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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011  nationals. They suggested that Secretary Dulles be advised that:

""a. The government of Prime Minister Ngo Dinh Diem shows the greatest promise of achieving the internal stability essential for the future security of Vietnam.

"b. The U.S. could not guarantee the security of the French nationals should the French Expeditionary Corps be withdrawn.

"c. Possible United States actions under the Southeast Asia Collective Defense Treaty could ultimately afford security to Vietnam equal to that provided by the continued presence of the French Expeditionary Corps.""

In Paris, Secretary Dulles managed to mollify the French. A key development was a message from Malcolm MacDonald, the British representative in Southeast Asia, urging against Diem's replacement at that time. MacDonald, who was among Diem's severest critics — he once remarked of Diem that "He's the worst prime minister I have ever seen" — aligned the British with Dulles, and eventually the French acquiesced in further support of Diem.

The defeat of the sects also opened a domestic political opportunity for Diem. The Popular Revolutionary Committee his brother Nhu had formed during the height of the sect crisis was a "front" of broad political complexion — the membership included prominent nationalists and, as the French had pointed out, two former Viet Minh leaders; it therefore had some substance as what Nhu termed the "democratic revolutionary forces of the nation." The Revolutionary Committee urged the dissolution of the Bao Dai government, and the organizing of general elections for a National Assembly. Nhu acted under its mandate, setting up a popular referendum in which, on October 23, 1955, an overwhelming vote for Diem in preference to Bao Dai was recorded. The Revolutionary Committee dissolved itself on 31 October, apparently under some pressure from Diem and his brother.

3. The Triumph Reappraised

But it is important to note that Diem's military victory over the sects, while impressive, was by no means complete, and was certainly not as decisive as some Americans were led to believe. For example, an NSC report of 1958 mentioned that the Vietnamese Armed Forces were still operating against the sects, and had "succeeded in practically eliminating the Binh Xuyen and Cao Dai forces...." The Deputy Chief, MAAG, Vietnam, stated in April, 1959, that: "The Binh Xuyen group was completely eliminated as a menace. The Cao Dai group was pacified or reoriented....The Hoa Hao had been reduced to a handful of the diehards...." These estimates notwithstanding, Binh Xuyen remnants fought off an ARVN force north of Bien Hoa, in 1956, and marauded along the Saigon River north of Saigon in Binh Duong province throughout 1957 and 1958. In 1958, an insurgent force, among whom Binh Xuyen were identified, sacked the Michelin rubber plantation Rh