WEEKLY SUMMARY

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A006400080001-5
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
39
Document Creation Date: 
December 21, 2016
Document Release Date: 
October 29, 2008
Sequence Number: 
1
Case Number: 
Publication Date: 
May 24, 1968
Content Type: 
SUMMARY
File: 
AttachmentSize
PDF icon CIA-RDP79-00927A006400080001-5.pdf1.94 MB
Body: 
Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY State Dept. review completed DIA review completed. Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET (Information as of noon EDT, 23 May 1968) VIETNAM North Vietnamese negotiators in Paris continue to hold to the unconditional cessation of the bombing and "all other US acts of war" as the indispensable first step before talks can move on to other issues. They have not set any timetable for US acceptance of this demand. In South Vietnam itself, fighting step- ped up in I Corps and rocket and mortar attacks were made throughout the country. In Saigon, Vice Presi- dent Ky and the senior generals are none too happy over the possibility of a more civilianized govern- ment. CONFLICTS IN PEKING LEADERSHIP UNRESOLVED Propaganda media in Peking continue to demand the purge of "degenerates" and "traitors", but no moves to do so have been discernible in recent weeks. The forces pushing for more purges may be either blocked or not ready to make their move. COMMUNIST FORCES IN LAOS CONSOLIDATE THEIR POSITIONS Communist forces are concentrating on consolidating their hold over newly won territory. SECRET Page i WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET Europe PRAGUE STILL PARRIES SOVIET PRESSURES Premier Kosygin and a high-level military delegation converged on Prague simultaneously in what may have been a concerted effort to get more than verbal assurances that Prague will stay in the fold. The Czechoslovaks agreed to take part in "fair-sized" summer maneuvers. FRENCH GOVERNMENT MOVES TO EASE TURMOIL Premier Pompidou's offer to hold a dialogue has been accepted by the labor unions and could be a break- through in the serious nationwide strike. The stu- dent and university problem, which had been eclipsed by the strike, moved into the headlines again with a new outbreak of violence. SOVIET GENERAL AFFIRMS FLEXIBLE RESPONSE MILITARY DOCTRINE Colonel General Povaly has refuted the late Marshal Sokolovsky's views that flexible response is not fea- sible and claims the Soviet Union is ready to meet any military situation. RUMANIAN REGIME SOFT PEDALS DE GAULLE'S VISIT President de Gaulle's "Europe for the Europeans" mis- sion to Rumania from 14 to 18 May enhanced Bucharest's international prestige, but achieved little else. ITALIAN ELECTIONS RETAIN CENTER-LEFT GOVERNMENT The center-left coalition was returned but the Social- ists' losses may lead them to re-examine their posi- tion. POLISH PARTY STRUGGLE TEMPORARILY DORMANT Neither faction has gained a victory and infighting may break out at a forthcoming party plenum. SECRET Page ii WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 14 25X1 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET PERSIAN GULF FEDERATION AT THE CROSSROADS The Federation of the Arab Amirates has been unable to get off the ground since its announced establish- ment on 30 March. At a meeting on 25 May the member rulers will attempt to alter the federation's make- up to a more practical form. NIGERIAN PEACE TALKS BEGIN IN UGANDA Peace talks, which were to begin on 23 May, are likely to be protracted and acrimonious. Biafra believes its recognition by four African countries has enhanced its political position, whereas Lagos has virtually clinched a military v:Lctory. INDIA'S CONGRESS PARTY REVIVING AT THE POLLS The party still faces many obstacles, however, in regaining the substantial ground that it has lost in many of the states. ELECTION OUTLOOK IN TURKEY The incumbent Justice Party (JP) is virtually cer- tain to win the majority of both national and local seats being contested. An overwhelming JP victory could have an unsettling effect among opposition parties that would see little chance of increasing their influence in the government through normal democratic procedures. Western Hemisphere OUTCOME OF PANAMA'S ELECTION STILL UNCERTAIN The official counting of ballots cast in the presi- dential and legislative elections on. 12 May contin- ues amid confusion, government efforts to delay the process, and charges of electoral fraud by both sides. SECRET .Page iii WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET The invasion of northern Haiti by a group of 25 to 30 non-Communist exiles on 20 May was suppressed by government forces the next day, leaving President Duvalier in as strong a position as ever. ECUADOREAN ELECTION CAMPAIGN NEARS THE FINISH LINE Preparations for Ecuador's presidential and congres- sional election on 2 June are proceeding smoothly. Little fraud is expected, and the role of the mili- tary probably will be limited to guaranteeing order. POLITICAL AND ECONOMIC DETERIORATION IN URUGUAY A protracted cabinet crisis and labor agitation have dimmed President Pacheco's prospects for dealing with the country's economic problems. GOVERNING PARTY WINS DOMINICAN ELECTIONS The governing Reformist Party's victory in last week's municipal elections was marred only by scattered dis- orders and the usual wild charges of government fraud. SECRET WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET Hanoi's delegation to the Paris talks is keeping attention focused on the demand for an unconditional cessation of US bombing as the indis- pensable first step before taking up other issues. The North Vietnamese vigorously refuted Ambassador Harriman's references to points of simi- larity in the positions of the two sides and accused the US of trying to divert the talks from the bombing issue. They also sought to increase pressure on the US for a unilateral concession by publicly expressing readiness to discuss a political settlement if the bombing is halted. The North Vietnamese appear confident that the Paris talks provide an effective forum for this kind of propaganda warfare and they clearly intend to keep the conversations going indefinitely. In South Vietnam the Communists' tactics are designed to support the delegation in Paris by projecting an impression that they hold the military initiative. For this purpose, they are relying primarily on a series of mortar and rocket: attacks against allied installations throughout the country. Increased ground activity in the Khe Sanh and Da Nang areas, however, suggests preparations for a coordinated large-scale offensive in the northern provinces. In Saigon, President Thieu and premier-designate Tran Van Huong are engaged in delicate negotiations to broaden the government's political base without provoking a dangerous reaction from senior military figures. Vice President Ky and the generals reportedly recognize that they were out- maneuvered by Thieu in the appointment of a new prime minister, but they probably will work behind the scenes to resist threats to their power and privileges. The Chinese Communists continue to express displeasure over Hanoi's decision to enter talks with the US, but they have avoided any hints of reprisals, such as a reduction of their technical and material assistance to North Vietnam. Despite shrill demands in Peking's propaganda for the purge of additional "traitors" in the domestic political struggle, there apparently have been no attempts to bring down new victims since the dramatic ouster of acting chief of staff Yang Cheng-wu in March. This suggests that forces advocating further purges either have been effectively blocked or that they are not ready to make their next move. SECRET Page 1 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 4 LAOS THAILAND 'Da Nang I C, SOUTH VIETNAM Si,C.RF'T' Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 bhuKL 1 VIETNAM North Vietnamese negotiators in Paris are settling in for what they clearly expect to be a long stay. They are conveying the im- pression that they are prepared for protracted discussions without the prospect of early agreement even on priority issues. The dele- gation has moved into new quarters, and gives every sign of intending to remain indefinitely, including the installation of extensive new communications equipment. The North Vietnamese continue to hold to the unconditional cessa- tion of US bombing and "all other acts of war" as the indispensable first step before the talks can move on to other issues. Even though there has been some escala- tion in the polemics attending ex- position of the Communist stand, the North Vietnamese have refrained thus far from setting any time limit for US acceptance of their demand. Ha Van Lau, the deputy head of the delegation, told a Japanese correspondent that even if the US refused to stop the bombings, "the talks will continue." He added that Hanoi believed the US attitude toward negotiations was strongly influenced by domestic political considerations and that the North Vietnamese did not really expect serious bargaining to begin until early August under the pressure of the US political conventions. Earlier last week, North Viet- namese diplomat Mai Van Bo told a French newsman that, although Hanoi had no intention of agreeing to any reciprocal action in return for a bombing halt, it was pre- pared to keep talking with the Americans so long as it appeared "useful." He specifically ruled out the return of American pilots or any other "gesture" which he said could be used to save Ameri- can "face" on the reciprocity is- sue. Hanoi spokesmen in other parts of the world are also saying that North Vietnam does not intend to break off the talks over the bomb- ing issue. A visiting North Viet- namese delegate to Japan told his hosts last week that Hanoi will not break away from the Paris talks and is prepared to take a flexible attitude toward the negotiations. As an example of this intended flexibility, he cited his govern- ment's willingness to accept a phased withdrawal of US forces fol- lowing successful peace talks, de- spite Hanoi's demands for "im- mediate" withdrawal. Chinese Resigned to Paris Talks Despite increasing evidence of Communist China's displeasure with the Paris talks, official spokes- men in private discussions have pointed up Peking's inability to dissuade the North Vietnamese from negotiating. They have indicated that Peking has only limited room for maneuver at this stage and have emphasized that China will con- tinue to support North Vietnam in its war effort. SECRET Page 3 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Si.cRid China probably estimates that any attempt to reduce material sup- port, the only significant lever available to Peking, would not only hinder the Vietnamese war effort but would also undercut Chinese influence in Hanoi at a critical juncture. Peking continues to avoid di- rect comment publicly on the Paris meetings, but Chinese spokesmen have repeatedly attacked the con- cept of negotiations in general as a "hoax" and a "fraud." Foreign Minister Chen Yi at a banquet on 18 May for a visiting Guinean-Malian delegation bitterly denounced the "US imperialist scheme of peddling the peace negotiations swindle" and called on the North Vietnamese "to increase their resolve to fight and win." Since Hanoi agreed to the talks on 3 April, posters in Peking supporting North Vietnam have been removed and daily small-scale pro- Vietnam parades and demonstrations have stopped. The War in the South Communist forces during the week combined increased activity in the Khe Sanh and Da Nang areas, possibly in preparation for a co- ordinated offensive in the northern provinces, with a series of mortar and rocket attacks against allied installations throughout the coun- try. The rocket and mortar attacks were probably designed both for psychological impact and to restrict allied reaction forces. Camp Evans, the headquarters of the US lst Air Cavalry Division, sustained the heaviest damage. Five helicopters were destroyed, 79 had moderate to heavy damage, and 40 were lightly damaged. The attacks probably also had the wider purpose of supporting North Vietnamese negotiators in Paris by contributing to an impres- sion of continued Communist mili- tary initiative. It is not clear how far the Communists might wish to carry offensive action to punc- tuate this stage of the Paris talks, but they almost certainly intend at least to continue causing heavy allied casualties, particularly US. In the Khe Sanh area, US 'pa- trols are again encountering stiff resistance from what are believed to be elements of the North Viet- namese 304th Division. Elsewhere in Quang Tri Prov- ince, Communist main force units, including elements of two North Vietnamese divisions, threaten, many vital allied positions and popu- lated areas. Although some of, these units suffered heavy casual- ties in recent fighting, all are either already back in combat or getting ready for it. In central I Corps, allied forces conducted three major spoil- ing operations against enemy uhits preparing for a possible offensive from the southwest against Da Nang. The Communists, nonetheless, are continuing to add to their strength in the area. There are indications that the North Vietnamese 2nd bi- vision is returning here, its nor- mal area of operations, after prob- ably being re-equipped. There; are also tenuous signs that a newly in- filtrated North Vietnamese regiment may also be in the area. SECRET WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET Huong Forming New Cabinet President Thieu accepted Premier Loc's resignation on 18 May and a few hours later named Tran Van Huong to succeed him. Huong had a brief and troubled tenure as premier in late 1964 and early 1965, when his effectiveness was limited by his own inflexibil- ity, the opposition of the moder- ate Buddhists, and lack of sup- port from a military establishment which itself was deeply divided. Huong is widely respected never- theless, both because of his in- corruptibility and his demonstrated willingness to devote himself fully to his responsibilities. The new premier, with Thieu's blessing, is negotiating with rep- resentatives of South Vietnam's badly fractionalized political community in an effort to broaden the government's base, which under Loc had been limited mainly to technicians and military officers. In view of long-standing animosi- ties and rivalries among South Vietnamese politicans, Huong faces an up-hill task in putting to- gether a new team. Haong's appointment is not sitting well with Vice President Ky and the senior generals, who are reported to be miffed over Thieu's failure to consult with them. Of probably greater weight in their calculations is a fear that Thieu, working through Huong, is maneuvering to displace them from the vortex of power through a civilianization of the govern- ment. Having been outmaneuvered by Thieu, Ky and the generals appear to have resigned themselves to the change in government. They are likely to content themselves for the time being with a careful monitoring of the situation, work- ing behind the scenes to limit the inroads Thieu and H.uona can make into their power. CONFLICTS IN PEKING LEADERSHIP UNRESOLVED Two months after the dramatic ouster of acting chief of staff Yang Cheng-wu, propaganda media in Peking are still demanding the purge of ad- ditional "degenerates" and "trai- tors." No moves to bring down new victims have been discernible in recent weeks, however, suggesting that the forces pushing for more purges either have been successfully Page 5 blocked or are not ready to make their move. Regime accusations are tougher and shriller than any published since :Last summer. Charges against Liu Shao-chi and other opponents of the Cultural Revolution now em- phasize that they are traitors and Kuomintang agents, possibly in SECRET WEEKLY SUMMARY. 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET preparation for applying legal sanc- tions to them. For the third time in three weeks, Mao Tse-tung and Lin Piao led a major leadership turnout in Peking on 20 May. It appears that hierarchic rankings have been static since late March. The new elite group around Mao--about 14 people-- consists of six politburo standing committee members, three members of the Cultural Revolution Group and five drawn from the military and police. Contrary to previous prac- tice these latter five are now ranked ahead of ordinary politburo members. The most recent turnout marked the second anniversary of the 16 May 1966 central committee circular which gave Mao's case against polit- buro member Peng Chen and started the overt phase of the Cultural Rev- olution. The most inflammatory por- tions of this circular were repub- lished, along with commentary sup- plied jointly by the editors of People's Daily, Red Flag, and Lib- eration Army Journal, which ap- pears dlesigne two encourage greater revolutionary activity by radical elements. The joint article said that considerably more "destruc- tion" of society will be necessary before "construction" can begin. It listed all the key "revision- ists" brought down thus far in the Cultural Revolution except the ex- treme leftists who were expelled last fall and winter. Radical forces in the leadership may heave decided to stop publicizing the sins of this group, who had been so closely associated with their militant policies. Meanwhile violence continues to stall the establishment of Rev- olutionary Committees in the six remaining problem areas. Since mid-April, factional fighting has been on the upswing again in Kwangtung, where a committee was set up in February. At the same time, the acting chairman of Kwangtung's Provincial Revolu- tionary Committee--a radical who has been running Canton since the former head became chief of staff in Peking in March--has himself come under Red Guard poster attack. It is possible that the new chief of staff, who is reported to have 25X1 returned briefly to Canton in mid- May, himself engineered the criti- cism of his acting successor. SECRET Page 6 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET COMMUNIST FORCES IN LAOS CONSOLIDATE THEIR POSITIONS Communist forces are concen- trating on consolidating their hold over newly won territory. They have launched an in- tensive sweep operation in a fol- low-up to their capture of the major government supply base at Nam Bac last January. The sweep has been aimed at eliminating friendly guerrilla teams that have harassed the enemy's lines of com- munication in recent years. There are continuing reports that the Communists are also trying harder than before to control the scat- tered villages that have been aid- ing the government's guerrillas. An excessive use of terrorism by the enemy may, however, prove counterproductive. In the northeast, heavy US air strikes appear to have blunted, at least for the time being, the enemy offensive against the govern- ment guerrilla base at Na Khang. Although the capture of Na Khang would severely hamper government operations in the northeast and would put the finishing touches to the Communists' most successful dry season offensive in many years, it is far from certain that the Com- munists are willing to sustain heavy losses to take it. In the south, Communist forces are making further efforts to consolidate their control of the Sedone Valley, the scene of a major government development pro- gram over the past few years. The Communists are using both propa- ganda and terrorism to control a populace that has in the past proved friendly to the government. In some instances sympathetic groups have been given weapons and trained as local militia, but the majority of the people appear;to be resisting close identification with the Communists. Pathet ao cadre are making a special of ort, however, to convince the fence- sitters that the government will not be able to re-establish itself in the valley. The Communists evidently'in- tend to maintain a substantial mil- itary presence in the northern part of the Bolovens Plateau. They continue to move supplies into the area via Route 23 and are estab- 25X1 lishing a medical facility for the many North Vietnamese troops still SECRET Page 8 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 LAOS ~'tyy1' !t C H I N A V I E T N A M HANOL Luang Prabang /' ,~\?! VIENTIA E Government-held location Communist controlled territory Contested territory 3Y%0 25 50 7s ton a 25 5n 1! 7ttt11(ilometets BOLOV PLATER 'JSOUTH SF,CRET Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET Tensions are high in several countries of West and East Europe. The French Government survived a vote of censure by 11 votes. The vote came after the government offered to negotiate directly with the unions to end the walkouts that have paralyzed the nation. Union leaders said they were ready to negotiate but presented sweeping demands. The powerful National Committee of French Employers, meanwhile, decided to oppose any bilateral agreement between the government and the unions that would increase wage costs. Moscow's heavy pressure on Czechoslovakia, now well into its third week, has had little visible effect on the leaders in Prague. Premier Kosygin, in Czechoslovakia for an extended stay, had two conferences with Czechoslovak leaders the past week. He may leave on the eve of the Czechoslovak party's central committee plenum opening 29 May and will probably try again to gain some commitment from Dubcek to moderate his regime's policies. Soviet Defense Minister Grechko and some high Soviet brass spent five, presumably not very congenial, days in Prague before winning Czech- oslovak agreement to participate in "fair-sized" 'Warsaw Pact maneuvers. The pace of the political struggle in Warsaw has visibly slowed, in part because of the regime's nervousness over the situation in Czecho- slovakia. There may also have been some pressure from Moscow to postpone any changes.. East Germany, to assert its independence, sovereignty and strength, may introduce additional controls over West German travel to West Berlin. SECRET Page 11 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET PRAGUE STILL PARRIES SOVIET PRESSURES The virtually simultaneous arrival in Prague last Friday of Premier Kosygin and a high- level Soviet military delegation suggested Moscow had made an ur- gent and possibly climactic effort to check what it considered to be a deteriorating situation in Czechoslovakia. The visits were the latest in a series of confrontations. Mos- cow presumably is now seeking more than the verbal assurances with which Prague has responded to earlier Soviet criticisms. While the leaders talked, Moscow main- tained the psychological pres- sure by keeping most of its mil- itary units in place near the Czechoslovak borders. Reports in Soviet and Polish news media that a joint Soviet-Polish Warsaw Pact exercise took place in south- ern Poland were a belated Soviet attempt to explain the deployment of its troops to the Czechoslo- vak-Polish border. The military delegation, headed by Minister of Defense Grechko, probably pressed Prague for evidence of its intention to continue cooperation with the Warsaw Pact and apparently got some relatively modest conces- sions. Czechoslovak Minister of Defense Dzur announced on 21 May that Prague would participate in "fair sized" maneuvers this sum- mer. He added, however, that the maneuvers would not involve "big contingents" of troops. Dzur also stated that he would head a military delegation to the So- viet Union, which suggests that the question of military cooper- ation is not yet completely set- tled. There are no signs that Kosygin, who is scheduled to`re- main in Czechoslovakia until at least 28 May, and the Czechoslo- vak leaders are making much prog- ress in their negotiations. A Czechoslovak spokesman said last week that the USSR is still pon- sidering Prague's request for a foreign currency credit equiva- lent to $400-500 million. If the USSR withholds the credit or. refuses to assure the continued supply of raw materials to Czech- oslovakia, Prague's probes for economic aid from the West prob- ably will be accelerated. Kosygin is probably demand- ing that the Czechoslovak lead- ers suppress opposition to and criticism of the party. Thus far, the Czechoslovaks have held their ground. Factional fighting within the Czechoslovak party may come to a climax during a central committee plenum which begins on 29 May. Liberals have added to their earlier pressure by calling upon the conservatives to resign voluntarily. The party presidium report- edly has decided to recommend that an extraordinary congress be convened at which the liblrals could move against the conserva- tives. Dubcek, however, will SPCRE Page 12 WEEKLY SUMMARY -24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET probably oppose the attempt by liberals to force the factional issue at the plenum, particu- larly because he is under So- viet pressure to rein them in. The conservatives have re- cently been more outspoken in criticizing the liberal trend, and there are no signs that they intend to resign. Diplomats in Prague believe the conservatives' strength has been underrated, and speculate that they will be ma- neuvering actively at the plenum. FRENCH GOVERNMENT MOVES TO EASE TURMOIL An estimated 7-8 million work- ers--about half of the industrial labor force--are on strike and rebellious students continue to occupy universities throughout France. Premier Pompidou's midweek offer to hold a dialogue with the unions was immediately accepted and could be a breakthrough. In an effort to keep the university prob- lem in the background and to con- centrate on the more serious na- tionwide strike, the government had approved an amnesty for those involved in the student disturb- ances. A new outbreak occurred, however, when a disorderly student march flared into violence on 23 May. The march was called to pro- test the government's refusal to allow "new left" leader Cohn-Bendit to return to France following trips to Germany and Holland. The dilemma the government now faces is to offer enough conces- sions to satisfy the workers with- out undermining the economy. The problem is complicated further by the Patronat, France's powerful as- sociation of factory owners and managers, which opposes major con- cessions to the unions and a di- rect government role in any nego- tions. Occupation of factories by workers and the tactical "alliance" of all the major unions against the government give labor a strong bar- gaining position. Strains between the Communist-controlled General Confederation of Labor and other unions have begun to appear, how- ever, and the government may be able to exploit the disunity. In offering to talk, the gov- ernment took a significant step to ease the crisis. The workers do have legitimate economic grievances, but a deeper problem is the per- vasive sense of being incapable of influencing both politics and eco- nomics. The coming dialogue at least gives the workers a direct channe:L to the powers that be, some- thing they have lacked in recent years. The government might couple its offer to talk with concessions calculated to defuse the crisis. There have been indications that cabinet: changes are under consider- ation, although the timing of such changes is uncertain. Another pos- sibility is a nationwide referendum. Given the depth of dissatisfaction over the government's economic and social policies, however, turning to the people is risky and De Gaulle would have to choose carefully what issues to efore them. SECRET Page 13 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET SOVIET GENERAL AFFIRMS FLEXIBLE RESPONSE MILITARY DOCTRINE A senior Soviet general has affirmed flexible response as an important part of Soviet military doctrine. He has refuted Marshal Sokolovsky's famous treatise, Military Strategy, which holds that any future war between nu- clear powers will inevitably escalate into a general nuclear conflict. the enemy a "crushing blow of decisive significance." Colonel General M. Povaly, who is believed to be responsible for operational planning in the Soviet General Staff, recently told US military attaches in Moscow that the latest edition of Sokolovsky's book--published in November 1967--was obsolete and that US officials would be wasting their time reading it. At the high point of a distin- guished career Marshal Sokolov- sky served as Chief of the Gen- eral Staff (1952-1960) and, until his death two weeks ago, was a member of the Inspector General Group of aged, semi- retired military leaders. Povaly's charge probably is directed primarily at Sokolov- sky's opinion that flexible response is not feasible. The initial period of a future war will be decisive, the marshal claimed in his book, and the Soviet Union will be able to detect preparations for a "sur- prise nuclear attack" and deal (that nuclear powers might not employ nuclear weapons in the beginning of a conflict or for -some period thereafter. He endorsed the rationale of the US strategy of flexible response in a Red Star article printed last March. ~When a US attache recently asked if the USSR's strategy resembled that of flexible response, Povaly replied, "Soviet strat- egy has no label, but the Soviet Union is ready to meet whatever the situation requires." His views seem more in line with pre- dominant Soviet military think- ing than do those of Sokolovsky. The Soviet military leader- ship has given more attention to adapting its general purpose forces for use in limited con- flict situations. The Soviet fleet in now operating in appre- ciable strength, with obvious political effect, in the Mediter- ranean. Besides showing the flag, it is capable of supporting very limited landing operations with its integral elements. Moreover, as the new AN-22 Cock transport aircraft comes into service, the Soviet Union will have an im proved ability to move military forces to more distant areas. SECRET Page 14 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET RUMANIAN REGIME SOFT PEDALS DE GAULLE'S VISIT President de Gaulle's "Eu- rope for the Europeans" mission to Rumania from 14 to 18 May en- hanced Bucharest's international prestige, but achieved little else. The tension in Eastern Europe probably induced some restraint and dampened the stri- dent nationalism customarily expected of De Gaulle and Ru- manian party and state chief Nicolae Ceausescu. De Gaulle left a day early because of the French domestic crisis. In his speech to the Ruma- nian parliament, De Gaulle re- marked that no European nation should submit to a "shameful effacement of national sover- eignty" by being caught in a conflict between "two great powers confronting each other along a line which is exterior SECRET Page 16 WEEKLY SUMMARY 24 May 68 to their own borders." Ceausescu did not rebuke De Gaulle for h's statements, as Poland's Gomulka did last fall, but he "clarified" selected sensitive points later with accompanying reporters. A bland communique at the, visit's end skirted such touchy issues as the German question,: the future of military blocs, and differing stands on the Middle. East. Predictably, however, it stressed the "special" role of France and Rumania in promoting European detente and called for the establishment of a joint gov- ernmental commission to promote economic and technical-scientific cooperations. The two sides also agreed to a consular convention and to establish French librar.es in Bucharest and Rumanian librar- ies in Paris. Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET POLISH PARTY STRUGGLE TEMPORARILY DORMANT The pace of the intraparty struggle in Poland has slowed temporarily and neither of the contending factions has won a decisive victory. The infight- ing may break out again at a party plenum reportedly to be held within the next six weeks. Since early May propaganda against "Zionists" and other internal enemies has been con- ducted in low key and purges appear to have fallen off. Stu- dents and other elements of the population have been quiet, with party leaders apparently giving only cursory public attention to the intraparty situation? No decisive personnel or policy changes have occurred nor have shifts in government posts last month been followed by changes in the upper echelons of the party. Some changes may be announced at the forthcoming party plenum. Since March, how- ever, purges of Jews and liberals have affected significant areas of the bureacracy as well as academic and artistic life. Anxiety over the future has caused indecision and delays at all levels of the party and state apparatus. The regime's nervousness over the situation in Czecho- slovakia, and possible Soviet pressure to postpone party changes in Warsaw, may have induced the truce, as well as the factions' fear of losing control over zealous activists. This lull may help party boss Gomulka reassert his author- ity, but there is little likeli- hood he will regain his former pre-eminence. The impact of last year's Middle East crisis and of the student disturbances in March has shaken the Polish party, and imparted an irreversible impetus for change. The under- lying forces of nationalism, economic dissatisfaction, and frustrated ambitions of the postwar generation have not been satisfied, and will have to be considered in any recon- struction of the party. SECRET Page 18 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET ITALIAN ELECTIONS RETAIN CENTER-LEFT GOVERNMENT The Unified Socialist Party's losses in the 19-20 May elections seem likely to strengthen those in the party who favor a hard look at continued participation in the center-left government. The party had hoped to win 100-110 seats and get back some 15 of the 24 seats held by the Moscow-oriented, Proletarian Socialist Party which opposes Socialist participation in the governing coalition. As it turned out, the Unified Social- ists won 91 seats and pressures may develop to divide into new right and left wing Socialist parties. No alternative to some form of Christian Democratic - Socialist coalition appears feasible, but the Socialists may delay a de- cision on joining the government until after their party congress next fall. They will, however, probably support or participate in a transitional government under Christian Democratic lead- ership for the intervening period. The Christian Democrats won six additional seats and now hold 266 in the 630-seat parlia- ment, and Premier Moro is the leading candidate to head a new government. The small, left- center Republican Party, the third member of the coalition, increased its representation' from five to nine. The parties to the right--Monarchists, Fas- cists, and Liberals--dropped from 74 seats to 61. The Communist Party gained 11 seats for a total of 177 while the Proletarian Socialists lost only one seat to retain ,a strength of 23. The strength of the far left, in part, is a result of. the absence of any other major opposition to the government. In addition, the Communists evi- dently attracted the protest vote from youth voting for the first time. Nevertheless, the Commu- nists' hopes for an election outcome that would, at least mathematically, permit a coali- tion with the Proletarian So- cialists, the Unified Socialists and the Republicans were not realized. The four left-of- center parties won a total of 300 Chamber of Deputies seats, 47.6 percent of the total. SECRET Page 17 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET Much of the area is threatened with a serious -locust plague this summer. Swarms breeding in Saudi Arabia may invade Iran, Pakistan, India, Sudan, Egypt, the two Yemens, Ethiopia, and Somalia. A second danger- ous breeding area is in eastern Africa. Unless controlled, the locusts will severely damage crops throughout the area. The result would be increased demands for emergency wheat shipments. In the Arab-Israeli confrontation, Presideint Hilu of Lebanon is find- ing it increasingly difficult to prevent Arab terrorists operating through Syria from transiting his country. If these infiltration activities increase, he fears Lebanon would be subject to Israeli counterattacks. In Africa, the fourth summit meeting of 14 East and Central African states ended on 15 May with a reaffirmation of "unflinching" African support for the liberation of southern Africa and an expression of hope for a peaceful solution of the Nigerian civil war. The two combatants in the Nigerian war are scheduled to meet this week in Kampala, Uganda, but prospects for an early peace settlement remain gloomy. Mali and Guinea may be trying to persuade Peking to finance and construct a 200-mile rail line to link the two countries. The arrival of the Guinean and Malian foreign ministers on an undisclosed "joint mission" in Peking on 18 May and a recent week-long visit by a Chinese economic delegation in Conakry lend substance to reports that the project is under SECRET Page 19 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET PERSIAN GULF FEDERATION AT THE CROSSROADS The newly created Federation of Arab Amirates, which so far exists only on paper, is in seri- ous danger of being merely an in- tellectual exercise, because of dissension among its members and hostility from Iran. A meeting of member rulers scheduled for 25 May should indicate if the fed- eration has any practical future in its present form. The widely heralded announce- ment that the federation would come into official existence on 30 March has proved misleading; the announcement is still the federation's only official act. Despite all the positive reasons for encouraging some form of union among the small Arab states in the Persian Gulf, the difficulties inherent in trying to form a I. OUSAI MUSCAT Y- SHARJAH AND OMAN 3. AJMAN ?. UMM AL OAIWAIN S- RAS AL KHAIMAH a. PUJAIRAH IRRAQ_ Kj.WAIT *Kuwait Ad Dammam, BAHRAIN *Manama AREA Of ARAB AMIRATES *Ad Dawhah QATAR 1 el `P JG Abu Dhabi A, ABU DHABI 1~y TRUCSA,~' - Muscat !!F -_ 1J , A R K WI A I 1 SECRET Sharjah ' Dubai* Gh MUSCAT AND OMAN Page 20 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET cohesive and viable federation have so far proved unsurmountable. The strongest opposition to the federation comes from Iran, which lays claim to Bahrain, one of the member states, as Iran irredenta. It also sees the union as another Arab puppet state, ripe for Egyptian domination. Iran re- gards Nasir as the greatest threat to its security in the gulf area. At the same time, both Nasir and Saudi Arabia's Faysal, two of the federation's strongest enthusiasts, have failed to take energetic steps to assist its development. Effective support from them has been keenly missed in the face of strong-arm Iranian diplomacy. Most of the federation members are close to Iran in terms of social and religious orientation as well as geography, and without strong Arab backing, their Arabism is apt to falter. Within the membership of the federation, traditional divisive- ness continues to erode the pub- licized union. This divisiveness stems from the differences of wealth among the states, the varying degrees of political so- phistication of their rulers, the orientation of their foreign re- lations, and a hodge-podge of traditional feuds and petty quar- rels. The recent behavior of the ruler of Abu Dhabi in doling out millions of dollars in tribal gifts has encouraged the suspicion that he means to make the federa- tion his own instrument. Bahrain, on the other hand, believes that the other rulers are far too friendly with Iran, whose terri- torial. ambitions are regarded as the chief reason for Bahrain to seek safety in numbers. This interplay of enmities so far has prevented any practi- cal measures for implementing the federation. The rulers of the component states are scheduled to meet on 25 May to review this state of affairs. They will attempt to resolve their differ- ences, but if their talks enable the federation to continue, even in name only, there may emerge a new form of federation, different perhaps in number of members as well as in organization. NIGERIAN PEACE TALKS BEGIN IN UGANDA On 23 May, federal and Bia- fran representatives were to be- gin peace talks in Kampala, Uganda. The talks are likely to be pro- tracted and acrimonious. Biafra apparently believes that its rec- ognition by four African countries has significantly strengthened its political position, whereas Lagos has virtually clinched a military victory in the civil war with the capture of Port Harcourt. SECRET Page 2:L WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET The talks in Kampala must re- solve procedural items left over from the preliminary talks in Lon- don before getting into the more crucial matters of a cease-fire and political settlement. Lagos is expected to insist that there be no chairman and reportedly also does not want any foreign observ- ers at the talks. The federal government, never- theless, has been somewhat sus- ceptible to international pres- sures and could choose to be more -forthcoming on procedural matters now that its key military objec- tive of recent weeks--Port Har- court--has been captured. Lagos, however, will not yield on its substantive position that before a cease-fire can take effect Biafra must renounce secession and accept the 12-state federal structure. The Federal Military Govern- ment has named a negotiating team of 17 delegates and advisers headed by Information Minister Enahoro, who conducted the earlier talks in London. The federal group includes a number of minority tribesmen, as well as one Ibo from the former Eastern region. The Biafrans are sending five delegates, including Sir Louis Mbanefo, who also was at London, and Dr. Okpara, top political ad- viser to Ojukwu. Nigeria's ruling supreme Military Council has reportedly endorsed the recommendation of army field commanders to continue military operations until the Biafran army is destroyed or capitulates. Ojukwu, however, in two recent speeches has ex- horted the Ibos to fight on, even from the forests if necessary, and the civil war may well con- tinue for a long time. In the, wake of the federal capture of Port Harcourt, Biafran forces are disorganized. Federal troops on the other hand are well equipped and supplied and appear to have adequate leadership. Biafra may be continuing its air shuttle service by using another airfield farther north' now that it cannot use Port Hax- court. Unless sizable quanti- ties of new supplies can be brought in, the Biafra military effort will begin to collapse and could degenerate in time into protracted guerrilla warfare, particularly in the absence of 25X1 a political settlement acceptable to the Ibos. SECRET Page 22 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET INDIA'S CONGRESS PARTY REVIVING AT THE POLLS The Congress Party, after more than a year of reaping the bitter fruits of the 1967 general elections, has made some progress at the polls, but still faces many obstacles in regaining the substantial ground it lost in many of the states. Last week's victory :by Con- gress in the Haryana state assem- bly elections, the first state- wide polling since the general elections, capped a series of favorable electoral bouts for the party. In Communist-dominated Kerala, Congress recently made substantial advances in a series of municipal elections, and in Rajasthan the party dealt a strong blow to the conservative Swatantra party in two prestigious by-elections. These limited triumphs should boost Congress morale as it pre- pares for what promises to be bitterly fought midterm elections in the much larger and more impor- tant states of Uttar Pradesh and West Bengal later this year. There is bound to be a measure of bandwagon effect, but local issues will be decisive in these elec- tions. In both states factional- ism continues to hurt the party. As in Haryana, however, voters in Uttar Pradesh and West Bengal have suffered the chastening experience of inept rule by non-Congress co- alitions. This factor is bound to work to the Congress Party's advantage. Meanwhile, the party is hav- ing considerable trouble with the highly unstable political situation that has evolved in several other states. At the heart of the prob- lem is the difficulty in maintain- ing stable majorities. The Con- gress precedent in Haryana of denying a place on the party slate to defectors may alleviate this problem, but is unlikely to cure it. At least three more non-Con- gress governments are approaching the brink of dissolution, but Con- gress units in these states are in no position to take over. SECRET Page 23 WEEKLY SUMMARY 24 May 68 25X1 25X1 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET ELECTION OUTLOOK IN TURKEY The Turkish electorate goes to the polls on 2 June to fill 52 of the 183 seats in the senate, five vacancies in the lower house, and all municipal and local government posts. As the pre-election campaign enters its final week, the incumbent Justice Party (JP) appears almost certain to capture as much as 55-60 percent of the popular vote and rhost of the contested parliamentary seats. Moreover, initial reports from several key areas suggest that the JP probably will win a majority of the municipal contests. The campaign thus far has fo- cused primarily on general party orientation and on personalities rather than on current issues. -Re- ligious reactionism--a perennial charge against the JP--economic de- velopment, and the left-right con- frontation, however, have been the subject of partisan propaganda. Anti-Americanism per se has not been a major issue but is being exploited by the leftist Turkish Labor Party (TLP). There have been few surprises in the campaign; however, unexpected cleavages appeared in the JP during the earlier party primaries. These have been glossed over during the ensuing campaign. The governing JP shows every sign of being confident of victory, but over-confidence could cost it votes. The relatively mediocre performance of parliament during the past two years does not seem to be an issue with the elec- torate which is more impressed by the country's general economic prog- ress in recent years. The JP in its campaign has come out more openly against the TLP, accusing it of being crypto-Communist. Page 24 The major opposition Republican Peoples Party (RPP), led by octoge- narian Ismetlnonu, expects to gain little from the election. The, party lost many of its supporters among the landed gentry to the new Reliance Party which was organized following the RPP split between moderates and the left-of-center faction last spring. If the RPP receives less than 30 percent of thepopular vote, Bulent Ecivet, party secretary general and head of the left-of-center faction, may be ousted in favor of a more con- servative leader. The conservative Reliance Party, headed by Turhan Feyzioglu, has had little time to organize nationally and is generally regarded as too middle-of-the-road to attract much popular support. The Marxist TLP, on the other hand, is expected to do well iri gain- ing popular votes, but probably will not add to its 15 seats in parliament. During the past three years, the TLP has been bolstering its nationwide organization and has succeeded. in at- tracting some of the more leftist members of the RPP. Should the JP win more than 57-58 percent of the popular vote Prime Minister Demirel's moderate position within the party will be strengthened, and the JP will have more confidence in implementing its program. A larger majority could lead to increased pressure within the party to muzzle the extreme left. Anover- whelming majority could also result in opposition attempts to undermine, through propaganda and rumor, the good, working relationship between the JP and the military in an attempt to cause the downfall of the regime which largely represents the old Democratic tion in 1960. Party ousted by the military revolu- SECRET WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SF;UKLJ The hemisphere's most dramatic event of the week occurred in Haiti, where a small, non-Communist Haitian exile force staged an unsuccessful invasion attempt on 20 May that was squelched within two days. Another bloody purge of Haitians suspected of working against Duvalier seems inevitable. Chances for avoiding a violent political showdown in Panama re- mained rather poor even though National Guard Commandant Vallarino decided not to obstruct the certification of an evidently decisive victory by Arnulfo Arias in the presidential elections on 12 May. Public announce- ment of the official results of the balloting has been delayed, however, while backers of government candidate David Samudio seek through voting officials under their control to get their man declared the winner. Electoral developments in other countries of the hemisphere are proceeding more routinely. The Dominican municipal elections on 16 May were accomplished quietly, with mixed results that could be hailed by each political faction as a "victory" for its own cause. Bermuda's first legislative elections as an autonomous political entity were won by the predominantly white pro-British United Bermuda Party on 22 May. Preparations for Ecuador's presidential election on 2 June continued to go forward relatively calmly, amidst growing indications that a rather tight race is developing among the top three candidates. Political tension climbed in Argentina last week as a result of indica- tions that a showdown between President Ongania and his military critics, headed by army chief Julio Alsogaray, was imminent. A misstep by either Ongania or Alsogaray could provoke an open clash, in which the President would probably come out on top. In Chile, President Frei's annual state of the nation address to Congress on 21 May was boycotted by legislators of all five leftist parties because of violence that had erupted between government forces and striking teachers the previous day. His speech contained an appeal for action on his reform program that he seems unlikely to get--precisely because of the excessive political partisanship he denounced during his Page 25 SECRET WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 J1A_iKi'.1 OUTCOME OF PANAMA'S ELECTION STILL UNCERTAIN The official counting of bal- lots to determine the winner of the presidential and legislative elec- tions on 12 May continues amid con- fusion, government efforts to delay the process, and charges of elec- toral fraud by both sides. Although the government-supported Samudio forces are still trying to rig the returns, National Guard Commandant Vallarino is no longer supporting the official candidate and is ig- noring orders from the Robles gov- ernment. In a communi- que issued on 17 May, Vallarino emphasized the unity of the guard and intimated acceptance of the de- cisions of the National Elections Board, which is legally charged with counting the votes and proclaiming the winner. Although the board is weighted in Arias' favor, the US ambas*ador expects the government to try'to keep it from declaring Arias pres- ident-elect. While the board'is legally authorized to grant cre- dentials to the winner, the gov- ernment-controlled Electoral Tri- bunal can nullify the board's: findings. Any attempt by the,gov- ernment to annul the board's de- cision and call for new elections, however, would hinge on the posi- tion taken by Vallarino. His agreement with Arias puts the`pro- Samudio forces in a weak position to enforce its claims. Explosions, sniper fire,; and terrorism are creating a mood. of growing tension. Serious violence erupted again in Panama City on 23 May when Samudio toughs touched off disorders near the building where the elections board has'been conducting its count. Twenty-two persons were injured during the ensuing gun battle. Meanwhile, irresponsible' news media on both sides are adding fuel to the fire. A rabble-rousing pro-Samudio tabloid, headlining its story "Samudio or Chaos,"re- ported the formation of a popular militia to kill "oligarchs" atd their children and burn their' houses if Samudio is defeated. As the contested election continues unresolved, the potential forvio- lence rows. SECRET 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET HAITIAN EXILE INVASION FAILS The invasion of northern Haiti by a group of 25 to 30 non- Communist exiles on 20 May was suppressed by government forces the next day, leaving President Duvalier in as strong a position as ever. After an ineffectual aerial bombing of the National Palace in Port-au-Prince, the invaders captured the airfield at Cap- Haitien and took the military commander of the north prisoner. Their plan to bring in a second group of approximately 100 men from the launching point in the Bahamas was frustrated, however, by the government's recapture of the field the following morning. The invasion leaders--who had been involved in prior attempts in 1963 and 1964--reportedly es- caped. Some 18 of the other insurgents also remain at large and there may be skirmishes as military units and militia at- tempt to track them down. The invasion was sponsored by the Haitian Coalition--a non- Communist Haitian exile group based in New York. The invasion failed because of inadequate or- ganization on the part of the exile group, which was not able to reinforce or resupply the in- vaders. The exiles also mis- judged the capability and loyalty of Duvalier's security forces as well as the extent of popular support that would be forthcoming. Duvalier reacted calmly and confidently. He dispatched approx- imately 200 of his most effective tactical troops to the area under the leadership of the capable Lt. Col. Franck Romain. Romain distinguished himself in a campaign against a group of invaders in 1964. The secret police immediately began to ar- rest all potential government opponents as well as relatives of the invaders. Duvalier de- liberately kept news of the in- vasion from the public until the situation was well under control. The invasion attempt is likely to reinforce Duvalier's underlying bitterness and antag- onism toward the United States. He appears convinced that the US was involved in the plans and suggested as much in a note to the UN on 22 May requesting a special meeting of the Secu- rity Council. He protested anti-Haitian propaganda by American news media and the alleged presence of US "warships" in the area. SECRET 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Next 1 Page(s) In Document Denied Iq Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET ECUADOREAN ELECTION CAMPAIGN NEARS THE FINISH LINE Preparations for Ecuador's presidential and congressional elections on 2 June are proceed- ing smoothly.. Little fraud is expected, and the role of the military probably will be lim- ited to guaranteeing order. Center-left candidate Andres Cordova continues to gain strength at the expense of the two leading candidates, Jose Maria Velasco and conservative Camilo Ponce. Clashes between Velasquistas and center-left sup- porters are continuing; such vio- lence is a measure both of the closeness of the presidential race and depth of the political passions it has aroused. Rowdy antics of followers of former president Carlos Julio Arosemena, who is supporting Velasco, will probably cost the Velasquista congressional ticket some support, although Carlos Julio is virtu- ally assured of winning a senate seat. There is some military un- easiness over the possibility that Carlos Julio might go on to win the Senate presidency, which would put only the vice presi- dent--a nonentity--between him and the presidency. The US Embassy comments that while the military would be reluctant to overthrow a popularly elected Velasco gov- ernment, it would not take lightly the idea that Arosemena could regain a position of real power. A total of 1,198,987 citi- zens--some 21 percent of the population--are registered to. vote, and observers expect that approximately 850,000 of them will actually cast their ballots. This would be an increase of 100,000 over the vote in the 1960 presidential elections. At the request of President Otto Arosemena, the Organization of American States will send a group of observers headed by a Panamanian to monitor the elec- tions. Although the observers could verify that the govern- ment's organization and admini- stration of the elections are relatively honest and efficient, they would be in no position to evaluate the principal opposi- tion charge of electoral fraud 25X1_ in terms of voter registration. SECRET Page 30 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 SECRET POLITICAL AND ECONOMIC DETERIORATION IN URUGUAY President Pacheco's pros- pects for dealing with Uruguay's basic economic problems have been dimmed by a protracted cabinet crisis and by labor agitation. Although Pacheco managed to form a new cabinet after the old one resigned a month ago, the subsequent resignation of Inte- rior Minister Legnani demonstrated the continued lack of political stability and has sparked rumors of further resignations.. Finance Minister Cesar Char- lone now is under attack by Com- munists and other opposition elements within the legislature because of his identification with the unpopular economic aus- terity program. Pacheco report- edly will defend him by all con- stitutional means and has threat- ened to dissolve Congress and call for new elections if Char- lone is forced to resign. Outside the cabinet, Central Bank President Enrique Iglesias has been severely criticized in government circles for his role in the latest currency devalua- tion. Charges were made that a cabinet: minister or top bank official leaked advance word of the devaluation to foreign ex- change speculators, and Pacheco authorized a Senate investigation. Although the investigation is not completed, the Senate is attempting to publish a confi- dential. Central Bank Report that would trend to embarrass Iglesias regardless of his guilt or inno- cence. Press reports continue to speculate that both Iglesias and Charlone will resign. A dramatic increase in la- bor agitation is threatening Pacheco's wage stabilization policies. A recent offer to government workers would increase salary expenditures by approxi- mately 20 percent, compared with the 17 percent a representative of the International Monetary Fund had earlier described as the limit the government can afford. Even with the more gen- erous crovernment offer, worker demands have not been met and organized labor may feel that its position is strong enough to hold out for still higher wages and benefits. SECRET Page 31 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 SECRET GOVERNING PARTY WINS DOMINICAN ELECTIONS President Balaguer's govern- ing Reformist Party (PR) won heavily in last week's municipal elections in the Dominican Re- public. Provisional returns released by the Central Electoral Board show the PR winning in 66 of the 77 municipalities contested. In patronage-rich Santo Domingo the party polled slightly more than 65 percent of the vote, and in the country's second largest city, Santiago, its plurality was over 47 percent. Independent slates topped the balloting in nine contests, and the Social Christians won in two. The left- of-center Dominican Revolutionary Party, which had controlled 13 local governments including Santo Domingo, abstained on grounds that the elections were rigged by the PR. Slightly over 55 percent of an estimated 1.8 million eligible voters turned out for what has been termed one of the most orderly elections in the nation's history. In the 1966 presiden- tial and congressional elections, 79 percent of the estimated 1.7 million voters went to the polls. The size of the vote was. held down by heavy rains on elec- tion day and the local rather than national character of the elections, as well as by the abstention of all opposition parties except the Social Chris- tians. Reactions to the outcome, have included charges of fraud by defeated candidates. Comm4- nist elements have interpreted what they call a mediocre turn- out as a repudiation of the Balaguer government. The Pre4i- dent has described the result$ as the "worst defeat of the oppo- sition." The Social Christians, however, were cheered by their performance as they quadrupled the vote they received in the 1966 elections. There were scattered minor incidents of violence, but plans to disrupt the election never materialized, in part because: of heavy security precautions, SECRET 25X1 Page 32 WEEKLY SUMMARY 24 May 68 Approved For Release 2008/10/29: CIA-RDP79-00927A006400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5 Secret Secret Approved For Release 2008/10/29: CIA-RDP79-00927AO06400080001-5