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NIACT

SENT DEPARTNENT 5074, REPEATED INFORMATION NIACT PARIS 1305.

7. French position.

A. French position determined by two factors:

(1) Ely's responsibility for safety FEC and for French lives and property; and as signatory of Geneva Accords;

(2) French desire retain cultural and economic presence and to retain Vietnam as part French Union.

B. Friction between French and Vietnamese has reached serious proportions. It springs from two major sources:

(1) Ely, to meet his responsibility for the safety of French lives and property, has established a French controlled security zone which includes large portion residential and business zone of Saigon proper. He has introduced new French battalions to protect this zone. Presence these forces, reported refusals to permit VNA units to move through French Zone, and sanctuary provided to three Binh Xuyen posts located within security zone are constant irritants to Vietnamese nationalists.

(2) Anti-Diem propaganda such as broadcast by Radio France-Asia and allegations of French support of sects, particularly Binh Xuyen, which widely credited by Vietnamese, have added oil to fire.

C. Ely and French authorities here have finally concluded Diem must go. Increasing French bitterness toward Diem and their sensitivity to "anti-colonialist" propaganda has to some extent been extended to US whom they blame for not joining with them in pressing Diem to seek cease-fire. French likewise tend blame US for recent bloodshed because we did not agree with them in finding political solution to governmental crisis some three weeks ago.

D. Strong anti-French aspect of Revolutionary Committee has great appeal to large segments of population which beneath surface has long nourished hatred and contempt for French. RhRh