35. Telegram From the Chargé in Vietnam (Kidder) to the Department of State1
3267. In his current troubles with Hoa Hao, General Soai, Diem now needs some money and needs it fast. The amount is 5 million piastres which Diem undertakes to repay in future.
Problem is this: Regular government payments to Cao Dai and Hoa Hao are now overdue. Each payment is approximately 5 million piastres reduced by Diem from formerly higher figures. Both groups are pressing Diem with increasing urgency. Diem can’t withdraw funds from National Treasury to pay one without paying other, US transaction would be clearly recorded on books.
In highly oriental fashion, Diem would like borrow 5 million piastres which he could slip under table to Cao Dai, keeping him [them?] happy, while allowing Soai to whistle for his money.
Diem has good reason currently not wish provide Soai with funds inasmuch as he suspects, with good reason we believe, that Soai will probably use funds deriving from government in his current [Page 80] activities against government, probably including passing on sum of money to Ba Cut who is on verge of open warfare with National Army.
We are not very resourceful at this moment in thinking up where Diem can dig up 5 million piastres, half of which he needs by weekend February 12 and remainder by weekend February 19. We have assured Diem that US Government does not normally do business this fashion. His reply is that this is not normal situation.
We will discuss this problem with Ambassador Collins on his return.2
- Source: Department of State, Central Files, 751G.00/2–855. Secret. Repeated for information to Paris.↩
- See Document 41.↩