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RhRh (A) Have Bao Dai name Quat to replace Diem as President of Council. Quat is able, forceful and resourceful and though obstacles to his success exist, if given chance, he might succeed where Diem failed. Whether the various selfish groups in the country would give him that chance is question. He is northerner, has only slight political following and, as indicated in PART I, faces considerable opposition. With complete confidence and support of Bao Dai, however, he might succeed; without it he would surely fail.

(B) (1) Second alternative is to have Bao Dai return to Vietnam under "state of emergency" conditions, assume Presidency of Council and rally entire nation to unified action. What is needed here more than anything else is leader who can fire imagination and patriotism of people and instill in them determination to fight for freedom of Vietnam. Bao Dai may be the last possible candidate for this task.

(2) I have boon impressed with influence Bao Dai still exercises over leaders Vietnam. All leaders continue to refer to him as "His Majesty" and most regard him as the real source of authority Vietnam.

(3) To overcome obstacles, dramatize return and establish self as leader of Vietnam, Bao Dai could take steps such as:

(A) Turning over some of his holdings to government for distribution to peasants as step toward agrarian reform;

(B) Form an "emergency" Cabinet including best available Vietnamese -- Quat, Diem others;

(C) Announcing withdrawal French military forces by some specific date;

(D) Issuing temporary democratic charter to guide government during emergency;

(G) Convening a representative assembly;

(H)  a constituent assembly.

6. Though course

KIDDER RAW/VHD Rh