U.S. Spending In Asia Bringing Prosperity

Press, Volume CV, Issue 31028, 6 April 1966, Page 6

U.S. Spending In Asia Bringing Prosperity

(N.Z.P.A.-Reuter) SAIGON. American expenditure to support its troops fighting in South Vietnam and off-duty pleasure-spending by troops are bringing prosperity to many areas near the battle zone.

“Every time we hear ‘bourn boum’ from gunfire, we see ‘boom boom’ in business,” said one South Vietnam newspaper.

The more than 500,000 soldiers stationed throughout South Vietnam—and in particular the 215,000 Americans are providing a ready market for all types of businessmen and opportunists, as shown in this Reuter survey. South Vietnam

Enthusiastic local initiative to meet the needs of the troops is already changing the face of South Vietnam, from the strings of modest laundries and ice-shops clustered around the American bases to the far less modest bars and nightclubs crowding the main street of the towns.

About 550 American business firms are already represented in Saigon, either with their own offices or through local agents. They range from large-scale manufacturers serving the bulk American needs at the official level to small speculative ventures selling cut-price cars to homewardbound G.l.’s or investment stocks to those with money to save.

The biggest commercial American operator in Saigon is the giant construction combine known as R.M.K.-Ray-mond, Morrison and Knudsen —which has about £166 million worth of United States Defence Department contracts to build military installations. The local market is being rapidly boosted by the injection of the American wage packets paid out to more and more Vietnamese. R.M.K. alone employs 25.000 Vietnamese and expects this figure to double by the end of the year.

Hong Kong exports to South Vietnam, and perhaps more significantly, the volume of reexports, are soaring. Both almost doubled last year. A well-stocked shopping place for PX purchasers and civilian suppliers alike, Hong Kong is sending everything from air conditioners to ivory carvings to South Vietnam. Goods for Saigon

On a single day recently, a Pan American jet carried 30 tons of houshold and consumer goods to Saigon. But by far the biggest general spender of war-time prosperity in Hong Kong is the American sailor.

Hong Kong has always been a favourite leave spot, and a ship like the United States Enterprise is estimated to leave behind about £330,000 in local pockets. Formosa

Formosa has established a special promotion agency in a bid to get a share of the American purchases. Three American officers from the United States Army Procurement Agency in Tokyo recently completed a factfinding trip to Formosa to discuss the prospects of making purchases for Marines in Vietnam.

Trade with South Vietnam increased to about £l3 million last year to occupy third place on the foreign trade list. Formosa is enjoying a tourism boom as American naval holiday ships have been calling at the island’s southern port city of Kaohsiung once a week. The Philippine Government

has asked the United States to earmark about £l6 million for procurement of Philippine materials for use in the Vietnam war effort under an American off-shore procurement scheme. The Philippine Foreign Office, in a Note to the American Embassy, has offered such building materials as cement and gravel. The Note said there was no limit to the amount or volume of commodities the Philip-1 pines could export to Viet-j nam. Bangkok Bangkok’s modern amenities, gay spots and tourist! attractions are ideal fori relaxing off-duty soldiers. i The influx of United States troops is filling the coffers of the mushrooming bars and night clubs. At least five hotels in the town are completely taken over by the American military authorities. Singapore United States spending on war materials for Vietnam now top about £330,000 a month, according to informed sources. The biggest items are building materials and prefabricated huts. American buying has helped stimulate sectors of a depressed economic field where businessmen and politicians need trade to survive. Holidaying troops from the Vietnam battlefields are rare, although the Government unofficially would welcome them—provided they came as | tourists.