- THE VIETNAM CENTER AND ARCHIVE
- Texas Tech University
The new status quo held in Vietnam until the end of 1974 when several factors led to the demise of South Vietnam. The Arab-Israeli War of 1973 triggered an economic crisis with rising inflation and soaring petroleum prices causing problems all over the world, and, more significantly, angered American consumers. The political environment in America had changed drastically: President Richard Nixon resigned from office in August of 1974 and the American people were becoming increasingly vocal against continuing aid for a war that had supposedly ended in 1973. Eventually, Congress bowed to the pressure and significantly cut Vietnam's military and financial aid. Faced with a money shortage and high inflation, South Vietnam was suddenly unable to purchase the weapons necessary to engage the North Vietnamese army. During this time of crisis, the North Vietnamese secretly planned a major offensive meant to push deeply into South Vietnam's territory in early 1975.