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-2- DIEM REPLIED THAT NEITHER DID HE WISH CIVIL WAR, BUT ADDED THAT "FEUDALISTS" ARE UNSCRUPULOUS. I SAID THAT I MUST REPORT TO MY GOVERNMENT THAT I BELIEVED DIEM'S COURSE OF ACTION MUST LEAD TO CIVIL WAR.

6. I TOLD DIEM THAT ALL VIETNAMESE WITH WHOM I HAD TALKED WERE LIKEWISE OPPOSED TO COLONIALISM, FEUDALISM AND COMMUNISHCOMMUNISM [SIC]. HOWEVER, THEY DIFFER AS TO METHODS OF TACKLING THESE PROBLEMS AND DO NOT APPROVE OF DIEM'S WAY OF WORKING. DIEM SAID THAT ON THE CONTRARY THEY DID NOT OPPOSE HIS METHODS, BUT HIS POLITICAL CONCEPTS. HE ADDED THAT EVERY TIME A COMPROMISE IS MADE THE PROBLEM RETURNS IN MORE ACUTE FORM. THE PEOPLE DO NOT LIKE THIS.

7. I ASKED WHAT DIEM WOULD DO IF BAO DAI DECIDED TO MAKE A CHANGE OF PRIME MINISTER. DIEM SAID BAO DAI HAS POWER TO DO SO AND WILL DECIDE. HOWEVER, EXPERIENCE IN VIETNAM DURING THE WAR HAD PROVED COMPROMISE TO BE INEFFECTUAL. IT WILL BE UNFORTUNATE IF BAO DAI DOES NOT ACCEPT HIS COURSE OF ACTION. I TOLD DIEM THAT U BELIEVED THAT IF NO COALITION WERE EFFECTED PRIOR TO ELECTIONS, BAO DAI WOULD MAKE A CHANGE. I HAD TRIED TO ASSIST VIETNAMESE TO AVOID DRASTIC SOLUTION OF THIS SORT, BUT UNLESS GOVERNMENT IS EFFECTIVELY BROADENED, I BELIEVE THERE WILL BE A CHANGE. DIEM SAID HE WAS CONTINUING HIS POLITICAL CONVERSATIONS TO TEST ACCEPTABILITY OF HIS IDEAS. I SAID I HOPED HE WOULD DO EVERYTHING POSSIBLE TO AVOID OPEN CONFLICT DURING BYMY [SIC] ABSENCE. DIEM SAID THAT IF HE HAD REMOVED SANG AS CHIEF OF POLICE IN BEGINNING, HE WOULD NOW HAVE SAIGON WELL IN HAND.

8. I ASKED IF HE HAD HAD ANY REPORTS FROM LUYEN. DIEM REPLIED THAT BAO DAI WAS ABSENT WHEN LUYEN ARRIVED. HE SAID THAT LUYEN HAD REPORTED THAT PEOPLE IN PARIS HAD NO UNDERSTANDING OF WHAT WAS GOING ON IN VIETNAM.

9. ON TAKING MY DEPARTURE I SAID THAT IN MY OPINION BAO DAI WOULD REMOVE DIEM IF HE CONTINUED AS AT PRESENT. I HAD DONE MY BEST TO HELP. I ADMIRED HIS ACCOMPLISHMENTS AND HIS CHARACTER, BUT NOT HIS METHOD OF WORKING AND ONLY REGRETTED THAT I HAD NOT BEEN ABLE TO DO MORE FOR HIM AND HIS COUNTRY. 10. I SEE NORh 45181