Office of the Historian

94. Telegram From the Secretary of State to the Embassy in France1

Washington, April 3, 1955—11:05 p.m.

3507. In conversation late Sunday afternoon with French Ambassador regarding Ely proposal2 on Vietnam problem, Secretary made following points:

1.
This is very complicated situation and difficult know exactly what to do. However, we doubt calling Vietnamese together in Paris is good solution.
2.
Binh Xuyen challenge to Diem strikes at fundamental issue authority any government in Vietnam. Arbitration by patron this gangster outfit would not be conducive acceptable solution.
3.
Binh Xuyen should be treated differently from other two groups for it is not a religious organization with some popular support. Other two can be negotiated with over period of time on reasonable basis as they may have some surviving political future.
4.
French Government should allow Diem to reestablish his authority and should not restrict his means do this. Difference in United States and French policies is that we believe he should be allowed to do this whereas French are afraid this might lead to wide conflict. If they assure Diem moral and logistic support, challenge from Binh Xuyen might evaporate or be contained.
5.
If this should work out, Diem’s impaired authority would be somewhat improved. We would be prepared exert pressure on him strengthen his administration to bring in elements he cannot govern without. But we do not see we have to go to Paris for this, since we both can exert, with our respective resources, more influence in Saigon, once central authority established.
6.
We would be surprised if Diem would accept bid to go to Paris and have Bao Dai arbitrate between him and sect leaders, particularly Binh Xuyen. If his authority is successfully challenged, and he is immobilized, then no government will be able operate in Vietnam and whole structure may collapse. United States aid of some $300 to 400 million is involved in this matter. We do not anticipate any results of Paris meeting with Bao Dai that would justify continuing such large-scale expenditures.

Propaganda effects would also be bad in Asia for Diem to be summoned to Paris by Bao Dai for conclave with gangster rebels and sect leaders defying him.

Dulles
  1. Source: Department of State, Central Files, 751G.00/4–355. Secret; Priority. Drafted by Young and signed by Dulles. Sent also priority to Saigon and London.↩
  2. See Document 92.↩