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As a wealthy Catholic, Diem was viewed by many ordinary Vietnamese as part of the elite who had helped the French rule Vietnam; Diem had been interior minister in the colonial government. The majority of Vietnamese people were Buddhist, and were alarmed by actions such as his dedication of the country to the Virgin Mary.
Beginning in the summer of 1955, he launched the “Denounce the Communists”campaign, during which communists and other anti-government elements were arrested, imprisoned, tortured, or executed. Diem instituted a policy of death penalty against any activity deemed communist in August 1956.
Opponents were labeled Viet Cong (“Vietnamese communist”) by the regime to degrade their nationalist credentials. As a measure of the level of political repression, about 12,000 suspected opponents of Diem were killed in the years 1955–1957 and by the end of 1958 an estimated 40,000 political prisoners had been jailed.
In May, 1957, Diem undertook a ten-day state visit to the United States. President Eisenhower pledged his continued support. A parade in New York City was held in his honor. Although Diem was openly praised, in private Secretary of State John Foster Dulles conceded that he had been selected because there were no better alternatives.
Robert McNamara wrote that the new American patrons were almost completely ignorant of Vietnamese culture. They knew little of the language or long history of the country. There was a tendency to assign American motives to Vietnamese actions, and Diem warned that it was an illusion to believe that blindly copying Western methods would solve Vietnamese problems.