In November, 1957, a coalition government incorporating the Pathet Lao was finally established. Using the slogan, "one vote to the right, one vote to the left to prevent civil war," pro-communist parties received one-third of the popular vote and won 13 of 21 contested seats in the elections of 4 May 1958.[43] With these additional seats, the left controlled a total of 16 seats in the 59 member National Assembly.[43] Combined with independents, this was enough to deny Souvanna's center right, neutralist coalition the two-thirds majority it needed to form a government.[43] With parliament deadlocked, the U.S. suspended aid in June to force a devaluation of the overpriced currency, which was leading to the abuse of U.S. aid.[44] The National Assembly responded by confirming a right-wing government led by Phuy Xananikôn in August.[45] This government included four members of the U.S.-backed Committee for the Defence of the National Interest (none of them National Assembly members).[45] Three more unelected CDNI members were added in December, when Phuy received emergency powers to govern without the National Assembly.[45]
In November, 1958, Brigadier General John A. Heintges reviewed the Programs Evaluation Office. He promptly replaced General Brown, and forged a new agreement with the Lao and the French. Integral to the new agreement was the displacement of the French military trainers by Americans. As a result, PEO expanded over twentyfold. Included in the expansion were 149 Special Forces on temporary duty, and 103 Filipino military veterans working for a newly formed front company named Eastern Construction Company in Laos.[39]