ORGANIZATION OF THE ECONOMIC SERVICE IN INTERZONE III

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R014600370010-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Sequence Number: 10
• Publication Date: October 29, 1952
• Content Type: REPORT

Approved For Release 2007/03/02 : CIA-RDP82-00457RO14600370010-3
rune ~u. 51-iIAA
FEB 1952
CENTRAL INTELLIGENCE AGENCY
CLASSIFICATION SECRET/CONTROL U.S. OFFICIALS ONLY
SECURITY INFORMATION
INFORMATION REPORT
CD NO.
COUNTRY Indochina
SECRET/CONTROL o U.S. OFFICIALS ONLY
25X1SU BJECT organization of the Economic Service in Interzone III NO.OF PAGES 2
NO. OF ENCLS.
(LISTED BELOW)
OF THE UNITED STATES, WITHIN THE MEANING OF TITLE 18, SECTIONS 793
AND 794, OF THE U.S. CODE, AS AMENDED. ITS TRANSMISSION OR REVE-
LATION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHORIZED PERSON IS
PROMIBITEO BY LAW. TNT REPRO9UCTI9N OF .THIS FORM I5 _PROHIBITED.
DATE DISTR. 29 October 1952
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
Organization
1. The Democratic Republic of Vietziam. (DRV) Economic Service in Interzone III is
staffed by about 300 employees. It is divided into two branches;
a. Commerce. Both internal and with French-controlled zone.
b. Industry and.the working classes. Industry is practically non-existent
with the exception of a few government-controlled war materiel workshops.
2. Like all the other DRV Government bureaus, the Economic Service is mobile and
its whereabouts kept secret. It has a permanent delegation, however, stationed
at Dong Quan, near Phu Ly. Its only real function is that of a receiving
station for reports, it usually takes about one day for the delegation to get
in touch with the directors of the Service..
3. In theory,, the Interzone Economic Service controls the provincial Services.
In reality, however, the various political and administrative bureaus often
attempted to take care of their own economic needs. The disorganization re-
sulting from this state of affairs was virtually abolished.following the
government decision to merge all'financial organizations into a single body
(co quan mau dick) in early 1951,
Policy
I+. until late 1950 the DRV Economic Service imposed an economic blockade on trade
with the French zone, with the exception of the importation items "vital to the
resistance", including explosives and medicines. In early 1951 this blockade
was lifted and free exchange permitted. This action was taken because of the
I I 1
Approved For Release 2007/03/02 : CIA-RDP82-00457RO14600370010-3
STAT- By
ARMY
FBI
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SECRE C0' OL - U.S. OFFICIALS ONLY 25X1
difficulty in maintaining the blockade as the area, under DRV control increased
in size and because of the insistence of the Chinese advisers that as much as
possible be purchased in the French zone with Ho Chi. Minh.banknotes .
The lifting of the blockade resulted in a rapid devaluation of the Ho Chi Minh
piaster and .a serious decline in local handicraft, which suffered in competition
with goods from the French-controlled zone. During 1949 and -1950, several fairs
were organized displaying local products: mostly items of daily necessity in-
cluding cotton arse, paper. The decline in local manufacturing since the lifting
of the blockade has affected' one of the principal means of livelihood of the
population, primarily the age:.( i .,habitants who .can no longer live off the. : land ..
Trade with Communist China.
6. Trade between the DRV zone and Communist China is -practically non-existent because
the Chinese goods Twast be paid for with gold or foreign currency,, either Indo-
chinese piasters or dollars. Free exchange between the two countries in the
border area was effected with lmdochinese piasters before 1949$ but since the
Chinese Communist regime was installed, by direct exchange of merchandize, Ho
Chi Minh notes are no.longer acceptable
Chinese Communist Aid
7.
Chinese aid to the DRY is exclusively military. Economic aid has not yet been
discussed and until now no Chinese products are found on the market in the DRV
zone. The only indication of any economic aid has been, during ,the past few
months when five meters of blue Chinese cloth were sold at a low price to .every
official. in the Viet Bac irterzone.
8. On the other hand f it is probable that a large supply of rice is sent to China
from the Viet Bee. In spite of the large amount available to the Viet Bac, the
population there is relatively poor and the standard of living is reduced to an
absolute. minimum.
Direction of the Mi,aistr of Ee xao
Phan Anh, the Minister of Economy, has not sigxed any Ministry circulars since
1950) with the exception of assignments of service heads. Anh lives in Tuyen
Quang, about 20 miles away, from the Ministry, and visits it only - wo or three
times a year. The work of the Ministry is actually directed by Dang Viet Chauy
former director of the thiiatry of Interior. He replaced Dui Cong Trung in late
1951, when the latter was named Secretary of State for Interior.
10. In April 1952 the Ministry changed its riax to the Ministry of Randicraft and
Co=erce (Lo Cong ltohuong) . [leneral Tran Dai Ngh1al in Secretary of State to this
Ministry, primarily occupied with the organization of war industries.
BRV Currency
11. The appearance of !F0 Chi Mina: notes varies with each Interzone, Each Interzone
has its own printing press. That of Interzone III is the least impcrtant,. being
in a combat zone, and is at Thai Dinh. The paper used for the notes differs
widely arii the. control of counterfeit 'bills is absolutely impossible.
SECRET/C O I"CCL U.S., OFFICIALS ONLY
Approved For Release 2007/03/02 : CIA-RDP82-00457RO14600370010-3