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 By the final quarter of 1963, the conclusion was inescapable that despite the considerable improvement in the offensive capabilities of the RVN's counter-insurgency forces, the VC likewise had improved their own capabilities. . This erosion became progressively worse after the November coup. although late in January 1964, the Minh government exhibited some signs of assuming the initiative. This initiative dissolved with the Khanh coup on 30 January. Organizational dislocations brought about by coups have weakened the national direction of most of the counter-insurgency programs underway throughout the country. The large number of personnel changes, both locally and nationally, have played a crucial role in the indecision and lack of energetic direction of the government's programs.

Despite General Khanh's expressed determination to prosecute the war vigorously, available statistics since his coup reflect a gradual decline in small-scale ARVN operations. In addition, Communist forces continue to enjoy the initiative and to execute disruptive operations at times and places of their own choosing…

All available evidence points to a steady improvement in the VC's military posture, both quantitatively and qualitatively, throughout 1963 and the first two months of 1964… [Emphasis supplied.] 54/

In advising the Embassy in Saigon of the intended visit of Secretary McNamara and General Taylor in March, a Joint State/Defense message outlined the issues that it was hoped would be taken up during the visit. Five major subject areas were named, each of which was divided into parts. Objectives were described, in general, as "to produce best possible evaluation of situation, assist you in measures to improve it, and help Washington make future policy decisions." 55/

The first subject area was a Review of Situation, in three parts:, , and. It was suggested that the review should be in executive session limited to the three principals (McNamara, Lodge and Taylor) and the DCM, Harkins, Brent, de Silva, and Rh