CENTRAL INTELLIGENCE BULLETIN
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03186511
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3.5(c)
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
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5 February 1968
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Controlled Dissem
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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5 February 1968
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
Thailand: Government troops still encountering
strong Communist resistance in north. (Page 4)
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3.3(h)(2)
Brazil: Military pressing President Costa e Silva
to move against oppositionist Lacerda. (Page 5)
Cyprus: New Greek-Turkish discussions may
be under way (Page 6)
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STATLITE MI LES
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*South Vietnam: US Marines in defensive positions on
Hill 861 northwest of Khe Sanh beat back a North Vietnamese
ground attack before dawn this morning while the main
Khe Sanh base came under heavy mortar, artillery and
rocket fire.
Seven Americans and 100 North Vietnamese were
killed during the four-hour assault on the hill, the first
significant ground action in the Khe Sanh sector in more
than a week. Another 44 Marines were wounded in the
battle.
Meanwhile, allied forces appear to have regained
the initiative over the weekend in many of South Vietnam's
urban areas. Sharp fighting continues in Hue, however,
as well as in sections of Saigon and in several other pro-
vincial cities and district towns throughout the country.
There are some indications that the Communists intend
to conduct a prolonged offensive against major population
centers. In addition to reports of enemy troops deployed on
the outskirts of a number of cities, a Viet Cong prisoner
claimed that the current
"general insurrection campaign" would extend for the
duration of the winter-spring offensive. A broadcast from
the Communists' clandestine Liberation Radio this morning
said that the Viet Cong would continue their present drive
until "final victory. "
In another broadcast the Communists threatened re-
prisals against US personnel in Viet Cong hands if Com-
munist soldiers captured in the recent fighting are brought
to trial or executed.
The Saigon government has begun to organize itself
to cope with the immediate and longer range civil problems
arising from the Communist Tet offensive.
President Thieu held a series of weekend meetings
with top South Vietnamese military and civilian officials
and with senior US officials and agreed to the formation
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of an emergency joint task force, Headed by Vice
President Ky, this group will be concerned with deter-
mining priority needs throughout the country, the
movement of food supplies and other essential relief
activities, and the strengthening of information and
psychological warfare services. In an official release
yesterday, Thieu announced the creation of a central
coordinating center in Saigon, under Ky, and promised
that the army would assist war victims.
The government is also moving to mobilize support
for its own actions in the crisis and to elicit denunci-
ations of the Communists from influential civilian circles.
It has received public statements of support from National
Assembly officials, the Upper House defense committee,
and a group speaking for the entire lower house. The
Vietnamese Confederation of Labor and its Saigon council
have issued similar pledges, and union leaders as well
as the moderate Buddhists have begun to organize emergency
relief centers for the needy in Saigon,
Despite these pledges, there is widespread criticism
among some assemblymen and union leaders
over the government's performance to date. Much of the
criticism is directed at Prime Minister Loc for taking
little initiative within his own cabinet or among private
groups willing to help.
Militant Buddhist leader Tri Quang, described as
particularly bitter over the military attack on his pagoda
where Viet Cong entrenched themselves during the fighting,
has refused to denounce the Viet Cong, but an aide states that
he is willing to organize welfare centers as a tacit "gesture"
of cooperation.
(Map)
5 Feb 68 2
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66ailand-
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5 Feb 68 CENTRAL INTELLIGENCE BULLETIN Map
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A. NJ .1--/ -L
Thailand: Government troops continue to encoun-
ter strong Communist resistance in northern Nan
Province.
Two new clashes have recently been reported and
the estimated 200 Communist-led tribesmen in the
area are displaying considerable tactical skill and dis-
cipline in evading and harassing government forces.
The government's 3,000-man police and army force
has now suffered more than 80 casualties during the
two-month-old operation, the heaviest government
losses sustained thus far in operations against the in-
surgents.
The Thai Communist Party has been working with
the northern tribal people for several years and has
managed to extend its influence over a number of vil-
lages. Several hundred Thai tribesmen have received
military training in Laos and North Vietnam, and they
appear to be getting important support from Commu-
nist elements across the border in Laos. In addition,
Thai officials claim they have identified two recently
killed insurgents as Vietnamese, and have picked up
two Communist-manufactured weapons. If true, this
would be the first hard evidence that the insurgents
are receiving such outside support.
Bangkok appears to be overreacting to the threat
in Nan Province. Villagers in the area of govern-
ment operations have been moved into refugee encamp-
ments and air strikes are being made against aban-
doned villages in an effort to destroy crops and food-
stuffs that might fall into insurgent hands. Such
heavy-handed treatment will almost certainly further
alienate the tribal people. It reflects Bangkok's un-
willingness to recognize that its own tribal policies
have been largely responsible for creating a situation
ripe for Communist exploitation.
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Brazil: Military pressure is building up on the
Costa e Silva government to move against Carlos
Lacerda.
Army officers believe that Lacerda is about to
unleash another series of violent newspaper attacks
on high military figures in the government�including
Transportation Minister Andreazza and Interior Min-
ister Albuquerque Lima. Although some military
men still favor the government's policy of ignoring
Lacerda,
it is the
army's consensus that Lacerda should be prosecuted
under provisions of the new national security law.
Some "hotheads" believe that Lacerda would not be
convicted under the law and reportedly are threaten-
ing to assassinate him if he defames military leaders.
Tempers are running high over this issue and
extremist acts are possible. In 1954, an attempt to
assassinate Lacerda by henchmen of then-president
Vargas quickly resulted in the government's downfall.
Another attempt-- even if it failed--would be widely
viewed as a sign of government weakness and could
erode military support for Costa e Silva.
5 Feb 68 5
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NOTE
Cyprus: New Greek-Turkish discussions of the
Cyprus problem may be under way. Turkish news-
papers report that Turkish Foreign Ministry officials
are somewhere in Europe and speculate that they may
be engaged in secret talks with their Greek counter-
parts. Whether Athens and Ankara are talking or not,
these reports will probably draw the fire of Cypriot
President Makarios who has long done his best to
sabotage any bilateral efforts between the two coun-
tries to arrive at a solution.
5 Feb 68
6
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