CENTRAL INTELLIGENCE BULLETIN

• Document Type: SPECIALCOLLECTION
• Collection: Tet Declassified
• Document Number (FOIA) /ESDN (CREST): 02033835
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: April 26, 2019
• Document Release Date: April 30, 2019
• Publication Date: January 3, 1968

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
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3 January 1968 3.5(c)
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The CENTRAL INTELLIGENCE BULLETIN is produced by the
Director of Central Intelligence to meet his responsibilities for providing
current intelligence bearing on issues of national security to the President,
the National Security Council, and other senior government officials. It
is produced in consultation with the Departments of State and Defense.
When, because of the time factor, adequate consultation with the depart-
ment of primary concern is not feasible, items or portions thereof are pro-
duced by CIA and marked with an asterisk.
Interpretations of intelligence information in this publication represent
immediate and preliminary views which are subject to modification in the
light of further information and more complete analysis.
Certain intelligence items in this publication may be designated specifically
for no further dissemination. Other intelligence items may be disseminated
further, but only on a need-to-know basis.
WARNING
This document contains classified information affecting the national security
of the United States within the meaning of the espionage laws, US Code
Title 18, Sections 793. 794, and 798.
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3 January 1968
Central Intelligence Bulletin
CONTENTS
Vietnam: Situation report. Page 1)
Iran: The Shah is angered with the consortium over
oil revenues. (Page 5)
CUBA: Castro's annual speech Page 7)
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South Vietnam: Intercepted enemy tactical mes-
sages reveal intense Communist preparations for a
new round of attacks near Dak To.
The preparations include extensive reconnais-
sance patrolling and reporting on allied movements,
as well as the repositioning of enemy units within the
southwestern Kontum Province area. Several mes-
sages mentioned the period between the 2nd and 6th of
January as the time for the attacks. Other messages
gave specific instructions to strike an airfield, pre-
sumably the one at Dak To shortly after US trans-
port aircraft have landed in an effort to hit both the
aircraft and the troops concentrated there.
Elements of at least four North Vietnamese
regiments are scattered throughout this general
area. They have been keeping pressure on US field
positions through numerous mortar attacks in recent
weeks./
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Iran: LThe Shah appears to be heading for a show-
down with the Western consortium over the issue of
oil revenues for Iran.
The Shah is especially angered because the con-
sorefum's latest quarterly payment was based in part
on the predevaluation pound, a loss to Iran of about
$12 million. Using such terms as "robbery" and
"thieves," the Shah told the US ambassador on 28 De-
cember that if the consortium members wanted
"war," they could have it. The Shah suggested the
possibility of unilateral legislation to ensure Iran un-
depreciable payments, and to provide for Iranian
sale of oil which the consortium does not export. He
has previously threatened to take the oil revenue is-
sue "to the Iranian people." The consortium states
that its position is legally correct, but it is making
efforts to find some sort of compromise.1
)The payments issue is an irritating facet of the
over-all problem of oil revenues which has been
under discussion since October. The Iranian Govern-
ment has presented the consortium with the schedule
of the oil exports required to fulfill Iran's "fourth
plan" (1968-1972). The Shah claims to need $5.9
billion from oil revenues for that period, but the con-
sortium believes that this figure is excessive.
Iranian officials concede that the plan was drawn up
on the basis of faulty oil revenue estimates, but in-
sist that the consortium must come up with the money
one way or another.?
The oil revenue problem, a recurring one, is
particularly touchy this year because Iranian expecta-
tions were so high. Iranian officials have assumed
that their cooperation with the consortium during the
Middle East crisis would guarantee them favorable
treatment in the form of greatly increased oil exports.)
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The Shah has long claimed that Iran, as a stable
and progressive nation, is more deserving of large
revenues than Saudi Arabia, Kuwait, or the sheikdoms.
He is bitterly disillusioned now that the expected
favorable treatment does not seem to be materializing.
The consortium believes it is doing all it can for Iran
in view of the near glut in the world oil market
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NOTES
*Cuba: Fidel Castro devoted most of his annual
2 January speech to a discussion of Cuban economic
developments. He admitted that increased fuel consump-
tion has caused an acute shortage of petroleum products
and said that as a result Cuba will face belt-tightening
and rationing in 1968. Closing the speech with his usual
jab at "US imperialism," Castro declared Cuba independ-
ent from any ideology but its own and said that his regime
"will carry forward its internationalist policy of solidarity
with the revolutionary movement throughout the world."
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