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Rh IN SPITE OF THIS FACT, HE STILL REPRESENTED LEGALITY AND COULD SERVE IN FUTURE IF "LEGALITY" HAD TO BE PROVIDED TO ANY STEP WE WOULD WISH TO TAKE.

MENDES THEN SPOKE OF A PLAN FRENCH HAVE BEEN CONSIDERING. FIRST PHASE WAS TO ASK BAO DAI TO PLACE ON SPOT IN VIETNAM A REPRESENTATIVE WHO WOULD EXERCISE BAO DAI'S AUTHORITY. HE WOULD BE "DELEGATE" OR VICEROY. HE WOULD HAVE FULL AUTHORITY TO USE BAO DAI'S POWERS. USEFULNESS WOULD PERSIST EVEN IF DIEM SHOULD SUCCEED FOR HE COULD ACT AS SUPREME ARBITRATOR TO SETTLE SQUABBLES.

MENDES SAID THAT FRENCH WERE NOW PREPARED TALK TO BAO DAI ALONG THESE LINES AND URGE HIM ESTABLISH VICEROY WITHOUT DELAY.

FRENCH ALSO PROPOSED APPROACH BAO DAI WITH VIEW REINFORCING PRESENT GOVT AND PREPARING LEGAL GROUNDS FOR NEW ONE IF IT SHOULD BE FOUND NECESSARY.

EDEN INTERVENED TO STATE THAT IN HIS OPINION IT WOULD BE MISTAKE FOR BAO DAI TO GO BACK NOW BUT BRITISH RECOGNIZED ADVANTAGE OF VIETNAMESE ROYAL TRADITION AND AGREED THAT "ROYAL COMMISSION" OF SOME SORT SHOULD BE SET UP AND MIGHT PROVE BE BEST WAY OUT.

HE INQUIRED ABOUT PERSONALITY AND USEFULNESS OF EMPRESS AND MENDES REPLIED THAT SHE WAS EXEMPLARY PERSON WHO COULD PROVE VERY USEFUL IN VIETNAM.

ROW/32

Note: Mr. Allen (EUR) notified 2:45 pm 12/19/54 (FMH) Rh