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Interstate conference and promise serious difficulties in relations French and three states in future.

(4)

With respect to possible Viet Nam requests for U. S. Technician, just before final meeting lest night, French working civil representatives expressed very literal view of Section 4 March 8 Agreements reserving priority for French technical advisers. We have not yet had opportunity to confirm with (Pignon) French claim March 8 agreements represented basis their relations Indochinese states and should not be tampered with. Indicated possibility some latitude in definition of technicians and readiness to accept American technicians in a peculiarly U.S. field, but their general attitude was such as to cause us disquiet as to possibility exercising even minimum U.S. supervision of U.S. program.

(5)

Mission aware local national governments hold unrealistic views toward many government problems and that any precipitous weakening French influence and control might in near future lead to chaos playing into hands of Ho Chi Minh. Mission doubtful if local governments have administrative machinery capable most efficient handling aid but accepts this condition as inevitable calculated risk in complex situation. Mission reiterates this is delicate situation, and efforts to build up new governments should not undermine French prestige and morale here and in France.

(G)

Obstacles and difficulties innate in this complex and turbulent political situation must not be permitted to retard decision to allocate aid money required, to enter negotiations for aid agreements, to appoint end expedite

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