Analysis of the present situation. The situation in South Vietnam is deteriorating. Even before the government sank into confusion last week, the course of the war in South Vietnam had been downward, with Viet Cong incidents increasing in number and intensity and military actions becoming larger and more successful, and with less and less territory meaningfully under the control of the government. Successful ambushes had demonstrated an unwillingness of the population even in what were thought to be pacified areas to run the risk of informing on the Viet Cong. War weariness was apparent. The crisis of the end of August—especially since the competing forces have left the government largely “faceless” and have damaged the government’s ability to manage the pacification program—promises to lead to further and more rapid deterioration.