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DIRECTORATE OF
INTELLIGENCE
tA
Top S
No reign Dissem
MEMORANDUM
The Situation in Vietnam
Handle via G�int Chann
ecret
Jr
12 January 1968
EO
13526
3.3(h)(2)
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Information as of 1600
12 January 1968
Sc No. 00881/68
HIGHLIGHTS
Irill111.111.11111M
Labor unrest in Saigon has spread in the wake
o e arrest of six labor leaders.
I. The Military Situation in South Vietnam:
Enemy forces launched attacks in Thua Thien, Kontum,
Tay Ninh, and Ben Hoa Provinces on 11-12 January
(Paras. 1-7).
(Paras. 8-13).
II. Political Developments in South Vietnam:
Port workers in Saigon walked off their jobs on
12 January (Paras. 1-4).
(Paras. 5-8).
III. Military Developments in North Vietnam:
There is nothing of significance to report.
IV. Other Communist Militar
(Paras. 1-3).
V. Communist Political Developments: Hanoi
has begun propagandizing Foreign Minister Trinh's
statement about talks with the US (Paras. 1-2).
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CONF TIAL
69268 1-68 CIA
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I. MILITARY SITUATION IN SOUTH VIETNAM
1. Communist guerrillas were active in the
coastal areas of Thua Thien Province on 12 January,
launching a mortar attack on a US Marine field posi-
tion and setting explosive charges which cut strategic
Route 1 in eight places near the Hai Van Pass.
2. Six Americans were killed and 12 wounded dur-
ing the nearly hour-long mortar barrage on the position
located about 17 miles southeast of Phu Bai. Enemy
losses are unknown. Seven bridges were destroyed on
Route 1, the main supply route from Da Nang to the
northern provinces. The road is completely impassable.
There was no estimate of the time it will take to re-
pair and reopen the route.
3. On 11 January, Viet Cong forces killed 18 South
Vietnamese and wounded 20 when they attacked a village
11 miles northwest of Kontum city in the central high-
lands. The Regional and Popular Force soldiers defend-
ing the village reported killing one of the attacking
enemy.
4. In Tay Ninh Province a South Vietnamese CIDG
patrol discovered an enemy base camp just south of the
Cambodian border on 11 January. The base camp was oc-
cupied by an estimated battalion-size enemy force
which defended the camp for three-and-one-half hours
with intense small-arms and mortar fire before finally
withdrawing. Friendly losses totaled eight killed and
22 wounded. Enemy losses are not known.
5. The enemy camp was located less than ten miles
from the site of a Special Forces camp and a US artil-
lery fire support base, both under construction.
Both ,of these sites pose a potential threat to Com-
munist forces in northwestern Tay Ninh Province and
are probable targets for enemy attacks.
12 January 1968
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Operation AKRON V Begins
6. Five battalions of US and Australian troops
began search-and-destroy operation AxnoN v in western
Bien Hoa Province on 11 January. The joint sweep
is designed to seek out and destroy elements of the
Viet Cong 274th Regiment which have been operating
in this general vicinity.
7. Late on 11 January, a US company, participat-
ing in this operation, came under attack from an
enemy force of undetermined size. A heavy mortar
barrage was followed by a large-scale ground assault
which lasted for more than two hours. At daybreak,
the attackers withdrew. Initial reports show 46 Amer-
icans wounded in the fight.
Buildup Near Rhe Sanh
8. There are new developments related to the
enemy buildup in the Khe Sanh area.
1-2
12 January 1968
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1-3
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III. MILITARY DEVELOPMENTS IN NORTH VIETNAM
1. There is nothing of significance to report.
12 January 1968
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V. COMMUNIST POLITICAL DEVELOPMENTS
1. North Vietnam has begun to issue propaganda
in support of Foreign Minister Trinh's 30 December
statement regarding talks with the US. Thus far,
this has been limited to underscoring the importance
of the new formulation and to claiming that the US
response to it has been negative. No elaboration
has been given on the timing or content of any post-
bombing talks.
2. In separate broadcasts on 11 and 12 January,
Hanoi praised the "correct stand" of the North Viet-
namese Government as expressed in Trinh's remarks,
stressing that the new formulation had already re-
ceived world-wide support. The statements went to
great length to indicate that the US was trying to
distort Hanoi's position and to forward its own
"arrogant terms" for talks. Hanoi discounted state-
ments by US officials that Trinh's remarks were being
studied and claimed that the US position as expressed
by the president in the San Antonio formula was "an
insolent demand that our people accept the US terms
before the US agrees to stop the bombing." Hanoi
also repeated allegations of the bombing of a Soviet
and a Chinese ship and pointed to other "war acts"
as evidence of US bad faith. He added that the US
intends to intensify and expand the war and quoted
Assistant Secretary of State Bundy's remarks that
the cessation of the bombing might mean moving far-
ther away and not closer to peace.
V-1
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TOPS
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