Foreign Relations of the United States, 1961–1963, Volume II, Vietnam, 1962

209. Telegram From the Embassy in Vietnam to the Department of State¹

Saigon, June 4, 1962—4 p.m.

1550. Our 1503.² Second Weekly Status Report (delayed by Dept Cirtel 2032, 2040, 2045).³

Political

1. Delta Plan and Strategic Hamlets Program. Organization for counterinsurgency operations in Delta presented by Delta Plan Commissioner, Colonel Lac, has not yet received Presidential approval, and indications are that Delta Plan has been merged into Strategic Hamlets Program under Ngo Dinh Nhu. Lac has been made member of Strategic Hamlets Inter-Ministerial Committee and given responsibility for construction of strategic and defended hamlets in Delta area. Meeting held May 24 at My Tho (Headquarters 7th Division south of Saigon) under Nhuʼs chairmanship at which Lac presented plan for series defended hamlets along edge Plaine des Joncs.⁴ Task Force Province Rehabilitation Committee subsequently met with Minister of Interior Bui Van Luong (representing GVN Strategic Hamlets Committee) on May 28 expected request for U.S. assistance to defended hamlets project was not presented.⁵

Comments: Original Delta Plan included strategic hamlets as one of key elements but evident GVN primary emphasis on strategic hamlets as demonstrated by above developments risks loss of coordination of civilian and military action which Delta Plan and Lacʼs organizational concept had envisaged. Building of strategic hamlets all over country abandons priority envisaged for Delta Area and risks discrediting strategic hamlet principle because of inadequate number of security forces to defend strategic hamlets everywhere at once, as well as inadequate civilian personnel and resources to carry out civic action, economic and social phases of program simultaneously all over country. This also leaves us without priorities as to where to bring our assistance to bear except in two clear-and-hold operations in progress in Binh Duong and Phu Yen Provinces. We working to get priorities established and adhered to.

2. Operation Sunrise (Binh Duong Province). Regional delegate, General Cao, is initiating establishment two more resettlement villages in addition to three already established under this operation. Also plans two later stages involving three and four additional resettlement villages respectively. Rate development these villages determined primarily by availability of troops for defense.

3. Operation Hai Yen II (Phu Yen Province). Operation continuing with good civil-military coordination but nothing significantly new to report.

4. Montagnard Developments. Various sources continue report flow of Montagnards from mountain area seeking GVN protection. We now attempting assemble complete report as to number involved (apparently about 100,000), just where they are and what their needs are. GVN this week requested air assistance in transporting 400 tons rice from Saigon to meet emergency Montagnard needs. MACV helping on this. GVN also desires additional U.S. help with respect rice, cornmeal, tools, etc. for Montagnards. Shall determine what we can further do on basis report now in preparation.

5. Social Purification Law. President promulgated this law which has now gone into effect. Contains provisions about smoking and drinking of minors, bans on dancing, superstitious acts, prostitution, contraceptives, etc. Like most laws changing social customs it has given rise to much sniping and has caused decline in governmentʼs popularity at least in cities. Also likely increase unemployment among taxi-girls, orchestras, waiters, etc.

6. Australia. Australian Government has announced that it will send group of up to 30 military instructors to Vietnam to provide instruction in jungle warfare, village defense and related activities. Dispatching military officer to Saigon to discuss just how Australian personnel can be used.

Foreign Minister Barwick in Saigon on two-day visit. Publicly indicated he wished get clearer picture of means by which Australia can aid Vietnam. Expressed strong support for Diem and GVN, and admiration of US efforts and stand here.

7. ICC. ICC expected meet June 1 to take majority decision (Indian and Canadian) on DRV subversion and GVN violations Articles 16, 17 and 19. Canadians have now decided not to file addendum making explicit cause-and-effect relationship, but are expected issue public statement in Ottawa along this line. Hanoi continuing pressure against ICC through mass meetings, petitions, veiled threats, etc. to prevent or delay decision.

GVN opened to press May 29 exhibit at General Staff Headquarters on DRV support of guerrilla war in SVN. Released communiqués on recent letters to ICC including proposal of detailed system of ICC controls along Laos-South Vietnam frontier and in western part Demilitarized Zone. ARVN Chief Staff General Khanh who gave briefing to press at exhibit also told press large GVN air operation May 27 may have succeeded in destroying headquarters VC Regional Command for Central Vietnam. Comments: Attendance foreign press corps disappointingly meager, apparently because of repeated postponement of dates for press conference and lack proper coordination and cooperation among GVN officials.

8. DRV. According Liberation Radio, Central Committee of National Liberation Front has issued communiqué stating that U.S. has invaded South Vietnam and will be resisted. Warns Western nationals that since Americans cannot be distinguished physically from other Westerners latter should restrict movements and carry identity cards for their own protection. Implication is clear that Americans are to be considered targets.

Hanoi propaganda media also attempting exploit GVN trial, conviction and death or hard labor sentences on May 23 of 11 students and 1 teacher including those accused participation in grenade attack on Ambassador in July 1961⁶ and attacks on MAAG personnel. Hanoi press lauds students’ “struggle against American aggression.” Hanoi Radio reported demonstrations by “tens of thousands,” including one of 40,000, in Hanoi to protest sentences.

Economic

9. General. Failure SVN economy to absorb estimated level of US-financed revenue-producing imports, and estimated higher GVN expenditures, particularly military and para-military, have led GVN to revise budget estimates for CY 1962. Revised estimates show deficit of 4.8 billion piasters. GVN is of opinion that failure maintain import levels is mainly due to procurement restrictions imposed by U.S. aid policy. Consequently, GVN has requested cash grant of U.S. $25 million to enable “worldwide” procurement of variety of imports, including machinery and fertilizers and, thus, not only help economic development but result in sizeable increase revenues through import taxes.

[Here follow sections on rural affairs, public works projects, and internal public affairs activities.]

Summary Evaluation. In terms revival strength GVN versus Viet Cong during week since last report, I see no significant internal factors indicating any substantial change. International recognition of importance Vietnamʼs struggle against Communist subversion continues to increase (Australian ForMinʼs forthright support and upcoming ICC action), and has beneficial effect on morale here. GVN planning, organization and execution of plans continues to be spotty. Despite some delays and setbacks, I think improvement can be noted. It goes without saying that outcome in Laos will have very great effect on chances of ultimate success here.

Nolting

1. Source: Department of State, Central Files, 751K.5/6-462. Secret. Repeated to CINCPAC, Clark Air Force Base, Phnom Penh, Bangkok, Vientiane, Manila, Paris, Taipei, New Delhi, Singapore, Hong Kong, Hue, and Fuchu.
2. Document 203.
3. Dated May 31 and June 1 and 2, respectively, they imposed a restriction on the transmission of telegrams to the Department of State until 1 p.m. on June 4. The paper copies of the telegrams have been destroyed. (Department of State, Central Files, Microfilm Cassettes)
4. See Document 205.
5. According to the minutes of the June 1 meeting of the Committee on Province Rehabilitation (COPROR/SR/11), Luong requested, and the Committee approved, 100 tons of barbed wire for three provinces in the I Corps area. (Department of State, Vietnam Working Group Files: Lot 66 D 193, 6.1-c GVN, 1962, Agrovilles)
6. See the editorial note, Foreign Relations, 1961–1963, vol. I, Document 86.