751G.5/7–253: Telegram
The Ambassador in France (Dillon) to the Department of State
30. Repeated information Saigon 3. During my conversation with Reynaud and Laniel this morning, Reynaud pointed out that Indochina situation must be seriously considered at Washington meeting. Review of situation must start completely de novo in view present situation in France and in Indochina.
[Page 632]On French side, the significant new development is the vote of 301 deputies for Mendes-France, who stood for negotiations with Ho Chi-Minh and immediate pull out of French Forces. In considering Indochina policy, Reynaud pointed out that Communist vote must be added to Mendes-France vote, giving a total of 406 or approximately two-thirds of Parliament in favor of or willing to accept immediate and more or less unconditional withdrawal from Indochina.
He also pointed out that if Laniel Government should fall, it would most likely be succeeded by a Mendes-France Government. Embassy comment: This is a distinct possibility but not by any means the only possible solution to next crisis. End comment.
Therefore, Reynaud felt that period during which present government is in power represents last chance for US and free world to turn Indochina situation around so that French people can foresee definite and early end to conflict.
On Indochina side, it is now clear that Letourneau plan for arming Vietnam battalions is utterly inadequate, and much greater and quicker effort is needed to turn the military situation around, in the short time available.
I cannot over-emphasize seriousness with which this situation is taken by French Government. Financing of additional Vietnam effort required can come only from us, and if we are not prepared to make this effort very promptly, French likely to take this as proof that we are not substantially interested in defense of Indochina. At this point even present French Government may feel obliged to institute negotiations with Ho Chi-Minh looking toward withdrawal. Reynaud specifically pointed out to me that present war in Indochina was preventing France from creating the necessary forces in Europe required to assure safety of France and Western civilization from Soviet attack.
It is not possible for me to estimate extra cost of military effort by Vietnamese forces required to assure early victory, but I feel certain that sum required will be very substantial.