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The U.S. and French governments would agree on a closing list, ask Bao Dai to summon representatives of various factions to Cannes and on the idea of French-U.S. Collins wanted Diem to reconstitute the federal government and get on with reforms, leaving the problem of Bao Dai to an elected national meeting.135 Diem followed this advice. 132 General Vy retreated to Dalat (and Bao Dai's Imperial Guards), then left the country. Meanwhile, Collins had left Saigon for consultations with Dulles. Lansdale implies Collins fell for this "propaganda" but he, Lansdale, did not. Ely was outraged at Diem's attitude. The Army and other people laid the blame (for the disaster between the government and the Binh Xuyen) on the French as a result of they may see French armored autos and troops in the streets evidently prepared for motion towards the Vietnamese.
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Sizeable sums were being supplied (by French) to Army officers and to sect leaders who were remaining loyal to Die, and to entice them into being not less than neutral. Secondly, the sects wished substantial authorities assistance for troopers compelled to leave the army. The sects had been quiescent however not quiet since Cao Dai and Hoa Hao ministers had joined the cabinet in September 1954. The tip of French subsides for sect armies in February shook them out of complaceny. We warned them that point was extremely quick, that the sects had been about to take motion by arms and that a peaceful solution would have to be launched immediately or the opportunity would be lost. SI - SKC shares have been sold down by greater than 10% over the previous few weeks in a flat market, pre-profit announcement and are by the way up strongly today on the announcement. The interview was carried out by email and Nigel completed it late last night so he was working like a trouper yesterday dealing with people like me. The end result was a record for the half 12 months of NZ$71 million on income up by almost 6% and price cutting on account of a capital raising last 12 months and other efficiencies.
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