851G.00–TA/2–851: Telegram

The Chargé at Saigon (Gullion) to the Secretary of State 1

confidential

1389. ReLegdes 467, January 25. Dugardier HICOM diplomatic counselor asked Legation representatives brief him on Point IV program prior his leaving for Hanoi where he will see De Lattre. He felt latter would ask Dugardier explain program.

At meeting February 7, Dugardier said he has been worried by phrasing of Legation note which could be taken indicate that USIS, STEM and Legation under new program might be supporting each other in way which could lead to criticism, particularly by circles in HICOM sometimes suspicious of US intentions such as planning and economic counselors and by certain circles in France. These circles might claim that Viet Minh were right after all, that US attempting through Point IV use its power penetrate Indochina economically and culturally. The implication was that by associating STEM, USIS and Legation in organizing program US could appear be consolidating its forces in order exert greater pressure on association and HICOM. He himself understood this not case, but reluctant discuss program with De Lattre and economic chiefs before he had had fuller explanation. Legation representatives explained: (1) US Government desire initiate program rapidly as possible for propaganda and morale building purposes; (2) it had been enthusiastically welcomed by other SEA countries, so that it might be awkward if Associated States could not participate; (3) it was somewhat similar [Page 379] to Commonwealth technical assistance program2 with which Associated States already were associated; (4) it was modest in scope and could be started on trial basis; (5) Legation note re program had been made as simple as possible avoid rigidity in considering approach; (6) US Government fully realized France and Associated States’ position on priority to be given to former’s experts; (7) not necessary US technicians under Point IV be assigned to Associated States themselves—they could be attached to Legation or other US agencies in Saigon as most appropriate and as now done under STEM, and (8) reason for including USIS and STEM interests in Legation note was that Point IV projects might be similar in certain respects to work already accepted as responsibility these operating agencies and Legation anxious assure that program adequately coordinated—procedure suggested was only an administrative device.

Dugardier explained he understood US position and intentions, but had been afraid others in HICOM might be unduly worried. He himself thought program could be carried out by assignment US technicians to US agencies and by making it clear they were only assisting on purely temporary basis. Perhaps best approach would be to give impression US assistance part of a broader plan to study conditions, and upon request, make recommendations for SEA countries as whole. He felt any personnel assigned should be ones who could handle delicate situation with understanding of French peculiar position vis-à-vis Associated States. Dugardier throughout interview emphasized French cultural interests. He felt US lecturers might visit Indochinese institutions for series of lectures, certainly not as part of staff. Assignment fiscal technicians to US agencies for both study of Associated States problems and advice thereon might be less difficult.

Legation representative saw Tran Van Tuyen, Secretary State Foreign Affairs, February 8. Tuyen repeated Huu’s approval of program (see Legtel 1321, January 27),3 stated it had been discussed with Bao Dai, and that government would “soon” be submitting request for fiscal and economic experts. These could be attached to Legation and should be considered as “officer”—one who wishes render service—rather than “official”—one who belongs to the administration. Indeed government hopes eventually even French experts will fall within first categorization. Under present peculiarly delicate circumstances, in any event, Tuyen explained it would be necessary proceed carefully.

Comment: Legation feels De Lattre’s interest in program evidenced by briefing Dugardier wished to have before seeing former supports (on assumption Department does not wish face review basic [Page 380] tenet of French priorities in technical assistance) desirability: (a) of proceeding cautiously with inauguration Point IV in Indochina, and (b) of approaching it on specific project by project basis. Sent Department 1389; repeated info Paris 607.

Gullion
  1. This telegram was transmitted in two parts.
  2. For information on the Colombo Plan, see footnote 3, p. 281.
  3. Not printed.