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SENT TO:Amembassy PARIS 52 PRIORITY

EYES ONLY FOR AMBASSADOR FROM SECRETARY

We are considering here what position we should take as regards the French negotiations in Indochina. These negotiations appear to have gone underground and we have little reliable knowledge of what is really in the minds of the French Government or what is likely to emerge. We have ourselves agreed with the British on the 7 points previously communicated to you. However, we have the distinct impression that the British look upon this merely as an optimum solution and that they would not encourage the French to hold out for a solution as good as this. Indeed, during the talks here the British wanted to express these 7 points merely as a "hope" without any indication of firmness on our part. The word "respect" was agreed on as a compromise. The fact is however that the US would not want to be associated in any way with a settlement which fell materially short of the 7 point memorandum.

We fear the French may in fact without prior consultation with us more than perfunctory character agree to a settlement which though

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