Diệm's position at the time was weak; Bảo Đại disliked Diệm and appointed him mainly to political imperatives. The French saw him as hostile and hoped that his rule would collapse. At the time, the French Expeditionary Corps was the most powerful military force in the south; Diệm's Vietnamese National Army was essentially organised and trained by the French. Its officers were installed by the French and the chief of staff General Nguyen Van Hinh was a French citizen; Hinh loathed Diệm and frequently disobeyed him.
Diệm also had to contend with two religious sects, the
Cao Dai and
Hoa Hao, who wielded private armies in the Mekong Delta, with the Cao Dai estimated to have 25,000 men.
The Vietminh was also estimated to have control over a third of the country.
The situation was worse in the capital, where the
Binh Xuyen organised crime syndicate boasted an army of 40,000 and controlled a vice empire of brothels, casinos, extortion rackets, and opium factories unparalleled in Asia. Bảo Đại had given the Binh Xuyen control of the national police for 1.25 m USD, creating a situation that the Americans likened to Chicago under Al Capone in the 1920s.
In effect, Diệm's control did not extend beyond his palace.
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