751G.00/9–2954: Telegram
The Ambassador in Vietnam (Heath) to the Department of State
1269. Repeated information Paris 438. This morning September 29, Major Germann, General O’Daniel’s aide, went to see General Hinh at Hinh’s request. Purpose of conversation was desire Hinh to convey [Page 2092] reply to Diem’s proposal for rapprochement reported Embtel 1250, repeated Paris 433.1
Hinh told Germann he and his “friends” agree “in principle” to Diem’s proposal. They agree reluctantly to having Diem remain as President only because of US insistence. They would be “happier” with Xuan or Buu Loc as President. Hinh stated his conviction there could be no surge of national unity while Diem remained in office and he was convinced Diem will not be able lead united Vietnam.
Hinh’s agreement in principle based on following conditions: (1) Xuan to be Vice President and Defense Minister; (2) Cabinet must be reshuffled to include Binh Xuyen representation. Specifically, Binh Xuyen must have Ministries Interior and National Economy and Surete, which they presently control, must be raised to rank of Secretary State. In this cabinet reshuffle Cao Dai and Hoa Hao influence must not outweigh combination army and Binh Xuyen; (3) Army must nominate candidates for Secretaries of State in Ministry of Youth and Ministry National Defense giving them control of those two posts; (4) Defense Committee must be abolished (Defense Committee is purely honorary and composed of Cao Dai General Phuong and Hoa Hao General Soai); (5) Army must have authority over all echelons in pacification efforts, both civilian and military.
If these proposals are accepted, Hinh stated he would be “inclined to ask for one or two years leave”. (Comment: This is surprising statement and we do not quite understand Hinh’s motive in making it. It must be remembered he has made similar statements previously only to go back on them each time.)
Hinh said if his terms not accepted, “I will carry out coup d’état”. If for any reason he were prevented carrying out actual coup d’état by force, he will set up “rival government” and will go on “austerity basis” which he states will permit him get along without US support or aid. Hinh stated his rival government will control “75 percent of territory” in Free Vietnam. He assured Germann that he believed French would keep hands off even if he attempts coup d’état.
Above information has been conveyed to Diem through Dr. Fishel.