75. Memorandum From the Presidentʼs Press Secretary (Moyers) to the Deputy Under Secretary of State for Political Affairs (Johnson)1

At the private meeting between the President and Generals Ky and Thieu in Honolulu on Monday, February 7:

1.
The principals agreed that their economists would study again the question of the exchange rate and make recommendations for resolving the issue.
2.
The President pressed Ky and Thieu to implement the measures designed to improve the economic stabilization of SVN. Ky agreed to announce some of the measures “upon my return and no later than next week.”
3.
Ky said he intends to split the Ministry of Economics into a Ministry of Trade and a Ministry of Industrialization in order to weaken the present Ministry which “has too much power and is prone to corruption.”
4.
The President urged stronger support of the “Open Arms” program and Ky and Thieu agreed to place greater emphasis on it.
5.
The President strongly urged Ky to urge the defection of “three or four” prominent VC or VC supporters and use them on radio for prop-aganda and psychological purposes. He pressed Ky and Thieu to develop better contacts with the VC in order to gain increased understanding of the movement.
6.
President stressed specific implementation of economic, social, and political steps agreed upon during Bellʼs visit to Saigon in January and at the Honolulu Conference.
7.
The President urged a strong program aimed at the “very young members of the VC.”
8.
The President told Ky and Thieu they should study more carefully and consistently the criticisms and policies of anti-Vietnam Americans, including “journals like the New York Times and members of the Foreign Relations Committee.” The President said: “You need to know what our pressures are just as we need to know what yours are.”
9.
The President and the Secretary of State made strong appeals that “we all should list those reasons we think Hanoi believes it will win, and go after them one by one to change their mind about the prospects of succeeding.”
10.
The President urged further internal reforms in the South Vietnamese military. He urged Ky to spend more time in the countryside “acting like a politician instead of just a general.”

  1. Source: Department of State, Central Files, POL 27 VIET S. Confidential.