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Declassified per Executive Order 13526, Section 3.3 NND Project Number: NND 63316. By: NWD Date: 2011  near Dau Tieng, and in March, 1959, ARVN had a number of encounters with Binh Xuyen elements in the Binh Duong-Bien Hoa area. There is evidence, though scanty, which indicates that the Binh Xuyen survivors joined with "communist" groups for their depredations; for example, in the 1958 Michelin attack the combined gangster-communist strength was reported to be 300-400. ARVN General Nguyen Chanh Thi, who fought these particular forces, has told of capturing a Binh Xuyen soldier who died under torture without admitting more than that his band had been communicating with communist forces from Tay Ninh province. The general also described capturing in March, 1959, in the same operations, flags identical to that raised in late 1960 by the "National Liberation Front:"

In 1956, the Cao Dai Pope, Pham Cong Tac, crossed the frontier of Tay Ninh into Cambodia with a number of his followers, thence to remain in opposition to Diem. Bay Dom, who had been the deputy of the captured Hoa Hao leader, Ba Cut, also took his forces to the Cambodian border. In 1956, Diem sent Ba Cut, his hair still uncut, to the guillotine. Bay Dom and another Hoa Hao leader, Muoi Tri, then took an oath to avenge Ba Cut, and opened guerrilla warfare against Diem. Some four Hoa Hao battalions are reported to have conducted operations against the GVN continuously through 1962. Muoi Tri in later years openly embraced the Viet Cong cause.

In brief, while Diem's victory over the sects was impressive, it was not wholly conclusive, and the very obduracy and determination which won him early tactical success seemed to impede his inducing the remaining sect dissidents to perform a constructive role in the nation. Rather, his policy invited a Viet Cong-sect alliance against him. That some of the more startling early defeats of Diem's ARVN forces by Viet Cong in 1959 and 1960 occurred in the regions north of Saigon, where lurked Cao Dai and Binh Xuyen remnants, is more than coincidental.

D. Rural Pacification

1. Strategy

Americans tended to look at Diem's skein of military and political successes in 1955 with satisfaction, and to regard thereafter Vietnam's internal security with growing complacency. But Ngo Dinh Diem did not. To the contrary, Diem seemed, if anything, over-conscious of the fact that his test with the Viet Minh lay ahead, and that they posed a threat more dangerous than the sects could ever have been, not only because they were politically more pervasive, and not only because they had taught a generation of Vietnamese peasants the techniques of armed conspiracy, but also because their tenets offered competing solutions to the most pressing problems of the Vietnamese people: land and livelihood. Diem's counter is difficult to fault as a broad concept: ARVN forces would reclaim for the GVN regions formerly held by the Viet Minh; political indoctrination teams moving with the troops would carry the message of Diem's revolution to the people; and then a broad follow-up program of Civic Action — political and social development, land reform, and agricultural improvement Rh