Foreign Relations of the United States, 1955–1957, East Asian Security; Cambodia; Laos, Volume XXI

490. Telegram From the Embassy in Laos to the Department of State¹

Vientiane, October 29, 1957—5 p.m.

679. Department pass information CINCPAC for POLAD. Reference Embtel 663 and Deptel 440.² I called on Foreign Minister before cabinet meeting morning 29th propose commencement negotiations on monetary reform October 30 and ascertain status PL negotiations, which currently as follows:

(1) Joint communiqué. At Council of Ministers meeting 26 Crown Prince opened session by stating that he assumed all were in agreement with revised text and language now frozen (so that Souphannavong could not make counterproposal). Ministers all agreed and Souvanna thereupon authorized transmit revised text to his brother (text may be reconstructed from reference telegram³). While two brothers were together over weekend, so far as Phoui knows Souphannavong has not yet given his reply. He says latter undoubtedly awaiting instructions and remarked parenthetically that Souphannavong is really fifth wheel on PL chariot and shows increasing signs of wanting genuinely to rejoin national community.

(2) Political agreement. At meeting 26 ministers again joked about US being better informed than they were on political agreement. Souvanna, as he afterwards admitted to Phoui, did not have courage to admit before Crown Prince and others that US information was correct. Nor did he reveal that he had instructed Tane (who signed political agreement October 22) to distribute copies to various people. One recipient was Bong who mimeographed and distributed it to Assembly members with comment that this was signed October 22 and was a final agreement. At Assembly session 28 Bong proposed motion that now that political agreement had been signed Assembly called upon RL to enlarge cabinet not only with former Ministers but also PL representatives before That Luang festival. Motion signed by 20 deputies passed unanimously. Understand from Pheng Phongsavan that Katay representing government, replied that technical agreements not far enough advanced to accede to deputies wish and that hence impossible included PL in enlarged cabinet prior to That Luang ceremonies. Now belatedly also Souvanna has reversed himself and with rest of cabinet takes position political agreement assigned by Tane was not final.

(3) Present situation. Cabinet meeting this morning to deal with foregoing, which Phoui described as “regrettable incident” at Assembly. He and Crown Prince regard political agreement as completely inacceptable. I told him Washington references to it were even stronger. I also said that serious consideration any such agreement would cause value of kip to plummet and cited sharp break in value last year following Souvanna’s excessive concessions to PL. Phoui did not indicate how it was proposed deal with situation, but he assured me government did not and could not consider political agreement as having been accepted. He promised let Embassy know outcome of meeting late this afternoon.

Communiqué issued by Prime Minister’s office and published in Lao Presse evening October 28 indicates RLG does not consider political agreement assigned by Tane final text. Following is translation communiqué:

“The project for a political agreement with PL which has been distributed only constitutes for time being a working paper which could not in its present form be considered to reflect the definitive position of RLG.

This document can only be put in force when it will have received prior approval of qualified authorities, notably in first place by council of cabinet”.

(4) Comment: Motion in Assembly does not constitute formal approval of legislative branch of agreements signed with PL. It is merely expression of pious wish which RLG should take into consideration but has no binding force. Bong can be credited with fast footwork in Assembly, making the most of October 22 political agreement and taking advantage of absence numerous nationalist and independent deputies. We should have fuller reading after Embassy Officer’s meeting with Phoui tonight.

Parsons

1. Source: Department of State, Central Files, 751J.00/10–2957. Secret; Priority. Repeated to Paris, London, Saigon, Bangkok, and Phnom Penh.
2. Telegram 440 is Supra; regarding telegram 663, see footnote 3, Document 488.
3. The text was transmitted in Document 496.