NND Project Number: NND 63316. By: NWD Date: 2011
TOP SECRET SENSITIVE
| Control: | 5026 |
| Rec'd: | APRIL 9, 1955 |
| 3:52 PM |
| FROM: | PARIS |
| TO: | Secretary of State |
| NO: | 4396, APRIL 9, 5 PM (SECTION THREE OF FOUR) |
PRIORITY
Diem's faulty handling of the problem has now resulted in the Binh Xuyen becoming a major force, the handling of which is out of hand, rather than a minor one which could have been used in the common effort if Diem had not bungled matters. Bao Dai now believes that the Binh Xuyen must go eventually but that there is no possible means of removing them from the scene under the stress of the present crisis by simply issuing a decree to that effect. The decree would be ignored and Bao Dai's authority lost. Diem had begged for full powers and had told Bao Dai that it was what the United States wanted him to have. Bao Dai had granted them against his advisors. Now Diem is incapable of governing even with these powers and wishes Bao Dai to do so for him by decree. If Bao Dai were to do so, he would be expending his authority for a cause winch is already lost, which he is unwilling to do. Diem has not the military or political strength to carry out his orders by force, and if he attempts to suppress the Binh Xuyen in that manner, it will lead to civil war which would in Bao Dai's opinion result in free Vietnam passing under Viet Minh control in short order. Even if it were possible to back the government to the extent of forcing the Binh Xuyen out of the Saigon police (presumably with outside aid from the French or the United States), it would result in Diem becoming "Emperor of Saigon" and with the rest of the country under control of local sect troops and, eventually, of the Viet Minh. De quoted Bao Dai's sources in Saigon as reporting Diem's strength as a "mockery".
After this prolonged expose, we asked De what Bao Dai thought should be done. He replied that the United States government should arrive at an immediate agreement with the French to create some form of governing body which could take over
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