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SENT DEPARTMENT SECTO 557, REPEATED INFORMATION PARIS 10, SAIGON 8.

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PARIS EYES ONLY AMBASSADOR

SAIGON EYES ONLY CHARGE

In Johnson's absence, Chauvel this afternoon, informed Bonsal regarding his talk with Kuznetsov last night and with Dong this morning.

Chauvel raised with Kuznetsov pending questions on control. He found Kuznetsov adamant on necessity of inclusion Communist power and rejection thesis Communists can not (repeat not) be neutral. Kuznetsov added that Colombo powers are afterall sworn to influence of London which in turn is influenced by Washington. Upshot of talk on this point was that matter of composition might be set aside for present and left for Ministers to settle when they return. Concerning acceptance by parties of decisions or recommendations of international commission, Chauvel stressed importance of establishing "rule of law" accepted beforehand by both sides. Chauvel had impression Kuznetsov not (repeat not) unmoved by his arguments this point, although he gave no (repeat no) indication of change in Soviet position.

On military questions, Chauvel made clear to Kuznetsov that these are held up because Viet Minh have made unacceptable proposal of demarcation line along thirteenth parallel (about Tuy Hoa). On other hand, Chauvel stated French have proposed line acceptable not (repeat not) only to French, but one which French have reason to believe would be acceptable to conference as a whole, and thus would avert risk of internationalization of conflict. Kuznetsov replied that difficulty arises from fact that three provinces south of Faifo have been held for many years by Viet Minh (area in question would appear to run from just south of Faifo and include provinces of Quang Ngai, Qui Nhon and perhaps all or part of Song Cau; Department will recall in this connection, recent violent Viet Minh attack against Rh