◆ SpookStack

_ to last out the year and leave. The elvilians are often quite candid about their high pay end their fringe benefits and their feeling t that they would not be able to do nearly @s well back in the States. . . ae $. There is great demoralization among: “many Vietnamese because of the low esteem in which they hold the Saigon regime. They feel that it is corrupt and graft-ridden. They have little respect for its leaders. On the other hand one hears Americans and Vietnamese alike refer to the NLF in terms of respect; they consider the NLF to be honest in its dealings with the peasants and they say that the NLF leadership is close to the people rather than separated by distinctions of status and privilege. Wa 6. The recent elections aroused little or no enthusiasm among the Vietnamese. The feeling was widespread that the elections were rigged from start to finish. 7. ‘There is virtually no freedom of dissent or of independent political action. One hears persistent rumors that the jails are packed with political prisoners who are subjected to torture and beatings. . -.- - 8. The elections are viewed by Vietnamese and many Americans as changing nothing in Vietnam, but useful to the Johnson Administration for Propaganda purposes — in the U.S. In this situation I reached three baste conclusions, one economic, one humani- tarian, and one political. I. The economy of South Vietnam is being destroyed by the war, perhaps irretrievably. . South Vietnam, instead of remaining # major rice export area, is now importing nearly one million tons this year. Rubber_exports have been cut in half, <A signifi- «ant new War-related export item is scrap metal, bought by Japanese junk dealers and shipped to Yokohama. - Meanwhile imports of highly sophisticated western products, mainly from the U.S. and Japan, soar. In four years the ratio of imports to exports has gone up from 4-to-1 to 25-to-l. . ret “This grossly artificial economic activity is made possible, and even essential, by the vast influx of consumer buying power in the form of wages, both military and civilian, and other war-related activities. Without the flood of western imported goods inflation would bring all economic activity to halt. As it is, inflation is a@ continuing crisis problem. Those who suffer most are the villagers and those who profit the most are the urban privi leged class in government, business, and the upper devels of the military. ‘The Vietnamese earn money in this U.5. Financed economy by the services they render in several major highly lucrative, sar-related occupations: (1) the construc- tion of luxury housing and office buildings for foreigners and wealthy Vietnamese, - (2) military service, (3) prostitution, and (4) bribery and influence peddling.