THE SITUATION IN SOUTH VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00472A001700060004-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 27
• Document Creation Date: December 22, 2016
• Document Release Date: July 12, 2012
• Sequence Number: 4
• Publication Date: June 23, 1965
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP79T00472A001700060004-4
Now Napo
WEEKLY REPORT
OCI No. 0625/65
Copy No.
94
THE SITUATION IN SOUTH VIETNAM
23 June 1965
INTELLIGENCE AND REPORTING SUBCOMMITTEE OF THE INTERAGENCY
VIETNAM COORDINATING COMMITTEE
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SECRET
GROUP I
Excluded from automatic
downgrading and declassification
Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP79T00472A001700060004-4
Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP79T00472A001700060004-4
N?ie Norro,'
THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP79T00472A001700060004-4
Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 : CIA-RDP79T00472A001700060004-4
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OCI No. 0625/65
Published by the Directorate of Intelligence
Central Intelligence Agency
THE SITUATION IN SOUTH VIETNAM
(17 June - 23 June 1965)
CONTENTS
Page
THE WEEK IN PERSPECTIVE iii
Maps, South Vietnam, following page
I. THE SITUATION WITHIN SOUTH VIETNAM 1
A. POLITICAL SITUATION
Ky and Thieu, installing n w military
government, outline its charter and
program (p. 1); cabinet has seven hOld-
overs and high technical-professional
level (p. 1); Ky plans vigorous diplo-
matic campaign, possibly breaking with
France (p. 4); foreign minister sets
Saigon' conditions for peace (P. 4);
Embassy's assessment of regimes pros-
pects (p. 5); Buddhist, Catholic reac-
tion (p. 6).
B. MILITARY SITUATION 7
Viet Cong activity dropped off last
week (p. 7); government operations also
down as ARVN commanders appear more
cautious (p.7); statistics (p. 8).
C. RURAL RECONSTRUCTION 9
Refugees approach half-million mark in
first five months of year (p. 9); bot-
tleneck in coastal shipping (p. 9);
ARVN stressing psywar ops as Chieu Hoi
figures remain high (p. 9).
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NW'
ECONOMIC SITUATION
Viet Cong activity brings shortages,
higher pricesv hoarding -0;11); worker
idleness, shortages caused by dis-
rupted transportation (p. 11); military
requirements boost labor costs (p. 11);
supplies for provinces backlogged
(p. 11); Viet Cong expand own economic
system (p. 12).
Page
11
II. THIRD COUNTRY DEVELOPMENTS 13
Ky government shows interest in
foreign relations (p. 13); South
Vietnam appoints Algiers Conference
advance party (p. 13); Thailand to
push GVN seating at conference
(P. 13); GVN welcomes Commonwealth
peace initiative (p. 14); peace
proposal planned for Algiers'Con-
ference (p. 14); Philippine Congress
yet to receive aid bill (p. 14).
III. DEVELOPMENTS IN THE BLOC 16
Fourth surface-to-air missile sight
spotted in North Vietn m (p. 16); US
aircraft destroy three Communist jets
in two battles (p. 16); bloc turns
down Wilson peace bid (p. 16); Libera-
tion Front opens drive for Afro-Asian
Conference seat (p, 17); Peiping may
use Vietnam issue to keep USSR out of
conference (p. 17); North Vietnamese
leaders stand by four-point peace plan
(P. 17).
ANNEX** SOUTH VIETNAM BATTLE STATISTICS
The Weekly Report on the situation in
South Vietnam is based on contributions from
CIA, DIA and INR edited and published by CIA
without final coordination. A fully coordinated
Monthly Report is dissemin ted the first Friday
of every month.
ii
SE CRE T
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S. 2.I %.
46000'
THE WEEK IN PERSPECTIVE
Saigon's new military government, with General
Nguyen Van Thieu in the role of chief of state and
Air Marshal Nguyen Cao Ky as premier, was formally
installed on 21 June. Although ultimate sovereignty
resides in a Congress of the Armed Forces, comprising
all general officers and senior army commanders,
actual policy direction and legislative power rests with
a 10-man Directory of key generals including Thieu and
KO "war" cabinet is made up for the most part of
young but qualified technicians, particularly in ministries
related to the economy. A key factor affecting the new
government's prospects for success may be the ability
of Premier Ky to shed his image of rashness and bravado
and to develop attributes of real leadership.
KO 26-point program of action, aimed at strengthen-
ing the war effort and fostering social justice, would
effect a radical departure from past political, social,
and economic patterns. While entailing a serious risk
of friction with entrenched political and economic
interests, the program's heavy demands on the coun-
try's limited administrative talent, both in the control
of manpower and of economic resources, poses a greater
danger of internal dislocation and chaos.
While both the Catholics and the Buddhists appear to
be intrigued with the prospect of revolutionary change,
both groups have serious reservations with one or another
of the key generals, and their attitudes are at best ones
of watchful waiting.
Despite the easing of the war last week, there are
indications of further Viet Cong pressure designed to
destroy government forces. Operations to be expected
include Viet Cong attacks in more-than-battalion strength
111
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against isolated government forces and probably against
a district or provincial capital, as well as ambushes of
friendly forces moving along lines of communication or
arriving in helicopter landing zones.
iv
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