SITUATION IN SOUTHEAST ASIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200150040-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: December 29, 2004
• Sequence Number: 40
• Publication Date: June 5, 1964
• Content Type: OPEN

Approved For'f elease 2005/01/05: CIA-RDP66B004 000200150040-8
1964 CON tSSIONAL RECO1 fl SENATE 12357
I Cannot but,recall with tenderness the be able to move against the crime syndi= have called the acquitta).a in the case the
great heroism of the Korean people dur- cote for willful failure to to comply with worst jolt to justice here in 25 years.
ing our encounter with the Communists this Federal law. Thus, a Truth in Lend- From the records could be read stories of
on their land about a decade ago. The ing Act would, like the income tax laws, how the gangsters used the juice racket to - of businesses.
under investigation That
Koreans endeared themselves to the serve as a valuable adjunct in the arsenal angle control reportedly is legitimate
by
members. of our nilitary. _ of weapons to help stamp out the orga- the Senate Rackets Committee.
..Dearing with the .various areas of'the nized crime syndicate. Businessmen, in emergency trouble and
world nto_lilch our' military men have I hope that the Banking and Currency desperate for cash, apparently borrowed
been, sent; t' do- riot know of any area Committee will meet soon so that the from the loan sharks as a last resort. Some
where the people have commanded the members of the committee will have an of those borrowers fell hopelessly behind,
affection of the tropPs of the United opportunity to- vote on the bill and so and the gangsters took over their properties.
. By such merciless usury, the mobsters got
States as deeply as those in Korea. that the Senate may have opportunity
control of a big West aide restaurant, a
With is today are two members of the to express its will on what I think is a North Side bowling emporium, and other
opposition party of the Korean l'arlia vitally needed reform measure. enterprises, investigators said.
meat and one member of the majority Mr. President, I ask unanimous con- Most of the borrowers were persons with
party. Mr. Kil Chae-ho is a member of sent that the article from the Chicago almost total financial irresponsibilitY, the
the majority party; Mr. Han Tong-Sok Sun Times be printed at this point in the ledgers kept by Sarno and Cardi Indicated.
They included ex-convicts, drunks, compul-
sive Mr. Hong Ik-pyo are members of RECORD. sive gamblers, forgers, and thieves.
the minority. party. There being no objection, the article Often they paid the face value of their loans
It is my honor and privilege to present was ordered to be printed in the REC- many times over in weekly juice and still
these., gentlemen of the Korean Parlia- ORD, as follows: remained in debt for the original amounts.
meat to my colleagues in the Senate. JuIcE LEDGERS DISCLOSE $111,000 PROFIT IN Instructions from the enthusiastic collectors
YEAR were blunt:
[Applause, Senators rising.]
(By Ray Brennan) COSA NOSTRA BOSSES
"
TRUTH IN, .LENI)ING BILL WOULD
HELP STAMP OU'T^ COSA -NOSTRA
JUIC1; 116KET
11 Mr, DO17CrtAS. Mr >?resident, last
year Joe, 'alachi, the Cosa Nostra hood-
lum, testified before the McClellan in-
vestigation subcommittee that he liad
made Ili Is Hying over many years 1 y en-
gaging. in the illegal small loan business:
It was disclosed that most -of Valachi's
customers were residents of his neigh-
borhood and that-they had been paying
anywhere from 400 to 500 percent annual
interest in order to borrow money
though the" Cosa Nostra.
Valachi's :testimony also disclosed that
the loan shark'racket or "shylocking" as
Documentary evidence that two accused
syndicate hoodlums collected $390,225 from
the juice racket in a year has been obtained
by the Sun-Times.
Records of 127 underworld loans had been
Kept-ill advisedly, investigators said-by
two former Chicago policemen turned mob-
sters.
The payoffs, enforced by viloence and
threats, were made by unhappy victims who
borrowed a total of $278,780. The profit
came to $111,445-with no income taxes
paid, presumably.
Accountants said the true figures un-
doubtedly were much higher because records
of many additional loans were destroyed
after they were paid in full.
-..~ LEDGER SSiRETS
Confiscated by police intelligence divi-
sion men were ledger sheets showing de-
Bring in the money. We dont care now
you get it, but bring it. Rob a place. Cash
a bum check. Send your wife out on the
street."
'Cardi and Sarno were only two of many
collectors employed by two Cosa Nostra
bosses-little William (Wee Willie) Messino,
45, and tall, balding Joseph (Joe Gags) Gag-
liano, 49-investigators declared.
Nobody knows the magnitude of the
racket, but it was big enough to have caused
at least eight murders in 4 years, police offi-
cials said.
A detective posing as a mobster obtained
the records from Cardi's home at 5241 West
Jackson within a few minutes after his
arrest.
Who hoodlum's wife gave. up the documents
after the detective told her: "Dick has been
arrested and the boys want the books before
the cops get here with a search warrant"
Intelligence division men, led by Sgt.
I understand it is called Ili- the, Cosa tailed figures on 127 loans. All were exam-
Ti
t
b
S
Nostra, Is a primary source of income
for the crime syndicate.
Yester'day_ the Chicago Sun-Times ex-
posed' another sordid chapter of 'the in-
volvement. of the Cosa Nostra `in-the
illegal small loan racket. In the 'Mid-
west the'Cosa Nostra's small loan activ-
ities are known as the "juice racket."
Yesterday's Sun-Times `article explains
in detail exactly how the racket is work-
ing in Chicago and also explains-why the.
most recent attempts to' convict hood-
lums in them juice racket have failed.'
'One of the side benefits of S. 750, the
truth in lending bill, which has now been
stalled in the Senate Banking and Our-
help
it would
Is
seamy Committee I
The keepers of the books were identified But to the juice racketeers, Weisphal was
small loan or
a
Nostra's
stamp out the Coss as Chris (Dick) Cardi, 31, a 210-pound a
juice racket. good risk. He was an accomplished con-
Juice and Albert A. Sarno, 29, who poses . fidence man. He had cashed hundreds of
The bill requires that all lenders fully as an Oa,k Park homebody and family man, worthless checks around the country and he
disclose to the borrower in writing the Two weeks ago, they and three other de- could be. persuaded to cash more.
Costs of the loan or credit 'transaction. fendants, were acquitted of kidnaping, tor- Because of his long criminal record, it was
The finance charge would have to be turing and robbing a borrower, Joseph Weis- unlikely that he would complain to the law.
stated in two ways, in terms of the phal, 47. THE 13 WEEKLY PAYMENTS
dollars and cents charge and in terms Weisphal, an ex-convict and financial mis-
fit, became the first Chicagoan ever to dare Weisphal made 13 rcr weekly payments
of, the true annual, interest rate. Thus, fora total of $650, , the e record showed. Each
the Cosa -Nostra's juice men would be go to the law against the juice terrorists. He Tuesday he went to the mob's headquarters
required 'to put in writing the fact that has predicted he will be murdered as a in a restaurant on West Chicago Avenue and
result, left the money in an envelope for "Willie,"
they are charging exorbitant interest Cardi and Sarno were paid employees, the exconvict said.
rates, as high as 1,000 percent per year, hired to make collections by terrorism, and He had been passing bad checks to pay
according to the Chicago Sun Times. the big money went to their bosses in orga- the juice, and he was arrested on a Highland
However, if, as is most likely, the Cosa nized crime, investigators said park charge. The gangsters got him out
Nostra refused to disclose the cost of LEGAL TECHNICALITY On bond and, he said, Messino told him to go
credit to the borrower ' Re W a 200.6/*L/0 . ~aAtR t6tBO0 , 0d 40-$
quired by the proposed~til ledgers were excluded as evidence at the wefs~t e eper in debt. The ledger
law, the Justice Department would then Weisphal trial. Law enforcement officials reflected it when the loan sharks required
mes repor
fined
y a
un-
er. Michael O'Donnell, have worked on the fig
One of the account sheets was disclosed ures for 6 months. They have provided
weeks ago, but the others were kept secret. leads for future prosecutions.
Police, the State's attorney's office and the BARRED AT TRIAL
justice department had the only copies. But Judge Nathan M. Cohen ruled them
The ledgers showed loans ranging from inadmissible at the trial of Cardi, . Sarno,
$100 to $31,000, all at exorbitant interest
rates of up to 20 percent a week. The bor- Messino, Gagliano and John (No Nose) Di-
rower of $3,100 agreed to repay $4,100, for Fronzo, .35, because they were obtained by
example. trickery.
Investigators said the loan sharks' net re- One of the sheets showed that Weisphal,
turns , would, have been. multiplied many the fast-talking ex-convict and check forger,
times had not the police crippled the mob borrowed $1,000 early in 1963 and agreed to
with arrests last December 9. pay back $1,800 at $50 a week.
Collections stopped at least temporarily, at Weisphal probably would have been
that time, with tens of thousands of dollars laughed out of any Chicago bank or legiti-
in principal and interest remaining unpaid mate loan agency, if he applied for a loan.
~? th,, nnAwrmnrlA ions His credit was nil. He hadn't worked steadily
 12358
Approved For Release 2005/01/05 : CIA-RDP66B00403R000200150040-8
CONGRESSIONAL RECORD - SENATE
him tohave his red-haired girlfriend cosign
a note for $2,000 in her home on North
Pulaski.
Ile got his Anal lesson on July 12, Welaphal
said, when he was kidnaped and tortured for
l0 ' hours. The ledger showed he paid off
$250 after that--and then he went into hid-
ing and to the police.
Assistant State's. Attorneys James J. Flynn
and Louis B. Garippo planned to use the
ledger material to corroborate Weisphal's
testimony at the trial of the five defendants.
The law blocked them.
Another ledger sheet on which the prosecu-
tion relied. bore the name of Mrs. Frances
Mondzyk, then of 1011 North Laramie, wife
of a man often arreated for jewel robberies.
She borrowed $500. and. agreed to pay $25 a
week in juice alone, the record showed.
Mrs. Mondzyk paid off faithfully for 14
weeks. The mub~atcrA had collected $350
from her, but she still owed the original $500.
Another $25 was due on December 9.
That was the date, of the arrests. Mrs.
Mondzyk, in common with other debtors, got
a reiiplth. Whether she resumed payments
since the acquittals Is %uknown.
:Her name was found by chance in the pos-
session of John Lang, a Lombard attorney
who'testified for the defense in contradicting
some of Weisphal'a story. Evidence was of-
payments in
the West Side restaWgUt, but It could not
be backed up with, the,le4gers.
T$E .*50 VIP= T nr JUICE
Another ledger sheet covered the account
of a West Side man who. borrowed $$00 and
agreed to pay $80 weekly in juice. He turned
over $1,980 to the gangsters, according to the
record, and he still owed,$BQ9 at the time of
the intelligence division arrepta.
There was a mystelous character identi-
fied only as "Doc" who obtained $20,000 from
the racketeers on-December 21, 1962. He
paid back $22,000 a day or two later, the
record Indicated. .,_.
juice men until he could arrange a bank
loan or mortgage.
Three sheets coyered lgans.to a Tom Smith,
with no address ,or other identification. On
his final account sliest, he was shown as
paying $380, a month on a $3,000 loan. in-
cluding $500 juice and still owed $1,300 on
December 9. ,
EYE BANK NETWORK OF "HAM"
RAD.O OPERATORS
Donor and Receiver as Amazing Eye
Bank Network Saves Iowan's Sight,"
may be printed in the' RECORD.
There being no objection, the article
wag Ordered to be printed in the RECORD,
as follows:
AMAusfO EYE BANK NErwoza SAvsn IowAN's
SIGHT
(By Ed Heins)
Two years ago, an Iowan lost his sight
because the State University of Iowa eye
bank in Iowa City didn't have a cornea avail-
able for an emergency transplant operation.
This year, Ralph Paysen, of Camanche, a stu-
dent at Iowa State University in Ames, un-
derwent a similar emergency. But, this time.
the eye was available in time.
The difference: the unique eye bank net-
work.
Ham radio operators in cities across the
country which have eye banks have banded
together to provide an eye clearinghouse.
The network provides communimtion be-
tween eye banks that have corneas and those
that have emergency needs but no local
supply.
The original Idea and the organizing force
which made the network a reality came from
two Iowans, Dr. A. E. Braley, head of the
State University of Iowa Hospital's eye de-
pertinent. and Ted Hunter, a psychology
professor and Inventor at the university.
MORE THAN 60 CITIES NOW ON THE NETWORK:
After the Iowan lost his sight 2 years ago
because there was no cornea available, Dr.
Braley and Hunter decided to do something
about it. The supply problem occurs because
transplant operations must take place within
hours after an eye donor dies. Doctors
haven't been able to preserve the eyes for
long periods as they can blood for trans-
fusions. Although the Lions Clubs across
Iowa, who sponsor the Iowa Eye Bt.nk, have
signed up thousands of potential donors, an
Iowa donor's eyes aren't always available at
the exact time an emergency occurs.
But. Braley and Hunter felt there would
certainly be an eye available somewhere In
the country if they could just inform the
other eye banks of their needs. The commu-
nication answer was a natural for the two
because they are both amateur radio opera-
tors with ham friends across the country.
The network first went on the air In De-
cember 1982. with 15 stations. The network
now involves ham operators In more than 60
aQtte5.
L'*Z RESPONSE WAR
I s1 EDiaix
Braley and Hunter join with two others,
Dr. C. D. (Kip) Adams and dens Weiner, to
manthe Iowa Cit
tati
n on the h
m
t
y s
o
a
ne
-
-Mr. Ml > Mr. President, on May work,
17. the Picture magazine of the Des TQd Hunter says. "The eye bank network
Moines, Iowa, Sunday Registerpublished arranged for transportation .of 270 eyes for
an article on an unusual program, the emergency operations from the time we start-
brainchild of two lowalls. ad until the end of April this year."
"4vritte4 by the able Reportgr Ed Heins, se adds proudly, "I don't think we've ever
missed getting an eye for an emergency."
It tells the tor, of the role of an eye bank Only emergency requests are put on the
i1$work o ham radio operators in pro- network on the regular 7 am. and z p.m. pro-
viding communication, between eye banks grams. There is a minimum of conversation
throughout the country that have cor- during the twice-daily sessions, with only
neas, and "those That have emergency those operators who need eyes or who have
needs but no local-supply. some doing the talking.
,Aocord;Ug t0 t e article, the original It was 7 pm. early in April when Dr.
Braley came on the network to ask for an
it ea and the organizing-force In making eye to use for the corneal transplant for the
the networl&a reality came from Dr. A. E. ,Payson youth, The response was immediate
Breey, head of the State University of from Omaha. By the next morning, the eye
Iowa Hospital's eye department, and Ted had been shipped to Iowa City and the oper-
Hunter, a psychology professor and in- ation was undertaken.
Ventor at the university. Paysen went home late in April to recuper-
`This warm story merits the interest. of ate. He plans to stay out college until
June 5
Ing the early days was in getting cooperation
from the doctors in eye banks in other cities.
"The doctors didn't understand that ham
operators could actually communicate any-
where in the country," he explains.
THE BLIND HELP, As DO THE CaIPPI.rn
The Iowa City station had a chance earlier
this year to take part in one of the moat dis-
tant shipments of eyes. An Iowa donor's eyes
were used to save the sight of two young
girls in Hong Kong. Arrangements for the
shipment were handled by ham operators of
the eye bank network.
Many of the hams are handicapped. Travis
Harris, the Oklahoma City contact, is blind,
as is the radio operator at Topeka, Kans. Jim
Breckenridge at Denver is crippled with war
wounds.
But young Ralph Paysen, recovering from
his operation on his family's Clinton County
farm, is good evidence that the hams across
the country know how to make their system
SITUATION IN SOUTHEAST ASIA
Mr. MILT.R. Mr. President, like all
other Americans, I am hopeful that out
of the top-level talks recently held in
Hawaii will come the assurances of more
definitive action to end the demoralizing
situation existing in southeast Asia.
I hope that the talks will not result in
substituting more impatient motion for
considered solutions. I hope that any
decisions forthcoming will portend the
end of the kangaroo foreign policy which
appears to be the basis of our operations
In so many parts of the world-a policy
premised upon a determination of how
many ways it can jump without pur-
suing a definite course.
The problem in southeast Asia, as now
appear to be recognized, cannot be
shoved aside until after the elections in
November. Now is the time for firm
action, unless we are willing to recon-
cile ourselves to the belief that all is
lost in southeast Asia, especially in South
Vietnam and Laos.
As New York Times Correspondent
Peter Grose observed last Sunday, the
danger we now face in southeast Asia
Is a psychological 'collapse. If we can-
not -shore up the sagging morale by firm
action demonstrating that we believe in
the cause of freedom, then we may as
well withdraw from southeast Asia.
Let us hope that whatever action we
may take will not be too late.
I ask unanimous consent that the New
York Times article of May 31, entitled
"The War in South Vietnam: Even Op-
timist Is Gloomy," may be printed In
the RECORD.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
Tas WAR IN SOUTH VIETNAM: EVEN OPTIMIST
Is GLOOMY
(By Peter Grose)
SAIGON, SOUTH VIETNAM, May 30.-In
South Vietnam today it is the optimists who
think the war will be a long one. Pessimists
look for some critical decisions much sooner.
They fear that political developments in
South Vietnam will bring an end to 10 years
of pro-Western government.
everyone Who belie es in h ?. ? ? 0" " ?? nncerate extension or the campaign-a re-
efforts efforts by those wh cov I leam2 / kftt-RE)R66BWOMWO?2OEIs$ itary perimeter in
natwork a tinanimn has been fine but it wasn't accom- southeast Asia to present a more tenable line
us consent that the ax- pushed without effort on the part of many of defense against Chinese Communist ex-
ticle entitled "Amateur Radio Links people. Braley says one of the problems dur- pansioniam.
 Approved F elease.20O5/01/05 CIA-RDP. 66BO04 000200150040-8
X96 CONGRESSIONAL RECORD - SENATE
[In Dalat four generals who were mem- seems w nave uviuuag -y-r, --- 14 r-
uling ta were freed, except his own shrewdness -and U.S. sup-
ber,s of the former r ,,un
iaf? Government eon ces repetted. They port.
grey' ae wien W flea ` Nguyen American fieldworkers report that the
}j;liari[i ae1zed fowei in gon Sanuary 30.] name of Nguyen Khanh and the picture of
To all observers i is clear that the Viet- the round-faced man with the little goatee
naxjlege American war effort against the have become more familiar to people in the
Vietcong is in serious trouble. Countryside but have failed to arouse any
s1rbDBN $209X`r20N" feeling of loyalty.
"He seems to be just another man at the
Nothing' drastic 'bas just' happened inp ?> said one civilian official in the prov-
South Vietnam there has been no sudden inces.
deterioration. If anything the last 4 There is no evidence of a widespread will-
months under the Government of Premier ingness to fight for Nguyen Khanh or, for
Khanh, have been scat ered' grid superficial that matter, for any government Saigon has
improvements in many important sectors, offered in recent years. This fact alone in-
Nor does the trouble arise from a fear of dicates the size of the task confronting those
imminent military defeat. The-C6 mmunist who are trying to mobilize the civilian popu-
insurgents` have shown increased military lation.
capability In recent months, but their own Premier Khanh's efforts to establish a
propaganda organs are the first to concede strong political base of support, if only among
that a purely military decision is well beyond the politically articulate of Saigon, have
their grasp. failed to make even 4 months' worth of
alike now fear is, a psychological collapse. POLITICAL PROBLEM BIGGEST
` Internally, there is"a clearer thknifesta-
tion of weariness with a War-that seems to In relaxed moods General Khanh admits
lead 'not to peace but only -to more war-. that the political side of his job is the one
Externally, there is turmoil in neighboring that gives him the most trouble and the one
Laos and Cambodia and the feeling that if that, as a.former army field commander, he
any new international negotiations are un- least reckoned with.
dertaken concerning those countries, read- Since the January 30 coup the main polit-
justments in South Vietnam will naturally ical voice has come from the old Dai Viet, or
follow-and not necessarily to the benefit of Greater Vietnam Party, a nationalist and
the West. ,. anti-Communist movement dating from the
External psychological pressure comes also 1930's.
from Paris, where President de Gaulle points But the Dal Viet cannot speak with one
the way to just the neutralism that the pro- voice. Through years of clandestine activity
American leaders, here fear most. It also while the party was illegal before and during
comes from the United States, where an the Ngo regime, its allegiances have become
election campaign indicates'that Americans fragmented and tenuous.
are far from united in support of a long and The recognized leader of the predominant
Costly war. faction is the quiet and unimposing Nguyen
Compared with 4 months ago, or even Ton Hoan, General Khanh's Deputy Premier
a year ago, the' most cheering fact to Ameri- for Pacification, who rushed home from his
can observers is the character of South Viet- Paris exile within days of the January coup
nam's Premier, the jaunty young 'general expecting to be Premier.
who took power last January 80.' When General Khanh saw that the naming
"Under General Khanh this_ country has of a prominent politician to the top position
a better government than at any time in would only alienate all other groups, Mr.
past years,"`said -a senior American -policy- Roan had to be content with a second-rank
maker., job. His relations with General Khanh have
It was a year ago that Buddhist opposi- frequently been abrasive, but, despite the
tion to President Ngo Dinh Diem flared into urgings of some of his followers, he has
chosen to stay in office.
the open, anti started the crisis that led to
his downfall last November. Generallthalih AMERICAN "BLIND SPOT
supplanted the junta that had ousted the U.S. officials who long tended to overlook
Ngo family's regime. Vietnamese poitical activity as simply the
work General i nnk's energy and swift foot- "quibbling of civics students" are suddenly
Dave
of flagged since the day` he realizing their fault. If the politicians are
seized power in the inauspicious circum- not capable of governing, it is recognized,
stances of ac,oup d'etat that no one seemed they and their army contacts are fully capa-
to expect or want. ble of delivering the coup de grace to the
redictions
he has kept sev-
ainst many
A
A
i
p
,
p
g
pro-
mer
can,
ro-war government. Earlier this year a well-known French
oral steps `ahead of whose who wish him 111. Except for leading members of the,Da1 Viet, officer living in Saigon was seen in several
The idea of another .coup or of 'a reshuffle few political figures have rallied to the Khanh hamlets in the Mekong Delta openly several
under the threat of force seems less and less government. Their argument is that they cating the policy of neutralism.
attractive-except to those who see that as want to wait and see-to see ? whether the Evidence on contacts between the Na-
a way to end-the war. Khanh government really intends to pursue tional Liberation Front and Saigon politi-
Aseass.4nation is a different matter, but the social revolution that the overthrow, of cians is even more obscure. The politicians
for a man undoubtedly in this danger, Gen- the autocratic Ngo dynasty was to unleash, themselves acknowledge that these con-
oral Khaiili seems "amazingly" relaxed and Observers, both foreign and Vietnamese, toots exist, both through friends in Paris
confident. lIe has two houses in Saigon see a more unsettling motive behind the un- and Pnompenh, the Cambodian capital, and
and lives in' one or the other without a fixed willingness of ambitious political figures to through Vietcong agents in Saigon.
pattern. Avoiding the tight security that be associated with Nguyen Khanh and R.ob- Even the anti-Communist Dai Viet does
used to surround Mr.Diem, General Khanh art McNamara. not escape these suspicions.
Is easily accessible and frequently mingles Through 25 years of war and political up- The immediate purpose of the front's ac-
with the people. ` heaval-the adult life of most. Vietnamese tivity is to bring about a government in
The Premier quickly' found a loyal sup- public figures-the instincts for self-preser which members of the front, or. Communist
porter in the 11.8. Secretary of Defense Rob- vation have become highly developed. A few, sympathizers, would participate alongside
art S. Me ut of arc who,, associates say, has Vietnamese given to frankness will ackn_a_w1-- other parties, the classic prelude to a Com-
stepped out of character to become personal- edge their attitude to close friends. munist takeover.
ly, even emotionally, committed to the 36- "If the Communists or . neutralists take= There is a third force in South Vietnam
year-old general. over here, I do not want to be identified that allows more cohesion and countryside
"If anyone can do the job here, `Khanh with the war government," said one. strength than either of the others: Bud-
is the man," said one Washington-based of- The, implications of this belief explain the dhism, the family religion of about 70 per
ficial. To observers here the "if" clause new-found interest of Americans like Alnbaa Cent of the people.
weighs heavily. sador Henry Cabot Lodge in the Intricacies The display of Buddhist loyalty and or-
The hard truth' is to rGFex>i k11 1xanlRadt~smctx / ildf,i3llll /(15 i :ID-RIIPAARnn,&"?@flbiiiLD(~bllitW(1dit1.6tlebrations this
12359
The mechanism for the Communists'
planned takeover of South Vietnam, work-
ing under the guise of neutralism, is the Na-
tional Liberation Front of South Vietnam
the political organization of the Vietcong.
The second Indochina war was already
well underway when this revolutionary party
was founded with North Vietnamese guid-
ance on December 20, 1960.
At its first congress in February 1962-
held, by coincidence, in the week that the
U.B. Military Assistance Command was es-
tablished in Saigon-the front affirmed the
political goals it still retains: the end of
the war, the withdrawal of all U.S. troops and
the establishment of a netural area in Indo-
china comprising South Vietnam, Cambodia,
and Laos.
Advocates here and overseas of a neutral-
ist solution can put forth many arguments,
but one cannot be that it is a compromise
since naturalism is what the Vietcong have
announced they are fighting for.
The president of the National Liberation
Front is a Saigon lawyer, Nguyen Hu Tho,
who, his friends say, entered politics in
March 1950, when he led an anti-French
demonstration. Formerly a prominent figure
in Saigon, Mr. Tho is well known to most
politicians now active here.
LEADERS CONSIDERED OUTLAWS
Leaders of the front are, of course, con-
sidered outlaws by the Saigon authorities.
They are believed to operate between the
North Vietnamese capital of Hanoi and the
front's headquarters in Cambodia.
Two key questions about the front are
preoccupying intelligence officials: What
success is it having in winning non-Commu-
nist Saigon politicians over to its antiwar
platform? How does France's advocacy of
netutraliam relate to the same policy of the
front?
Evidence on either point is hard come by.
French involvement with. the front, and
even with the Vietcong fighing forces, has
been, rumored without proof.
General Khanh has charged that French
agents were active with members of the
former military junta to introduce a neu-
tralist settlement. Three Frenchmen were
quietly expelled 2 weeks ago; one of them a
30-year-old teacher said to have led a society
of students and Intellectuals' advocating
neutralism.
In April a well-qualified American military
adviser in central Vietnam reported that he
had spotted a white man who spoke French
accompanying a Vietcong unit of about two
companies along a remote road. EVIDENCE IS OBSCURE
 Approved For Release 2005/01/05 : CIA-RDP66B00403R000200150040-8
CONGR,ESSIQNM, RECORD - SENAJ'Ei
t an le4Faea C' ecol the
try reed that it was At is who
mu o-beervera credit "tliem whit hav-
brougits about hie downfall. tbrQugh
Buddhism trbAmphan has angered many
Roman Cato egen those not closely
identified With t e c-dominated Ngo
,regime. Buddhist-Cat. olic tensions may
leaders theineelyee-appears to know where
the Buddhists Will turn next. Their Aland
is not against the government, nor is it for
the government. The belief Is that as-
Bud-dhism. goes, so goes Vietnam.
On the military side of the struggle, there
is no incUcation that any amount of aid can
Bitable t'
4Q. government to defeat the Viet-
eotlg-eitcept after a long period of concerted
political effort at the hamlet level. However,
time Is a luxury neither Saigon nor Wash-
ington can reasonably expect to be granted
opments.
't y the same token, the Vietcong are in-
capable of'forcing a military decision so long
as the government controls the air with
American planes. Military and other moves
thus assume importance mainly for their
psychological effect.
Acts of terrorism' in Saigon and in the
countryside have received wide attention in
recent months. 'President Join;on cited an
upsurge in terrorist activities as a main rea-
sob for Increasing aid to the Vietnamese war
effort.
Zn fact, terrorism for specific psychological
purposes has been a principal Vietcong
weapon since the Insurrection began in 1957.
vf> coim VUJZIay YArrwas
The Vietcong military pattern is the same
both in the stratag! ettong Delta, where
the- bulk of Soul tnaia'a population.
which exceeds 5 o4?ls concentrated,
and to the oen f re provinces. The pattern
is economy of effort to 'produce maximum
psychological gain and'a reluctance to en-
gaetgge it any aet[ons that would make them
vulnerable to large-scale action, particularly
from the air.
In the southern provinces. the Vietcong
have found one, answer -to the drawback of
vulnerability-the sanctuary of Cambodia.
It Is no ooin idence, tit most of the spec-
-Wet, ittar s nt ccn attacks have taken
place within reach of the Cambodian Iron-
The South Vietnam e~,~ government, rely-
ing on detailed Intelligence reports, has
charged that the Vietcong are using Cam-
bodian territory systematically to train and
regroup their forces and launch attacks.
Cambodia has denied.the charges.
The proposal to station a United Nations
force along the frontier is aimed at ending
any tactical aid to the'iasur ents. As such it
could reoye one,aqurce of Vietcong strength
in file dells, tIi fptx there is little reason to
think loagstand ng Vietcong bases and sup-
port in the villages would` suffer significantly.
Another situation ou'dide` South Vietnam
has affected the Vietco military posture in
the central provinces: is"' Is the question
of Laos, specifically the control of the Lao-
tian border area along a etrate c highway
route that has been used by the pro-Com-
munist Pathet Lao forcep.
BOOT Fm um"TION
This has opened a relatively direct way
for political infiltrators from North Vietnam.
They have been detected in propaganda and
June
This Is tjte.tense fiwAd insecure military peat- TRUTH IN LENDING
tig4 irpm which general Kisanh, aided by
the trusted States, is starting a long-neglected M'. ROBERTSON. Mr. President, the
bid to win back the couutayalde. recent statement of the distinguished
It would. take -Ums.fot the best army In senior Senator from Illinois [Mr. DouG-
the wood to.make .hc againstinaur- yawl. that it is necessary to pass his
gents entrenched in ? lets during "confusion in lending bill," because State
the years of Government naction. The laws are no good and State officials are
South Vietnamese Army to clearly not the
best no good, is typical of what is happening
.
Most observers believe that the army's on the floor of the Senate. The Senator
doubts and confused loyalties are merely re- tells of a crime organization which is
sections of the Insecurities that affect the openly and blatently violating the lend-
'population at large. ing laws of his own State, but he says
Premier Ihanh has been widely criticized that we must have his bill to control the
abroad for many of his command changes situation If we are to have any law
with consequent dislocations that interferedorcement.
with vital tasks. Some have indeed been There are m
disastrous, but in less spectacular positions, any State laws and stat-
the many of his changes have been for the utes for the protection of civil rights, and
good, in the opinion of American advisers. there are many provisions in the Federal
On the other band, one of the main do- code; but we are told that State laws
mestic criticisms has been that General are no good, that if there is a local jury
Khanh has not replaced enough of the sub- a Federal court it is no good, and
ordinate omciala left over from the Ngo
regime. we must have a law creating new
.
American reactions to events in Vietnam crimes and placing them in the hands of
are watched with acute Interest here. for the it Federal judge to impose the penalty-
Vietnamese know that decisions critical to all because, so we are told, State laws
the fate of southeast Asia lie In Washington. and State juries are no good. A proposal
After Senator Baser GozuwAras discussed has even been made-on the theory that
ideas about the use of atomic bombs in States can no longer be dependend upon
Vietnam, a local newspaper editor called up send honest men to the Senate-that
an American corres
ndent in a mi-a..--
f
po
o
despair and anger. we mum, nave a new cone; snat we must
"What kind of information are Americans have a group in the Senate to pass on
getting that they could have such ideas?" he one's honesty, that a Senator must dis-
asked. "Don't they realize there are no mill- close almost every detail of his income
tary targets in this war?" and make the information public and
Recent impressions issuing from omclal available to the press, to all the pressure
Washington seem to observers here to be
closely related to the presidential election groups, and to all his opponents as well.
campaign. The charge has been made that the
When pessimism appeared in statements lending bill has been stalled in the com-
alter Mr. McNamara's last visit. It was not mittee. Those were the words of the
derived from any new military or political Senator-
crisis here. It seemed. rather, to follow upon Mr. DOUGLAS. That is correct.
the realization that the problems here can- Mr. ROBERTSON. All right. I re-
not be pushed aside until after the election ferred the bill to the Senator's subcom-
and that the full dangers of the gradual mitres, and his subcommittee stalled it
erosion ayeodf recent months should not be un- for more than 4 years. He was partially
The American effort is going through much responsible for the stalling, because after
the same phase of reorientation and improve- he resorted to the unprecedented proce-
meat that Premier l hash Is giving to his dare of going to New York, Boston, and
Government-with..the concomitant tear that elsewhere for hearings, he held up the
it may be too late. printing of the record of the hearings
some our the best American efforts have for 7 long months. Now, suddenly, the
gone unnoticed r#cently, because, as one Senate cannot meet in the morning with-
senior official pointed out, "they were to pre-
vent catastrophes Which then did not occur.", out the charge that the committee has
Officials from Secretary McNamara down stalled his bill.
seem committed to the stratgy of pacifica- The PRESIDING OFFICER. The
tion through civic and political action rather time of the Senator from Virginia has
than relying on purely military moves. Little expired.
more than lipservice has been paid to the Mr. iOBERTSON. Mr. President, I
policy for years. ask unanimous consent that I may pro-
SENATOR WILLIAMS OF DELA-
WARE-THE LANE WQLF GUARD-
IAN OF FEDERAL MORALITY
Mr. )4TT?T. R.. Mr. President, yester-
day the Senator from Pennsylvania [Mr.
SC l had printed . in the RECORD an
article from the June Issue of Fortune
magazine, which Is highly complimentary
to the senior Senator from Delaware
[Mr. Wu.Erasssl. It is a tribute richly
deserved by my colleague, who has a
reputation second to none in ferreting
out wrongdoing In the Federal Govern-
ment.
I join heartily in the sentiments ex-
pressed by by the Senator from Penn-
reed for 3 additional minutes.
The PRESIDING OFFICER. Is there
objection? The Chair hears none, and
it is so ordered.
Mr. ROBERTSON. Think of it. More
than 4,000 pages of testimony have been
taken before the Banking and Currency
Committee, and a similar bill pending
all that time on the House side, not one
witness has testified on the House bill.
All the States In the Union have had the
privilege of adopting a bill like S. 750,
and not one would adopt it. But the
States are no longer any good, we are
told. The Federal Government must
move in and legislate if we are to save the
Nation. This is one instance in which,
without any constitutional authority, we
plains, once tightly 5P Rele V605/01/05: CIA7RDP66B0040-M6 5 0 and we may