\TE: EJBeigel:tk 	S/S #13323 
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m 	DEPARTMENT OF STATE 
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:MEMOBAN~UM OF CONVERSATION ..rt:Lry;_'''°'~"'5 QfF\Cf.
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SUBJECT: L~eI-from General Franco on Vietnam 	DATE: August 20, 1965 TIN.LE: 4:15 p. m.
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PARTICIPANTS: 	Th~~~srr Arh1'.>assador 
Mr. Perrez-Urruti, First Secretary, Spanish Embassy 

The Secretary Mr. E. J. Beigel, WE 

Copies to: . 	S/S cc.. FE 
EUR CIA 
S,tP DOD 

G .-:. White House G/PM AmEmbassy MADRID INR/OD AmEmbassy SAIGON 
The Spanish Ambassador called on the Secretary to deliver a personal letter from General Franco to the President. General Franco's letter was in response to the President's letter of July 26 on Vietnam. The Ambassador said that a second letter of August 6* from the President was being sent to General Franco, who is vacationing on his yacht, and that a response will be forthcoming at a later date and will be favorable. 
After reading the Spanish Embassy translation of the letter, the Secretary said that he would like to make a few observations that the Ambassador may wish to ri=iport to his Minister. 
The Secretary said that we look upon this problem in a somewhat different context. He said that not only the other side can seek a military solution. If Peiping and Hanoi wish to push militarily, not politically, into South Vietnam, we will meet them with military action. He pointed out that our cumulative economic aid to South Vietnam has been greater than our military aid, but the primary problem now is to confront the military actions of the other side. 
* This undoubtedly refers to an Aide Memoire dated August 6 on this subject delivered to the Spanish Foreign Office by Embassy Madrid.. 
CSN¥IDENTIAB .. GROUP 3 Downgraded at 12-year intervals;
DECLASSIFIED 
E.O. 13292, Sec. 3.4 	not automatically declassified. 
State Dept. Guidel:nes By~, NARA, Datef3.j ~..o~ 

CONEJDEN~L 
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The Ambassador asked for our evaluation of Ho Chi Minhrs aspirations. The Secretary said that the evidence indicates Ho wants all of the penninsula under his control: he would not give any assurances to Sihanouk regarding Cambodian territory, the 6, 000 men that he left in Laos have increased to 13, 000, and a British planner learned in Hanoi that North Vietnamts next Seven-Year Plan is being formulated on the assumption of a total population--0f 50 million. 
The Ambassador said that he would report these observations to Madrid. He said that the Spanish Government wishes to keep the Franco letter confidential. 
' CQNFID@T!AL