311. Telegram From the Department of State to the Embassy in Vietnam1

405. Ref Embtel 388.2 Agree your conclusion removal Quat and Oanh from GVN. Our main concern here is effect reorganization on U.S. opinion. Quat only recently visited Washington3 and made rather good impression. Oanh is, of course, well known in both domestic and international economic community, and his removal bound to have some adverse effect on confidence in management GVN economic problems. Realize risks in U.S. intervening too directly in support of individuals, but nevertheless you may wish draw on these points when you see Khanh as well as emphasize need for type of public explanation which best maintains impression of stability.

Rusk
  1. Source: Department of State, Central Files, POL 15 VIET S. Confidential; Immediate; Limdis. Drafted by Forrestal and cleared in substance with William Bundy. Repeated to CINCPAC.
  2. Telegram 388, August 11, received in the Department of State at 8:01 a.m., transmitted a lengthy report on a proposed governmental reorganization. Among the contemplated changes was the removal of Oanh and Quat, both of whom were regarded favorably by the Embassy in Saigon. (Ibid.)
  3. See Document 195.