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-2- SECTO 626, July 16, 7 p.m., from Geneva Chauvel said French were concerned over reports continued contacts between FranTran [sic] Van Do and Dong. They did not know exactly what was happening, they know very little about Do, but they had impression he was unsophisticated and might be "taken into camp" by Dong. They felt after zones between defined and two governments each clearly responsible for own territories, such contacts would probably be desirable and necessary, but in present situation might be dangerous and could even result in surprise more bringing about something in nature of coalition government. Chauvel said De Jean was going to see Bao Dai to determine what Bao Dai knew about the matter and whether he had approved.

In reply to my question on what French conceived to be major outstanding issue, Chauvel listed: (1) military demarcation line in Vietnam, (2) regrouping in Vietnam, particularly in delta area, where Chauvel said Viet Minh would be required to move out two divisions from areas that they now occupied so as permit separation from French-Vietnamese forces. In Laos he said major question retention small number French troops there (consideration was being given to "changing their flag" from French to Laos), and also political questions in Laos. He said there were no major issues on Cambodia.

Chauvel also mentioned international control and asked whether I had any new instructions on subject. I said I had not and subject had not been discussed at Paris in any detail.

UK informed me today that meeting was proposed this afternoon between Mendes, Eden and Molotov to go over present stage of work of conference and make catalogue of work to be done. They asked whether I wished to be present, pointing out if US were present Soviets would probably insist on presence of Chinese, thus turning meeting into "five power affair". I replied that I had no objection to their goindgoing [sic] ahead on three-power basis.

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