215. Memorandum From the Executive Secretary of the National Security Council (Smith) to President Johnson1

SUBJECT

  • Ky and Lodge Discuss Corruption in Vietnam

Prime Minister Ky in a long discussion with Ambassador Lodge2 laid on the table the great problem he was having with two senior officers, Generals Co and Quang. Both senior and young officers were asking that the two generals be removed from office because of the corrupt conditions which existed in the areas that they control. Ky said that General Quang opposed the sending of U.S. troops to the IV Corps area because they would interfere with his corrupt practices.

Ambassador Lodge replied that his raising the matter of corruption was indeed a coincidence. Earlier in the day he had decided not to raise this subject with General Ky because he did not want to urge on Ky a step which might precipitate a coup.

Ky said that the people of Vietnam want to get rid of corruption and so did he, but that the generals he would have to act against would seek support from others to prevent him from removing them. He had decided not to do anything before the September 11 elections but to think very hard about it immediately thereafter.

Ambassador Lodge replied that men in positions of high responsibility led pretty bleak lives in all countries, but that in this country he had the added problem of leading it out of the middle ages into constitutional [Page 590] democracy, and there were still some people like Co and Quang desperately fighting a rear guard action and it was bound to be very unpleasant.

Ambassador Lodge believes that the decision to do nothing about corruption until after the election is wise. There is no doubt in his mind that there is widespread disgust with corruption and that it shakes confidence in the government and in the integrity of the elections. He believes that reports of corruption will get into the U.S. press, particularly in connection with the sale of U.S. supplies to the Viet Cong. He is convinced that the problem will have to be dealt with at some time or other but that it ought to be done quickly and surgically.

Secretary Rusk replied3 to Ambassador Lodgeʼs request for advice by saying that the Ambassador was quite right in warning about the dangers of precipitating a coup and thus risking the undoing of forward steps in the political and economic field so laboriously brought about over the past year. He added that the unity of the military is an indispensable factor in maintaining sufficient stability and continuity in the government of Vietnam to permit it to carry on its military fight as well as essential political and economic actions. He recognized that the problem of corruption is a fundamental stumbling block in the way of constructing a government in South Vietnam which could defeat the Viet Cong in the political realm.

Secretary Rusk agreed that Generals Co and Quang should go when this can be managed without endangering government continuity. He believes that the sooner this can be accomplished the better but doubts that it can be carried off before elections. He asked the Ambassador to assess the line up of military leadership in the Co-Quang issue.

Ambassador Lodge replied4 that the first thing that must be done is to gather all the facts on Co and Quang. They would be confronted and asked to go abroad quietly and if they refused they would be forced to leave. The military directorate would have to be lined up by Ky prior to any such action.

The embassy is assembling in detail how it thinks the military leadership would react to a confrontation with Co and Quang.

Bromley Smith
  1. Source: Johnson Library, National Security File, Country File, Vietnam, vol. LVII. Secret; Sensitive. The source text is marked with an indication that the President saw the memorandum.
  2. Lodge reported on the discussion in telegram 3842, August 18. (Department of State, Central Files, POL 27 VIET S)
  3. Rusk replied in telegram 32309, August 20. (Ibid.)
  4. Lodge replied in telegram 4107, August 22. (Ibid.)