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derivative filename/jpeg
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363-04546 to 363-04551.pdf
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Digital Object Identifier
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363-04546 to 363-04551
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Title
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Article about the South Vietnamese economy
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Description
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Original title: "economy", Keever's title: "South Vietnam's Economy Shows Recession and Inflation." Article draft about the economic slowdown in South Vietnam and its effects on the civilian population. Written for the Christian Science Monitor
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AI Usage Disclosure
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Draft transcripts were automatically generated via Google Document AI and are currently under review. Please report significant errors to Archives & Special Collections at archives@unl.edu.
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Transcript
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- Page 1
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zozo: sag
yy nnm
economy 1 (normass/deepe)
SAIGON, AUGUST 1-For M months, the matronly middle-class
Vietnamese housewife had been eying a four-burner kerosene stove with
oven. She wanted to buy it to replace her two-burner stove,, and, she
thought, with the new over, she could bake cakes for her three children.
But, for months, the price was too high expensive-nearly $300.
Then,, came the rocket attacks into Saigon in June, followed by
a fot volley of official predictions of yet another Communist offensive
into the capital. The Chinese businessman, in haste to liquidate his
stocks, dropped the priv price of the stove for the housewife to $150.
Still, she did not buy.
=(more reuter
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zeze sag
Jy nnm
economy 2 (normass/deepe)
"I wast torn in two directions," the frustrated housewife explained.
"First, we don't know how long we will live--so why shouldn't I buy
the stove and enjoy it. My children would love cakes from the oven..
HAND
But, on the other because of the shelling and future fighting,
I wouldn't have time to enjoy the stove.
And if I had to evacuate my
house, I'd only be able to carry money, but not the stove. I decided,
even though it was a bargain, to save my money."
Psychologically,
the decision of the unhappy housewive housewife
reflects the high state of fear and str mental paralysis that has
gripped Saigon in the wake of preroms official predictions of
another Communist offensive.
And, economically, hedersi the decision of the hem housewife,
and thousands others like her, has spun Vietnam into a surprising
A GENERAL.
phenomenon--a recession within agen
economic
STATE OF
milationary
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2020 sag
yy nnm
economy 3 (normass/deepe)
substantial
lack of confidence among Saigon consumers, who prefer to save their
money rather than purchase non-essentials.
The threat of a new Communist offensive has created a
Businessmen, too, have been
hit by the same fever and are we unwilling to invest either in businesses,
real estub estate or stocks of mercante merchandise.
The American and
Vietnamese governments' import programs--once an anti-inflationary weapon
has slumped badly in movements of goods internally or in applications for
future imports. The unwillingness of Saigon's mercantile set to
run the risk of its importing and holding stocks of goods has caused
the Minister of Economy, Au Ngoc Ho, to warn them recently that the
Vietnamese government might step into the import business.
==more reuter
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2020 SAL
yy nnm
economy 4 (normass/deepe)
Among
But like the economic stagnation in the investor and consumer
sectors demands for imported goods, foodstuffs from the provinces,
cigarettes, locally-made soft drinks, haircuts and newspapers have been
host hopscotching upwards in price. The Saigon retail price index of
locally-produced goods and services rose three per cent in one week;
four per cent in one months 21 per cent since the beginning of 1968 and
28 per cent since July last year. My Much of this reflects increased
transportation costs caused by insecurity of roads and waterways from
the ricebowl area south of Saigon.
PRICES of
But, the recessionary trend in imported pre goods is
considered surprising here in the face of substantial monetary new
monetary ofas creations,
which portent ominous potential inflationary
Pic pressures in the future.
The Vietnamese government oreanking
piastres off the printing presses at the rate of 40 billion piastres
($400 million) this year-or nearly $3.3 million a month, thus rapidly
increasing the prospects of runaway inflation if the confidence of Saigon
housewives and investors is restored so that they start spending their
accummlations of savings.
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Boso sag
yy num
economy 5 (normass/deepe)
In a three-month period ending January of this year, the Vietnamese
government's money supply grew at an annual rate of 99 per cent, compared
to a 25 per cent rate in the previous ten months, informed sources report.
Vietnamese government expenditures are estimated to reach 99 billion
piastres this year, with revenues estimated at 56 56 billion,
a heavy 43 billion piastre deficit.
The
leaving
sub s substantial deficit spending and printing of nes new
money has creat created the impression that the Vietnamese piastre
is worth less and less to the extent that another dev devaluation is
widely rumored--even though the move is repeatedly denied by Prime
Minister Tran Van Huong
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zcze sag
Jy nnm
economy 6 (normass/deepe)
One ecomend Vietnamese economic spe
specialist explained:
"The increase in money supply has caused the Vietnamese government
to be concerned about inflation later this year. But, there's no
indication t thus far that there's any inflation caused by
the increase in money supply. Most of the price rises of locally predsed
goods is ouased by the Communist offensives or blowing up bridges-so
produce can not got into the cities from the countryside
Right now,
the economy is sluggish; investors are holding off;
people are not spending on luxury goods. They are saving their money
for a rainy day and we've had enough rainy days to know that is good
consumer behavior."
He explained that at an earlier time in Vietnam ten billion piastres
in new money supply could have been very inflationary, but now,
S
when
Not Repeat Not
there little sponding, forty billion plastres is new considered
dangerous. He explained that the psychological fear of more Communist
military attacks around Saigon had beneficially curtailed spending at a
time when the Vietnamese government needed to print more money and to
spend more money for the increase in its armed forces.
"In this sense,
all these official predictions about another
Communist offensive is one of our more helpful economic stabilization
weapons," he équipped.
==end reuter
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Date
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1968, Aug. 1
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Subject
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Civilians in war; Vietnam War, 1961-1975--Economic aspects--Vietnam (Republic); Inflation (Finance); Recessions
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Location
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Saigon, South Vietnam
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Coordinates
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10.8231; 106.6311
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Size
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20 x 26 cm
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Container
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B10, F38
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Format
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dispatches
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Collection Number
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MS 363
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Collection Title
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Beverly Deepe Keever, Journalism Papers
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Creator
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Keever, Beverly Deepe
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Copyright Information
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These images are for educational use only. To inquire about usage or publication, please contact Archives & Special Collections.
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Publisher
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Archives & Special Collections, University of Nebraska-Lincoln Libraries
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Language
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English
