384. Telegram From the Secretary of State to the Embassy in Vietnam1
2943. Re Piaster rate. Department held two satisfactory sessions with Chau, Diem2 and Thai3 Wednesday and Thursday.4 ICA Treasury representatives present. After exposition of Vietnamese and U.S. viewpoints Chau proposed, subject to President Ngo Dinh Diem’s approval, and we concurred the following steps:
- 1.
- Vietnamese and American officials will study in Saigon technical details and concrete problems regarding devaluation. These talks will begin as soon as possible under general leadership Durbrow and Chau.
- 2.
- Vietnamese and American officials in Saigon will study report of International Monetary Fund when available which is now anticipated within month or so.
- 3.
- Following these two steps Vietnamese Government will send team to Washington. (In addition it might be advisable induce Vietnamese send qualified expert attend IMF discussion Viet-Nam report which will probably take place in June.)
- 4.
- Apart from possible Vietnamese expert at IMF discussions above team will examine economic, financial, political and social aspects [Page 820] of devaluation problem together with U.S. officials. Team will also discuss overall economic and financial problems with IMF people.
- 5.
- Vietnamese Government will then decide whether devaluation advisable in light all factors.
During entire discussion impressed Vietnamese urgency this matter.
Memoranda being pouched. Ambassador present for all discussions. He and Young rejoining President Ngo Dinh Diem’s party in Knoxville and will convey to him results these meetings.
- Source: Department of State, Central Files, 751G.11/5–1657. Secret. Drafted and approved for transmission by Young.↩
- Huynh Van Diem, Director General of Planning.↩
- Vu Van Thai, Administrator General of Foreign Aid.↩
- The combined memorandum of conversation covering these two meetings, May 15–16, is in Department of State, FE Files: Lot 49 D 19, M–C Vietnamese 1957.↩