"PSYWAR CURRENCY'' LEAFLETS

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 02741951
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: March 9, 2023
• Document Release Date: December 14, 2021
• Case Number: F-2019-00574
• Publication Date: October 16, 1972

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S7: ET/SE-=..
16 October 1972
MEMORANDUM FOR: Mr. Thomas H. Karamessines
Deputy Director for Plans
SUBJECT
"Psywar Currency" Leaflets
1. As you are aware, North Vietnam has been loudly
complaining about alleged allied counterfeiting operations.
The attached 6 October comment from the Vietnam National
Bank is a symptomatic illustration of these complaints.
2. What Hanoi is actually complaining about is a
series of three leaflets currently being dropped over North
Vietnam. These leaflets are basically a rerun of a similar
leaflet dropped in the 1966-67 period. Each of the current
leaflets has on one side a Vietnamese text that reads:
"The Party is spending your money on a hopeless
war. As the war goes on there wil:1 be less and
less to buy. The war is ruining your country.
Your savings will be worthless."
And on the other side there is a text that reads:
"Beware of another money reform. You may lose
all your wealth, the fruit of your sweat and
tears."
On one of these leaflets, the text is appended to a facsimile
of a five Dong note; on another a facsimile of a two Dong
note; and on the third :a facsimile of a one Dong note.
3. The proposal that the U.S. Government develop these
leaflets originated within the NSC Staff. JCS-CINCPAC were
tasked with implementing the operation. CIA was aware of all
facets of the development and insertion of the leaflets. but
the Agency was not operationally involved.
ser ion of the leaflets is the task of the 7th Air
and involves the use of drones, C-130s and B-52s.
The in-
Force/SAC,
SEC ET/SE-C,
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4. The leaflets are not counterfeit, nor do they impose
serious attempts to reproduce currency passable as genuine.
A Hanoi press article has admitted that this is the case in
saying that "the U.S. counterfeit bank notes have unsophisti-
cated features any attentive person can detect." .The leaflets
can, however, be trimmed and the facsimile portions thereof
stuck in with a stack of genuine notes in a manner that might
enable the leaflet to be used in transactions if the ultimate
recipient is not too alert. The objective of this leaflet op-
eration is clearly not one of trying to upset North Vietnam's
economy, but one of placing additional stresses and burdens
on the DRV administrative-security services.
5. The Director is fully aware of this activity, which
was specifically endorsed by the NSC which has repeatedly
urged on the implementation of the project. The Director does
not consider this a "counterfeit operation" within the ambit
of his responsibilities, nor do we.
6. For your information, I have attached one specimen
sample of each of the three leaflets being used together with
one exemplar of a bonafide note for each demonstration in
question. Would you please pass these attachments along to
Mr. Nelson after you have examined them. I would appreciate
it if he would then pass them along to Mr. Gottlieb. Unfortu-
nately, we have only one exemplar for each leaflet, hence, I
cannot send a sample package simultaneously to this memoran-
dum's three recipients.
George A. Carver, Jr.
Special Assistant for Vietnamese Affairs
cc: C/FE
C/TSD
for file
1 - VAS Chrono
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I 01.1111.1.L.L.I. V a.,
(b)(1)
(b)(3)
BANK CHARGES U.S. COUNTERFEITING DRV CURRENCY
HANOI VNA INTERNATIONAL SERVICE IN ENGLISH
(Text) Hanoi VNA October 6 -- The Vietnam National Bank, in a
statement issued here today, condemned the Nixon administration for
counterfeiting banknotes and smuggling them into the DRV.
The statement said: "Since early April, the Nixon administration
has made frenzied extermination air raids againsi many cities, provincial
capitals and population centres, and against dykes, hydraulic works,
schools and hospitals in the DRV. Recently, it has committed another
crime, very dirty and despicable, against the Vietnamese people by
smuggling counterfeit money into the DRV.
"The making and smuggling of counterfeit currency by the Nixon
administration is a wicked and cowardly act designed to upset the finan-
cial and monetary system and the economic life of the DRV, and also to
boost the psywar against the Vietnamese people.
"To avoid condemnation by progressive governments and people in
the world, and to conceal its sinister design, the Nixon administration
had defamatory statements printed in the margin of each counterfeit
banknote. Perfidious as it is, the Nixon administration cannot cover up
its contemptible crime in counterfeiting money and smuggling it into the
DRV, which constitutes a gross encroachment on the sovereignty of the
DRV, a cynical violation of international law, and shows its sinister
inclination for crimes in pursuit of its objective to occupy Vietnam and
enslave the Vietnamese people."
The statement went on to say that the people have timely seized
the counterfeit money and handed them over to the authorities.
(b)(1)
(b)(3)
It declared: "The Vietnam National Bank energetically denounces
and sternly condemns the Nixon administration for this criminal act, and
calls on international organizations, economists and lawyers, and all other
people in the world who have peace, freedom and justice at heart, to severely
condemn and resolutely demand the Nixon administration to stop this
criminal act at once."
SECRET/SENSITIVE
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