SOUTH VIETNAM'S DIEN HONG PALACE - THE UPPER HOUSE PARLIAMENT BUILDING -- WAS THE SCENE YESTERDAY (MONDAY) OF THE JOINT OPENING SESSION OF BOTH HOUSES OF THE NATIONAL ASSEMBLY. DURING THE SESSION, PRESIDENT NGUYEN VAN THIEU READ A STATEMENT IN WHICH HE SAID THAT SOUTH VIETNAM WAS READY TO DISCUSS THE TERMS OF A CEASEFIRE IF HANOI HAD THE "GOODWILL" TO HOLD SERIOUS TALKS.

PRESIDENT THIEU'S APPARENT READINESS TO CARRY OUT THESE DISCUSSIONS, IS TAKEN TO REPRESENT A VERY POSITIVE CHANGE OF LINE FROM HIS PREVIOUS NEGATIVE APPROACH TO CEASEFIRE NEGOTIATION SUGGESTIONS.

HE DID INSIST THOUGH, THAT TO REACH A REAL END TO THE WAR, THEY "MUST FIRST DISCUSS THE MODALITIES OF THE CEASEFIRE AND NOT HAVE AN UNCONDITIONAL CEASEFIRE FIRST". HE POINTED OUT THAT THIS WAS HIS RESPONSE TO THE INCREASING MENTION AT HOME AND ABROAD OF A POSSIBLE "STANDSTILL" CEASEFIRE AS A PRELUDE TO PEACE. HE ALSO FIRMLY MAINTAINED HIS POSITION REJECTING ANY IDEA OF A COALITION GOVERNMENT OR "LEOPARD-SPOT" PARTITIONING OF SOUTH VIETNAM.

ALTHOUGH PRESIDENT THIEU'S SPEECH WAS SEEN AS FAR LESS HAWKISH THAN MANY OF HIS RECENT STATEMENTS ON THE SUBJECT - HE DID STRONGLY MAINTAIN THAT, IF NORTH VIETNAM CONTINUED ITS STUBBORNESS IN THE BATTLEFIELD AND AT THE NOW 17-MONTH-OLD PARIS PEACE TALKS, THE SOUTH WOULD HAVE NO CHOICE BUT TO CONTINUE FIGHTING.