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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011 TOP SECRET – Sensitive In response, Secretary Dulles formally told Mendes-France that both the Eisenhower letter and the stronger U.S. action were "in furtherance of the understandings reached at Washington." The U.S. had not "the slightest idea of questioning the good faith of the French government" but "many French officials have not concealed their belief that Diem has failed...and...should be replaced." This attitude produced an "impasse in Saigon" necessitating firmer action. La Chambre received this with "little comment" other than to suggest appointment of Nguyen Van Tam (General Hinh's father, Premier during 1952–1953 and a strong-even oppressive-administrator) to the Interior Ministry. La Chambre called this a "way out of the mess...(for) here is a man who knows how to fight Communists." As in the past, the U.S. rejected the proposal.


 * 5.

The initial U.S. action program rested on three assumptions: that Diem could be persuaded to accept U.S. proposals, that Hinh would obey the government, that the French at all levels would cooperate. None proved immediately valid. So the U.S. adopted yet another tactic. General J. Lawton Collins, U.S. Representative to the NATO Military Committee, was dispatched to Vietnam on November 8 with the personal rank of Ambassador (Heath returned to the State Department). As President Eisenhower described it, Collins' mission was:

"to coordinate and direct a program in support of (Diem's) government to enable it to: (a) promote internal security and political and economic stability; (b) establish and maintain control throughout the territory; and (c) effectively counteract Viet Minh infiltration and paramilitary activities south of the demarkation line."

After initial resistance to the Collins mission (seen as a precursor to complete U.S. take-over of Indochina), General Ely established a close working relationship with Collins. A seven-point program for political, military and economic action was quickly designed. On December 13, Ely and Collins signed a Minute of Understanding agreeing that France would grant full autonomy to the VNA by July 1, 1955 and that the U.S. would assume training duties in January. They agreed the French Expeditionary Corps must remain in Vietnam and the level of financial assistance suggested by Collins ($100 million through December 1955 after which assistance was not contemplated) was adopted by the Foreign Operations Administration and subsequently announced to Paris. Aid was contingent upon consultation with Congress and "subject to Ely and Collins and the two governments mutually agreeing on what is to be done in Indochina."


 * 6.

Paris was unhappy about the aid figure — a third of what France requested. Consequently, withdrawal of French forces was speeded: of the 150,000 troops scheduled to remain in Vietnam through 1955, all but 35,000 were phased out. Monetary reasons were said to be Rh