179. Letter From the Ambassador in Vietnam (Durbrow) to the Director of the Office of Southeast Asian Affairs (Anderson)1

Dear Dan: I am enclosing a copy of a Memorandum which Sherwood M. Fine, Chief, Cambodia, Laos, Vietnam and Thailand Division, ICA/W, prepared on a conversation which he had with Wolf Ladejinsky on July 11, 1960 during Mr. Fine’s recent visit here. Since Ladejinsky presented a particularly gloomy picture of the present Vietnamese political situation in this conversation, I think it is desirable for you and anyone else who reads this Memorandum to bear in mind that Ladejinsky was seriously ill at the time the conversation took place, and was in fact evacuated to Clark Field two days later with an illness which has not yet been diagnosed. In addition to the [Page 515] fact that his pessimistic picture may be partly attributable to his physical condition, I believe it also should be noted that Ladejinsky has been in a very low emotional state of good deal of the time within recent weeks, and his assessment, in that state, of Diem and the GVN should be accepted with some reserve.

As you know from our reports, we are also concerned about Diem’s political position. We have recommended various measures which we think he should take in his own interest to improve his standing in the country. There are signs that he is taking some of the steps we have suggested. For example, reports reaching us (including some from Ladejinsky himself) indicate that Diem is genuinely concerned about corruption and is taking some measures to try to improve that condition. He also indicated in the “Double Seven” speech on July 7 his intention to make intimate talks to explain his program to the people (our Despatch 20, July 11, 19602). He has, in addition, slowed down on the agroville program. Thuan has just informed me that the GVN is drawing up a realistic three year economic plan and is in the process of imposing new internal taxes, both of which are additional helpful signs.

It is true that there are other steps which we think Diem should take as well. We believe he should compensate peasant labor on Government projects (at least to a limited extent), and act to increase the price the peasant receives for paddy. We would also like to see him get rid of certain government personnel (such as Dr. Tuyen, the head of the secret intelligence service) whose activities have seriously damaged the prestige of the Government. We would also like to see him at least surface the Can Lao Party. We are continuing to do what we can to influence Diem, but our leverage on certain of these sensitive matters is quite evidently limited, particularly at this time when there is some question in Diem’s mind about continued U.S. support of him.

I am sending copies of this letter to each of the recipients of the enclosed Memorandum3 to insure that they are aware of the above factors in reading the Memorandum.

Sincerely yours,

  • Durby
  • Elbridge Durbrow
[Page 516]

[Enclosure]

Memorandum of a Conversation Between the Chief of the Cambodia, Laos, and Vietnam Division, International Cooperation Administration (Fine) and President Diem’s Adviser (Ladejinsky), Saigon, July 11, 1960, 9 a.m.4

Ladejinsky was ill in bed suffering from virus pneumonia but very eager to talk. While clearly seriously under par physically he noted sardonically that he was not in particularly good shape psychologically either. After discussing his health, mutual friends and the political situation in Washington, he moved on to an assessment of the current state of affairs in Vietnam.

Other than a brief, inconsequential talk with Ladejinsky in Washington last fall, this was my first conversation with him since my visit to Saigon in June 1959.5 His entire assessment and tone was so notably in contrast with his position of last summer that I was hardly prepared for what followed. Last June he had unburdened himself in an unreservedly apologist statement in support of the President’s position on political, security and economic matters. He had expressed strenuous criticism of ICA/W and the USOM position re Vietnam and urged that the U.S. abandon its reserved and often critical approach toward President Diem and his Government and go all out in supporting this embattled regime. U.S. aid was described as grossly inadequate, our officials as incompetent meddlers and our policy as completely lacking in appreciation that the GVN was a government on a wartime footing that was heroically struggling for survival while State and ICA temporized, ignored the hard reality of the current environment and the urgent pressure of events.

Obviously Ladejinsky had gone through a complete metamorphosis since our last serious talk. He expressed deep concern over the grave political deterioration since last winter and his profound disconcertment with President Diem’s failure to come to grips effectively with the mounting problems confronting his regime. Ladejinsky’s forthright indictment expressed preponderantly in a tone of sad resignation, occasionally succeeded by imperfectly repressed indignation, was based on the following judgements:

(1)
Diem was virtually under the complete control of his brother Nhu who was characterized as the “evil genius” dominating the scene.
(2)
Diem had become progressively isolated from the real state of affairs. Despite his frequent visits to the countryside he remained, [Page 517] in effect, shielded from unpleasant facts, isolated from the people and had virtually abandoned his claim to being a popular leader.
(3)
Diem knowingly tolerated corruption in his family and in high governmental circles though remaining personally free of such taint.
(4)
Diem, jealous of his uncontested hold upon the reins of power, presided over a government staffed largely by nonentities in key positions. His concern over potential political competition had produced a cabinet which with but two or three exceptions was distinctly third rate, intimidated and grossly dependent on the President’s whim.
(5)
There was absolutely no suggestion at this time that Diem was likely of his own accord to change his behavior in office. There was small likelihood that, other than as a result of firm outside pressure, the President would become a more effective and representative leader. Ladejinsky bemoaned the fact that this brilliantly talented leader had succumbed to arrogance, love of power and conviction of his infallibility. Ladejinsky stated that he still regularly saw the President, though their exchanges were invariably unharmonious. His influence had declined to virtually zero since last March. Ladejinsky was profoundly dismayed and unhappy and would have resigned his post soon thereafter but for his reluctance to be criticized for “abandoning a sinking ship”—given the low ebb of GVN affairs at that time. Ladejinsky at this point complimented Diem for his courage in the face of real adversity but added that the President probably had no real notion of the true seriousness of his position at the time.

In discussing possible alternatives to Diem on the political horizon, Ladejinsky stated that despite the President’s greatly reduced popularity there was no alternative individual or group at this time. Any real potential opposition had been destroyed by the President. Ladejinsky was particularly biting in his criticism of Diem’s refusing to tolerate even token opposition. The Army top command continued loyal but some criticism was to be heard from lower military officer levels.

Vice President Tho was the only possible alternative to Diem but he would not be willing to engage in any contest for power with the President. However, Ladejinsky believed that he would be willing to assume the Presidency if it were offered, in the event of a military coup. Ladejinsky expressed a very high regard for Tho and commiserated with him for the travail of his position and his horribly difficult situation vis a vis a President who refused to delegate any authority and trusted few of even closest political associates.

The one positive conclusion developed by Ladejinsky was the need for a strong U.S. policy re the Government of President Diem. Without such firm guidance the situation would undoubtedly progressively deteriorate. Ladejinsky emphasized that Diem had no place else to go but had to stick with us and retain the support of the U.S. He would bluster and fight back but the only promise for a more [Page 518] constructive and responsible course on the part of the GVN could be derived from a determined U.S. policy. We were not using our great potential leverage effectively. This was imperative if Vietnam was to be saved from its own errors. This was Ladejinsky’s real message.

We discussed the prospective resignation of Vu Van Thai, GVN Director General of the Budget and Foreign Aid Administration. Ladejinsky averred that perhaps U.S. representatives and he had erred in their uncritical praise and unstinting support since Thai had become insufferably arrogant and difficult to work with. If Thai in fact leaves the Government, Ladejinsky could not envisage any other GVN official who could work successfully in coordinating the planned BrookingsF–ord Economic Advisory Project. Ladejinsky indicated that the Government was distinctly lukewarm about the entire project and that it was difficult to assess its prospects without Thai. However, Ladejinsky did not dismiss the possibility of Thai remaining in office.

Ladejinsky stated that he had unsuccessfully repeatedly tried to convince the President that given the formulation of serious economic development plans it probably would be possible to secure greater U.S. assistance for developmental projects. He complained about the difficulty in interesting Diem in economic matters. Ladejinsky averred however that Vietnam’s economic prospects were bright indeed, if one could count on an intelligent economic program. (Incidentally, Vu Van Thai mirrored this view in another conversation.) Ladejinsky went on to say, however, that Vietnam’s real problems lay in the political field and that this and the security picture were the real problem areas.

We discussed Ladejinsky’s personal plans at some length. He has several very attractive offers awaiting his decision upon his scheduled departure. Ladejinsky definitely plans to quit his post at the latest by March 1961, the terminal period of his present contract. However, he believed he would be able to leave prior to that time even though the President had reacted to this piece of information by castigating Ladejinsky’s intention as akin to “treachery”. Ladejinsky plans to visit Washington this September for a variety of personal matters.

(The writer has known Ladejinsky since 1938 and was closely associated with him during their mutual residence in Japan throughout the Occupation period.)

  1. Source: Department of State, Vietnam Working Group Files: Lot 66 D 193, 16. VN 1960—Embassy Saigon. Secret; Official–Informal; Limited Distribution. The folder title also includes the following: “Official–Informal Misc. Letters.”
  2. Not printed. (Ibid., Central Files, 751H.11/7–1160)
  3. Copies of this letter were sent to Williams, Coster, the Office of the Special Assistant to the Ambassador, and William T. Sheppard, Regional Director of Far Eastern Operations, ICA/W.
  4. Secret.
  5. No record of this meeting has been found.