411 



terms of reference of his projected mission. It would be nongovern- 

 mental because, as Prime Minister Nguyen Ky had told him, the long- 

 term development of his country "would not be possible unless this 

 group of planners and developers were not to be interrupted from 

 time to time by possible changes in the government." The study would 

 be carried on over a three-year period, with projected funding of $1.5 

 million. He would have a partner in the study, Professor Nguyen Dang 

 Thuc, heading a nongovernmental group of Vietnamese. Asked what 

 the priority elements of the study would be, Mr. Lilienthal said that 

 there were some "fantastically productive resources of that country 

 that could change the whole complexion." 



One of them is the Delta, so-called, the Delta of the Mekong River. That may 

 well be the first, to look at the long-term future of that area which is producing 

 enormous amounts of rice. . . . 



This river has water resources that are almost unmanageable. I thought I 

 knew rivers, but I have never seen a river with such fertile land stretching 

 out as far as the eye can see. 96 



At a second White House news conference, almost a year later, 

 Lilienthal explained that circumstances had changed the terms of 

 reference of his mission : 



At the time we undertook this [job], it was thought of as a postwar economic 

 long-range development program ; namely, that this would begin after hostilities 

 had ceased. This soon turned out to be unrealistic, this postwar emphasis. 



The war itself, being informal with territories undefined and sover- 

 eign authorities not well established, seemed to promise no definite 

 termination point. Moreover, "It also became clear that it would be 

 nothing less than a disaster if economic development by the Viet- 

 namese were to await a conclusion of the war — disaster because infla- 

 tion would take over, disaster because the needs of the country are 

 great and the opportunities are great." 



His outlook was optimistic, full of praise for the initiative of the 

 Vietnamese people, and hopeful for the spread of small, local industry. 



Small-scale industry depends upon people, first of all, who have some entre- 

 preneurial sense. These people have it. You don't have to teach profit motive 

 to these peasants ; they invented it. They are very adept at machinery ; prac- 

 tically anywhere you go, there is a fellow who sets up a business to take a Honda 

 apart and put it together. If he doesn't have the part, he will take an old Bud- 

 weiser beer can and cut out the part. I have never seen people as adaptable. 



The test of success, Lilienthal concluded, was whether the new gov- 

 ernment of South Vietnam would sustain its interest in economic devel- 

 opment, or whether it would be consumed by political questions or 

 quarrels. "The way to tell about that," he said, "is when the first bill 

 for the Mekong Delta Authority, which is one of the things we want, 

 is introduced into the Legislature . . ." 66 



A Rand Corporation analysis 67 of the Thuc-Lilienthal mission 

 report 68 called attention to the difficulty encountered by the report's 



66 "Economic Situation in Viet-Nam," Department of State Bulletin (March 20, 1967), 

 pp. 467-471. 



88 "Mr. Lilienthal Discusses Viet-Nam's Economic Development Program," Department of 

 State Bulletin ' December 25, 1967), pp. 864-867. 



87 Albert P. Williams, Jr., "South Vietnam's Develonment Prospects in a Postwar Era : 

 A Review of the Thuc-Lilienthal Report," report No. P-4563 (Santa Monica, Calif. : Rand 

 Corporation, January 1971). 



68 Joint Development Group, "The Postwar Development of the Republic of Vietnam : 

 Policies and Programs," 3 vols. (Saigon, New York : Postwar Planning Group, Development 

 and Resources Corporation, 1969). The report was transmitted to Nguyen Van Thieu, 

 President. Republic of Vietnam, from Vu Quoc Thuc, Chairman, Postwar Planning Group, 

 and David E. Lilienthal, Chairman, Development and Resources Corporation, March 1969. 



