751G.00/6–2154: Telegram
The Ambassador in France (Dillon) to the Department of State
4978. Sent Saigon 627, repeated information Geneva unnumbered. Ambassador Heath1 had interview this morning with Ngo Dinh Diem, new Vietnamese Prime Minister, who was accompanied by brother Ngo Dinh Luyen, now described as Ambassador-at-Large of Vietnam.
Diem concerned with Mendes-France’s policy on Indochina. Afraid that promise of cease-fire by July 20 indicated increased chances for settlement favorable to Vietminh. Diem’s conversations to date with Mendes had not been reassuring. Diem to see him once more before leaving for Saigon June 23.
Diem was sure he would accomplish his objectives in Vietnam (“I am best known figure in Vietnam after Ho Chi Minh”) but only if granted full powers by the French, similar to those he had already been granted by Bao Dai, and if French provided cover in maintaining present positions at least until autumn. When it was pointed out that new treaty relationship and conventions give powers, Diem replied would be some time before conventions were finally approved. We stated this contrary to previous understanding and asked what provision required further negotiation. He replied Vietnamese wanted French to cede control of bank issue and exchange control office [Page 1728] (Office des Changes). Diem’s appreciation functions these two organizations so lacking that we thought it useless to pursue question, simply reiterating desirability signing conventions as soon as possible.
We pressed for explanation why Bao Dai did not stay in Geneva, let alone return to Vietnam. In reply received series empty excuses including astonishing statement Bao Dai could not afford to live in a hotel at Geneva, it being more economical stay villa at Cannes. Later developed that in reality Diem and Luyen did not want Bao Dai back in Vietnam for two reasons: (1) they think he might be assassinated; and (2) because they thought his presence in Indochina and intriguing which would result would hamper their efforts establish and run govt. In this regard Diem reported he had been given full powers by Bao Dai and would operate without handicap of predecessors of having contend with imperial cabinet.
Both men regretted French military action of withdrawing forces from pacified areas in order to divert them to the defense of the delta. In this regard they mentioned Bui Chu and Phat Diem, Catholic-populated regions, but no others.
Luyen replied that Bao Dai was still awaiting answers questions put to Under Secretary at Geneva. Heath referred them to the Secretary’s June 11 Los Angeles speech setting forth conditions under which US could consider intervening in Indochina. Diem concerned with Mendes-France’s promise achieve cease-fire by July 20, stating that time of 3 or 4 months would be required before his govt could show results. Heath emphasized need Diem achieve results soonest.
Diem promised give Embassy results second interview with Mendes-France before departing Saigon. Heath told him of his own imminent return Saigon and intention continue work close cooperation with Diem Govt as he had with predecessors.
Heath made no effort to see Bao Dai who will presumably be in Paris for a few days.
- Ambassador Heath was in Paris, having served with the U.S. Delegation at the Geneva Conference.↩