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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011  General Staff studying proposals and have different ideas. Since he wants to be sure that whatever done is well thought out, will be successful and not have to be changed in future he letting responsible officials thoroughly consider proposals. Diem stated that Secretary Thuan working on detailed statute for central intelligence organization, but it required more work and needs to be polished up. I replied that frankly time was slipping by and as yet there no action on these three points, which essential before I can give "green light" on equipment for 20,000 increase in armed forces.

In connection Diem remarks, Vice President Tho told me April 28 that he had not seen CIP, although he had heard of its existence, and he does not believe other Ministers have seen it either. Question thus arises as to whether Diem's statement that various Cabinet members studying CIP refers only to Thuan. I gave Tho fairly detailed fill-in on CIP contents. Tho said action now by President, at least implementation of reforms, needed in order capitalize on present upswing in popular feeling about situation following GVN success in carrying out elections despite VC efforts to disrupt. Stating he did not know when if ever reforms will be implemented^ he commented that failure take such action after so many promises would lose all momentum gained from elections. Tho added that, aside from psychological impact, reforms likely take (make) little change unless Diem himself changes his method of operating. He noticed that if "super ministers" without real authority they likely become just additional level in bureaucracy without making GVN more effective.

On May 2 in course my formal farewell call I asked Diem if decrees yet signed on intelligence organization, chain of command and reforms. Diem stated he working on these matters but went through usual citation of difficulties including problem of convincing available personnel that they capable and qualified carry out responsibilities. He stated he already named Colonel Nguyen Van Yankee to head intelligence organization, Colonel Yankee has selected building for his headquarters and in process recruiting staff, while Secretary Thuan working on statute for organization. Re chain of command, I strongly emphasized that this one of most important factors in CIP, GVN must organize itself to follow national plan with one man in charge operational control and not waste time chasing will of wisps. Diem replied that he not feeling well (he has cold) and with inauguration he has not had time focus on this question but he will do it. He stated that he realizes only effective way is to place counter insurgency operations under Joint General Staff, but that his generals disagreed as to exactly how this should be done. Rh