ECONOMIC AND MILITARY RECONSTRUCTION IN NORTH VIETNAM DURING DECEMBER 1969

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00205R000100190020-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: April 1, 2004
• Sequence Number: 20
• Publication Date: January 19, 1970
• Content Type: PERRPT

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Project No. >_L5567
Economic and Military hecons truct:Lol.i. in North Vietnam.
__... ng December
Introduction
The pace of reconstruction of fixed. military :facilities and.
industrial plants and. other economic developments in North Vietnam
provide an indication of .t-h.c regime's current policies towards sup-
port for the war in the South. `Ehis monthly report summarizes
significant developments in economic and military reconstruction that
might be relevant to an analysis of change in the North Vietnamese
19 January =L970
position.
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NI:uivtar hev`cl_opmen_ts
1. The Nor-t';h. Vietnamese tool, additional steps recently to
improve air. defenses in the southern Panhandle, particularly along
the North Vietnam-Laos border.
SA-2 missile launchers and, guidance equipment at the Dan Karai SAM
site about ten miles north of the Lao-North Vietnam border crossing on
Route 137, a major border crossing for infiltrating men and supplies
into Laos and South Vietnam. Later in December, equipment apparently
was moved nearer the border and used. to attack D -52's on a mission
over Laos west of Ban Karai. Up to five missiles were fired but no
damage was inflicted..
indicates the North Vietnamese
are also setting up an SA-2 site just east of the Mu G~.a Pass, a second.
major Laos.-North 'Vietnam border crossing.
2. The apparent changes in deployment
kL n
the Panhandle may be only the further expansion of air defense capabilities
that has been observed. since the bombing halt, or it may be specifica11y
to counter night reconnaissance missions by manned US aircraft aver the
region. A more likely possibility, however, is that the North Vietnamese
are building up a more meaningful threat against US 13-52's and other
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tact:i_cal aircraft st:r:i_].c.i_ng logic t i_cs ta:r:?gets in Los near the border.
The success of such measures was indicated by the temporary suspension.
of B-52 strikes against targets in the high.-threat area near t:hc Ban
Karat :Pass fallowing the SAM attack on 19 December. The North Vi.etnanese
probably will take advantage of favorable opportunities to employ the
SAM's and possibly even KEG's against US air operations both in Taos
and North Vietnam if the risk to them seems low.
3. The runway of the Quan. Lang airfield, which is on Route 7
near the Laotian border, appeared. to be serviceable
No flights to this base have been observed, however,
A large cave with at ]..east
two openings is being excavated in a karst hill 750 yards south of the
runway. Extensive grading, possibly for a taxiway, exter.i.ds approximately
200 yards from the cave entrances towards the airfield, indicating that
the cave might be used for a housing and maintenance facility for air--
craft. No conventional support faci_].i_ties, such as parking aprons or
aircraft revetments., have been observed at the airfield.
:Cndustrial Reconstruction
)-f. Little rcconstr1.a.ct:Lon was observed at major industrial
faci].:i:ties during the month, but
work on several- aspects of the electric ;Power networl
restoration
Of special note was the recently announced I)ovict plan to construct a
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power trans i.ss.ion. l:i_ne connect:i_n the hydroelectric powe.rpl_arrt under
colnst:ruct:i.on at 'IJ.hac Ba, With the :i.ndustr:i.al area at Thai Nguyen. Thac
Ba is already _l..:i.nked. to the existing power network by a, transmission
line to Rano.-i.., although the pl z1L probably w.i.:l.:l noL be operationatl_ :f'o:r
at least a year. The two transmission lines will be needed to transmit
,the full output from 'Uha.c Ba, and in addition a second. line will add.
greatly to flexibility in the network. At the Uong Bi powerplant
'7Th ac Ba and Uong
Bi. together will eventually have a generating capacity of at least
165,000 kilowatts -- nearly 90 percent of North Vietnam's pre-bombing
capacity.
5. hhrther reconstruction on the power d stri.but_ion network was
indicated by a Soviet press announcement in. early December :reporting
plans to build trans:?.ormers for North V_i_ctnwuT s major transformer
substation at Dong Anh near :f.Ian.oi which was destroyed during the bombing.
Substations at Nam Dinh. and. at Mon, Duong near Cain Pha were also mentioned..
Bestoration of the distribution network would do much to ease shortages
of electric power. that are still being reported in urban areas.
6. Elsewhere in industr. y,
suggest a renewed effort by
North Vietnam to export apatite in coming years. An expansion of
the furnace area is in progress and a now mining, area has been. opened
Within the past year.
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2me 1970 Si al,e Plan
8. Recently re:Lcased speeches gave a sketch.y outline of" North
Vietnaants State Plain. for 1970? Statem.ents by Vice Premier T,c Thanh
Ngh-i indicated. th,,=ct this year's plan will .remain bas=ically unchanged
.from the 1969 State Plan, providing for economic development as, long
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as the war effo.ri: :is not a:C_L'ected. !Although n.a:t: ana,:L defense was
not specifically cited. as the country's main goa:L, as in. the :L969
Plan, the. need to support; the war effort is a recurring theme in
Tie NJg''Lli's speeches. The most notable difference between the
two plans is the reduced emphasis in the :1.9'(0 lan on expan.ding
communication and transportation facilities. The fact that the
new plan is an annual plan with no mention made of the direction
that the economy will take after 19'(0, suggests that uncertainties
of the war continue to preclude the development of a long range
economic .plan.
9. The main tasks of the 19'(0 plan are an. increase in. agricultural
production, especially food and industrial. crops suitable for processing
and for export, and the increased production of consumer goods by local
industry. :Lower priority is to be given to heavy industry as well as
to communications and transport. As a comparison., the 1969 Plan., which
was formulated after the US bombing program had. ceased, named national
defense as its major goal, and communication. and transportation systems
were to 'be developed to assure a J.in.k. between the rear 'base and the
front :Line. In the production area the :1.969 Plan gave highest prior:i...ty.
t-o agriculture and consumer goods while a :Lower priority was assJ.gncd to
the development and_ expansion, of heavy -1.ndustry.
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Conclu.r:s i.on.s
14. Developments in m1_1J.ta.ry construction during December were
related, primarily to improvements in -".lie air d.e:f:ense system in the
southern Panhandle. A surface to ai.r. mi,s il_e unit was moved near the
and. subsequently fired. at U.S aircraft
over Laos west of 13a.n Karai pass; a surface-to-air missile site was
nearing completion near Mu Gia pass.
The runway of the Qu.an.
Lang airfield on Route 7 appears serviceable, 'hut no aircraft have yet
been noted using it.
15. Little new industrial activity was observed throughout the
country, but
continuing work
at the Thac Ba and. Uong :13i electric powerplants. When completed, these
two plants wil.1 have a capacity equal to n.earl.y 90 percent of t:h.e coun:try's
total pro-bombing electric power capacity.
A sketchy outline of North Vietnam's 1970 ,State Plan was revealed in
speeches by Vice :P,rcmi_er Tie if'hanh Nghi.; few changes froms. year's
plan. were apparent. Increases in agricultural_ output and consumer goods
by local industry were the main production tasks, but support of the war
effort was a recurring theme throughout the speeches.
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