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 (7) Various plans which have been proposed for interim forms of governments, such as provisional or constituent assemblies, and including the plan of Thoi (Minister of Planning and Reconstruction) which was considered worthy of further study, are doomed to defeat as Diem will not accept such recommendations.

(8) "Diem has been informed by me that I don't see how anyone can save his government and that I think that Bao Dai will remove him."

b. In elaborating further on the situation in South Viet-Nam General Collins stated that the Bao Dai plan (EMBTEL, Paris 4575) attached as TAB A is worthy of consideration and recommends that the U.S. census in the implementation. Based on this statement, Mr. Murphy, State, commented that for a time it appeared that Diem was developing successfully according to General Collins' reports but that General Collins had now reversed his position. In response, General Collins stated that he had never indicated that Diem as indispensable. General Collins further stated that this was the best we could hope to obtain as pertains to a Vietnamese-conceived plan and that practically any plan was to be saddled, propaganda-wise, with the stigma of French or U.S. conception.

c. In a further discussion between Mr. Murphy and General Collins the problem of the fighting between the Sects and the National Army was developed and General Collins stated:

(1) The U.S. is just now beginning to train the Vietnamese National Army and a senior Vietnamese Army officer stated that they had no desire to fight other Vietnamese (Sects).

(2) Ty (Army Chief of Staff) told General Ely he would not order an attack on the Sects.

(3) The French will not, except to protect their own people, use French troops against the Sects. Their primary mission is one of external security.

(4) The bitter feud between Bay Vien and Diem originated in Diem's closing of the "Grande Monde".

(5) Practically all Vietnamese now disagree with Diem.

(6) Some compromise will be necessary on the part of Diem's replacement.

(7) The Binh Xuyen are not in a strong military position.

(8) Bay Vien and the Sects will accept the concept of Bao Dai's plan.

(9) Bay Vien will surrender the control of the police if ordered to do so by Bao Dai and if Diem is replaced. Rh Rh