WEEKLY SUMMARY
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03023182
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Publication Date:
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DIRECTORATE OF
INTELLIGENCE
WEEKLY SUMMARY
3'ecro
20 February 1970
No. 0358/70
(b)(3)
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th:: WEEKLY SUMMARY, issued every nday morning by the
ICt7 Of Cul lent Intelligence. reports and analyzes significant
developments oi the week through noon on chursday. It fre-
nwntiv includes material coordinated witii or prepared by the
ice of Fconomic Research, the Office.ot Strategic Research,
awl the Directorate of Science and technology. I �pies requir-
more comprehensive treatment and therefore published sep-
:r:;e!v as _special Reports arc listed in the: contents pages.
W A RNING
Me WEEKLY SUMMARY contains classified information at-
ling the national security of the United States, within the
In, _ming ol Tide 18, sections 793 and 794, of the US Code, as
;wended. Its transmission or revelation oi its contents to or re-
ipt an unauthorized person is prohibited by law.
GROUP�I
Excludad from automatic
downgrading and
dnclawsification
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CONTENTS
CONTENTS
(Information as of noon EST, 19 February 1970)
Far East
THE WEEK IN PERSPECTIVE
Page
1
VIETNAM 2
Le Duan has issued a major new policy 'statement in
Hanoi. Action in the war remains light, and the
South Vietnamese have recently scored a number of
local successes. The legality and wisdom of the
Saigon government's proposed colirt action against
two Lower House deputies are again being questioned.
COMMUNISTS MAKE SWEEPING GAINS/IN NORTH LAOS
The Communist offensive against the Plaine des Jarres
is chalking up steady and substantial gains, and the
government faces the pr,eispect of losing control soon
over the entire area.
MASS TRIALS IN COMMUNIST CHINA
An anticorruption campaign has produced a wave of
public trials, but many of those in the dock are
probably guilty mainly of being losers in recent
political struggles.
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Th'reR-E�T_
Europe
THE WEEK IN PERSPECTIVE
IAEA FACES A NEW ROLE
Next month's entry into force of the Nonproliferation
Treaty will increase the importance of the IAEA,
which must supervise its safeguards provision.
ITALY SEEKS NEW CENTER-LEFT GOVERNMENT
The long-expected negotiations looking toward a new
center-left government got under way last week with
the naming of Christian Deliocrat Mariano Rumor as
prime minister - designate.
SPANISH FOREIGN MINISTER SCORES ON PARIS VISIT
Foreign Minister Lopez gravo's warm reception in
Paris last week will mike for closer relations and
will further his aspilAtions for a larger role for
Spain in internationall affairs.
THE POLITICS OF SUCCESSION IN YUGOSLAVIA
Political jockeying/in Yugoslavia has been generated
by an awareness thqt the 77-year-old Tito will not
be around forever.
HUNGARY PURSUES WESTERN TRADE
Proceeding from/a surprisingly large increase in ex-
ports to the West last year, Hungary is looking for
more trade and industrial cooperation schemes with
the West.
FINLAND PREPARES FOR PARLIAMENTARY ELECTIONS
Political polls forecast a shift away from the parties
in power, but the necessity to gain Moscow's acceptance
of any Finnish coalition would seem to rule out any
significant change in the government that will take
office after the March elections.
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12
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14
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16
77Prt444,:._
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Middle East - Africa
THE WEEK IN PERSPECTIVE 17
USSR TAKES TOUGH LINE ON MIDDLE EAST
The Soviet press is taking a more obdurate line as
Moscow awaits Washington's decision on whether to
give additional aircraft to the Israelis, who have
resumed bombing close to Cairo.
TENSION SUBSIDES IN JORDAN--FOR THE MOMENT
Tension in Amman has slacked off sharply, but the
apparent calm may be only a pause if the King--as
he has hinted--still intends to try bringing the
Arab-fedayeen under some measure of control.
INDIAN PARLIAMENT OPENS FOR CRUCIAL SESSION
Prime Minister Gandhi's "progredsive" program and
political skills will be tested as never before by
the strongest opposition ever assembled in India.
INTRAPARTY RIFT CAUSES POLITICAL CRISIS IN TURKEY
Turkey's current political crisis, precipitated by
dissident members of the ruling Justice Party, cul-
minates a lengthy struggle for power between the
conservative and liberal wings of the party.
PAKISTAN MOVES TO AVERTFOODGRAIN SHORTAGES IN EAST
Rawalpindi is try4tig to ensure adequate food supplies
in East Pakistan,/during the last half of 1970 by mak-
ing early arrangements for imports of US grain.
Western Hemisphere
THE WEEK IN PERSPECTIVE
BOLIVIAN GO,VERNMENT CONTINUES LEFTIST COURSE
Although President Ovando has moderated his state-
ments in recent weeks, he does not seem disposed to
reverse the leftist trend of his government.
DOMINICAN PRESIDENT SET FOR RE-ELECTION ANNOUNCEMENT
' President Balaguer is heavily committed to seeking
re-election in May despite some high-level defections
in his party and the prospect of increased urban vio-
lence.
--greR-gaL
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BAHAMAS TIGHTENS CONTROL OF FOREIGN BUSINESSES
New government efforts to control, the foreign busi-
ness community are again unsettling investment and
political circles in the Bahamags.
CARIBBEAN BLACK POWER CONFERENCE' SCHEDULED
The meeting will be held fi'om 9 to 12 July in Barba-
dos. Any spontaneous isZand-wide disorders would
severely tax Barbados' A6mall security force.
GUATEMALAN ELECTIONS--A PrEFIANCE OF HISTORY
If the elections sageduled for I March take place and
a legally elected/6overnment is installed in July,
Mendez will be thpiab third elected president since 1821
to serve a full/term in Guatemala. The shortness of
the time remail;fang before the balloting increases the
probability 4at the elections will actually be held.
The postelection period, however, may well develop
into one of/crisis.
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FAR EAST
The North Vietnamese offensive in north Laos has moved steadily
forward since it began just over a week ago, and the government faces:the
prospect of soon losing control of the entire Plaine des Jarres. The enemy,
who has paid heavily for the advance, appears willing to sacriftce the
personnel and materiel necessary to regain control of the Plaine. Farther
north, the Communists have overrun the remaining government outposts
near Pak Beng, thus achieving their long-sought goal of cleating the govern-
ment from the Nam Beng Valley.
North Vietnamese party First Secretary Le Duan,-has followed up his
recent emergence from four months of seclusion by publishing a major
policy statement on behalf of the regime. Le Duans article, billed as a "very
important and basic document," is the first actotS-the-board policy review
promulgated since Ho Chi Minh's death. The full text, not yet available in
the West, could provide valuable insights into Hanoi's priorities for domestic
affairs and for the war in the South.
Battlefield action in South Vietnani has remained at a low level, but the
Saigon government found itself engaged once again by opposition elements
immediately after the Tet holidaye Ethnic Khmer Buddhists have renewed
their demonstrations against alleged government discrimination, and the
Thieu administration is beingleriticized anew for its decision to try two
Lower House deputies chargefit with having Communist connections.
Philippine PresidentpMarcos is having some success in deflecting student
ire over domestic ills .rtd corruption onto the US. The circumstances of a
rowdy student demonitration at the US Embassy in Manila on 18 February
indicate that it waVofficially encouraged. Not only were there persistent
radio reports in a0ance of the incident that a demonstration was expected
at the embassy/ but the police did not respond to official US calls for
protection until the US compound had been under attack by demonstrators
for almost an'hour. Marcos remains on the defensive as most students appear
intent on continuing to air domestic issues, especially in view of the conces-
sions they have already succeeded in extracting from the president.\
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VIETNAM
Le Duan, Hanoi's party first
secretary, has issued a major new
policy statement on behalf of the
regime. The statement, of which
only a short summary is available
in the West so far, pre-empted all
12 pages of the party daily on 14
February. The attendant publicity
buildup describes the work as a
"very important and very basic
document"--language usually re-
served for only the most authorita-
tive and comprehensive party state-
ments. The last pronouncement with
comparable billing, length, and
scope was the report by Truong
Chinh in mid-1968 signaling Hanoi's
return to a "protracted war" strat-
egy in the South and calling for
increased attention to internal
problems in North Vietnam.
Le Duan emerged only two or
three weeks ago from four months
of seclusion, and his article is
the first across-the-board policy
review from the top leadership
since Ho Chi Minh's death last
September. The summary contains
few hints of major policy shifts,
but the full text, with its ap-
parent detailed discussions of his-
tory, strategy, and tactics, could
provide the latest word on current
Communist objectives and strategy
in the South. It may also give an
inkling of the priority Hanoi at-
taches to the war in relation to
its other foreign and domestic con-
cerns. Moreover, such long and
detailed discussions have often
disclosed the special views or pre-
occupations of individual leaders
and have provided insights into
policy differences within the lead-
ership.
Quiet on the Battlefield
Whatever the nuances of Le
Duan's pronouncement, there is
little doubt that "protracted war"
remains the watchword for Communist
forces in South Vietnam. There was
little military action during the
last week despite signs that the
Communists had hoped to follow up
the Tet holiday with a show of
force. In part, this reflects the
general effort they are making to
hold down battle casualties by mov-
ing only after careful preparation.
It appears increasingly clear that
the enemy is giving local commanders
greater leeway in deciding where and
when to attack. Apparently not many
commanders considered themselves well
enough situated last week to initiate
action.
South Vietnamese forces have
been able to score well in some
local engagements recently. Regu-
lar units supported by tanks killed
more than 200 Communists in a series
of battles south of Da Nang. In
War Zone "D," north of Saigon, ir-
regular troops led by US and South
Vietnamese Special Forces captured
one of the largest enemy munitions
caches ever seized in the war.
South of Saigon, a South Vietnam-
ese task force apparently has suc-
ceeded in blocking the infiltration
of large North Vietnamese elements
from Cambodian sanctuary into the
upper delta.
The Communists struck back
strongly in the delta later in the
week, however, ambushing and badly
mauling a 150-man South Vietnamese
patrol in Kien Hoa Province. Other
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ErR.E4_
Communist units continue to resup-
ply and reconnoiter allied posi-
tions, presumably in preparation
for coming attacks. They remain
capable of launching a spring cam-
paign, including widespread shell-
ings and ground probes, with little
warning.
Troubles on the Political Front
Although the battlefield re-
mained relatively calm, the South
Vietnamese Government found itself
again engaged on the political home
front by opposition elements. Al-
most immediately after the Tet
holidays, some 1,000 Buddhist monks
of Cambodian (ethnic Khmer) descent
stormed the Tra Vinh police station
in the delta and marched on the
province chief's office there. Al-
though dispersed in a few hours,
the demonstration may presage a
renewal of the monks' campaign
against alleged discrimination by
the Sai on qovernmeiit
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In Saigon, the legality and
wisdom of the government's proposed
court action against two Lower House
deputies accused of having Commun-
ist connections have again come into
question. Under attack is the legal
keystone for the government's move--
the Lower House petition that advo-
cates lifting the parliamentary im-
munity of the two deputies. Its
critics claim that the Lower House
is not empowered to remove immuni-
ties by petition. Moreover, three
lawmakers are now reneging on their
signatures, thus suggesting that the
petition now lacks the requisite
Lower House backing.
The government nevertheless
seems determined to push ahead with
a military trial for the two accused
deputies. Given the extent to which
President Thieu has involved his
personal prestige in the case, the
chance that he can be deflected
from the course he has chosen seems
remote.
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Laos: Communist Communist Offensive Progresses
N
elV'gong:
vy Communist
attacks
/a
Clang Khoft
Vientia
Communist-controlled territory
Contestid territory
Limit of area claimed under
Communist and Neutralist
control, June 1962
N
Communists
gain control
f supply route
akse
100
MILES
1:::976522.70 CIA1
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COMMUNISTS MAKE SWEEPING
North Vietnamese troops con-
tinue to retake key positions they
abandoned last August around the
Plaine des Jarres, and it appears
to be only a matter of time before
the entire Plaine is again under
enemy control.
Meo General Van Pao had
hoped to hold a few of his posi-
tions north and east of the Plaine
to retard further enemy advances,
but he ordered a withdrawal rather
than risk exposing his weary and
outnumbered troops to possible
annihilation. The restoration of
enemy control over the crucial
junction of Routes 7 and 71 at
Nong Pet had enabled North Viet-
namese forces to reopen their
vital infiltration and supply
artery down Route 7. Communist
elements have also occupied sev-
eral important positions on high
ground along the southern edge
of the Plaine. Initial govern-
ment moves to retake these points
have been rebuffed and the loss
of this entire sector appears in
prospect.
On the Plaine itself, the
Communists have continued to di-
rect heavy artillery and infan-
try attacks against Vang Pao's
forward headquarters at Xieng
Khouang Airfield. 4.c Meo leader
ort
to�.d-e--e-drattrer--than
f a H�b ��n-----th-e---f a Ct of a-major
om7errr-a-t-taek. Although government
defenders so far have taken only
light losses, the enemy has suf-
fered substantial casualties in
his ground attacks against the
airfield. Employing several light
GAINS IN NORTH LAOS
tanks, the enemy launched a heavy
assault on 18 February, but was
beaten back. The airfield's de-
fense is being hampered by the
steady arrival of government troops
retreating from areas north and
east of the Plaine. Most of these
troops are no longer effective, and
unless they are shifted to a less
exposed position, the government
may yet suffer sizable casualties.
un 17- Feb uctLy - the -effetty
staged a small sapper raid ag
Vang Pao's main headquarter at
Long Tieng. This was the irst
action ever undertaken 4ainst
this base, which is th key to
the government effor in the north-
east. The attack, hich destroyed
one aircraft, pro ably was intended
to confuse Vangdeao's forces and to
induce him to Ull troops off the
Plaine to defr nd the Long Tieng
area. Ther are no indications
that the f5rth Vietnamese intend
to make major thrust against
Long Tieng. The rugged terrain
and large numer of Meo villagers
in t e area make the enemy's task
of oving in strength on this
se_very-difficnit. _
Intensive tactical air strikes
have probably taken a heavy toll
on enemy units. Nonetheless, the
Communists appear willing to ac-
cept heavy personnel and material
losses in order to restore their
control over the Plaine.
In an apparent effort to fore-
stall a government move to rein-
force the Plaine des Jarres with
troops from the southern panhandle,
the Communists launched their
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.5.1X-Ak-ET
MASS TRIALS IN
A wave of officially inspired
public mass trials is sweeping Com-
munist China. The main targets of
the drive, according to regime prop-
aganda, are those who have been en-
gaging in graft, theft, corruption,
and embezzlement. Some opportunists
no doubt took advantage of the break-
down in controls during the Cultural
Revolution to line their pockets,
and Peking is now moving to punish
them. Many of those brought to
trial, however, are probably fairly
low-level people who are guilty of
being losers in the political strug-
gles of the past year or two rather
than of economic crimes.
19 politi-Cal
offenders affiliated with-radical
Red Guard organizationg-were sen-
tenced to death_at'a mass trial last
month. In Kwahgtung, teams of in-
vestigators are conducting a search
for factionalists who committed mur-
der and other serious crimes during
the-CuItural ..keveratIon.
The anticorruption campaign,
thus appears to be closely linked
to the present political counter-
attack by party cadres who suffered
abuse by the more radical Red Guard
elements during the Cultural Revolu-
tion. Public pronouncements on
party building are increasingly
forthright in their attacks on erst-
while "rebels" who believe they auto-
matically qualify for leading posi-
tions in newly emerging party com-
mittees. Honan radio on 10 Febru-
COMMUNIST CHINA
ary, for example, stated flatly that
those rebels who continue to engage
in factional activities do not meet
the qualifications for party member-
ship, and are not qualified to parti-
cipate in rebuilding the party ap-
paratus.
Some of the old cadre, however,
are afraid of "offending the rebels,"
according to the Honan broadcast.
Their reluctance to strike out
against radical antagonists almost
certainly stems from their experi-
ences during the pendulum-like
swings of the Cultural Revolution.
Most cadre apparently are not con-
vinced that those purged today will
not be back to haunt them tomorrow.
Nevertheless, many of the old-line
cadre who were attacked during the
Cultural Revolution will probably
seize any opportunity to take some
form of revenge against their for-
mer tormentors.
Radical elements will not ac-
cept this state of affairs passively,
however, and further disorders may
be in the offing as they continue
to resist efforts by local officials
to intimidate and punish them. The
success of the punitive efforts of
local authorities depends largely
on their willingness to commit them-
selves. This, in turn, rests to a
major extent on their reading of
the leadership picture in Peking.
Even experienced party members must
find that view very clouded.
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_SEGRET
EUROPE
The highlight of the 25-nation Geneva disarmament talks tlidl resumed
this week, was an address by UN Secretary General Thant to he conferees.
The Soviets have indicated that they, like the US, will seek ,e6mpromises on
the draft seabeds treaty with Canada and Argentina, fro of its more
influential critics. Moscow continues its preference Vir a ban on both
chemical and biological weapons, whereas the US faxers agreement at this
time only on biological weapons. Moscow is stilyopposed to on-site in-
spection, although it is willing to consider other proaches to verification.
The second round of the technical talksilietween the US and USSR on
peaceful nuclear explosions (PNEs) ended tIA week. The Soviets told the US
that they are now in agreement with theArinciple of considering a role for
the International Atomic Energy Agen0 in the "international observation"
of PNEs called for by Article 5 of tile Nonproliferation Treaty. The super-
powers are under some pressure irkihe PNE field; Sweden this week urged
the Geneva disarmament confereeefo draft an agreement for an international
service that would handle nucleV" explosions for peaceful purposes.
Tito is expected to attyhd the Lenin centennial on 22 April
His appearance in Moscow is Tikely to
put a brake on rising rigoslav-Soviet tensions, but Tito as usual will be
prepared to defend YOoslav interests and to argue that Belgrade's policies
are not incompatiblVwith international Communism. Tito's presence also
will fortify the det mination of Romania's Ceausescu, who will also be on
hand, to resist pos ble Soviet pressures to conform.
Hungarian:Foreign Minister Peter evidently intends to try to engage the
Belgians in aidialogue on a European security conference during his visit to
Brussels neit week. /
Peter has also scheduled
visits to/The Netherlands, Norway, and Sweden before the end of June. He is
in Bulgiria this week for talks with his counterpart, Bashev. Meanwhile,
Bulgaiian chief Zhivkov is on a good-will mission to Prague. \
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IAEA FACES
The 26-nation Board of Gover-
nors of the International Atomic
Energy Agency (IAEA)kwill convene
in Vienna on 24 Febrdary to tackle
a number of critical Issues. Most
of these questions relAte to the
increased importance of\the IAEA
as an enforcement agencyVnce the
Nonproliferation Treaty (IRT) en-
ters into force next month:
Under Article 3 of the RT,
all nonnuclear-weapon states Ad-
hering to the treaty must begikne-
gotiations with the IAEA on safk-
guards agreements--designed to p
vent the diversion of fissionable
material from peaceful uses--withik
six months of the NPT's entry into \
force. The agreements are to be
completed within the following 18
months. States may negotiate the
safeguards agreements with the IAEA
either individually or collec-
tively--a provision designed specif-
ically to accommodate the European
Atomic Energy Community (EURATOM).
The UK has proposed that the
board create a safeguards coMmit-
tee to consider the position the
IAEA should take during the forth-
coming negotiations. AlVfiough pres-
sure for some such mechanism appears
irresistible, the six JOURATOM na-
tions are being very sticky about
its terms of reference. They fear
that the wording could encourage
premature discussion of the deli-
cate relationship/that must ulti-
mately be worked/out between EURATOM
and the IAEA.
EURATOM considers that assur-
ances given during the negotiation
of the NPT provide for continuation
of its own safeguards system and
A NEW ROLE
that the IAEA's role will be re-
stricted to verification of the ef-
fectiveness of EURATOM's system.
This viewpoint is expected to be
expressed in the mandate that the
Council of Ministers of the Euro-
pean Communities (EC) will give to
the EC Commisaion, which must ne-
gotiate with the IAEA on behalf of
EURATOM. EURATOM members are con-
cerned, however, that this position
may be challenged immediately by
the Japanese and others who allege
that ajorivileged position in safe-
guards'matters for a regional group-
ing like EURATOM could give it an
advantage in the peaceful applica-
tiO of nuclear technology.
These anticipated problems
\over safeguards are closely tied
\to the current jockeying over the
Npture composition of the IAEA Board
(DX Governors. Many IAEA members be-
lAve that expansion of the board
woU'id increase confidence in the
IAEA\ The Western powers are among
the ]_vi co-sponsors of an Italian
proposN1,1 that would increase the
memberst.ip to 33. Italy and West
Germany-EURATOM countries--would
be among he nine IAEA members
"most advanced in the technology
of atomic energy" that would receive
permanent sets on the board.
N
Rome's initiative, however, has
encountered strong resistance from
the Soviet bloc, the Africans, and
the Scandinavians. Earlier this
week the Soviets presented an alter-
native scheme to expand the board
only to some 29 or 31 members, with
Italy and West Germany not receiving
permanent seats. This plan accords
with the views of Sir Phillip Baxter
of Australia, chairman of the Board
of Governors.
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At the meeting next week, the
governors may also consider an East
German request for IAEA safeguards
on a recent shipment of 20-0-4i10-
grams of slightly enriched uA4_um
received from the USSR. The
staff appears to favor compliance
with the request, the first by a
nonmember, noting that an inspection
arrangement would not necessar
provide recognition of East Ciperany
as a state. Bonn, howevst