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Rh OF FRENCH. FRENCH HAD AN INVESTMENT IN LIVES AND PROPERTY IN VIETNAM WHILE OURS INVOLVED EFFECT THAT FATE OF VIETNAM WOULD HAVE ON REST OF SOUTH EAST ASIA. SECRETARY CLOSED BY STATING THAT HE ACCEPTED MENDES' THREE POINTS WITH ADDITION OF HIS OWN FOURTH.

MENDES REPLIED THAT HE SYMPATHIZED WITH US PROBLEM BUT TRUSTED THAT WE WOULD NOT RPT NOT ARRIVE AT NEGATIVE CONCLUSION. HE URGED THAT US AND FRANCE KEEP IN TOUCH AT ALL TIMES. EVEN IF US SHOULD ARRIVE AT NEGATIVE POSITION, FRANCE WOULD NOT RPT NOT RENOUNCE HOPE.

EDEN STATED HE AGREED AND FELT THAT EVEN ADDITIONAL SINGLE YEAR OF SUSTAINED EFFORT WOULD HELP EVERYWHERE AND THAT WE MUST TRY AND KEEP UP THE FIGHT IN ORDER TO GIVE CONFIDENCE TO OTHERS IN AREA. THIS ENDED MAIN PART OF INDOCHINA DISCUSSIONS.

MENDES THEN SAID THAT HE WISHED TO RAISE QUESTITNQUESTION [SIC] OF LETTER SENT BY VIET MINH TO EDEN AND MOLOTOV AS CO~CHAIRMEN OF GENEVA CONFERENCE. IT COMPLAINED ABOUT VIOLATIONS OF GENEVA AGREEMENT BY FRENCH AND VIETNAMESE GOVT. HE SAID THAT SOME OF VIET MINH COMPLAINTS "WERE NOT RPT NOT UNFOUNDED". WHOLE MATTER CONSTITUTED DELICATE QUESTION FOR ICC WOULD BE SEIZED OF IT AND IT WOULD PROVE DIFFICULT, PARTICULARLY IN VIEW SENSITIVITY OF INDIANS ON ICC. MENDES BELIEVED WE MUST EXERT ALL OUR EFFORTS TO CONVINCE SOUTH NOT RPT NOT TO VIOLATE GENEVA AGREEMENTS. VIETNAMESE POSITION HAD BEEN THAT THEY WERE NOT RPT NOT SIGNATORIES. THIS MIGHT PROVE USEFUL TO US LATER AS LEGAL POSITION BUT FOR PRESENT BELIEVED SOUTH MUST BE PERSUADED TO ABIDE BY GENEVA TERMS.

EDEN STATED HE HAD REJECTED LETTER EXPLAINING THAT ATTEMPT TO DELIVER IT HAD BEEN MADE IN MOSCOW. MENDES CORRECTED EDEN'S MEMORY BY STATING THAT LETTER HAD BEEN REPORTED BY BRITISH CONSUL IN HANOI. HE DESCRIBED LETTER AS NOT RPT NOT BEING IMPORTANT IN ITSELF -- A PROPAGANDA INSTRUMENT -- BUT THAT IT INDICATED START OF POLITICAL OFFENSIVE BY VIET MINH.

RELATED PROBLEM WAS SAFEGUARDING OF PUBLIC UTILITY SERVICES IN HAIPHONG.44698 Rh