Senator JAVITS. Is that all 12 bridges?

Mr. WALSH. All 12 bridges have been delivered. I don't think they have attempted to assemble all 12.

Senator JAVITS. So there is something like how much involved?

Mr. WALSH. The 12 bridges in total amounted to $900,000.

Senator RIBICOFF. Are these bridges now somewhere in Vietnam being eroded by rust?

Mr. WALSH. They are over there. They are coated with paint. I don't know whether they are rusting.

Senator RIBICOFF. When were the bridges delivered?

Mr. WALSH. In the latter part of 1966.

Senator RIBICOFF. So they are there, not being used, and have not been put in place?

Mr. WALSH. No, sir.

Senator RIBICOFF. Is that correct?

TESTIMONY OF WILLIAM O. HALL-Resumed

Mr. HALL. There is a problem on assembly. The Hunt people are there working with the Vietnamese. There is only one bridge where an effort has been made to assemble it. There is apparently a problem. We are not sure what the problem is, whether it is a problem of markings or what. The things don't fit at the moment. Until the inspectors come back, we won't know what the problem is. They are fairly confident they can get them together.

Senator RIBICOFF. Who is confident, the Vietnamese people or Globe? Mr. HALL. Globe and the Hunt people. They think it is a problem that the Vietnamese trying to put them together don't know how to do it. That is the last report I have on it.

TESTIMONY OF JOHN J. WALSH-Resumed

Mr. WALSH. We cannot determine at the present whether they do not fit because of improper fabrication or whether there is a lack of competence to assemble the bridges in the field.

Senator, I would like to discuss at this time the information concerning the events which took place before the actual award.

I have 10 documents, which relate to these events. I would like to present them in bulk as exhibits in order to save time.

I would like to relate briefly what they concern and touch on several others which we would like to have printed as part of the record. Senator RIBICOFF. Without objection, the documents that Mr. Walsh has will be submitted for the record. That will be exhibit No. 25.

(Documents referred to were marked "Exhibit Nos. 25A through 25J" for reference and may be found in the files of the subcommittee.) Senator MUNDT. What is the source of the documents?

Mr. WALSH. The documents were obtained from two sources. The first source was a subpena served by Mr. Duffy, of the subcommittee staff, on Globe to produce the records of Globe relating to the bridge

contract.

The second was a subcommittee staff member who obtained documents in Saigon from AID files and other sources there. These are the sources of these documents.

As I stated, on May 10, 1967, the correspondence of Globe with Thao was obtained under subpena. These records showed that in July 1964

Thao wrote Globe to find out if Globe was interested in bidding on the Vietnam bridges.

Globe was interested, and on August 14, 1964, Thao started a series of letters to Globe wherein he furnished copies of the specifications being drafted, copies of drawings and sketches for the new bridges and revisions to the drawings, sketches, and specifications.

He told Globe that the estimated weight of the bridges was 1,700 tons; that the estimated cost was about $690,000 in U.S. currency. He cautioned Globe not to reveal to anyone that they had this information before it was published officially.

He told Globe that he could guarantee Globe would get the contract, even though its bid was higher than the opposition. His letters indicated that he expected a commission of 5 percent and he was splitting this commission with officials in Saigon and this was why he could assure acceptance of the Globe bid.

(At this point Senator Javits withdrew from the hearing room.) Mr. WALSH. We have a number of letters which relate to the transmittal of documents, first from the Vietnamese Railway to the U.S. AID Operation Mission in Saigon. Subsequently, it appears that these documents were later transmitted by Thao to Globe.

A letter that I would like to mention is a letter dated August 14, 1964, which is a letter from Thao to Globe transmitting a copy of the draft specification. This is a letter that gives the estimated weight and price, and mentions the 5 percent commission.

Thao states:

As we are able to insure our customers agreement to honor your offer, you are kindly requested to do your utmost to participate in the bid.

Senator RIBICOFF. May I ask, were these specifications or offers to bid widespread? Or were they just transmitted to Globe and U.S. Steel?

Mr. WALSH. At this point they had not been officially transmitted to anyone. Globe was receiving these in advance of the official transmittal. As I understand it, when the official invitation for bid was published, this was an advertised bid, and any company who expressed interest could get copies.

Senator RIBICOFF. Do you know how many companies expressed interest?

Mr. WALSH. Four that I know of. It is possible that there may have been more.

Mr. ADLERMAN. The invitation for bid was published on December 1, 1964 ?

Mr. WALSH. Yes. The time frame we are talking of here is August, which is before there was an agreed upon specification.

Mr. ADLERMAN. August 1964?

Mr. WALSH. That is right. The project is still in the planning stage. By letter dated August 20, 1964, Thao again wrote to Globe saying he was in constant touch with the engineers involved in the design of the bridges, and he tells Globe if Globe decides not to bid, to return the documents without letting anyone else know about them. We would like to have these letters printed.

Mr. ADLERMAN. That will be the letters of August 14 and 20, 1964? Mr. WALSH. Yes.

Senator RIBICOFF. Without objection, it is so ordered. (The letter referred to follows:)

We are transmitting you herewith the specifications of a bid to be organised by our Government for the supply of bridge spans, according to the attached technical data.

will be airmailed to you afterwards, on your request by cable.

A bid bend (5%) and a performance bond (10%) will be required. We suggest that we will be responsible for the bid bend while you will occupy with the performance bond. With the credit of your firm, it is very easy for you for obtaining the guaranty of :

THE AETNA CASUALTY AND SURELY CO

or a similar bank for performance bond.

Furthermore, the bidders must appoint a local

representative for the contract to be signed.

We would thank you to offer your most competitive PAS port of exit, our 5% commission included and Cand? Saigon.

Delivery term at Saigon to be indicated

period of 60 days for shipping from America).

Drawing, calculations, plans, etc...

to be airmailed to us for deposit at the last moment with bind bond as any bid submitted without being accompanied by bid bond will be rejected.

Prices to be valid for the delivery.

OCEAN FREIGHT.- Any further reclamation will not be examined,
please pay your attention to this matter as the contract will be
written on the basis of delivery Candy Saigon.

SOURCE PROVISION.- Only the suppliers in USA can participate
the bid but attention, competition is very keen in the field.

Please understand that a bid is involved and that you are facing to a very keen competition.

PRICE. Please submit us FAS and Cand price including the extra shipment and forwarding fees for arriving at an exact Cand? Saigon price, as any further amendment in price is not possible.

in USA.

Payment by confirmed and irrevocable letter of eredit,

We would thank you to immediately intimate us, per cable your willingness to take part in the bid in order to help us supply you further information.

As we are able to ensure our customers'agreement to honour your offer, you are kindly requested to do your utmost to participate in the bid.

We are at your disposal for additional information you require.

Awaiting you soonest reply and thanking you in advance,

Very trult yours,

P.&.- Please refer in your cable and correspondence to "Bridge oprno",
Moo M/ To CKF Saigon Value: US$ 690,000. -

Design and Manufacture of Steal Railway

Bridge for one meter gage railroad.

RAL INFORMATIONS

Article 1 The steel railway bridges mentioned in the list attached hereto must be designed and manufactured in accordance with the best rules of the art. The raw materials used will be of the best quality and be free from all defects that will effect the salidity or aspects of the material.

Article 2 – Materials.

The supplier participating the bid will be free to use either carbon grade steal or high strength steel for the structural members and rivets.

The carbon grade steel will be in general accordance with ASTM designation A7 – 58T, and A.11 - 587, and particularly the minimum tensile test requirements

Forged steel shall be used for large expansion rollers. Cast steel shall be used for shoes, rokers and bearings.

Article 1-Technical specifications.

Type of bridge.

The preferred type of bridge is the riveted truss bridge warren type, with a constant height.

Quantity and length of spans.

The quantity of spans to be supplied and the approximate distances between the axis of bearings of each span are given by the two drawings attached :

1 - Drawing No. VBC.2213 giving the general dimensions of bridges, piers and

abutments (dimensions governing the design of new structures).

Tentative sketch of new warrm type bridge drawing No. VEC.2216.

The specification for steel railmys bridges (for fixed spans not exseeding 400 feet in length) of the American Railmy Engineering Association (C and N SectionEngineering Division - Association of American Railroads) are applicable, except the following alterations.