THE SITUATION IN VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00826A001100010045-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 20, 2016
• Document Release Date: August 1, 2006
• Sequence Number: 45
• Publication Date: August 24, 1966
• Content Type: MEMO

Approved For Release 2007A : Cli OAI 00826AOO1100010045-4
CENTRAL INTELLIGENCE AGENCY
THE SITUATION I N VIETNAM
Information as of 1600
24 August 1966
State Dept. review completed
PREPARED FOR THE NATIONAL SECURITY COUNCIL
FURTHER DISSEMINATION OF INFORMATION
CONTAINED HEREIN IS NOT AUTHORIZED
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3 T )P S1 fRF7'
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24 August 1966
US Marines conducting Operation PRAIRIE have
established contact with a well-entrenched enemy
force five miles south of the Demilitarized Zone
in Quang Tri Province. Farther south, an estimated
battalion of Viet Cong inflicted heavy casualties
today on a government militia company defending an
outpost in Binh Thuan Province. On the economic
front in the South, US Mission officials have re-
ported some favorable indicators for the first time
since the implementation of the government's reform
program in June.
I. The Military Situation in South Vietnam:
Heavy fighting was reported near the DMZ as US Marines
participating in Operation PRAIRIE encountered an
enemy force in the Cam Lo River valley (Para. 1).
A South Vietnamese Regular Force company was attacked
by a battalion-size Viet Cong force today, resulting
in 55 friendly killed (Para. 2). US Navy patrol
boats on the My Tho River captured a Viet Cong sampan
which contained a quantity of highly classified enemy
documents (Para. 3).
II. Political Developments in South Vietnam:
As of 19 August, the previously inflated and pre-
carious economic situation appeared to be taking a
turn for the better (Paras. 1-2). Buddhist leaders
in two coastal provinces are reportedly urging po-
tential Buddhist voters to exercise disrupting tac-
tics prior to and dlaring the 11 September elections
(Paras. 3-4).
III. Military Develo ments in North Vietnam:
There is nothing of significance to report.
IV. Other Communist Military Developments:
There is nothing of significance to report.
V. Communist Political Developments: There
is nothing of significance to report.
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NORTH ?Dong Hoi
avannakhet
CURRENT SITUATION
24 AUGUST 1966
0 25 50 75 100 Miles
25 50 15 MO Kllorneters
25X1
33592
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1. US Marines participating in Operation
PRAIRIE in northernmost Quang Tri Province reported
heavy contact with enemy forces last night and this
morning. Company-sized elements of the 4th Marine
Regiment encountered a Communist force well entrenched
in fortifications and caves in the hills of the Cam
Lo River valley, 18 miles west of Dong Ha and five
miles south of the DMZ. Five Americans were reported
killed in the action. A total of 17 enemy troops
were killed and two captured. Contact was continu-
ing according to the last report.
2. A South Vietnamese company defending
an outpost near Phan Thiet in coastal Binh Thuan
Province was attacked by an estimated battalion-size
Viet Cong force early today. During the ensuing 25-
minute battle, 45 South Vietnamese troops were killed
and 22 wounded. Allied artillery and tactical air
strikes supported the South Vietnamese. Friendly losses
also included ten civilians killed and nearly 60
weapons captured. Eleven Viet Cong were killed,
according to a South Vietnamese body count. A re-
action force has been unable to re-establish contact
with the enemy.
3. Six US Navy river patrol boats engaged an
enemy force of unknown size about 3.5 miles southwest
of Saigon on 23 August. The Communists were attempt-
ing to cross the My Tho River when the Navy patrol
caught them, killing two Viet Cong and capturing a
sampan which contained, among other things, a number
of highly classified enemy documents. Enemy units
on the banks of the river attempted to drive the
patrol boats away with intense automatic weapons
fire. The boats were only slightly damaged and
there were no allied casualties reported.
24 August 1966
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1. According to US Mission officials, economic
and financial indicators during the week ending 16
August reflected the first healthy signs that the
inflated economy is beginning to right itself since
the devaluation of the piaster approximately two
months ago. Prices for the five primary imports
decreased. The free (black) market exchange rates
for US dollars and for gold registered significant
drops, apparently as a result of the tight credit
situation and government sales of gold.
2. Last week, the price of pork reportedly
fell by a third as a result of the increased level
of hog deliveries to Saigon, in contrast to late
July when only about half the normal number of hogs
was leaving the provinces. Among several theories
advanced to explain the return of the hogs to the
Saigon slaughterhouse, the official Vietnamese ver-
sion lays the blame on the Viet Cong. According
to a Ministry of Agriculture official, the Commu-
nists have decided to allow freer delivery of hogs
until a few days before the forthcoming elections
when they will cut off the supply and erode the false
confidence that is building now.
Election Developments
3. There are some reports that Buddhist organi-
zations in the provinces are planning to do more
than just exercise their "right not to vote" as they
were instructed by the acting chairman of the Bud-
dhist Institute in Saigon.
25X1 I uin Phu Yen Province, Buddhist leaders there
decided at a recent meeting to allow Buddhist voters
to participate in the elections, but in such a manner
that their ballots would be invalidated. This tac-
tic would be accompanied, if circumstances permit,
by outright theft of ballot boxes, demonstrations,
and explosions in the vicinity of the polling places.
24 August 1966
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F Buddhist leaders Have c
on their followers ere to gather around the polls
at mid-afternoon on election day in order to dis-
rupt the large number of voters who are expected
to arrive shortly before the polls close. Buddhist
faithful in Khanh Hoa have also been urged to go
through the voting procedure only for the purpose
of invalidating their ballots.
24 August 1966
Approve
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