CENTRAL INTELLIGENCE BULLETIN

• Document Type: SPECIALCOLLECTION
• Collection: Tet Declassified
• Document Number (FOIA) /ESDN (CREST): 03192656
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: April 27, 2019
• Document Release Date: April 30, 2019
• Publication Date: March 27, 1968

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DIRECTORATE OF
INTELLIGENCE
_Top-Secret-
3.5(c)
Central Intelligence Bulletin
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Op UM
c 218
27 March 19683.5(c)
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Jo-
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
t'or 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.
TapSecret
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27 March 1968
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
Panama: An uneasy calm has followed last night's
rioting, but more trouble is likely. (Page 2)
Communist China: New purges of high-level figures
under way. (Page 4)
Greece: The junta is seeking to improve its image
through its constitutional program. (Page 8)
Denmark-Sweden: Danes are first NATO country to
buy jet fighters from a non-NATO country. (Page 9)
Brazil-France: Aircraft (Page 10)
TO4-87Cr----Z. ET
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90065 3-68 CIA
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*South Vietnam�. The large enemy assault in Kon-
turn Province on 26 March may signal a Communist
offensive throughout the western highlands.
A multibattalion North Vietnamese force attacked
a US 4th Infantry Division position west of Kontum city
and was driven off after four hours of fierce fighting.
This was the first significant activity against US forces
in the highlands since the Tet offensive, and the enemy
left some 135 dead behind.
There have been a number of indications that re-
newed large-scale Communist attacks against allied
forces in the highlands might begin in late March. The
provincial capitals of Kontum, Pleiku, and Ban Me Thuot
would be among the targets0
have revealed
extensive reconnaissance, troop deployments, and other
battle preparations. In Darlac Province, for example,
the North Vietnamese 33rd Regiment appears to be mass-
ing for attacks on allied targets in the Ban Me Thuot
area. A 25 March
Province.
nated attacks" and to "N-Day,"
lent of D-Day.
referred to "coordi-
the Vietnamese equiva-
Elsewhere in the country Communist military ac-
tivity was at a relatively low level except for a major
engagement northwest of Saigon in Hau Nghia Province
apparently involving elements of the Viet Cong 5th Divi-
sion. US and South Vietnamese forces killed some 284
in this battle. (SE
27 Mar 68
1
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*Panama: An uneasy calm has returned to Panama
City after last night's rioting, but more trouble is likely
today.
The long-awaited confrontation between the Robles
government and Arnulfo Arias' National Union (NU) came
yesterday afternoon when National Guardsmen prevented
"President" Delvalle and his aides from entering the
Assembly building. The Guard fired volleys of tear gas
into a crowd accompanying Delvalle after stones and
bottles were thrown. The gas spread into nearby slum
areas, forcing hundreds to flee. Over 70 persons, many
of them women and children, were treated for gas inhala-
tion.
Incidents of arson, rock-throwing, and gunfire, dir-
ected chiefly against the Guard, quickly spread and, des-
pite orders from General Vallarino, Guardsmen continued
to use tear gas to break up angry crowds. By late evening
the Guard had the situation under control in the downtown
area, although there were reports of sporadic violence in
other areas of the city.
Pro-Arias news media are making the most of what
appears to have been an overreaction by the Guard. They
are hammering away at the theme that the consitution is
no longer in effect and that the Guard has, in effect, car-
ried out a coup. Some radio stations are already charging
that "Yankees of the Canal Zone" were "accomplices" of
the Guard because they supplied the tear gas. There
appears to be no immediate threat against the Canal Zone
but one could quickly build if the NU decides to press an
anti-US campaign.
NU leaders are again calling for a general strike and
as a result of last night's violence some businesses may
close today. Delvalle and several pro-Arias deputies plan
a march through the downtown area this morning and some
of the deputies reportedly will try to enter the Assembly
building.
27 Mar 68 2
rr-01:2�St
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During the five-week-old crisis, Arias and the elite
families allied with him have shunned violence and stuck
to a legal course to gain control of the electoral machinery.
So far these tactics have failed to attract widespread public
support. Events of the past three days, however, have
pushed Arias and his followers into direct conflict with the
Guard and a repeat of last night's incidents could rebound
to their favor.
27 Mar 68 3
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*Communist China: Purges of high-level figures
may be again under way in Peking.
According to foreign newsmen in the Chinese
capital, massive demonstrations yesterday denounced
three senior military officers as "plotters." The
three men, not previously under serious attack, are
Acting Chief of Staff Yang Cheng-wu, the air force
political commissar, and the Peking garrison com-
mander. Yang, who was appointed early in the Cul-
tural Revolution, has appeared to be a protege of De-
fense Minister Lin Piao. The dismissal of Yang might
thus reflect adversely on Lin and possibly on Mao.
The apparent disgrace of these prominent mili-
tary figures could indicate that a major political power
play is under way. Posters urging everyone to defend
Mao Tse-tung, his wife, and Lin Piao are being dis-
played prominently along with the attacks on the three
military men. One correspondent reports that many
posters are being put up by soldiers, rather than by
Red Guards as in past campaigns.
3.5(c)
A tense atmosphere has been noted in Peking for
many weeks. soldiers 3.3(h)(2)
carrying rifles with fixed bayonets have been patrolling
the streets on foot and motorcycles. During the past
month numerous big-character posters attacking civi-
lian officials have been observed. Large numbers of
troops and Red Guards have paraded and demonstrated
almost daily since then against such long-discredited
party leaders as Liu Shao-chi. One purpose of those
demonstrations may have been to heat up the atmosphere
and set the stage for the exposure of the military offic-
ials denounced on 26 March.
*Because of the shortage of time for preparation of this item, the analytic
interpretation presented here has been produced by the Central Intelli-
gence Agency without the participation of the Defense Intelligence
Agency, Department of Defense.
27 Mar 68 4
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Greece: The junta continues to hope its constitu-
tional program will impress its allies and arouse do-
mestic support.
After it offered a draft constitution for public dis-
cussion, the junta asked Washington and Bonn to re-
move restrictions on military aid. The government ap-
parently believes that its move toward "constitutional-
ism" should convince friends of its good intentions.
At the same time, the government is engaged in
an extensive domestic campaign to elicit comment on
the proposed constitution. The response has been limited.
Negative reactions from some formerly prominent poli-
ticians suggest that they intend to boycott the constitu-
tional debate and the referendum scheduled for 1 Septem-
ber.
The regime needs a significant success to arouse
some enthusiasm from an otherwise uncommitted popu-
lace. The junta so far has failed to come up with re-
forms that would clearly benefit the general public,
and its continuing dismissal of military, civil service,
and university personnel has not lessened public apathy
toward the junta.
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SWEDEN'S J-35 DRAKEN
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Denmark-Sweden: Denmark has become the first
NATO country to buy jet fighters from a non-NATO
country.
According to press reports, the Danes decided
on 26 March to buy 23 Swedish J-35 Draken aircraft
to replace their aging F-84s. A decision whether to
purchase more planes will be made later.
The Draken is a supersonic single-seat jet fighter
designed primarily to intercept bombers flying at
nearly supersonic speeds. It is built by SAAB and
has a speed of about Mach 2.
Details of the deal are not known yet, but the
Swedes almost certainly granted liberal terms. The
sale, Sweden's first of advanced aircraft to a foreign
buyer, will give Stockholm impetus to continue aggres-
sive sales efforts in the jet fighter market. The Swedes
are currently focusing their efforts on Austria.
2'7 Mar 68
9
TO�P�S-PeIZET
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NOTE
Brazil-France: The French are pressing their ef-
forts to get into the Brazilian aviation market and have
offered to install a factory to build Fouga-Magister jet
trainers in Brazil. They are studying a proposal to
have the factory also produce a conventional airplane
of Brazilian design which would appeal to Brazilian
nationalism and improve the factory's economic pros-
pects. In addition, the Brazilian Air Ministry has
agreed to exchange 20 of its Paris MS-760 let trainers
for seven Fouga-Magister trainers.
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