426. Telegram From the Embassy in Laos to the Department of State1
1390. With emerging prospect RLG may have seek some means solving PL problem other than by series accommodations initiated by Souvanna last summer, US should be in position offer some constructive ideas. We will be credited with lion’s share responsibility if negotiations break down and will have to shift from predominantly negative to positive role if our influence to be maintained. There is already indication Lao may turn to us soon for such ideas. For instance, I am to see Nhouy Abhay tomorrow and I hear he wants discuss courses action Laos might now follow domestically and internationally. Also, in light indications Phoui has now come out in clear cut opposition both to coalition and Chinese aid, it may be timely fr me seek opening for general talk with Souvanna. Belief at moment [Page 899] other Lao leaders prefer keep him in office to bear brunt of search for better solution rather than face government crisis because failure his policy. This not usual parliamentary reward for failure but Laos is sui generis.
Implications possible entry into new period here affect all agencies but especially USOM and its relationship to import controls. In this sector, we have been under extremely heavy fire and our relations with Leuam have deteriorated in part because of issue I made over violation licensing procedures last fall when we temporarily cut off funds for ANL. De Paul2 and I hope come up with major proposal this front next few days.
It obvious that emphasis on internal security programs which we foreshadowed last August should be intensified. This means support for civic action, other related programs, cooperating role of ANL and various security activities. …
General subject being explored … Preliminary ideas for application by Embassy follow in Embtel 1391.3 Should stress this message not to be construed as indicating coalition defeated; it does mean however prospects are now such we must be ready for that eventuality.