A FORMAL AGREEMENT WAS SIGNED IN SAIGON ON SATURDAY GIVING FULL POWER TO THE CIVILIAN GOVERNMENT, AND SO RESOLVING THE THREE-WEEK OLD POLITICAL CRISIS. BUDDHIST LEADERS OF THE HOA HAO SECT URGED THEIR FOLLOWERS TO SUPPORT THE CIVILIAN GOVERNMENT HEADED BY THE PRIME MINISTER, TRAN VAN HUONG.

THE AGREEMENT WAS REACHED AT THE GIA LONG PALACE - WHERE CHIEF OF STATE, PHAN KHAO SUU, PREMIER TRAN VAN HUONG AND THE ARMED FORCES CHIEF, LIEUTENANT-GENERAL NGUYEN KHANH PUT THEIR SIGNATURES TO THE DOCUMENT.

THE AGREEMENT GAVE THE CIVILIAN GOVERNMENT FULL POWER UNTIL A NATIONAL CONVENTION CAN BE CONVENED IN THE NEAR FUTURE, BUT BY-PASSED THE ISSUE OF THE HIGH NATIONAL COUNCIL, WHOSE SUDDEN DISSOLUTION BY THE ARMY IN DECEMBER PRECIPITATED THE CRISIS.

THE DAY AFTER THE AGREEMENT WAS SIGNED, THE BUDDHIST HOA HAO SECT - ONE OF THE STRONGEST IN THE COUNTRY - HELD A RALLY NEAR SAIGON. THE LEADERS URGED THEIR FOLLOWERS TO SUPPORT THE GOVERNMENT LED BY TRAN VAN HUONG.

NEWS OF THE RESOLUTION OF THE POLITICAL CRISIS WAS WELCOMED IN WASHINGTON. AMERICAN ASSISTANCE TO SOUTH VIETNAM - CURRENTLY ABOUT 600 MILLION DOLLARS (GBP214 MILLION STERLING) A YEAR - WAS NOT HALTED DURING THE CRISIS, BUT DISCUSSIONS ON THE FUTURE LEVEL OF AID WERE INTERRUPTED WHEN THE HIGH COUNCIL WAS OUSTED LAST MONTH.