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{
    "localId": "4525941",
    "label": "Vietnam Black Market, May 20, 1966",
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{
    "id": "4525941",
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    "contentType": "document",
    "title": "Vietnam Black Market, May 20, 1966",
    "citationUrl": "https://catalog.archives.gov/id/4525941",
    "collections": [
        "Gerald R. Ford Congressional Papers",
        "Speeches"
    ],
    "subjects": [
        "Vietnam (Republic)",
        "Corruption",
        "Debts, Public",
        "Vietnam War, 1961-1975"
    ],
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    "type": "document",
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    "ocrText": "The original documents are located in Box D20, folder \"Vietnam Black Market, May 20,\n1966\" of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R.\nFord Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. The Council donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box D20 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library\nNEWS\nCONGRESSMAN\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR RELEASE AT 6:30 P.M.\nFRIDAY, MAY 20, 1966\nSPEECH EXCERPTS--BY REP. GERALD R. FORD, R-MICHIGAN\nBlack market activities in Vietnam have mushroomed into such a smelly mess\nthat the State Department has decided to admit they exist.\nThe State Department concedes that the war effort in Vietnam is beset by\nblack marketeering, corruption, speculation and the falling of U.S. economic\naid goods into the hands of the Vietcong.\nOfficials made these concessions when a newsman charged that the Vietcong\nwas getting more of its supplies from the black market and other South Vietnam\nsources than through the famous Ho Chi Minh Trail.\nThe State Department claims that the Vietcong have captured these supplies--\nradio receivers, drugs, food stocks, seeds, and other items--in taking over or\nmaking raids on villages initially under Government control. They add that\ntrucks hauling AID commodities in rural areas have been seized by the Vietcong.\nIn contrast with this explanation, we find Saigon correspondent J. W. Cohn\nof Fairchild News Service reporting that \"the United States is indirectly\nfinancing and supplying the enemy\" in Vietnam.\nIt is American AID dollars, Cohn declares flatly, which make it possible\nfor the black market in Saigon to flourish.\nHe also points to other black market sources: American GI's selling Post\nExchange goods to black marketeers; American trucks \"delivering\" military\nsupplies into \"the wrong hands;\" American stevedoring operations which \"virtually\nencourage pilferage;\" and \"the fact that two-thirds of Vietnam's commercial\nimport dollars come from United States AID funds.\"\nI think this is a disgraceful situation, and the State Department explanation\ndoes not really explain it.\nThe State Department admits the black marketeering, so it seems obvious the\nVietcong raids are not the whole answer to the problem of U.S. goods finding\ntheir way into enemy hands.\n(MORE)\n-2-\nSPEECH EXCERPTS\nWe had plenty of black marketeering during during World War II, as all\nAmericans know. But there is,a, painful difference between that black market\nactivity and the shady trading now going on in Vietnam.\nThe black marketeering carried on by GI's during World War II merely put\ndollars in their pockets, but the black market activities in Vietnam are\nhelping the enemy fight us. That is nothing short of tragic.\nThe State Department, in effect, dismisses the black marketeering in\nVietnam as being of no great consequence.\nThe Defense Department is charging that the 325 American newsmen in Vietnam\nare the real villains in the black market scandal there.\nMeantime Assistant Secretary of Defense Thomas D. Morris is checking on\nblack marketeering in Post Exchange goods, and a House subcommittee has just\ncompleted a Vietnam black market investigation.\nWhatever these investigations reveal, it is imperative that the Defense\nDepartment and the Agency for International Development act to halt black\nmarket aid to the enemy in a war that seems to have no end.\n***\nAs if the taxpayer were not already sufficiently afflicted, President\nJohnson has come to Congress with a debt refinancing scheme that will cost\nAmericans added millions of dollars each year.\nHis idea is to pour billions of dollars in government-owned mortgages and\nother financial assets into a pot at the Federal National Mortgage Association\n(Fannie Mae) and sell shares to private banking interests.\nThe miraculous result would be to obtain fresh private funds for government\nagencies to spend without having this spending show up in the budget.\nBut the sand in this well-oiled financial machinery is that it costs more\nto borrow money this way than through sale of government bonds. Net result is\nthat the taxpayer gets hurt.\nEven the Americans for Democratic Action are against this Great Society\nscheme. They say it will result in tighter money because of higher interest\nrates, thus harming farmers and small businessmen. This is one time when the\nADA and I agree.\n# # #\nNEWS\nCONGRESSMAN\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR RELEASE AT 6:30 P.M.\nFRIDAY, MAV 20, 1966\nSPEECH EXCERPTS--BY REP. GERALD R. FORD, R-MICHIGAN\nBlack market activities in Vietnam have mushroomed into such a smelly mess\nthat the State Department has decided to admit they exist.\nThe State Department concedes that the war effort in Vietnam is beset by\nblack marketeering, corruption, speculation and the falling of U.S. economic\naid goods into the hands of the Vietcong.\nOfficials made these concessions when a newsman charged that the Vietcong\nwas getting more of its supplies from the black market and other South Vietnam\nsources than through the famous Ho Chi Minh Trail.\nThe State Department claims that the Vietcong have captured these supplies--\nradio receivers, drugs, food stocks, seeds, and other items--in taking over or\nmaking raids on villages initially under Government control. They add that\ntrucks hauling AID commodities in rural areas have been seized by the Vietcong.\nIn contrast with this explanation, we find Saigon correspondent J. W. Cohn\nof Fairchild News Service reporting that \"the United States is indirectly\nfinancing and supplying the enemy\" in Vietnam.\nIt is American AID dollars, Cohn declares flatly, which make it possible\nfor the black market in Saigon to flourish.\nHe also points to other black market sources: American GI's selling Post\nExchange goods to black marketeers; American trucks \"delivering\" military\nsupplies into \"the wrong hands;\" American stevedoring operations which \"virtually\nencourage pilferage;\" and \"the fact that two-thirds of Vietnam's commercial\nimport dollars come from United States AID funds,\"\nI think this is a disgraceful situation, and the State Department explanation\ndoes not really explain it.\nThe State Department admits the black marketeering, so it seems obvious the\nVietcong raids are not the whole answer to the problem of U.S. goods finding\ntheir way into enemy hands.\n(MORE)\n-2-\nSPEECH EXCERPTS\nWe had plenty of black marketeering during during World War II, as all\nAmericans know. But there is a painful difference between that black market\nactivity and the shady trading now going on in Vietnam.\nThe black marketeering carried on by GI's during World War II merely put\ndollars in their pockets, but the black market activities in Vietnam are\nhelping the enemy fight us. That is nothing short of tragic.\nThe State Department, in effect, dismisses the black marketeering in\nVietnam as being of no great consequence.\nThe Defense Department is charging that the 325 American newsmen in Vietnam\nare the real villains in the black market scandal there.\nMeantime Assistant Secretary of Defense Thomas D. Morris is checking on\nblack marketeering in Post Exchange goods, and a House subcommittee has just\ncompleted a Vietnam black market investigation.\nWhatever these investigations reveal, it is imperative that the Defense\nDepartment and the Agency for International Development act to halt black\nmarket aid to the enemy in a war that seems to have no end.\n* *\nAs if the taxpayer were not already sufficiently afflicted, President\nJohnson has come to Congress with a debt refinancing scheme that will cost\nAmericans added millions of dollars each year.\nHis idea is to pour billions of dollars in government-owned mortgages and\nother financial assets into a pot at the Federal National Mortgage Association\n(Fannie Mae) and sell shares to private banking interests.\nThe miraculous result would be to obtain fresh private funds for government\nagencies to spend without having this spending show up in the budget.\nBut the sand in this well-oiled financial machinery is that it costs more\nto borrow money this way than through sale of government bonds. Net result is\nthat the taxpayer gets hurt.\nEven the Americans for Democratic Action are against this Great Society\nscheme. They say it will result in tighter money because of higher interest\nrates, thus harming farmers and small businessmen. This is one time when the\nADA and I agree.\n# # #"
}