Arizona Republic from Phoenix, Arizona on August 15, 1970 · Page 32
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August 15, 1970

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Arizona Republic from Phoenix, Arizona · Page 32

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Phoenix, Arizona
Issue Date:
Saturday, August 15, 1970
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Page 32
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Page 32 article text (OCR)

I I Cambodian economy under severe strain, may break without support B« T WlrCI TOtf t TlUMl «.».._._ * * ALL EDITIONS By T. JEFF WILLIAMS Associated Press PHNOM PENH, Cambodia - The Cambodian economy, wrested from its pillars of stability by the onslaught of war, is under immense strain. U.S. experts say it likely will break by early next year unless massive support is provided. A report prepared by Charles Mann, director of the U.S. Agency for International Development in neighboring Laos, estimates $230 million in outside support is essential to keep the Cambodian economy functioning through 1971. Informed sources in Phnom Penh say the United States is not prepared to pay this. Diplomatic entreaties are being made to numerous other countries in hopes of forming an international consortium to aid Cambodia. Talks are under way between Cambodia and Japan, which is offering a $20-million grant plus a $4fr-million loan. The financial turmoil that settled on this country of seven million results from the Indochina war, which spread here after Prince Norodom Sihanouk was ousted in March. The Cambodian army, then only 36,000 strong, has since soared to nearly 200,000. The budget for 1970, prepared before the March 18 coup, outlined a balanced budget of S.6 billion riels, $170 million, with the military needs taking one-third. The budget is now estimated at more than twice that figure, with military costs alone swallowing more than total original budget. Meanwhile, government earnings have fallen by half. Taxes and customs duties, which provided the bulk of budget earnings, will this year reach only 4 billion riels, half of normal. That is the estimate of Hoer Lay In, head of the National Assembly's economic and finance commission. Where will the government of Premier Lon Nol get the currency to cover this vastly increased budget? The United States, through its embassy representatives, is quietly recommending injections of more riels into the market and accepting 20 to 30 per cent inflation. The Cambodian government is resisting this. Steeped in conservative French banking practices, it wants either hard currency to cover the inflation or a supply of goods that it can sell to raise the riels. Both propositions have been discussed in Mann's report to the N State Department but without recommendations, informed sources said Thursday. CHIC MYERS ALWAYS HAS THE BEST BUYS •LACK AND WHITI TV COLOfeTV EXCEPTIONAL QUALITY - FAIR PRICE! Sony Sunset tile TV The Sony TV-720U ia called the Sun Set. Because its black screen gives the same sharp picture outdoors that it does indoors. Even when the glare is strong. And since it weighs a little over 9 IDS., you can take it anywhere- WGdl.il, UUfll, 720-U7"Black 109" ACorDC-RECH. uouaoir or oacK 920-U8"DIAG. •119" AC or BATTERY ara. MO-U17"D. *129 M AC or BATTERY BEAVTIFVLCOLOR on NO OTHER TV LIKE IT! To make better color TV, Sony developed a better system; {Sony's system has one big color gun that shoots all the*colors. And there's a lens more than twice as big as everyone else's. With a large lens, you get a sharper, brighter pic-*" ,ture. Vivid colors aren't washed out in bright room lighting I There are many unique features too: automatic color control; integrated.contrast-color control; pictures stay crisp* and brilliant at all points on the screen; all solid state cir> cgitry for greater reliability and contemporary wooden cab-* Jinet styling. , Turn on this 12" diagonal set and watch the Trinitrorfsys Item bring greater color fidelity into view. Come in and -,!«*«. _ SONY, mm KVUM KV1111 iir mm CHIC MYERS "NWfftr TlklVIIIW* :BBT • MUfft MMU1 ITMft Park Control, 109 WtM Mail .... 3M43Q4 15141. Vanlwr*nc> )6»h$(r««> . 393.9931 10$ 1 f. Ccmtlbeck«M Ilk Strttl 277-6111 3414 N. $c0ttidol« Rd. «t Oak ... 949-3679) So far the Cambodian economy has been coasting on export earnings the first half of the year plus $75 million in foreign reserve holdings. In the first five months of 1970 Cambodia managed to export 100,000 tons of rice. Exports now are less than 10,000 tons a month and the government is counting on no more than 170,000 tons in exports for the whole year. With the Vietcong disrupting planting over wide areas, experts doubt that Cambodia will manage to export 100,000 tons next year. Plans to export 50,000 tons of rubber have collapsed. At the end of May only 16,000 tons had been cleared and now less than 1,000 tons a month are going out. The shipments soon will come to a complete standstill, economists predict. the rubber belt in central Cambodia is a front line of fighting. Most of the five main rubber plantations are in a no man's land at best and under Vietcong control at worst. Prices are climbing, but inflation here may not be so severe as in South Vietnam. Factors affecting this are the lack of US. troops to flood the economy with dollar*, the conservatism of Cambodians, and the fact that traders and businessmen who previously handled most of the currency are no longer spending. But the crunch is coming and Cambodia is still wondering where its support will come from. Canadian students get free courses OTTAWA (UPI) - Canadian university students without summer jobs can apply for special six - week crash courses in English and French at the expense of the federal government. The government and universities have agreed to pro- .vide free tuition, book*, board and lodging for a total of 1,000 students interested in learning one of the other official languages. The Arizona Republic l? Phoeaix, Sat., A«g. 15,1971 SHAGS $595 t 5 + „«. COMPLETELY INSTALLED PATTERNS me*.*!* E ACTION JgOfli COVHHN6 ¥-¥•¥¥-¥¥¥¥¥¥¥¥¥¥¥¥¥<

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