To assess the situation and prospects in South Vietnam, with special emphasis upon the military and political factors most likely to affect the counterinsurgency effort.
A. We believe that Communist progress has been blunted and that the situation is improving. Strengthened South Vietnamese capabilities and effectiveness, and particularly US involvement, are causing the Viet Cong increased difficulty, although there are as yet no persuasive indications that the Communists have been grievously hurt. (Paras. 27-28)
B. We believe the Communists will continue to wage a war of attrition, hoping for some break in the situation which will lead to victory. They evidently hope that a combination of military pressure and political deterioration will in time create favorable circumstances either for delivering a coup de grace or for a political settlement which will enable them to continue the struggle on more favorable terms. We believe it unlikely, especially in view of the open US commitment, that the North Vietnamese regime will either resort to overt military attack or introduce acknowledged North Vietnamese military units into the south in an effort to win a quick victory. (Paras. 29-31)
C. Assuming no great increase in external support to the Viet Cong, changes and improvements which have occurred during the past year now indicate that the Viet Cong can be contained militarily and that further progress can be made in expanding the area of government control and in creating greater security in the countryside. However, we do not believe that it is possible at this time to project the future course of the war with any confidence. Decisive campaigns have yet to be fought and no quick and easy end to the war is in sight. Despite South Vietnamese progress, the situation remains fragile. (Para. 32)
D. Developments during the last year or two also show some promise of resolving the political weaknesses, particularly that of insecurity in the countryside, upon which the insurgency has fed. However, the government's capacity to embark upon the broader measures required to translate military success into lasting political stability is questionable. (Paras. 33-35)