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—2— SECTO 578, July 9, 9 p.m., from Geneva line about 40 kilometers north of Tuyhoa line and (2) "neutralization" of delta in order to permit total evacuation of French Expeditionary Corps in three months period. French representative stated both these proposals wholly unacceptable and not even worthy of discussion. He refused to set date for next meeting.

Chauvel saw Molotov this morning. Molotov expressed interest in being informed of progress of conference. Chauvel gave him general review touching particularly on question of demarcation line, attitude of extreme intransigence being adopted by Viet Minh in military talks and problem of international controls. Molotov expressed interest but claimed unfamiliarity with details. Chauvel suggested desirability of contact between French military representatives and members of Soviet delegation in order that Soviet delegation might be fully informed of difficulties being encour:.te~ed arrl of attitudes adcpted by Viet Minh. Later in day Soviet delegation got in touch with French delegation and these contacts will be set up. Molotov stated that he had seen Chauvel's working paper (SECTO 575) and that while there were points requiring clarification and further study he thought it was a useful contribution.

Chauvel has impression both Russians and Chinese give Viet Minh fairly free hand to see how far they can go but that when they find Viet Minh demands have gone beyond limit which French can be expected to accept, they intervene. Chauvel made point to Molotov that any agreement reached must be acceptable not only to France-Vietnamese side and to Viet Minh but also to ether conference members. He is hopeful that, as he says occurred previously, Chinese-Russian moderating influence will now be brought to bear on Viet Minh. Chauvel expressed confidence that if he were negotiating only with Russians and Chinese, he could almost certainly achieve a settlement in line with provisions of US-UK aide-memoire.

Chauvel told me that he is having his staff prepare drafts of an armistice agreement and related documents so as to be ready in case ministers reach agreements on major matters. He stated that information we had furnished regarding Korean armistice was most useful to them and was much appreciated.

JOHNSON AW/6 44229 Rh