WEEKLY SUMMARY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00927A005600020001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 30
• Document Creation Date: December 21, 2016
• Document Release Date: July 11, 2008
• Sequence Number: 1
• Publication Date: December 30, 1966
• Content Type: SUMMARY

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Secret
DIRECTORATE OF
INTELLIGENCE
WEEKLY SUMMARY
Secret
NAVY review
completed.
938
30 December 1966
No. 0322/66
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SECRET
(Information as of noon EST, 29 December 1966)
Page
1
VIETNAM
3
Only
truce
a few significant violations marred
in South Vietnam, but once it was
the
over
Christmas
the Com-
munists launched a battalion-size attack
on
an Ameri-
can artillery position in Bin Dinh Province, inflict-
ing heavy casualties on US forces. The North Viet-
namese took advantage of the cease-fire to move sup-
plies south by sea. Communist propaganda continues
to praise guerrilla warfare. In Saigon, port work-
ers have organized strikes to protest the use of US
troops in offloading duties.
PEKING KEEPS PRESSURE ON MACAO
If Portugal accepts Peking's latest demands for a roll-
up of Chinese Nationalist activities, Lisbon's rela-
tions with Taipei will be placed under additional
strain.
Europe
LUNA 13 CAPS SUCCESSFUL YEAR OF SOVIET LUNAR EXPLORATION 11
In the fifth successful Soviet lunar operation of the
year, Luna 13 is sending back pictures and soil data.
SECRET
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S 11X I . E' 1'
ITALIAN COALITION FACES NEW TEST
With mutual grievances between the Christian Democrats
and the Socialists welling up again, the coalition
faces a major test next month when all three govern-
ment parties meet to set priorities for the legisla-
tive program.
NO HOLIDAY PASSES FOR WEST BERLINERS
East German insistence on unacceptable political con-
ditions was probably in part an effort to test the new
West German Government's stated intention to take a
more flexible attitude toward the East.
Middle East - Africa
JORDAN DELAYS FINAL DECISION ON ENTRY OF FOREIGN TROOPS 16
Jordan worn a reprieve from the United Arab Command by
playing or Arab fears of another war with Israel and
by seeming to adopt the most strongly anti-Israel po-
sition of all.
"NONPOLITICAL" GOVERNMENT TAKES OVER IN GREECE
Following the fall of the Stephariopoulos regime, King
Constantine has installed a transitional government to
rule until general elections can be held next May.
CONGO INTENSIFIES CONFRONTATION WITH BELGIAN MINING
COMPANY
President Mobutu has sharply raised the stakes in his-
duel with Union Miniere and has moved much closer to
"Congolizing" the company inside the Congo.
SECRET
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NIGERIAN REGIME WEIGHING MILITARY ACTION AGAINST
EASTERN REGION
With the governor of the Eastern Region continuing to
dodge a meeting, the leaders from the other regions
have apparently concluded
against the Easterners.
it may be time to act
Western Hemisphere
THE WEEK IN PERSPECTIVE 21
ARGENTINE GOVERNMENT SPLIT OVER LABOR POLICY
A serious division has developed within the Ongania
government as the result of a hard-line faction's
attempts to prevent any compromise with labor unions.
BRAZILIAN CONGRESS CONSIDERS CONTROVERSIAL LEGISLATION
Many influential legislators are deeply concerned
about several key provisions of President Castello
Branco's new constitution, and a draft press law has
drawn an immediate protest from many press groups.
PANAMANIAN GOVERNMENT OPTIMISTIC ABOUT CANAL
NEGOTIATIONS
Foreign Minister Eleta has sched-
uled a trip to the US to try to speed up negotiations.
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FAR EAST
The 48-hour Christmas cease-fire in Vietnam ended
with routine Communist charges of "grave violations"
by US forces. During the period, there were 102 Com-
munist-initiated incidents, most of minor violations--
a rate slightly lower than during the truce period
last year. Hanoi's effort to take advantage of the
cease-fire was evident in the sighting of 500 supply-
laden boats off the coast of southern North Vietnam.
Another possible Viet Cong attempt to discredit
the Saigon military regime was reflected in an unsuc-
cessful attempt on the life of a prominent member of
the Constituent Assembly--only 20 days after the as-
sassination of another outspoken assembly critic of
the South Vietnamese Government.
The mounting campaign against Liu Shao-chi and
Teng Hsiao-ping suggests that the struggle between
contending forces in Peking may be approaching another
critical juncture. Red Guard posters denouncing Liu
and Teng were followed by a mass rally on 27 December
at which demands reportedly were made that both men
be stripped of all power and offices. The posters al-
leged that they had confessed opposition to the "cul-
tural revolution" and had pledged loyalty to Mao and
Lin Piao at party conferences in October and November.
Having extracted humiliating concessions from
Macao authorities following riots in early December,
the Chinese Communists are now pressing for the elim-
ination of any Chinese Nationalist presence or activ-
ities in the colony. Portugal's desire to placate
Peking may prompt the Taipei government to break dip-
lomatic relations with Lisbon.
The Chinese Communists are also seeking to en-
courage opposition to the Suharto government in Indo-
nesia on the part of left-wing groups and the overseas
Chinese community. The Chinese have expressed optimism
that the power struggle in Indonesia and the country's
economic problems can be exploited to hasten the down-
fall of the Suharto government. Moves by President
Sukarno and his supporters to counter the government's
campaign to depose him have sharpened tensions in
Djakarta.
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THAILAND
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SECRET
SECRET.
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VIETNAM
The Christmas truce period
was relatively quiet this year.
Only a few major incidents were
reported during the 48-hour cease-
fire. Once the cease-fire was
over, however, the Communists
launched their first attack of
the war on an American artillery
position.
Many of the 102 incidents
stemmed from Communist reaction
to the reconnaissance activities
of the allied forces. Friendly
casualties during the cease-fire
were 34 killed (three US) and 43
wounded (23 US). There were 12
known Communist losses.
The Communist attack on a
US artillery position occurred
in Binh Dinh Province near Bong
Son. Units of the lst Cavalry
Division of Operation THAYER II,
supported by artillery, air
strikes, and heli-lifted rein-
forcements, repulsed the attack-
ers, but suffered casualties of
24 killed and 48 wounded. The
enemy force--possibly elements
of the 22nd North Vietnamese
Army (NVA). Regiment of the lst
NVA Division--began their attack
with a heavy mortar barrage
against the American positions.
During the battle that followed,
the VC overran several gun em-
placements, destroying one 155-
mm. howitzer and damaging several
more. A total of 43 enemy troops
were killed.
South Vietnamese paratroopers
began a multibattalion operation--
code-named DAN CHI 270/D--in the
Mekong Delta province of Chuong
Thien on 26 December. This op-
eration, the most massive allied
airborne assault of the war, is
targeted against the Viet Cong
bastion in the U Minh Forest.
Three Viet Cong battalions--the
303rd, 306th, and 309th--with a
strength of 1,800 men are believed
to be operating in the area.
More than 60 Viet Cong have been
reported killed and several cap-
tured. Friendly losses are
light.
North Vietnamese Take Advantage
Of the Christmas Cease-Fire
US destroyers, patrolling
off the southern North Vietnamese
coast, reported sighting almost
as many boats in the two days of
the truce as had been seen since
the patrolling began on 26 Octo-
ber. Included in the 500 or so
sightings were 15 large steel-
hulled ships.
SECRET
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Communist Propaganda Continues
To Emphasize Guerrilla Warfare
Both Hanoi and Liberation
Front propaganda continue to ex-
tol the virtues of guerrilla
warfare. One of the latest
tributes was broadcast by Radio
CIanoi on 22 December. It was
written under the pseudonym Cuu
Long, an unidenti:=ied author in
South Vietnam who has written
extensively on th=_s subject in
the past few months.
Although the author made
the customary obe:.sance to con-
ventional tactics he credited
the guerrillas with more than
one third of tota_. US/GVN casual-
ties. Cuu Long a--.so stressed
the importance of guerrillas in
the battle for po_.itical control
of the rural popu_.ation. He
claimed that the Viet Cong no
longer are relying exclusively
on the guerrilla warfare of the
past but are using the superior
"modern science oj` guerrilla war-
fare" combining "widely known
experience of long standing with
people's creativeness."
Cuu Long's eral.te:d claims
for the capabilit_.es of "modern"
guerrilla warfare may be designed
to help justify the new emphasis
on smaller scale operations.
Other recent articles in the Viet-
namese Communist press indicate
that the decision to re-emphasize
guerrilla tactics met with con-
siderable opposition.
Political Developments in Saigon
Saigon's already congested
port situation was further com-
plicated this week by a strike of
several thousand dock workers that
began on 26 December. Ostensibly,
the walkout at the city's main
port was prompted by the layoff
of some 600 Vietnamese stevedores
at New Port, a recently contructed
all-US facility. The Vietnamese
workers at New Port had been hired
on only a temporary basis, but
local union leaders ordered the
strike in support of private
stevedore companies whose con-
tracts at the main port expire
this weekend. US troops were
moved into the military sector at
the port to remove cargo essen-
tial to the war effort.
Continuous negotiations have
failed to end the strike. More-
over, the rebel union agitators,
who are at oods with the presi-
dent of the national confedera-
tion of labor unions, have or-
dered a general strike throughout
Saigon on 29 December unless the
US agrees in principle to stop us-
ing troops for offloading. The
Ky government, however, is report-
edly preparing to intervene for
fear that a prolonged strike could
have serious economic repercus-
sions.
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In a broader sense, the strike
touches on the sensitivity of the
Vietnamese to the increasingly
large role the US is playing in
the military effort. There have
been recent indications that in-
fluential Vietnamese in and out of
government are attempting to por-
tray themselves as champions of
Vietnamese sovereignty. Demands
that commercial aircraft on con-
tract to the US military pay land-
ing fees and claims that only the
Vietnamese Army can carry out
pacification activities, as well
as the port strike all reflect
this sensitivity.
SECRET
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PEKING KEEPS PRESSURE ON MACAO
Peking's current demands on
Macao authorities center on the
elimination of all Chinese Na-
tionalist activities in the
Portuguese enclave.
The Portuguese appear deter-
mined to placate Peking, even at
the risk of provoking the Chinese
Nationalists to break relations.
Lisbon has unconditionally ac-
cepted all the demands of the
Chinese Communists stemming from
the recent riots--although some
details remain to be worked out
--and is taking steps to prevent
Chinese Nationalist operations
in Macao.
According to
the- press, the Nationalists have
protested to Portugal concerning
the actions of the authorities
in Macao.
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EUROPE
The week saw no major new problems develop,
but a few steps, though limited, were taken to-
ward resolving some old ones.
The 21st session of the UN General Assembly
has ended with more accomplishments to its credit
than usual and with rather less acrimony than ap-
peared likely when it convened. The conclusion of
a space treaty, the momentum given to a non-
proliferation agreement, and the reappointment of
U Thant to a second term count as successes. The
Chinese representation issue was met this year
with relative ease, while the explosive South West
Africa issue was handled with less difficulty than
had been expected.
The European Economic Community, which began
the year in crisis, ended it on a comparatively
productive note, although there are difficult and
divisive issues immediately ahead, particularly
with the French. Agreements within the Community
on tariff concessions to be offered in forthcoming
bargaining with the US and others were arrived at
earlier than had been expected, and the way has
been cleared for serious bargaining to begin next
month.
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USS,RI' 19.66 .LUNAR EXPLORATION PI20GRAM
VEHICLE
LAUNCH
DATE MISSION
LUNA 9 '31 Jan "Soft", landing and take
photographs
LUNA 10
11 Mar
Orbit moon; get scientific
data
LUNA 11
24 Aug
Orbit moon and photograph
surface
LUNA 12
22 Oct
Orbit moon and photograph
surface
LUNA 13
21 Dec
Soft"" landing and take
photographs
3' resembles Luna 9, shown above
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LUNA 13 CAPS SUCCESSFUL YEAR OF SOVIET LUNAR EXPLORATION
The Soviets ended a year of
successes in lunar exploration on
24 December by soft landing Luna
13, which is sending back pictures
and soil data from the moon's
surface.
Luna 13 was the fifth suc-
cessful Soviet lunar operation of
1966 and the second to make a soft
landing. A sixth lunar attempt
--Cosmos 111--failed to leave the
earth's orbit.
Lunas 9 and 13 both landed
in the Sea of Storms, as did the
US Surveyor I. The two Soviet
capsules were similar and both
took pictures of surface details,
but Luna 13 added two soil-
analysis experiments--one for
hardness and another for density.
The data obtained by this method,
while valuable, does not directly
measure landing conditions as
did the US Surveyor I. The US
vehicle not only tested soil tex-
ture and firmness by taking a
picture of its landing leg resting
on the surface, but also simulated
the conditions of an Apollo land
ing.
Soviet statements have indi-
cated that the lunar landing mis-
sions are intended to compile a
map of the Sea of Storms. However,
this would be a long and difficult
task because of the limited
horizon of the camera, which
sits atop a two-foot sphere.
The other three Soviet lunar
operations in 1966--Lunas 10,
11, and 12--orbited the moon.
Only one, Luna 12, succeeded in
taking pictures, and these were
of poor quality. Major improve-
ments will be necessary to ob-
tain the pictures needed to make
large-scale maps for cosmonaut
landings.
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ITALIAN COALITION FACES NEW TEST
The uneasy partnership of
Italy's Christian Democrats and
Socialists is under strain again.
The two parties' nutual grievances
are due to be aired in January at
a top-level coalition meeting
called to set legislative priori-
ties. Unless the political atmos-
phere cools, the government--which
also includes the small Republican
Party--will face a major test at
that time.
Last week, Socialist deputies
--with help from Communists and
some Christian Democrats--forced
through an amendment to a farm
subsidy bill. The amendment, op-
posed. by a majority of Christian
Democrats, called for channel-
ing EEC parity payments to Italy's
olive oil producers through a
government agency rather than
through a Christian Democratic -
controlled agricultural consor-
t--" um. The issue was a technical
one with no direct implications
for governmental stability. How-
ever, the Christian Democrats
were disturbed that the Social-
ists chose to force through the
amendment with Communist support
despite prior agreement in the
cabinet on the original bill. The
affair illustrates how easily
innate suspicions between the
two parties rise to the surface
to create political tension.
The Socialists are dissatis-
fied with the slow pace of the
government's legislative program,
as well as with the complicated
parliamentary procedures that
have contributed to delaying pas-
sage of the Five Year National
Economic Plan (1966-70). They
have also been disturbed by the
results of local elections in
November in which they did less
well than the Christian Demo-
crats. Some Socialists believe
their party should quit the
coalition now so that it can
enter the national elections,
due by 1968, unencumbered by
participation in a "do-nothing"
government.
The Christian Democrats are
uneasy over the possibility that
their dominant position in the
government will eventually be
challenged by the unified Social-
ists. Adding to their concern
has been an aggressive Socialist
campaign to extend the party's
political patronage by putting
forward candidates for a whole
series of subcabinet posts.
Moreover, personal jealousies
against Premier Moro persist,
as does some belief that a more
vigorous premier is needed to
refurbish the party's image in
the pre-electoral period. Some
Christian Democrats argue that
the party could gain an advan-
tage by forcing early elections.
Responsible leaders in both
parties want to keep the coali-
tion together until 1968. How-
ever, they will have their work
cut out for them if they are go-
ing to get an acceptable compro-
mise on legislative priorities at
the top-level session next month.
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NO HOLIDAY PASSES FOR WEST BERLINERS
The East Germans insisted
on political conditions for a
pass arrangement this year with
the result that, for the first
time since 1963, no West Berlin-
ers made holiday visits through
the Wall. Previously the West-
ern side has been able to deny
that negotiations with the East
German regime implied recogni-
tion of its sovereignty by means
of a so-called "savings clause."
This was a joint statement that
both sides agreed to disagree
on terminology. This year, the
East Germans refused this and
negotiations ended.
The stiff East German atti-
tude was probably in part an ef-
fort to test the new West German
Government's stated intention to
take a more flexible attitude
toward East Germany.
The hardening of the East
German position is probably also
a reaction to the prospect of im-
proved West German relations with
the other countries of East Eu-
rope, a prospect that is highly
displeasing to Pankow.
SECRET
The East Germans, however,
have not so far carried over their
tough attitude on the pass issue
to other areas of contact with
West Germany. They withdrew sim-
ilar demands for political condi-
tions in connection with the open-
ing of a new autobahn bridge on
the border on 19 December, and
they are relatively relaxed in
interzonal trade matters. The dif-
ference in approach may be intender
to buttress the Comzhunists' con-
tention that West Berlin is not a
part of West Germany, a position
that has been challenged anew by
the participation of former Ber-
lin officials in the new Bonn gov-
ernment.
The Bonn government and the
Senat were willing to make a con-
cession on the savings clause last
October in order to obtain a hard-
ship pass agreement, but they were
not under enough public pressure
for a Christmas agreement to do so
again. The hardship agreement--
which provides for emergency passe:
for such family matters as births,
marriages, serious illness, and
death--lapses at the end of Janu-
ary. The East Germans presumably
hope that public pressure will
force the Senat into concessions
when negotiations are reopened.
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MIDDLE EAST - AFRICA
Continued high tensions among the Arab states
dominated the week's developments.
King Husayn, still adamant against the entry
into Jordan of troops from other Arab states, last
weekend succeeded in persuading the United Arab
Command to delay a final decision on this move.
Bomb explosions near government buildings in Amman
have freshly dramatized the radical nationalist
pressures he faces. In Saudi Arabia, Husayn's ally
King Faysal is also feeling pressure in the form
of bombing incidents carried out by Yemeni terror-
ists probably inspired by Nasir. The incidents have
been played up by Cairo radio. Nasir has also ac-
corded Faysal's ousted predecessor, former king
Saud, a friendly welcome to residence in Cairo.
Tensions have generally eased in other Middle
East trouble spots. In Athens, the "nonpolitical"
Paraskevopoulos government seems well launched in
its mission to preside over preparations for gen-
eral elections next may. In India, the Punjab
Sikh leaders' decision not to carry out their plans
for self-immolation has given Prime Minister Gandhi
a breathing spell. Ceylonese Prime Minister Senana-
yake's opponents appear to be counting on a mid-Janu-
ary by-election to register protests against last
week's slash in the rice ration.
In tropical Africa, Mobutu's government is
troubling the Portuguese as well as the Belgians.
Deteriorating Congolese-Portuguese relations have
most recently been punctuated by raids into Angola
by Congo-based Angolan insurgents, and Lisbon has
warned that it would retaliate. President Mobutu
has also taken a decisive step toward gaining con-
trol of the Union Miniere mining company's Congo-
lese assets. In Nigeria, the federal regime is
further developing plans for military action
against the recalcitrant Eastern Region
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JORDAN D11AYS FINAL DECISION ON ENTRY OF FOREIGN TROOPS
At a United krab Command (UAC)
meeting in Cairo last weekend,
Jordan parried a final decision
on stationing other Arab troops
on its territory. The UAC meeting
had been called to carry through
on the 10 December decision of the
Arab Defense Council, which Jordan
had accepted, to deploy Iraqi and
Saudi troops in west Jordan along
the Israeli border.
Jordan won reprieve by
playing on Arab fears of another
war with Israel z.nd by being, in
effect, more Aral than the others.
The Jordanian representative again
~axpressed Amman'E agreement to the
10 December decision but then in-
sisted upon full implementation
of the defense council's plan for
meeting the Israeli threat--a plan
that calls for additional military
and financial steps by the other
Arab states. Those conditions
on Jordanian acceptance of foreign
Arab aid have necessitated another
higher level mee-:ing of the de-
fense council that probably will
be :held early in February.
Jordan has jeen reinforced
in its determination to avoid hav-
ing other Arab fDrces on its ter-
ritory because of information it
has received that Palestine Lib-
eration Organization (PLO) troops
wearing Iraqi insignia would be
part of the Iraqi contingent slated
to enter Jordan. King Husayn
continues to regard the PLO as a
subversive menace.
critical of Jordan's delaying
tactics. According to a PLO an-
nouncement, that organization has
responded by forming a "secret"
revolutionary council aimed at
overthrowing the King. The PLO
also claims to be taking "all
necessary measures" to prepare for
the entry of its Palestinian army
into Jordan despite Husayn's op-
position.
King Husayn's reorganization
of the Jordanian Government under
the same prime minister, Wasfi Tal,
has had a negative impact on
Palestinian west Jordan, where
antipathy toward the government
has been strongest. The two
Palestinians added to the cabinet
--including the new foreign min-
ister, Abdullah Salah--have no
broad base of support on the West
Bank.
Terrorist activity within
Jordan is becoming more serious.
Four bombs, presumably planted by
Palestinians, exploded the night
of 26-27 December in the area of
Amman where most government minis-
tries are located. The following
night, two more bombs exploded in
the government's broadcasting
station. Jordan has charged that
a Syrian Army patrol crossed the 25X1
border into Jordan and murdered
a Jordanian security guard on
28 December.
The official radio and press
in Cairo and Bachdad have been
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"NONPOLITICAL" GOVERNMENT TAKES OVER IN GREECE
A new Greek government
headed by banker Ioannis Paraske-
vopoulos has been installed fol-
lowing the fall of the 15-month-
old regime of Stephan Stephano-
poulos. The old government col-
lapsed when the conservative Na-
tional Radical Union (ERE) with-
drew its support, as it had long
threatened to do. King Constan-
tine replaced it with a transi-
tional administration of nonpo-
litical personalities which he
would like to have remain in of-
fice until general elections can
be held in late May.
The withdrawal apparently
resulted from an agreement between
ERE leader Kanellopoulos and the
chief figure in the opposition
Center Union, George Papandreou.
Papandreou had been demanding
elections ever since he fell
from power in a row with the pal-
ace in the summer of 1965.F__
The government crisis has
left both major parties in dis-
array. A caucus of the ERE
agreed to support Kanellopoulos,
but his move caught many of his
parliamentary deputies by sur-
prise.
The majority of Papandreou's
deputies have also agreed to fol-
low his lead, which calls for
supporting the new government,
but a sharp split has developed
between him and his controver-
sial son, Andreas. The younger
Papandreou's alleged role in
the conspiratorial military
"Aspida" group and his hostility
toward the palace have stirred
Greek political circles for two
years. Now Andreas has publicly
demanded that his father reverse
his decision to support Paraske-
Paraskevopoulos is expected
to receive a parliamentary vote
of confidence next week, thanks
to the backing of both major
party leaders. In view of the
basic instability within both
parties, however, a withdrawal
of such support and another
change in government before
the elections is possible.
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CONGO INTEJSIFIES CONFRONTATION WITH BELGIAN MINING COMPANY
President Mobutu of the Congo
(Kinshasa) has sharply raised the
stakes in his duel with the Union
Miniere mining concern and has
moved much closer to his goal of
"Congolizing" the company inside
the Congo.
On 23 Decemb~sr Mobutu an-
nounced the creation of a new en-
tity, controlled :>y the Congolese
Government, to tote over the com-
pany's assets in :he Congo. This
new "council of a lmin:Lstration, "
according to the jovernment's an-
nouncement, will supplant Union
Miniere irrevocably on 1 January
unless the company agrees by then
to move its headgzarters to Kin-
shasa. Simultaneously, Mobutu
stopped the export--but not the
production--of copper and other
minerals mined by Union Miniere.
Mobutu apparently believes
that a sufficient number of the
expatriates (mostLy Belgians) in
the Congo--who ar crucial to the
country's mineral production--will
stay on under the new arrangement..
While he has step?ed up army and
police activity i-i the Katanga
mining region, he apparently is
drying to minimize open harass-
ment of the Belgians and has as-
sured them that h.: wants them to
remain. He is al3o giving a ma-
jority of seats o:a the new "coun-
cil of administra:ion" to expa-
triates, including five Union
Miniere officials now in Katanga.
Union Minier,~ has several
strong cards to pLay, but so far
it has not shown its hand. Its
personnel in Katanga have been
instructed to cooperate with Congo-
lese officials and to concentrate
on producing copper.
On the other hand, the com-
pany's spokesmen have repeatedly
said there is no chance that it
will transfer its headquarters
to Kinshasa.
The company could also institute
legal proceedings that would
hamper the Congo in its efforts
to make alternative marketing ar-
rangements.
There appears to be little
chance that Mobutu will back down
to the extent of letting Union
Miniere run the mines after 1
January. Nor does Union Miniere
seem likely to move its headquar-
ters to the Congo. If some way
out of the impasse is not found,
all sides will be damaged, the
Congo perhaps most of all. If a
deal is reached, it probably will
involve Congolese control of op-
erations inside the Congo, with
Union Miniere continuing to mar-
ket the Congo's mineral products.
This would give Mobutu a substan-
tial political victory with mini-
mal disruption to the Congo's
portion of the copper-producing
process.
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NIGERIAN REGIME WEIGHING MILITARY ACTION AGAINST EASTERN REGION
Leaders of Nigeria's fed-
eral regime are thinking se-
riously of resorting to military
action against the Eastern Re-
gion in order to break the im-
passe over the country's future.
Supreme Commander Gowon
and other key leaders of the
Federal Military Government (FMG)
are becoming increasingly im-
patient with Eastern military
governor Ojukwu. Since Gowon
took over last summer, Ojukwu
has managed, by constantly im-
posing new preconditions, to
avoid meeting with Gowon and
the military governors of the
other three regions.
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The FMG has begun to pub-
licize what he calls the "arms
importation and warlike prepara-
tions by Eastern Nigeria," and to 25X1
assure the population that the
FMG is "alive to its responsi-
bility."
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WESTERN HEMISPHERE
Most of Latin America followed its traditional
Christmas holiday pattern by taking time out from
jousting with internal and international problems.
However, there were rumblings from two British
possessions and a former colony that suggested de-
veloping trouble.
In the Bahamas, strikes and political infighting
in preparation for the 10 January parliamentary elec-
tions produced ugly moods in Nassau and elsewhere
in the island chain that caused the governor to fly
to London for consulations and the British to move
a ship with marines aboard into the area. The
strikes have been settled, however, and Brit:-sh au-
thorities think local security forces can cope with
any foreseeable unrest. Nevertheless, there is some
talk of assassinations if the opposition Progressive
Liberal Party believes itself cheated in the coming
elections and the situation will remain tense until
well after the voting.
The British also dispatched a warship to lie off
St. Vincent in the Windward Islands as a result of
unrest there. Here, too, an electoral dispute is at
the bottom of the problem. The two major parties
are embroiled in a legal battle over alleged ir-
regularities in last August's legislative elections.
London is involved heavily in this quarrel because
the dispute could delay the granting of full internal
self-government to the island, scheduled for February
1967.
The former British colony of Guyana came close
to another government crisis as Premier Burnham
shuffled his cabinet but stayed short of changes
that would have jeopardized his party's coalition
with that of Finance Minister D'Aguiar. The two men
have been at odds since before independence and a
showdown between them may still be ahead. The big
danger in this situation is that Cheddi Jagan, the
pro-Communist leader of the opposition, is waiting
in the wings for just such a development.
The lull in Latin America will soon pass. One
predictable event for the new year is Castro's major
speech on 2 January during the celebration of his
take-over in 1959.
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ARG=NTINE GOVERNMENT SPLIT OVER LABOR POLICY
A serious split over labor
policy has developed within the
Ongania government as the result
of a hard-line fz.ction's attempts
to prevent any compromise with
the unions and recently intro-
duced work rules. In the latest
incident, armed maritime police
enforced a lockout of longshore-
men returning to work after their
union called off the dock strike
--hat had begun or 21 October.
The hard-liners are led by
'_!Transportation Secretary Antonio
I,anusse, who believes that ne-
gotiations with labor would give
the impression the government is
weak and incapable of enforcing
the new rules, which are designed
to improve the efficiency of the
nation's ports and railroads. It
seems that Lanusss's faction was
responsible for tie lockout on
the docks, as welL as for earlier
police raids on union meetings in
Buenos Aires. Laiusse is appar-
ently convinced tat President
Ongania also favo.^s a tough ap-
proach. The President, in fact,
has not yet commi :ted himself to
either Lanusse or to the moderates,
led by Labor Secretary Rubens
San Sebastian, who are prepared
at least to discuss the issues
with labor leaders.
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The government's moves
against the unions are forcing
the leaders of the General Con-
federation of Labor, which is
dominated by Peronist moderate
Augusto Vandor, to take a stronger
antigovernment stand than in the
past. During the past few months,
Vandor has urged union leaders
to avoid a confrontation with
the Ongania regime and to rely
on negotiations to achieve labor
demands. Now, however, Vandor's
position is being eroded by the
tough position of Lanusse and
his followers. Some union lead-
ers, especially Lorenze Pepe of
the railroad workers, are urging
labor to plan for strikes, and
possibly even terrorism and sabo-
tage, in the face of an inflexi-
ble government attitude.
The chances of avoiding a
major confrontation between the
crovernment and the labor unions,
which seemed quite good in Novem-
ber, have been considerably re-
duced by the latest series of
events. The government can count
on military backing to enforce
its position, but a struggle with
organized labor could put a road-
block in the way of a number of
economic and labor reforms con-
templated by the government.
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BRAZILIAN CONGRESS CONSIDERS CONTROVERSIAL LEGISLATION
The basic text of President
Castello Branco's new constitu-
tion has been approved by the
Brazilian Congress with the ex-
pected support of progovernment
party (ARENA) legislators. How-
ever, many influential members--
including respected ARENA lead-
ers--are deeply concerned about
such key provisions of the con-
stitution as the indirect elec-
tion of the president, military
trials for civilians accused of
crimes against national security,
and the general expansion of pres-
idential authority.
Many members apparently hope
to be able to modify the draft--
now returned to committee for
submission of amendments, which
must be sponsored by at least one
fourth of the membership of either
house. By law, the committee must
complete its consideration of
amendments by 5 January, Congress
must vote on them by 19 January,
and the new constitution--with
or without amendments--must be
promulgated by 24 January. It
is not likely that the government
will accept major alterations, but
it may agree to some liberalizing
amendments on human rights and on
the President's authority to is-
sue decree laws. Some critics of
the constitution reportedly hope
to secure approval of more far-
reaching amendments later on.
In addition to the constitu-
tional debates, Congress on 22
December received from the Presi-
dent a draft press law that must
be acted upon within 30 days or
become law automatically. The
draft, which has drawn immediate
protests from many press groups,
provides for increased fines and
penalties for "abuse of liberty
of the press," for transmitting
false news, or for twisting or
distorting-facts to cause public
disturbances. Notoriously slow
court processes would be speeded
up, and media accused of calumny
and defamation--charges almost
impossible to prove under present
Brazilian law--would have the
burden of proving their allega-
tions. Further, anonymity (pen-
names are frequently used by po-
litical writers in the Brazilian
press) would be forbidden. For-
eigners would not be permitted to
own "journalistic enterprises"
nor to distribute national news
in Brazil.
Some responsible Brazilian
newsmen have admitted, however,
that the law is necessary to
eliminate abuses of press, radio,
and television by both newsmen
and politicians. They point out
that the law sets up neither
mechanisms nor provisions for
censorship.
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PANAMANIAN GOVERNMENT OPTIMISTIC ABOUT CANAL NEGOTIATIONS
The Robles government is be-
coming more hopeful over prospects
for reaching a canal settlement
with the US next year, and For-
eign Minister Eleta has scheduled
a trip to this country on 31 De-
cember to try tj speed up the pace
of the talks.
Panama City news media,
largely owned or controlled by
government officials and members
of the oligarchy, are giving heavy
coverage to the negotiations. The
recent calm and optimistic tone of
most of the editorials and broad-
casts contrasts sharply with the
emotional, anti-US clamor that
was touched off in early December
after a minor incident at the US;-
leased Rio Hato training area. At
that time, the pilot of a Panama-
nian aircraft that made an emer-
gency landing at the site claimed
he had been "detained" by US
personnel. News media and ex-
treme nationalists charged that
the country's sovereignty had been
violated, and the furor over the
incident was quickly magnified
into criticism of the US role in
the treaty talks. Most media
portrayed the Robles administra-
tion as taking a newly vigilant
and forcefully patriotic stance
in relations with the US.
anniversary of the 9-11 January
Canal Zone riots. The television
station owned by Eleta is stress-
ing the "desirable pace" of the
canal talks and is urging the
public to avoid any "fruitless
excesses" that would retard
them. Leaders of Panama's small,
fragmented Communist movement
are making plans for agitation
during the anniversary period
and, as a result of the Rio Hato
affair, there is more tension
this year than last. 725X1
In addition to reflecting
renewed confidence regarding the
negotiations, the tone of the
news media probably indicates
that Robles and his aides have
an eye on the approaching third
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