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NIACT

SENT DEPARTMENT 2601, REPEATED INFORMATION SAIGON 388, LONDON 654.

LIMIT DISTRIBUTION – SAIGON FOR COLLINS

TRIPARTITE DISCUSSIONS ON INDOCHINA TOOK PLACE THIS AFTERNOON AT MATIGNON.

DULLES OPENED CONVERSATIONS BY GREETING ELY AND CITING APPRECIATION OF COOPERATION HE HAD SHOWN U.S. AUTHORITIES IN VIETNAM. ELY GAVE REPORT CURRENT SITUATION AT MENDES' SUGGESTION. HE SAID FIRST POINT TO BE CLEARED UP AFTER COLLINS ARRIVED WAS SETTLEMENT GOVERNMENT-NATIONAL ARMY CONFLICT. ACCOMPLISHED BY MEANS BAO DAI'S RECALL HINH. SECOND WAS TO TRY PREPARE PROGRAM FOR DIEM GOVERNMENT. THIS DONE BUT QUESTION NOW HOW TO GET DIEM ACCEPT FORMULA. THEIRS WAS HOW STRENGTHEN DIEM. ELY AND COLLINS THIRD INTRODUCE QUAT WHO IS BETTER POLITICIAN AND ADMINISTRATOR THAN DIEM INTO GOVERNMENT BUT SECTS AND DIEM BALKED. HE SAID ONLY SUGGESTION EVER ACCEPTED BY DIEM WAS APPOINTMENT MINH AS MINISTER DEFENSE.

MENDES INTERRUPTED TO MAKE TWO POINTS. FIRST THAT COLLINS AND ELY THOUGHT THAT MINISTRIES OF INTERIOR AND NATIONAL DEFENSE SHOULD BE COMBINED. BOTH OFFICES ARE CONCERNED WITH INTERNAL AFFAIRS AND IT IS UNNECESSARY SEPARATE THEM AT THIS TIME. DIEM HAD REFUSED THIS SUGGESTION TOO. SECOND POINT WAS THAT WORKING GROUPS HAD BEEN ESTABLISHED IN SAIGON TO SUGGEST REFORMS TO GOVERNMENT – BOTH ADMINISTRATIVE AND AGRARIAN. NOT A SINGLE REFORM SUGGESTED ACCEPTED BY DIEM. MENDES DESCRIBED DIEM'S APPROACH AS WHOLLY NEGATIVE. FRENCH GOVERNMENT NOW CONSIDERED THAT AS A RESULT OF TODAY'S TALKS STRONG APPROACH WOULD HAVE TO BE MAD TO DIEM. Rh 44692