851G.131/12–2854: Telegram
The Secretary of State to the Embassy in France1
2342. Department’s 1974 repeated Saigon 2171.2
- 1.
- Viet Ambassador called obtain reply inquiry re $100 million advance
mentioned reference telegram. Department read and gave him copy
following statement which was prepared by FOA/W:
“In view of Congressional requirements under our MSP legislation and our policies in respect to foreign aid programs, we cannot make lump sum advances of aid funds in the manner requested by the Vietnamese Ambassador. However, our Mission in Saigon has under study in consultation with the Vietnamese Government means by which piasters could be generated during the early part of next year for purposes provided for in the U.S. aid program—within the limit of available U.S. funds for these purposes. In this connection we are particularly [Page 2433] concerned that more flexible piaster funding arrangements be made through the establishment of the new central bank now contemplated in Saigon. We are also contemplating the maximum possible liberalization of our regulations relating to the purchase of imports for Viet Nam under regular FOA procedures.
“We are confident that arrangements will be worked out to assure sufficient availability of piasters to the Government of Viet Nam to carry on necessary governmental operations during the transition period following the inauguration of direct aid.”
- 2.
- Ambassador stated request originated by Thoai3 in Paris and asked if US Embassy Paris could pass statement given above to Thoai. Unless objection perceived request Embassy do so.
- Drafted by Tyson of PSA. Repeated to Saigon for information as telegram 2624.↩
- The reference telegram, dated Nov. 29, not printed, indicated that the Vietnamese Ambassador had inquired whether the United States would be willing to advance $100 million to the State of Vietnam during January 1955. (851G.131/11–2954)↩
- Nguyen Van Thoai, Vietnamese Secretary of State for Economic Affairs.↩