15. Telegram From the Central Intelligence Agency to the Department of State1

1705Z. Following is a report from the CAS Station Chief in Saigon;

1.
General Khiem called me late on 16 March, told me he and General Khanh met with Phoumi Nosovan in Dalat on Saturday 14 March and came to agreement in principle on three major matters:
A.
GVN, using marked or unmarked aircraft, can bomb and strafe VC installations at Tchepone, Muong Nong, Muong Phine, Saravane, and in the Boulovens area generally. Khiem seemed eager to take this on right away because “we can catch the Soviet Chinese aircraft that are now there”.
B.
In the eastern portions of Laos south of Tchepone to the Cambodian border, ARVN may conduct military operations up to and including regimental size in areas mutually agreed as being principally under VC or Communist control.
C.
General Vang Pao, now in Xieng Khouang, will provide and safeguard, in the area bordering NVN due east of Xieng Khouang, a base of operations for GVN commando or special forces units to raid across the line into the NVN salient containing Route 7.
2.
Khiem also said that Khanh would pick an Ambassador to Vientiane by the end of this week, but that one has not yet been chosen. Would let me know as soon as one picked. He further said that if action described para one C came to pass, would want liaison with US in Vientiane. Also said that at same time as new Ambassador went to Vientiane, GVN would establish five-man military liaison team with Laotian forces at Savannakhet.
3.
Related all of above to Amb Lodge who expressed his warm approval of GVN proposals given above. He asked that substance this conversation, plus his agreement, be passed to State Dept. General Khiem emphasized that all agreements were in principle, and that, while some planning was being done, they would not implement any of the agreements described in para one without American agreement and support. This cable therefore becomes their means of seeking official U.S. govt reaction and response. Await your comment.
4.
Had suggested to Amb Lodge that substance this conversation be transmitted as regular Embassy telegram, but he prefers that it be reported as it is.
  1. Source: Department of State, Central Files, POL 27 VIET S. Secret. This telegram was a relay of CAS Saigon 5161, sent to the Department of State Exclusive for Sullivan and Stoneman, to the White House Exclusive for Forrestal, to OSD Exclusive for McNaughton, to JCS Exclusive for Anthis, and to ISA Exclusive for Blouin. Repeated to Vientiane and Honolulu.