Survey of the Agency for International Development's Management and Operation of the Commercial Import Program for Vietnam
Highlights
GAO reviewed the administration of the commercial import program for Viet Nam by the Agency for International Development (AID). Under the commercial import program, the United States finances the dollar costs of commodities procured abroad by Vietnamese importers. The principal purpose of the program is to combat inflation in Viet Nam by financing purchases of imports to be sold commercially in Viet Nam and thereby absorb excess currency. During calendar years 1968 and 1966, the money supply increased 77 percent and 37 percent, respectively, principally because of increased budgetary deficits by the Government of Viet Nam and large expenditures by United States elements. During these same periods, living costs rose 40 percent and 68 percent, respectively. In the first 5 months of 1967, living costs rose another 13 percent. The program also helps to meet Viet Nam's foreign exchange needs and provides, through the sale of the imported commodities, budget assistance for the Government of Viet Nam.