ECONOMIC
Damage inflicted on the Northby air strikes increasedand will have unfavorablemuch of the industrial sector. telling damage resulted from the strikes
electric power plants.
Despite the increased disruption of economic activity, the North Vietnamese gave noof abandoning their programs to expand small scale industry and to plan for post-war economic development.
On-The-Spot Reports
The bombardment continues to diminish daily, the industrial potential of the country.
If industry is subjected to new blows, one certain consequence will be that Hanoi will become more dependent on the Chinese, on whom they are already dependent for their food supply.
The main cement plant has been so severely damaged that work has halted.
The supply ol elffttrlcity (in Haiphong) appeared to be just adequate.
Betweennd Thanh Hoa, an area in which he spent ten days, the traveler saw electric lights on two occasions only. He saw no piped functioning water supply in any town or village area. The main streets of Thanh Hoa had been almost entirely destroyed. Shops open were welling little more than oil, cloth, and occasionally cigarettes.
Tho incessant bombing by American aviation has paralyzed the economy of North Vietnam and has closed offh parallel, thus, preventing the passage of troops in number toward the south.
U. S. bombings have caused considerable damage to military installation! factories, and several bridges, both in Hanoi and in the countryside of Northusiness in Haiphong and Hanoi is practicallyirm* are manned byirector and one or two assistants. Most of the factories, military aa well as light industry, have been evacuated tpothe countryside.
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