7–2854)↩