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CONFIDENTIAL
area including North Vietnam and would make a
contribution commensurate with her resources.
15.
Mr. Stewart said he felt optimistic about
the Paris talks. The United States had shown
more flexibility recently. The new Administra-
tion prided itself on a more constructive
approach. The North Vietnamese had not
matched American de-escalation but the military
effectiveness of the North Vietnamese and
N.L.F. had declined. Behind the Paris talks,
the North Vietnamese were trying to estimate
hether opinion in the United States was such
as to persuade the United States Government
to
drop its interest in achieving a solution
in Vietnam, When it was understood in Hanoi
that the United States Government would not
pull out of Vietnam in order to get a settle-
ment, this realisation, added to the war
weariness in North Vietnam, Would bring about
a move towards settlement. In the meantime,
the Government of South Vietnam was in better
shape and its military performance was also
better. It had had sufficient confidence to
propose talks with the N.L.F. though there
had been no response. Both sides would like a
settlement but nd ther would give up completely.
When this was understood it would be possible
for moves towards a settlement to be made by
the Chairmen and others, It was tragic to
think that the solution, when it came, would be
on the lines proposed as long as four years ago.
One possible course would be to mut new life /into
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