The south, meanwhile, constituted the State of Vietnam, with Bảo Đại as Emperor and Ngô Đình Diệm (appointed in July 1954) as his prime minister. Neither the United States government nor Ngô Đình Diệm's State of Vietnam signed anything at the 1954 Geneva Conference.
By the afternoon of 20 July, the remaining outstanding issues were resolved as the parties agreed that the partition line should be at the 17th parallel and the elections for a reunified government should be held in July 1956, two years after the ceasefire.
At the International Geneva Conference on July 21, 1954, the new socialist French government and the Việt Minh made an agreement which effectively gave the Việt Minh control of North Vietnam above the 17th parallel. The south continued under Bảo Đại. The agreement was denounced by the State of Vietnam and by the United States. A year later, Bảo Đại would be deposed by his prime minister, Ngô Đình Diệm, creating the Republic of Vietnam.
In August 1954, in support to the French navy and the merchant navy, the U.S. Navy launched Operation Passage to Freedom and sent hundreds of ships, including USS Montague, in order to evacuate non-communist—especially Catholic—Vietnamese refugees from North Vietnam following the July 20, 1954, armistice and partition of Vietnam.