Political power was in the grip of the armed Cao Dai and Hoa Hao religious sects. the Binh Xuyen crime syndicate. and a number of other organized groups intent upon obstructing the development of a strong government at Saigon. There was the national army. but the soldiers were demoralized by recent military defeat and the very loyalty of the army was uncertain. Another major problem was the influx of more than 800.000 destitute refugees who had abandoned all they possessed in the north and fled southward from communism. On the credit side. South Vietnams important assets were the firm leadership of Mr.
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refugees