The Foreign Service Journal, June 2016

36 JUNE 2016 | THE FOREIGN SERVICE JOURNAL pocketing the pay of “ghost soldiers,” whose names were carried on the duty roster but were either nonexistent or who paid their commanders to be released from duty. As one commander put it, the pervasive corruption “created a sense of social injustice” by creating “a small elite which held all the power and wealth, and a majority of middle-class people and peasants who became poorer and poorer and who suffered all the sacrifices.” Evolution of a “Fundamental Ill” This summary would have surprised few Americans who served in Indochina or dealt with the war at the policy level. Throughout the 21 years of decisive American engagement with South Vietnam, from the time of Ngo Dinh Diem until the fall of Saigon, corruption was invariably and routinely identified as a pervasive issue in the country, one with corrosive effects in every aspect of the state and society. In September 1954, during the first days of America’s involvement, a Special National Intelligence Estimate opened with an offhand reference to Premier Diem’s struggles with “the usual problems of inefficiency, disunity and corruption in Vietnamese politics.” Two decades later, just weeks before the North Vietnamese attack that would overwhelm South Vietnam, Senator Dewey Bartlett (R-Okla.), returning from a fact-finding mission, reported to President Gerald Ford in March 1975: “Corruption should be ferreted out, there should be freedom of the press and proper use of the courts and police. This will help them to develop their resolve and will strengthen their capability to develop in peace.” Along with its deadly effects within South Vietnam, the readily visible corruption provided an easy and unanswerable point of attack for opponents of the war in the United States, and a ready justification for Congress’s reluctance to support this American ally. Why, then, did this phenomenon persist, and even grow pro- gressively more egregious over time? The basic conditions were set at South Vietnam’s birth in 1954, when the country emerged suddenly from its colonial past. With very few competent civil servants, with no functioning political system or tradition of democracy or transparency in government and with deep divides across religious, regional, ethnic and class lines, the new government built a military establishment from scratch. Few expected the state to last more than a couple of years. With the advent of active insurgency, the government of the Republic of Vietnam faced a deadly and immediate challenge that absorbed all of its attention. The massive intervention of American forces that followed within a decade added to the challenge in fundamental ways by infusing vast amounts of money and resources into South Vietnam and conducting military operations that created mas- sive turmoil and dislocation across the country. As the nation moved from crisis to crisis, hampered by a sclerotic and limited government bureaucracy, corruption was always an issue to address later. At the same time, as U.S. involvement grew during the mid-1960s, American advisers were brought in who considered action against the corruption that had grown with the American investment in the nation to be an integral element of the war for “hearts and minds,” and therefore an essential component of pacification and a high priority for action. There were, however, serious obstacles to taking decisive action, reflecting the basic nature of the U.S. relationship with South Vietnam. Anti-Corruption Efforts Stymied The most vigorous and sustained attempt by the United States to effect change in this area occurred in late 1967, as “Blowtorch” Bob Komer established the Civil Operations and Revolutionary Development Support program, known as CORDS. Recognizing President Nguyen Van Thieu’s long-stand- ing caution in attacking corruption, Komer sought leverage that the Americans could use to encourage a more aggressive approach to the problem. Embassy Saigon’s Minister-Counselor for Political Affairs John A. Calhoun noted a fundamental problem with Komer’s approach: it “entails an invasion of the sovereignty of the Republic of Viet-Nam so great that it could and would be argued thereafter that the United States is indeed the neo-colonialist Corruption in South Vietnam was invariably and routinely identified as a pervasive issue in the country, one with corrosive effects in every aspect of the state and society.

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