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Vietnam Black Market, May 20, 1966” of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R The original documents are located in Box D20, folder “Vietnam Black Market, May 20, 1966” of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. The Council donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box D20 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library CONGRESSMAN NEWS.,.., _, GERALD R. FORD " ·-~·. HOUSE REPUBLI;CAN LEADER RELEASE FOR.'!EUAS'I AT 6:30 P.M. FRIDAY, NA-V ::lo, 19"t. .. SPEECH EX.PJ~S-·)\Y,. ~p ~- GERALD R. FORD,. R•MICHIGAN ~ _. • ·. • • ~ ~ • ,r ' Black market act'tvittes in Vietnam have milshroomed inttf1iuC!i a smelly mess that the State Depar.tment has decided to admit they exist .• '.·>· ,· · The State Department concedes that the war effort in Vietnam is beset by black ~rketeering, cor.iuption; speculation and ·the faliing· of U.s. economic aid goods into the hands ·of the viet.cong'•. · Officials made these concessions when a newsman charged that the Vietcong was getting more of its supplies from the black market and other South Vietnam sources than through the famous Ho Chi Minh Trail. The State Department claims that the Vietcong have captured these supplies-- radio receivers, drugs, food stocks, seeds, and other items--in taking over or making raids on villages initially under Government control. they add that trucks hauling AID commodities in rural areas have been seized by the Vietcong. In contrast with this explanation, we find Saigon correspondent J. w. Cohn of Fairchild News Service reporting that "the United States is indirectly ' financing and supplying the enemy" in Vietnam. It is American AID dollars, Cohn declares flatly, which make it possible for the black market in Saigon to flourish. He also points to other black market sources: American Gl's selling Post Exchange goods to black marketeers; American trucks "delivering" military supplies into "the wrong hands;" American stevedoring operations which "virtually encourage pilferage;" and "the fact that two-thirds of Vietnam's commercial import dollars come from United States AID funds." I think this is a disgraceful situation, and the State Department explanation does not really explain it. The State Department admits the black marketeering, so it seems obwious the Vietcong raids are not the whole answer to the problem of u.s. goods finding their way into enemy hands. (MORE) SPEECH EXCERPTS We had plenty of black darketeerinl during during World War II, as all Americans know. But there is... a. pain:ful: df:;.fferenee between that black market activity and the shady trading now going on in Vietnam. the black marketeering carried on by GI 1 s during World War II merely put !• dollars in their pockets, but the black ~rket ·acttvlties in Vietnam are he.lpj.ng the enemyflgbt us. that is nothing short of tragic. The State Department, in eUec_t~ ,~i~"r'~s. the .p~ack marJte~eering in Viet!ltlm:.as being of no great. conseq~~~~~!" .:,,.·: . ~:t.·. ~Jhe· Defense Department i~ :eharging. :th~t tbe 325 American neWSID8n in.. VietnSJil are the real villains in the black market scandal there~ Meantime ~ssistant Secretary of Defense Thomas D. MOrris is checking on black marketeering in Post Exchange goods, and a House subcommittee has just completed a Vietnam black market investigation. Whatever these investigations reveal, it is imperative that the Defense . ' '•. Department and the Agency for International Development act to halt black market aid to the enemy in a war that seems to have no end. *** As if the taxpayer were not already sufficiently afflicted, President ' Johnson has come to Congress with a debt refinancing scheme that will cost ' . Americans added millions of dollars each year. His idea is to pour billions of dollars in government-.owned mortgages and other financial assets into a pot at the Federal National Mortgage Association (Fannie Mae) and sell shares to private banking interests. The miraculous result would be to obtain fresh private funds for government agencies to spend without having this spending show up in the budget. But the sand in this well-oiled financial machinery is that it costs more to borrow money this way than through sale of government bonds. Net result is that the taXpayer gets hurt. Even the Americans for Democratic Action are against this Great Society scheme. They say it will result in tighter money because of higher interest rates, thus harming farmers and small businessmen. 'l'bis is one time when the ADA and I agree. .· ", ... :. CQ_f'!I.GRESSMAN NEWS o·ERALD ·R. FORD · HOU~E R_,UB!,.ICAN LEADER RELEASE FOR RELEASE AT 6:30 P.M. '. FRIDAY, /YijlV «a) I'll.(.. SPEECH EXCERPTS--BY REP. GERALD R. FORD, R-MICHIGAN Black market activities in Vietnam have mushroomed into such a smelly mess that the State Department has decided to admlt they exist. The State Department concedes that. the war effort in Vietnam is beset by black marketeering, corruption, speculat.ion and the falling of U.s. economic aid goods into the hands of the Vietcong.' · Officials made these concessions when a newsman charged that the Vietcong was getting more of its supplies from the black market and other South Vietnam sources than through the famous Ho Chi Minh Trail. The State Department claims that the Vietcong have captured these supplies-- radio receivers, drugs, food stocks, seeds, and other items--in taking over or making raids on villages initially under Government control. they add that trucks hauling AID commodities in rural areas have been seized by the Vietcong. In contrast with this explanation, we find Saigon correspondent J. w. Cohn of Fairchild News Service reporting that "the United States is indirectly ' financing and supplying the enemy" in Vietnam. It is American AID dollars, Cohn declares flatly, which make it possible for the black market in Saigon to flourish. He also points to other black market sources: American GI's selling Post Exchange goods to black marketeers; American trucks "delivering" military supplies into "the wrong hands;" American stevedoring operations which "virtually encourage pilferage;" and "the fact that two-thirds of Vietnam's commercial import dollars come from United States AID funds." I think this is a disgraceful situation, and the State Department explanation does not really explain it. The State Department admits the black marketeering, so it seems obwious the Vietcong raids are not the whole answer to the problem of u.s. goods finding their way into enemy hands. (MORE) ·2- SPEECH EXCDP'l'S We had plenty of black marketeering during during World War II, as all Americans know. But there is.:,, -pa~~ul. difference between that black market activity and the shady trading now going on in Vietnam. The black marketeering carried on by GI's during World War II merely put ' ·~ . ~ dollars in their pockets, but ythe black market activities in Vietnam are helpi~,tg_ ~he enemy fight us, •.. That is .not.htng short of J:ragic. , The State Departme~t..: 1~ effect, ~~~~is,ses the black marketeering in VietnJm: .a.s being of no gr.:.eat. eonse,q.~.~~e.. • : The Defen.se DepartmeAt· ..is. chargin& ,th~t th~ 325 American ne~smen in Vie.tnam are the real villains in the black market. scandal. there. Meantime Assistant Secreta~::y: of Defense Thomas D. Morris is checkins on black marketee~ing in Post Exchange goods, a~d a Hous,e subcolmllittee has just completed a Vietnam black market .investigation. Whatever these inyestigations reveal, it is imperative that the Defense Department and the Agency for International Development act to halt black .._ • I • market aid.t~ the enemy in a war that seems to have no end. *** As if the taxpayer were not already sufficiently afflicted, President Johnson has come to Congress with a debt refinancing scheme that will cost Americans added millions of dollars each year. ~ ~ ,.. ~ . His idea is to pour billions of dollars in government-owned mortgages and other financial assets into a pot at the Federal National Mortgage Association (Fannie Mae) and sell shares to private banking interests. The miraculous result would be to obtain fresh private funds for government agencies to spend without having this spending show up in the budget. But the sand in this well-oiled financial machinery is that it costs more to borrow money this way than through sale of government bonds. Net result is •.. that the taxpayer gets hurt. ' Even the Americans for Democratic Action are against this Great Society scheme. They say it will result in tighter money because of higher interest rates, thus harming farmers and small businessmen. This is one time when the ADA and I agree. Ill .
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