851G.00/2–2747: Telegram
The Consul at saigon (Reed) to the Secretary of State
80. Chinese Consul General informs me Communist agents (including several agents recently arrived from Yenan) have been stirring up trouble among the thousands of Chinese made homeless by [Page 76] fires on outskirts Saigon and yesterday planned demonstration in front of his office with intention create incident with French police. He warned French and measures were taken to prevent demonstration but he believes this attempt is latest of what may be anticipated.
He had previously told me that undoubted increase in Chinese Communists due agents who worked upon dissatisfied elements, also that many students being converted to Communism to extent that he was tempted to ask schools be closed down. He added two, possibly three, Communist elements working in French Indo-China; first, French (only a few); second, Chinese (numerous); and third, Russian (but no confirmation) but that these elements did not appear to be working together very closely. In his opinion Vietminh party completely controlled by Communist elements whose idea of nationalist state is but prelude to an eventual Communist state.
While I agree in part I feel that Annamite Communism perhaps over emphasized as a present danger although it is definitely a potential one. My opinion Communist trained leaders took control of nationalist movement by advocating “throw out the French” but if Communist leaders removed nationalist movement would remain as such. Danger then would be Chinese imperialism and eventual taking over large part of trade.
Please repeat to Nanking, Paris.