THE SITUATION IN SOUTH VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00826A000800030001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 25
• Document Creation Date: December 15, 2016
• Document Release Date: June 1, 2004
• Sequence Number: 1
• Publication Date: June 1, 1966
• Content Type: REPORT

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OCI No.0376/66
Copy No. 13 5
WEEKLY REPORT
THE SITUATION IN SOUTH VIETNAM
INTELLIGENCE AND REPORTING SUBCOMMITTEE OF THE INTERAGENCY
VIETNAM COORDINATING COMMITTEE
DIA review(s) completed.
ARMY and DOS review(s) completed.
SECRET
GROUP 1
Excluded from automatic
downgrading and declassification
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THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 1.8, USC, SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
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This will be the last edition of the Weekly Re-
port issued under the aegis of the Vietnam Coordin-
ating Committee. The next edition of the report,
which will be published on 8 June, will be produced
by the Directorate of Intelligence, Central Intelli-
gence Agency. The report will be focused on internal
political, economic, and social developments in South
Vietnam. The statistical charts on military activity
in South Vietnam, which are now a feature of the re-
port, will henceforth be appended on a weekly and
monthly basis to the daily memorandum, The Situation
in Vietnam, issued by the Central Intelligence Agency.
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OCI No. 0376/66
Published by the Directorate of Intelligence
Central Intelligence Agency
THE SITUATION IN SOUTH VIETNAM
(26 May - 1 June 1966)
THE WEEK IN PERSPECTIVE
Map, South Vietnam, facing page
1. THE SITUATION IN SOUTH VIETNAM
A. POLITICAL SITUATION
Buddhist/government discussions sug-
gest reconciliation (p. 1); Buddhists
may be willing to soften demands (p. 1);
GVN to expand Directorate 6 June (p. 1);
ARVN troops may move against Hue dissi-
dents (p. 2); US Consultate in Hue sacked
and burned (p. 2); Election law drafting
committee makes significant gains (p. 2);
Proposed status for candidates (p. 2);
Economic Situation: Retail price index
up seven percent with rice and vege-
tables the principal causes (p. 2); Rice
subsidy proposed (p. 3); New corporation
tax favoring outside investment proposed
(p. 3); Exchange rates are given (p. 4);
Saigon port cargo down 10 percent (p. 4).
Enemy-initiated activity decreases (p. 5);
Weekly statistics are given (p. 5); Govern-
ment quells "struggle" group in Da Nang
(p. 5); Favorable loss ratio in III Corps
operations (p. 6); Stratofortress missions/
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targets listed (p. 6); Results of
tactical sorties reported (p. 6); Com-
munist activity in I, II, III, and IV
Corps recapitulated (p. 8).
Map, Transportation Routes, facing page 9
C. REVOLUTIONARY DEVELOPMENT 10
USAID officials praise aspects of revo-
lutionary development programs (p. 10);
Land reform program in An Giang Province
(p. 10); Chieu Hoi returnees include PAVN
and Viet Cong troops, district and village
political leaders (p. 10); Refugees average
20,000 daily (p. 10); Most are concentrated
along I and II Corps coast (p. 11).
Map, North Vietnam, facing page
II. DEVELOPMENTS IN THE BLOC
New Communist propaganda program aimed
at stiffening insurgent morale (p. 12)
III. THIRD COUNTRY DEVELOPMENTS
GVN ambassadors meet in London (p. 13)
Cambodia seeks financing for ICC inspec-
tion teams with US paying part of the
bill (p. 13).
ANNEX: South Vietnam Battle Statistics--
Personnel Losses (Weekly)
South Vietnam Battle Statistics--
Incidents and Attacks (Weekly)
(The Weekly Report on the Situation in South
Vietnam is based on contributions from CIA, DIA,
and INR; it is edited and published by CIA with-
out final coordination.)
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THE WEEK IN PERSPECTIVE
Meetings between members of the Ky regime
and the Buddhist leaders in Saigon were initiated
this week amid a rash of Buddhist self-immola-
tions and continuing violence in Saigon and in Hue.
There were indications before the talks began that
the Buddhists might welcome at least a temporary
reconciliation with the Ky regime in view of their
failure to stir large antigovernment demonstrations,
and the partial loss of military strength among the
"'struggle" elements in I Corps.
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\ NORTH Dong Hoi
~Quang Tri
'.ft
fP Saravane
- vLong
Can Tho
SOUTH VIETNAM
CURRENT SITUATION
f) 25 50 75 100 M~1es
n 25 5(' 75 1. (K~lorrieters
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A.
A. POLITICAL SITUATION
1. Meetings between members of the Ky regime
and the Buddhist leaders in Saigon were initiated
this week amid a rash of five Buddhist self-immola-
tions and continuing violence in Saigon and in Hue.
Antigovernment students in Hue burned the USIS li-
brary on 26 May; after its evacuation, the US Con-
sulate was burned on 1 June.
2. The Buddhist/government meetings were ap-
parently arranged by Thich Tam Chau, following his
return from a conference in Ceylon. Chau, long a
voice of moderation in the Buddhist councils in Sai-
gon, apparently is engaged in a contest for authority
in the Buddhist Institute with extremist monks under
the influence of Thich Tri Puang in Hue.
3. Following the second meeting between the gov-
ernment and the Buddhists, militant monk Thien Minh
was victim of a grenade attack by unknown assailants
in Saigon. The attack could serve to harden the Bud-
dhist position. So far, however, the Buddhists have
reacted moderately to the assault, apparently in an
effort to keep it from jeopardizing their discussions
with Ky.
4. There were indications before the talks began
that the Buddhists might welcome at least a tempor-
ary reconciliation with the Ky regime in view of
their failure to stir large antigovernment demonstra-
tions, and the partial loss of military strength
among the "struggle" elements in I Corps. It ap-
peared that they would be willing to abandon their
demands for the immediate replacement of Ky and Di-
rectorate Chairman Thieu, possibly settling for some
formal Buddhist representation on an expanded Direc-
torate and for a reaffirmation of the government's
intent to hold the elections as scheduled in Sep-
tember.
5. The government now has announced that it
will expand the Directorate on 6 June, by adding 10
civilian members. Buddhist leaders have publicly
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voiced agreement with this move, casting it as a
government concession to their position. It is far
from clear, however, whether the present stage of
talks between the government and the Buddhists will
effectively serve to calm the crisis. Violence
could again flare up at any time. The Buddhists
are reportedly ready to stage a renewal of the immo-
lations, should they deem it necessary.
6. A government military move against the
dissidents in Hue could also spark renewed agitation
by the Buddhists in Saigon. Reportedly, progovern-
ment elements of the ARVN 1st Division have been
ordered to move against the rebels in Hue after ele-
ments of the division sympathetic with the dissidents
have left the city. Hue is currently in a state of
anarchy with the student "struggle" forces apparently
acting independently of Tri nuang. On 1 June, the
students forced their way into the US Consulate,
burned it, and left other buildings on the consulate
grounds virtually destroyed.
7. In Saigon, the election law drafting committee
has made significant gains in preparation for the
September assembly elections in spite of the Bud-
dhist boycott of the sessions. Candidates will run
as independents rather than on a slate, thus dimin-
ishing organized party or group influence on a na-
tionwide basis. The provinces and autonomous cities
will be the basic electoral units, but one additional
seat will be allotted for each 100,000 persons; thus
ensuring that the heavily populated delta will not be
outrepresented by the more numerous northern provinces,
where the Buddhists are 'strongest. Minorities will
be given special representation within the province
quota but military candidates will not be guaranteed
any set block of seats.
8. Retail prices in-Saigon continued to rise for
the fifth consecutive week, and the over-all USAID re-
tail price index was seven percent above a month ago.
The increase in prices for the week ending 23 May
was caused mainly by a rise in the prices of rice
and vegetables. The price of rice has been increas-
ing for several weeks because of lagging deliveries
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from the delta. Vegetables have not been arriving
in normal quantity from Dalat but the reasons for
the delays are still obscure. Although the prices
of some imported commodities rose, the price of
wheat flour, cement, and newsprint fell, evidently
because of more rapid clearance through the port
of Saigon as tighter regulations became effective.
9. On 26 May the US economic counselor called
on Minister of Economy Thanh to discuss the continued
rise in rice prices. The US Mission again proposed
the sale of imported rice at a subsidized price.
Although acknowledging the rapid increase in the
price of rice, Thanh questioned the source of money
to cover such a subsidy and whether the subsidy
should apply only to Saigon or to the entire coun-
try. The Mission assured Thanh that there were suf-
ficient counterpart funds available to cover the
cost of the subsidy and told him that it would be
desirable to commence the scheme in Saigon and ex-
pand it to other areas later if necessary. Thanh
appeared less negative about this proposal than
heretofore and suggested that Ambassador Lodge
raise the issue with Ky,whose approval would be
reauired especially with regard to the expenditure
of unprogrammed counterpart funds to cover the sub-
sidy. Ambassador Lodge intends to propose to Ky a
subsidy limited to the Saigon area. According to the
US Mission the cost of such a subsidy would be less
than 200 million piasters for the remainder of 1966.
10. Minister of Finance Kien said on 24 May that
he had signed a new tax law which would tax foreign
corporations 1.2 percent of capital invested in South
Vietnam instead of 1.2 percent of total corporation
capital as has been the case. The GVN has stated on
many occasions that the application of this percent-
age to worldwide capital was a mistake that derived
from an old French law designed to keep out foreign
banks. The new law has been passed to Ky for sub-
mission to Chief of State Thieu for signature and
enactment into law. Meanwhile, the two US banks--
Chase Manhattan and Bank of America--which have re-
ceived GVN approval to open branches in Saigon, are
delaying opening until this matter is clarified.
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11. Saigon free market prices for dollars and
gold rose to new highs. On 23 May, the price of
$10 bills was up 10 piasters to 186 piasters per
dollar and that of $10 MPC (scrip) up 11 piasters
to 131 per dollar. Gold rose to 272 piasters per
dollar compared with 249 a week earlier. Dollars
and gold rose further to 188 and 279 piasters per
dollar, respectively, on 27 May. In Hong Kong the
piaster-dollar cross rate, following upward trends
in Saigon with a time lag, rose 2 piasters to 160 on
21 May. Again, it appears that fear of devaluation
coupled with political and economic uncertainties
are responsible for these sharp increases.
12. During the month of April, 332.2 thousand
metric tons of commercial and military cargo were
discharged through the port of Saigon. This amount
is roughly 10 percent below the amount of cargo dis-
charged in March and also 10 percent below the
average monthly discharge during the first quarter
of 1966.
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B. MILITARY SITUATION
1. Enemy-initiated activity decreased during
the week ending 28 May 1966.
2. During the period there were 871 Communist-
initiated incidents compared to the previous week's
905. There were 13 attacks (4 large scale) and 639
acts of terrorism compared to the preceding week's
15 and 663, respectively. The kill ratio favored
free world forces 4 to 1 compared to the recomputed
2.57 to 1 the week before. Viet Cong losses for the
period were 1,173 killed and 197 captured. South
Vietnamese casualties for the period were 240 killed,
467 wounded and 55 missing or captured--a total of
762 compared to the previous week's 830. United
States losses for the week were 87 killed and 605
wounded--a total of 692 contrasted to the last re-
port of 966. Free world forces lost three killed
(2 ROK, 1 AUS), six wounded (4 ROK, 1 AUS, 1 NZ),
and nine missing (6 ROK, 2 AUS, 1 NZ). The South
Vietnamese lost 236 weapons (14 crew served). The
Viet Cong lost 286 weapons ( 6 crew served).
3. Friendly large operations and enemy contacts
decreased. Small-unit operations and respective con-
tacts also decreased.
4. In I Corps, government forces quelled the
?'struggle" group uprising in Da Nang, Quang Nam Prov-
ince. An ARVN 1st Division operation in Quang Tri
Province inflicted losses on the Communists of 35
killed, three captured and 21 suspects detained.
Friendly losses were six wounded.
5. Operation CRAZY HORSE (US 1st Air Cavalry
Division/ARVN elements) continued in Binh Dinh Prov-
ince in II Corps. Cumulative friendly casualties
are 65 killed and 198 wounded. Enemy losses are 355
killed and 30 captured. ARVN Operation THAN PHONG
14 continued in Pleiku Province. Latest available
friendly casualties, as of 28 May, were two killed
and two wounded, while enemy losses are 82 killed.
Major contacts early this week in Operation PAUL RE-
VERE, targeted against North Vietnamese forces along
the Cambodian border in Pleiku Province, have brought
cumulative enemy losses to 367 killed, as against
US/ARVN casualties of 39 killed and 206 wounded.
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6. Operation WAHIAWA (US 25th Infantry Division)
terminated in Binh Duong Province, III Corps. Final
friendly losses were 30 killed, 240 wounded, and one
missing. Enemy losses were 157 killed, 10 captured
and significant quantities of materiel. Operation
HARDIHOOD continued in Phuoc Tuy Province. Cumula-
tive friendly casualties are 21 killed and 96 wounded.
Enemy losses are 34 killed and one captured. Forces
conducting Operation LEXINGTON (US 1st Infantry Divi-
sion) in the Rung Sat Special Zone killed 45 enemy
and captured 10. Friendly losses are one killed and
six wounded. Combined ARVN/ROK Operation XAY DUNG 31
in Binh Long Province terminated after inflicting
enemy losses of 74 killed and 50 captured. Friendly
losses were three wounded.
7. No significant enemy contacts were made by
friendly operations in IV Corps.
8. Friendly forces conducted 100 battalion-size
or larger operations during the week ending 28 May,
47 of them achieving contact--30 ARVN, 11 US, one
ROK, and five combined. There were 23,953 small-unit
operations, including 3,561 conducted by US forces
and 717 conducted by free world elements. Of the 157
which achieved contact with the enemy, 102 were con-
ducted by US elements and two by free world forces.
9. Eleven B-52 Stratofortress bomber missions
with a total of 68 aircraft were flown during the
week ending 29 May over Quang Ngai and Binh Dinh
provinces in South Vietnam,
MAY MISSION NO. OF A/C TARGET
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GROUND IMPACT
PROVINCE FOLLOW-UP IN/OUT
23 GREEN 3
GOLD V
25X1 24 GREEN 8
GOLD III
24 GREEN 6
GOLD VI
Quang Ngai No
Quang Ngai No
Quang Ngai No 97/12
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GROUND
MAY MISSION NO. OF A/C TARGET PROVINCE FOLLOW-UP
25 DEAD SEA 6 Two VC head- Binh Dinh Yes
I quarters, two
VC bns, bunkers,
caves, and forti-
fications were
struck in support
of ground opera-
tion (CRAZY HORSE)
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25 DEAD SEA 9 Two VC head- Binh Dinh Yes
Ii quarters, two
VC bns, bunkers,
caves, and forti-
fications were
struck in support
of ground opera-
tion (CRAZY HORSE)
26 DRAFT 6
HORSE I
Fg a i No
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26 DRAFT 6
HORSE VI
27 DRAFT 6
HORSE V
28 DRAFT 6
HORSE II
gai No
Ngai No
Ngai No
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MAY
MISSION
NO.
28
DRAFT
HORSE III
6
29
GREEN
GOLD I
6
OF A/C TARGET GROUND
PROVINCE FOLLOW-UP
Huang Ngai No
Huang Ngai No
10. During the period 20-26 May, US Navy, Air
Force and Marine aircraft flew a total of 2,274
strike sorties. VNAF aircraft flew an additional
537 strike sorties. The cumulative results of these
missions as reported by pilots included the destruc-
tion of 1,964 structures, 90 sampans, four bunkers,
one bridge, three tunnels, one truck and seven AW
positions. Reported damaged were 2,315 structures,
50 sampans, three bunkers, two trenches and two AW
positions. In addition, pilots reported one cave col-
lapsed, one road cut, and 26 secondary explosions.
11. An O-lF Birddog spotter aircraft was downed
approximately 24 miles west of Pleiku on 24 May.
Cause of the crash was not known. The pilot was re-
ported killed. On 25 May, a VNAF Al Skyraider was
downed by suspected ground fire approximately five
miles southwest of Bien Hoa. The pilot and crew
member were killed.
12. Forces conducting Operation MARKET TIME
searched 4,502 junks and 20,745 people. Of those
checked, two junks and 94 persons were detained.
COMMUNIST ACTIVITY
13. I Corps last week reported no attacks. The
area continues to lead all others in antiaircraft in-
cidents.
14. The II Corps incident rate remains low for
the country. Two twin battalion-scale attacks oc-
curred in Phu Yen Province, one against an ARVN com-
pany and the other against the Bong Tre Special Forces
Camp.
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CURRENT OPERATIONAL STATUS OF MAJOR TRANSPORTATION ROUTES AND COASTAL RAILROAD
-+---f- Section of operable railroad
Section of inoperable road
Note: Routes are inoperable primarily
because of Viet Cong sabotage/
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15. In III Corps, an estimated two-battalion
enemy force attacked Duc Hue District Town, Hau Nghia
Province. Although casualties were relatively light,
the defending force lost a number of crew-served
weapons including two 81-mm.mortars.
16. The greatest number of attacks occurred
in IV Corps with seven reported. All were small
scale except an action by an estimated two enemy
battalions against a friendly installation manned
by one Popular Force platoon and an ARVN battalion
in Kien Phong Province. The area led all others in
terrorism.
17. No significant change was indicated in lines
of communication status.
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C. REVOLUTIONARY DEVELOPMENT
1. In spite of the general lack of progress in
the revolutionary development program during April,
USAID officials are satisfied with developments in
the self-help program, hamlet school construction,
and certain aspects of the refugee and Communist de-
fector (Chien Hoi) programs. One of the most promis-
ing efforts has been the US and other free world
medical assistance programs. The lack of trained
Vietnamese medical personnel to augment their work
is the only deterring factor. In the agricultural
aid program, animal husbandry, agricultural training,
fisheries, and irrigation were noteworthy activities.
MACV cites understrength local security forces as the
primary obstacle barring expansion of the revolution-
ary development program.
2. In the IV Corps national priority area of
An Giang Province, the first phase of a land reform
program has been agreed upon by GVN and US officials.
Programming during the first two years calls for the
distribution of 11,500 hectares (approximately 4,655
acres) of land and the distribution of some 18,000
land titles. It was not reported when this first
phase will commence.
Returnees (Chieu Hoi)
3. The tally for the week ending 27 May was
247 defectors with I Corps not reporting. Of the
total, 185 were military personnel. New data con-
cerning those Communists who rallied during the period
7-13 May indicates that there were two North Viet-
namese Army squad leaders, five Viet Cong local force
platoon or squad leaders, a district political secre-
tary, and two village political chairmen.
Refugees
4. The flood of refugees continued during the
first three months of 1966 with new arrivals aver-
aging nearly 20,000 per month, according to USAID
officials. The GVN reported over 464,000 refugees
living in temporary shelters as of 3 April, Personal
data is being collected by interviews in several
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provinces, classrooms are being constructed, and
short-term vocational training courses have been
instituted at five different provincial technical
schools. The construction of temporary housing
was insufficient during the first quarter, but
the refugees have been able to improvise or live
with relatives, thus taking some of the strain off
the construction priorities.
5. Most of the refugees are concentrated
along the coast in southern I Corps and II Corps.
According to the US Embassy, the refugees come in
because they fear Viet Cong harassment, because
they reject Communism for various basic reasons, or
because they are displaced by military conflicts in
their area. Most of them wish to return to their
native villages as soon as the situation permits.
I
INEUREI,
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Phong Saly
:,:a` Luang Prabang
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II. DEVELOPMENTS IN THE BLOC
1. With the advent of the rainy season in South
Vietnam, the Vietnamese Communists this week issued
a series of propaganda statements wrapping up the
alleged achievements of the Liberation Forces during
the past dry season. These statements appeared to
be part of a continuing effort to stiffen insurgent
morale by attempting to prove that the Viet Cong in-
creased its political strength and military potential
during the period of time considered most favorable
to US air operations.
2. A communique issued by the Liberation Armed
Forces (LAF) on 25 May asserted that despite the
build-up of US forces and the step-up in US opera-
tions, the liberation forces had been able "'to grow
in all fields, to expand the liberated zones, and to
develop guerrilla warfare everywhere."
3. Also on the 25th, the Hanoi party daily Nhan
Dan commented on the "big victories" of the LAF which
"have driven to bankruptcy the dry season counter-
offensive plans of the US imperialists." Hanoi
followed up this commentary on 29 May by broadcast-
ing a Liberation Press editorial which asserted that
the dry season fighting had proved that the LAF is
capable of waging large-scale "annihilation" battles
against US forces.
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III. THIRD COUNTRY DEVELOPMENTS
According to press reports, Bui Diem, under-
secretary for foreign affairs, arrived in London on
27 May for a three-day meeting with GVN ambassadors
accredited to West Germany, Turkey, Tunisia, the
Ivory Coast, Switzerland, Morocco, Italy, Senegal,
France, and Britain. (Diem indicated during his
visit in Washington that he planned to convene a
chiefs of mission conference in London. Prior to
arriving in London, Diem attended a veteran's con-
ference in Canada.) The press also reported that
Diem met with the British minister of state for
foreign affairs, Mrs. Eirene White., on 31 May.
In reply to statements in Washington on 27 May
that North Vietnamese troops were using Cambodian
soil, Prince Sihanouk announced that he was renew-
ing his proposal that the ICC be provided with the
financial means to maintain sufficient teams to con-
trol the Cambodian frontier. Sihanouk stated that
because of Cambodia's financial state he was asking
the US and other countries that participated in the
1954 Geneva Conference to pay the necessary expenses.
3'EGRET
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WEEKLY REPORT 21 MAY -28 MAY 1966
Total Personnel Losses
(Killed in Action, Captured or Missing in Action, excluding
31500
GVN /US/other Free World
II{
Viet Cong/PAVN
{ i G 1!(~ I j~ ~ j j I l i
I'A
x,000 - t ! j I { !
{jll a
4,oao 1j-rTI r 7 = fi
SEPT
1- I-
(including North Vietnam)
Cumulative, 1961-1964
Cumulative, 1965
Cumulative, 1966 to date
TOTAL
255 1524 10
1365 6110 15
1933 11971 '11
3553 19605 36
FE MAR APR__
flf~f I {
12
136
56
204
1{'j
$
. MA
AUG SEPT - C NO V I -DEC SAN t a ti
Total Friendly Forces Personnel Losses
(US/GVN/Other Free World)
Missing or Captured in action Wounded in action
25X1
Approved For Release 2004/06/24: CIA-RDP79T00826A000800030001-4
 SOUTH VIETMve8A1Pa5gp,,CS CIA-RDP79T00b!$A000800030001-4
WEEKLY REPORT 21 MAY -28 MAY 1966
Viet Cong Incidents
1,250 n a r sJ 1 ~ 1T E j 77-177'
e
Fi
iir
r
; _
t~n
c1ciI
i PEE rerr1srj~
Atfo hs I
Viet Cong Attacks
Company and battalion sized attacks
Battalion sized (and larger) attacks only
Weapons Losses
25X1
Approved For Release 2004/06/24: CIA-RDP79T00826A000800030001-4
 Approved For ROk'ase 2004/06/24: CIA-RDP79T00826 p0800030001-4
SECRET
25X1
SECRET
Approved For Release 2004/06/24: CIA-RDP79T00826A000800030001-4