Office of the Historian

375. Telegram From the Embassy in Laos to the Department of State1

Vientiane, July 18, 1968, 0602Z.

7881. Ref: Vientiane 7717.2

1.
As preliminary step in my campaign to confront military leaders on issue of corruption and general question of transferring greater share of Lao fiscal and economic burden to shoulders Lao elite (reftel), I hosted stag dinner last evening for FAR military hierarchy.3 Occasion for this affair was visit to Vientiane by my former military attache, Col. Bill Law, now retired. All senior officers were present, except General Quan, who was in Bangkok, and General Bounpone, who elected remain Savanna-khet and is sending me letter explaining why he couldn’t make it. Americans present were service attaches, CAS station chief, political officers and requirements office (USAID) chief.
2.
I spoke at some length and with rather brutal frankness about the corruption I observed in this country and manner in which FAR protected and participated in it. I stressed the point that, in any postwar situation, this fact was bound to cause political resentment among population, who would therefore be much more susceptible to Pathet Lao brandishment. Although I made no threats and named no names, I cited specific cases of corruption which were well known to and identifiable by all present at table.
3.
Primary vocal reaction (probably pre-arranged) came from Generals Oudone and Kouprasith. Both their presentations were highly defensive, and Kouprasith’s was quite emotional. Neither attempted to deny prevalence of corruption nor FAR role therein, but only to explain its origins and plead for comprehension.
4.
I maintained firm position that I knew reasons for and origins of problems, but that I was dissatisfied with failure to remedy it. I said that King shared this view, had spoken to me at length on this subject, and had urged me to help institute tighter controls. I said that, in pursuit of this, my air attaché would be meeting with General Sourith today to propose better method of controlling use of transport aircraft.
5.
Comment: My primary purpose in this session was merely to expose depth and breadth of my concern and to worry these officers a bit by [Page 737] making it clear that we were fully aware of activities afoot. My secondary purpose was to give assurances to such honest Generals as Phasouk and Vang Pao (both of whom were present and expressed great private satisfaction) concerning U.S. official position on these matters, third purpose was to let this meeting be ventilated among the colonels (by Col. Thongphanh Knoksy who was also present) who let them know that they have our support in effort to make FAR shape up on these matters. It is, in one sense, unfortunate that Quan and Bounpone were both absent since they (or their wives) are among primary offenders. Quan had a legitimate excuse but Bounpone’s absence may be a little hard for him to explain. Both these gentlemen had received private warning of my mood and may have made shrewd guess that absence was the better part of valor.
Sullivan
  1. Source: Department of State, Central Files, POL 15–4 LAOS. Confidential. Repeated to Bangkok, Paris, Saigon, and CINCPAC.↩
  2. In telegram 7717, July 10, Sullivan described a “six hour seance” with Lao Minister of Finance Sissouk about Lao financial, economic, and corruption problems and Sissouk’s plans for reform. (Ibid., FN 1–1 LAOS)↩
  3. A memorandum of conversation of the dinner is in airgram A–315 from Vientiane, July 22. (Ibid., DEF 6 LAOS)↩