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SENT DEPARTMENT 481; REPEATED INFORMATION SAIGON 44.

During weekend conversation with La Chambre, I had opportunity for full and frank discussion regarding his views of Diem government. La Chambre feels future Vietnamese Government must:

(1) Be fully representative of population in Southern Vietnam;

(2) Be prepared to initiate and carry out agricultural reform (redistribution of land) very promptly, and

(3) Be prepared to depose Bao Dai and create a republic when appropriate during coming months. He feels that Diem government does not (repeat not) qualify on any of these three points but also feels that Diem is valuable for his high moral character and should definitely be a member of any future Vietnamese Government if Diem should be successful in making his peace with the sects in the south and should obtain their support. La Chambre said there would be no (repeat no) objection to his staying on as Prime Minister, provided he would also act on points 2 and 3 above. La Chambre said his information was that Diem would not (repeat not) be able to obtain the cooperation and support of the populace of South Vietnam, and that, because of his Mandarin background, would oppose both agricultural reform and the deposition of Bao Dai. Therefore, La Chambre feels that a new government will be required if there is to be any chance of winning coming election. La Chambre said that he favored Tam as the head of the new government and hoped that Diem would stay on as Minister of the Interior to control the police or as Minister of Defense. La Chambre also hopes that Buu Loc will join the new government as he would be helpful when the time comes to depose Bao Dai.

Regarding timing, there apparently is nothing immediate in the air. La Chambre plans to spend September in Indochina and want to look situation over there before any action is taken.

La Chambre feels Diem will be helpful during evacuation move to the south. My own guess is that there will be no (repeat no) change until November at the earliest. I also assume that if change is decided Rh Rh