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-2- SECTO 654, July 18, 11 p.m. (SECTION TWO OF TWO), from Geneva. Do noted further that there was no mention of State of Vietnam in either French or Soviet drafts. Vietnamese delegation cannot accept declaration or agreement where Vietnam, which invited to conference as existing state, not even mentioned.

After pause following Molotov's request for other speakers, General made following statement:

"If no one else desires to speak, I think it would be helpful if I made clear position of US in these last critical days of conference. I do this because I have recently seen the advance drafts submitted to the conference and have had a chance to review them.

"One position of the United States with respect to this conference has consistently been that it is willing to assist, where desired, in arriving at a just and honorable settlement which will contribute to the establishment and maintenance of peace in the area. The United States is not a belligerent in this conflict and it has not and will not seek to impose its views in any way upon the belligerents, who are the parties primarily interested.

"If the agreements arrived at here are of a character which my government is able to respect, the United States is prepared to declare unilaterally that, in accordance with its obligations under the United Nations Charter, and particularly Article II(4), it will refrain from the threat or the use of force to disturb them, and would view any renewal of the aggression in violation of the agreements with grave concern.

Since no other representatives requested floor following General Smith's statement, Molotov suggested intermission. After intermission had lasted for 45 minutes, it was informally agreed that meeting should be adjourned without returning to conference room. No communique issued.


 * Today's restricted session strangest performance to date. Apparent Molotov had not set stage even with Communist colleagues for any particularly important announcement despite his insistence that meeting be called. Molotov had said to Mendes-France just before meeting that he thought would be well underline progress made and to show how close conference was to reaching agreement.

During recess, Chou En-lai said he had no desire make any statement. He seemed as much in dark as everyone else as to why Soviets had called meeting.

SMITH SMD:JG/11 Rh Note: Passed Army, Navy, Air, OSD 7/18/54, 11 p.m. JEF