WEEKLY SUMMARY

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CIA-RDP79-00927A004900070001-3
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RIPPUB
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S
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35
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December 21, 2016
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May 22, 2008
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1
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Publication Date: 
June 18, 1965
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SUMMARY
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OCI No . 02;9.4/65 Copy'NQ WEEKLY SUMMARY CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE SECRET 25 GROUP I Ex'tludad from automatic ,iowngrading,and'declp ifict},Iion Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET (Information as of noon EDT, 17 June 1965) VIETNAM Saigon's political crisis has been resolved, at least temporarily, by the formation of a new "military leadership committee" which is working out details of a new government organization. As the Viet Cong continue to press their summer campaign, Hanoi and Peiping are stepping up their efforts to deter the US The Communist World SINO-SOVIET RELATIONS Peiping's latest blast makes it clear that developments in Vietnam will not stop Chinese attacks on the Soviet leadership or cause the Chinese to compromise on any of the major points at issue. TITO'S VISITS TO CZECHOSLOVAKIA AND EAST GERMANY His talks will probably lead to further improvement in bilateral relations, but he apparently found little agreement with either Ulbricht or Novotny on the pro- blems of international Communism. POLITICAL MANEUVERING IN THE BULGARIAN REGIME Recent events suggest that the trial of the Bulgarian conspirators was cancelled as a result of efforts by various party factions to turn the conspiracy to their own advantage. SECRET Page i WEEKLY SUMMARY 18 June 65 25X1 25X1 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 'WOW &3r_J moo, COMMUNIST CHINA AGAIN INCREASING TRUCK INVENTORY A revival of domestic production and an expansion of imports had expanded the truck inventory at the end of 1964 to about 230,000, about 180,000 of which are less than ten years old. Asia-Africa SECOND AFRO-ASIAN CONFERENCE PRELUDES An atmosphere of disarray continues to pervade the preparations for the conference, especially in the physical and logistical arrangements, while the Chinese Communists and other radically anti-Western elements are pressing their campaign to dominate the meeting. Page 8 JAPANESE LEFT EXPLOITS VIETNAM ISSUE As part of their campaign for elections to the Upper House on 4 July, the leftists are agitating strongly to draw the votes of the many Japanese who fear involvement if the hostilities in Vietnam spread. MALI REGIME MODERATING LEFTIST POLICIES A combination of economic difficulties, disapointment over French and Chinese Communist aid prospects, and pressure from pro-Western neighbors is leading President Keita to put some reins on Mali's extremists. KING TAKES OVER MOROCCAN GOVERNMENT Hassan II has resumed direct rule in an effort to end a prolonged political impasse and to begin to deal with the country's more pressing economic difficulties. REBEL AND POLITICAL ACTIVITY IN THE CONGO Rebel bands have resumed harassment of government po- sitions around Lake Tanganyika. On the political scene, Tshombd's party is rolling up a huge majority, according to nearly complete election returns. SECRET Pa ge ii WEEKLY SUMMARY 18 June 65 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 NAOF OEM UIVEJ .1 low Europe NUCLEAR WEAPONS DEBATE IN SWEDEN The military again urge an accelerated weapons research program to reduce lead time needed for actual production. EUROPEAN INTEGRATION DEVELOPMENTS The De Gaulle - Erhard talks in Bonn seem to have allayed German fears about some French policies but the two countries still differ about EEC agricultural financing proposals. BRITISH POLITICAL DEVELOPMENTS Political and economic difficulties are causing specula- tion that the Labor government may be forced into an early election this fall. Opinion polls have the Conserv- atives leading Labor. Western Hemisphere SITUATION IN THE DOMINICAN REPUBLIC Heavy fighting resumed in Santo Domingo 15 June when rebels attacked elements of the Inter-American Peace Force. The action is indicative of increasing ex- tremist influence in the rebel camp. URUGUAYAN CONSTITUTIONAL REFORM SOUGHT AGAIN Political leaders are calling for constitutional reform again as an answer to the nation's economic problems. SE CRE T Page iii WEEKLY SUMMARY 18 June 65 Page Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22: CIA-RDP79-00927A004900070001-3 GUERRILLA ACTIVITY IN PERU The Movement of the Revolutionary Left has apparently started guerrilla activity in remote and rugged east- central Peru. Three ranches, two police posts, and a mine have been raided since 9 June. TEMPORARY RESPITE IN BOLIVIA The military occupation of the nationalized mines has brought a temporary respite to the month-old political crisis but the duration of the lull probably depends on how soon conditions improve at the mines. UNITED NATIONS DISARMAMENT COMMISSION The commission meeting has served, as the Soviets in- tended, as a forum for attacks on US foreign policies and for polemics against the West. SECRET Page iv WEEKLY SUMMARY 18 June 65 Page 25 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 SECRET The political crisis in Saigon has been resolved for the time being by formation of a new all-powerful "military leader- ship committee" which is working out details of new government or- ganization to carry out the re- forms desired by "Young Turk" generals. It remains to be seen if the committee members have the political skill required to manage this shake-up, particu- larly in the environment of a worsening military situation. As the Viet Cong push ahead with their summer campaign, Hanoi and Peiping are increasing their ef- forts to deter the US from further escalation and, at the same time,are preparing defenses against the possibility of heavier US blows. Political Changes in Saigon Premier Quat on 11 June handed over full government power to the military, after its lead- ers had concluded among them= selves that "radical" steps were needed to resolve the political crisis which he had asked them to mediate. Although Quat and his cabinet were retained in a caretaker capacity, the National Legislative Council and the pro- visional charter have been abol- ished. All government prerogatives now reside in a new 10-member "military leadership committee." This committee, headed by Gen- eral Nguyen Van Thieu, Quat's current defense minister and the prospective new chief of state, is to determine the new govern- ment's structure and policies, and set up a mixed military- civilian "wartime" cabinet headed or supervised by Air Vice Marshal Ky. Although government poli- cies are still being worked out, broad outlines are beginning to emerge and have been reflected in public statements by General Thieu. These policies would in- volve basically a program of austerity, maximum concentration on the war effort, and harsh treatment of "political and eco- nomic speculators." This pro- gram appears in line with the "revolutionary reforms" long ad- vocated by Ky and other "Young Turk" generals, as well as by the Tri Quang wing of the Bud- dhist hierarchy. It remains highly question- able, however, whether the mili- tary leaders can manage a sweep- ing internal shake-up without provoking an adverse reaction among certain civilian elements, or without reverting themselves to renewed infighting at a time when the military situation has also become more critical. The Catholics and their allies have already warned the military of their " reference" for civilian rule. Viet Cong Campaign In South Vietnam The Viet Cong summer cam- paign continues to gather momen- tum. The major action of the week involved a series of engagements SE CRE T Page 1 WEEKLY SUMMARY 25X1 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 w w h Ong K.-chiw Mengtzu ?,.., t c 1.?L ..~ I .Nmg ming NORTH AiiIdd \\ ?. ..^me2 ~ .N., Lang Son- !>h n S V IF T a AM' PHNOM PENH00~ Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Stung Trong Zang -C AM T Vuun I - ~ M,a rn,ng Su I .Ch' RY 9AYA9D / ?\ t VLO A 41CV"CTOiiIA ~.lC bfACAO HOMO KONG Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 `WF SECRET in and around the district town of Dong Xoai, in Phuoc Long Prov- ince, 60 miles north of Saigon. Both sides suffered heavy casual- ties. The Viet:Cong launched a regimental size attack on the town and on a nearby US Special Forces camp on 9 June and, dur- ing the five-day battle that en- sued, badly mauled several gov- ernment relief forces. Action has been broken off. Enemy sabotage efforts against roads and rail lines are widespread, and appear calculated to make the entire system inoper- able. Long stretches of main highways have been cut and the coastal railroad is operable only from Nha Trang southward for a distance of 35 miles. The 15 June bombing of the civilian terminal at Saigon's Tan Son Nhut airport, wounding 34 US military personnel, and an earlier attempt to sabotage a US Navy bus in Saigon, may fore- shadow renewed terrorist activi- ties against Americans. Communist Political Moves In anticipation of new US moves to escalate the war in Viet- nam, the Communists are seeking to increase deterrent pressures on Washington. On 12 June the Front fol- lowed up its threat of 9 June to call in "volunteers" from the DRV and "friendly" countries, claiming that "now more than ever before all the necessary condi- tions for such action have ma- terialized." The DRV has en- dorsed these threats and the North Vietnamese delegate to the recent "Solidarity Conference" in Hanoi made a speech--rebroad- cast by the Chinese on 13 June --which called for "donations of weapons and volunteers" but did not include the usual qualifi- cation that this would take place when the Front decided it was "necessary." A statement by the Libera- tion Front central committee, released on 14 June, raised the possibility of DRV troops mov- ing across the demilitarized zone by claiming that "US warlike policies" have erased the "tem- porary demarcation line at the 17th parallel which divides Viet- nam into two zones." Although Peiping had claimed earlier that US moves had given North Vietnam the right to intervene militar- ily in the South, neither Hanoi nor the Front had ever commented independently to this effect be- fore. The Chinese Communists once again raised the specter of another Korean-type war in an article by the authoritative "Ob- server" in People's Daily on 11 June. Responding o t e announce- ment that US troops might play a regular combat role in Vietnam, Peiping warned that this action was "fraught with extremely grave consequences" and asserted that it gave "all friendly countries" a greater right to dispatch volunteers at any time they were "required" by the Front. Peiping has been gradually spelling out the conditions un- der which it would intervene directly in terms calculated to present a convincing image SECRET Page 3 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22: CIA-RDP79-00927A004900070001-3 Moscow continues to take amore cautious nee in its deter- rent warning efforts to present the Front as the "only genuine and legal representative" of the South Vietnamese people. Chinese diplomats in Al- giers reportedly told the Turk- ish ambassador there recently that Peiping might agree to a moderate Afro-Asian resolution on Vietnam appealing for an end to the fighting and a beginning of negotiations in exchange for Turkish help in excluding the Soviet Union from the meeting. The Communists may be plan- ning new political moves at the coming Afro-Asian conference in Algiers designed to tie the hands of the US or put the onus for continued hostilities on Washing- ton. The DRV foreign minister and a prominent Front diplomat have been touring leftist Afri- can capitals to line up support for seating Front representatives at the meeting. On 14 June Hanoi's foreign minister demanded participation of the Front as a. "full-fledged member." This would be a major step forward in A new surface-to-air mis- sile site in the vicinity of Hanoi was disclosed by photog- raphy This site-- locat a ou nautical miles 25X1 west-northwest of the city-- is the fourth one detected thus far in the Hanoi area. Two re- vetments of the new site are almost complete and the other four are in various stages of construction. One of the other SAM sites now appears to be near- ing completion. SECRET Page 4 WEEKLY SUMMARY 25X1 5X1 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET The latest of Peiping's ma- jor polemical blasts at Moscow-- the People's Daily - Red Flag editorial. of T4_7une--makes t clear that despite the increas- ing seriousness of the situation in Vietnam, the Chinese have no intention of abandoning their public attacks on the Soviet leadership. The editorial broad- side, entitled "Carry the Strug- gle Against Khrushchev Revision- ism Through to the End," is a flat rejection of Soviet appeals for bloc unity and a categorical refusal to compromise on any of the major points at issue between Moscow and Peiping. Published on the second an- niversary of a major Chinese at- tack on Khrushchev, the edito- rial denounces his successors for collusion with Washington and for attempting to help the US find "a way out" in Vietnam through negotiations. Peiping contends that the present Soviet leaders--"more cunning and dan- gerous" than Khrushchev--actually represent a "privileged bourgeois stratum" in the USSR and that they merely "chant honeyed words such as 'unity"' in hopes of be- ing able to pursue their betrayal of Marxism-Leninism without crit- icism. These charges are not new, but Peiping may believe that constant repetition of them will reinforce whatever suspicions North Vietnamese leaders may have of Soviet sincerity. In the face of this continu- ing Chinese challenge, Moscow is maintaining its policy of general restraint. Although Khrushchev's successors have reaffirmed the Soviet position on substantive issues in dispute with Peiping, they have attempted to avoid harsh polemics and prefer to counter Chinese charges by build- ing a record of firm opposition to "US imperialism," especially in Vietnam. Moscow apparently considers that its military as- sistance to Hanoi, and its claims of Soviet-DRV unanimity on meas- ures to repulse "US imperialism," constitute effective weapons to undercut Chinese charges. On occasion, however, the Soviets have reacted to partic- ularly provocative Chinese com- ments. After politburo member Peng Chen's violent anti-Soviet attack at the recent Indonesian Communist Party anniversary celebrations in Djakarta, for example, Moscow publicly pro- tested "slanderous" Chinese statements. The Soviets also continue to publicize foreign party state- ments in line with Moscow's po- sition on interparty relations. On 13 June, for example, Pravda published a Portuguese party resolution which called for a new international meeting of Com- munist parties in which the 81 parties which attended the 1960 Moscow conference should partic- ipate.. While the Russians probably do not anticipate a con- ference in the near future, they have sought to exploit Chinese opposition to such a meeting to demonstrate that Peiping is not at all interested in resolv- ing interparty differences. SE CRE T Page 5 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 r SECRET TITO'S VISITS TO CZECHOSLOVAKIA Tito's talks with the Czechoslovak and East German leaders, Novotny and Ulbricht, seem to have been generally suc- cessful and could lead to further improvement in Yugoslavia's re- lations with their countries. One immediate result will be to strengthen Tito's hand for his visit later this month to the USSR. A comparison of the two communiquds he signed indicates that Tito found the general sit- uation in Czechoslovakia con- siderably more to his liking than that in East Germany. The talks revealed important areas of bilateral agreement, particularly in trade matters. Tito also seemed in agreement with his hosts in attacking the US for its policies in Vietnam and the Dominican Republic, as well as West Germany for its alleged unwillingness to accept the status quo in Central Europe. Tito's speeches on these subjects, however, were generally milder than those of his hosts, partic- ularly in East Germany. On the other hand, Tito apparently found little agree- ment with Ulbricht and Novotny on the problems of the inter- national Communist movement. In his speeches he attacked China for its policies and indicated that it, along with the US, was responsible for increased in- ternational tensions. In East Germany, Tito said that inability to compromise on issues at dis- pute in the Communist world was no reason to keep quiet about them. These matters, however, were not mentioned in the final communiquds. Tito was on the spot in East Germany because West Ger- many, whose economic support Belgrade needs, had indicated that Tito's conduct there would determine its future attitude toward Belgrade. Nevertheless, he stated his views on the Ger- man problem (which are distaste- ful to Bonn), visited the Wall, and departed from usual Yugo- slav statements to speak of the need to normalize the situation in West Berlin. Twice, however, he explicitly admitted the existence of differences with the East Germans. There was no mention of raising the status of diplomatic relations to the ambassadorial level nor of withdrawing Yugoslavia's mili- tary mission in West Berlin. Ulbricht and Tito, who have never really approved of each other, made little progress in improving their personal relations. Novotny was with Tito for all except one day of his visit, but Ulbricht accompanied him only when nec- essary.. Tito, moreover, man- aged to avoid mentioning U1- bricht by name in the princi- pal address of his visit. SECRI2T WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 '/ SECRET The trial of the conspira- tors against the Bulgarian regime has not been held, despite indica- tions that first secretary Zhivkov was ready to proceed with it in early May. Recent events suggest that the various party factions sought to turn the conspiracy to their own advantage in internal party maneuverings, and that Zhivkov finally felt compelled to appeal to Moscow for help. Soviet party secretary Suslov, who has figured promi- nentlyin all the more important Bulgarian leadership changes of the past 10 years, visited Sofia and several provincial centers from 26 May to 4 June. Judging from his major speech, he de- clined to involve himself in the party factionalism. He praised not only Zhivkov, but also party secretaries Grigorov and Velchev and state President Traykov. Moreover, he never publicly men- tioned the April plot or said any- thing to support one or another of the factions, except to express appreciation for the party's close support of the USSR in all mat- ters. Zhivkov's distress over this stand was apparent in his state- ment that he had asked Suslov to make "some critical remarks" about the fact that in the Bulgarian party there are "shortcomings, difficulties, and errors, that there are even shocking things in our work." Nevertheless, Zhivkov went on to express his fealty to the USSR, apparently so he can claim that any attack on his personal position is an at- tack on Bulgaria's close alliance with the USSR. The plot and how it should be handled have been the subject of considerable party discussion since Suslov's visit. It figured prominently in the 8-9 June meet- ing of the Sofia party organiza- tion and the "all-army gathering" of military party workers on the same dates. It probably was dis- cussed at the 10-11 June central committee plenum. The plenum gave Zhivkov a backhanded demonstration of sup- port; it "unanimously decided" that he should end its proceed- ings even though he had not played a prominent role at it. Immediately afterward, Zhivkov traveled to Plovdiv, once the stronghold of Anton Yugov, an ex- partisan who was ousted from the premiership in late 1962 for his factional activity, either to re- assert his authority or to seek additional support. Other members of the regime who appear to be soliciting per- sonal support include Deputy Defense Minister Trunski, who has a reputation as a Titoist. On 13 June, in the presence of the Soviet military attache and "a Yugoslav comrade," he de- livered a speech commemorating the formation of his partisan detachment which cooperated with Yugoslav partisans during the war. 25X1 SECRET Page 7 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 low `01 SECRET Reviving domestic produc- tion and expanding imports of trucks are increasing Communist China's truck inventory, which had remained static since the collapse of the leap forward. The military holds perhaps half of the inventory, which was 200,000 to 230,000 trucks at the end of 1964. Of these about 180,000 are less than ten years old. Average annual new acquisi- tions from domestic production and imports between 1955 and 1960 far exceeded estimated retire- ments, and added about 18,000 new trucks to the inventory each year. From 1961 to 1963, new acquisitions--imports and do- mestic output--dropped to a level approximately equaling retire- ments, leaving the inventory static in numbers. Road trans- port does not appear to have experienced serious problems during those years, because economic activity slackened and military use of trucks was held to a minimum. Starting in 1964, acquisi- tions have again clearly ex- the output o the angc un motor Vehicle Plant-- a Soviet-aid facility which has accounted for most of the domestic output since 1956--had climbed back to about 15,700 units in 1964 from a low of 2,200 in 1961. The plant's output in 1959, be- fore the withdrawal of Soviet technicians disrupted operations, was about 17,200 units. Imports of bloc vehicles have continued into 1965-- although at drastically re- duced levels since 1961, and China has begun to draw upon free world sources of supply for heavier vehicles generally beyond China's capabilities to produce. Since late 1964, 2,000 heavy-duty trucks and dump trucks have been on order from Berliet of France. China's productive capabili- ties are still essentially limited to copying the Soviet ZIL-150 cargo truck at Chang- chun, the country's only modern truck plant. Implied claims of production by plants other than Changchun appear exaggerated. The plants mentioned are ad- mitted to be only assembly fa- cilities that use components from Changchun and from other small spare-parts plants, and have probably produced no more than about 2,000 trucks a year. Chinese plans call for doubling Changchun's output, but no tar- get date has been specified. A contract just signed 25X1 with Berliet to set up an assem- bly plant in China over the next three years may represent an attempt to gain capabilities for producing more complex ve- hicles. Berliet will probably "train engineers and supply con- sulting and engineering serv- ices" toward assembly of ve- hicles similar to the heavy- duty trucks sold to the Chinese. SE CRE T Page 8 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 SE CRE T Preparations for the Second Afro-Asian Conference, which opens in Algiers on 29 June, are accelerating. Some moderates are collaborating in an effort to keep the conference from being dominated by the radicals, while the latter continue their rounds of preconference consultations. Developments at the prepara- tory committee meeting, held in Algiers from 4 to 8 June, indi- cated that the moderates were ill prepared to cope with radical tactics. The Chinese Communists and the radicals dominated the meeting with the help of the Al- gerian chairman, who reportedly favored them at every opportu nity. The moderates seem to have made little effort individually or collectively to stem the rad- ical tide. The preparatory meeting, however, apparently failed in its primary task--the preparation of an economic resolution for con- sideration by the foreign minis- ters when they meet on 24 June. Instead, a number of documents, including the United Nations Con- ference on Trade and Development report and a Chinese speech stressing Afro-Asian cooperation outside the UN, were collected for referral to the foreign min- isters. Events appear to have been especially discouraging to In- dia. Anticipating that the foreign ministersk meeting might be "loaded" against its repre- sentatives, New Delhi is con- sidering the possibility of downgrading the level of its representation at the conference proper. It is conceivable that India would boycott the confer- ence if both Malaysia and the USSR--whose participation is sponsored by India--were excluded. Meanwhile, Chinese, Indo- nesian and Algerian delegations continue to tour Asia and Africa to line up support for their position at the conference. Delegations from Hanoi and the Communists' National Front for the Liberation of South Vietnam are also touring Africa, seeking support for seating the Front as either a full participant or an observer. At the same time, the pace of Moscow's diplomatic and prop- aganda campaign to assert its "right" to attend has been quick- ening. Although Soviet press commentary and approaches to foreign governments remain rel- atively restrained, the extent and intensity of the current Russian offensive suggest a SE CRE T Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 decision to oppose more actively Chinese efforts to isolate the USSR. Moscow may win participation if majority voting is adopted early in the foreign ministers' meeting. However, Chinese and Indonesian insistence that all decisions be unanimous could block Soviet participation, as well as that of Malaysia, South Vietnam, and South Korea. What- ever the outcome, the Soviets will continue to point to Pei- ping's heavy-handed and uncompro- mising tactics as evidence that the Chinese are more interested in pressing their anti-Soviet campaign than in strengthening Afro-Asian forces. There is still no indication that any of the 10 moderate Afri- can states which have decided not to participate formally in the conference--Chad, Congo (Leo- poldville), Gabon, Gambia, Ivory Coast, Malagasy Republic, Niger, Senegal, Togo, and Upper Volta-- will reverse their decisions. The Moroccan foreign minister, who among others has urged these SECRET Page 10 WEEKLY SUMMARY governments to attend, blames France for influencing them. He believes that De Gaulle wants to build up Ben Bella as an extremist, third-world, de- structively anti-American force in Africa and therefore has played an "unhelpful role" in conference preliminaries. In Algiers, physical prep- arations for the conference have lagged to such an extent that alternate arrangements are being made to care for the foreign ministers. They appar- ently will meet in the Algerian National Assembly chamber and be housed in hotels within the city. Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET The Japanese left is capi- talizing on popular opposition to the bombing of North Vietnam as the campaign for the 4 July Upper House elections opens. Play- ing upon deep-seated fears that Japan may become involved if hos- tilities spread, left-wing groups mobilized 36,000 demonstrators in Tokyo and over 100,000 through- out the country on 9 June in a "Day of National Action Against US Aggression in Vietnam." This was the largest such demonstration since the Vietnam issue flared up in February.. Although the rival leftist or- ganizations which sponsored the rallies failed to agree formally on unified action, they did achieve a de facto united front insofar as Socialists, unionists, and Communists employed similar tactics on the same day. This is the closest approach to unity on the left since the anti - Secu- rity Treaty riots of 1960, and should help the leftists make a stronger bid for broader support in the election. The leftist leadership may now be counting on a confronta- tion with the government to win further "sympathy" votes. For its part, the Sato government ap- parently welcomes the challenge. On 8 June, the ruling Liberal Democratic Party issued a state- ment strongly backing the US position in Vietnam, although many LDP members reportedly har- bor private reservations. Fol- lowing the demonstrations, the minister of home affairs is re- ported to have warned the cabi- net of the danger of further leftist agitation, and is said to favor a crackdown. Although the upcoming elec- tion for the House of Council- lors cannot result in any real shift in power--which resides in the lower house of the Diet --it will serve as a political barometer and will give the first public verdict on Prime Minister Sato and his almost completely revamped cabinet. MALI REGIME MODERATING LEFTIST POLICIES A shift of pressures within the regime appears to be influ- encing Mali President Modibo Keita to seek less doctrinaire solutions to the country's prob- lems. In recent months, a com- bination of popular discontent over deteriorating economic con- ditions, pressure from pro-West- ern African neighbors, and waning exuberance over unrealistic hopes of French and Chinese Communist aid, have caused the government to look for new backers. Con- tinuation of the trend could bring Mali into a more truly non- aligned position and lead the regime to exercise its "social- ist option" in a more moderate fashion. President Keita has long been in the middle between a moderate, relatively pro-Western faction with close ties to tra- ditionalMalian society and an SECRET Page 11 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 `NO' SECRET v4sof extremist, pro-Communist group which dominates the apparatus o Mali's single party. Keita is closer ideologically to the ex- tremists, but he is also sensi- tive to the regime's need for traditionalist support. The latest shift seems to have been triggered by the break- off in late May of financial talks with France. The lengthy whether France would readmit by assume part of the burden that Bamako's ill-considered economic programs have created during the past five years of independence. Paris insisted that Mali give up full control over its cur- rency--a concession which Mali's leftist faction rejected as a return to colonialism. An alter- native salvation in the form of MALI D BAMAKO Timbuktu 0 MOIR MIAMEY UPP Y4tTA the works. On the other hand, Malian leaders appear responsive to renewed Soviet attention. Keita has arranged to vacation in the USSR this summer. increased Chinese Communist aid One domestic area in which --a large cash advance was among the regime has stepped back has the help reported to be avail- been in its relations with the able--apparently has not material- large traditional merchant class, ized. which is closely tied to the moderate faction. The government After these French and Chi- has agreed to ease and postpone nese prospects dimmed, the moder- implementation of a stringent ates persuaded Keita to send a new law--ideologically inspired high-level delegation to Washing- and intended to direct peddlers ton to seek an improvement in and youth into "productive ac- Mali-US relations. Normally tivity"--which threatened the strident anti-American radio livelihood of Mali's professional propaganda has been toned down, traders. The threat of wide- the government is reported to spread shop closings and of a have decided to stay in the back- serious breakdown in the distribu- ground at the forthcoming Second tion system apparently caused Afro-Asian Conference; and a rap- Keita to rein in the extremists prochement with conservative mem- bers of the Afro-Malagasy Com- mon Organization seems to be in SECRET Page 12 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 4W.V 1%00 SECRET On 8 June, King Hassan II of rister.of industry, mines, tour- Morocco resumed the premiership, which he had relinquished in No- vember 1963, in an effort to end a prolonged political impasse and to initiate action to meet at least the more pressing of the country's economic problems. The Casablanca riots last March focused attention on rising unemployment and living costs as symptoms of a steadily deterio- rating economy. The riots also apparently convinced Hassan that he could no longer resort to a caretaker regime such as the two which succeeded each other during the past 18 months. Failing to win support from Morocco's par- ties for a government of national unity, he accepted the only alter- native, a government of ministers individually responsive to his wishes. Enough participation by independent liberals was obtained to satisfy the left and to hold forth the promise of satisfying some leftist demands, such as those for elections and con- stitutional revision. The new government includes many ministers from the previous government and is composed of persons selected for their tech- nical or administrative competence. Six ministers who were regarded as deadwood-including?the-former premier, Ahmed Bahnini--were re- placed by six more energetic in- dividuals. The addition of Mo- hamed Laghzaoui, head of the gov ernment's phosphate monopoly and long a confidant of the King, should give impetus to business confidence. Laghzaoui, as min- 'ism, and artisanry, controls virtually everything likely to make money. Mohamed Zeghari, techni- cally vice premier, is unlikely to be effective. Real authority as the King's right hand will continue to reside with Driss M'Hammedi, director general of the royal cabinet, who is widely regarded as a prospective premier. Left-wing intellectuals and labor have indicated restrained approval of the King's action, while the rightist Istiqlal has denounced the move as uncon- stitutional. The Democratic Socialist Party, which had dom- inated the previous governing coalition, practically ceased to exist when two of its most prominent members resigned from the party to stay in the cabinet. The Popular Movement, whose two members in the govern- ment are the only ministers with party affiliation, is apparently satisfied with developments. Only in the rural areas, how- ever, will the King's action find broad and enthusiastic support. The King can be expected to display considerable dynamism in the next few months, and to hold a referendum for constitutional amendments, presumably amid con- siderable fanfare. More than showmanship, however, will be needed to solve the basic eco nomic malaise which set off the Casablanca disorders. SECRET Page 13 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Rebel activity is again picking up in the regions west of Lake Tanganyika, but the rest of the Congo is relatively calm. Rebel bands have resumed harass- ment of government positions near Uvira, at the northern tip of the lake. Other rebels are concentrating around Fizi, and lake traffic from Kigoma, Tan- zania, has also increased. Rebel activity continues to wane in the northeast following the 1 June capture of Buta. Nearly final electio,r re- turns indicate a huge majority in the National Assembly for Conaco, Premier Tshombd's na- tional political cartel. With only 10 of 166 seats unaccounted for, Conaco and its allies hold a commanding 112-44 lead. Presi- dent Kasavubu's Abako party is the second largest group with SECRET Page 14 WEEKLY SUMMARY 10 seats. Conaco and its al- lies also control 13 of the 21 provincial assemblies, which are beginning to meet to select national senators and to form provincial governments. Party affiliations at all levels are still very weak, however, and tribal and personal loyalties will count for more when actual votes are taken in the as- semblies. Tshombd's majority in par- liament, if he can hold it to- gether, clearly enhances his position should he choose to run for the presidency, locus of power under the new constitu- tion. Kasavubu has declared his candidacy, but Tshombd ear- lier this week sidestepped the question. In his second provin- cial tour in three weeks, Presi- dent Kasavubu.drew onl mildly enthusiastic crowds. Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 DEMOCRATIC REPUBLIC OF THE CONGO -??- International boundary Province boundary National capital Province capital CENTRAL AFRICAN RE'PUBLIC O ion 200 W', 100 20 0 ]OO 20 0 Kilo-t,, ~.., Doruma ~\. f.. Belaie 1san Coquilhatville Ktkwit ? Ikela KAMPA~A f-AA uA/" Goma XF. O KIGALI 4 C BUJUMBURA a K9oma ly . .1 Kohgolov ~ j 7h1 ev Albertville S; BaudouinvilI Man no 5r ..... ~ l: l,NGA.N1Ih'A Jadotville ~?' rsa ~ :: N-..~~*Elisabe(thville~. (Port.) 0. ~.. ~ ProvinrlaI boundaries ha,', been strips fated from existntg I Z A M B I A Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET NUCLEAR WEAPONS DEBATE IN SWEDEN The question of acquiring nuclear weapons is again under active debate in Sweden. The latest discussion follows the recent pleas of the supreme com- mander of Sweden's defense forces, General Torsten Rapp, for an accelerated program of weapons research to reduce the lead time required for actual production. Last month Rapp submitted his recommendations to Defense Minister Andersson in a defense report to be con- sidered by a defense commission appointed by the government. In previous years, General Rapp and the military have taken the line that nuclear weapons production is necessary if Swe- den's neutrality is to be re- spected. The dominant Social Democratic Party, especially its left wing, has discounted these arguments, however, and emphasized instead that Sweden's security lies in world disarmament agree- ments. Many high Swedish officials nonetheless believe that the likely further proliferation of nuclear weapons may leave Sweden no choice but to acquire its own. This view is held by Under Secre- tary of Defense Frithiofson, who maintains that the Soviets would be more likely to observe Sweden's neutrality if it had a credible nuclear capability. Press reaction to General Rapp's proposals has been sur- prisingly favorable. Most Con- servative and Liberal papers and even one Social Democratic paper supported them. Those opposing did so only on grounds that a decision to expand weapons re- search might harm Sweden's posi- tion in disarmament talks. How- ever, the Foreign Ministry in its weekly editorial roundup re- printed an article contending that Sweden's position would ac- tually be strengthened if it were known that it did have a nuclear capability. Some high officials have said that Sweden could have atomic weapons by 1970, if not earlier. Swedish public opinion does not appear ready as yet to ac- cept a go-ahead on nuclear weap- ons, but if other countries ac- quire them in the next few years, opinion would probably change. In any event, final decision may have to wait for the Social Demo- cratic Party dongress in June 1968,even although a favorable report by the defense commission before then could be taken as an indication of Sweden's intent. to initiate a production program. SECRET Page 17 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 'imr SECRET The 12 June week-end talks in Bonn between De Gaulle and Erhard went more smoothly than had been expected. De Gaulle evidently had some success in quieting German fears about his policies. As inducements, the French held out vague promises of a "consulta- tive" role for the European Par- liament and of a summit meeting on political unity without, how- ever, offering any assurance of what its outcome might be. The French President indi- cated there was still plenty of time to make specific proposals for revising NATO before 1969. He said the McNamara proposals for a select committee on nuclear matters are still under considera- tion in Paris. De Gaulle also played down his theme of "Euro- peanizing" the German unification question and appeared tacitly to accept the German position on trade credits for the East Euro- pean bloc. The primary focus of the meeting, however, was on European integration--particularly politi- cal union talks and the EEC Com- mission's recent "package" of proposals. These seek to finance the EEC's common agricultural policy (CAP), to provide the Com- munity with an "independent" source of revenue from agricul- tural levies and tariff receipts, and to grant the European Parlia- ment real powers to control these funds. The French want to limit any agreement to CAP financing and are attempting to deprive the Com- mission of the support its posi- tion has among the other members. The French proposed alternative agricultural financing arrange- ments for the next several years in lieu of the shorter, interim extension of present arrangements which the Germans have suggested. Although the Germans did not agree with the French pro- posals regarding the CAP, they evidently were unwilling to make an all-out defense of the "polit- ical" aspects of the Commission's proposals. They seem instead to be asking for advances in indus- trial integration as a quid pro quo to further agricultural agree- ments. Such a "deal" could have the effect of both undercutting and overloading the Commission's package, and leaving any defini- tive decision for an uncertain future. Despite the claim of mutual "understanding" reached in Bonn, the subsequent EEC Council meet- ing in Brussels early this week seems to have left the deadlock unresolved. The French claimed that since creation of a common agricultural market for all prod- ucts by 1967 would be "impose- sible " and since general agree- ment to contribute industrial tariff revenue to a common fund does not exist, the question of the European Parliament's control of finances "does not present itself." Although the Germans may now have bought this line, the Dutch are presumably still opposed to any financial agree- ment which does not include in- creased parliamentary powers. Further EEC meetings are expected before the end of SE CRE T Page 18 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET June--when current CAP financing arrangements expire--and it is difficult to foresee the eventual outcome. It is questionable whether the French will accept a one-year extension of the present arrangements as a fallback posi- tion--knowing that the big issues they are trying to avoid would have to be faced again so soon. It is also not clear what the Dutch and the Commission will do. Despite their desire to avoid a "confrontation" with De Gaulle at this time, they may judge that conditions are more propitious now for extracting French concessions to an effec- tive community than at some fu- BRITISH POLITICAL DEVELOPMENTS Political and economic dif- ficulties continue to plague Prime Minister Wilson's government, and speculation is rising that he may be forced to an early election this fall. Recent public opinion polls show the Conservatives are now leading labor. Voters who wanted A change from stand-pat Conservative policies last Octo- ber are disillusioned with the government's erratic performance and its failure to come up with any solutions to Britain's basic problem. The economy shows little signs of improvement. The trade gap widened perceptibly in May, as it has in recent months. Gov- ernment spokesmen still tend to be optimistic, however, pointing out that the long-term trend in imports is downward, and attrib- ute the unfavorable May figures partly to the rush of goods shipped in after the reduction in import surcharges on 27 April. The accumulation of prob- lems for Wilson comes at a time when the legislative timetable is extremely congested. Parlia- ment is likely to spend most of its time on the government Finance Bill until summer re- cess in late July, deferring other priority legislation un- til fall. The illness in the meantime of two Labor MPs has imposed an additional strain on the government's paper-thin ma- jority, reducing it from three to one. The Conservatives have not yet said whether they will permit a "permanent pairing" for the ill MPs. A decision to do so would indicate the Tories still do not intend any moves at this time to bring about the fall of the government. SECRET Page 19 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 w IQ InterAmericon Peace Force SANTO DOMINGO Principal Rebel-Held Area Rebel-Infiltrated Area I _. I MQNnE SR n IrT.PU 0.n0 PIAZ fldtap ,_ 1 AN.R000 K y'~~Afop 2 r15 f?. LA ROMANA ' l N iba _ Aa . "P ^s S n ~otnFpG L _, .x.. ..~.. ]J -.._. ,. 1. ~ 1 ~ ~La Romano ~..) JUAN- t~??. Su^-'-r" r."al SAN 4IFI ? Y \~1 El 5 bo Y-- J, AZUA LS DIS RTO ~-/Mt~ 5'tl.~ `.'^._..w...OHiBUey -??- International boundary -"'-'- Provincla boundary National capital 0 Provincia capital -? s- Re (road an_VR Cabrera f Cal b~~~\.{ X21...+'e?. ESPjd'I ~~. Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET Western Hemisphere Heavy fighting took place in Santo Domingo on 15 June and skirmishing continued on 16 June as the rebels attacked elements of the Inter-American Peace Force (IAPF). The action was indica- tive of the increasing influence of extremists in the rebel camp, who are opposing negotiations, and are calling for violence. US forces occupied about ten percent of the rebel area in or- der to flush rebels from their firing positions. The Caamano regime in its propaganda accused the US of initiating the action and is citing the incident as a reason for having the UN under- take mediation between the IAPF and the rebels. The fighting cost 3 US dead and 37 wounded and 5 Brazilians wounded. Rebel cas- ualties were substantial and in- cluded the death of Andres Riv- iere, French soldier-of-fortune and military adviser to the reb- els. Until this episode there had been more than 900 rebel cease-fire violations since 7 May. The incident occurred the day after the rally commemorating the anniversary of the ill-fated 1959 invasion of the Dominican Republic from which the 14th of June Political group (APCJ) takes its name. Rafael Taveras, who is emerging as the major leader of the APCJ, spoke and said that to gain the revolution's aims "there is no other way" than to extend violence "to all the people." The Caamano regime felt compelled to co-sponsor the dem- onstration in order to avoid the appearance of APCJ domination of the rebel movement. Jose Pena Gomez, rebel propaganda chief and official in Juan Bosch's Dominican Revolutionary Party,(DRP), attempted to indi- cate that Communism was not the guiding ideology of the rebel government when he said at the rally that the 1959 invaders did not come "to establish on our soil a Communist revolution." There are other indications that the rebel government's con- trol of the extremists is not complete. During the fighting of 15 June Caamano indicated to UN observer Mayobre that he had ordered that the shooting stop, but.that he was not at all sure that he would be obeyed. Ex- tremists control many of the rebel paramilitary units, per- haps 65 percent of them, and the APCJ has its own intelligence net independent of that of the government. Some rebel leaders such as Defense Minister Manuel Montes Arache seem concerned over the growing extremist strength. This may have been the cause of an unexpected visit of two PRD officials to the OAS representa- tives. These two leaders stressed their desire for an early politi- cal settlement and agreed that solving the Communist problem is a necessity. Another PRD offi- cial has indicated that when he made proposals for granting con- cessions, Caamano talked to some- one else, probably Minister for the Presidency Hector Aristy, SECRET Page 21 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 N"ale sar SECRET and then said they could not be accepted. There is evidence of divi- sion within the extremist faction. The APCJ and Marxist Dominican Popular Movement are opposed to the relatively cautious policies of the Dominican Popular Social- ist (Communist) Party (PSPD). The PSPD opposed the holding of the APCJ's 14 June rally, perhaps because it was not allowed to present its own speaker. The APCJ is reported to be Caamano's "favorite" extremist group, but the PSPD is still in close con- tact with the President's advis- ers, particularly Foreign Minis- ter Jottin Cury. Imbert's Government of Na- tional Reconstruction apparently hoped that the renewed fighting would cause the US to allow loy- alist troops to attack the reb- els. Imbert said his troops were placed on the alert on 15 June and were ready to move. He later expressed regret that Dominicans were not permitted to solve their own problems. The loyalists ap- parently did take advantage of the opportunity and lobbed some mortar shells into the city. The loyalists have been seriously hurt, both at home and abroad, by rebel allegations of atrocities, including a charge of mass executions. Some of the allegations are probably true. Individual loyalist mil- itary and police units have carried out some executions to avenge rebel atrocities com- mitted during the early days of the uprising. The Inter- American Human Rights Commis- sion took quick action in inves- tigating the charges and thereby forestalled an appeal to the UN by the rebels. In the interior, fears of major, rebel-inspired violence have so far proved groundless. Because of stringent security measures taken by loyalist forces, including numerous pre- ventive arrests, there were only isolated disturbances in connection with the 14th of June anniversary. Rebel lead- ers evidently feel that the de- velopment of militant support in the interior is one of the few remaining cards they have left to play. There are continued reports of attempts to create widespread disturbances and Com- munists are planning for a pos- sible general strike. The rebel complaint to the UN concerning the false charge that the US was attacking the rebels received immediate Soviet endorsement. The USSR charged that the renewed fighting demon- strated again that the OAS is incapable of dealing with the crisis and has proposed that the Security Council meet in Santo Domingo to hear Caamano's alle- SE C'RE T Page 22 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 SECRET The president of Uruguay's nine-man National Council of Government, Blanco Party leader Washington Beltran, is again call- ing for constitutional reform as an answer to the nation's eco- nomic and political woes. In a recent political address he scoffed at rumors of a possible coup and said Uruguayans will solve their problems legally. Beltran and many other Blanco leaders, as well as leaders of the major faction of the opposi- tion Colorado Party, publicly favor replacing the present cum- bersome council. Although the Blancos want a single executive, the Colorados have historically supported the plural executive as a safeguard against abuse of power. The Colorados admit, how- ever, that the nation's situation is desperate and they have asked for a national plebiscite late this year. They reportedly would favor a five-man executive rep- resenting only the majority party and having a president with a four-year term. In 1962 a proposal to return to a single executive was de- feated by a large margin at the polls. Many Uruguayans may now recognize, however, the basic defects in their governmental system and the need for a stronger government to cope with the coun- try's worsening economic situation. The cost of living contin- ues to soar; it has increased approxima ely 21 percent in the first half of 1965. Although the free market peso quotation dropped slightly to about 47 per dollar on 1 June, this figure still represents nearly a 120- percent increase over a ten- month period. Capital flight is apparently increasing. The central bank is reportedly nego- tiating for an $8.8 million foreign loan with an interest rate at or above 8.5 percent. The piece- meal approach to the foreign ex- change and credit problems and willingness to pay such high interest rates are an additional burden on the economy and harm- ful to Uruguay's credit standing abroad. Public employees have staged intermittent work stoppages and strikes to protest the govern- ment's failure to pay wages earned during April. The government claims it lacks sufficient funds and may have to postpone the May payroll until July. Another national problem is the prolonged drought which has seriously hurt agriculture and curtailed use of electric power. Any new government would have to-face these and other eco- nomic problems. Constitutional reform alone will not help very much. It would require great courage to enact the austerity measures necessary to permit the country once again to live within its means. SE CRE T Page 23 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET The Movement of the Revo- lutionary Left (MIR), a pro- Cuban, pro-Chinese Communist or- ganization, has apparently begun guerrilla activity in remote and rugged east-central Peru. On ;? June, 13 armed men at- tacked two haciendas (ranches) and a mine some sixty miles northeast of Huancayo, stealing dynamite, clothing, money, food and other articles. Another group raided a hacienda to the south, near the borders of Junin and Huancavelica departments on 12 June. Two police posts have also been attacked. Although accurate information regarding the raids is not available, the evidence is strong that they were carried out by the MIR as the beginning of its "armed action" stage of revolution. The MIR has about 1,000 members, at least 150 of whom have received extensive guerrilla training in Cuba, Communist China, Government security forces are pursuing the guerrillas in the central zone, but no con- operations. tact has as yet been made. The terrain and uncooperative attitude of the peasants will make it difficult for the authorities to apprehend the insurgents. Although the guer- rilla activity does not pose an immediate security threat, it will encourage other extreme leftist groups to mount similar SE CRE T Page 25 WEEKLY SUMMARY 18 June 65 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 qqw SECRET TEMPORARY RESPITE IN BOLIVIA The military occupation of all nationalized mines in Bolivia late last week has brought a, tem- porary respite in the month-old political crisis. The miners, demoralized, without their ex- treme leftist leadership, and faced by an overwhelming force, reluctantly agreed to the 23 May decree reorganizing the mining industry. The junta must soon show, however, that conditions will improve under the mine reha- bilitation program. Otherwise, the miners' resistance is certain to stiffen again and another crisis may occur. Bolivia's major political parties--except the center-right Bolivian Socialist Falange (FSB) --have been left in confusion. The Nationalist Revolutionary Movement (MNR), the country's largest, is split between those favoring a center-left front to oppose the junta and those will- ing to work with the junta. Her- na.n Siles Zuazo, the MNR's nominal leader and spokesman for the anti- junta faction, has lost control of the party and, following an order for his arrest, has taken asylum in the Uruguayan Embassy. Juan Lechin's National Leftist Revolutionary Party and the Com- munist Party are in shambles, their leaders deported and their bases of support--the labor or- ganizations--destroyed. Only the FSB, which escaped the per- secutions, has retained its or- ganization intact. The power struggle between co-presidents Barrientos and Ovando remains a potential threat to armed forces unity and politi- cal stability. Barrientos re- tains the upper hand at the mo- ment with Ova.ndo characteristi- cally biding his time. Barrientos has told US officials that Ovando "deserves a, well-earned rest in Spain, perhaps as ambas- sador." Barrientos probably will not act until he is certain of his ground and also that the unity of the armed forces will' not be impaired. SE CRE T Page 26 WEEKLY SUMMARY 18 June 65 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 SECRET The United Nations Disarma- ment Commission (UNDC) meeting, which adjourned 16 June, has served the more obvious purposes for which the USSR convened it in May--as a forum for attacks on the foreign policies of the United States and as a vehicle for further polemics against the West in general. When the debate did focus on disarmament, the various countries presented their traditional views, and there is no reason to believe that the further negotiations which have been called for will be any more productive. The Yugoslav resolution call- ing for a World Disarmament Con- ference, which was passed by 89 votes, was supported by most of the nonaligned nations. They were discouraged by the lack of progress in the UNDC and desired Chinese Communist participation in any future negotiations. Sev- eral NATO powers also voted for the resolution despite US op- position. A world conference poses many knotty problems, such as the attendance of divided states, and it is almost certain that China would not accept an invitation to attend. It is, in any case, dubious that such a large forum would prove any more manageable than the UNDC. When Moscow called for the UNDC meetings, it had been hoped the Soviets would agree to re- convene the Geneva Eighteen- Nation Disarmament Committee (ENDC) this summer. They are clearly not eager for such talks, however, and abstained on the eventually approved resolution of the eight nonaligned nations of the ENDC. The resolution appeals to all countries to ad- here to the limited test-ban treaty and calls on the ENDC to consider a comprehensive test- ban treaty, a nonproliferation agreement, and the reduction of military budgets. If the eighteen-nation group meets, some delegates want it to do the preliminary work for the proposed world conference. It is doubtful whether this or any other useful work can be done in a gathering from which France and China are absent. Many speculate that another round of fruitless talks might seriously impair the ENDC's prestige and effectiveness as a disarmament forum. In short, the combination of rigid national positions, preoccupation with other international problems, and the unwillingness of the Chinese to sit down and negotiate does not seem conducive to any real progress on disarmament this year. SECRET Page 27 WEEKLY SUMMARY Approved For Release 2008/05/22 : CIA-RDP79-00927A004900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3 IVWPII JCI,Kt 1 ``w` SECRET, Approved For Release 2008/05/22 : CIA-RDP79-00927AO04900070001-3