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EXCERPT FROM TELEGRAM FROM SECRETARY DULLES:

"We meet alone with the French, being joined after a time by the British for discussion of Indochina. Faure proposed that in view of the sharp differences of opinion which existed between our two Governments with reference to policy in Vietnam and in view of his Government's total inability to support Diem, who had now become violently anti-French, he proposed that the French should withdraw their forces from Vietnam. He raised the question as to whether in this event we would be able to give any assurances regarding protection of lives and property of remaining nationals.

"I replied that this was too serious a matter to settle without deliberation, and that I agreed that Vietnam was not worth a quarrel between France and the United States. If we could not agree, then one or the other should withdraw from the scene, as we could not afford to oppose each other in this area and adopt rival and competitive policies. I said that the United States would be willing to withdraw, and indeed I could not have any good hope that Congress would appropriate the necessary funds for us to support the situation if we withdrew support from Diem and sought an alternative which Faure himself said he could not now define. My guess is that the French are not bluffing and that his proposal may be the agreed solution." Rh