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ACTION NEA-10
INFO OCT-01 EA-07 ISO-00 CIAE-00 DODE-00 PM-04 H-02 INR-07
L-03 NSAE-00 NSC-05 PA-01 PRS-01 SP-02 SS-15 USIA-06
OMB-01 AID-05 /070 W
--------------------- 130611
P R 160515Z APR 76
FM AMCONSUL CALCUTTA
TO SECSTATE WASHDC PRIORITY 5312
INFO AMEMBASSY NEW DELHI
AMEMBASSY BANGKOK
AMCONSUL HONG KONG
C O N F I D E N T I A L CALCUTTA 0936
E.O. 11652: GDS
TAGS: PFOR, PINT, CGEN, SREF, VN, IN
SUBJ: SITUATION IN SAIGON
1. THE FOLLOWING REPORT ON CURRENT SITUATION IN SAIGON WAS
GIVEN TO CONOFF BY VIETNAMESE NATIONAL WHO DEPARTED SAIGON
APRIL 13TH. WE HAVE NO RPT NO MEANS OF EVALUATING THE SOURCE'S
RELIABILITY BUT PASS THIS ON FOR WHAT IT IS WORTH. SOURCE
WAS FORMERLY EMPLOYED BY CHINESE COMMERCIAL BANK IN SAIGON.
2. THE SITUATION REMAINS TENSE AMONG THE SAIGONESE BECAUSE
OF THE UNCERTAINTY REGARDING THE GOVERNMENT'S FUTURE ACTIONS,
THE LACK OF EMPLOYMENT, RISING PRICES AND THE SCARCITY OF
BASIC COMMODITIES. RICE WHICH WAS FORMERLY RATIONED AT
15 KGS, PER PERSON/PER MONTH SHORTLY AFTER THE FALL OF
SAIGON, LATER REDUCED TO 9 KGS. PER PERSON/PER MONTH HAS
BEEN FURTHER REDUCED TO 5 KGS PER PERSON/PER MONTH AND THE
RUMOR IS THAT RICE MIGHT NOT BE AVAILABLE IN SAIGON IN
THE MONTH OF MAY. MEAT IS RATIONED AT 1 KG. PER FAMILY
BUT IT IS EXPENSIVE, OFTEN NOT RPT NOT AVAILABLE EVEN
AFTER WAITING ON QUEUES FOR HOURS. VEGETABLES AND FRUITS
ARE AVAILABLE BUT ALSO EXPENSIVE. MEDICINE, ESPECIALLY
ANTIBIOTICS, MUST BE BOUGHT ON THE BLACKMARKET, WHICH IS
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BOTH DANGEROUS AND PROHIBITIVE IN PRICE.
3. ADDING TO THE FEELING OF INSECURITY ARE REPORTS THAT
IMMEDIATELY AFTER THE ELECTION WHICH WILL MERGE THE GOVERN-
MENTS OF NORTH AND SOUTH VIET NAM, SCHEDULED TO BE HELD,
ACCORDING TO SOURCE, BEFORE THE END OF APRIL, THE "EXCESS
POPULATION" IN SAIGON WILL BE FORCED TO LEAVE. SOURCE
STATES THAT PSYCHOLOGICAL AND ECONOMIC PRESSURE ARE ALREADY
BEING USED TO MAKE PEOPLE RETURN TO THE VILLAGE BUT THIS
PRESSURE HAS NOT RPT NOT BEEN SUCCESSFUL. THE FEELING OF
DESPAIR IS SO PREVALENT THAT AT THE END OF MARCH A RUMOR
CIRCULATED IN SAIGON THAT FRENCH AND AMERICAN VESSELS WERE
STANDING OFF VUNG TAU FOR THOSE WHO WANTED TO LEAVE AND
THAT THE GOVERNMENT WOULD NOT RPT NOT INTERFERE. MANY
PACKED THEIR LUGGAGE AND LEFT FOR VUNG TAU WHERE THEY
WERE IMMEDIATELY ARRESTED. SOURCE DID NOT RPT NOT GO BECAUSE
HER PAPERS WERE ALREADY IN ORDER AND SHE WAS UNCERTAIN
REGARDING THE STORY.
4. REPORTS OF FIGHTING THROUGHOUT VIET NAM, WITH NO RPT
NO CONFIRMATION CONTINUE TO CIRCULATE IN SAIGON. SOME SUB-
STANCE IS GIVEN TO THESE STORIES BECAUSE OF MINOR INCIDENTS
IN AND AROUND SAIGON AND THE EXPLOSION OF A HAND GRENADE
OR BOMB NEAR THE PRESIDENTIAL PALACE IN SAIGON TOWARDS
THE END OF MARCH. REPORTEDLY THE INCIDENT CAUSED NUMEROUS
CASUALTIES.
5. SOURCE NOTED THAT THE NONRETURN OF ARVN OFFICERS WHO WERE
SENT AWAY FOR REEDUCATION IS CAUSING SERIOUS CONCERN NOT
ONLY TO THE FAMILIES OF THE OFFICERS CONCERNED BUT ALSO TO
OTHERS REGARDING THE FUTURE ACTIONS OF THE GOVERNMENT.
INTELLECTUALS AND SENIOR CIVILIAN MEMBERS OF THE FORMER
GOVERNMENT ARE REQUIRED TO ATTEND INDOCTRINATION CLASSES
ON A DAILY BASIS. OTHER MEMBERS OF THE COMMUNITY ARE ALSO
REQUIRED TO ATTEND CLASSES. IN ADDITION A FORCED LABOR
DRAFT OF MEN BETWEEN THE AGES OF 16 TO 43 EXISTS TO
REPAIR ROADS, RIVERS, BRIDGES, ETC.
6. BUSINESSES PRIMARILY OF CHINESE BUT ALSO VIETNAMESE ARE
BEING CONFISCATED. THOSE WHO ARE WITHOUT EMPLOYMENT SELL
ALL THAT THEY OWN FOR WHATEVER PRICE THEY CAN GET. SOURCE
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SAYS THE BUYERS ARE PRIMARILY NORTH VIETNAMESE SOLDIERS
AND OFFICIALS AND THIS IS CAUSING RESENTMENT. COMMERCIAL
BANKS ARE SCHEDULED TO CLOSE ON APRIL 15TH AND ACCORDING
TO SOURCE, ECONOMIC LIFE IN SAIGON APPEARS TO
BE GOING FROM WORSE TO WORSE.
KORN
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