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NIACT

FOR THE SECRETARY FROM THE UNDER SECRETARY

Following despatch given us in advance by Topping of Associated Press apparently represents official Chinese Communist position and was given Topping in order that we would become aware of it. It begins:

QUOTE

The Communist bloc has demanded that the United States guarantee the partition peace plan for Indochina and join in an agreement to neutralize the whole country, a responsible Chinese Communist informant said today.

The informant, who reflects the views of Red China Premier, Chou En-lai, said the Communists are hopeful of a cease-fire agreement by next Tuesday's deadline if the Western powers agree to 'bar all foreign military bases from Indochina and keep the three member states out of any military bloc.'

The informant said the Communists are pressing for the stamp of American approval on the armistice agreement--already okayed in principle by Britain and France--which would divide Vietnam between Communist leader Ho Chi Minh's Viet Minh and Bao Dai's pro-Western regime.

'We believe that the US as a member of the conference should and is obligated to subscribe to and guarantee any settlement. Morally, there is no reason for the US to avoid this obligation.'

But the informant did not (repeat not) rule out the chance of an Indochina cease-fire even if the US refuses to okay the armistice agreement.

The Eisenhower administration has told France and Britain that they can go ahead with their plan for an Indochina settlement based on partition of Vietnam. But Washington has made it clear that it is not (repeat not) ready to associate itself formally with the plan which would sanction putting millions of Vietnamese under Red rule. Rh