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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 TOP SECRET – Sensitive and a personal friend of Bao Dai — (Dr. Dan later was the opposition leader of the Diem era). Dr. Dan reported a touching conversation with Bao Dai's mother in which she described her son at a loss to know whom to trust, and heartsick at the atmosphere of hostility which surrounded him. Yet Dr. Dan resigned as Bao Dai's Minister of Information over the Elysee Agreement, and, though he remained close to the Emperor, would not reassume public office for him. Bao Dai himself furnished an apt description of his political philosophy which may explain why he failed to capture the hearts of either beleaguered farmers or serious political leaders — neither of whom could stomach "nibbling" when revolution was required. Said Bao Dai:


 * "To practice politics is like playing a game, and I have always considered life a game."


 * e.

Yet Bao Dai did work at pressing the French. French officials in fact complained to an American writer that Bao Dai spent too much of his time on such pursuits:


 * "He has concentrated too much on getting what he can from us instead of building up his support among the people of the country...History will judge if he did right in putting so much stress on that..."

From late June, 1950, until the end of November, Bao Dai stayed close to the series of conferences in Pau, France, designed to arrange the transfer to the Vietnamese of the services of immigration, communications, foreign trade, customs, and finances. The issue of the finance service was a particularly thorny one, involving as it did lucrative foreign exchange controls. While the French did eventually grant significant concessions to the Vietnamese, Laotians, and Cambodians in each area discussed, they preserved "rights of observation" and "intervention" in matters that "concerned the French Union as a whole." Indeed, the French assured themselves full access to government information, license to participate in all government decisions, and little reduction in economic benefits.

Some French commentators viewed Pau as an unmitigated disaster and the assurance of an early French demise in Indochina. As one writer put it:


 * "By accepting the eventual restriction of trade within the French Union, by losing all effective authority over the issuance of money, by renouncing control over foreign trade, by permitting a system of controlled prices for exports and imports, we have given the Associated States all the power they need if they wish to assure the ruin of our enterprises and compel their withdrawal without in any way molesting our compatriots."

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