Information as of 1600
 2 January 1967
 SC No. 00872/67
 HIGHLIGHTS
 The Communists lost seven or eight MIG-21s to
 day in the largest air battle of the war. The
 New Year's cease-fire period was marked by over 160
 Communist initiated incidents, over 50 of which
 resulted in casualties.
 1. The Military Situation in South Vietnam:
 The New Year's cease-fire was marked by over 160 incidents,
 with over 50 resulting in casualties
 (Paras. 1-2). US patrol boat intercepted apparent
 Communist sea infiltration attempt off Cau Mau
 Peninsula (Para. 3). No significant fighting reported
 since end of cease-fire (Para. 4).
 II. Political Developments in South Vietnam:
 The Constituent Assembly is scheduled to reconvene
 tomorrow to begin debate on individual chapters of
 the constitution (Paras. 1-2). Political views of
 Southern Renaissance bloc leader expressed to US
 Embassy officers (Paras. 3-5). Reliable source
 reports that police director Loan is considering
 several plans to create political crisis in event
 military officers are precluded from running for
 office by the new constitution (Paras. 6-7). A
 South Vietnamese source reports that corruption
 among high-ranking officials; in Binh Dinh Province
 is threatening the province's revolutionary
 development program (Paras. 8-9).
 III. Military Developments in North Vietnam:
 North Vietnam lost seven and probably eight MIG-2Is
 today in the largest air battle of the war (Paras.
 1-3). A substantial increase in ship movements
 off the southern coast of North Vietnam was noted
 during the cease-fire period (Para. 4).
 2 January 1967
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 SANITIZED
 Authority ?? 78-222 CIA 3-19-84
 By ??, NARS, Date 8-8-84
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 LYNDON RAINES JOHNSON LIBRARY