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CIA-RDP79T00826A001600010046-8
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S
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21
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December 21, 2016
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June 5, 2007
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46
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February 6, 1967
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IR
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Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 # Secret DIRECTORATE OF INTELLIGENCE Intelligence Report The Situation in South Vietnam (Weekly State Dept. review completed USAID review completed ARMY review(s) completed. Secret 149 6 February 1967 No. 0336/67 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Secret WARNING~ This document''' contains information affecting the national defense of the United States, within the meaning of Title 18, sections 793 and 794, of the US Code, as amended. Its transmission or revelation of its contents to or receipt by an unauthorized person is prohibited by law. GROUP I EXCLUDED FROM AUTOMATIC DOWNGRADING AND DECLASSIFICATION Secret Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 W CENTRAL INTELLIGENCE AGENCY Directorate of Intelligence THE SITUATION IN SOUTH VIETNAM (30 January - 5 February 1967) Preliminary electioneering; Con- stituent Assembly developments: oca a ec ion sc e - u e; Mon agnard developments; students restive at Saigon Univer- ~ity School of Medicine. Continued success in pacification in Vinh Binh Province; Impact of elections on Revolutionary Develop- ment; Resettlement plans for people displaced by CEDAR FALLS; Develop- ments in the Chieu Hoi program; Chieu Hoi statistics; Chieu Hoi summary for 1966. Prices, Currency and gold; Rice situ- ation; Recent developments in pork marketing; New secretary general for economy and finance; Minister Thuan's views on the Saigon port. ANNEX: Weekly Retail Prices in Saigon (table) Saigon Free Market Gold and Currency Prices (graph) SECRET Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Continuing preliminary campaigning for the presidency by both Premier Ky and Chief of State Thieu is highlighting cur- rent political developments. The Constituent Assembly is now work- ing on the future government's legislative branch, and will soon begin to discuss as- pects of legislative authority. There are indications that the government and the assembly have reached an agreement on con- troversial aspects of the draft constitution dealing with the legislature. Although there are some hopeful signs, relations between the government and mon- tagnards in the central highlands have not yet been firmly settled. Preliminary Electioneering 1. Local interest in the future presidential election continues to grow, with both Chief of State Thieu and Premier Ky indulging in preliminary cam- paigning. General Thieu, following his publicized tour of the delta provinces the previous week, held a major reception for the press in Saigon on 30 Jan- uary. Ky, apparently in part to offset Thieu's barnstorming, flew to the delta on 3 February to take part in religious ceremonies of the Hoa Hao sect. Both men spoke liberally about such potential campaign issues as peace, anti-corruption, and land reform, with Thieu holding out the prospect that the Vietnam- ese army's new pacification role would shorten the war and Ky declaring that presidential elections could be advanced by some three months to early sum- mer. 2. Although both generals publicly profess a preference for a military career, they appear clearly to be bidding to become the presidential candidate of the military. The subject of a single military can- didate was tentatively broached between them a few SECRET Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 W SECRET W weeks ago, but a final decision reportedly was put off until after the new constitution is promulgated about April. Continued preliminary campaigning, however, could force an earlier confrontation to 3. Meanwhile, retired General Tran Van Don, frequently mentioned as a possible "civilian" can- didate, told an embassy officer last week that he would not run and might back Ky, adding that he would be a fool to compete against the resources of the present military leaders. The embassy, convinced of Don's political ambitions, speculates that he may now be thinking of throwing his support to Ky in re- turn for a high government appointment. The bulk of southerners, toward whom Don would normally look for support, are, however, leaning strongly toward for- mer premier Tran Van Huong as a civilian candidate. Catholic sentiment is presently divided along re- gional lines between Huong and Ky, with some north- ern refugee Catholics talking of a slate which could include both men in some combination of president and premier. Constituent Assembly Developments 4. The Constituent Assembly last week began work on the future government's legislative branch, and approved general provisions on the organization and election of a bicameral legislature. Deputies in the lower house, which will range in size from 100 to 200 members, will be elected from separate constitu- encies which are no larger than provinces, will serve four-year terms, and may be re-elected. The upper house will have between 30 and 60 members elected at large throughout the country on a list basis rather than on an individual basis. 5. Meanwhile, Chief of State Thieu sent a formal letter to assembly president Phan Khac Suu on 28 Jan- uary outlining Directorate suggestions for the constitu- tion. Many of the Directorate's proposals concerned greater restrictions on the authority of the legisla- ture than now outlined in the assembly's working draft. Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 W 1 _ 1 T TT The articles dealing with the legislature's authority have not yet been discussed by the entire assembly. 6. At the same time, however, public criticism of the assembly's draft, apparently inspired by gov- ernment leaders, is continuing. On 29 January, a Vietnamese youth group generally known to be sponsored by Premier Ky and Police Director Loan held a seminar at which criticism of the assembly's draft echoed that which has been made by military leaders. The seminar received wide publicity in the government-controlled Vietnamese press. 7. Such efforts by the military leaders to bring contrived public pressure on the assembly is an ir- ritant to many assemblymen, especially in view of their earlier agreement with Directorate members to work out differences over the constitution in private. The public campaign against the assembly's draft apparently has not caused serious resentment in the assembly thus far, and there are indications that the government and the assembly have now reached an agreement on contro- versial aspects of the draft dealing with the legisla- ture. Local Election Schedule 9. In accordance with a government decree on local administrative reform promulgated in late 1966, sr-;cREJ Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 W SECRET W local elections for village councils and hamlet chiefs have now been scheduled for this April, May, and June. The timing of these elections has been phased so that in each province no more than 30 percent of the elections in villages and ham- lets under government control will be held at the same time. Presumably, the advantage in phased elections is that security forces can be concen- trated to protect the elections from Viet Cong harassment. In most other respects, election reg- ulations will resemble those for the Constituent Assembly last September. Montagnard Developments 10. Y Bham Enoul, leader of the dissident tribal autonomy movement FULRO, failed to attend a scheduled meeting with US and GVN representatives on 28 January. Y Bham, who has been in hiding in Cambodia, recently had requested assistance in seeking political asylum in Thailand, and the meet- ing on 28 January had been arranged for this purpose. It is not clear whether Y Bham deliberately passed up the meeting, or whether his couriers failed to reach him in time to confirm the time and place of the meeting. 11. News of the prospective meeting between Y Bham and US and GVN officials apparently caused a favorable reaction among montagnards in the Ban Me Thuot area of Darlac Province. They evidently in- terpreted the government's willingness to attend such a meeting as another indication of the govern- ment's recent responsiveness towards montagnard af- fairs. The outcome of another scheduled return of FULRO members to government control, scheduled to take place this week, should provide further positive indications. 12. Meanwhile, there have been some indications of restiveness among montagnards in northern Kontum Province, where they have normally been quiet. Mon- tagnard sources attribute this unrest to dissatis- faction with government policies there, especially the government's unwillingness or inability to pro- tect the montagnards against Viet Cong harassment. Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 W SECRET W Students Restive at Saigon University's School of 13. The public installation of a new five-man governing committee appointed by the government for Saigon University's School of Medicine took place on 30 January with an estimated 500 troops on guard against possible disruptive efforts by students. The ceremony had been postponed on two earlier occasions by student opposition. Students at the ceremony on 30 January carried banners protesting government in- terference in university affairs, but there was no violence. 14. The origins of unrest among the medical students extend at least as far back as last spring, when the students, with faculty encouragement, spear- headed pro-"struggle" demonstrations. More recently medical students led some demonstrations in November against French, American, or other foreign instruc- tion on the grounds that it was detrimental to Viet- namese culture. In mid-January, Premier Ky decided to replace the dean and four professors at the school, and to establish closer government supervision over it. 15. US officials in Saigon are unsure what, if any, outside political forces are behind recent student agitation and restiveness. It is possible that some of the student leaders have connections with Tri Quang's militant Buddhists, or with dissident southerners. Neither is it yet clear if the student agitation will spread to other schools in the univer- sity. Student presidents at ten of the 14 schools and faculties affiliated with the university reportedly signed a petition denouncing government infringement of the university's sovereignty, and scheduled a meet- ing on 31 January to decide what action to take. Re- sults of this meeting have not been reported, but ap- parently no immediate major action was taken by the students. Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 W SECRET W Continued successes are being re- ported in pacification efforts in Vinh Binh Province. The anticipated use of Revolu- tionary Development (RD) Cadre in the 1967 election campaigns is expected to have no detrimental effect on over-all RD efforts, providing their use is not for a prolonged period. Resettlement of villagers displaced by Operation CEDAR FALLS is proceeding smoothly. Weaknesses noted in the Chieu Hoi program relating particularly to the re- habilitation of ralliers in the Chieu Hoi centers and to a follow-up on their activi- ties after release remain as yet unsolved. Some 592 Viet Cong returned to government control in the period 15 to 21 January, and preliminary figures indicate 823 rallied in the period 22 to 28 January. The initial 28-day total is 2,272 Chieu Hoi. In 1966, there were 20,242 ralliers; 64 percent of these were military. A preliminary survey indicates about one percent were North Viet- namese troops. .Continued-Success in Pacification 1. Latest figures show that Revolutionary Develop- ment Cadre (RDC) Teams and People's Action Teams (PATs) in Vinh Binh Province have secured a total of 27 hamlets, principally in Tieu Can District. Their success appears contagious, and, along with improved security, the econ- omy of the area is definitely improving. With assistance from RD cadre one hamlet with a population of only 1,800 built eight miles of inter-hamlet road. The province chief, impressed with the local initiative, has directed that all major inter-hamlet roads built on local initia- tive be hard-surfaced. This will facilitate and stimu- late additional economic growth in the area. 2. Another hamlet, which had paid one million piasters in Viet Cong taxes in 1965 and early 1966 was pacified during 1966 and paid no taxes to the enemy SECRET Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 W ? SECRET during the remainder of the year. This hamlet was able to defend its rice crop successfully, and received a tax write-off from the GVN to promote its local economy. This hamlet, with three RD teams and 60 hamlet defenders, was attacked at night during the week of 20 January 1967 by a Viet Cong battalion. The hamlet, under attack for five hours, suffered one killed and 11 wounded compared with 60 Viet Cong confirmed killed. The defenders were -supported throughout the night by armed aircraft. MACV advisers have stated that the teams and the hamlet residents conducted a brilliant defense--well coordi- nated with air and artillery support--and generally displayed discipline and spirit. 3. Two village areas of Tieu Can District are now 95 percent pacified. Elections have been held in all hamlets, village elections are pending, and farm cooperatives and non-funded self-help schools are being established. An ex-Viet Cong, who rallied under the Chieu Hoi program, is teaching in one of4'the hamlet schools. Impact of Elections on Revolu- tionary`.Development 4. In view of the major contribution of the Min- istry of Revolutionary Development (MRD) in mobilizing support for the Constituent Assembly elections in Sep- tember 1966, it is assumed that the MRD will be active in.the presidential and other elections planned for 1967. The three to four weeks devoted to the 1966 election resulted in no appreciable diversion of assets from RD efforts. Provided that the election preparations in 1967 are not greatly prolonged, they are not expected to cause detriment to the RD effort this year, Resettlement Plans for People Displaced by CEDAR FALLS 5. As many as 8,000 people may have been displaced by Operation CEDAR FALLS, the recently concluded allied action against a Viet Cong sanctuary north of Saigon. The SJC.R "'1 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 W SECRET W refugee camp at Phu Cuong--the capital of Binh Duong Province--is caring for approximately 6,100 of these persons or about 1,430 family units. Present plans call for resettlement of the refugees by 15 April, although the final date depends on the amount of time required by ARVN/US engineers to clear homesites and construct new living quarters. 6. The majority of the families--1,300--will be resettled in a new community to be established at Binh Hoa Village, eight miles southeast of Phu Cuong. The new community will comprise 125 acres and will provide a school, market, and wells. Each family will have a housing plot apprQximately 10 by 25 yards and a new home costing approximately 11,000 piasters. The cost of the houses will be borne in part by the Special Commission for Refugees (5,000 piasters) and, another 6,000 piasters may be obtained from the Ministry of Social Welfare. If the Welfare ministry will not help fund the project, the remaining costs may be assumed by USAID, which is now supplying roofing and cement. The first 50 families are to be resettled after Tet, the Lunar New Year. 7. The remainder of the refugees--100 families of rubber workers--will be resettled in Binh Long Province under arrangements to be made by the province chiefs of Binh Duong and Binh Long. A number of other people, especially craftsmen, have indicated a preference to live in Ben Cat town in northern Binh Duong; they prob- ably will be allowed to do so. 8. The land around the,.principal settlement, Binh Hoa, is most suitable for produce farming, Since the agricultural experience of the refugees is in rice cropping, classes are being given in the refugee center on the new method of farming. In addition to allied medical teams circulating in the refugee camp, a school has been established and most of the children are receiv- ing their first formal education in two years. About 400 of the men and women are producing cinder blocks for the construction of their new homes, and are receiving pay in the form of additional foodstuffs. SECRET Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Developments in the Chieu Hoi Program 9. Since all provinces now have a third country national (Filipino) as Chieu Hoi adviser, the US mission is initiating independent reporting on the number of ral- liers. This should eliminate the traditional time lag in the reporting by the Minisry of Information and Chieu Hoi and should permit better analysis of factors bearing on the returnee rate. As a further refinement, the number of North Vietnamese defectors and the number of ralliers from the Viet Cong Main Force (subordinate to a VC region or to the Central Office for South Vietnam--COSVN) will be reported separately. 10. During November 1966, 18 provinces improved the physical layout of their Chieu Hoi centers, and 19 carried on some form, of vocational or literary training. The latter is encouraging since this training was undertaken on local initiative and without national funds. Although 16 provinces reported programs for resettlement of ralliers in Chieu Hoi hamlets, effective resettlement is by and large lagging. 11. A recent increase in the number of ralliers, a trend begun in September 1966, has been credited to in- tense military operations by allied forces, the discomfort of Viet Cong living conditions, disillusionment with Viet Cong promises, and an increasingly effective allied psy- chological operations program. 12. Much remains to be done, however, to improve the program while the Hoi Chanh is in the Chieu Hoi center, especially in such areas as effective use of the rallier's time, literacy and vocational training, and medical care. Since the majority of returnees have earned their liveli- hood through agriculture, some thought is being given to farming land around the centers. There is a need for ralliers to be issued ID cards prior to leaving the center since, without them, employment is difficult, if not im- possible, in GVN-controlled areas. 13. Another problem, yet unsolved, is to determine what happens to ralliers after they leave the center. Residents of Chieu Hoi hamlets can be easily accounted for, but the overwhelming majority who settle elsewhere cannot be. From an administrative standpoint, the simplest solution may be to have ralliers report periodically to the National Police. Those remiss in doing so might suffer loss of "legal" status. SECRET Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 SECRET ! 14. This question of follow-up, a relatively new feature of the Chieu Hoi program, is one to which in- creasing attention must be paid if the program is to maintain its plausibility. Surveys of attitudes among Hoi Chanh indicate that a significant percentage of Viet Cong desiring to rally do so only after a "wait and see" period to discover what happened to others who preceded them. 15. During the period 15-21 January, 592 persons rallied to the government under the Chieu Hoi ("Open Arms") program. In this period reports were not received from 11 provinces, including six major provinces of IV Corps. A breakdown of Chieu Hoi returnees for this reporting period follows: I Corps 35 Military 307 II Corps 291 Political 201 III Corps 208 Other Elements 85 IV Corps 58 16. Preliminary figures for the period 22 to 28 Jan- uary indicate that 823 Viet Cong rallied to the GVN. In- cluded in these figures are 484 military, 257 political, and 82 other Viet Cong elements. The preliminary total for the first 28 days of January is 2,272. Chieu Hoi Summary for 1966 17. In 1966, 20,242 Viet Cong rallied to GVN. A breakdown of this figure lists 64 percent as "military," 31 percent as "political," and five percent in such "other" categories as civilian supporters. A survey conducted by the Rand Corporation of 1,350 of these 1966 returnees reveals the following breakdown: NVA troops 1 percent VC Main Force 6 percent VC Local Force 7 percent Armed Guerrilla 60 percent Civilian 26 percent 11-5 6h U RE-1 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 * SECRET = 18. Because of the small number surveyed, it is not possible to determine if, what appeared in an earlier poll to be a changing trend (that a larger percent of Viet Cong ralliers are from Main Force and Local Force units), continues to be true. In the earlier Rand survey of 6,000 defectors, from the period October 1965 to June 1966, the percentage of Main Force/Local Force ralliers doubled from eight to 17 percent over the nine-month period. With regard to the number of troops who bring in weapons, a survey conducted among 3,000 military ralliers from July 1965 to September 1966 revealed that ten percent of Main Force soldiers and village guerrillas, and 15 per- cent of Local Force soldiers and hamlet guerrillas rallied with weapons. SECRET Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 SECRET W Prices of domestic and imported com- modities in Saigon continued to rise dur- ing the week ending 30 January. Free market gold and currency prices, however, were slightly lower. The rice situation con- tinues to worsen, with rice prices up about 30 percent during the past month. Premier Ky has agreed to send a delega- tion to Bangkok to purchase Thai rice, The Saigon prefecturate has backed down on its attempt to liberalize pork marketing. Truong Thai Ton has been appointed secre- tary general for economy and finance to co- ordinate the activities of the five minis- tries concerned with economic matters. The US Embassy reports that Truong Van Thuan, who was recently given over-all responsibility for all of South Vietnam's ports, appears to be off to a good start in his new position. Prices 1. The steady rise in Saigon retail prices con- tinued during the week ending 30 January as these prices rose another three percent. Low stocks and anticipation of higher prices pushed rice prices up for the fifth consecutive week. On 30 January the price of the type of rice used by the working class reached 2,100 piasters per 100 kilograms compared with 1,650 piasters about a month ago. Although the price of pork bellies held steady at last week's price of 150 piasters per kilogram, the price of lean pork rose to 250 piasters per kilogram, or 14 percent above the previous week. Prices of beer, fish, bananas, bread,, and onion shoots also were higher, partly because of increased Tet demand. Sugar and condensed milk prices declined, on the other hand, as a result of increased distribution to dealers. Nonfood prices were generally unchanged. (A table of weekly retail prices in Saigon is included in the Annex.) III-1 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 0 SECRET W 2. Prices of imported commodities also rose about three percent. According to the USAID index for selected US-financed imports, commodity prices on 31 January were about 14 percent above a month ago. The most significant change during the week under review was a 20-percent increase in the price of cement, caused by the current low level of stocks. Currency and Gold 3. Free market currency and gold rates de- clined. On 30 January the price of dollars was 174 piasters per dollar, or one piaster below the previous week, whereas gold moved down two piasters to 223 piasters per dollar. MPC (scrip) fell three piasters to 112 piasters.per dollar in response to a rumor of a change in series. (A graphic on monthly and weekly free market gold and currency prices is included in the Annex.) Rice Situation 4. The rice situation continues to grow worse with rice prices up about 30 percent during the past month and rice stocks at very low levels. Because repeated US efforts to activate the GVN bureaucracy; to arrange for rice imports from Thailand have been unsuccessful, Ambassador Lodge called on Premier Ky on 28 January and urged him to send a high-level delegation to Bangkok immediately to purchase Thai rice before it is sold to other countries. Ky agreed to send an official soon. 5. Just prior to the ambassador's meeting with Ky, US officials discussed the rice stock crisis with Secretary of Commerce An, who said that a GVN delegation would be sent to Bangkok, possibly within a week. An also reported that he had cabled Na- tional Bank Governor Hanh, who is currently in Washington, and had asked him to arrange for the purchase of US rice--evidently 200,000 tons--on commercial terms for delivery during July-October when rice stocks may once again reach low levels. 6. Meanwhile, Assistance Secretary of Com- merce Trong told US officials that he, Secretary An, Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 V SECRET W and the director of the National Agricultural Credit Office were about to go to the delta to purchase rice, although they had no way of knowing how much rice delta merchants have on hand. Trong said the GVN delegation will be prepared to offer the going market price of the day on which the purchase is made. Consequently, the merchants will make a con- siderable profit since prices have risen markedly since the beginning of the season. Moreover, al- though the GVN team intends to describe their trip publicly as a familiarization trip in order to pre- vent further hoarding and price increases, the real purpose will quickly become obvious once GVN pur- chasing begins. The US Embassy feels that this trip is inadvisable because it could convince the merchants that the GVN is desperate for rice and result in more speculation and higher prices. Never- theless, Secretary An still intends to make purchases in the delta now rather than wait until stocks are built up with Thai rice. Recent Developments in Pork Marketing 7. On 23 January the Saigon prefecturate abandoned the system of rationing pork to retailers at an officially set price. Starting that day, re- tailers were to make their own arrangements for purchasing pork at prices to be agreed upon between them and the suppliers. The purpose of this action was to encourage larger deliveries of hogs to meet increased demand during Tet. Immediately following the announcement of this new system, however, there was a rise in the price to retailers, who protested the system and promptly boycotted the slaughterhouse. 8. As a result, the Saigon prefecturate has now backed down on its attempt to liberalize pork mar- keting. Rationing of officially priced pork to re- tailers was resumed on 29 January and will last through the end of Tet on 15 February. If the Min- istry of Commerce agrees, however, the official price of live hogs will be raised from 7,000 to 7,500 piasters per 100 kilograms of live hog and official retail prices also will be increased by seven percent. Pork retailers ended their boycott upon being informed that the old official price Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 SECRET W would not be enforced as long as retailers charged reasonable prices. Throughout the struggle between the retailers and the prefecturate, hogs continued to arrive at the slaughterhouse in good number. New Secretary General for Economy and Finance 9. Premier Ky has announced the appointment of Acting Secretary of Industry Truong Thai Ton to the position of secretary general for economy and finance. This position, which is essentially the same as that formerly held by Au Truong Thanh, had been abolished last November. Since that time it has become obvious to Vietnamese officials that a strong hand was needed to coordinate the activities of the three separate economic ministries of fi- nance, commerce, and industry.' In his new posi- tion as the highest ranking GVN economic official, Ton will supervise the operations of these three ministries as well as those of the ministries of labor, communications, and transportation. In addi- tion, Ton will serve as chairman of the Economy and Finance Committee which is the basic economic policy committee of the GVN. It was also announced that prominent businessman and former president of the Saigon city council La Thanh Nghe, who had been mentioned for the industry positionat the time of the November reorganization, has been officially appointed secretary of industry. 10. Apparently, Ton had refused to accept his new position earlier because it would have appeared that he had been named by former minister of economy Thanh who, in his blistering farewell speech last November, had recommended Ton as a replacement. With the passage of two months, however, Ton can now state that he was selected by the cabinet. Al- though the re-establishment of an over-all economic chief is a big step forward, Ton's first incumbency in this position (June 1965 - February 1966) demon- strated that he is a rather weak person. Conse- quently, the US Embassy does not expect strong eco- nomic policies or direction to emanate from Ton's new office. Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 W SECRET W Minister Thuan's Views on the Saigon Port 11. In a meeting with US officials on 25 Janu- ary, GVN Minister of Transportation and Communica- tions Truong Van Thuan, who was recently given over- all responsibility for all of South Vietnam's ports, outlined his views on the Saigon port problem. Thuan feels that special efforts should be made during the Tet period to induce importers to remove their goods from the port, particularly from the barges. One of his major themes was the need to increase the number of bonded warehouses that could be used for in-transit cargo, and to provide additional customs officials to cover these areas and give better service to importers. Thuan also noted that he had been studying the port situation intensively for almost a year and was now preparing an operational plan for immediate improve- ment of the port. He intends to circulate this plan among US officials with whom he hopes to work closely. Based on this initial meeting, the US Embassy com- ments that Thuan appears to be off to a good start in his new position. Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 a SECRET W 13 Jun 16 Aug 9 Jan 16 Jan 23 Jan 30 Jan 1966 b/ 1966 b/ Index for All Items 173 211 Index for Food Items 190 216 Of Which: (In Piasters) Rice-Soc Nau (100 kg.) 1,250 1,450 Pork Bellies (1 kg.) 90 100 Fish-Ca Tre (1 kg.) 130 170 Nuoc Mam (jar) 70 85 Index for Non-Food Items 140 190 Of Which: (In Piasters) Charcoal (60,kg.) 460 600 Cigarettes (pack) 10 14 White Calico (meter) 27 37 1967 1967 1967 1967 232 239 247 254 246 257 269 283 c/ 1,850 1,900 2,000 2,100 130 130 150 150 150 160 160 180 90 120 120 120 205 204 205 205 c 700 700 710 680 14 14 14 14 33 32 31 31 Electricity (kwh) 4.2 N.A. 5.2 5.2 5.2 5.2 c. Preliminary. b. Price levels just prior to and two months after the 18 June devaluation. a. Data are from USAID sources. For all indexes 1 January 1965 = 100. SEUR-ET Approved For Release 2008/03/06: CIA-RDP79T00826A001600010046-8 Weekly Retail Prices in Saigon a/ Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 w W 50 Saigon, Free Market Gold and Currency Prices PIASTERS PER US DOLLAR 31 DECEMBER 224 172 1964 1965 1966 1967 GOLD: Basis gold leaf worth $35 per troy ounce US $10 GREEN US $10 MPC Military Payment Certificate NOV DEC JAN 1966 1967 Approved For Release 2008/03/06: CIA-RDP79T00826AO01600010046-8 30 JAN