I. THE MILITARY SITUATION IN SOUTH VIETNAM
 1. The 48-hour New York's truce between opposing
 forces in South Vietnam was marked by a greater
 number of incidents and casualties to both sides
 than in the two-day Christmas stand-down. A total
 of 169 incidents, 67 more than in the 24-25 December
 period, were reported. US troops lost 17 killed and
 20 wounded against three killed and 23 wounded during
 the Christmas cease-fire. Forty-one Viet Cong
 were reported to have been killed in clashes during
 the New Year's truce period, in contrast to 12 killed
 during the Christmas period.
 2. Most of the incidents reported were limited
 actions involving short bursts of small-arms fire
 directed at US patrols or encampments. There were
 53 instances, however, in which an exchange of fire
 is known to have resulted in casualties. US forces
 initiated the firing on one occasion when USMC elements
 located about 15 miles west of Hue sighted a
 large Communist force taking up positions near the
 marine emplacement. After more than a thousand enemy
 soldiers carrying arms including 82-mm. mortars and
 machine guns had been observed, the US units received
 permission from MACV to disperse the enemy force with
 artillery fire and air strike. No report on casualties
 has been received thus far.
 3. Another major incident occurred when a US
 Navy patrol boat investigating water traffic ten
 miles south of the Cau Mau Peninsula received heavy
 machine-gun fire from a pair of trawlers off-loading
 cargo onto sampans. The fire was returned by the
 US ship and other sea and air units were called in,
 resulting in the sinking of one trawler and heavy
 damage to the other from fire and secondary explosions
 which occurred after the vessel had run aground.
 Six US personnel were wounded in the incident and
 six crew members from one of the trawlers have been
 detained. an investigation is under way to determine
 the cargo and mission of the two trawlers.
 2 January 1967
 I-1
 
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 LYNDON BAINES JOHNSON LIBRARY