ECONOMIC AND MILITARY RECONSTRUCTION IN NORTH VIETNAM DURING OCTOBER 1969

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00205R000100190022-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: April 1, 2004
• Sequence Number: 22
• Publication Date: November 18, 1969
• Content Type: REPORT

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18 November 1969
Project No. 51.5567
Economic and Military Reconstruction in North Vietnam
During October 1969
Introduction
The reconstruction of military and economic facilities in
North Vietnam is of continuing importance because of the implications
for support of the war and conduct of negotiations for peace. Economic
conditions become an increasingly important factor influencing regime
position.
policies as the war drags on. This monthly report summarizes signifi-
cant reconstruction developments to highlight those factors that might
be relevant to an analysis of change in the North Vietnamese bargaining
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Military Construction
1. The new airfield under construction at Quan Lang, 40 miles
northwest of Vinh and 18 miles from the Laotian border, is almost
ready for jet fighter operations.
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completion of the runway alignment with work being done on its earth
surface. The 6600 x 115-foot runway is long enough to handle any of
the jet fighters in North Vietnam's air inventory. Although no support
facilities have been observed thus far, a tunnel currently being
excavated in a nearby hill may be intended for support/storage purposes.
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approximately 3600 feet of runway were serviceable and
an additional 1300 feet were being worked on. Repair work at this
field was noted in December 1968 and May 1969, but it was intermittent
and of short duration. The Dien Bien Phu airfield could be used by
small cargo aircraft and as a recovery/emergency jet airfield in sup-
port of operations over Northern Laos.
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Agriculture
6. The regime is continuing attempts to improve food production,,
publishing during the month guidelines on raising hogs, the main source
of meat and an important source of fertilizer. Although long-run
aspirations for socialization of agriculture have not been abandoned,
the recent regulations encouraged private initiative by setting aside
small amounts of paddy and maize from the cooperatives to support the
family hog raising. The regulations also required the cooperatives
to increase hog raising by devoting to hogs 50 percent of the sweet
potatoes and manioc produced and 5 percent of cooperative land. Vice
Premier Le Thanh Nghi earlier had acknowledged that collective animal
husbandry was not satisfying domestic needs. Less than a third of the
cooperatives are actively engaged in animal husbandry and the. raising
of some 5.2 million hogs in North Vietnam is basically a family side-
line.
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11. A North Vietnamese trade and aid delegation headed by Vice-
Premier Le Thanh Nghi continued the annual tour of Communist countries
to conclude agreements for economic and military aid for 1970. Premier
Pharr Van Dong, who was in East Germany in October for the 20th National
Day celebration, was a brief addition to the delegation in East Germany
and the USSR. Negotiations were also concluded during October with
Poland and Romania. 'Le Thanh Nghi is currently in Bulgaria and will
conclude his tour with visits to Hungary and Czechoslovakia.
12. The terms of this year's agreements closely resemble those of
earlier years with vague references to non-refundable economic and*
military assistance, long-term credits, and mutual trade for the coming
year. As in earlier years, neither values nor specific provisions of
the agreements were announced. A new aspect this year was the reference
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to formation of "joint economic committees" with Poland and East
Germany to iron out problems concerning the implementation of aid
agreements and to coordinate future economic-technical cooperation
between the countries.
13- Swedish and other Free World political leaders continued to
debate the extension of Swedish aid to North Vietnam announced last
month. The Swedish government apparently will initiate its three-
year aid program on 1 July 1970, as originally announced, despite
protests from both domestic and foreign sources, particularly from
other Scandinavian countries. One-third of the more than $40 million
total will be grants, with the remainder in the form of credits. The
only modifications Sweden has made since the original statement are
that until the war is over in South Vietnam, disbursements will be
for "humanitarian aid" only and will be administered through the Red
Cross rather than directly by the Swedish government. It is still not
clear if Stockholm intends to incorporate this aid into the broader
Nordic Plan that also involves Norway, Denmark, and Finland.
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Conclusions
14. Air defense construction during October continued to be
oriented towards the war in Laos. The new Quan Lang airfield north-
west of Vinh was being readied for jet fighter operations, and repair
work was stepped up at Dien Bien Phu airfield in the northwest.
Fourteen jet fighters are now based at the Bai Thuong airfield,
suggesting a continuing concern by the government for air defenses
in the Panhandle.
15. No significant improvements were noted in the industrial
sector of the economy, but planning went forward on a number of projects
to increase output capacity in cement-and electric power. Continued
work on the Haiphong cement plant
facilities which produce major export items. The regime issued
regulations to promote increases in both private and cooperative
hog production. The latter is failing to meet the country's needs
for hogs, a major source of meat and an important source of fertilizer.
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.17. The annual aid-seeking tour to Communist countries by
Vice-Premier Le Thanh Nghi was continued this month, with only
Hungary and Czechoslovakia remaining on the agenda. A new feature
this year in the agreements with Poland and East Germany was the
reference to formation of "joint economic committees" to aid in
implementing and coordinating economic assistance. Sweden apparently
plans to carry out its three-year aid program to North Vietnam
announced last month, although foreign and domestic protests have
limited the disbursement of funds for "humanitarian" purposes, while
the war continues in South Vietnam.
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