ECONOMIC AND MILITARY RECONSTRUCTION IN NORTH VIETNAM DURING AUGUST 1969

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00205R000100190024-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: April 1, 2004
• Sequence Number: 24
• Publication Date: September 9, 1969
• Content Type: PERRPT

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9 September 1969
Project No. 51.5567
Economic and Military Reconstruction in North Vietnam
During August 1969
Introduction
The reconstruction of military and economic facilities in
North Vietnam is of continuing importance because of the implications
for support of the war and conduct of negotiations for peace. Economic
conditions become an increasingly important factor influencing regime
policies as the war drags on, as output in all sectors continues to
stagnate or decline, and as living conditions show little improvement.
This monthly report summarizes significant reconstruction developments
to highlight those factors that might be relevant to an analysis of
the North Vietnamese bargaining position.
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Military Activities
Air Defense
1. North Vietnam continues to upgrade its electronic capability
against low-flying aircraft.
the first time the deployment of a modified Fan Song radar south of
the l9th Parallel. The modification, which had previously been
noted only in the Hanoi and Haiphong areas, has now apparently been
deployed to all SAM-defended areas of North Vietnam. The function
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electronic countermeasures. It is estimated that at least 20 of the
35 to 40 SAM battalions currently in North Vietnam are equipped with
the modified Fan Song radar.
2. Two types of Soviet electronic passive-intercept devices
were observed in North Vietnam for the first time
relieved to be capable of locating
aircraft on the basis of signals transmitted by the aircraft. Located
in Haiphong and south of Hanoi, these devices will enhance North
Vietnam's capability to acquire and track low altitude targets and
will aid intercepts by aircraft and SAM's.
Airfields
3? indicates the North Vietnamese have
initiated construction of an airfield near Route 7, about 48 miles
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northwest of_Vinh and only 18 miles from the Laotian border. The
size of the runway suggests that the new field will be used as a jet
fighter base, possibly for air operations over the strategic Plaine
des Jarres region. It might also be used as a dispersal area for
aircraft from Bai Thuong and the present Vinh airfield, the main
runway of which was fully serviceable by 10 August although support
facilities are not yet restored.
Economic Activities
Industry
1.. Restoration of damaged industrial facilities continues at
a slow and deliberate pace. During August a third kiln was placed
in operation at the Haiphong Cement Plant, and work on an adjacent
kiln appeared to be nearing completion. The addition of a third
operating kiln increases North Vietnam's annual capacity for producing
cement by nearly 100,000 tons to about 300,000 tons.
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5. Repairs to other industrial facilities were restricted primarily
to electric power facilities. At the Nam Dinh and Ben Thuy powerplants,
it is likely that neither plant is yet capable of sustained operation.
In addition to work at the Nam Dinh powerplant, a new substation has
been built at the site of the damaged Nam Dinh Transformer Substation.
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far flood conditions have not been as severe as last year, but the
possibility of more storms during September, the month of peak
.storm activity, poses a serious threat.
transportation and possibly damaged the tenth month rice crop.
Power lines from both the national power distribution. network and
the Nam Dinh powerplant are tied into the facility. At the large
Thac Ba hydroelectric powerplant high water levels on the Chay River
have forced a temporary halt on construction. A portion of the
coffer dam had been washed away and little activity was observed.
Weather Conditions
6. Heavy rains resulting from the Southwest Monsoon (from mid-
May to mid-September) and seasonal tropical storms have disrupted
The swollen condition of these rivers has apparently been
caused by extremely high rainfall in August in the northwest part
of the country and in the portions of South China which drain into
river basins in North Vietnam. August rainfall in Lao Cai was 10
inches above the 15-inch norm for the month. Although rainfall in
Hanoi and Haiphong during August was actually below the monthly
norm, water levels in the rivers which converge on the densely
populated and intensely cultivated delta area rose to dangerous
heights. Elsewhere, tropical storm "Doris" hit the coast of North
Vietnam on 2 September, and preliminary reports indicate flooding
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in the panhandle area from about the 19th parallel southward.
Agriculture
9. There has been little information concerning the extent of
damage to the tenth month rice crop caused by the flooding and heavy
rainfall but damage so far apparently has been minimal. There have
been conflicting reports on whether the rice crop was transplanted
on time this year. Even if it had been, however, continued heavy
rains in September could wash out ricefields necessitating replanting
-------and-causing a possible reduction in yields and in planted acreage.
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12. Despite poor weather conditions, ship congestion at Haiphong
eased slightly in August, probably due to the relatively low level
of arrivals during the past three months. Although average layover
times for dry cargo ships departing from Haiphong increased by one
day to 22 days in August, the average number of dry cargo ships in
Haiphong per day fell by one to 17 and the daily count ended the
month at 13-
13- North Vietnam continued probing for economic assistance
from both Communist and Free World countries. An aid delegation
headed by Vice Premier Le Thanh Nghi arrived in Communist China in
mid-August to discuss economic and military aid for 1970. Rail
transit of Soviet military and related goods through China probably
was on the agenda as well as the reconstruction of major bomb-damaged
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Chinese aid projects which have so far received only minor repairs.
No agreement had been signed by the end of August and the delegation
was apparently still in China. Other delegations consisting primarily
of trade and industrial experts departed Hanoi for Moscow, Bucharest,
--and Warsaw to discuss specific aid projects and problems.
14+. During the last half of August publicity was released on
an early September visit to Sweden, Denmark, Norway, and Finland by
a North Vietnamese delegation of. trade and industrial experts. In
contrast with the delegation that visited Sweden last May, this
group contains a wide representation of Hanoi's planning, industry,
and transportation experts, suggesting that discussions on economic
reconstruction are intended rather than mere propagandizing. The
announced purpose of the visit was to acquire information on the
types of postwar assistance the Scandinavian countries could offer
North Vietnam under the Nordic Plan. The amount of assistance to
be given to North Vietnam has apparently not yet been decided. While
sums ranging up to $3 billion have been mentioned in Swedish newspapers,
the more reasonable amount of $20 million has been discussed in the
Swedish parliament. Sweden has been the moving force behind the Nordic
Plan and it is expected that the Swedish contribution will make up
the bulk of the aid forthcoming. Sweden extended to Hanoi early in
1969 a grant of almost $2 million for humanitarian aid, but no
drawings on this extension are known to have been made. Private groups
in the Nordic countries have regularly donated money and relief goods
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to North Vietnam since the start of the US bombing in 1965.
Conclusions
15. North Vietnam continued to improve its air defense cap-
ability by deploying additional modified Fan Song radars and new
electronic equipment that appears to be designed to improve
capabilities for tracking low-altitude aircraft. A new airfield
under construction northwest of Vinh, near the Laos border, was just
observed
16. Little improvement was noted in the economy. Industrial
reconstruction during August proceeded slowly, the only notable
progress being made at the Haiphong Cement Plant.
Repair activity at the large
Thac Ba hydroelectric powerplant has been hampered by heavy rains
and severe tropical storms which are likely to continue during
-September. .High water levels, if they continue, may cause some damage
to the tenth month rice crop.
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Discussions concerning 1970 economic and military aid apparently were
begun in Communist China by a delegation led by Le Thanh Nghi. Pre-
liminary talks were also being held in the USSR and Europe by lesser
North Vietnamese trade representatives.
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