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NIACT.

SENT DEPARTMENT 2250, REPEATED INFORMATION PARIS 706, PHNOM PENH UNNUMBERED.

Rang-Pahn Thiet affair.

Compromise solution in matter or rebellious officers has been found and is apparently satisfactory to army command and Prime Minister.

4. Army Chief of Staff and Inspector General:

At midnight 12–13 December Generals Vy and Ty took office as Inspector General and Chief of staff Vietnam armed forces, respectively. Details of Vy's duties not yet known.

5. Diem's declaration of confidence in Army:

December 13 Diem published declaration expressing confidence in Army and calling on all ranks to join with people in building free, independent Vietnam.

Postscript.

6. Re paragraph 1 (A) above: Ely and I this morning signed minute of understanding on development and training of autonomous Vietnam armed forces and agreed to wording of separate explanatory memorandum for record to accompany it. Final text of minute is based on our draft and I consider it wholly satisfactory. Texts follow by separate message.

7. Re paragraph 2 above: Ely and I agree this morning to take further steps to secure Quat's appointment. Ely discounts possibility sects will revolt if such appointment made. Ely said he would at once see Generals Phuong and Soai and inform them both French and Americans support Quat's appointment. Ely said he has little influence over Cao Dai Pope and recommended I see him. Ely will also intervene with Deputy Defense Minister Minh and ask him to remain three to six mouths as Quat's deputy. Rh PERMANENT