EVENTS AND DEVELOPMENTS IN SOUTH VIETNAM, 5 - 18 OCTOBER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00429A001300050015-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 19, 2016
• Document Release Date: May 13, 2005
• Sequence Number: 15
• Publication Date: October 19, 1963
• Content Type: MEMO

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SECRET
CENTRAL INTELLIGENCE AGENCY
EVENTS AND DEVELOPMENTS IN
SOUTH VIETNAM, 5-18 October
19 October 1963
DOS review completed
ARMY review(s) completed.
D I R E C T O R A T E O F I N T E L L I G E N C E
SECRET
GROUP 1
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MATERIAL CONTAINS INFORMATION AFFECT-
`HE NATIONAL DEFENSE OF THE UNITED STATES
THE MEANING OF THE ESPIONAGE LAWS,
USC, SECTIONS 793 AND 794, THE TRANSMIS-
Ox REVELATION OF WHICH IN ANY MANNER TO
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CENTRAL INTELLIGENCE AGENCY
MEMORANDUM:
SUMMARY
OCI No. 2370/63
19 October 1963
25X1
Vietnam has been one of uncertain and uneasy calm. Al-
though there have been no dramatic developments, the at-
mosphere seems to be that, not of a resolved crisis, but
of a lull before new political storms.
In essence, the US and the Diem regime are each at-
tempting to assess the other's determination and future
intentions, but the intentions of each remain cloudy to the
other. The two governments are not. for all nractica]
purposes, in communication
In the cities, tension remains despite surface signs
of a return to "normalcy" In the countryside, the war
continues unabated, but there are a few hints that the ur-
ban political tensions may be beginning to hamper GVN
conduct of the war.
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OCI No. 2370/63
19 October 1963
MEMORANDUM: Events and Developments in South Vietnam,
5-18 October 1963
1. In recent days the GVN has taken a number
of actions, some of which may have been prompted by
the new US posture and pressures (e.g., aid suspen-
sion and official "coolness.") Viewed as a whole,
however, these GVN actions cannot yet be said to be
moves toward conciliation and rapprochement. Indeed,
they suggest that the GVN may be digging in and pre-
paring for a long, cold winter in its relations with
the US.
Military Actions
2. Two companies of Colonel Tung's "Special
Forces" appear to have been released from Saigon
security duties for field operations against the
Viet Cong. More importantly, the transfer of the
Ninth Division from the II Corps area to the delta
now has been virtually completed. (This is a move
recommended both by COMUSMACV and by General Taylor.)
COMUSMACV reported on 17 October that Diem had de-
cided upon a redefinition, effective 1 November, of
military corps boundaries. The changes incorporate
most, but not all, of recommendations made by COMUS-
MACV. Ngo Dinh Nhu in a 17 October press conference
reiterated the Vietnamese government's intention to
slow down construction of new strategic hamlets in
favor of greater emphasis on consolidation of exist-
ing hamlets, a course long urged by US advisers,
particularly in the Delta.
3. Various moves have been made to restore at
least the surface appearance of "normalcy." Saigon
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is no longer under martial law. The National As-
sembly elections have been held, and the new As-
sembly was convened on 7 October and addressed by
Diem, who characterized the Buddhist issue as a
desperation gambit of the Viet Cong (indicative of
VC weakness and loss of rural support), developed
with the assistance of "international adventurers
and the foreign press." More Buddhists and stu-
dents have been released,
4. Nonetheless, police searches and political
arrests continue. On 7-8 October, the GVN seized
the senior vice president of South Vietnam's larg-
est labor confederation (the CVTC), a USOM local
employee, and an aide to the GVN Delegate for the
Southeastern Provinces, The labor leader (who was
released on 15 October after an ultimatum by CVTC
President Buu) was probably arrested partly as a
warning to the labor movement and partly because of
the political activities of his student son. The
USOM local may have been apprehended as a warning
to other Vietnamese employees of the US Mission.
The Delegate's aide appears to have fallen into dis-
favor for being too "pro-American."
5. On the economic side, the GVN has begun to
earmark some of its own funds to import commodities
previously financed exclusively under the CIP. There
are reports that GVN civil servants have been alerted
to accept a "voluntary" cut in salary. Diem has re-
cently hinted to the people that a "time of austerity"
lies ahead, and Saigon press reports citing "usually
well-informed sources" assert that the GVN plans to
counter US aid suspensions by causing "controlled in-
flation." In general, it would appear that the GVN
is preparing for an appreciable reduction and/or pro-
longed suspension of US economic aid. There are re-
ports that the GVN, at Nhu's instigation, is moving
to replace the USOM counterinsurgency supply system
for the strategic hamlet program with a system con-
trolled by ARVN and the Republican Youth. This move,
reportedly ordered to become effective l January,
would seriously impair US control over supply move-
ments.
6. Internationally, the GVN has invited an ob-
servation delegation from the UN General Assembly,
a move designed to forestall UN debate and censure
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of recent GVN moves against the Buddhists. Also, re-
ports continue to be received of GVN overtures to
North Vietnam, though no new hard evidence on this
topic has come to light.
Actions With Respect to the US
7. Diem's 7 October speech to the new National
Assembly expressed thanks for foreign aid, particu-
larly for the sacrifices of US soldiers, albeit in
a considerably lower key than has been the case in
similar speeches in the past. Diem made no reference
to the contribution of US civilian advisers, although
Secretary Thuan had told Ambassador Lodge that the
original draft of Diem's speech contained such a re-
mark.
8. The Times-of Vietnam has continued its GVN-
sanctioned--iT not V -insp red--attacks on the US
government in general and the CIA in particular. On
7 October it charged that the US economic aid pro-
gram had been suspended. On 11 October it criticized
President Kennedy directly for the first time, claim-
ing he had given "virtual blessing to the 'semisecret,
semipublic' policy of forcing the Vietnamese govern-
ment to buckle down under the weight of diplomatic
and economic pressures and conform subserviently to
certain wishes of the State Department ...(and)...
virtually sanctioned the CIA's activities in Saigon