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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011  Diem did not involve himself directly in the managing of either the Can Lao or the NRM. The former, as mentioned, was always the creature of Nhu. Nhu also controlled the southern branches of the NRM, but in Annam and portions of the Central Highlands the NRM was the tightly held instrument of Ngo Dinh Can. Can brooked no opposition whatsoever; Nhu, more confident in the regions where the Can Lao was most efficient, occasionally permitted some political activity by minority groups, such as the Cao Dai and Hoa Hao sects, and the Socialists. But that activity was tolerated only so long as it was pro-Diem and supporting, rather than opposing, GVN policy.

These were the ideas and the political apparatus by which Ngo Dinh Diem sought to weld together a nation in the aftermath of Geneva. Their narrowness, their inappropriateness for most Cochinchinese and Annamites, virtually assured that the history of his regime, after its initial successes, would become an almost unbroken record of alienation of one portion after another of the Vietnamese body politic. This process of alienation accentuated the failures of the Geneva Settlement, and ultimately led to Ngo Dinh Diem's assassination.

C. Conflict with the Armed Sects

1. Defeat of the Binh Xuyen

At the time he took office, Diem controlled scarcely a few blocks of Saigon, the capital remaining firmly in the control of Bay Vien and the Binh Xuyen. Beginning in September, 1954, Diem tried to divide and conquer the sects. Four leaders from each of the religious sects were brought into his cabinet in an effort to isolate the Binh Xuyen, and with U.S. assistance he sought to integrate the sect forces into the national army. He enjoyed some initial success in rallying Cao Dai forces, and confident from assurances of direct American aid, he shut down, in January, 1955, the Binh Xuyen concessions in Saigon and Cholon. In the ensuing confrontation, the Binh Xuyen swung the Cao Dai and the Hoa Hao into a United Front of Nationalist Forces, and, although French aid for their forces had formally been withdrawn, continued to draw on French funds and advice. On March 29, 1955, fighting broke in Saigon in which sections of the city were burned. Although a truce was struck, the affair polarized relations between Diem and the sects; between Diem and General Collins, whose advice to conciliate he elected not to follow; and between the Americans and the French, over the viability of Diem. Washington apparently decided at that juncture to temporize with the sects, and to find an alternative to Diem. Before the instructions could be sent to Saigon, however, fighting was renewed. Even as the battle was joined, Bao Dai telegraphed orders to Diem to travel to France. Diem disobeyed, and, convinced of his moral grounds in attacking the Binh Xuyen, committed his forces to combat. His brother, Nhu, cooptedco-opted [sic] a "Revolutionary Committee" to confer emergency authority on Diem. They were immediately successful, and by mid-May, 1955, the Binh Xuyen had been driven into the Rung Sat swamp east of Saigon, and Bao Dai's power in Saigon was broken. Bay Vien escaped to Paris. Rh