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PRIORITY.

SENT DEPARTMENT 4607, REPEATED INFORMATION PRIORITY GENEVA 321.

GENEVA EYES ONLY UNDER SECRETARY.

LIMIT DISTRIBUTION.

Reference: Department telegram 4325.

Second paragraph of reference telegram may indicate extremely serious misunderstanding between US and French. French draw sharp distinction between (1) US intervention in present circumstances with Viet Minh bolstered by Chinese Communist materiel, technicians and possibly scattered troops and (2) US reaction against full-scale air attack mounted from Communist Chinese bases. Regarding point (1) French fully understand that conditions outlined Department telegram 4023 apply to any possible US intervention. As regards point (2), however, the French fully count on US military reaction against such an open Chinese Communist attack. The only limitation on such US reaction which French recognize is the time required for Congressional action, which they would hope to be a matter of not more the a day or two. In second case, they feel that US statements to the effect that full-scale Chinese Communist intervention could not be permitted are still binding whether or not there is time to create collective action. The Secretary's radio speech of May 7, indicating that while Chinese had given very considerable support at Dien Bien Phu they had avoided full-scale intervention, was taken to mean by French that if there had been full-scale Chinese intervention US would have responded differently to their request for military assistance.

Schumann reverted last night to this question of protection against a possible air attack and gave more accurate information than that contained in Embassy telegram 4580 regarding French apprehensions. He said that what French General Staff fear is an attack from bases en Hainan Island against Haiphong. Best French estimate is that Chinese jets coming from Hainan Rh

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