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derivative filename/jpeg
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363-04340 to 363-04356.pdf
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Digital Object Identifier
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363-04340 to 363-04356
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Title
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Article about Saigon's economy
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Description
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Original title: "Economy", Keever's title: "Communists Seek Economic Blockage of Cities." Article about Saigon's economy and Communist forces' attempts to create food shortages and encourage strikes. 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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ZCZC SAG
YY LJP
ECONOMY 1 (NORMASS/DEEPE)
20
SAIGON, MAY 19 The Paris peace talks plus the Communists' latest,
unsuccessful ground offensive into the fringes of the capital has thrown a dark
cloud over South Vietnam's economy.
Two other significant factors are also considered to be contributing
to this republic's cloudy economic picture: first, the Communists gradual and
partially successful attempts to strangle the urban centers economically,
förmenting a food shortage,
the Communists'
central government.
and second, the Communists
thus
threat resulting from
against the
recent appeal to for urban workers to "uprise"
--more reuter
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zczc sag
yy 1jp
economy 2 (normass/deepe)
or
The general state of the economy is regarded as either "serious"
"very serious" by Vietnamese specialists-and they predict it to wr worsen in the
longer-range future. Some Western economists report fearing another lethal round
of inflationary prices later this year.
Some Vietnamese businessmen thought President Nguyen Van Thieu's announcement
this week-end of a complete change in the Cabinet and the Prime Minister had shed
a few rays of encouraging sunlight through the dark economic clouds. One typical
comment by a Vietnamese businessman:
"The change in the government can give us a new hope that will be very
narrow and thing thin. But Tran Van Huong (the newly-named Prime Minister)
will h have the same problems as Nguyen Van Loc (the outgoing Prime Minister).
The only hope is that Mr. Huong can avoid or prevent some problems rathamikanmxn
mmingmatasete caused by lack of decision or by running after, instead of de
ahead of events."
--more reuter
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zC2c sag
yy 1jp
economy 3 (normass/deepe)
South Vietnam's highly complex war-time economy is actually, in simplest
file the rice
not
terms, two separate economies inqatel inadequately complementing each other.
The
one economy is based on local production-largely of agricultural commodities
ing the
in the countryside. The war in the countryside, increasingly bitter since 1964,
Ake key index
has heavily damaged, if not devastated this rural economy, for a number of reasons,
including a ve vast refugee migration of peasants to the cities.
of this disruption is rice, the country's chief rural commodity and principal
foodstuff.
South Vietnam in the peak year of
rice. In 1968,
exported 300,000
South Vietnam is shçedu scheduled to import
Vietnam 18
tons of U. S. American rice.
ground
-more reuter
And incre
tons of
index
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zCZC sag
yy 1jp
economy 4 (normass/deepe)
But, while the United States can file the rice vacuum, it can not supplant
all of the other goods of the countryside and services in the cities,
called nuoc mam,
providing the Vietnamese special fish sauce,
such as provicing
eaten at each meal,
To dominat
or furnishing haircuts and cyclorides. The inflation which has resulted in the daily
resultited
lives of Vietnamese average Vietnamese has
partill partially reflects the Communists'
if not to starve,
ted from the scarcity of necessities
policy of attempting to strangle economically,
the urban, food-deficit centers.
On May 15, an official American weekly economic index of Saigon retail prices
showed a two per cent drop in the cost of living for average Vietnamese
over the
preceeding week-when fighting raged in the outskirts of Saigon during the Communists's
second ground offensive near the capital. But, on the longer tem, the index also
showed a 24 per cent inde ind increase in prices over a month ago, a 35 per cent
increase since the beginning of 1968 and a 65 56 per cent increase over a year ago--
May 15, 1967.
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zcze sag
yy 1jp
economy 5 (normass/deepe)
up 20%;
Samples of essential items in Vietnamese daily life which have risen
dramatically in price since as a year ago in May are: pork bellies, up 115%;
beefsteak, up 486 48%; fish, up 65%; live chickens up 43 43%; nuoc mam,
condensed milk, up 100%; onion shoots (commonly used in Vietnamese soups), up
344% Chinese cabbage, cabbage, up 100%; duck eggs (a nutrious delicacy),
white calico, up 73%;
flew firewood, up 42%;
upp 131%; cucumbers, upp 100%;
newspapers, up 67%; haircuts, up 75%; busfare, up 72%; cyclofare, up 75%.
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zC2c sag
yy ljp
economy 6 (normass/deepe)
"The Viet Cong target to make an economic blockade of Saigon is now very clear,"
one Vietnamese economist explained. "The Ministry of C Agriculture is trying to counter
this by fostering production of foodstuffs around Saigon, by giving alot of credit
to small farmers in the suburban areas, especially to raise chicken chickens and pork.
It is the poor people mostly, including the underpaid Vietnamese government troops,
that suffer most by these rising food prices, because the poorer you are, the more
you spend proportionately on food.
"We must also recognize the tha that the Viet Cong have a big budget inside
South Vietnam of about 12 to 15 billion piastres (one-sixth the size of the Vietnamese
government budget) and they are competing with us to buy goods this side to buy
scarce goods, especially foodstuffs and par pharmaceuticals. In the countryside, they
control much goods in at the peasant level. Most of the producers peasants must
A
pay the Viet Cong a tax-either in piastres or in foodstuffs.
What the Viet Cong want now
is the economic blockade of the city, and they are not entirely fialin failing. Thier
organization for act economic z action is sometimes much more efficient than this
side. They have their own tax collectors-but the Vietnamese government can not collect
taxes from the people. The Viet Cong en control the means of transport; all trucks and
barges and busses are under their control. All the forestry and logging buss businesses
are under their control."
--more reuter
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zczc sag
yy 1jp
economy
3 (normass/deepe)
The second of South Vietnam's economies is based on imports. This
largely artificial program is immense--al ann amounting to more than half-billion U.S.
dollars a year. Directly or indirectly, this import program is American financed-
either by the American government or the American GI's. There are three separate
Commercial Import
facets to this program. First, is the official American economi
import (program, totallying $100 million for fiscal year 1968.
ra
Under this program,
the
American government finances essential imports to Vietnamese businessmen. The American
government pays the American producer in dollars, but the Vietnamese importer pays
into a joint Vietnamese-American "counterpart fund" the equivalent in Vietnamese
piastres. Thus counterpart fund pays some A official American piastre expenses in Vietnam
and the remander is put into the Vietnamese government budget, which is largely a budget
needed to run the Vietnamese side of the war. This program thus in effect promotes
American business in America, fosters the Vietnamese economy economic development,
dampens the Vietnamese inflationary spiral by bringing in essential consumer items
and helps fine them pay, feed and cloth the Vietnamese armed forces.
--more reuter
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zczc sag
yy 1jp
economy 8 (normass/deepe)
The second facet to the import program is similar, but more simple. It is
in effect a vagi axy giveaway program, rather than at the government-to-
government level, rather than a commercial program.
The American government
"grat "grants" or gives to the Vietnamese government supposedly agrivu agricul
"Public Law 480
agricultural surplus items--in this case mostly rice-under the P400 program.
The commodity is turned over to the Vietnamese government free, which in turn sells
through regular ea commercial rice-deale4 dealers the mice to the Vietnamese
man-on-the-street.
During fiscal year 1968, this will amount to roughly $200 million.
The piastre gains from this program also go largely into the Vietnamese budget to
finance their side of the war.
-more reuter
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ZCZC sag
yy 1jp
economy 9 (normass/deepe)
The third facet is a Vietnam war-time anamoly. It is the Vietnamese government
foreign exchange acquired at a rate of nearly $1 million a day by selling piastres
to American GI's in reut return for American dollars. The CI's spend the piastres
on the local economy, for sour sour souvenirs or soupe chinoise; the Vietnamese
government uses the hard-currency to finance Vietnamese businessmen importing a wide
array of conside consumer items-such as Honda motorbikes from Japan., in the hopes
dampen
the imports will absorbe some of the inflation and to keep Vietnam economically vial
viable. While the pf prices of locally-produced goods has have risen dramatic
the prices of imported goods, excluding construction materials, has been dropping
The hinge for these import programs in one form or another is the Vietnamese and
Chinese businessmen in the cities, who under the risks--and sometime in the past the
windfall gains--of importing. But--if the businessmen refuse to import, then the
inflation worsens in Vietnam, the import sector of the Vietnamese economy faces the
prospect threatening prospect of collapse, and the Vietnamese govemment budget
runs more and more at a deficit.
This is now considered the current danger. Businessmen are afraid to run the
risks of importing.
more reuter
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zC2C sag
yy 1jp
economy 10 (normass/deepe)
"The requests by businessmen for import licensing is the thing to watch,"
one Western economist explained. "When the Communists' Tet offensive hit (in late
January), import licensing froze. Businessmen didn't want to run the risks of
importing. Then the licensing started gradually to import improve and by April it was
good. Then the sec Communist second ground offensive hit (on May 5). Now it will be
interesting to see if that will have a good effe big effect."
The mood among Vietnamese importers and economic observers, however,
is pessimes pessimistic-siting a variety of factors ranging from the Communist
war-time offensives to the Paris peace talks. toViETNI
--more reuter
GOVERN
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zczc sag
yy 1jp
economy 11 (normass/deepe)
One reliable economic os observer expressed the "peace" Paris peace dilemna for
Vietnamese businessmen this way::
"If the
pa
peace talks break down on a solution for South Vietnam,
then
there will be more Communist urban attacks on the cities and the factory owners
and industrialists will be hurt as they were during the Tet offensive." For example,
during the Tet offensive, the Viet Cong holed up in several textile factories--and
American heleio helicopters came in and flattened those plants. Vietnam's textile
industry is now virtually extinct gone.
"But,
on the other hand, if the peace talks do bring a solution to the
war in the Southn, South, then the whole var-time economy must be reconverted to a
peace-time economy--and that may even be s worse than the present state of affairs.
But, that peace-time economy is will not be under the control of the anti-Communists--
the capitalists and the businessmen.
Soe they do not want to invest in Vietnam--they
want to get their money out of Vietnam."
-more reuter
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zC2c sag
yy 1jp
economy 2 (normass/deepe)
explained the typical mood inbusiness circles here:-
Or as an influential Vietnamese businessman explained:
"The first
order of the day for any businessman is to go up to his roof to look at his factory
SHOP.
or plant, and then he just prays to God that he doesn't see a column of smoke coming
up from there.
and now
"And the businessmen don't I see any hope for improvement at this moment.
After the first Communist offensive into the cities we had a second one,
maybe we'll have a third and fourth. The Communists are all around Saigon--they
are trying to make this a Dien Bien Phu," he said referring to the famous battle
that brought a Communist military victory over the Fench French colonialists and then
Communist rule of North Vietnam.
"50,
the businessmen are very upset because they feel they are undergoing
many risks. At any moment, a shell can fall on their factories. The government is
talking about some type of war-damage insurance, but that hasn't come through yet and
the businessmen are complaing a complaining about about the lack of decision by the
government-in fact, there's no decision at all.
more reuter
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zczc sag
yy 1jp
economy (normass/deepe)
"Not many businessmen think the Thieu government (under President Nguyen Van
Thieu) can stand the polic political, military and economic offensive by the Viet Cong,
the continued. "And they think things will be wao worse after the Paris talks.
"The businessmen are av afraid of the Paris peace talks because they
see a coalition government coming up out of it for South Vietnam," he explained.
"But, this only o will only give the businessmen time to get their money out of
Vietnam. A coalition government is very dan politically dangerous here, because it
means recon recognition of the Viet Cong as a political force--and they are the strongest,
united political force in the country. Hence, they'll take over the coalition.
And the buss businessmen know the Communists are not going to allow a free enterprise
type of system at all."
--more reuter
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zC2c sag
yy 1jp
economy 14 (normass/deepe)
Another factor bringing uncertainty to the conom economic picture is the
Communists's fiery uprising appeals to the Saigon workers, which would produce
further economic dislocation, if not chaos, in the cities.
visibly brought about they
Thus far, the
Tabout their desired objecti
Communist appeals have not surfaced their announced effects of "carrying a general
or and the
strike" in the Saigon prot, port, which would tie up import program,
"sensitive factories and agencies." But, the underground Communist activities have
Communist underground agents, propagandais propagandists and fifth-com columnists
have been circulating among the low-income urban-masses for years,
reliable
sourves report, and thus this latent danger could erupt almost anytime without too
notice.
much reaso
"Men and women working in these factories...should carry the general strike
to occupy all these factories and installations important for the enemy's war effe
effort," the Viet Cong said in an appealt radio appeal to workers in the Saigon
area last week. "They should destroy what is needed to be destroyed and to save
what is needed to be saved."
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zczc sag
yy ljp
/ 5
15
economy (normass/deepe)
The Viet Cong also issued their standard appeal for the workers to "uprise
and move forward to carry out man important achievement achievements,"
"exterminate" the police,
to
police intelligence informers, government precinct
to
workers, to teak up police files mandatory for governme governing the urban
population, to join the Viet Cong in either self-defense or combat units,
support the Viet Cong by give giving them food and intelligence information transporting
and hiding weapons and war wounded and to refuse to sever the Vietnamese government
armed forces.
-more reuter
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zC2c sag
yy 1jp
economy 16 (normass/deepe)
Last year,
an American officer fighting in the Mekong Delta explained in
laymen's language, but bitter tones/ his view of the raw view of the re raw but
realistic view of Vietnam's economy:
"The Vietnamese countryside is vein being bled white by the war; it is
becoming a desolate wilderness, f if not a gravey giant graveyard. But, the
Vietnamese cities are being relatively splendorous, lavish superstructures, profitting
from more refugee-laborers and more war-time spending. I've never seen such
penthouse appar apartments and lavish living in the middle of a war.
But, now,
"
amynxarximm seven months later, cracks are appearing the
urban superstructure--and it is beginning to totter.
-end retuer reuter
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ac2c sag
ᎩᎩ ljp
editor 1 (normass/deepe)
SAIGON, MAY 18-prohayward.
sorriest we spent the day
tracking down the government change instead of getting the economic
piece off to you. The political situation seems too murky to write
Solid
an interpretive about at this time and viewve "cabinet" piece of
May 13, I decided to wait. The new cabinet is expected to be announced
we'll try to file a long b
Monday, or at the latest Tuesday,
piece then.
I've received your Khe Sanh message, and will do my best
to try to get to Danang or Khe Sanh to answer your questions.
I
窿
N
awhile
feel I must stay Saigon a
new Cabinet come in--and then to wait
However,
to watch the
ile to see the reaction
of the Vietnamese generals, who seem to be unhappy about the change.
There is alot of rumbling about coups etc. and the political situation
is now very unsettled. Is there any chance John Hughes coming in
And is there any
to help out--there are just too many fronts to cover?
chance of John coming in
late this month or in June?
so that I might be get a two-week vacation
It's been a year since I've had a vacation
and I'm really tired. Thanks for your message.
Regards
Bev.
==end reuter
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Date
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1968, May 19
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Subject
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Saigon (Vietnam); Mặt trận dân tộc giải phóng miền nam Việt Nam; Vietnam (Republic); Vietnam War, 1961-1975; Vietnam War, 1961-1975--Economic aspects--Vietnam (Republic); Vietnam War, 1961-1975--Blockades; Scarcity
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Location
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Saigon, South Vietnam
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Coordinates
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10.8231; 106.6336
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Size
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45 x 26 cm
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Container
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B10, F33
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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
