751G.11/7–3052: Telegram
The Ambassador at Saigon (Heath) to the Department of State1
248. Rptd info Paris 58. From info obtained from Huu, Letourneau and other sources, I am finally able to estimate cost of Bao Dai to Viet budget (as yet unpublished) and to Viet people.
Under the govt of Nguyen Phan Long,2 Bao Dai recd from govt 4 million piasters monthly or roughly, at par of exchange, $200,000 a month. After Huu became PriMin, he raised Bao Dai‘s allowance to [Page 228] 7 million piasters per month ($350,000). According to Phan Long, Bao Dai also receives from Binh Xuyen organization a “gratification” of from 2–2½ million piasters per month out of profits for gambling in Saigon-Cholon for which Binh Xuyen now hold the concession. Binh Xuyen are also reported to have paid a similar monthly “gratification” to PriMin Huu. Govt of South Viet receives fixed percentage of these gambling profits, govt’s share amounting to around 200 million piasters (roughly $10 million) per annum. Binh Xuyen is reported to receive other certain revenues since until fairly recently it controlled and maintained order in Cholon by Fr permission. They were ousted from their overlordship of Cholon in November 1951 by Fr and Viet mil forces working together. Binh Xuyen are still understood, however, to receive some protection money from establishments in Cholon altho their mil and police duties are now limited to guarding the waterways and outskirts of Cholon. For latter service they are paid by Fr and Viet Treasuries.
Bao Dai is, therefore, apparently receiving from govt and Xuyen together from 110–120 million piasters a year (roughly $6 million).
In 1951, Letourneau tells me Bao Dai remitted abroad total of 800 million francs equivalent to 47 million piasters or roughly $2,350,000. An unknown but presumably relatively small portion these transfers went to upkeep of Empress and children who live well but with no imperial pomp in Cannes. On occasion, Bao Dai helps out Prince Buu Loc3 for extraordinary entertainment or propaganda expenses in Paris but I believe the amount of such assistance is very small. Bao Dai bought an old four-motor Liberator plane a few months ago but probably paid less than $200,000 for it. The bulk of Bao Dai‘s transfers are understood to have gone to Fr and Swiss banks, to real estate purchases and investments in France and Morocco. I have no info as to size of his bank accounts and investments but Letourneau tells me that Bao Dai, who was practically penniless in Hong Kong before 1949, now has respectable fortune abroad. I assume it now totals several million dollars.
If he transfers abroad something approaching 50 million piasters a year, he still has from his revenues some 60–70 million piasters to spend in Vietnam. His allowance of 7 million piasters from Viet Treas is not given as salary according to Huu but to cover his “social” and charitable program. While he is known to give fin assistance to his friends and members of imperial clan such expenditures according to Huu, are not an important item. Huu claims that in 1951 Viet Govt made contribution from govt funds to enable Queen Mother to live on more “adequate” basis at Hue. There is little staff in old Imperial Palace at Hue which was partially destroyed.
[Page 229]There are only a few servants in Hanoi Palace. Bao Dai‘s residence at Dalat is smaller than thousands of homes in New York area altho it does have extensive stables and an indoor tennis court. At Ban Me Thuot he lives in modest cottage altho he has recently built guest house and office quarters there for imperial cab. These last items may have come out of his own pocket but it is doubted they have cost more than two or three million piasters ($100 to 150 thousand). Bao Dai has one hunting lodge not far from Ban Me Thuot. We have no reports of large charitable donations by Bao Dai. He gave Catholic Bishops in north, once he told me, out of his own pocket some two or three million piasters. On one occasion Giao, then Gov of Central Vietnam showed Counselor Gullion a check for six million piasters which he had received from Bao Dai presumably for extraordinary expenses in connection with admin in Annam. Tho upkeep of Bao Dai‘s four planes is undoubtedly expensive but even allowing for charitable and quasi-governmental grants which we do not know about it is difficult for me to see how he is spending locally from 60 to 70 million piasters which are apparently available to him after banking abroad the better part of 50 million piasters. He receives a grant from govt for salaries and expenses of imperial cab and two million piasters month for admin of crown lands in southern plateau.
Letourneau tells me during 1951 he remonstrated with De Lattre over the amounts of monetary transfers Bao Dai was allowed to make. De Lattre replied that after all Bao Dai was chief of state and altho the amounts were excessive he did not think Fr cld object. It now appears that the seven million piasters ($350,000) transfer which Bao Dai requested for his forthcoming trip to France (see Embtel 61, July 8)4 was not to be from his own funds but was a demand on Tam for an extraordinary travel grant over and above his regular stipend of seven million piasters. Letourneau says he thinks that Tam cut down the amount to six million piasters but neither Tam nor Fr are willing to refuse transfer or travel grant. The only action taken by Fr was to refuse an additional request for transfer of one million piasters made by four members of Bao Dai‘s entourage who will accompany him to France.
This was turned down flat with the suggestion that they appeal to His Majesty.
His Majesty’s 84 million piasters a year from Viet treas approaches five percent of central govt receipts but if we add the “gratification” from the Binh Xuyen as income which might otherwise go into govt treasury it approaches about six percent of natl receipts. Tam is having difficulties in finding 20 million piasters for initial capital of his [Page 230] agrarian reform land bank. Three months of His Majesty’s reg allowance from the trees wld finance this project.
To my inquiry as to what action might be taken to persuade Bao Dai to reduce his expenditures—and transfers abroad—to a level seemly to circumstance that Vietnam was at war, bankrupt and maintained essentially only thru the mil and finan sacrifices of France and US Letourneau cld only suggest that I remonstrate with Nguyen De, chief of imperial cabinet.
This I intend doing and wld welcome the Dept’s suggestions or instructions.
Apparently Letourneau fears that if he remonstrates Bao Dai will threaten to abdicate since he now has sufficient fortune to live comfortably abroad. Letourneau said to me in this connection the “Bao Dai solution” was the only one but qualified the statement by adding “for time being” and remarking that if the monarchy fell it wld be Bao Dai‘s own fault. Disclosure of Bao Dai‘s stipend and investments abroad wld have a critical effect on prestige of monarchy and regime.