751G.00/11–2150: Telegram

The Ambassador in France (Bruce) to the Secretary of State

top secret

2873. I saw Letourneau this morning about Indochinese affairs. I told him of my conversations with Malcolm McDonald and he said he was pleased with latters visit to Paris and with his sympathetic and constructive attitude. I inquired about rumor that French might be contemplating appointment of general to assume supreme control of both military and political affairs there. He assured me that he had no present intention of replacing Pignon with whom he was fully satisfied, nor was such replacement even eventually subject under consideration. It was quite evident that his own predilection was for civil chief rather than military one. He stated that some of his colleagues had suggested that perhaps he himself should go there and assume supervision, but he was against this idea since he conceived that problems presented were largely political and final decisions re them must be taken in Paris.

He had not yet heard from FonOff about our conversations yesterday re closer liaison between US and French representatives in IC but said he would like closest possible liaison to be established and if there were anything lacking in present arrangement it should be remedied. He expressed high opinion of personalities of Messrs. Heath, Gullion, Blum and General Brink.

He said that he expected Pau conference to terminate this week. Difficulties which had arisen there were not caused in any respect by French, but by antagonism of Laotians and Cambodians toward Vietnamese. These two first states consider Vietnam colonial and imperialistic in its designs and have little confidence in future Vietnam intentions in regard to them and he said he intended advise Bao Dai that as of January 1 all French civil functionaries in IC would be withdrawn from their occupations and that Bao Dai was welcome to make selection of any if he wanted any to remain.1 In addition, as result of Pau conference French will cease to derive any revenue whatsoever from IC which will result in additional annual cost to French budget of about 15 billion francs. French budget for IC has already assumed [Page 931] alarming proportions and amount required for calendar 1951 may rise as high as 300 billion francs. Where money would come from he did not know. He had spent most of yesterday talking to members of Cabinet and particularly to Petsche on this subject. He says that Petsche has general budgetary problem which appears insoluble.

French are sending some reinforcements to IC. They have made good losses suffered during evacuation of frontier posts and are adding substantial numbers of specialists. Military men would like another two divisions there but he says it appears impossible to withdraw them from Germany and elsewhere to comply with this wish.

He anticipates that Hanoi and Haiphong can be held and says that he intends that Hanoi especially will be kept out of Viet Minh possession even if it entails fighting street by street to hold it.

He believes that concentration of authority in his office will be helpful in dealing more expeditiously with IC affairs.

When I emphasized our interest in early creation national armies Associated States, Letourneau said he strongly favors building up of national army in IC but says that Bao Dai will have to take more vigorous part in it if it is to succeed. For example, French have called up all their reservists in IC but Vietnamese have done nothing about conscription. Bao Dai asked him for French medical men to staff sanitary services of new army. When Letourneau told him that all those available were fully occupied in caring for French Union troops and suggested that Bao Dai recruit or conscript native physicians and surgeons of whom there are large number, Bao Dai answered that native doctors did not wish to serve with army as they found much more gainful employment in Saigon and other large cities.

He told Bao Dai that French would like hand over to him Palace in Saigon as soon as they found suitable accommodations for their High Commissioner. Bao Dai displayed no interest in this but laughingly said he would prefer modern villa. Palace at Hanoi which was turned over to Bao Dai sometime ago has never been occupied by him, nor are apartment buildings, which are empty, being used by Vietnamese services. Letourneau thinks that Bao Dai should make his headquarters at Hanoi, which is real administrative capital.

He was not over-critical of Bao Dai, for he believes him to be only possible native leader of anti-Communist forces in IC. He also thinks him highly intelligent man but somewhat torpid and devious. Financing of native army is most difficult problem connected with it, and in this Vietnam Government, with its new revenues, must take some responsibility although larger part will have to be borne by French.

Letourneau expressed his gratitude for comprehension shown by Pentagon of necessity for accelerating shipment of military material [Page 932] to IC and hopes that program of shipments can be constantly accelerated.

When I referred to our oft-expressed interest in public statement by French Government re evolutionary nature its policy IC Letourneau said he would open debate in Parliament tomorrow oh government’s policy in IC. He would state that March 8 accords are to be interpreted in most liberal manner and implemented in spirit which will assure Vietnamese that French desire them to acquire full independence as quickly as they can undertake to manage responsibilities which are being turned over to them. He says that government would wish nothing better than to have Associated States gain position of independence and stability so that French could evacuate their troops, but that under present circumstances French Union forces are only barrier which prevents Communists from taking immediate possession of whole country.2

Department pass Saigon; sent Department 2873, repeated information Saigon 203.

Bruce
  1. The interstate conference at Pau, France, ended its work on November 27 After almost 5 months of deliberations. For texts of 10 quadripartite agreements concluded at the conference and signed on December 16, see France, Direction de la Documentation, Notes et Etudes Documentaires, No. 1425 (January 24, 1951), pp. 1–38.
  2. The French National Assembly discussed the question of Indochina on November 22 and 23; for the record of these proceedings, including statements by Letourneau and Premier Pleven and the text of the resolution supporting government policy adapted by the Assembly on November 23, see France, Journal Officiel, Assemblée Nationale, 1950, Débats, pp. 7998–8058.