ECONOMIC AND MILITARY RECONSTRUCTION IN NORTH VIETNAM DURING MAY 1970

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00205R000100190015-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: April 1, 2004
• Sequence Number: 15
• Publication Date: July 17, 1970
• Content Type: REPORT

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17 July 1970
Project No. 51.5567
Economic and Military Reconstruction in North Vietnam
During -MAY ,1970
Introduction
This monthly report reviews developments in the reconstruction
of fixed military facilities and industrial plants and new construction
activities that are pertinent to North Vietnam's continuing support of
the war and to economic recovery.
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a srum aatos,~
164aho 5-8
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POL Pipeline
of the pipeline system in the area northeast of Haiphong. Inter-
mittent construction has been observed over a distance of about 30
miles westward from Hon Gai, but it is not yet possible to determine
how far west the line will extend. At least one terminal at the
eastern end apparently will be located at Va Chai, a damaged naval
base and shipyard across the bay from Hon Gai. Deep water is avail-
able near the terminal, but the tanker mooring facilities and the
channel improvements which will be needed before petroleum can be
discharged directly from the tankers into the pipeline system have
not yet been observed.
.will have sufficient capacity to accommodate all of North Vietnam's
annual petroleum supplies normally imported in bulk by tanker. The
type of construction involved
suggests
that the system will be a permanent oil transport medium, designed
to provide an alternative to the current oil import procedure at
Haiphong.
Industrial Reconstruction
2. Limited production has resumed at the Thai Nguyen Iron and
Steel Complex in North Vietnam, after a three year hiatus brought
about by US airstrikes. The start of operations at both the blast
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furnace and the coke plant
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The steelmaking facilities had not been completed before
the initiation of the bombing program and are not expected to be
operational for some time. The capacity of the single operational
blast furnace exceeds the needs of the domestic economy, and it is
expected therefore that exports of pig iron will resume in the near
future. Japan probably will be the principal buyer as in earlier
years, but it is doubtful that foreign exchange earnings will be
significant.
3. The Iron and Steel Complex was Communist China's most
sophisticated and costly contribution to North Vietnam's industrial
t /Y
'no s have an he ( T_)
?~F?
program, but briol'e is the Ch-i vi nP'
with the reconstruction of the bomb damaged facility since October
1966. The steps necessary to restore the currently operational blast
furnace were well within the technical competence of the North Vietnamese.
Further reconstruction, however, would probably require outside assis-
tance.
I+. Upgrading of North Vietnam's electric power industry continued
but no new generating capacity was put into operation. The Hon Gai
powerplant was observed to be shutdown, probably to accommodate more
extensive repairs. In June, the first signs were noted of reconstruc-
tion activity on the Haiphong East powerplant since the plant was
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destroyed in the spring of 1967. This will bring to twelve (out
of thirteen) the number of powerplants on which repair of bomb
damage has been undertaken.
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Agriculture
6. The 5th-month crop which contributes about one-third to the
country's annual domestic rice output was apparently harvested on
schedule. Press reports early in the year indicated that the 1970
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harvest would be about two weeks late because of adverse weather
conditions and by 10 June only one-third of the harvest had been
completed. However, the regime apparently was successful in
mounting a massive manpower mobilization drive and by 25 June it
was announced that 90 percent of the harvesting had been completed,
thereby bringing the harvest up to schedule. The yield, however,
was described as only "satisfactory", suggesting that the output
was not sufficient to preclude the continuing need for food imports
well in excess of pre-bombing levels.
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10. Construction efforts continued at the western end of the
new extension of the Chamber of Commerce wharves. Pile driving
activity for the outer quay wall was extended to a point in front
of the Hospital Wharf. Dismantling of the latter facility has
apparently been discontinued. to facilitate land fill operations,
which have been expanded to the eastern end of the wharf, The new
quay's rail lines, only recently connected to the port area's existing
rail network, allow the North Vietnamese to off-load cargo directly
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from the docked ships onto rail cars by using their portal jib
cranes, three of which are in operation and a fourth is being
assembled.
11. Relations with other Communist countries during the month
were highlighted by the signing of supplementary military and economic
aid agreements with the USSR and with East Germany. No details were
released as to volume and type of aid by either Moscow or Pankow,
although it was announced that German aid was to be nonrefundable.
These supplementary aid agreements and the similar aid agreement
signed with Communist China last May are not expected to change
significantly the current Communist assistance program.
12. A Swedish Red Cross delegation departed Stockholm in late
dune for Hanoi to discuss Cu:Lure uwcdizh Lid to North .Ticl.ila a. The
6.8 million appropriation from the Swedish government
for the purchase of humanitarian aid for North Vietnam, but only $2.2
million has so far been earmarked. -The form that the remaining
4.6
million will take is a major topic to be discussed; paper and chemical
fertilizer have been the main commodities mentioned.
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Conclusions
13. There were no military developments of significance,
within North Vietnam during the month of June, and only slight
improvement was noted in some sectors of the economy. Work con-
tinued on the POL pipeline emanating from Hon Gai, but the western
terminus has yet to be determined. When completed, the line should
provide a more efficient means of off-loading POL than is currently
available.
14.
was resumed at Thai Nguyen Iron and Steel Complex for the first time
in three years.
Pig iron _- duction
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economy, the regime has reportedly harvested the 5th-month rice crop
on schedule, but the output is apparently not sufficient to reduce
t-Ianoi's dependence on a continuing high level of imported foodstuffs.
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