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

86. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Parsons) to the Secretary of State¹

Washington, August 6, 1959.

SUBJECT

• Congressional Hearings on Aid Program in Viet-Nam

A six-part series of articles by a reporter named Albert M. Colegrove, which ran in the Scripps-Howard newspapers from July 20–25, assailed the United States aid program in Viet-Nam and criticized various other U.S. activities there. On July 20 Senator Fulbright wrote to Mr. Riddleberger requesting the latter’s comments on these articles and his opinion as to the advisability of “scheduling a public hearing.” Senator Mansfield wrote to Acting Secretary Dillon on the same day and suggested that we “make necessary preparations for a full airing of this entire situation.”² In view of the importance of these letters calling our attention to articles labeling one of the best United States aid programs a “fiasco” and “hidden scandal” at a time when Congress is considering mutual security appropriations legislation, it was decided to recall Ambassador Durbrow and USOM Director Arthur Z. Gardiner from Viet-Nam to appear at hearings to be conducted by the Mansfield Subcommittee on State Department Organization and Public Affairs of the Senate Foreign Relations Committee. Defense also recalled Lieutenant General Samuel T. Williams, Chief of MAAG Viet-Nam, and all three appeared at well-attended Senate hearings on July 30 and 31.³ The Saigon Country Team performed creditably in discrediting many of Colegrove’s specific allegations of waste and malfeasance, but several Senators, including Mansfield, Morse and Lausche, appeared inclined to expand the scope of the hearings to include all United States operations in Viet-Nam and possibly certain aspects of United States aid programs globally.

Colegrove testified alone on July 30 and briefly on July 31 and added several minor points he had not covered in his articles. It is noteworthy that, despite Colegrove’s heavy criticism, he conceded in his articles that South Viet-Nam had, in fact, been rescued from Communism and our economic aid program had been generally successful. He indicated that his principal concerns are the mismanagement of funds and the “lush living” of Americans in Viet-Nam.

The Zablocki Subcommittee on Far East and Pacific of the House Foreign Affairs Committee heard testimony from Assistant Secretary Parsons and Dr. Raymond Moyer, Director of ICA Far Eastern Affairs, on the Viet-Nam program on July 27. On August 3 the Saigon Country Team also testified in an executive session in the morning, an open hearing in the afternoon, and a brief “off-the-record” meeting later in the day. Representative Zablocki’s Committee has been markedly friendly throughout this exercise (Zablocki, in fact, had labelled the articles “irresponsible journalism” in a speech on the House floor on July 29) and seemed quite satisfied with the Country Team’s replies to detailed questions on most of the irregularities alleged by Colegrove.

The Mansfield Subcommittee decided on August 4 to hold an executive session on August 7⁴ at which Colegrove and other witnesses, but not the Country Team, will testify. We have no firm indications as to the circumstances and timing of future hearings. General Williams Will not be asked to testify further. Representative Zablocki would also like to continue hearings, although he has given no indication as to when a decision will be made as to dates and subjects to be covered.

Although on-the-spot investigations have been mentioned by the Senate, it is not known whether the Mansfield Subcommittee has decided to pursue them.

1. Source: Department of State, FE Files: Lot 61 D 6, Colegrove Articles. Confidential.

2. Neither letter has been found. According to notes of a telephone conversation between Dillon and Riddleberger, 4:45. p.m., July 21, the two men discussed the Mansfield letter to Riddleberger as follows

   “Mr. R. said they had a letter from Fulbright with which he sent the text of five articles on Vietnam. Fulbright wants an answer this afternoon on our reactions. Mr. R. said he had prepared a reply, which presents a more balanced picture. Mr. D. said he thought Fulbright was trying to be helpful. Mr. R. said in addition they prepared something for the White House, which is a planted question whereby the President will try to put some balance back into this. Mr. Dillon said he ought to get some facts and figures together quickly before he goes up on people being paid too much. Mr. R. said he talked to L. Henderson the other day about it.” (Ibid., Secretary’s Memoranda of Conversation: Lot 64 D 199) Loy Henderson was Deputy Under Secretary of State for Administration.

3. See “Situation in Vietnam,” Hearings Before, the Subcommittee on State Departmental Operations Public Affairs of the Committee on Foreign Relations; U.S. Senate (86th Cong., 1st sess.), July 30 and 31, 1959 (Washington: Government Printing Office, 1959).
4. See Minutes, August 7, 1959, Executive Sessions of the Senate Foreign Relations Committee (Historical Series), vol. XI, 86th Cong. 1st sess., 1959,(Washington: Government Printing Office, March 1982), p. 803.