37. Memorandum From Michael V. Forrestal of the National Security Council Staff to the President’s Special Assistant for National Security Affairs (Bundy)1

South Vietnam

General Khanh has discussed with Lodge the composition of his Government (Saigon’s 1510).2 It looks pretty good. General Minh as Chief of State will be a big help both in South Vietnam and internationally. As the cable points out, it will leave General Khanh somewhat more free to attend to the substantive problems of winning the war.

The Vice Prime Minister in charge of Pacification, Mr. Hoan is a Dai Viet leader. Carl and I met him here once in Washington, and we were not particularly impressed. I gather he will be in charge of the civilian side of the struggle. He has, however, I believe, a fairly large Nationalist following.

Other hopeful signs are Oanh (Carl’s friend) as Minister of Finance, Mau (Diem’s old Foreign Minister) back in the same job,3 and National Defense under Khiem. The Government as a whole seems to include almost every geographic and non-Communist political faction. I am asking State and the Agency to do a more thorough evaluation.

[Here follows a summary of developments in Laos.]

On top of this,4 we have intelligence strongly suggesting that a high level meeting between the North Vietnamese and the Chinese is taking place in a town called Mengtzu near the North Vietnamese border. There has also been a significant movement of Chinese interceptor and bomber aircraft into this area.

[Page 65]

These indications plus the situation in South Vietnam suggest to me that any organizational changes that we make here in Washington should occur quickly, so that we have a strong team to deal with the trouble which I sense will be developing in the months of March and April.

Mike
  1. Source: Johnson Library, National Security File, Vietnam Country File, Vol. III, Memos and Misc. Top Secret.
  2. Dated February 7. (Department of State, Central Files, POL 15 VIET S) The White House copy is published in Declassified Documents, 1975, 215C. Lodge had an earlier discussion with Khanh on February 5 during which he expressed concern for Khanh’s safety and asked what precautions Khanh was taking against possible coupe. Khanh dismissed the threat, and assured Lodge that he planned to move quickly and vigorously in prosecuting the war. (Telegram 1493 from Saigon, February 5; Department of State, Central Files, POL 23 VIET S. The White House copy of telegram 1493 is published in Declassified Documents, 1975, 215A.)
  3. Tran Ngoc Oanh was Minister of Public Works and Vu Van Mau did not have a Cabinet post in the Diem government.
  4. Reference is to the worsening situation in Laos and the possibility of a Pathet Lao military offensive.