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-2- #SECTO 557, July 3, 8 p.m., from Geneva. French forces withdrawing from Ankhe which is in this general area). Kuznetsov suggested French and Viet Minh might examine area between fourteenth and eighteenth parallel and exchange views as to specific areas of particular interest to each party. Chauvel stated this could not (repeat not) be considered and repeated position regarding line French have already offered.

Chauvel's talk with Dong took place this morning at residence of Chinese Communist delegation. There was an exchange of views about control and particularly regarding prior agreement to accept decisions or recommendations of international commission. Dong stated that he would consider this further. He is aware that French, British and Soviet delegations are working on specific proposals (SECTO 553).

Chauvel reports that he spoke most firmly to Dong regarding military discussions. He said French have accepted Viet Minh proposal that Viet Minh receive Tonkin area, including Capital, but that further Viet Minh proposal for demarcation line is unacceptable. Chauvel reiterated in strongest terms fact that French proposal for demarcation line just north of Dong Hoi would be acceptable to conference and would thus eliminate danger of extension of war. ( hauvel stated to Bonsal that of course French would have to hold Haiphong and adjacent zones for considerable period.)

Dong raised question of Viet Minh troops and sympathizers in areas south of Faifo. Chauvel stated he assumed regular troops would be evacuated and others would return to their villages. He said that presumably there would be no (repeat no) objection to any persons desiring to do so removing to Viet Minh controlled territory. (Bonsal expressed interest and emphasized United States view this subject as set forth paragraphs of aide memoire contained Department telegram 4853.

Dong endeavored to raise question of eventual political settlement but, Chauvel stated that in present discussions must be limited to military matters and reaching of armistice. He stressed purpose of present conversation is to make arrangements for removal from Tonkin of 300,000 Franco-Vietnamese troops. He said that French have no (repeat no) aggressive military intentions, although obviously it is essential for French to reinforce their position both by regrouping their forces in delta and by measures agreed on in Paris in order to insure so far as possible, security of their troops. (He told Bonsal he did not (repeat not) believe either French or Viet Minh would take aggressive military action under present circumstances.)

Alluding to political matters, Chauvel took occasion to point out to Dong that elections have not repeat not yet been held in Communist China and that Dong would probably agree on need for considerable period of pacification and reconstruction before Rh