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 4. Extremely urgent to prepare and initiate program at earliest date or political benefit will be vitiated. Fact finding hero should produce report reasonably believed to be acceptable Pignon as well as Bao Dai. If entire matter is put aside for negotiation in remote capitals in future sometime, efforts to make good-will for and with Bao Dai elements might be destroyed, We have just been informed by LEDOUX on his arrival from Paris that economic aid program for fifteen million submitted directly to Washington and being studied by interested agencies there. From Ledoux's brief comment on make-up this Paris/Washington submission not realistic economic or political being designed more to relieve French balance-of-payments position than achieve US objectives of political economic support in Indochina. (See Legtel 165, March 9 paragraph 10 (c). Ledoux requesting permission Pignon give us copy this evening. Composition of program is of course very important. Must emphasize strongly that how American aid is extended and how rapidly are factors at least as important as how much.

5. LIPSMAN, DICKINSGH and BLUM have worked most usefully with Mission. Dr. MOYER's presence has been immeasurably helpful.

6. You may anticipate at least recommendation that five million dollars ECA funds if they can be made available current fiscal year should be employed here. We will suggest what phases program should be allocated that fund. You may also anticipate that in this particular country GRIFFIN and GULLIOH may recommend ECA Mission take complete charge all economic aid under coordination by Chief diplomatic mission. This respect perhaps ECA should be alerted as top job will require person good stature and capacity (Dickinson and Blum, have seen, concurred this proposal and Dickinson will discuss on return)-

7. Cambodians and Laotians welcome technical aid prospects. Viet have hitherto insisted without much documentation they well furnished with Viet technicians. We learn today they under misapprehension they would have to pay salaries American US technicians sent here which may account for their past attitude. They now preparing requests for considerable technical assistance. French have demonstrated great technical capacity here in past and have many able technicians. They show no enthusiasm Tor Point TV, While March 8 Agreements provide priority French technicians, French might show some latitude this connection. Their skepticism reported due belief Point IV has too little money and drive behind it and will not bear fruit for many years.

8. Guillon concurs.

Griffin/

GAGullion/vdm/ela Rh