WEEKLY SUMMARY

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A005000060001-2
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RIPPUB
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S
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28
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December 20, 2016
Document Release Date: 
January 30, 2006
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1
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Publication Date: 
September 17, 1965
Content Type: 
SUMMARY
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6.1 X44 V M e 2006/03/16: CIA-RDP79-00927A00 0060001-2 17 September 1965 OCI No. 0307/65 Copy No. C CENTRAL INTELLIGENCE AGE] OFFICE OF CURRENT INTELLIGENCE State Department review completed Approved se 2006/03/16: CIA-RDP79-0 005000060 7 L I Excluded from automatic ,wngroding and declassification 25X1 Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 Next 4 Page(s) In Document Exempt Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 Approved For Rele 2006/03/16: CIA-RDP79-00927A00060001-2 SECRET Although pro-Soviet Commu- nists apparently had some ex- pectation that the North Viet- namese party delegation now touring France might offer new suggestions for opening nego- tiations on the Vietnam war, thus far there has been no in- dication that this has happened. In its propaganda, the DRV continues to express confidence in the Communists' ability to defeat the US militarily. At the same time, several recent statements and articles by prom- inent North Vietnamese have been noticeably defensive regarding regime policies on the prosecu- tion of the war. Both politburo member Troung Chinh and army chief of staff Van Tien Dung are among the authors of such arti- cles. They attempt to justify the party's decisions over the past years, particularly those decisions which have led to the current situation. The tenor of Chinh's article suggests that he may be answering criticism from foreign Communists con- cerning current DRV policy in prosecuting the war. The deleterious effect the US air strikes are having on the North Vietnamese populace is apparently causing growing con- cern to Hanoi. Its most explicit statement of anxiety over public morale in some time was contained in a domestic broadcast on 11 September discussing conditions in the Viet Bac Autonomous Re- gion in northeastern North Viet- nam. The broadcast expressed dissatisfaction with evacuation practices in that area, imply- ing that the air strikes have caused local residents to take to their heels with little re- gard to planned evacuation pro- cedures. Cadres and state em- ployees were urged to "explain things" to the people in order "to reassure them." The broadcast also reflected the regime's long-standing dis- trust of the minority racial ele- ments who live in the Viet Bac area. It warned that "cadres and people" are not yet fully aware of the "tricky, dangerous schemes of the enemy," or of the "nature of sabotage waged by the US" against North Vietnam. All provinces were instructed to counter the "erroneous views" allegedly spread through the area by the "enemy" and to "smash in time all counterpropaganda arguments." SECRET Approved FoP eabe 20G 0MMB : 79-9998 Q0W0060001-2 Approver Release 2006/03/16: CIA-RDP79- NO TH ..,.j PhonH~ VlET j ~?,S Saly Son Phuc Yen'' R. o ?~ Samneua~ L A O S nghsiang A kVIETNAI .tNha Ti .~_ 2?ltil islOn,~ CAPITAL BINH j t. MILITARY REGI;QN ~ oro' The Indochina -South China Area, s__ South Vietnamese military houndaries ZJ "HnNG IC(1NG MU (U.R) J~l a fJ 6Q. (P ACn) cn(( Bayard QUANG THIEN Nang QUANG NAM ' `' ChuLai I Pakco A 1~~ N g... a % 'ONI I P, at \' a~ 6 \ 24th ip4ial Zone An Khe ~...-.r?.~..-....?-1.IC. i1,? An Khe91 ? DNH I F P Ping-yuan Tien-yang Lao Cai CAMB a a ng x~ ./ Da Lat ~' - - -~-~~ PHNOM?! r/"?? ~~han Rang Bien Moa PENH `? 28M Divisions _ ~? AIGON tP han Thiet _??` wson ei u uI Non 2 d Diva ?" i BOUTH!Rt 191. II CORPS ( i' - an v- TM . IVs Os~ue~ `'~.. - THUA ~OfhT Division Rung Sat Special Zone (VNN) Approved For Release 2006/03/1.6 : CIA-RDP79-00927AO05000060001-2 Approved For Rele 2006/03/16 : CIA-RDP79-00927A00060001-2 SECRET ther analysis of hotography has d sc ose a new SAM site, the 19th, about 8 miles southwest of Hanoi. The site was in the.early to middle stage of construction with par- tially revetted launch pads and three hold revetments noted. No central guidance revetment was visible, nor was any missile- associated equipment seen at the site. Military Activity in the South Retention of the initiative by US and Vietnamese Government forces, and the relative absence of large-scale Viet Cong activ- ity continue to characterize the military situation in South Vietnam-l.; ` A slight decrease in the .over-al1":tempo"of, --activity- ha resulted , in , lower numbers' of casualties on both sides. In the I Corps area, two joint Vietnamese-US operations south of Chu Lai in Quang Ngai Province and south of Da Nang in Quang Nam Province resulted in more than 300 Viet Cong killed. Enemy activity in the I Corps consisted primarily of sabotage to the railroad between Da Nang and Hue and of harassing activ- ity directed against US marines near Da Nang Air Base. In II Corps area, the de- barkation of the First US Cav- alry (Airmobile) Division in Qui Nhon will be completed early next week. Division headquarters will be established at An Khe, and the division's 15,000 combat troops will be employed in areas near Route 19, leading from Qui Nhon into the central highlands. Viet Cong activity is at a low level in II Corps, but is ex= pected to pick up. The only Viet Cong battalion- size attack during the past week occurred in the III Corps prov- ince of Binh Duong on 13 Septem- ber, and resulted in over 40 gov- ernment casualties. In the same province, but farther north, a large government operation in- volving 5,000 Vietnamese, US, Australian, and New Zealand troops is now under way in a Viet Cong base area believed to harbor as many as 10,000 enemy troops. The operation is sched- uled to last from eight to ten days. No significant contact with the Viet Cong has yet been established. SECRET Approved For Rehmse 2006/QUVKLC144NNFAM0092L7AQ 90660001-2 Approver Release 2006/03/16 : CIA-RDP79-07A005000060001-2 SECRET Both government and Viet Cong forces continued to oper- ate at a low level of activity in the southernmost IV Corps area. The increased use of 57-mm.and 75-mm.recoilless rifles by the Viet Cong in the delta area during the past two weeks, however, points to an ample supply of this type of ammunition. The Political Situation During the past week, the government followed through on decisions reached at a 2 Septem- ber meeting of the military Di- rectorate concerning a military congress and a civilian advisory council. A military congress of some 2,000 officers was held in Saigon on 11 September and was generally regarded as a suc- cess. Following a morning of speeches by Chief of State Thieu, Premier Ky, and War Min- ister Co, the afternoon session was left open for frank com- ments from the lower-ranking of- ficers regarding the military government's performance to date. The government plans to convene similar congresses in the future, with the aim of en- abling all Vietnamese officers to participate at one time or another. The military Directorate, according to its secretary gen- eral, hopes to complete the for- mation of a civilian advisory council of about 100 members by 1 November. The council will in- itially serve as an advisory body to the cabinet, and is to be composed of one member elected by each provincial and munici- pal council, with the balance chosen from religious and pro- fessional groups, trade unions, and recognized political parties. The directorate hopes, by care- ful selection of the latter mem- bers, to ensure the council's reliability despite the possi- ble emergence of troublemakers from the provincial and munici- pal councils. Government recourse to mil- itary operations which resulted in the peaceful surrender last week end of some 400 armed dis- sidents from the tribal autonomy movement, FULRO, has posed a pos- sible danger of fostering new re- sentment among hitherto loyal tribesmen. To mitigate this danger, the government on 15 Sep- tember staged a local ceremony, attended by Premier Ky, to re- ceive an oath of allegiance from those who surrendered. Despite this and other contemplated steps to alleviate minority grievances, prob- the long-standing tribal, I lem is likely to persist) SECRET AppfgXV or Rely 6 JAR f IA-R P flQ9%7g4005000060001-2 Approved For RelWe 2006/03/16: CIA-RDP79-00927A00 60060001-2 SECRET A major article on Soviet cultural policy by Pravda chief editor Aleksey Rumyan sev may be symptomatic of serious dif- ficulties within the Soviet lead- ership. In his first signed ar- ticle since February (only his second since assuming the editor- ship last November) Rumyantsev presented a strong defense of the liberal element among the So- viet intelligentsia, and explic- itly attacked Izvestia for its criticism last month of fiction which portrayed the darker side of life in the USSR. The editorial policies of Pravda and Izvestia may diverge on occasion, u 3t is highly unusual for one to attack the other. In previous instances when the two papers began snip- ing at one another--for example, during the Khrushchev-Malenkov contest for power in 1953 and 1954--it became apparent that the debate was evidence of the factional warfare behind the scenes. Rumyantsev's present criticism of Izvestia may thus again reflect a developing power struggle. The possibility that politi- cal infighting may be involved is given further weight by a re- port that party secretary temichev, who is in charge of ideological matters, had apologized for re- cent attacks on the liberal writers. Demichev's last re- ported activity as secretary for ideology was in August when he sharply criticized and extracted an apology from the controversial economist Abel Aganbegyan, al- legedly for having painted in his statistics too black a pic- ture of the Soviet economic sys- tem. Rumyantsev's liberal line is an abrupt change from the carping at liberal writers which has characterized the Soviet press for the last six weeks. The switch is reminiscent of the abrupt shifts in Soviet cultural life which were induced by Khru- shchev's personal interventions and which his successors had promised to eschew. It is unlikely that Rum- yantsev took such a major step without the assurance of support from someone in the Kremlin. It is equally unlikely that this has been forthcoming from such cultural conservatives as Suslov and Polyansky. Of the current leadership, only Mikoyan has been clearly identified with a relatively liberal cultural policy. Podgorny, who was briefly associated with Rum- yantsev in the Kharkov party organization, delivered a Navy Day speech on 24 July with several elements in common with Rumyantsev's article, including emphasis on "individual creative initiative" in economic management. Of the other leaders, only Brezhnev has displayed a faint flicker of cultural liberalism. SECRET Approved For Relpap 2B06/03k4i0921k~0gSW0g001-2 Approver Release 2006/03/16 : CIA-RDP79-7A005000060001-2 SECRET Rumyantsev's attacks on Izvestia may also be related to the pro lem of its chief editor- ship--vacant since May. At the time of Khrushchev's ouster last fall, there was some evidence of jockeying in the leadership for control over appointments to head the major mass media outlets. Some similar pulling and tugging may be in progress now. SECRET Appro tor6ReleasR ap3%I&ilRDPi7P-%~ 7 5000060001-2 5 C1 Approved For Rel 2006/03/1fj~6,;9-00927AOOSW0060001-2 CEAUSESCU VISIT REFLECTS IMPROVED RUMANIAN-SOVIET RELATIONS The 3-11 September meetings in Moscow between Rumanian and Soviet leaders apparently re- sulted in some improvement in Soviet-Rumanian relations. Both sides professed unity on most international issues, particu- larly the Vietnam crisis. The Rumanians, however, took the occasion to reaffirm strongly their independent policies within the Communist world. Soviet treatment of the visit provides further evidence of Moscow's adjustment to Ruma- nian nationalism and its desire to improve relations with Bucha- rest. The Russian leaders clearly recognize that East European re- gimes will continue to follow policies best serving their na- tional interests. As long as the USSR's long-range foreign policy goals are not jeopardized by any precipitate Rumanian move, the Soviets appear reconciled to this new relationship and eager to exploit any benefits they may derive from it. The joint communique con- tained repeated references to both sides' adherence to the principles of equality and non- interference. It has become in- creasingly obvious that recent trends have left the Russians with little choice but to abide in large measure by these prin- ciples. This has helped to al- leviate a good deal of the re- cent tension in Soviet-Rumanian relations, and has also strength- ened Moscow's defense against Chinese charges that the USSR is still determined to "wield the baton" in Eastern Europe. The Russians welcome Ru- manian leader Ceausescu's rel- atively strong attack on US policy in Vietnam and his ap- peals for unity in the Commu- nist world. Moscow can be ex- pected to play up such state- ments as an endorsement of So- viet policies which have been bitterly criticized by Peking. Ceausescu also endorsed for the first time the South Vietnamese National Liberation Front as 25X1 the only "lawful representative of the South Vietnamese people." ince the oscow visit, Ceausescu has already visited Sofia, and will receive Yugoslavia's President Tito in October. Ceausescu also may be planning a trip to Commu- nist China, ossibly as early as Novem SECRET Page 7 WEEKLY SUMM~~,yy 11 SS Approved For Release 2006/03/16: CIA-RDP79-0037A68## 500%160001-2 Approver Release 2006/03/16 : CIA-RDP79-7A005000060001-2 SECRET COMMUNIST CHINA'S TRADE WITH JAPAN REACHING NEW HIGHS Despite Peking's recent coolness toward the Sato govern- ment in Tokyo, Sino-Japanese trade continues to boom. Trade this year will probably top $400 million, a new record. Trade during 1966, currently the subject of high-level negoti- ations, is expected to reach about $500 million, which would probably make Japan China's num- ber one trade partner. Political considerations in the past have had a major impact on the level of Sino-Japanese trade. For example, commerce was almost shut off following the 1958 "flag incident" when a Chinese Communist flag was torn town at an exhibit in Japan. China now is buying a variety of industrial goods-- such as small plants, steel, fertilizer, and construction equipment--and is selling agri- cultural products, coal, and iron ore to Japan. This trade is currently running about 30 percent higher than in the cor- responding period in 1964, and accounts for more than 10 per- cent of China's total trade. Trade next year may even exceed expectations if Tokyo is able to offer government-backed credits to China, a step it has hesitated to take in view of pressure from Nationalist China, another important Japanese trade partner. At present, large-scale Chinese purchases of industrial plants and products have come to a standstill over the credit issue. Earlier this year, Peking canceled contracts for a $30-million synthetic-fiber plant and a cargo ship when Japanese Government credit sup- port was not forthcoming. Plant sales and other deals requiring Japanese Govern- ment-backed credits will probably be major topics at the trade meeting now under way in Peking. These negotiations are under the Liao-Takasaki trade agreement, a quasi-official five-year economic pact concluded in late 1962. Trade through this chan- nel, which has accounted for al- most half of Chinese-Japanese trade in the last few years, is expected to be at the $250 mil- lion level next year. The re- maining trade is carried on be- tween China and Japanese firms which Peking has designated as friendly. SECRET 25 Appro]VGOEFor8ReleWggM'96MSA*RtIA-IA15P~JJ1t9?~A005000060001-2 Approved For Ruse 2006/03/16: CIA-RDP79-00927AOQ00060001-2 SECRET Asia-Africa THE INDIAN-PAKISTANI WAR As fighting continues along the Indian - West Pakistani bor- der, conflicting claims and coun- terclaims of military successes further cloud the picture of ac- tual developments in the subcon- tinent's undeclared war. The two sides have engaged in a seesaw battle five to ten miles across the border from Jam- mu in Kashmir southwest to the Kasur area of West Pakistan. Ground encounters have been gen- erally inconclusive, with both sides sustaining extensive losses in equipment and personnel. The heaviest fighting thus far has occurred near the Paki- stani city of Sialkot, which has suffered considerable damage from several days of intense artillery fire. Fighting continues on the outskirts of the city, where the Indians claim to have "achieved their objectives" and the Paki- stanis claim to have halted the Indian advance. The Lahore front, where In- dians earlier this week reportedly beat back the Pakistani counter- attack, remains relatively quiet, the opposing forces apparently having fought to a standstill with little progress registered by ei- ther side. Indian Defense Minis- ter Chavan, in a conversation with Ambassador Bowles on 13 September, discounted any inten- tion on the part of his govern- ment to capture Lahore itself. Indian objectives, he said, were rather to lessen Pakistani pres- sures on Kashmir and to dispel the assumption that India can be "pushed around." In Kashmir, the Indians have apparently completed the linkup in the Uri-Poonch salient. This would give them control of some 150 square miles of territory pre- viously on the Pakistani side of the cease-fire line and improve the Indian lines of communication, Both India and Pakistan con- tinue to claim success in destroy- ing enemy air bases and to deny similar enemy claims. Throughout the week, the two nations have carried out air raids, including two Indian attacks on Peshawar and a Pakistani raid on a base just north of Calcutta. Both countries remain reluct- ant to extend the fighting to the borders of East Pakistan. Rela- tive quiet reigns in this area, broken only by intermittent shell- ing. Chavan has emphasized that India has no quarrel with East Pakistan. Further air raids from East Pakistan, however, or humiliat- ing defeats for India on the west- ern front could lead to Indian retaliation against that rela- tively indefensible, densely pop- ulated territory, Supply Problems Although the war goes on un- abated, supply and equipment prob- lems appear to be increasingly serious, especially for Pakistan. The Pakistanis have appealed to all countries for aid but have had little success in obtaining anything SECRET Approved For Real ase 2006)b'XC i Y9-00717 1Mt0@&60001-2 Approved Release 2006/03/16 : CIA-RDP79-0 A005000060001-2 Lahore' Kasur. BHUTAN Cooch Behar Chittagong 2.5X1 KABUL * Approved For Release 2006/03/16 : CIA-RDP79-00927A005000060q C.1 JAMMU & KASHMIR -Z (S'.-'? d--) rE-F Peshawar RAWALPINDI Sialkot`y English Rangpur INDI A Bazar EAST PAKISTAN INDIA Dacca ,Jessore Approved For Rele 2006/03/16S,IRQPZ9-00927A00`5W0060001-2 concrete. Any help which may be forthcoming from their CENTO allies, Turkey and Iran, is not expected to contribute signifi- cantly to the Pakistani effort. A shortage of oil is becom- ing a critical factor for the Pakistanis. Most recent esti- mates hold that present reserves are adequate for only a few more days if tankers expected in Ka- rachi do not arrive soon. settlement would be nothing more than a return to a situation they believe was to India's advantage. U Thant's latest suggestion-- an eight day cease-fire during which time he would attempt to find a solution agreeable to both sides--was accepted by India but rejected by Pakistan. Soviet Pronouncements Indian problems do not ap- pear to be as immediate, but food shortages and transportation dif- ficulties are creating internal pressures which could hamper the war effort. Communal and religious dis- turbances have not gotten out of hand thus far but the potential remains as the war drags on and tensions increase. Both coun- tries have taken pains to keep Hindu-Muslim conflicts.from erupting. The UN Role UN Secretary General Thant has returned from his peace mis- sion, which failed to bring about a cease-fire but clarified the Indian and Pakistani political objectives with regard to Kash- mir. Both sides have expressed willingness to accept a cease- fire, but preconditions--among which is Pakistan's insistence on a plebiscite in Kashmir--have pre- vented any agreement. The Pakis- tanis fear that a cease-fire with no guarantee of a future Kashmir The recent spate of Russian pronouncements is highlighted by a note of urgency as well as ex- pressions of Soviet willingness to do whatever possible to facili- tate an early cease-fire. On 11 September, the Soviets released Premier Kosygin's latest letters to this effect, which had been sent on 4 September to both Indian Premier Shastri and Pakistani President Ayub. The second official TASS statement within a week was re- leased on 13 September. Besides repeating Moscow's offer of its "good offices" if desired by both sides, TASS sharpened the USSR's indirect criticism of Peking's attitude toward the crisis. TASS condemned those whose "incendiary statements" help to aggravate the situation, and called on "the whole world" to warn such third parties that they assume "grave responsibility" for their actions. The trend of events has ap- parently heightened Chinese Com- munist concern. After a brief lull during which Peking was probably assessing the latest SECRET Approved For ReleaaVe 2&6/03'/'16 : EKLY G1AShDP79Y009YJ0%0060001-2 Approve Release 2006/03/16 : CIA-RDP79-7A005000060001-2 SECRET military developments, the Chi- nese acted to turn up the pres- sure on New Delhi with a new and even more threatening note de- livered to the Indian charge in Peking on 17 September. The note, which Peking im- mediately broadcast, repeats earlier charges--made most re- cently on 8 September--concern- ing alleged Indian intrusions into Chinese territory along the Sikkim frontier. The latest warning verges on an ultimatum with the demand that India must "dismantle all its military works of aggression on the Chinese side of the China-Sikkim boundary, or the boundary itself within three days of the delivery of the.note." Earlier warnings set no time limit for Indian com- pliance with Chinese demands. By focusing attention on the Sikkim border Peking is probably seeking to underscore the potential threat of a Chinese military thrust down the Chumbi Valley which, if successful, would cut the main Indian com- munication line with Assam and the North East Frontier Agency (NEFA). It does not limit pos- sible Chinese probes to Sikkim itself, however, and warns that the Indians must immediately halt "intrusions" along the entire length of the frontier. It is difficult to see how India can satisfy these Chinese demands. In previous diplomatic exchanges concerning similar Chi- nese allegations, New Delhi has claimed that Peking's charges were baseless and asserted that places cited by the Chinese could not be found on any map. Having set a time limit for Indian compliance and thus limited their freedom of maneuver it seems likely that the Chinese plan to follow their ulti- matum with some military action-- at a minimum with aggressive pa- trolling probes along or across the border. SE CRE T Approve l rftleasgrQ2Q6M3SSM3WRDPI9-Oft2VA6?5000060001-2 Approved For Relew~e 2006/03SEC.P79-00927A005aW0060001-2 ANTI-AMERICAN CAMPAIGN GROWS IN INDONESIA Another wave of anti-Ameri- canism in Indonesia coincides with further pressures against political moderates. The Com- munists spearheading the anti- American agitation are getting increasing support from other groups eager to prove their na- tionalistic and revolutionary fervor. emons ra ons against American consulates in both Surabaya and Medan on 13 Septem- ber included demands that the government send all Americans home. Sukarno continues to accuse the US of subversive plots. In a recent speech he claimed that Indonesia had become neocolonial- ism's "main target in Asia." Two Americans, a missionary formerly stationed in West Irian and a Pan American Airways employee, are being held and interrogated. One is charged with helping West Irian rebels, the other with in- sulting the Indonesian Government. On 1 September Sukarno or- dered the police to expunge hypocrites, foot draggers, false elements and deviators in every field." Several days later he expressed considerable dissatis- faction with the armed forces establishment as a whole and warned police and service heads to "integrate with the people." Subsequently various political and military officials--in an effort to shore up their posi- tions with Sukarno--have uttered their own denunciations of ob- structionists and have variously promised everything from more ef- ficient action to a major purge. The International Anti-For- eign Military Bases Conference-- scheduled to be held in Djakarta from 10 to 15 October and once os- tensibly unofficial--is taking on a totally official appearance. Sukarno plans to address it twice, and Subandrio has promised the preparatory committee full gov- ernment support. The preparatory committee chairman claims that over 500 delegates from 72 countries are expected. Major targets of the 25X1 conference reportedly will be bases in Okinawa, the Philippine Vietnam and Hong Konff_J WESECRET Approved For Release 2001VM: 8 W9-00V2A'%t08&060001-2 Approvecbr ReleaseqeQ,3L1 CIA-RDP79-(7A005000060001-2 A new Soviet-Yemeni mili- tary aid agreement is reported to have been concluded recently. Direct Soviet military aid to Yemen since November 1962, when the first arms agreement was concluded, has amounted to $60 million, mainly ground forces equipment--small arms, tanks, self-propelled guns, vehicles, and artillery--but in- cluding a variety of miscellaneous, 25X1 SECRET Appr Fo ReleaWgIMbl/0` AdYA-RD T94027A%05000060001-2 Approved For Releveb 2006/03/16 : CIA-RDP79-00927A00W0060001-2 SECRET RHODESIANS AGAIN THREATEN Rhodesian Prime Minister Smith, whose attitude is appar- ently toughening, is again threatening a unilateral declara- tion of his country's independ- ence from Britain. Although his threats cannot be disregarded, they may be an effort to dragoon London into granting a further measure of de facto independence to his white minority govern- ment in Salisbury. Since coming to power last October, Britain's Labor govern- ment has stood adamant against total independence for Rhodesia as long as the 93-percent Afri- can majority lacks a substantial voice in the government. Smith, backed by the white electorate, has pushed hard for independence. Confronted with London's threat to impose sanctions, he retreated from unilateral action in favor of negotiations, no matter how dim the prospect of their suc- cess. On 11 September, however, Smith told the British high com- missioner in Salisbury that there was "no longer any hope of a negotiated settlement." Earlier, he had told the Rhodesian Parlia- ment that independence was "im- minent" and that "nothing will stop us." The current issue is whether Rhodesia can send its own ac- credited diplomats abroad. In July, the Rhodesian Government announced it intended to establish a diplomatic mission in Lisbon-- important because of its control of neighboring Mozambique and Angola. Britain has warned the TO DECLARE INDEPENDENCE Portuguese that Rhodesian rep- resentation must be through the ITK Embassy. It has told the Rhodesians that if they persist in their course, the UK will expel Rhodesian representatives from its embassies in Washing- ton, Bonn, and Tokyo. Despite his statements and threats, Smith probably would prefer to continue negotiations with the UK. He has agreed to hold talks in Salisbury with British Commonwealth Relations Secretary Bottomley in mid- October. He has implied that he would not declare independence at least until after the talks but has said nonetheless that the two governments would have to reach a decision "one way or the other" during Bottomley's visit. In late October, fol- lowing payment for the tobacco crop--Rhodesia's principal for- eign exchange earner--Salisbury would be best able to withstand economic sanctions. The pressures are great on both sides to postpone a con- frontation. Smith, who is shrewd if not always cool-headed, genuinely fears the consequences of sanctions. For its part, the Wilson government, in trouble at home, would not want to be- come embroiled in a question which is not popular in Britain. Furthermore, in applying sanc- tions and upsetting trade with Rhodesia, London would lose the advantages of its favorable trade balance with Salisbury--at a 25X1 time when Britain suffers from a serious balance-of-paymonts deficit. SECRET Approved For Re?d a A%6/OYA 103PS3 t Y009a7JAN00060001-2 Approver Release 2006/03/16 : CIA-RDP79- "227A005000060001-2 SECRET Europe GREEKS STILL TRYING TO FORM GOVERNMENT Greek politicians are still seeking to break the deadlock over forming a government that followed King Constantine's dis- missal of Prime Minister Papan- dreou two months ago. The King is expected to turn for a second time to Stephan Ste- phanopoulos, who was deputy pre- mier in Papandreou's Center Union cabinet. Five weeks ago Stephan- opoulos abandoned a brief effort to head a government when his soundings pointed to failure. To succeed this time, he needs the backing of the two former opposi- tion parties, the right-of-center National Radical Union and the small, conservative Progressive Party, plus the support of seven or eight more Center Union depu- ties than have yet defected from Papandreou. The National Radical Union leader has agreed to support him and the Progressive Party prob- ably will follow suit. The palace is reported to believe that about ten additional Center Union deputies will back Stephan- opoulos when the vote comes and give him a majority. If Stephanopoulos once again fails, the King will probably turn to a nonpolitical figure to seek a mandate, perhaps Harilaos Mitrelias, the president of the Council of State, an administra- tive court. 25X1 SECRET Approved-ageRe1 seJRWy/Jb"1RDPJf-4a A895000060001-2 Pa lc Approved For Relcaee 2006/03/16 : CIA-RDP79-00927A00?W0060001-2 SECRET EEC AFTER DE GAULLE'S PRESS CONFERENCE De Gaulle's 9 September press conference has raised the prospect of an indefinite extension of the Common Market crisis. Although he did not completely close out the possibility of a settlement, De Gaulle indicated that his terms for resuming the "Brussels negotia- tions" were a government-to-gov- ernment agreement on the agricul- tural financing issue and agree- ment to reduce, if not to do away with, the authority of the com- munity's institutions. De Gaulle's conditions amount to a demand that the treaties of Rome and Paris be fundamentally re- vised, despite his personal under- taking in 1958 to uphold them. The EEC Commission's power of initia- tive, the supranational nature of the commissioners' office, and the community's progress to majority voting which De Gaulle so strongly attacked are all firmly provided by these treaties. Ambassador Tuthill has noted that even if the present commis- sioners were replaced as Paris de- sires, the new ones would be equally bound to uphold the commu- nity treaty, and any "gentlemen's agreement" to prevent majority vot- ing would have no validity at law. As for the common agricultural pol- icy, De Gaulle's stand on community powers has made it more difficult for the others to meet French de- mands, since community financing of that policy would require ad- ministration by effective institu- tions. France's dismayed partners in the community are far from agreement on what to do. Dutch officials be- lieve the Netherlands will not try to maintain the EEC at the price of "removing its essence," and The Hague apparently will work for a hard common front against France. Moreover, Italy and all three Bene- lux states may feel it necessary to reaffirm their support for the commu- nity out of fear of the effects of De Gaulle's nationalism. The US Mis- sion has reported that Benelux sources were "clearly shocked" because of the possible consequence in West Germany of De Gaulle's assertion of freedom from treaty commitments. Even the German permanent delegate has noted the "obvious attraction to certain Germans" of De Gaulle's doctrine. A digging-in to defend the sanc- tity of obligations under the Rome Treaty, however, seems certain to be opposed by some within the member countries who would wish to avoid the risks involved. In Bonn both Chancellor Erhard and Foreign Minis- ter Schroeder have reservations about the principle of supranation- ality and might seek some accommo- dation to the French short of vio- lating the treaties. Moreover, the difficulty France's partners face in standing firm against it and the po- litical unacceptability to them of giving in entirely are likely to lead to a revival of talk about 25X1 Britain's role in Europe, an EEC- EFTA rapprochement, or a bigger and wider European free trade SECRET Approved FoAtHea g 200 W: U)NOP79-01M270905000060001-2 Approver Release 2006/03/16 : CIA-RDP79-f 09"17A005000060001-2 SECRET LABOR PARTY DEFEATED IN NORWAY The Norwegian Labor Party's defeat in national elections on 12-13 September paves the way for formation of Norway's first elected nonsocialist government in some 30 years. The balloting was marked by a swing to the center par- ties and sizable defections by Labor's supporters to the splinter neo-Communist Social- ist People's Party (SPP). The SPP, which received about 6 per- cent of the vote--more than double its share--in 1961, si- phoned off enough votes in Labor strongholds to assure victory for nonsocialist candidates. Labor also appears to have been the victim of a trend to the right by younger voters, a de- velopment of particular benefit to the Liberals and the Center party. The campaign was fought principally on domestic issues such as housing, inflation, and the efficiency of state-run in- dustries. The four nonsocialist parties, like Labor, in varying degrees all support Norway's ties with NATO, while only the SPP and the Communists advocate withdrawal from NATO and adop- tion of a neutral foreign policy. A new element in the cam- paign was a pre-election pledge by the nonsocialists--Conserva- tives, Liberals, Center, and Christian People's Party--to co- operate in a coalition govern- ment if they secured a majority in parliament. They have emerged with a comfortable majority, con- trolling 80 of the 150 seats--al- though they gained only a fraction in percent of total vote as com- pared with 1961. Labor dropped from 74 to 68 seats, but still retained its plurality by a wide margin. The outlook for the prospec- tive four-party coalition is un- certain, not least because of the compromise and accommodation which will be necessary to bring and to keep the parties together. The coalition will represent diver- gent interests such as farmers, business groups, religious ele- ments, and radical intellectuals, and the leaders of the new govern- ment will be hard pressed to main- tain discipline and reconcile the conflicting demands of these groups. John Lyng (Conservative), Bent Roeiseland (Liberal), and Per Borten, a Center (agrarian) leader, are the most likely candi- dates to head the new government. Labor will probably be con- tent for the time being to remain in opposition, assessing its own performance in the election and strengthening itself for a fu- ture return to power. It will probably have frequent opportuni- ties to exploit tensions among 25X1 he government. parties. 25X1 SECRET Approveok r R *as4v22f 1D3S1M RDP?9 t7f1605000060001-2 Approved For Rele 2006/03/16: CIA-RDP79-00927A00,5~OQ0060001-2 COMPOSITION OF NORWEGIAN STORTING (PARLIAMENT) FOLLOWING ELECTIONS 12 -13 SEPTEMBER 1965 Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 Approveefbr Release 2006/03/16 : CIA-RDP79-00927A005000060001-2 SECRET Western Hemisphere CANADA BEGINS CAMPAIGN FOR NOVEMBER ELECTION On 8 November Canada will hold its third national election in four years. The campaign is beginning in an atmosphere of popular disinterest, and no one issue is likely to dominate. Al- though recent opinion polls show a strong Liberal lead over the Tories, a third of the electorate are reported undecided how they will vote. Prime Minister Pearson ap- pears confident that his Liberal government's popularity has grown sufficiently to enable it to in- crease its parliamentary strength by about 20 seats, winning major- ity control. In the present Par- liament the Liberals have 127 seats, the Conservatives hold 92, and the remaining 42 seats are divided among smaller parties. Pearson apparently intends to focus his campaign on his gov- ernment's legislative record in the social welfare field, the current economic prosperity, and the recent advantageous wheat sales to the Soviet Union. Opposition leader John Dief- enbaker, who at 70 is probably running his last campaign, has already served notice that he will renew charges of inef- ficiency and corruption in gov- ernment. As in past campaigns, he will probably try to exploit the concern of some Canadians over the extent of US control of Canadian industry and the tendency of the Pearson govern- ment to follow the US in for- eign affairs. Each leader is already charging the other with en- dangering national unity, and this divisive subject is likely to assume greater prominences the campaign progresses. SECRET Approved,bPpr Ras eNZ@ M3F WRDI219 @Hi7f05000060001-2 age Approved For Release 2006/03/16 : CIA-RDP79-00927AOOW0060001-2 SECRET DEVELOPMENTS IN THE DOMINICAN REPUBLIC Fears are mounting in the Dominican Republic that Presi- dent Garcia Godoy is compromising his central position by too many concessions to aggressive left- ist forces. Moderate and con- servative civilians share the feeling of armed forces leaders that the provisional President's efforts to gain the support of Juan Bosch's Dominican Revolu- tionary Party and more extremist rebel elements have encouraged the left to step up its announced second, or political, phase of the revolution. Garcia Godoy is proceeding with his intention of creating a broadly based regime by filling government positions with both political neutrals and persons representing a wide variety of party loyalties. Several sus- pected leftist extremists have been named to sensitive posi- tions, especially in the legal field. For example, the new at- torney general until recently was president of the Communist- dominated lawyers' association Leftist forces are making a determined drive to improve their positions in the govern- ment's bureaucracy, educational institutions, and labor organi- zations by pressuring for the removal of moderates and conserv- atives from key posts. The provisional government has made little progress to date on collecting arms and bringing law and order to the rebel zone in Santo Domingo. The return of rebel combatants to their homes in the provinces has begun, but the returning rebels have assumed the role of conquering heroes-- a tactic that could easily provoke clashes with wary army and po- lice units. In addition to its concern over the issue of Communist in- filtration of the government, the military is displeased over the timing and handling of General Wessin's ouster from the country on 9 September. The lack of ap- propriations to pay troops and meet necessary operational ex- penses is also causing concern SECRET Page 21 WEEKLY SU Approved For Release 2006/03/16: CIA-WV9-0 01 972 7A tO&h60001-2 Approve^r Release f!{ R6r,CIA-RDP79- 7AO05000060001-2 CUBA'S CHE GUEVARA STILL MISSING Six months after his disap- pearance from the Cuban scene, Ernesto "Che"" Guevara's status and whereabouts remain a mystery. He has apparently not fallen permanently from grace, since his name and role in Cuba's recent past are still featured promi- nently in regime media. His wife is regularly accorded positions of honor at important celebra- tions, and Guevara's picture was prominently displayed at the 26 July ceremonies. Castro has lauded him publicly and said in June that Guevara will reappear at a time of his own choosing. No explanation for Guevara's disappearance is completely satis- factory. There seems to be no good reason why his death or se- rious illness would be concealed. There is not one firm report to substantiate press reports which have placed Guevara in almost every Latin American country, fomenting revolution at Castro's behest. Furthermore, it seems unlikely that Castro would risk being caught meddling so blatantly in other countries. The fact that Guevara dis- appeared shortly after his re- turn from Africa suggests that some aspect of this much-publi- cized junket displeased Castro. For example, while Guevara was in Africa, Castro announced plans to reward outstanding sugar workers. Guevara, an exponent of moral as opposed to material incentives, reacted by sharply criticizing the Yugoslavs for their use of workers' bonuses and revision to "capitalist methods." Again, Guevara's in- cautious references to the So- viet Union's economic interven- tion and poor advice may have led Castro to subject him to a tem- porary discipline in the hope of bringing his ideas into con- formity. Because of the steady and favorable publicity he has been receiving, the stage is set for Guevara's return to public view at some time. He is not likely, however, to regain the influenc e he once exercised. SECRET Page 22 WEEKLY SUMMARY 17 Sept 65 Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 25X1 25X1 Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 Approved For ReleaseXefff: CIA-RDP79-009Z7A005000060001-2 Peruvian President Bela- unde's decision to form a con- gressional cabinet appears to be aimed at effecting a more harmonious relationship between the executive and legislative branches. The wide gap hereto- fore existing between the presi- dency and the opposition-domi- nated Congress has often impeded constructive lawmaking and led to opposition accusations that the President and his party, as represented in Congress, were not in accord. With the exception of the three armed forces ministers, all members of the new cabinet hold congressional seats which they may continue to occupy but without the right to vote. Seven of the new ministers, four sena- tors,and three deputies belong to Belaunde's Popular Action Party (AP). The two remaining civilian portfolios are held by deputies of the Christian Democrat Party, political ally of the AP. None of the new cabinet members has even held a ministerial post. The minister of public health, Senator Daniel Becerra de la Flor, also heads the cabinet as prime minister. Becerra is a distinguished physician, a personal friend of Belaunde, and reportedly an able politician. His relations with all sectors of the AP are good and his appointment has been favorably received by the opposition parties. Three of the new ministers (foreign affairs, government, and finance) have in the past been suspected of Communist or far-leftist associations. Re- cent information on their pres- ent political complexion is frag- mentary. The US Embassy in Lima reports that their records in the legislature since 1963 appear to be of a conservative or moderate nature. Rumors of an impending cabi- net change began to circulate last week. Despite public and private enials by opposition congressmen, cabinet members apparently persisted in the belief that an interpellation and censure were planned. President Belaunde, assured by the opposition leader- ship that no censure would occur, encouraged his cabinet to meet the congressional request. On 13 September, however, all cabinet members resigned. Ranking military officers reportedly had no plans to inter- fere in the political contest between the cabinet and Congress and they may be pleased to see a new trio heading the ministries of War, Navy, and Air, thus clear- ing the way for a er of top- level promotions. 25X1 25X1 25X1 SECRET ,D-t- 65 Approv&'gSr24eleas%qWO3SNtM A-R6~7~-BO UZTA005000060001-2 25X1 Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 Approved For Release 2006/03/16 : CIA-RDP79-00927AO05000060001-2 Approver ReleasMETCIA-RDP79-0097A005000060001-2 Approved For Release ~.'a.( O J1 IA-RDP79-00927AO05000060001-2