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Laniel's views reported Embtel 4596 that US and French have Quote now reached accord in principle on political side Unquote on conditions for US military participation Indochina seem to us serious overstatement, this stage and potentially dangerous for reasons given Deptel 43S6 (repeated to Geneva TEDUL 149).

While one major obstacle to agreement removed now that formula proposed DEPTEL 4272 for clarification independence Associated States acceptable (subject to discussion with Bidault, see DULTE 135 repeated Paris 367), we need from French soonest possible precise statement hot they propose handling their action or commitment to meet our conditions listed Deptel 4023 paragraph 2 as modified by Deptel 4272. Until we have obtained such statement from Laniel we cannot (repeat not) be sure basis for any firm agreement does in fact exist. Once such statement received and judged by us fulfill conditions we would then be in position proceed accordance with other necessary steps which would have to be taken, assuming situation warranted it.

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