SOUTH VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000500030054-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: March 12, 2003
• Sequence Number: 54
• Publication Date: March 23, 1955
• Content Type: BRIEF

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SOUTH VIETNAM
I. Premier Diem's plan to "deal with" Sects
facing setback.
A. Plan has been to buy off subordinate
commanders until military strength of
remainder can be dealt with by
National Army.
But those bought don't always stay
bought and army not in shape to play
its part.
II. As example, latest Sect move (20 Mar
"ultimatum") has
Generals Phoung
to be safely on
A. Gen. Phoung
been jointed by Cao Dai
and The, who Dies believed
his side.
had been paid bribe of
over $100,000,
on occasion of
which kept his "loyal"
Sects' previous anti-
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NO CHANGE IN QLWS ^
pECI_ASSIFIED,
I ASS. CHANGED TO; TS S C
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ment with much fanfare, has also been
well-paid (has received about half of
premier's confidential funds).
C. Meanwhile, the Binh Xuyen's holdings
are sufficiently lucrativd as not
only to put these gangsters beyond
bribery, but to permit them to do
their own bribing.
1. Their price-tag for relinquishing
Saigon police is over $1 million.
2. They got Cao Dai "Pope" to sign
earlier manifesto by gift of 1955
Oldsmobile.
III. Army forces greatly outnumber Sects but
are dispersed; also, defense minister has
no stomach for showdown.
A. Diem states army morale is low, largely
as result of arbitrary dismissals by
defense minister.
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will take tough line and force open
fight with Sects.
IV. Sect's "ultimatum" of 20 March gave Diem
five days to reorganize government in un-
defined manner.
A. After that, Sect leaders would "appeal
to the people."
B. Prospect is that Sects will seek
maximum squeeze rather than attempt
coup.
Serious problem is that Sects' harassing
tactics distract government from more
important matters.
A. Priority task is unified front against
Communism; Sect self-seeking cripples
efforts along this line.
B. Disunity in South puts Diem in weak
position in forthcoming discussions with
Viet Minh on national elections.
-a-
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Sect activity as evidence of Chaos:
example--radio (15 Mar) said "civil
war raging in South Vietnam."
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