Office of the Historian

64. Telegram From the Acting Secretary of State to the Embassy in Vietnam1

Washington, March 17, 1955—7:22 p.m.

4034. Saigon 3906 repeated Paris as 1046.2 We are impressed that your conversation with Diem indicates he has no concrete plan, [Page 130] at least none disclosed in reported conversation, to solve vexing problem of sects opposition.

We assume their threat will not remain at present level for long but must inevitably be sharply reduced or sharply increased. Tenor of reporting seems to support gradual withering away of their ability to cause trouble and their own realization of this, particularly following Bao Dai’s rejection of their emissary’s approach (Paris 3896 repeated Saigon 5663) would seem to support thesis of reduction their capability. Possibility of armed uprising as last desperate effort to survive we presume should not be excluded.

Internal irresolution highlighted by recent … reports, seems to indicate Minh’s policy of failure to support fully Diem’s desire to reduce sects by military action.

In view your judgement contained paragraph 8 reference telegram that Government will soon have to take some definite steps to resolve situation, request your views re most likely course action Government will adopt and reaction of sects.

FYI: During conversation with Fishel he stated on last night he in Saigon Diem told him Ambassador Tho being recalled from Japan at once handle problem of sects. Tho’s past knowledge French subsidies to sect leaders and their involvement in graft would enable him estimate most efficacious method dealing with them, Diem estimated cost of buying them off (all three) would be in neighborhood 35–40 million piastres. During visit to Japan en route home Tho told Fishel his estimate costs would be closer 50 million piastres but that an additional payment of 40 million would have to be made to Bao Dai if Binh Xuyen were to be deprived police power.

Fishel said he was taking this first opportunity report foregoing to you.

Hoover
  1. Source: Department of State, Central Files, 751G.00/3–1555. Secret. Drafted by Hoey and signed by Robertson. Repeated for information to Paris.↩
  2. Document 62.↩
  3. See footnote 2, ibid.↩