The President of the United States of America takes pleasure in presenting a Gold Star in lieu of a Second Award of the Distinguished Flying Cross to Commander Paul G. Merchant, Sr., United States Navy, for heroism and extraordinary achievement in aerial flight on 7 November 1965 as flight leader of a section of propeller-driven aircraft in Attack Squadron One Hundred Fifty-two, embarked in USS ORISKANY (CVA-34). Assigned as helicopter escort in the effort to rescue downed Air Force airmen deep in enemy territory in North Vietnam, Commander Merchant navigated and escorted the helicopter to the scene while maneuvering around areas of concentrated enemy defenses and along the perimeter of a SAM envelope. When the rescue helicopter was hit by enemy ground fire at the scene and unable to continue, Commander Merchant quickly grasped the initiative and directed the damaged aircraft to the nearest inaccessible hill in the area to make a controlled landing in a cleared area. Under his direction and guidance, two other rescue helicopters were directed to the area and successfully picked up the four helicopter crew members. When everyone was clear, Commander Merchant destroyed the downed helicopter with rocket and cannon fire in order to prevent its loss to the enemy. His display of outstanding aerial leadership, quick thinking, superb airmanship, and bold action were in keeping with the highest traditions of the United States Naval Service.

The President of the United States of America takes pleasure in presenting a Second Gold Star in lieu of a Third Award of the Distinguished Flying Cross to Commander Paul G. Merchant, Sr., United States Navy, for heroism and meritorious achievement in aerial combat while attached to and serving with Attack Squadron Fifty two, embarked in USS TICONDEROGA (CVA 14) on 26 April 1967. Assigned as Division Leader of a Rescue Combat Air Patrol mission during a major strike on the Haiphong Petroleum Storage Area, North Vietnam, Commander Merchant distinguished himself by his courageous actions and exemplary conduct. Upon being informed that one of the strike aircraft had suffered battle damage and the pilot would have to eject in spite of the fact that this brought him into range of surface-to-air missile fire and gun fire from the heavily defended coast line. Determining that the pilot had ejected and was in the water less than 100 yards from the hostile shore, Commander Merchant quickly located him and established a protective pattern at extremely low altitude. In addition to ensuring continued visual contact with the downed pilot, this maneuver served to draw fire from the beach thus exposing enemy gun positions to counter-attack. As the rescue helicopter approached the scene the enemy guns doubled their efforts, directing their fire at the helicopter, the pilot in the water, and the RESCAP. Commander Merchant brilliantly directed the actions of his division in silencing these guns and personally conducted repeated attacks against a very active site. Largely through his efforts a successful rescue was accomplished under particularly hazardous conditions. By his outstanding airmanship, devotion to duty and heroic actions in the face of grave personal danger, Commander Merchant upheld the highest traditions of the United States Naval Service.