751G.13/11–251: Telegram
The Minister at Saigon (Heath) to the Secretary of State
958. I saw de Lattre at his request in Saigon fol our return from De Raymond funeral in Phnom Penh.1
1. During better part hour De Lattre attacked deficiencies and alleged “dangers” of the Huu regime. De Lattre said Pignon had warned him that Huu was one of worst “canaille” in IC. De Lattre stated he had info, which he indicated came from Bao Dai, that Huu had deposits in IC banks totaling 39 million piasters (nearly two million dollars US at official rate exchange) and probably equal amts in Fr which he had remitted through Chi “black market” channels. Main course Huu’s IC deposits were, De Lattre charged, illegal purloining of “secret funds” of FonAffs, Def, interior and Info Ministries which Huu retained in his own hands plus the secret funds he disposed of as Pres of the Council. He asserted Huu also had spent large sums in Fr to obtain support of publications such as Climats and of certain unnamed polit figures. Huu had actively and subtly campaigned against De Lattre in Fr. He had to date refused produce budget because details his personal mismanagement and misappropriation of public funds might thereby come to light. De Lattre had finally insisted, however, that delays must end and the budget must be produced by Dec 1. Huu was keeping his FinMin in Paris to lobby for a change in Pan accords to abolish quadripartite bank of issue now being formed and allow Vietnam have its own central bank. This change must not be permitted at present time, De Lattre argued. A quadripartite bank of issue wld allow Fr necessary measure control over Viets spending, legitimate in view tremendous fin sacrifice, Fr was making for Viets independence. In Huu’s hands an uncontrolled central bank wld be instrument of graft, personal enrichment and currency speculation. Huu was dangerous not only because of money he controlled but because he was unscrupulous. It wld not be beyond Huu, De Lattre asserted, to hire assassins if De Lattre threatened fulfillment of Huu’s inordinate and personal ambitions.
And yet, De Lattre insisted, Huu had to be maintained in office for few months because, for the moment, there was no one capable replacing him and because there must be no “open row” before or during first mtg council of the Fr Union scheduled be held in Nov in Paris. Huu, with all his money, cld cause too much trouble both in Fr and IC if Bao Dai suddenly dismissed him. Only thing to do at present was keep up steady if discreet pressure, and he bespoke aid of Amer [Page 540] Leg, to persuade Huu divest himself of the portfolios of Def, Interior and Info and satisfy himself with presidency of council and FonAffs.
By next Feb situation might develop to point where Bao Dai cld get rid Huu (probably to Emb abroad) and form new govt. Perhaps among Viets Catholics new chief of govt might be found. Catholic governor of Central Vietnam was showing himself to be honest administrator if somewhat narrow. Almost anyone, De Lattre asserted, wld be better chief of govt than Huu.
De Lattre for first time seemed somewhat tired and depressed and said he was sacrificing his health in staying in IC. He stated that if he had any real difficulties with Huu he wld offer his resignation and publicly explain the reason, i.e. the intolerable inefficiency and corruption of the Huu Govt.
Comment: This is first time De Lattre even admitted to me, or to anyone else as far as I am aware, that there was any personality in Vietnam with whom he cld not cope immed or any grave polit problem in which he must temporize. I am not yet certain that his difference with Huu may not be resolved nor am I certain that Huu is quite as black as De Lattre paints him and that he may not reform his practices to some extent. Huu is prudent and ambitious to remain in office.
2. De Lattre had talked with the Cambodian King in Phnom Penh and urged on him a vigorous and straightforward attack on communism and Viet Minh in Cambodia. Commies were clever and implacable and there was very real possibility, he had told the king, that they wld penetrate and dominate the numerous Buddhist priesthood. If that happened Cambodia wld be “lost”.
3. De Lattre said he was most pleased with result his interview with the Pope. Fr Ambassador to the Vatican had warned De Lattre that it wld probably be months at best before Vatican wld exert its influence to get Viets Bishops take an unequivocal position supporting Bao Dai Govt and Fr effort IC. De Lattre thought, however, Vatican must have acted almost immed since on his return he had promptly recd expressions support from the Tonkin Bishop Thuc of southern Vietnam. De Lattre thought his difficulties with Viets Catholic hierarchy were now pretty well at an end.
Sent Dept 958, rptd info Paris 378.
- M. de Raymond, French Commissioner in Cambodia, was stabbed to death by a servant on October 29.↩