299. Telegram From the Embassy in Vietnam to the Department of State1
423. Had talk with Thuan today in his Office at Presidency. After we had covered wide range of subjects, I said I had inferred from his remarks that there was nothing to the rumors that he had resigned from any or all of his jobs because of Presidentʼs displeasure concerning the alleged lottery scandal.2 Thuan directly confirmed that he had neither resigned nor been asked to resign. He said when he returned from America and Europe on October 5, he had immediately heard stories that he was in disgrace because of involvement in a lottery scandal. He recalled he had called me the next day and in response to my questioning as to how he was, he had said, “I am trying to find my way around”. He said he meant that he had not at that time seen President Diem and didnʼt know what this was all about. He said Ngo Dinh Nhu had told him that apparently his enemies were out to get him. I asked who these enemies were, and he said a number of non-Communist Vietnamese who thought he had become too powerful and, of course, the Viet Cong. He mentioned in the former category a number of businessmen and professional men who, he said, for reasons of their own, opposed the 57th tax, the stricter enforcement of income declarations and collections, the draft of officers and doctors, and other measures which he had advocated.
Thuan said he went to the President directly as soon as he could get to see him and asked him bluntly whether there was any basis to the rumors that the President was embarrassed or irate because of any actions of his or his wifeʼs; if so, he offered his resignation. Thuan said President Diem said there was no basis to the rumors that Thuan was in disgrace, that he had had the matter personally investigated and was convinced that Thuan had nothing to do with it, and that he wished him to continue in his present duties. Since then, as was evident from Thuanʼs previous discussion with me on matters recently discussed with Diem, he has been active in all phases of his previous work.
I told Thuan I was delighted to hear this and asked whether this applied to other members of the Cabinet, about whom there were similar rumors. He said that to his knowledge it applied to Vu Van Mau, Nguyen Luong (Minister of Finance), and Nguyen Van Luong (Minister of Justice). I asked about Dr. Tuyen and Minister Ngo Trong [Page 693] Hieu. He said he did not know about Dr. Tuyen, since he was not a Cabinet minister and was always involved in “secret undertakings about which I know little”. He also said he had not heard anything about the present status of Hieu.
While Thuan did not state specifically that there was no irregularity or scandal concerning the national lottery (nor did I ask him this directly), he did state that the rumors that his wife had been involved and arrested were absolutely false and the rumor that Madam Duc Loi was an aunt of his was absolutely false. He said that he did not know her. Thuan added that it seemed that every time he went away there was a concerted attempt to cut him down, mentioning his trip to Formosa in February and the fact that before he could get back after the bombing there were rumors afloat that he was responsible. He also remarked that all of those who were allegedly implicated in this affair were northerners, who, he implied, were special targets of other Saigonnaise factions.
One other point stated by Thuan: he said an important telegram he sent to President Diem after his talk with President Kennedy on Laos recognition problem and crop defoliation had never been received by Diem or by Nhu. The telegram had been received by Vu Van Mau, who had sent it in two copies, as is customary, to President Diem and to Counselor Nhu, but neither had received it. This indicated to his mind that someone in the palace was either negligent or untrustworthy.