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 leaves and new Prime Minister installed, to prevent clear Binh Xuyen QTE victory UNQTE over Diem which would rise to plague successor.

(3) If Bao Dai gives adequate assurances, Collins and Ely should immediately help the Vietnamese work out the new alignment, urge Diem to serve in a new capacity, if he will, and provide full support for the new government. If Diem refuses, the program should nevertheless be carried out anyway.

4) While the Vietnamese in Saigon should be the framers of a new government, Collins and Ely will probably have to be in practice the catalyst. This may result in stories regarding a new Collins-Ely QTE formula UNQTE but we should make every attempt to keep the Vietnamese label.

5) General Collins and Ely should inform Diem that as a result of his inability to create a broadly based coalition government, and because of Vietnamese resistance to him, their governments are no longer in positions to attempt to prevent his removal from office. Diem's patriotic qualities are of great potential value to Vietnam and it is hope he will lend his services to any new government which might be appointed.

6) Collins and Ely together speaking for their governments may be able to elicit this formula outlined sub-para 4 above from Vietnamese political leaders behind the scenes. If those leaders, including Diem if practicable, adopt such a formula, they could ask Bao Dai to countersign it. If the Vietnamese consulted cannot agree among themselves on a candidate, then Ely and col1ins will, have to recommend a name for Bao Dai to designate to form a new government under tho proper terms and conditions. 48581 Rh