WEEKLY SUMMARY

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16202179
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40
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October 23, 2023
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August 28, 2023
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F-2022-01252
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January 19, 1968
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Approved for Release: 2023/03/28 C03172633 DIRECTORATE DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY lercret, 4g 19 January 1968 No. 0003/68 (b)(3) Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 L) IVI. The WEEKLY SUMMARY, issued every Friday morning by the Office of Current Intelligence, reports and analyzes significant developments of the week through noon on Thursday. It fre- quently includes material coordinated with or prepared by the Office of Economic Research, the Office of Strategic Research,. and the Directorate of Science and Technology. Topics requir- ing more comprehensive treatment and therefore published sep- arately as Special Reports are listed in the contents pages. WARNING The WEEKLY SUMMARY contains classified information af- fecting the national security of the United States, within the meaning of Title 18, sections 793 and 794, of the US Code, as mended. Its transmission or revelation of its contents to or re- ceipt by an unauthorized person is prohibited by law. GROUP I Excluded from automatic downgrading and declassification LS-Trrft-F-T, Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 Now' CONTENTS (Information as of noon EST, 18 January 1968) Far East Page THE WEEK IN PERSPECTIVE 1 VIETNAM 3 Enemy aggressiveness has continued to increase during the first weeks of the year. The government in Sai- gon settled the electrical workers strike, but its heavy-handed tactics created widespread popular re- sentment. Hanoi, meanwhile, is trying to maintain the political initiative by stressing the favorable impact of its latest gesture on talks with the US. CAMBODIA'S SIHANOUK CLAIMS VICTORY IN TALKS WITH US Prince Sihanouk is taking a moderate line in the wake of his talks with Ambassador Bowles, but his determination to take meaningful steps toward limit- ing Vietnamese Communist use of Cambodian territory is far from certain. COMMUNISTS STEP UP MILITARY OFFENSIVE IN LAOS The Communists, maintaining pressure on government forces in northern Laos, have captured Nam Bac in the most significant success of their current dry- season offensive. FACTIONAL SPLITS DEEPEN IN COMMUNIST CHINA The factional fighting taking place throughout China continues to be ignored in Peking broadcasts but many provincial radio stations have begun to carry shrill denunciations of unnamed "chieftains" who are foment- ing the disorders. SINGAPORE AND MALAYSIA REACT TO BRITISH WITHDRAWAL PLAN Singapore and Malaysia are seriously concerned over the economic and military implications of Britain's accelerated withdrawal plans. 5 7 10 Page i WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 410 Europe THE WEEK IN PERSPECTIVE 11 HIGH-LEVEL SOVIET CONSULTATION IN EASTERN EUROPE Brezhnev, Kosygin, and Podgorny took an unusual although not unprecedented trip to Eastern Europe this week, visiting Warsaw and East Berlin; the presence of all three top leaders is evidence of the trip's importance. PARTY PURGE UNDER WAY IN YUGOSLAVIA The dismissal of 400 Belgrade city party members was the first step by supporters of Tito's reform program to eliminate their opponents in the party before its ninth congress convenes next December. US AND USSR REACH AGREEMENT ON NPT TEXT The new text--a result of 11th-hour US-Soviet nego- tiations and compromises--has been placed before the disarmament conference that reconvened in Gen- eva this week. Middle East - Africa 12 13 14 THE WEEK IN PERSPECTIVE 15 MAKARIOS SEEMS TO MODERATE STANCE ON CYPRUS DISPUTE The Cypriot President advised Greek Cypriots that enosis is unrealistic at present, and made concilia- tory references toward the Turkish minority, but this may only be an attempt to strengthen his role in any future settlement. GREEK REGIME TROUBLED BY DOMESTIC AND FOREIGN PROBLEMS Extremists within the junta are pressing Premier Papadopoulos for a less moderate attitude toward the exiled King and for a diplomatic confrontation with the country's allies over their failure to recognize the regime. ISRAEL TO REVAMP ITS NAVY Because of a longer coastline and the sinking of the Eilat, Israeli defense officials are reshaping naval strategy around two new submarines, amphibious land- ing craft, and missile-equipped patrol craft. 16 17 19 Page ii WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 N.,001 ARAB-ISRAELI IMPASSE CONTINUES No progress has been made in negotiating Arab-Israeli differences, and exchanges of fire continue along the Israeli-Jordanian border. IMPROVED PROSPECT FOR MODERATION IN CONGO (BRAZZAVILLE) Last week's cabinet shake-up was a significant gain for relatively moderate President Massamba, but there probably will be no early reduction in the govern- ment's strident anti-Americanism or in the large Com- munist presence. 19 21 CONGO (KINSHASA) BREAKS DIPLOMATIC RELATIONS WITH RWANDA 22 Although Congolese motives in breaking diplomatic relations with Rwanda remain unclear, the action may be a subtle attempt by Mobutu to disengage his regime from the problem of the mercenaries interned in Rwanda. POLITICAL UNREST RISING IN ZANZIBAR Economic stagnation and political tension are in- creasing after four years of Communist aid and advice and Zanzibari mismanagement. Western Hemisphere 23 THE WEEK IN PERSPECTIVE 25 SOVIET MILITARY AID TO CUBA CONTINUES AT HIGH LEVEL Despite the apparent friction between the two coun- tries, the USSR's military aid to Cuba has continued at the increased rate that began in the fall of 1966. HAVANA CULTURAL CONGRESS CLOSES The conference delegates endorsed all anti-US resolu- tions and applauded Fidel Castro's bitter attack on "US imperialism." 26 26 Page iii WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 161:proved for Release: 2023/03/28 C03172633 -Tiret!-R4LT_ ECUADOREAN PRESIDENTIAL CAMPAIGN FINALLY IGNITES The campaign for presidential elections on 2 June has been thrown into turmoil by ex-president Carlos Julio Arosemena's announcement that he supports the man he ousted from the presidency in 1961, Jose Maria Velasco. GUYANA-SURINAM BORDER TROUBLES FLARE UP The sudden rekindling of an old dispute is disrupting the usually tranquil relations between Guyana and Surinam. INCREASED VIOLENCE BREAKS OUT IN GUATEMALA Two US military officers were killed and two were wounded in an outbreak of Communist terrorism on 16 January that has caused the Guatemalan Government to declare a 30-day "state of alarm." Page iv WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 FAR EAST Hanoi's latest statement on talks with the US continues to dominate the political stage. North Vietnamese propaganda claims that Foreign Minister Trinh's statement of 30 December has become the "focus of world public opinion." Hanoi is trying to sustain the momentum of this political offensive by insisting that the ball is now in Washington's court and pointing out that the US so far has not responded to Trinh's ges- ture. In Saigon, President Thieu has attempted to counter Hanoi's move and to reassure South Vietnam- ese who have shown growing uneasiness over the possibility of unilateral US peace initiatives. In a major speech on 15 January, Thieu attempted to gain greater leverage on US decisions by in- sisting that South Vietnam should have the "cen- tral role" in any peace moves. Thieu also re- affirmed the right to pursue Communist forces if they continue to use staging areas in Cambodia. Sihanouk, meanwhile, has tried to represent his talks with Ambassador Bowles as an "enormous success" over "US hawks" advocating hot pursuit into Cambodia. He has emphasized the US pledge in the communique to do everything possible to avoid "acts of aggression" against Cambodia and has criticized Washington's move to set the record straight on the issue of hot pursuit. Although the Cambodians sent a formal request to the Inter- national Control Commission (ICC) that it strengthen its surveillance of the border, Sihanouk appears to have no illusions about the prospect of more effective ICC operations. Laotian Communist forces achieved their most significant success in the current dry-season fighting with the capture of the important govern- ment base at Nam Bac. Although this is a severe setback to government efforts to expand control in northern Laos, there are no signs that this ac- tion foreshadows a general Communist offensive. Page 1 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 THAILAND TonlA Sop DAD PHU PUN: GULF OF � SIAM N. � NORTH VIETNAM Rt. 9 Demilitarized Zone G TRI Hue eQUASH NAM C AMB OD1 PHNO PENH Bu Dop Special Forces,. Camp ././ ire Loc NiiTh Support Base Burt Ar Capltd. HIN/. LONG \ EN IANG Zone MEN MIEN PHONG\ 7 LONG likt L3 < ---,. PHONG DINH 'CFILIONG ' AN XUYEN BAC NH L an Tho -SATO IC N I-10A VINH S. BA XUYEN IV CORPS j-P-1741.10G TUY TH 1 CORPS QUANG TIN � QUANG NGAI KONT Kontum� _ Pletku. Itt.EtKu DAR LAC ng Ngat 3/NI-I DI PHU BON , *Ban Me Thuot HO, \ -.3UANG DUC \ l'I'VEN IA Da Lat. RANH L"JC cININH'�,��7 �--)'C'HUANr LAM GONG �") THUAN Nhon 11 CORPS BINH TLIY III CORPS �)r0A c\N SOUTH VIETNAM 100 MILES 693 -6 CI Zrri=41.prr, Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 Ng." -grel+g-T_ VIETNAM Military Situation In South Vietnam The tempo of Communist mil- itary activity in South Vietnam has increased markedly in the first weeks of 1968. The ac- tivity, moreover, has been wide- spread, with heavy pressure against both South Vietnamese and US units. This pressure has included mortar and rocket at- tacks--often followed by ground assaults--and increased ambushes of patrols and convoys. The increased enemy aggres- siveness is also reflected in key statistical indicators. Enemy personnel losses reportedly reached nearly 5,100 during the first two weeks of this year--a sharp increase over the 1,700-man weekly average for 1967. The number of attacks in the first weeks is already higher than any monthly total in nearly two years, with nine battalion-size Communist as- saults having occurred so far. Some of the heaviest fight- ing occurred in Quang Tri Prov- ince last weekend when a US Ma- rine convoy was ambushed while traveling along Route 9. Ameri- can casualties totaled 89 in the can casualties totaled 89 in the ensuing five-hour battle. Early in the week, main force subordinates of the Commu- nist B-3 Front in the highlands of II Corps staged two ambushes against US supply convoys. In addition, both B-3 Front elements and local force Viet Cong units launched numerous small-scale attacks. In South Vietnam's III Corps, there appears to be a dis- tinct chronological pattern in the enemy's current winter-spring campaign. The major attacks-- against Loc Ninh, Bu Dop, and fire-support base Burt--have oc- curred at approximately one- month intervals. If this pat- tern continues, coordinated at- tacks--spearheaded by elements of the Viet Cong 5th, 9th, or North Vietnamese 7th divisions-- could occur before the Tet holi- day that begins in late January. Hanoi Maintains Political Initiative The North Vietnamese seem determined to keep their "will talk" statement in the news and to maintain the impression that "Tch--t-R.V.Z Page 3 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 -S"TrAtik44-1. they have taken a significant initiative in trying to bring about negotiations with the US. On 16 January, Mai Van Bo, the DRV representative in Paris and and one of Hanoi's most authori- tative spokesmen, attempted to heighten world interest in the statement by commenting on the timing of talks as well as their possible substance. He said negotiations could start "after a suitable time" and indicated that both the level of talks and the agenda were negotiable. Although Hanoi officials have taken this line in private con- versations in the past, this is the first time they have dis- cussed it in public. Bo's phrase- ology, however, still carefully preserves considerable flexibility for Hanoi in deciding on the actual timing and substance of any contacts. Political Problems In Saigon On 15 January the govern- ment succeeded in wiring together a temporary settlement of the five-day-old electrical workers' strike, but not before its tac- tics had sparked widespread re- sentment from labor and criti- cism from informed Vietnamese. The government at first resisted the demands of the workers, ar- rested some of their leaders, and applied pressure for a re- turn to work. Walkouts by sym- pathetic workers in other fields, however, raised the threat of an extensive economic paralysis in Saigon and elsewhere, forcing the government to accede at least partially to demands for a pay increase. All workers returned to their jobs on 17 January. The six arrested leaders have since been released, but there is some possibility that at Least one will still have to face trial by a military court. Although the settlement will probably damp down labor agita- tion temporarily, the govern- ment's inept handling of the dispute impaired popular con- fidence in the regime. Some ele- ments of organized labor may now become more willing to make common cause with Buddhists, students, and other disaffected groups in pressing grievances against the government. Meanwhile, criticism of the government's do-nothing attitude toward the country's critical problems has continued. So far, however, President Thieu appears unmoved. Part of Thieu's difficulties spring from his continuing poor relations with Vice President Ky, but he is also clearly Page 4 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 Near' SreREI New unwilling to tangle with entrenched military circles unless or un- til he feels strong enough to outmaneuver potential enemies. For his part, Ky continues to disparage Thieu and to predict that the government will have to turn increasingly to himself for direction. In an effort to strengthen his image and to dispel a grow- ing uneasiness in Saigon that his government may be pressured into an unfavorable compromise with the Communists, President Thieu delivered a hard-hitting speech on 15 January reiterating his previous insistence that Sai- gon be a primary party in any negotiations with Hanoi. He also rejected any coalition with the National Liberation Front. Argu- ing forcefully that South Vietnam was a victim of North Vietnamese aggression, he declared that if Hanoi continued to reject reason- able proposals for a settlement of the war, military pressure should be increased. Meanwhile, the government appears to have scored a victory in the National Assembly, with the election on 17 January of Nguyen Ba Luong as the chairman of the Lower House. Luong's election appears to represent the first successful cooperative effort by that body's progov- ernment Democratic Bloc, of which he is the nominal head, and the predominantly Catholic Independ- ence Bloc. CAMBODIA'S SIHANOUK CLAIMS VICTORY IN TALKS WITH US Cambodian Chief of State Sihanouk was clearly pleased with the cordial atmosphere and the outcome of last week's discus- sions with Ambassador Bowles. His public statements por- traying the talks as an impor- tant victory for Cambodia are designed to support his boasts that his diplomatic skills would keep the war from spreading to Cambodia and are therefore in part designed for his domestic audience. Sihanouk apparently also believes, however, that the talks not only served their primary purpose of forestalling any immediate move across the Cambodian border by allied forces, but also provided some important political advantages for Phnom Penh. Page 5 WEEKLY SUMMARY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 6pproved for Release: 2023/03/28 C03172633 757teit-EZ,_ Sihanouk moved with alacrity, for example, in claiming pub- licly that the US had renounced the right of "hot pursuit" in the talks. He then quickly con- demned Washington's effort to set the record straight as double- dealing. Sihanouk also attempted to exploit statements in the joint communique that the US had no "intention to violate Cam- bodian territory" and will do "everything possible" to avoid "acts of aggression" if the US takes action against Communist troops in Cambodia. Therefore, without specifically disavowing them, he has now largely blunted the impact of his earlier public statements that Cambodia would not oppose US military activi- ties in certain "isolated" bor- der areas. Sihanouk's concessions to the US, at least as far as the public record goes, do not ap- pear to depart significantly from previously established po- sitions. Cambodia has again formally asked the International Control Commission (ICC) to strengthen its supervisory func- tions in Cambodia, but since Phnom Penh has made similar re- quests in the past, Sihanouk is under no illusion about the pros- pects for an effective ICC in the face of Soviet opposition. Sihanouk did go somewhat further than he has in the past in ad- mitting that the Communists use Cambodian territory, but he did so only by implication. At any rate, he undoubtedly viewed this as a small price to pay for the "assurances" he received from Ambassador Bowles. Sihanouk's public statement that Cambodia would be willing to send its troops or the ICC to areas where the US has infor- mation on Communist activity is a significant departure from his past refusal to cooperate directly with the US in any way on the sanctuary problem. It is not clear whether Sihanouk will carry through, however, and the joint communique-did not in- clude this provision. Sihanouk apparently views the Phnom Penh talks as more than a device to deal with an immediate problem. His efforts to get a satisfactory border dec- laration from the US in return for the re-establishment of dip- lomatic relations may not only reflect a desire to sign up the only important power that has not yet done so, but also a genuine effort to explore the possibility of improving rela- tions with the US. Phnom Penh expressed its willingness in the joint communiqudeto partici- pate in further meetings with the US. Sihanouk apparently has not changed his estimate that the Communists will ultimately pre- vail in South Vietnam, but he has not lost sight of the short- term advantages of an opening to the west. His disparaging refer- ences to Hanoi and Peking over the past week indicate once again that he draws little comfort from their "support" in meeting Cambodia's principal objective of keeping the war from its ter- ritory. Page 6 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 7irt*E42 COMMUNISTS STEP UP MILITARY OFFENSIVE IN LAOS The Communists are maintain- ing pressure on government forces in north Laos. The capture of Nam Bac is the most significant success in their current dry- season offensive. The collapse of this impor- tant government position culmi- nated a ten-month Communist cam- paign to reoccupy an area they had controlled for nearly ten years before losing it in August 1966. The local commander ordered evacuation of the defense perim- eter in the face of well-coordi- nated enemy thrusts. The govern- ment is now attempting to rally its forces along a new defensive line 20 miles to the south. There are no reports as yet of casual- ties resulting from the engage- ment. The Communists also have shelled the Luang Prabang Air- field, 60 miles south of Nam Bac, probably hoping to forestall air support for the beleagured govern- ment forces to the north. The Communists have continued to har- ass this important staging base, but there is no indication that they intend to enlarge their ef- forts and attack the town itself. The loss of Nam Bac is more a reflection of the lack of deci- sive leadership within the Royal Army than an indication that the Communists have embarked on a larger offensive role in Laos. Although the defeat is a severe blow to government plans to ex- pand its control in the area, it will not, by itself, greatly alter the strategic situation in north- ern Laos. The debacle may have a longer range effect on the hard- won confidence and increased capability that the armed forces have acquired in recent years. In addition, the loss of Nam Bac will almost certainly have some political repercussions in Vien- tiane. This may precipitate a new round of political maneuver- ing within the army's top command, since commander in chief General Ouan Rathikoun was closely asso- ciated with the Nam Bac operation. BURMA Nam Baca Luang �Prabang LAOS Vlen lane THAILAND Bangkok 69350 1-68 CIA Statutila Miles CHINA -100* togia441.� NORTH VIETNAM noP CAMBODIA 2r EOLITH VIETNAM Page 7 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 46pproved for Release: 2023/03/28 C03172633 The most unique aspect of the current enemy military push in northern Laos was the unprece- dented aerial attack carried out by four North Vietnamese light transport aircraft (AN-2s) on 12 January against the important government outpost at Phou Pha Thi, close to the North Vietnam- ese border. Phou Pha Thi has long been a thorn in the side of the Com- munists because it provides an advanced staging base for friendly guerrilla operations The base is on a high plateau, and would be a difficult target for a ground assault. Two of the North Vietnamese air- craft were downed in the raid, however, while negligible damage was done to the base. It is thus likely that Hanoi may conclude that the use of such slow, vul- nerable planes in an attack role is not worth the expenditure of men and machines. FACTIONAL SPLITS DEEPEN IN COMMUNIST CHINA Although the factional fight- ing taking place throughout China continues to be ignored by Peking propaganda media, provincial radio stations have begun to broadcast shrill denunciations of factional "chieftains" who are said to be fomenting the dis- order and to be engaging in other "criminal" activities. Nowhere are opposition leaders identified, but the description of them makes it clear that they are at the head of powerful, militant "revo- lutionary" organizations. The charges leveled against these militant Maoists are simi- lar in each province, suggesting that the effort to discredit them is coordinated. Presumably, a major aim of these broadcasts is to put pressure on Peking to stop equivocating, give unqualified support to local leaders, and re- pudiate the radicals. Thus far, however, leaders in Peking--ap- parently sharply divided--have been unwilling to do this. There are no signs, either, that pro- vincial leaders are following through on their broadcast threats to "smash" their opponents if they do not mend their ways. The nationally prominent Shanghai newspaper, Wen Hui Pao, has been especially outspoken�In � Page 8 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 '44,0e Tyrol -grtii-gT� its denunciation of "factional- ism." The fact that the head of the Shanghai Revolutionary Com- mittee concurrently holds a senior position in Peking lends authority to the Shanghai media. Although Wen Hui Pao promoted the Cultural Revolution during its early phases, in recent months it has been a strong proponent of a moderate line on rebuilding the party apparatus and restor- ing political stability. On 10 January, Wen Hui Pao and two other Shanghai�Papers jointly published a detailed account of "civil wars" said to be currently sweeping Kiangsu, Chekiang, and Anhwei provinces. The chief instigators were said to be former party officials who now call themselves "veteran revolutionaries," a description implying that they are regarded as turncoats who have joined the ultraleftists to save them- selves. The account admitted that these opposition leaders have had considerable success in recruiting and arming followers, and said they had made an un- successful bid to "occupy" south- ern Kiangsu and take over the Shanghai-Nanking railroad. On 12 January, Wen Hui Pao published a hard-hitting editorial listing the "ten big crimes of factionalism." Unlike complaints broadcast by other provinces, this made no reference to local conditions and gave the impres- sion it was dealing with a naticin- wide problem. At several points, Wen Hui Pao indicated it was de- nouncing leaders who currently hold responsible positions. It said that one "crime" of "fac- tionalists" is to be affable and agreeable in public, while engag- ing in "vicious backstabbing" in private. This is probably a fair de- scription of the situation in Pe- king, where top leaders often ap- pear together in public, seem- ingly in accord. There are re- current rumors in Peking, how- ever, of a falling out between the militant leaders Lin Piao and Chen Po-ta, and of rivalry between Premier Chou En-lai and the radical Kang Sheng. Page 9 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 06pproved for Release: 2023/03/28 C03172633 SINGAPORE AND MALAYSIA REACT TO BRITISH WITHDRAWAL PLAN Singapore and Malaysia, sup- ported by Australia and New Zealand, have reacted sharply to Britain's decision to withdraw all its military forces from Southeast Asia by the end of 1971. Singapore has been particu- larly outspoken in its opposi- tion to the accelerated with- drawal plan, charging British perfidy and, in desperation, even threatening economic reprisals. Prime Minister Lee Kuan Yew flew to London in an unsuccessful, last-minute effort to delay the withdrawal until 1973, the mini- mum time he believes is required for Singapore to make the neces- sary adjustments. Lee's alarm is prompted both by the economic impact of the UK withdrawal and its security implications for Singapore. The British military facilities on the island account for an esti- mated 20 percent of the national income and employ about 40,000 workers. Moreover, Lee recognizes that financial resources needed for industrial development will have to be diverted to meet added defense requirements. Singapore officials reportedly foresee a rapid build-up of Singapore's armed forces, now restricted to a 3,500-man army and several paramilitary organizations, and the development of a limited air and naval capability. Malaysian leaders privately expressed keen dismay and disap- pointment with London, but have made restrained public statements and chided Lee for his emotional response, which they regard as an exercise in futility. The UK de- cision is viewed as a virtual ab- rogation of the Anglo-Malayan Mu- tual Security Agreement of 1957; the Malaysians are especially up- set at being left without signifi- cant air and sea defenses. They are also concerned at the impact of British withdrawal on their ability to contain Communist sub- version, particularly in rural East Malaysia, where the Peking- oriented Sarawak Communist Organi- zation is active among the local Chinese population. Although the withdrawal will create some un- employment, the economic impact will be much less severe than in neighboring Singapore. Leaders of Australia and New Zealand gave strong moral support to Lee but declined to join in a representation to London and ap- peared resigned to the revised British timetable. They agree with Lee and Malaysian Prime Min- ister Rahman that the longer term security of Malaysia and Singa- pore requires some regional de- fensive agreement among the four countries. Neither Canberra nor Wellington, however, is prepared to increase substantially its de- fense commitment in the area. For the present, both countries will probably maintain their limited military presence and will re- luctantly make some small augmen- tations after the British pull out. (b)(3) Page 10 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 'iwowe "SIMeRILT EUROPE The USSR's three ranking leaders last week flew first to Warsaw and then to East Berlin for talks with their Polish and East German counterparts. The visits clearly were more than routine. The leaders of the three Communist states undoubtedly had the recent political changes in Czechoslovakia much in mind. The Russians may also have wanted to recon- noiter the situation within the Polish leadership itself, which has lately been the subject of specu- lation in the Warsaw rumor market. The Soviet leaders, now back in Moscow, will be preparing for a meeting of the party central commit- tee, reportedly scheduled to begin on 25 January. Reactions in Eastern Europe to the political changes in Prague have been guarded. The East Ger- man press has been curt to the point of rudeness, probably reflecting concern at high levels. Bul- garian media have not dwelled on Prague's new divi- sion of responsibility between the top party and government posts, Zhivkov being one of the two re- maining Eastern European leaders who hold both. Yugoslav commentary has had an "I told you so" flavor, and the Rumanians seem to recognize that their endorsement at this time would not be benefi- cial. The US and the USSR reached agreement on a new draft of a nonproliferation treaty in time for the reopening this week of the disarmament conference in Geneva. The heavy budget cuts that Prime Minister Wilson announced to Parliament fell hardest on defense spending, but did not spare such sacred socialist programs as free medical prescriptions, education, and housing. With a time lag in their impact and without more restraints on consumer spending, even these Draconian measures may not be enough to solve Britain's balance of payments problem. Page 11 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 4pproved for Release: 2023/03/28 C03172631 7Tm-R-gx_ HIGH-LEVEL SOVIET CONSULTATION IN EASTERN EUROPE Brezhnev, Kosygin, and Pod- gorny took an unusual although not unprecedented trip to Eastern Europe this week, visiting both Warsaw and East Berlin. That all three top leaders made the trip is evidence of its importance. The visits fit a pattern of close consultations between the three northernmost Communist states on European developments of special interest to them. In this instance, it was most prob- ably related to the potential impact of the political changes in Czechoslovakia. The East Ger- mans in particular would De anx- ious lest these changes lead to better relations between Czecho- slovakia and West Germany. The changes in Prague could also have made Moscow uneasy about Warsaw, where there has been a spate of rumors of a possible shake-up in Lhe offing. Relations with Bonn almost certainly figured in the consul- tations in each capital. Soviet charges earlier this month of the Federal Republic's encroach- ments in West Berlin may have been a related development in- tended to reassure the East Ger- mans and Poles that Moscow was protecting their interests vis- a-vis Bonn. Moscow's views on the alleged FRG encroachments in West Berlin may have been re- iterated on 18 January when West Berlin's mayor met in East Ber- lin with the Soviet ambassador to East Germany. There were tenuous indica- tions that the Soviet leaders postponed other business in order to make the trip. In any event, the fact that the three top men decided to go together left the impression that, whatever the Soviets learned and whatever ad- vice they dispensed, they be- lieved it expedient to have each member of the troika equally en- gaged. (b)(3) Page 12 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 law *NW PARTY PURGE UNDER WAY IN YUGOSLAVIA The dismissal of 400 Bel- grade city party members was the first step by supporters of Tito's reform program to eliminate their opponents in the party before its ninth congress convenes next De- cember. These expulsions, announced by the Belgrade press on 13 Janu- ary, and others that will follow, are intended to rid the party organization of conservative ex- partisans and minor bureaucrats who have opposed political and economic reforms. President Tito's call for a cleansing of the party in a television inter- view on 29 December seems to have been the signal for action. The regime's leaders appar- ently intend to replace those ousted with younger, more liber- ally inclined party members. These changes, along with a planned reorganization of the local party bodies will enable the regime to pack both the re- public and national party con- gresses later this year with sup- porters of its reforms. The purge was begun in Ser- bia because of the turmoil in the party there since vice president Rankovic was removed in 1966. His political demise left the large conservative wing of the party leaderless, but his sup- porters have been able by their inaction to obstruct progress on the reforms. The result has been a widening gap between the top Serbian officials and the rank and file, with growing apathy and confusion. In an attempt to reverse this trend, the regime has taken the unprecedented step of appoint- ing a Montenegrin, Veljko Vlahovic, to head the Belgrade city party organization. The regime expects Vlahovic, a member of the party's policy-making presidium, to pro- vide the firm direction that has been lacking since Rankovic's fall: The purge, which probably will be gradual and without many arrests, will aggravate Yugo- slavia's difficult nationality problem. With the liberals al- ready in control in the republics of Croatia, Slovenia, and Mace- donia, Serbia is the major re- maining arena of conservative- liberal factionalism. Many Ser- bian party members fear their careers will be damaged and Ser- bia's economic interests and national influence harmed. Some extreme liberals may also be purged. This would fit in with Tito's penchant for bal- ancing between the two party ex- tremes. Tito will be careful to keep the purge under control and the party responsive to his lead- ership, however, and any major changes in its leading bodies-- the presidium and the executive and central committees--probably will await the December congress. _ (b)(3) Page 13 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 44kkproved for Release: 2023/03/28 C03172633 -317.1E-R4j: US AND USSR REACH AGREEMENT ON NPT TEXT The US and USSR, after 11th-- hour negotiations in Geneva, placed a nonproliferation treaty text before the disarmament con- ference that reconvened there this week. Agreement on the draft came after Moscow accepted the US version of Article III-- on safeguards--the main sticking point and a provision left blank in earlier drafts. The Soviets had previously insisted, against US wishes, that Article III should provide for the applica- tion of only International Atomic Energy Agency (IAEA) safeguards to nonnuclear states. If the Soviets had held to this position, an arrangement that would allow IAEA to work out a mutually acceptable safeguards system with EURATOM would have been ruled out. The joint draft represents several other US-Soviet compro- mises, including agreement reached this week on provisions cover- ing the duration of the treaty (25 years, after which a confer- ence will decide its future) and the method for amending it (by a majority of its signers, which must include those who have nu- clear weapons now and countries represented on the IAEA board of governors at the time of amend- ment). Additional concessions probably will be sought by some of the nonnuclear states at Geneva, but a majority of the delegates at the conference is expected to approve submission of the document to the UN Gen- eral Assembly in March. Page 14 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 vms#4 --ST641.-ELF MIDDLE EAST - AFRICA Some problems in the area were reduced to peace- ful political maneuvering for influence on future policy, but elsewhere new tensions appeared and the Arab-Israeli dispute continued to be volatile. Extremists within the Greek junta are pressing Premier Papadopoulos to adopt a less conciliatory attitude toward the exiled King and toward certain domestic issues, and they are growing impatient with the failure of their NATO allies to grant diplomatic recognition to the regime. Cypriot President Makarios assumed a new, more moderate posture toward a settlement with the is- land's Turkish minority, but the move may be only an attempt to strengthen his role in any future initi- atives on the problem which the US and others are considering. Kinshasa's break in relations with neighboring Rwanda may have been a ploy by President Mobutu to extricate himself from his insistence that Rwanda return the white mercenaries to the Congo for trial. This could open the way to get them out of Africa and back to Europe. Arab-Israeli negotiations remain stymied on the issue of direct talks between the belligerents, and recently increased terrorism may well lead to further Israeli retaliation against Jordan. In Iraq, student demonstrations at the University of Baghdad broke out again, reportedly causing some deaths. General discontent has been growing in the country since the Arab-Israeli war because of the gov- ernment's attitudes. The prime minister tried to placate the students by announcing that some of their demands had been met and others were being studied; no students were under detention. A coup rumor in Ceylon, which was started by the opposition party, set off a chain of events that have seriously strained the never-ideal relations be- tween Prime Minister Senanayake and his invaluable as- sociate, Minister of State Javewardene. Page 15 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 ,0Approved for Release: 2023/03/28 C03172633 A-mm -TM-4422_ MAKARIOS SEEMS TO MODERATE STANCE ON CYPRUS DISPUTE President Makarios' sudden decision to stand for re-election next month brought with it a departure from his public stance on the Cyprus problem. In addi- tion to seeking a new mandate from the Greek Cypriot commu- nity, the President seemed to be advising them that enosis-- union with Greece--is unreal- istic at present, although still a desirable objective. In apparently conciliatory gestures toward the Turkish minority on the island, he re- ferred for the first time to the "Turkish community" rather than to the "Cypriot minority" and spoke of new guarantees for it. He also seemed to be open- ing the door for possible direct talks between the leaders of the island's two ethnic commu- nities. Reaction from Ankara and the Turkish Cypriots so far has been mild. Both express some concern over the question of elections, but neither presum- ably will object strongly if voting is administered under the present constitution which pre- scribes separate communal elec- tions. This appears to be Ma- karios' intention. Although his action can be interpreted as a step toward eventual resolution of the prob- lem, Makarios' motives are un- clear. Aware that the UN, the US, and others are considering new initiatives, he probably is trying to strengthen his role in any settlement. Meanwhile, the withdrawal of the Greek "illegal" troops has continued. Another 2,200 troops departed on 16 January, bringing the total withdrawn to about 7,000--still consider- ably below the 12,000 that Ankara insists were on the island. (b)(3) Page 16 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 iftepr GREEK REGIME TROUBLED BY DOMESTIC AND FOREIGN PROBLEMS Premier Papadopoulos appears to be under increasing pressure from junta extremists because of his "conciliatory" attitude to- ward King Constantine and what some of them see as his "fawning" for Western support. Papadopou- los views the intrajunta strug- gle with concern, but is confi- dent that he can put down the younger officers either by mak- ing those who want to stay in their ministerial posts resign their commissions, or by return- ing them to powerless positions in the military. King Constantine 's abortive countercoup last December and his subsequent departure from Greece are still troubling the junta's already cool relations with the country's allies. The King's absence complicates rec- ognition of a government whose head of state is in exile. The junta is obviously sensitive to this situation, but so far has avoided a diplomatic confronta- tion over the question. Some re- ports, however, state that Papadopoulos may be forced to adopt a more "independent" stance if relations with Greece's friends are not formalized soon. Most of the criticism appears to be focused on the US. King Constantine's future still is very much in doubt. The junta apparently wants him to stay in exile at least until af- ter the planned referendum on the new constitution. Regime spokes- men indicate that the referendum will be held by 15 September 1968. No definite date has been an- nounced yet for possible general elections. The draft constitution as it now stands shows little basic change from the 1952 version, which was suspended after the coup in April 1967. The King's power is downgraded somewhat, a new constitutional court has been proposed, and freedom of the press, assembly, association, and other civil rights are more strictly defined. The power of the executive was not strength- ened to the degree expected by some observers. Members of the government presently are comment- ing on the draft. Andreas Papandreou, the re- gime's most prominent detainee before his release on Christmas eve, is now in Europe. The junta did not oppose his departure from Greece, probably hoping to undercut foreign criticism of his detention. Page 17 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 �LTL�444.1:/ Approved for Release: 2023/03/28 C03172633 %IF f NAVAL DEPLOYMENT t 0 0 Craft Craft - Naval base Naval facility Inventory Israeli Arab Area occupied by Israel 6 Destroyers 13 Submarines 5 Patrol Escorts 8 Guided Missile Patrol Boats 12 Past Guided Missile Patrol Boats 22-27 Torpedo Patrol Boats 5 Fast Patrol Boats 12 Submarine. Chasers 6 Fleet Minesweepers 2 Medium. Minesweepers 5 Auxiliaries 10 Service Craft 7 Utility Landing Craft UNITED 50 immiiimposomommim Nautical Miles CAIRO Said, CYPRUS 15 Torpedo Patrol 6 Guided Missile Patrol Boats 2 Submarine Chasers 2 Small Patrol Craft 2 Fleet Minesweepers 1 Destroyer 5 Submarines 1 Patrol Escort 1 Submarine Chaser 6 Torpedo Patrol Boats 2 Mechanized Landing Craft 6 Utility Landing Craft 1 Utility Boat Elicit position ,21 October 1967 /Gaza 4; -1 1.1& V/GAZA STRIP At Mina at Bayda Latakia LEBANON {1./BEiRUT �DAMASCUS r 7"- - - Haifa r \ =TLJ t t Tel Aviv- t Yafo As 'clod A"'�-� Jerusalem Al Qantara Th 1 Icy \fA�Ve Adabiya Port Taufiq Al Arish ISRAEL 1 Tor edo Patrol Boats echanizedLanslg 'CDR Hurghada Ellat SYRIA *AMMAN JORDAN Aqaba SAUDI ARABIA - Sharm ash-Sliaykh ATV ,SEA IRAQ 12 Torpedo Patr_ol Bpats 3 Submarine Chasers �4� River Gunboats 7 Service Craft (b)(3) 69322 1-68 CIA -Sreft-E-T_ Approved for Release: 2023/03/28 003172633 Approved for Release: 2023/03/28 C03172633 Nair/ "s'refkLya.: ISRAEL TO REVAMP ITS NAVY Israeli defense officials are rethinking Israel's naval strategy in the light of the longer coastline seized in the June war and the sinking of the destroyer Eilat. Israel's pres- ent inventory of ships is poorly suited to patrol the areas now requiring defense against Arab infiltrators and to counter the threat of coast bombardment. The sinking of the Eilat, the fleet flagship, by Egyptian Komar-class guided missile patrol boats demonstrated the Israeli Navy's inappropriate equipment and inferior capabilities. Israel already has received one of the six or seven patrol boats being built in France. These boats are being armed with the Israeli-developed Gabriel surface-to-surface missile hav- ing a range of up to 20 kilo- meters. rhey are about 150 feet long, have a cruising range of 1,300 kilometers, and a top speed claimed to be 45 knots. They carry a crew of 20. Addi- tional armament includes two 21- inch torpedo tubes and 40-mm. antiaircraft guns. The Israeli patrol boat does not appear to be as formidable a weapon system as the Soviet Komar- Styx system. On the other hand, the Israelis have demonstrated that through training and tactics they can obtain maximum effective- ness from their equipment, and this system will enhance their capabilities. By the spring of 1968, Is- raeli naval strength will center around two T-class submarines recently acquired from the UK, a nucleus of modern amphibious landing craft, and the new mis- sile-equipped patrol craft. ARAB-ISRAELI IMPASSE CONTINUES No progress has been made in negotiating Arab-Israeli dif- ferences, and exchanges of fire continue along the Israeli-Jor- danian border. Arab leaders are more deeply depressed absence of "progress" becoming over the in nego- tiation of Arab-Israeli issues. UN special representative Gun- nar Jarring so far has listened to each side state its maximum positions, but has offered no proposals of his own. This is especially frustrating to the Arabs, who continue to maintain that direct talks are impossible -greft_UT._ Page 19 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 S and hope to work through Jarring. The Israelis, on the other hand, contend that direct talks are the key to peace. The Arabs still assert that Israel's withdrawal from the oc- cupied territory is the essential issue, but they now may be will- ing to modify their insistence that a complete withdrawal take precedence over other questions. The Jordanians may suggest to Jarring that if the Israelis would withdraw from the West Bank, Jordan would agree to main- tain the area as a demilitarized zone until final agreements are reached. Israel, however, almost certainly would reject such a proposal. Meanwhile, exchanges of fire continue between Israeli and Jor- danian forces along the cease-fire line. Eventually the Israelis probably will feel compelled to undertake reprisal raids. Each side claims that the other began any particular exchange, but the Israelis may have initiated at least some of the recent exchanges in reprisal for the spate of ter- rorist infiltrations into the West Bank and Israel proper. In an exchange on 8 January, the Is- raelis demonstrated again that they will escalate to the use of aircraft when they cannot hit their targets with artillery. In addition, terrorists are operating at a rate of more than one strike per day. The terror- ists' target area evidently now includes southern Israel. Since the new year began, there have been a number of incidents south of the Dead Sea--the most seri- ous on 13 January when an oil tank near the Israeli port of Eilat was set afire. On 15 January, the Israelis brought the border situation to the attention of the UN Security Council. They are presumably building a record to justify counteraction. 7gErN44:1: Page 20 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 -STC-Rgi IMPROVED PROSPECT FOR MODERATION IN CONGO (BRAllAVILLE) Last week's cabinet shake-up in Brazzaville was a significant gain for relatively moderate Pres- ident Massamba-Debat, who has worked with growing force and determination to keep the Congo on a course acceptable to France, the country's largest aid donor. Massamba's accelerated drive against extremism has been evi- dent since last April, when he publicly ridiculed demands for nationalization of the economy. He has since urged the people to accept hard work and discipline in place of the class struggle demanded by the extremist press. Last July, he was able to head off a party congress he could not control and also replaced the extremist who headed the party's youth organization. The most important change in the cabinet was the ouster of Prime Minister Noumazalay, who came to power in May 1966 during a period of extremist ascendancy. His departure and the assumption of his functions by Massamba is a blow to those elements of the Congo's confused political struc- ture that have clamored for in- stant socialism. Another major change was the replacement of Agriculture Minister Da Costa once thought to be a moderate but recently reported to be a ma- jor figure among the extremists. The five new cabinet mem- bers appear to be either per- sonal supporters of Massamba and his pro-French policies or tech- nicians. Lt. Poignet, now in charge of the Defense Minis- try under Massamba's aegis, has been rated as a capable officer and a strong francophile. His appointment could signal an en- hanced status for the regular mil- itary forces at the expense of the heretofore favored paramili- tary groups that are dominated by the country's most extremist elements. The changes probably do not portend an early moderation of the radical regime's strident anti-Americanism. The new in- terior minister, Michel Bindi, a relative of Massamba, was personally re- sponsible for a series of inci- dents in 1965 that involved har- assment of US officials and led to the closure of the US Embassy. In addition, there is no reason to believe that the changes will result in any early reduction of the large Communist presence in Brazzaville, although the influ- ence of the Chinese, who had close contacts with Noumazalay, may decline somewhat. The reaction of the extrem- ists, who still predominate in the political bureau of the Page 21 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 gitim ANIFFINIC, regime's single party, may take any number of forms, including direct attempts to oust Massamba. Massamba took the initiative this week, however, by publicly de- nouncing radical youth elements and "power hungry" administrators and politicians who he said wanted to overthrow his govern- ment. CONGO (KINSHASA) BREAKS DIPLOMATIC RELATIONS WITH RWANDA The reasoning behind Kin- shasa's decision last week to break diplomatic relations with Rwanda remains unclear. Mobutu may have acted to rid himself G DEMOCRATIC REPUBLIC OF THE CONGO 0 HILES 100 Er r -9 69329 1-68 UGANDA of responsibility for the Euro- pean mercenaries who have been in Rwanda since early November and thus give Rwanda the free- dom to repatriate them. The first hints that Mobutu was backing down from his demand that the mercenaries be extra- dited to the Congo were heard in early January. There were rumors Mobutu was weary of the mercenary problem and was anxious to find a face-saving way out. These rumors were confirmed when, on 9 January, Mobutu said to the US ambassador that he was recommend- ing to the head of the OAU spe- cial subcommittee on mercenaries that most of the mercenaries be permitted to depart for Europe. This conciliatory mood was not reflected in the government's Page 22 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 Nwor,' SEC-R-E.T_ public pronouncements, which sud- denly became sharply condemnatory of Rwanda. Mobutu, however, seems more interested in disengaging himself from the controversy be- hind a screen of vituperation than in actually punishing Rwanda. For instance, he said that the Congo refused to recognize Rwanda's existence and that the mercen- aries are no longer a Congolese problem. This broad hint--which Rwanda may eventually pick up-- suggests that if Rwanda acts unilaterally to repatriate the mercenaries, the Congo will not interfere. Good relations between the Congo and Rwanda in the past have been advantageous to both coun- tries, but they can manage in- dependently. Each country can harass the other in minor ways that could make life more diffi- cult for those living in the border area. The Congolese, for example, could shut off the electricity for the Rwandan village of Cyangugu. In retal- iation, Rwanda could deny the Congolese town of Goma access to potable water and electricity. Additionally, there are many Rwandan Tutsi exiles in refugee camps on the Congolese side of the border. If Congolese au- thorities were to grant permis- sion, these refugee groups could cause some border scuffles, although their military threat to Rwanda is marginal. POLITICAL UNREST RISING IN ZANZIBAR The Zanzibar region of Tan- zania faces economic stagnation and unprecedented political un- rest following four years of Com- munist aid and economic advice. If the situation continues to deteriorate, the mainland Tan- zanian Government may have to intervene more strongly than it has in the past. The main causes of public grievance are long queues at food shops, rising prices despite gov- ernment controls, and acute short- ages of sugar, flour, meat, and tea. Unrest has been further stimulated in rural areas by heavy-handed implementation of land distribution, resettlement, and forced-labor schemes. Page 23 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 e-Ruz Zanzibaris increasingly blame the island's president, Abeid Karume, for the chaotic state of retail trade and rising unemployment. The state shops, which replaced those confiscated from Asian traders, offer no credit and have not brought lower prices as promised. The state corporation that controls all import trade has lost a million dollars in the past three years through corruption and gross mis- management. Since 1 December when Zanzibar reluctantly joined the East African Community, dis- agreement over import procedures has kept the custom house closed, with piles of goods awaiting clearance. The regime's efforts to make scapegoats out of Asian merchants and corrupt officials are no longer effective, and sub rosa criticism has taken an increasingly political turn. The ruling Revolutionary Coun- cil (REVCO), which has never sought a formal mandate, now is facing demands for elections. Karume has reacted to this dissidence by tightening secu- rity and railing about "plotters" who are sabotaging the economy. For the first time, his sus- picions are clearly directed against Africans rather than Arabs and Asians on the island. Although arbitrary arrests and dismissals from government posts have fanned rumors of a conspir- acy to overthrow the regime, it seems more probable that the cur- rent chaos will produce either a shift in the balance of power within REVCO or direct interven- tion by Tanzanian President Nyerere. Heretofore, army support and Karume's popularity with the Af- ricans have enabled him to bal- ance the various factions within REVCO. His grip is obviously slipping, however, and last month he had a falling out with the army commander over a divi- sion of the spoils. Although virtually every REVCO member is in the pay of one or more Commu- nist countries, any internal power shift would probably bene- fit the Chinese. Over the past year, their influence has con- tinued to grow at the expense of the East Germans and Soviets. The mainland government has been gradually asserting more control over recalcitrant Zanzi- bar's foreign relations and mil- tary forces, but Nyerere always has been reluctant to intervene in the island's internal affairs. He is becoming increasingly critical of Karume's leadership, however, and the island popula- tion, in a marked reversal of attitude toward the union, is looking to Nyerere for a solu- tion. Page 24 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 WESTERN HEMISPHERE Political campaigning is beginning to take the spotlight in some of the seven Latin American countries holding national elections this year. In Panama's bitter presidential contest, government-backed candidate David Samudio has begun a mud-slinging propaganda campaign to por- tray his opponent, Arnulfo Arias, as racist and totalitarian. So far, Arias' statements have been more moderate than Samudio's. In Ecuador, the surprising reconciliation be- tween ex-presidents Jose Maria Velasco and Carlos Julio Arosemena has raised talk of an anti-Velasco alliance behind conservative-backed ex-president Camilo Ponce. Lack of strong politi- cal organizations will tend to make the election a personal confrontation between the country's traditional strong men, Velasco and Ponce. The legislative election campaign in El Salvador officially opened amid a flurry of coali- tion rumors. Continuing diplomatic maneuvering in the three-way race for secretary general of the Or- ganization of American States (OAS) has not im- proved the prospects for a solution of the im- passe. The polemical speech of Panamanian candi- date Ritter before the council on 8 January may have undermined his chances and somewhat enhanced those of the Venezuelan contender. Support for the Ecuadorean, Gala Plaza, appears far short of the needed majority. Because of the nationalistic resentments arising from the embittered campaign, it is ques- tionable whether any of the three present contend- ers could cultivate the strong support necessary for effective leadership. Furthermore, the elec- tion of yet another South American to the post could create frustrations in Central America, Panama, and Mexico that might a within the OAS. Page 25 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 003172633 Approved for Release: 2023/03/28 C03172633 Am, SOVIET MILITARY AID TO CUBA CONTINUES AT HIGH LEVEL Despite the apparent fric- tion between the two countries, the USSR's military aid to Cuba has continued at the increased rate that began in the fall of 1966. The equipment has enabled Cuba to modernize and expand its military inventories as well as to replace worn out and destroyed materiel. It has not, however, provided Cuba with an offensive capability. Two Soviet freighters, the Khimik Zelinskij and the Fred- erick Zhilio Kyuri, which re- cently arrived in Cuba, appear to be carrying military cargoes. These would be the first in 1968 and would bring to 30 the number of military deliveries since September 1966. This equipment is being de- livered under an arms agreement probably concluded in the spring of 1966 that apparently covered anticipated Cuban armed forces needs into the late 1960s. Just before the Cuban mis- sile crisis of October, 1962, massive shipments of Soviet mili- tary equipment--some 250,000 tons aboard 125 ships--arrived in Cuba. These deliveries in- cluded the bomber aircraft and offensive missiles that were re- moved when Soviet forces with- drew. They also included large stocks of spare parts, mainte- nance equipment, and ammunition that were used to meet Cuban needs up to late 1966. From January 1963 through mid-Septem- ber 1966 small amounts of addi- tional military equipment were delivered. Since the departure of their military forces from Cuba in 1963, the Soviets have maintained an estimated 2,000 military advisers, technicians, and maintenance per- sonnel in Cuba. HAVANA CULTURAL CONGRESS CLOSES The Cuban hosts stage-man- world, were entertained in the aged last week's Cultural Con- best Cuban tradition and prob- gress in Havana with the smooth- ably left the island with new ness of a well-tooled publicity admiration for the achievements machine. The "intellectuals," of the Cuban revolution. who gathered from around the / Nr Page 26 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 (b (b T` Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 vmpl* As expected, the delegates adopted all Cuban-sponsored reso- lutions. Some disagreement was voiced by less militant delegates on the applicability of "armed struggle" to the liberation of artistic and creative work in the underdeveloped world. The Cuban line prevailed, however, and "an armed revolutionary proc- ess which meets the exploiter's violence with the revolutionary action of the exploited" was en- dorsed as the only method to achieve true "national libera- tion." Ernesto "Che" Guevara was cited as the personification of revolutionary leadership in the nonliberated nations." Intel- lectuals were asked to turn down invitations and scholarships of- fered by "imperialist agencies." Scientists were requested to ab- stain from participation in re- search aimed at "imperialist genocide." All mass communica- tions media were urged to con-- demn "US aggression" and to de- nounce the US economic and cul- tural blockade of Cuba. Castro underscored the con- ference resolutions during his closing speech. He bitterly compared the "Yankee imperial- ist policy" with the "acts of barbarity of the Nazis." He expressed special annoyance with the US economic denial pro- gram, and said that the US is "sabotaging" Cuban efforts to make trade deals in Western Europe. He also launched a rather lengthy personal attack on Secretary Rusk, calling him an "imperialist gray eminence." Responding to Bolivia's well-publicized "offer" to ex- change Regis Debray for Huber Matos, a high-ranking Cuban political prisoner, Castro said that Debray, because of his courage and spirit, would never agree to such an exchange. Castro's reluctance to accept the "offer," however, may re- sult from a personal belief that Debray, by his conduct after being captured, may have been partly responsible for Guevara's death and the guerrillas' an- nihilation. Consequently, his offer to trade 100 Cuban polit- ical prisoners for Guevara's corpse--which Bolivia has already rejected--suggests that Castro prefers to let Debray stay in a Bolivian jail. Finally, returning to his theme of last summer, Castro made some stinging remarks about Com- munists who are lacking in revo- lutionary vigor. He implied that Marxism as a revolutionary doctrine needs to be revamped and "conduct itself like a revo- lutionary force; not like a pseudo- revolutionary church." Undoubt- edly referring to the pro-Moscow parties in Latin America, Castro said that those not supporting the doctrine of "armed struggle" are in the "rear guard in the struggle against imberialiqm." (b)(3) Page 28 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 No? yore ECUADOREAN PRESIDENTIAL CAMPAIGN FINALLY IGNITES The campaign for presiden- tial elections on 2 June has been thrown into turmoil by ex-presi- dent Carlos Julio Arosemena's an- nouncement that he supports the man he ousted from the presidency in 1961, Jose Maria Velasco. Velasco, who completed only one of his four previous presi- dential terms, is generally con- sidered a sure winner if he runs. So far, however, he has stayed in voluntary political exile in Ar- gentina and insisted that he must have commitments of support from groups outside his own political movement before announcing his candidacy. The new coalition will greatly influence party conven- tions to be held in the next few weeks to choose presidential candidates. Some observers be- lieve that Velasco could be de- feated only if liberal groups were to support former president Camilo Ponce, the candidate of the Social Christian and Conserv- ative parties. This will be difficult to achieve, however. The Ecuadorean military has been wary of political activity since the overthrow of the 1963- 1966 junta. It had seemed re- signed to Velasco's return to the presidency, but the deal with Arosemena, who has cam- paigned vindictively against the armed forces since his ouster by them in 1963, may cause military leaders to recon- sider. There is conjecture in Guayaquil that the military might stage a coup to retain Interim President Otto Arose- mena in office. (b)(1) (b)(3) (b)(1) (b)(3) Page 29 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 %weiTLis GUYANA-SURINAM BORDER TROUBLES FLARE UP Provocative statements by Surinam's Minister-President Johan Pengel regarding his coun- try's long-standing boundary dispute with Guyana are increas- ing tension between the two coun- tries. A 1916 agreement states that the boundary should be the Cou- rantyne River, but the river's exact location was never estab- lished in the jungle area south of its confluence with the New River. The issue had been quies- cent for some time but it flared VENEZUELA 69334 1-68 Area claimed by VENEZUELA BRAZIL Page 30 up again last month when the Guyanese police removed from "Guyanese territory" five Suri- namers who were conducting hydro- graphic studies of the disputed New River. The ouster came shortly after Pengel's recent diplomatic visit to Caracas, which may have looked to Guyana like a demonstra- tion of support for Venezuela's claims to a large part of Guy- anese territory. Guyana may have wanted to underscore its claims of "established presence" in the area, but probably had no inten- tion of touching off another time- consuming and politically sensi- tive boundary problem. isputes � GEORGETOWN GUYANA 'men 0 150 MIL ES 15"EfAZILE WEEKLY SUMMARY PARAMARIBO SURINAM FRENCH GUIANA Area claimed by NETHERLANDS 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Niue' Approved for Release: 2023/03/28 C03172633 Ntme Pengel's reaction was vigor- ous. He stated that "the Dutch will guarantee the integrity of Surinam's territory, and, if necessary, armed force will have to be used." On 12 January, he quietly sent a small group of civilian workers back to the disputed area. He also announced that all Guyanese would have to leave Surinam "within a period to be set by the government," and that he would ask for volun- teers with military training, presumably to go to the disputed area. Publicly, the Guyanese have responded with moderation, but they have decided to increase air surveillance over the area. As soon as possible, they plan to send in supplies and a platoon of the Guyana Defense Force to augment the detachment of 14 police and 24 soldiers already there. Two members of Surinam's leftist revolutionary party ar- rived in Georgetown to consult with Guyana's pro-Communist opposition leader Cheddi Jagan on the border issue. Jagan would probably like to exploit the issue by suggesting that the government is not acting strongly enough to protect Guyana's in- terests. He does not want to antagonize Surinam's left, how- ever, and therefore has fallen in with Burnham's call for dip- lomatic talks to resolve the problem. The Surinam leftists are hoping to involve the Tr- Continental Conference organi- zation in Cuba, and reportedly have requested that it convene a meeting of the political and economic committee to discuss the issue. Despite their hard words, the Surinamers have left room for diplomatic maneuvering, and no major military action is likely. The Dutch blame Guyana for the initial escalation but want the dispute settled peace- fully, preferably by direct nego- tiations between Surinam and Guyana. The Dutch forces in Surinam have been instructed to stay clear of the dispute and, except for provoking a scuffle at the border, little can be done by the Surinamers. The British officers who lead the Guyanese are also unlikely to get involved. Page 31 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 RET INCREASED VIOLENCE BREAKS OUT IN GUATEMALA An outbreak of Communist terrorism on 16 January has caused the Guatemalan Government to de- clare a 30-day "state of alarm." The commander of the US mil- itary group and the chief of the navy section were killed and two other members of the group were wounded in one attack. Elsewhere in the city, Communist terrorists attacked the homes of two high- ranking Guatemalan officers in charge of the government's clan- destine anti-Communist terrorist squads, and a rightist politician, Manuel Villacorta Vielmann. The Communist Rebel Armed Forces (FAR) have claimed respon- sibility for the murder of the two US officials and has said that the shooting was to avenge murders by clandestine right-wing organizations. Their leaflet reiterates the FAR propaganda thesis that "Yankee imperialists" are the real enemy and that the US military are the intellectual authors of the Guatemalan Govern- ment's counterinsurgency effort. Members of the military mission as well as other US Embassy per- sonnel have been threatened and followed by Communist terrorists in the past, and in February 1965 the chief of the US Army mission was fired on. Minister of Defense Colonel Arriaga has personally taken over the investigation of the attack on US officers. Arriaga plans to react forcibly and in kind to the Communist terror. Although security offi- cials have voiced confidence in their ability to maintain order, there is a distinct danger that the desire for vengeance on both sides will result in in- creased violence. Page 32 WEEKLY SUMMARY 19 Jan 68 Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 Nov' vgail (b)(1) (b)(3) Approved for Release: 2023/03/28 C03172633 Approved for Release: 2023/03/28 C03172633 Nuil�v Approved for Release: 2023/03/28 C03172633