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TOP SECRET-3- DIDN'T LIKE HIM. NOW THINGS HAD GONE TOO FAR AND CONSIDERATION HAD TO BE TAKEN OF WHAT WAS BEST FOR VIETNAMESE PEOPLE AND NOT WHAT WAS BEST FOR DIEM AND HIS FAMILY. VIETNAM WAS SUPPOSEDLY AN INDEPENDENT COUNTRY

16. WE ASKED WHAT BROTHER LUYEN WAS STILL DOING IN CANNES AND WHETHER HE WAS SERVING AS INTERMEDIARY BETWEEN BAO DAI AND DIEM. AT THIS POINT BAO DAI REALLY EXPLODED AND STATED THAT BROTHER LUYEN HAD COME TO CANNES NOT FOR ANY PATRIOTIC PURPOSE AS "DIEM UNDOUBTEDLY HAD TOLD AMERICANS IN SAIGON," BUT RATHER ON SECRET MISSION FROM DIEM TO ATTEMPT TO BUY BAO DAI. SOME DAYS AGO BEFORE ANY ACTION HAD BEEN TAKEN TO SUMMON DIEM TO FRANCE OR OTHERWISE BAO DAI SAID LUYEN ARRIVED UNINVITED IN CANNES, BAO WAI KEPT HIM WAITING AND WHEN HE FINALLY RECEIVED HIM, LUYEN OFFERED BAO DAI THE SUM OF THREE HUNDRED MILLION FRANCS IF HE WOULD AGREE NOT TO TAKE ANY ACTION WHICH WOULD AFFECT STATUS OF DIEM OR PREVENT HIM FROM ESTABLISHING HIS AUTHORITY BY FORCE. BAO DAI COMMENTED WITH INDIGNATION THAT, OF COURSE HE HAD REFUSED AND "THROWN LUYEN OUT OF THE HOUSE" BUT HE WAS STILL "GROVELLING" AROUND HE STATED THAT LUYEN HAD MADE VARIOUS ALLEGATIONS OF HIS CLOSE RELATIONS WITH "AMERICANS" IN SAIGON.

17. AT END OF INTERVIEW BAO DAI ASKED IF WE COULD GIVE HIM ANY FURTHER WORD ON WASHINGTON'S REACTION TO PLAN SUBMITTED WEEK AGO. WE EXPLAINED ONCE MORE THAT GENERAL COLLINS WAS LEAVING WASHINGTON THAT DAY FOR SAIGON WHICH WAS SUFFICIENT EVIDENCE OF WASHINGTON'S RECOGNITION OF EMERGENCY NATURE OF SITUATION THERE IT WAS OBVIOUS THAT NO DECISIONS WOULD NOW BE REACHED UNTIL GENERAL COLLINS HAD ARRIVED IN SAIGON AND COULD CONFER THERE WITH EMBASSY AND ELY. IN MEANWHILE WE INFORMED BAO DAI THAT HI OBSERVATIONS WOULD BE PASSED TO DEPT IN THEIR ENTIRETY.

18. BAO DAI SAID HE WOULD SEND DE BACK TO PARIS MONDAY IN ORDER TO REMAIN IN TOUCH WITH US AND TO RECEIVE ANY OBSERVATIONS WASHINGTON CARED TO MAKE TO HIM. AT SAME TIME HE WOULD INSTRUCT DE TO KEEP US AU COURANTE.

DILLON

PAF/32 NOTE: MR. HOEY (PSA) INFORMED 6:30 PM 4/30/55 -- CWO/FED Rh