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DIRECTORATE OF
INTELLIGENCE
fY1 e_c)
MEMORANDUM
The Situation in Vietnam
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15 December 167
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Information as of 1600
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HIGHLIGHTS
Chinese fighters were detected for the first
time on 11 and 12 December conducting low-altitude
bombing exercises near the North Vietnamese border.
I. The Military Situation in South Vietnam:
North
Vietnamese artillery units in the DMZ area are
experiencing difficulties due to winter rains
(Paras. 1-2). Action in the ground war was rela-
tively light on 14-15 December (Paras. 3-4).
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II. Political Developments in South Vietnam:
Bui Quang San, a member of the Lower House from
Quang Nam Province, was assassinated on 14 Decem-
ber by two unknown persons (Paras. 1-2). The Lower
House is upset by the impending trial of 26 struggle
leaders calling
for either a postponement or a complete cancellation
(Paras. 3-8). The Electrical Workers' Union is threat-
ening a strike for 18 December if its demands for
increased benefits are not met (Paras. 9-11).
III. MilitaryDeveiopments in North Vietnam:
There is nothing of significance to report.
IV. Other Communist Militar
Develo ments:
Spanish refugees who lived in
North Vietnam for a number of years have reported
on the activities of Chinese troops there (Paras.
4-8).
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V. Communist Political Devlo ments:
Former
Chinese residents of North Vietnam who have fled
� to China apparently are causing some concern to
Peking (Paras. 3-5).
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I. MILITARY SITUATION IN SOUTH VIETNAM
1.
North Vietnamese artillery units in tne area or tne
Demilitarized Zone are experiencing difficulties as
result of heavy winter rains. The rains, however,
have not prevented the Communists from unleashing
sporadic heavy barrages, and 287 rounds were fired
on 14 December.
a
Ground Action
3. Action in the ground war was light on 14-15
December. The US Americal Division continues to re-
port sporadic enemy resistance south of Da Nang in
the Quang Nam - Quang Tin Province border area. A
notebook captured recently in this region reveals
that the North Vietnamese 2nd Division has been
ordered to launch an offensive prior to the Christmas
truce period. This is unusual in view of the heavy
losses suffered by this unit during the past four
months. The document itself notes that the division
failed to achieve its 1967 autumn campaign objectives.
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4. In Binh Dinh Province during the early
morning hours of 14 December an outpost manned by
a South Vietnamese Popular Force company was overrun
by an enemy company. At first light US and South
Vietnamese reinforcements were moved into the area
and fighting continued throughout the day. The enemy
force withdrew at dusk. Allied losses were 21 killed
(three US) and 22 wounded (ten US). Enemy losses
were put at 55 dead.
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II. POLITICAL DEVELOPMENTS IN SOUTH VIETNAM
1. Lower House deputy Bui Quan San from Quang
Nam Province was killed on the evening of 14 Decem-
ber by two unidentified assailants. Current specu-
lation in Saigon is that the killing may have been
the result of a squabble within the Vietnamese Na-
tionalist Party (VNQDD) or a Viet Cong terrorist
act. There is substance for the former belief. .
San was involved in a factional dispute and switched
allegiance within the party. His "second wife," who
apparently saw the murderers, reported that they
�had familiar faces and spoke the patois of Quang Nam.
2. Some elements in the Lower House have al-
ready seized on the killing to flay the government
for not providing protection to National Assembly
members. Their complaints were cut off by interim
Lower House Chairman Nguyen Ba Luong who counseled
that judgment should be reserved until the official
investigation is completed. Luong also reported
that an assassinationnote was found pinned to San's
chest, but that its contents had not been disclosed.
Western press reports, however, claim that the note
accused San of wife-stealing, torturing civilians,
and having a son working for US intelligence. Under
the constitution, a special election must be held
within three months to fill the vacancy left by
San's death.
Lower House Developments
3. The Lower House during its 13 and 14 De-
cember sessions devoted lengthy debate to the im-
pending trial of 26 struggle movement leaders for
treason. Placed on the agenda because Of a peti-
tion signed by 70 deputies, the subject evoked con-
siderable protest, and it was eventually decided
� that the house should "make known its attitude" in
opposition to the trial. A decision on the exact
� form of any action was deferred until the 15 December
session.
4. Deputy Nguyen Dai Bang of Hue started off
the discussion by reading a letter from relatives of
the defendants claiming that the struggle had been
for legitimate purposes and that it had, in fact, re-
sulted in the establishment of the present government.
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Characterizing the trial as an act of revenge against
genuine nationalists, Bang said that he personally in-
tended to write letters to President Thieu, the chair-
men of both houses of the National Assembly, and the
president of the Third Military Field Court conveying
the views of the defendants' families.
5. Another deputy, Nguyen Ngoc Nghia of Thua
Thien, argued that it was not the 26 defendants who
had led the struggle, but rather the monks who issued
the orders. He asked rhetorically why the monks them-
'selves were not put on trial--a line also taken by
militant Buddhist Thich Thien Hoa, a leading partici-
pant in the struggle, in a communique issued on 13
December.
6. Those deputies who favored proceeding with the
trial spoke cautiously, and the majority appeared strongly
in favor of some sort of leniency, if not cancellation
of the trial and release of the defendants. The two
alternatives placed before the house for later considera-
tion at its 15 December session were the immediate re-
lease of the prisoners or the establishment of a special
committee to draft an amnesty law covering political
prisoners arrested since 1 November 1963. if the latter
alternative is adopted, the Lower House would request
that the trial be postponed during the drafting process.
The Upper House has already decided to draw up an amnesty
resolution, and Senator Tran Van Don recently told Viet-
nam Press that the Senate would definitely send a letter
�to the President requesting postponement of the trial.
7. As part of its other business during the 13 and
14 December sessions, the Lower House also decided to
establish 14 permanent committees. Deputy Ho Huu Tuong
attempted to have a committee on foreigners' affairs
established to examine violations of Vietnamese sover-
eignty by foreigners, but his proposal received the sup-
port of only five deputies. The majority felt that the
judiciary and interior committees could handle such cases.
8. In connection with the legislature's challenge
of the mobilization decree, .the government will send a
delegation to answer questions at the morning session of
the Lower House and the afternoon session of the Upper
House on 18 December. The government representatives will
include Defense Minister Vy, Undersecretary for University
and Technical Education Cung, and Minister for Legislative.
Liaison Tuong. The Lower House session probably will
be closed, while the Upper House will probably open its
session to the public.
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Possible Electrical Workers' Strike
9. The Electrical Workers' Union has threatened
a strike to begin on 18 December or shortly afterwards
if the French-owned public utility, the Compagnie des
Eaux et d'Electricite, does not meet its demands for
increased benefits. Specifically, the unions are
asking for a 15-percent cost of living allowance retro-
active to 1 August; severance pay and an extra month's
salary because the company is turning its operations
over to the government; and a 1,000-piaster Tet bonus--
all payable by 31 December. For its part, the company
has said that it fully intends to give the workers
severance pay and Tet bonuses, but not until 5 January,
and that any question of a cost of living allowance
increase must be taken up with the Ministry of Public
Works, which will pay the workers' salaries after 31
December.
10. Vo Van Tai, general secretary of the Saigon
Council of Unions, has said that the council will give
the strike both moral and financial support if it occurs.
He believes there will be a strike. Neither the minis-
ter of public works nor the minister of labor has done
anything, he says, toward mediating the dispute or toward
alleviating the workers' fears that they will come out
on the short end as a result of the management change.
11. Tran Quoc Buu, president of the Vietnamese
Confederation of Labor, has, however, urged Prime
Minister Loc to take action and, as a result, the is-
sue was placed on the agenda of the Council of Ministers
meeting for 14 December. Should the strike occur, it
will affect not only the Saigon area but also some or
all of nine other cities where affiliated French com-
panies have installations. The union, however, has
agreed to stagger the hours and the areas of *the strike
in Saigon so that power will not be completely cut off.
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III. NORTH VIETNAMESE MILITARY DEVELOPMENTS
1. There is nothing of significance to report,
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IV. OTHER COMMUNIST MILITARY DEVELOPMENTS
Chinese Activity in North Vietnam
4. Several of the recent Spanish repatriates
from North Vietnam have told of the activities of
Chinese Communist engineer and antiaircraft troops
in North Vietnam. Their reports give a detailed
picture of the Chinese activities/
The Spaniards' observations
appear generally accurate, but like many reporters
they have also provided hearsay and personal im-
pressions which in many instances are exaggerated
or incorrect.
5. Some of the refugees described in detail
the personal appearance and bivouac areas of the
Chinese and their movements on truck and foot. In
the main, the Spaniards said, the Chinese were
performing construction and antiaircraft tasks.
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6. The Spaniards described Chinese troops
manning AAA guns and repairing bridges and rail-
roads at Lang Son, Lao Chai, and other areas in
northern North Vietnam. One of the refugees also
said that Chinese engineers were building a huge
airfield near Yen Bai, and a "strateaic" road from
Lao Cai through Yen Bai to Son Tay.
7. According to the Spaniards' reports, Chinese
troops were billeted in tents and caves near Chi Ne,
about 35 miles south of Hanoi. Some of the caves
were used for AAA guns. The guns were controlled
electrically and moved on tracks to the cave en-
trances when planes appeared.
8. The refugees probably reflected the feel-
ings of many of their Vietnamese neighbors in claim-
ing that, in effect, the Chinese had "taken over"
certain areas. All the refugees noted, however,
that an official North Vietnamese presence was
maintained in all regions where numerous Chinese
were observed, and none said the Chinese exercised
any control over the population or attempted to
disseminate Maoist propaganda. Some of the Span-
iards indicated the unhappiness and uneasiness of
the Vietnamese because of the many Chinese, but
there were no reports of serious friction or any
actions by the Chinese which might arouse popular
resentment.
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V. COMMUNIST POLITICAL DEVELOPMENTS
Chinese Refugees From North Vietnam
3. Chinese who have fled North Vietnam to
avoid the war are apparently causing some concern to
Peking. According to a Red Guard publication, Chou
En-lai told a group of Red Guards on 14 November
that among the people causing trouble in Canton
were those who have "run away from Vietnam." The
Chinese premier asserted that the refugees had
actually fled from fear of US air attacks, although
they were claiming they left because they could
not study Chairman Mao's thought in North Vietnam.
4. Chou admitted that there was revisionism
in both China and North Vietnam but pointed out
that this was not the real reason for the refugee's
flight. He minimized the importance of revisionism
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in North Vietnam, asserting that the major preoc-
cupation there was fighting the US.
5. Chou's comments suggest that Peking finds
the refugees unwelcome. They spread stories detri-
mental to Sino-Vietnamese relations and are extra
mouths to feed.
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