Foreign Relations of the United States, 1955–1957, Vietnam, Volume I

396. Telegram From the Ambassador in Vietnam (Durbrow) to the Department of State¹

Saigon, August 30, 1957—10 a.m.

444. Herter–Richards visit.² The following highlights Diem, Herter–Richards conversation 28th (Diem went over almost identical ground with me 26th which have not previously reported):

1. Roads.

Diem went into considerable detail on his currently most preoccupying question—the need for adequate but expanded and not too expensive road network in high plateau with appropriate connections to coast of central Vietnam. Using specially prepared multi-colored map showing (a) population concentration along coast and in delta, (b) mountain areas, (c) high plateau area and (d) Mekong valley, he developed his strategy of filling high plateau with trusted energetic people from central Vietnam and demobilized troops who could develop agricultural economy of plateau and form “human wall” buffer to Communist infiltration from west. While he expressed appreciation excellent work being done by American contractors their roads too expensive and too elaborate for urgently needed larger network of less expensive but good roads in high plateau area to assist new settlers have access to rest of country and help movement of production. It imperative have such network soonest and therefore roads that could stand up for only five years without too much maintenance would meet immediate imperative needs. Once good foundations made roads could be improved later. He did not emphasize road to Laos, which referred to only in connection general need for roads. In conversation 26th he made special plea for assistance build Ban Methuot–Kontum road as key road in area but this need not be to high standards planned for Bien Hoa or Ban Methuot–Ninh Hoa roads by American contractors.

2. Reasons urgency road network.

a. Viet Minh propaganda coupled with Indian ICC urging for unification of country by “free elections” placing Diem in embarrassing position because cannot agree open up communications with north or permit free travel between zones until settlers in plateau area are thriving and contented in their new environment.

b. If he should permit free travel now, Viet Minh would send “200,000 agents disguised as refugees” who would nip in bud his plan to flesh out economic base of country by filling plateau void.

c. Would be disastrous to have free elections now since are 14 million in north against 12 million in south and with Viet Minh police state methods south would be outvoted.

d. He has to take immediate advantage of drive being shown since independence by energetic people from Central Vietnam who are pioneering plateau by effective methods to sustain this drive by improving their lot primarily through adequate and extensive road system. People in south less energetic and live in isolated groups which encourages banditry and Viet Minh infiltration. This could happen in plateau area unless vacant land occupied by contented people. Diem made it clear he convinced regime would fall in next few years unless this accomplished. In his estimation he has maximum of three years to attain fundamental contentment plateau area which would give him solid enough base to make further progress later without fear of Viet Minh action or elections. This did not mean Diem giving up separate five year development plan.

e. Growing contentment in SVN next few years (contrasted to Viet Minh need keep people suppressed by expensive armed forces supported by heavy taxation) will eventually force Viet Minh to demobilize large number of troops and liberalize regime which would then permit people in north bring about unification with south. Diem feels same forces working in that direction in Communist China which cannot forever afford maintain large expensive army to suppress masses and will also have to liberalize.

3. Situation in Thailand.

In conversations 26th and 28th Diem claimed his increased preoccupation fill plateau void was emphatically strengthened by situation he learned about in northeast Thailand during Bangkok visit.³ Phibun’s Government facing two serious problems: Discontentment northeast Thailand and desire Moslem–Thailand provinces on Malayan border to join Federation. Diem claims since Thai Government has not paid attention to or fulfilled promises aid to northeast Thailand people that area becoming restive and thinking in terms of autonomy; many of leftist parliamentarians elected last winter are from northeast. Sarit who comes from that area has done nothing to relieve situation and Phibun promises for partial aid now not sufficient. Diem fears if he does not flesh out plateau same type situation will develop there. He added situation in Thailand very unhealthy with army and police each having approximately same strength under separate strong ministers which makes situation government very unstable. He asserted he would never permit two of his ministers to have such equal power and it essential in his opinion that government be backed by army alone under head of government. In general he then went over same ground re Bangkok visit reported Embtel 393.

4. General impression.

Throughout conversation Diem made it clear essential everything including roads must be done in a hurry to make up for time lost in past. He stated emphatically next three years will be those of decision and if many of essential things are not accomplished, even on semi-temporary basis, South Vietnam cannot survive. He apparently seriously worried his plan for resettlement plateau area may backfire badly and cause downfall of regime unless he takes immediate steps to bring more contentment to pioneers. This essential also because plans next year to settle large numbers demobilized troops plateau area. This being done for security, pol[itical] and economic reasons, with security paramount.

5. Uniform piastre exchange rate.

Under Secretary at our request brought up advantages which would accrue GVN if it establishes uniform exchange rate in line with IMF suggestion. Diem reacted firmly stating most difficult set uniform rate because lack adequate production Vietnam and cited continued inflation Korea after rate change. After Under Secretary had reiterated advantages uniform rate Diem replied US-Vietnamese group is studying matter and will continue its efforts.

6. Visit to Korea.⁴

Diem mentioned in passing that on Rhee’s urging he visiting Korea about September 20 instead November. Rhee most anxious he visit anti-Communist Korea before neutralist India.

Durbrow

1. Source: Department of State, Central Files, 110.2–HE/8-3057. Secret. Repeated for information to New Delhi, Phnom Penh, Vientiane, and Bangkok and to Kuala Lumpur for Herter and Richards.
2. From August 23 to September 22, Under Secretary of State Christian A. Herter and special Ambassador James P. Richards, former Chairman of the House Foreign Affairs Committee, traveled to East Asia with the primary purpose of attending the independence celebrations of the Federation of Malaya, August 29–31. Before arriving in Kuala Lumpur, Herter, Richards, and their party visited Manila and Saigon (August 28–29). After the independence celebrations, they traveled to Rangoon, Bangkok, Saigon (September 8–10), Hong Kong, Taipei, Okinawa, Seoul, and Tokyo. Extensive documentation on this trip is ibid., Conference Files: Lot 62 D 181, CF 899 to 905A.
3. August 15–19; a report on the highlights of Diem’s Thailand visit, as recounted to Durbrow by Diem on August 20, is in telegram 393 from Saigon, August 21. (Ibid., Central Files, 751G.11/8–2157)
4. Reports of Diem’s visit to Korea, September 18–22, are in telegram 263 from Seoul, September 19, and despatch 332 from Seoul, November 19. (Ibid., 751G.11/9–1957 and Saigon Embassy Files: Lot 62 F 52, 361.1–Chief Executive, 1956–1958, Ngo Dinh Diem Visits, respectively)