176-10036-10179 JFK ASSASSINATION SYSTEM IDENTIFICATION FORM AGENCY : NARA f RECORD NUMBER : 176-10036-10179 RECORD SERIES : National Security Files AGENCY FILE NUMBER : ORIGINATOR : DOS FROM : TO: TITLE : Status Report on Southeast Asia DATE : 7/11/1962 PAGES : 10 SUBJECTS : DOCUMENT TYPE : CLASSIFICATION : RESTRICTIONS : CURRENT STATUS : DATE OF LAST REVIEW : 9/10/2000 OPENING CRITERIA : COMMENTS : National Security Files, Box 203: Vietnam Status 7/11/63. Box 1 |
ae Qa aT wo * ee + ¢ ~~ / ne en een ; a AEG SEE SANTITTED VER MN PUdL-s1-3 25 NS t . } : :. ; . . _. SECRET STATUS REPORT ON SOUTHEAST ASIA 3 JULY 0,1962 PREPARED BY: TASK FORCE SOUTHEAST ASIA DEPARTMENT OF STATE SECRET -
] ; SECRET VIET-NAM Current Overall Evaluation 3 The general trend appears slightly fevorable, with the GYN continuing to*isprove its military, and to a limited extent, its political and econce wié position, Basic problems are being eroded but quick and decisive action is rare.. There were no major breakthroughs or important victories~ . amd nore appear likely in the immediate future. The Viet Cong show no weakening in strength or determination despite reportedly heavy losses, On the military side, Operations Binh Minh and Hai Yen continued well, Viet Cong casualties were up and their activities down (there is © an unconfirmed news report that a major battle took place July 3, however, in which the VC defeated a regular army battalion)g This may be due to reorganization and weather rather than GVN successes. The GYN took several good but minor: steps to increase popular support for the war effort, and several rural excfal and economic programs moved ahead significantly. On the international front, there were some favorable responses to our efforts to set up an aid coordinating group of donor nations, Economic conditions improved somewhat, with stable prices, credit a little less tight, consu~- mer goods sales and tax collections up, and rice deliveries continued good, Fearing that the prospective Law settlement will facilitate Viet Cong activities and that it may presage a U. S. move to neutralize Viet-Nam it- self, the CVN has made difficulties at Geneva over several issues and threatens to boycott the conference, President Kennedy hae sent Diem a personal letter stressing the importance we attach toa Laos setilsnent and our determination to continue to help Viet-Nam defend itself, There is no response as yet. . 7 Progress on Action Program 1, W Activity Viet Cong activity continued at a relatively low level, with armed. attacks falling to the lowest point over a year, 60, for the period 20-27 dwre and rising only slightly to 75 for the period June 27 - July 4. The lack of VC aggressiveness is likely due to the rainy season and their efforts to regroup in order to comter the improved mcbility and perfar- - mance of the GYN forces, Observing that this appears to be a period of VC reorganization and assimilation of recent: infiltrators, COMUSMACV reo- perts indications that VC units. which previously operated as separate pletcons and companies are now being formed into battalions, Infiltration evidently continues, but geod intelligence is scarce, MACV Je2 estinates intiltration in May at 800-1,000 and 800 for the first three weeks of June, but this information is unconfirmed and there are no reports of infiltra- ‘tion since. SECRET ’ nat
SECRET ~ =2= In spite cf reduced VW activity, VC casualties were high and included some main force personnel. For the vericd 20-27 June the VC suffered a reported increase of casualties of almost 25 per cent over the previous reporting period. Killed in action fer the twe week period were 865 ¥C end 141 friendly forces. Reports continue to indicate a critical VC shortage of medical supplies. Unconfirmed reports reise the sossibility thet the VC are attaining an enti~ aircraft capability. — (Followiag items are keyed to the Viet-Nam draft action program of daly 3) 2. Strengthen popular support . The GUN took several steys to generate more popular support in the last two weeks. These include the July 7 release of 794 prisoners in connection with the celebration of the "double seven” holiday (anniversary of Diem's coming to power), a stepped-up drive to root out low-level corruption and abuse of power by GUN officials, and a Presiden- tially proposed amendment to the Constitution permitting the questioning of: Cabinet Ministers both by Committees of the National Assembly and by the National Assembly in plenary session. ‘The prisoners released may include leading oppositionist Phan Quang Dan, who has been in prison since his par- ticipation in the attempted 1960 coup. We have urged the last item on Diem in the past in an effort to imcrease the powers and prestige of the National Assembly. Another favorable develcepment is increased emphasis on working with and for the people in the current training program for strategic hanlet cadres. Ngo dinh Nhu (President's brother in charge of the stretegic hamlet program) is concerned that the program win genuine popular support. He favors the election of hamlet officials by secret ballot inatead of by customary show ‘of harmis. This is now being done in some hamlets. Lh. Seet International Support (s) Cambodian Relstions. The GYN replied mildly to the Cambodian note concerning the ARUN border incursions of June 16, but did not apologize or offer incemmities. The note insists that all precautions were taken to avoid crossing the poorly marked frontier, admits thet in spite of these pre- cautions the frontier may have been violated. points out thet any such inad- vertent crossing wag not motivated by hostility toward Cambodia, denies the arrest of or harm to Cambodian inhsbitants, and proposes a mixed border con- trel comalitee to study frontier incidents and provide for future border cesperation. ; Another source of GVN-RKG friction, disputed coastal islands, was the subject of an exchange of notes which threatened to stir up further tronble between Cauwbodia and Viet-Nam. ,
SBORET - nes je (>) Third Country Aid. The United States has suggested a Saigon, and possibly a later Washington meeting of donor country repre- sentatives to coordinate aid to Viet-Nam. The intention is to stimulate more third country aid if possible, and to make sure that current third country contributions are being effectively applied. To date, Australia aud New Zealand have indicated willingness to participate in such meetings, Germany will take part in informal Saigon meetings but would not attend any formal Washington gathering, and the Japanese are "proceeding with ‘caution" because of the expressed fear that too close identification with the U.S. will open up Japanese technicians in Viet-Nam to Viet Cong reprisals. Canada has declined to participate because of its membership on the ICC. The Belgians. French, Italians and the UK have not yet responded . Negotiations for the integration of Australian trainers into our “MAAG appear near completion. The GYN has indicated its willingness to receive a New Zealand medical team at any time and the details are being worked out with Wellington and Saigon. 10. Military Civic Action The 3ist Engineer Battalion assisted the local population at Cheo Reo in Pleiku Province in the construction of a Buddhist temple. In addition to the 150,000 copies of a news sheet distributed weekly by soldiers to the local civilian population, 35,000 copies of the sheet were also air dropped. . 12. Operations Binh Minh and Hai Yen. Saigon reports both clear- and-hold operations continuing to make progress without serious VC reaction. Increased contact with the VC is reported in the Had Yen area, however, as the military move into WC territory. ' Hamlet Councils have been elected in the Hai Yen area, but the Embassy notes a serious problem in the fact that a hamlet Council member receives only 300 piasters (about $).00) per month for what is theoreti- cally e full timo job. In Operation Binh Minh, an effort will be made to induce the people to move voluntarily into the fourth villege to be set up there. The plan calls for extensive propaganda and explanations in advance of the move. establishment of military control over the area so that the people will be free to move voluntarily, and up to 15 deys to accomplish the move itself (previous regrouping actions allowed only a a very short period for the physical move ) Montagnards. Latest information developed as a result of joint surveys indicates the Montagnard situetion is more a long term problem than an emergency. There has in fact been a movement of some 17,000 Mon- ‘tagnard as a reaction to VC pressures, and this movement will probably continue, particularly if the GIN provides adequate food and security. SECRET
SECRET — ware abe Almozt all Montagnard refugees are at least temporarily resettled and re- ceiving minimum food, shelter and secirity. The Embassy comments that while this information somewhat reduces the urgency of the problem, it dees not change the problem's magnitude or importance. Difficulties stemaing from the absence of a well directed, national Montagnard relief program, limited relief resources, and the Viet- namese prejudice against the Montagnard continue. But the principal and most encouraging aspect is the fact that the Montagnard have fled the ve pressures and more may do go. Strategic Hamlet Program. The second ten day training course for ires was inaugurated by Ngo dinh Nhu in Saigon July 2. 90 strategic hamlet ca Future Plans. According to CAS, | | "15. Provide Increased Technical Assistance. Village Radios. As of July lh, 817 of the plenned 2500 village radios were installed and operating. Tests of radios for use on trains were started. Defoliation. The Embassy has proposed a test of the effectiveness of defoliaats against VC food patches in the mountainous area of Operation Hai Yen. Governor Harriman opposes the use of defoliants on food crops be- cause of the effect on ASian opinion.. Decision and action will be delayed until the Governor's return from Geneva. 20, efforts associated w terinsurgency plans opensd July 3 in Qui Nhon. One hundred farmers will ‘Study farming and stock raising methods for one month, including the use of fertilizers and pesticides. Provincial Hospitals. Construction of four of the 25 planned hospital surgical suites began on schedule. Anti-Rat Program. The USOM-supported rat destruction cagpsign was carried out in ten northern provinces June 12-22, resulting in the destruction of an estimated 15-20 million rats or 20,000 per village. 25. Publicize the Wer Within Viet-Nam and Internationally. Viet-Nam Photo Service. USIS Saigon is sending out a weekly packet designed to enlist third country interest and support for the GIN of photos SECRET
SECRET 7 \ “5= war effort. Eight posts have reported favorably on the effort, imlicating no difficulty in placing the photos in leading newspspers. 98. Establish Network of USIS Sub-posts. The GVN hes agreed to the establishment of virtually any namber of USIS sub-posts throughout the country. Negotistions.on locations and physical arrangements are underway. SECRET
ae . —_ HA TLAND Current Situation Evaluation The RIG has accepted the International Court decision awarding the disputed Phra Viharn Temple to Cambodia. Thai delegates attended the Geneva Conference on Laos, which reconvened on July 2, but the RPG has not yet announced its intention to attend the next meeting of the SEATO Council of Representatives in mid-July. On July 2 the US begen the redeployment of 1,000 Merines from the Third Marine Expeditionary Brigede at Udorn. Possible Thai concern over this move wes lessened by our informing them at the same time of a US~- financed program to improve logistic facilities in Theiland (see below). On June 29 police arrested one euspected Communist in Chiengrai and one in Lempang, both in the North of Thailand. The Thai press reports that subversive documents were confiscated at both lecations. According nfirmed reports these documents originated from Progress on Action Program 1. Improved Logistic Facilities We have outlined to the RTG our preposed program to improve logistic facilities in Thailand. The program would consist mainly of a POL pipeline to Korat in the northeast, rolling stock, airfield im- provement, storage areas, and prepositioning of heavy military engineer- ingequipment. The Thai have agreed to the proposal in principle although Sarit reserved his decisicn on our request that the RIG provide the right- of-way for the pipeline and in-country transportation. 2. Internal Security Plan We have iuetructed Embassy Bangkok to ceble summaries of those portions of the plan which will not havs been pouched in time to reach the Department by July 11. This will permit consideration of the basic ° components of the entire plan during Secretary McNamera's forthcoming trip to Honolulu. SECRET