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FOR THE AMBASSADOR

LIMIT DISTRIBUTION

If the French agree to para. 7 DEPTEL then you may give them orally the following views on procedures and a new government. Our views are based on consultations with General Collins, a careful study of the French aide-memoire of April 17, 1955, Bao Dai's proposals, and the views of various Vietnamese in Saigon.

A. Our tentative proposals on procedures are as follows:

1) The US will have to maintain position of full support for Diem until and unless Vietnamese leadership develop alternate proposal which Bao Dai would support.

2) Bao Dai should be informed by both governments that before we would support for any change he must guarantee that he will confirm Prime Minister's authority over police officials, the Binh Xuyen will be remove from police functions, and surete, and that the sects will agree to a broad program of their integration into the national life of Vietnam on the basis of QTE a single nation, a single state, a single army, and a single administration UNQTE. Such decree by Bao Dai must be in process before Diem Rh