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could only be bad, the GENERAL explained, if somebody was attempting to "put rocks" into the machinery of the Vietnam-Franco relationships and into the machinery of Franco-Anerican friendship, particularly when the French Commonwealth was involved. He had informed him that since such projects were not under State Department Jurisdiction, it would be advisable that the General explain his difficulties to Mr. Blum. Discussion had taken place with Mr. Blum early in August at which time the General explained that, while direct aid might rightly be sent directly to the Associated States, such economic assistance should remain within the framework of the concept of the French Union. He had also explained to Mr. Blum at that time that if economic aid were used to extend American influence, great harm would result. However, these discussions had proved most successful and a basis of agreement had been reached regarding the relationship between the economic aid program and the French Union. He had been informed that Mr. Blum was no longer in Indochina but hoped that his relationship with Mr. Blum's successor would be equally harmonious. MINISTER HEATH commented that he thought the past misunderstanding had been cleared up, MR, GRIFFIN concurred, saying that he did not feel that future misunderstandings would arise because liaison channels between ECA and the General's staff had improved and a continued exchange of information through informal talks had been planned. By a more acute examination of the places in which economic aid would have the most advantageous military results it would be possible to build greater faith in the program, MR. GRIFFIN added that the major purpose of the U.S. program was to make. the people of Indochina feel that the economic aid was contributing to the welfare of all. GENERAL de LATTRE reiterated that the earlier disagreements were due largely to the overly zealous activity of the "young missionaries" and suggested that future programs should be directed more toward

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