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SENT TO: Amembassy SAIGON 695

Department continues much concerned at repercussions in France and elsewhere of illconsideredill-considered [sic] action Vietnamese National Congress Oct. 16. Although Department hopes and believes that statesmanlike action and utterances of Bao Dai, Tam on one hand and Laniel, Bidault on other will prevent damage from becoming irreparable, Department believes essential find ways revitalize concept mutuality of interest between France and Vietnam. Your continuing views and comments would be appreciated.

Department deplores atmosphere prevailing at National Congress, utterances and resolutions of which have jeopardized war effort upon successful outcome of which lives and property most members of Congress in effect depend. Failure of Congress to express appreciation of efforts and sacrifices of 300,000 Vietnamese fighting Viet Minh appears even more extraordinary than failure to express similar sentiments regarding essential French sacrifices and effort. Bao Dai statements have helped but insufficiently.

Mutuality of interest in outcome of struggle is major present factor which needs emphasis and Department confident everything possible being done Saigon and Paris.

In addition however there is problem of reconstruction which will arise when war is won PAREN if it is lost, neither French nor we will have any such problem ENDPAREN. That problem will include necessity for providing reconstruction of country devastated by eight years of war, restoration of communications and reintegration into national life of several hundred thousand soldiers. Vietnam will need French help for this purpose and France will perhaps continue to need our assistance. PAREN There is obviously no commitment which can be made on our behalf at this time. ENDPAREN. Department wonders however whether establishment of high level planning authority for purpose of laying foundations of reconstruction-rehabilitation effort might not be useful. Perhaps this authority should spring from Vietnamese initiative with French invited to participate. Prospect of fruitful cooperation in constructive work after war is won might have sobering effect

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