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Rh HOW TO DEAL WITH FORTHCOMING ELECTIONS. DIVISION OF COUNTRY HAD GIVEN SOUTH VIETNAM DISADVANTAGE IN COMPETING WITH NORTH BUT WHAT SOUTH LACKED IN AREA AND POPULATION WAS COUNTERBALANCED BY HER ECONOMIC SUPERIORITY. FRANCE BELIEVED THAT SOUTH COULD WIN OVER NORTH IN ELECTIONS IF SHE COULD PRESENT MORE ATTRACTIVE REGIME TO PEOPLE. THIS COULD BE DONE ONLY WITH NATIONALIST, STABLE AND BROADLY BASED GOVT. TIME WAS OF ESSENCE FOR DISCUSSIONS PRIOR TO ELECTIONS WHICH WOULD OPEN NEXT JULY AND ELECTIONS THEMSELVES IN JULY 1956. THERE WAS NO AMBIGUITY IN FRENCH POLICY BETWEEN NORTH AND SOUTH VIETNAM. PRESENCE OF FRANCE IN NORTH COULD NOT BE ERASED BY STROKE OF PEN. IT IS FRENCH DUTY TO PROTECT HER CULTURAL AND ECONOMIC PRESENCE THERE. SAINTENY MISSION IS DESIGNED FOR ONLY THAT PURPOSE. FRANCE HAD GIVEN UP THOUGHTS OF MIXED COMPANIES AS RESULT OUR OBJECTIONS AND HAD NOW SURRENDERED COAL MINES. SAINTENY MISSION WOULD BE MAINTAINED ON ITS PRESENT TERMS. IT WOULD BE NEITHER ENLARGED NOR CHANGED.

LAFOREST CONTINUED TO SAY THAT FRANCE HAS LOYALLY SUPPORTED GOVT OF DIEM FROM BEGINNING. ANY ALLEGATION TO CONTRARY IS UNTRUE. FRENCH CONSTANTLY TRIED TO REENFORCE DIEM GOVT. FRANCE REACHED AGREEMENT WITH US LAST DECEMBER TO PERSUADE "OR COMPEL" DIEM TO ENLARGE GOVT. IT WAS AGREED TO GIVE HIM UNTIL JANUARY AT WHICH TIME, IF HE HAD FAILED, WE WOULD LOOK INTO MATTER OF ALTERNATE DISCREETLY. THIS WAS NOT DONE. LAST MARCH PRESENT GOVT BROKE INTO OPEN CONFLICT WITH SECTS. UNITED FRONT OF SECTS WAS FORMED AGAINST DIEM. BOTH DECEMBER AGREEMENT AND COMMON SENSE TOLD US AT THAT TIME THAT SOMETHING TO BE DONE TO AVOID CIVIL WAR. FRANCE WARNED THAT ARMED CONFLICT – FIRST CIVIL WAR, THEN GUERRILLA WARFARE, THEN TERRORISM – WOULD RESULT IF WE FAILED TO TAKE ACTION. FRANCE HAS ALWAYS DESIRED PEACEFUL SOLUTION. FOR THIS REASON JOINT ELY-COLLINGSCOLLINS [SIC] APPROACH WAS TRIED. IT WAS HOPED THEY WOULD ARRIVE AT JOINT PLAN FOR SOLUTION. WASHINGTON APPEARED FIRST TO WELCOME THIS CONCEPT THEN CHANGED ITS MIND. COLLINS LEFT SAIGON WHEN CIVIL WAR WAS ABOUT TO BREAK OUT. UNTENABLE TRUCES WERE DECLARED. WHEN THEY WERE ABOUT TO EXPIRE BAO DAI SUBMITTED HIS OWN PLAN ON APRIL 19 IN ORDER TO TRY TO RECONCILE US AND FRENCHRh