Foreign Relations of the United States, 1958–1960, Vietnam, Volume I

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

Saigon, February 25, 1958—8 p.m.

1756. Chau² called on me and Barrows separately last evening to tell us in confidence he has resigned. He had told the president orally that afternoon of his desire to resign after the president had told him he planned to name Lam Le Trinh, Chau’s assistant, to be Minister of Interior. Chau stated he had been urging president to name separate Minister for Interior because holding two jobs was becoming increasingly difficult. Chau then told president this gave him opportunity to say he had decided to resign as Secretary General to Presidency as well. The president promised to consider question.

Chau stated that he wished to tell us why he resigned before we heard any of the usual Saigon rumors. In substance his reasons were the following:

1. Personal. (To Barrows he specifically said he meant by this his divorce problem and the new anti-divorce law pressed by Madame Nhu.³)

2. He then discussed at some length his belief that the president by his arbitrary ways is losing his appeal to the people for whom he does little. Chau agreed if it were not for American aid SVN would already be Communist; that although American aid was needed to maintain strong armed forces in past three years he thought president was placing too much reliance upon spending large amounts money on military, civil guard and self-defense corps. He stated he had tried to induce president to allocate more money to economic build-up so as raise productivity and standard of living. People now suspectible to Communist blandishments since they have little concrete evidence of what Government has done for them. Chau had tried to induce president to funnel current revenue surplus through provincial and village budget system to (a) reduce taxes and (b) use money through this channel to create desired public works in local areas which would show people directly government had their interests at heart. He had tried to induce president to permit provincial and local governments to work up own budgets to be voted upon by local people who would thus have say in own affairs and start rudiments of democracy. The president however desired to control everything centrally, is too arbitrary and counts on police and military to control the people. In Chau’s opinion if government did more for people dissident elements would be greatly reduced and Communist threat diminished. Chau added he had tried to induce president to be more tolerant of our aid procedures since it is essential to life to [of] country that aid continue in order build toward economic independence.

Comment: Chau in speaking to us was very calm and apparently relieved he had taken decision. Despite his misgiving he expressed loyalty to president. When asked what he planned to do he stated uncertain, did not expect practice law, would prefer to go abroad to US or Germany, study matters of interest to him, particularly in economic field.

Few weeks ago Chau had talked to Barrows about possibility resigning giving reasons along above lines. British Ambassador reports Nguyen Huu Hanh, Director General National Bank, in frank conversation short time ago was most pointed in his criticisms of Diem and stated categorically “Diem must go” in order to save the country. Hanh added he seriously thinking resigning and accepting US banking offer. According Hanh Vice President Tho in general agrees with his evaluation Diem. Reports from other sources claim Dung is thinking of resigning.

While seems to be no question several high officials not too satisfied developments, we have discounted these reports as merely symptomatic individual frustrations which they probably still are. However, fact Chau has resigned opens slight possibility others may follow but unquestionably one of principal motives Chau’s resignation his personal situation.

Durbrow

1. Source: Department of State, Central, 751G.13/2–2558. Secret; Limit Distribution. Sent also to Phnom Penh and Vientiane.
2. Nguyen Huu Chau.
3. Chau was the husband of Madame Nhu’s sister. He sought a divorce in the Vietnamese courts, but his sister-in-law delayed the case until passage of her family bill prohibiting divorces. See Robert Scigliano, South Vietnam, Nation Under Stress (Boston: Houghton Mifflin, 1963), p. 61.