The conflict in South Vietnam remains basically unchanged. As Operation JUNCTION CITY ended, elements of the U.S. 1st and 25th Infantry Divisions, the 11th Armored Cavalry Regiment, and the forces of the Army of the Republic of Vietnam swung back toward Saigon to conduct another clearing operation, MANHATTAN. This took peace in the Long Nguyen base area just north of the previously cleared "Iron Triangle."

     South Vietnamese Armed Forces became more active and capable under U.S. advisors. During the year the Vietnamese Special Forces assumed responsibility for several Special Forces camps and for the CIDG companies manning them. In each case all of the U.S. advisors withdrew, leaving the Vietnamese in full command.

     With an increased delegation of responsibility to them, the South Vietnamese conducted major operations during 1967, and, in spite of VC attempts to avoid battle, achieved a number of contacts.

    Despite the success of U.S. and South Vietnamese Army operations, there were indications in the fall of 1967 of another enemy build-up, particularly in areas close to Laos and Cambodia.

     In late October, the VC struck again at the Special Forces Camp at Loc Ninh. Fortunately Vietnamese reinforcements saved the camp. At the same time, approximately 12,000 VC troops converged on a Special Forces camp at Dak To. This camp was located in northern Kontum Province, where the borders of Laos, Cambodia, and South Vietnam meet. In response to this potential threat, the U.S. and South Vietnam committed a total of sixteen battalions to the region to counter a disturbing enemy resurgence at Kontum and Loc Ninh.