jump to navigation

Profiting Off Nixon’s Vietnam “Treason” March 4, 2012

Posted by rogerhollander in History, Vietnam, War.
Tags: , , , , , , , , , , , ,
add a comment

Roger’s note: it has been my opinion that in our time things really began to go “off the track” with the Nixon presidency and not with the Bush era, as many argue (of course, in a broader sense the car jumped the rail in 1492).  The Nixons and the Bushes and the Obamas and the military-industrial complex behind them sacrifice lives by the hundreds of thousands, and we honor them as presidents and patriots.  The cynicism behind it all is almost beyond comprehension, not to mention surreal.

 

Robert Parry, www.opednews.com, March 3, 2012

This article cross-posted from Consortium News

President Richard Nixon addresses the nation about his bombing of Cambodia, April 30,

As I pored over documents from what the archivists at Lyndon  Johnson’s presidential library call their “X-File” — chronicling Richard Nixon’s apparent sabotage of Vietnam peace talks in 1968 — I was  surprised by one fact in particular, how Johnson’s White House got wind  of what Johnson later labeled Nixon’s “treason.”

According to the records, Eugene Rostow, Johnson’s Under Secretary of State for Political Affairs, got a tip in late October 1968 from a Wall Street source who said that one of Nixon’s closest financial backers  was describing Nixon’s plan to “block” a peace settlement of the Vietnam War. The backer was sharing this information with his banking  colleagues to help them place their bets on stocks and bonds.

In other words, these investment bankers were colluding over how to  make money with their inside knowledge of Nixon’s scheme to extend the  Vietnam War. Such an image of these “masters of the universe” sitting  around a table plotting financial strategies while a half million  American soldiers were sitting in a war zone was a picture that even the harshest critics of Wall Street might find hard to envision.

Yet, that tip — about Nixon’s Wall Street friends discussing his  apparent tip on the likely course of the Vietnam War — was the first  clear indication that Johnson’s White House had that the sudden  resistance from South Vietnamese President Nguyen van Thieu to Paris  peace talks may have involved a collaboration with Nixon, the Republican candidate for president who feared progress toward peace could cost him the election.

On Oct. 29, Eugene Rostow passed on the information to his brother,  Walt W. Rostow, Johnson’s national security adviser. Eugene Rostow also wrote a memoabout the tip, reporting that he had learned the news from a source in  New York who had gotten it from “a member of the banking community” who  was “very close to Nixon.”

Eugene Rostow’s source said the conversation occurred among a group  of Wall Street bankers who attended a working lunch to assess likely  market trends and to decide where to invest. Nixon’s associate, who is  never identified in the White House documents, told his fellow bankers  that Nixon was obstructing the peace talks. Eugene  Rostow wrote…

“The conversation was in the context of a professional discussion  about the future of the financial markets in the near term. The speaker said he thought the prospects for a bombing  halt or a cease-fire were dim, because Nixon was playing the problem as  he did the Fortas affair — to block. …”They would incite Saigon to be difficult, and Hanoi to wait. Part of his strategy was an expectation that an offensive would break out soon, that we would have to spend a great deal more (and incur more  casualties) — a fact which would adversely affect the stock market and  the bond market. NVN [North Vietnamese] offensive action was a definite  element in their thinking about the future.”

(The reference to Fortas apparently was to the successful  Republican-led filibuster in the Senate to block Johnson’s 1968  nomination of Associate Justice Abe Fortas to replace Earl Warren as  Chief Justice on the U.S. Supreme Court.)

In other words, Nixon’s friends on Wall Street were placing their  financial bets based on the inside dope that Johnson’s peace initiative  was doomed to fail. (In another document, Walt Rostow identified his brother’s source, who disclosed this  strategy session, as Alexander Sachs, who was then on the board of  Lehman Brothers.)

A separate memo  from Eugene Rostow said the unidentified speaker at the lunch had added  that Nixon “was trying to frustrate the President, by inciting Saigon to step up its demands, and by letting Hanoi know that when he [Nixon]  took office ‘he could accept anything and blame it on his predecessor.'”

So, according to the speaker, Nixon was trying to convince both the  South and North Vietnamese that they would get a better deal if they  stalled Johnson’s peace initiative.

In a later memo providing a chronology of the affair, Walt Rostow  said he got the news about the Wall Street lunch from his brother  shortly before attending a morning meeting at which President Johnson  was informed by U.S. Ambassador to South Vietnam Ellsworth Bunker about  “Thieu’s sudden intransigence.”

Walt Rostow said “the diplomatic information previously received plus the information from New York took on new and serious significance,”  leading to an FBI investigation ordered by Johnson that uncovered the  framework of Nixon’s blocking operation. [To read that Rostow memo,  click here, here and here.]

The Rostow memos are contained in a file with scores of secret and  top secret documents tracing Nixon’s Vietnam peace-talk gambit as  Johnson tried frantically to stop Nixon’s blocking operation and still  reach a peace agreement in the waning days of his presidency.

After Nixon narrowly prevailed in the 1968 election and as Johnson  was leaving the White House without a peace agreement in hand, the  outgoing President instructed Walt Rostow to take the file with him.  Rostow kept the documents in what he called “The ‘X’ Envelope,” although the archivists at the LBJ Library in Austin, Texas, have dubbed it the  “X-File” after the once popular TV series.

Rostow’s “‘X’ Envelope” was not opened until 1994, which began a  process of declassifying the contents, some of which remain secret to  this day.

After Johnson’s peace initiative failed, the Vietnam War dragged on  another four years, leading to the deaths of an additional 20,763 U.S.  soldiers, with 111,230 wounded. An estimated one million more Vietnamese also died.

[For a much detailed examination of what Johnson called this "sordid story," see Consortiumnews.com's "LBJ's "X' File on Nixon's "Treason.'"]

 Robert Parry broke many of the Iran-Contra stories in the 1980s for the Associated Press and Newsweek. His latest book, Secrecy & Privilege: Rise of the Bush Dynasty from Watergate to Iraq, can be ordered at more…)
Follow

Get every new post delivered to your Inbox.

Join 209 other followers