BUNKER, THANH AND OFFICIALS TAKE THEIR SEATS; THANH SIGNS DOCUMENT; BUNKER SIGNS DOCUMENT; BOTH SHAKE HANDS.




Initials JDR/VS/CT/SGM



Script is copyright Reuters Limited. All rights reserved

Background: THE US AMBASSADOR TO SOUTH VIETNAM, MR ELLSWORTH BUNKER AND THE SOUTH VIETNAMESE FOREIGN MINISTER TRAN CHANH THANH, LAST FRIDAY (27 JUNE) SIGNED AN AGREEMENT AIMED AT ABOLISHING TENANT FARMING IN SOUTH VIETNAM. UNDER THE SCHEME, COSTING $400 MILLIONS (GBP160 MILLIONS STERLING), MORE THAN 800,000 FARMERS WOULD RECEIVE THE TITLES TO THE RICE-LANDS THEY NOW TILL.

THE LAND WILL BE EXPROPRIATED FROM LANDLORDS WHO WILL BE COMPENSATED WITH MONEY AND BONDS. IT IS ESTIMATED THAT 1.3 MILLION HECTARES (3.2 MILLION ACRES) WILL BE INVOLVED IN THE TRANSFER.

THE AGREEMENT SIGNED ON FRIDAY CONCERNING AN INITIAL SUM OF $10 MILLION (GBP4 MILLION STERLING) WHICH IS TO BE USED TO PURCHASE US COMMODITY IMPORTS TO COUNTERACT THE INFLATION CAUSED BY THE BIG PAYMENTS TO THE LAND-OWNERS.

THE COMPENSATION WILL BE GIVEN AS 20% IN CASH AND THE BALANCE IN BONDS REDEEMABLE OVER 8 YEARS.

PRESIDENT NGUYEN VAN THIEU DESCRIBES THE PROGRAMME AS "ONE OF HIS GOVERNMENT'S SHARPEST WEAPONS AGAINST COMMUNISM". IT WAS HAMMERED OUT AT THE MEETING EARLIER THIS MONTH WITH PRESIDENT NIXON AT MIDWAY ISLAND.

IN A COUNTRY-WIDE PUBLICITY CAMPAIGN, THE SCHEME HAS BEEN CALLED "THE LAND-TO-THE-TILLER PROGRAMME."