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396.1-WA/7-1553: Top Secret File

Franco-US Bilateral afternoon July 12 devoted exclusively Indochina.

I. ;

During lengthy presentation Bidault made it clear French intended interpret their Note July 3 to Associated States most liberally. Quote they could write their own ticket Unquote concerning Agenda in all fields and they would obtain what they ask for. Only   is continued membership French Union as without this concept Bidault positive French Parliament and public would not continue support war 12,000 kilometers from hone. Negotiations will take form three separate bilaterals presumably in Paris although this location not absolute condition, except perhaps case Cambodia where question prestige involved.

Secretary expressed deep gratification these far-sighted liberal political plans. Referring French Union concept he said, he understood it was not precise juridical concept but rather broad idea and we favored such concepts which hold different people together in different parts of world in security and fellowship, as no nation can be totally independent under present conditions.

II. :

Letourneau-Allard plan outlined to us in March progressing on schedule and only French desire is to accelerate its implementation. Referring to Navarre plan he defined it as:

a) Structural reorganization to create units better adapted for local war conditions and for offensive operations.

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