AIR SUPPORT FOR SOUTH VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01048A000800320016-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 19, 2016
• Document Release Date: December 2, 2005
• Sequence Number: 16
• Publication Date: May 8, 1974
• Content Type: MF

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ApprovedQpr Release 2006/01/033)
Al R
P80 M GJ948A0008Q0320016-4
8MAY1974
~1E',IORANDUM FOR: Director of Central Intelligence
VIA Acting Deputy Director for Operations
SUBJECT Air Support for South Vietnam
1. Action Requested: This memorandum contains a
recommendation for your approval in paragraph 4.
2. Background:
A. Air America is currently disengaging from
operations in Laos and Thailand. Upon expiration of their
current contract with USAID/Vietnam 31 December 1974 and.
the ICCS contract in Vietnam 28 February 1975, Air America
will be completely out of operation. Continental Air
Services, Inc. (CAST) has established a minimal foothold
in South Vietnam by virtue of a joint agreement with Air
Vietnam. CAST flight operations in Laos will be signifi-
cantly reduced and they consequently are reviewing their
ability to remain profitably viaole in the area.
B. The EA Division and USAID will require
continuing contractor air support for operations in South
.Vietnam and Cambodia after Air A:::erica's disengagement.
To meet this requirement USAID will need to offer Requests
for Proposal (RFP's) to air contractors by September in
order to have time to process and accept bids for follow
on air support beginning 1 January 1975. The dollar value
of USAID's contract for Calendar Year 1975 will roxi-
matel ten million
Additionally, the State Department his identified $2.4
million for the ICCS contract for FY 1975, which may or
may not be performed by the same contractor.
C. In addition to Air America, CASI has been
the only other American operator of .any significance
providing air support in Souc.h_ea~t Apia to the U.S.
Government outside of the Military Airlift Command. With
CJ, BY
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the planned dissolution of Air A*nerica by the end of
December 1974 in any case, we believe it in the best
interest of the U.S. Government and the Agency to take
advantage of CASI's desire to maintain its viability and.
thereby ensure a capability to meet continuing air support
requirements in Vietnam and Cambodia. Air America's current
contract with USAID has a provision for a six month extension
(to 1 July 1975) if USAID desires. We propose that a team
composed of appropriate representatives from the DDO and
DDM&S (and USAID as appropriate) be established for discussions
and negotiations with CASI immediately to accomplish the
following:
1. Provide CASI with specific information
on follow on mission air support requirements in Vietnam
and Cambodia.
2. Work out arrangements for CASI to take
over Air America's contracts in South Vietnam by 1 July
1974 or as soon thereafter as feasible.
3. Work out arrangements with USAID and
other concerned mission elements and DDO for the orderly
transfer of contractor responsibility from Air America to
CASI, including Government furnished equipment and facilities.
D. In arranging for CASI to take over Air America's
operations this summer, rather than awaiting the outcome of
bidding on the USAID contract for operations beginning in
January 1975, the U.S. Government would be assured of a
contractor capability to meet air support requirements in
Southeast Asia. Longer term job opportunities would be
afforded for many of Air America's experienced personnel,
particularly helicopter pilots. Air America's equipment
which would be surplus to CASI's requirements could be
disposed of earlier, thereby hastening the dissolution of
that company.
E. Since CASI would nDed to make a substantial
investment; e.g., as much as a million dollars in working
capital, to take over Air America's contracts for only a
few months and there is a possibility, and risk, that they
night not obtain the USAID contract to be awarded for
Calendar Year 1.975, we propose toat ;ASI be permitted to
purchase or to lease with th-, op.-.ion to purchase by
Approved For Release 2006/01/03 CIA-RDP80M01048A000800320016-4
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31 December 1974 required Air America equipment at acceptable
rates.
F. Regarding the ICCS contract we propose that
in coordination with the State Department CASI be induced.
to take over this contract either under CASI or through a
new subsidiary.
3. Staff Position: Representatives of EA Division,
and DD &S participated in preparation of this
proposal.
4. Recommendation: It is requested that you approve
the establishment of a negotiation team to meet with CASI
as soon as possible with the objective of transferring Air
America's contract operations in South Vietnam and Cambodia
to CASI as proposed in this memorandum at the earliest
feasible date.
25X1
ieo ore ac ey
Chief, East Asia Division
~(,) / (7~
-1 -1
Acting Deputy Director for Operations Date
See memo to DCI from Air AdviFcr, DLM&S dtd. 22 May 1974
(DDM&S 74-1844)
Deputy Director for Management & Servi~ ces Date
Approved For Release 2006/01 03 .GI DP80M01048A000800320016-4
 Approved pr Release 2006/01/03 F Dp80M( 48A000800320016-4
SUBJECT: Air Support for South Vietnam
Distribution:
Orig F7 1 - Addressee
1 - DDCI
-1- ER
1 - A/DDO
;L - DDM&S
1 - C/EA
1 - DC/EA
I -
1 - TB
I - C/VNO
(8 May 1974)
Approved For Release 2006/01/03 :.CIA-RDP80M01048A000800320016-4
 1b 2006/01/03: CIA-RDI?8rM@1 bt"QA320016-4 ^ SECRE1
^ UN CLASS IFIfpprovec~Fori ~ nNIV
ROUTING AND RECOD SHEET
SUBJECT: (Optional)
Air Support for South Vietnam
FROM: E) EN iION NO.
Chief, East Asia Division
DATE 8 MAY 1974
TO: (Officer designation, room number, and
DATE
building)
i FICER'S
COMMENTS (Number each comment to show from who;,i
RECEIVED
FORWA6DED
It-IITIALS
to who+n. Draw a line across column after each comment
7E12
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CIA-RD
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