1949 agreement recognizing Vietnam's independence
The Élysée Accords was a treaty recognizing independence of Vietnam from France, as an associated member within the French Union. The Accords included one main letter and two extra letters signed at the Élysée Palace by Vietnamese "Emperor" Bảo Đại and French President Vincent Auriol on 8 March 1949. Vincent Auriol also signed as French Union's President. It abolished the Patenôtre Accords and French colonialism in Vietnam (1883-1949). It was signed after a period of negotiations between France and the anti-communist faction of Bảo Đại when France lost hope of peace with the communist faction of Hồ Chí Minh, in accordance with the principle of "independence" stated in Hạ Long Bay Preliminary Treaty on 5 June 1948. It led to the establishment of the State of Vietnam, predecessor of the Republic of Vietnam (South Vietnam); opposing communist government. With it, France abolished Tonkin and Annam protectorates, and allowed Cochinchina colony to join Vietnam. It took effect when Bảo Đại and the French High Commissioner in Indochina exchanged letters at City Hall in Saigon on 14 June 1949. It received ratification by the French National Assembly on 29 January 1950, and was signed by French President Vincent Auriol on 2 February.
This agreement was signed in the context of the First Indochina War between France and communist Viet Minh, and the Cold War between the U.S. and U.S.S.R., based on French progressive declaration 24 March 1945 on Indochina and France ruled by the left since late 1946. That March 24 Declaration was based on what had been achieved at the Brazzaville Conference in early 1944 in gratitude for colonial soldiers' service to Free France during World War II, whereby political entities in French Indochina would be granted a large degree of freedom and democracy. The French Union was created as an international organization in December 1946 to replace the old French colonial empire, in the context of decolonization. However, initially the colony of Algeria was not included in the territories that would gain full independence because it was an internal part of France. After World War II, both the U.S. and U.S.S.R. as two new superpowers opposed colonialism. The goal of the capitalist U.S. after World War II was to prevent communist international of the U.S.S.R., and end both colonialism and communism. The U.S. still supported national self-determination, but the independence of colonial peoples did not mean communist states. The United States did not want communists to dominate Asia under the guise of "national liberation". The U.S. started to support Bảo Đại on 17 January 1949 because Chinese communists had a large advantage in the civil war. The French communists fully supported their comrades in Vietnam and opposed the French National Assembly's ratification of the treaty, but failed. The accords as a legal corridor for complete independence for Vietnam stated that the country had a wide autonomy and could conduct its own foreign affairs, control its finances and have an army; although, the agreement fell short of granting complete independence right away. Despite the communists' accusations, the French goal was to gradually grant self-government to a multi-component and non-communist Vietnam based on the gradual growth of the indigenous state apparatus as long as French economic and cultural interests were guaranteed through the French Union, but the process was accelerated due to France's disadvantage in the war. Vietnam (State of Vietnam) gained the full independence from France to become a completely sovereign state within the French Union on 4 June 1954, partly due to French war disadvantages. One month later, the French accepted their complete defeat, and the State of Vietnam lost north of 17th parallel to the communists with an agreement that it opposed and did not sign. Its successor, the Republic of Vietnam, withdrew from the French Union on 9 December 1955.
The agreement was important for the U.S. moving from neutrality to supporting the French in the war. Vietnam had been gradually granted autonomy after the accords. The First Indochina War became part of the Cold War and began to take on civil war elements. The United States helped France and pro-French state of Vietnam fight communism while also supporting the independence of new Vietnam. Within the framework of the French Union, two other countries of Indochina, Laos and Cambodia, were also granted independent status as associated states. The three countries formed a common confederation until 30 December 1954. This treaty made Vietnam a semi-constitutional monarchy headed by Bảo Đại with no constitution and no parliament, and whether it became a republic or not was subject to a referendum. The monarchy would be overthrown to become the First Republic with a fraudulent referendum of Prime Minister Ngô Đình Diệm on 26 October 1955, and a parliament and constitution would be created exactly one year later after Constitutional Assembly elections, in the context of the Vietnam War against communism.
Content.
According to the Accords; Vietnam was an "independent" member country within the French Union, and was "freely" associated in "equality" and friendship with France. This agreement recognizing Vietnam's independence included three letters: 
1) Letter from the President of the French Republic (France) and President of the French Union, Vincent Auriol, sent to Vietnamese Emperor Bảo Đại, talking about issues of unification, diplomacy, internal affairs, justice, culture, military, economy, and finance of Vietnam within the French Union. This was main letter. 
2) Vietnamese Emperor Bảo Đại's letter sent to the President of France and the President of the French Union, confirming receipt and agreement on the content of the above letter.
3) Letter from the President of France to Vietnamese Emperor Bảo Đại supplementing, at Bảo Đại's request, points related to the issues of unification of Vietnam and diplomatic issues, especially the exchange of ambassadors.
This independence agreement was based on the terms of the 1948 preliminary agreement, in which Vietnam pledged to guarantee the constitution and respect democratic principles. The agreement gave Vietnam a high self-determination with French colonial regime here abolished and this Vietnam can be compared with independent countries within the British Commonwealth, established in 1949; though fell short in many aspects. In fact, the countries such as Canada and Australia also only gained full independence from the United Kingdom in 1982 and 1986 respectively. France not only abolished two French protectorates in Vietnam and allowed Cochinchina to return to Vietnam, France also abolished their three concessions in those two protectorates (Hanoi, Haiphong, Da Nang). Vietnam was empowered to control its own finances and the path was paved for the creation of the Vietnamese National Army, predecessor of the Republic of Vietnam Military Forces, on 8 December 1950. The French Government was prepared, at the request of the Government of Vietnam, to act as an intermediary for the opening of Vietnamese consulates in countries where Vietnam considered it would have special interests. Vietnamese consuls carried out their activities: in countries where Vietnam had a diplomatic mission, under the direction and responsibility of the head of this mission. The French Associated States including Vietnam were allowed to establish diplomatic relations with a limited number of foreign capitals, mainly Washington, London, Rome, and Bangkok. Vietnam had the right to establish and manage its own national budget. Vietnam was granted the right to appoint diplomats to the Republic of China, Thailand, and the Holy See, however Vietnamese diplomacy still depended on France. In general, the French arrangement afforded three Indochinese countries a limited degree of internal and external sovereignty (for example, they were allowed to enter into diplomatic relations with a small number of countries), but for the most part reserved for France effective control over foreign relations, as well as military, judicial, administrative, and economic activities. They were three associated states and the concept of "associated state" was originally used to refer to arrangements under which Western powers afforded a (sometimes very limited) degree of self-government to some of their colonial possessions after the end of World War II, based on the 1941 Atlantic Charter between the United Kingdom and United States that France later also supported. Even before World War II, the United States abandoned colonialism by granting self-government to the Philippines in 1935 with a roadmap to independence, completed in 1946. The fact that Vietnam was allowed by France to establish its own diplomacy helped its independence be recognized by the United States on February 3, 1950.
Vietnam was not yet fully independent and the Bảo Đại's government continued to demand more autonomy from France. Vietnam had the right to own its armed forces to take charge of maintaining order, internal security, and national defense. The role of the Vietnamese army in the First Indochina War was particularly obscure. However, the French Army in Vietnam was no longer as a colonial and invading army, but as an army of the French Union, helping to fight communism and protect Vietnam, an ally of France and a member country within the French Union. Vietnam's defense budget would be borne by the Vietnamese government. The Vietnamese army would be composed of Vietnamese under the command of Vietnamese officers; French instructors and technical advisers would be placed at the disposal of Vietnam. The Vietnamese cadres would be trained by Vietnamese military schools and, possibly, by French schools where they would be accepted without any discrimination. During wartime, the Vietnamese army would fight as part of the French Union army, with one of the general staff members being Vietnamese.
French cultural interests in Vietnam were guaranteed by this treaty but on the basis of equality and cooperation between France and the three Indochinese countries. Vietnam was recognized as the owner of the real estate and land of the Pasteur Institute in Hanoi, Northern Vietnam. French schools in Vietnam applied the programs currently in force in France; a class on Vietnamese history and civilization was required to be taught there. Vietnamese students were free to apply to study in French schools in Vietnam. These schools were required to open a Vietnamese language class for Vietnamese students.
Vietnam would establish a customs union with the other Indochinese countries. There would be no customs barriers between these countries. No taxes would be collected at their common borders, common tariffs would apply to import and export activities within the Union. The Indochinese "piastre" would be in the French "franc" zone. However, the exchange rate between the piastre and the French franc would not be fixed and may change according to economic conditions. However, this exchange rate could only be changed after consultation among the Indochinese member countries. Vietnam would have a common monetary union with the Indochinese countries. The only currency in circulation within the territory of this monetary union would be the piastre issued by the Indochinese Institute of Issue. The Institute of Issue could issue different types of currency for Cambodia, Laos, and Vietnam. The Government of Vietnam could increase taxes and fees, and could introduce new taxes and fees. Vietnam gained the right to enjoy all budget revenues within the country.
Regarding domestic sovereignty, France granted full authority to Vietnam. The French and Vietnamese were equal citizens within the French Union. Each Government retained ownership of its archives. Vietnam enjoyed full and comprehensive jurisdiction in civil, commercial, and criminal courts throughout the country.
The agreement left many gaps that required the two countries to continue negotiating to reach additional agreements. The autonomy and rights of ethnic minorities must be respected while the supreme interests of Vietnam were still guaranteed. The French Government undertook to present and support Vietnamese candidates whenever they fully satisfied the general conditions laid down by the Charter of the United Nations for admission to this organization. Despite still depending on France, the establishment of Vietnamese diplomacy that was no longer represented by France was a turning point because diplomacy is something that every sovereign state needs. Vietnam had the right to freely appoint its representatives to the Supreme Council of the French Union. Vietnam was qualified to negotiate and sign agreements with countries other than France relating to its own specific interests.
French capitalists could freely invest in Vietnam when the national interests of Vietnam were guaranteed. Vietnamese citizens in France and other places of the French Union, French citizens and citizens of other places of the French Union residing in Vietnam enjoyed the same freedom of residence as natives within the framework of the Law