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Page of telegram to  basic problems there. Neither do Mendes-France or Eden. Nor do I see merit in French suggestion of viceroy, which Mendes-France did not press after suggestion Has analyzed. I see little point taking time create such machinery when no successor in sight and which would only add to intrigues.

6. Early approval of France and then Viet-Ham of Collins-Ely memorandum understanding regarding training is basic need. We should make every effort ensure discussions with Viet-Nam proceed rapidly and effectively. Only when we have taken steps reorganize and revitalize National Army can we hope for improved security condition and lessening Communist influence Free Viet-Nam. This will also require very best native leadership available and I hope either General Ty or Vy is up to that task.

7. There also extremely delicate problem our influencing Diem along right lines. I know how frustrating Collins' experience now and Heath's in past have been. Land reform has powerful propaganda value, which Communists already not failed exploit. Something should be done on our side, with our help, put this emotional and. basic element to work for us.

8. Although there many other factors consider I am sure if we concentrate on solving problems listed above we will make headway. I would appreciate your comments.

Rh