History of the United States (1964–1980)
The growing Watergate scandal was a major disaster for Nixon, eroding his political support in public opinion and in Washington. However he did manage to secure large-scale funding for South Vietnam, much of which was wasted. The United States withdrew its troops from Vietnam before the Paris Peace Accords in 1973. However, Watergate resulted in significant Democrat gains in the 1974 midterm elections and when the new 94th Congress convened the following January, it immediately voted to terminate all aid to South Vietnam in addition to passing a bill forbidding all further US military intervention in Southeast Asia. President Ford was against this, but as Congress had a veto-proof majority, he was forced to accept. South Vietnam rapidly collapsed as the North invaded it in force, and Saigon fell to the NVA on April 30, 1975. Later nearly one million Vietnamese managed to flee to the U.S. as refugees. The impact on the U.S. was muted, with few political recriminations, but it did leave a "Vietnam Syndrome" that cautioned against further military interventions anywhere else. Nixon (and his next two successors Ford and Carter) had dropped the containment policy and were not willing to intervene anywhere.
United States–Vietnam relations
Within a few months of the Sixth National Party Congress, however, Hanoi began to send conflicting signals to Washington. In mid-1987 the Vietnamese government, having determined that cooperation had gained few concessions from the United States, reverted to its pre-1978 position linking the aid and MIA issues. The resumption of its hardline stand, however, was brief. A meeting between Vietnamese leaders and President Reagan's special envoy on MIAs, General John W. Vessey, in August 1987 yielded significant gains for both sides. In exchange for greater Vietnamese cooperation on resolving the MIA issue, the United States agreed officially to encourage charitable assistance for Vietnam. Although the agreement fell short of Hanoi's requests for economic aid or war reparations, it marked the first time that the United States had offered anything in return for Vietnamese assistance in accounting for the MIAs and was an important step toward an eventual reconciliation between the two countries.