WEEKLY SUMMARY

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CIA-RDP79-00927A006700070001-3
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S
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37
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December 21, 2016
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July 2, 2008
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1
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Publication Date: 
November 15, 1968
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SUMMARY
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Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY OSD review State Dept. review completed completed Secret 45, 15 November 1968 No. 0047/68 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 25X1 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET (Information as of noon EST, 14 November 1968) VIETNAM Amid some signs that the Saigon government is looking for ways to close ranks with the US, the Vietnamese Communists stepped up their propaganda efforts to exploit Saigon's absence from Paris. Meanwhile, the Communists launched their first large-scale attack in South Vietnam since late September, although the bulk of their main force units remain in border and base area sanctuaries. P age 1 COMMUNISTS PREPARE TO RESUME MILITARY ACTIVITY IN LAOS 4 No significant fighting has yet developed in Laos as the rains taper off, but signs still point to a re- sumption of limited Communist offensive activity during the coming dry season. OKINAWA'S NEW CHIEF EXECUTIVE FOCUSES ON REVERSION The election of the Okinawan leftist opposition's candidate as chief executive on 10 November fore- shadows greater Okinawan pressures on the.US and Japan for early action on the question of reversion of the islands to Japanese administration. OSD review completed SECRET Page i WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET SOUTH KOREANS COUNTER LARGE GROUP OF NORTHERN AGENTS South Korean security forces are making good progress in tracking down the North Korean infiltrators who landed on the central coast early this month. Europe CZECHOSLOVAKS MAKE NEW CONCESSIONS TO SOVIET UNION The Dubcek leadership will probably lose more of its popularity as it continues to make concessions to the Soviets, whose support for conservatives within the Czechoslovak party is becoming more open. MOSCOW SEET'S A RETURN TO NORMAL RELATIONS WITH THE WEST Makin, determined effort to restore a business-as- usual a isphere to its relations with the West, the USSR hopes to sell the notion that Soviet domination of Eastern Eupore--on which Moscow has been insist- ing vehemently--is one thing, while "detente" is another. WEST GERMANY PUSHES SALE OF LEOPARD TANKS Having now equipped its own forces with the Leopard tank, West Germany has negotiated contracts with Belgium, the Netherlands, and Norway, and is seeking additional markets. USSR APPLIES ECONOMIC PRESSURE ON YUGOSLAVIA Several Soviet commercial actions have been directed against Yugoslavia since its criticism of the in- vasion of Czechoslovakia, leading Belgrade to fear a Soviet economic reprisal. FRENCH SUCCEED IN SWING-WING AIRCRAFT DEVELOPMENT After a year of testing, the single-engine prototype of the Mirage-G swing-wing fighter has proven to be a technical success. SECRET Page ii WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET Middle East - Africa THE WEEK IN PERSPECTIVE POTENTIAL REMAINS FOR ARAB STATES - ISRAELI DONNYBROOK No major incidents have taken place in the past week but the area remains in an uneasy truce, with spo- radic shooting exchanges taking place along the Jordan border on a daily basis. STUDENTS SPARK ANTIGOVERNMENT DISORDERS IN PAKISTAN West Pakistan remains tense following nearly a week of student riots, a possible attempt on the life of President Ayub Khan, and the arrest of former for- eign minister Z. A. Bhutto. ELECTIONS SET FOR FRENCH TERRITORY OF AFARS AND ISSAS In contrast to the volatile atmosphere that often surrounds major political events in the French Ter- ritory of Afars and Issas, the current election campaign seems to be proceeding quietly and proba- bly will produce little in the way of political change. COMMUNIST CHINA RETAINS AN AFRICAN FOOTHOLD For a number of years, Peking has been extending substantial economic and military aid to several African countries, notably Tanzania, Mali, and Guinea, which in turn to varying degrees look to China as a model. Chinese prestige is high in a number of other countries as well, largely because of Peking's low-key diplomacy and well-run, liber- ally financed aid projects. SECRET Page iii WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET Western Hemisphere THE WEEK IN PERSPECTIVE 25 DISCONTENT GROWING IN BRAZIL In the present atmosphere of military and civilian dissatisfaction, any serious new incident could move President Costa e Silva toward more authoritar- ian government. VENEZUELAN ELECTION CAMPAIGN ENTERS FINAL PHASE The four leading presidential contenders have tried to enliven the campaign by trading charges of coup plotting, election fraud, and violence, but without any major issues at stake these tactics do not ap- pear to have aroused the electorate. PANAMA'S MILITARY GOVERNMENT RELAXES CONTROLS The junta has taken several steps toward returning the Country to normality, although some constitu- tional guarantees remain suspended and press censor- ship continues. COLOMBIA'S QUIET POLITICS BEGIN TO HEAT UP An impasse in the Colombian Senate over President Lleras' constitutional reform bill has surfaced growing strains within the National Front coalition. PRESIDENT PACHECO MAKING SOME PROGRESS IN URUGUAY President Pacheco is meeting with some success in his uphill, battle to halt inflation, control the security situation, and get key legislation through a hostile congress. SECRET Page iv WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET Saigon, while holding out for a status in the Paris talks on a par with Hanoi and higher than the Liberation Front, seems to be groping for ways to close ranks with the US. The solid support initially given by South Viet- namese to President Thieu's strong stand on the issue is eroding slightly as some of his rivals begin to criticize him for inflexibility in his jousting with the Americans. After some initial fumbling, the Vietnamese Communists have de- veloped a reasonably clear propaganda line regarding Saigon's reluctance to come to Paris. They say in essence that it matters little to them whether Saigon comes or not because the Front is competent to speak for the South Vietnamese. Front spokesmen, with the stage pretty much to themselves, have exploited Saigon's absence from Paris to emphasize the Front's sup- posed legitimacy, pointing to the emergence of a "revolutionary adminis- tration" throughout the South and recognition of the Front by foreign powers. Communist forces in South Vietnam, for the first time in seven weeks, staged a multibattalion attack on 14 November. The unsuccessful and costly assault against an allied artillery base in northeastern Tay Ninh Province broke this week's pattern of generally small-scale and widely scattered artillery, rocket, and mortar harassment. With the advent of the dry season in Laos, Laotian and Vietnamese Communist forces appear to be completing preparations for their annual limited offensive. In the north, the enemy is expected as usual to move against numerous guerrilla pockets in Houa Phan and Xieng Khouang prov- inces. Activity in the south will probably await completion of the rice harvest at the end of this month. The election of the leftist opposition's candidate as Okinawa's chief executive will increase pressure on the US and Japan for the early reversion of the Ryukyus to Japanese administration. This was a major element in Chobyo Yara's campaign, and one of his first postelection statements called for the establishment of a unit in his administration to prepare for reversion. On local issues, Yara will probably try to steer a moderate course, but he may have trouble controlling extremists in his coalition who are much more strident than he is on matters relating to the vast US military presence on SECRET Page 1 WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET VIETNAM There are some signs that the Saigon government is begin- ning to look for ways to close ranks with the US, but it is still sticking to its stated precondi- tions that any Saigon delegation at the Paris talks must have sta- tus equal to Hanoi but superior to the National Liberation Front. Thieu's stand on this issue has at least temporarily enhanced his national standing and has won public support from his strongest critics. On the other hand, some of his opponents are apparently trying to take advantage of Thieu's differences with Washing- ton by privately criticizing him as too inflexible. Public criti- cism has generally been muted; the government has tightened its press controls to prevent attacks on its policies toward the talks. The only significant dissident note sounded in public has come from the militant Buddhists, who want the government to join the talks immediately. They claim that the present impasse would never have occurred if Thieu had kept the country from becoming overly dependent on foreigners, thus attacking his performance as a national leader while most oth- ers are praising him. During the last few days, the government has embarked on a limited publicity campaign to re- furbish its image abroad as a peace-loving nation, originally pushing the line that South Viet- nam would like to get on with the talks as soon as possible. The firmness of public comments by South Vietnamese officials defend- ing the government's stand, how- ever, has tended to sharpen the impression of a rift with the US. Vietnamese Communist efforts to exploit Saigon's absence from Paris have gained some momentum after an unsteady beginning. A fairly consistent Communist line has emerged that is designed to damage Saigon's prestige, bolster the status of the Front, exacer- bate US-Saigon differences, and place the blame for the two-week- old impasse solely on the US. The main Communist public effort has been to push for the opening of tripartite talks in Saigon's absence. Several spokes- men, including Xuan Thuy and Madame Binh in Paris, have as- serted that Saigon's presence is not necessary because the Front is "competent" to speak for the South Vietnamese. They have sought to embellish and legiti- mitize this "competence" of the Front by pointing to the emergence of a "revolutionary administra- tion" throughout South Vietnam and to the recognition of the Front by foreign states. These claims stop just short of pro- claiming the Front a government. Meanwhile, Hanoi apparently has been reviewing its policies in preparation for the next stage of negotiations, and politburo member Le Duc Tho may well return to Paris soon. A general recall of North Vietnamese diplomats has SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET been under way for some weeks. While in Hanoi, the diplomats al- most certainly will be briefed on the situation in South Vietnam and Paris, and will be given new guidelines. North Vietnam has treated continued US aerial reconnaissance in a way that leaves the Commu- nists free to use this issue at any time to block progress in the Paris talks. Hanoi has issued a handful of pro forma complaints about reconnaissance in the past week, charging that these flights violate North Vietnamese sover- eignty, but they are refraining at the moment from saying that the flights constitute an obstacle to proceeding with the Paris talks. Meanwhile, Communist anti- aircraft gunners have stepped up their firings at reconnaissance aircraft over North Vietnam and have downed three drones since the bombing halt took effect. Military Developments in the South For the first time in some seven weeks, the Communists late this week staged a multibattalion attack on an allied field posi- tion. Following a heavy mortar barrage, an estimated two enemy battalions stormed a remote artil- lery base in northeastern Tay Ninh Province. The attackers withdrew after more than seven hours of fighting, leaving nearly 300 bod- ies and numerous weapons behind, and resumed shelling the outpost. With the return of improved weather conditions in the area, this attack could signal the be- ginning of renewed enemy offen- sive activity in northwestern III Corps, where a large concen- tration of enemy combat units has assembled in recent months. Meanwhile, with the bulk of the Communists ' main force units still in border and base area sanctuaries, the remaining enemy forces are attempting to maintain some pressure on allied forces by increasing the number of small- scale attacks. During the week, these enemy tactics continued to feature mor- tar and rocket attacks against allied bases and smaller urban centers in scattered areas from the Demilitarized Zone to the delta provinces. These barrages included at least seven launched from within the zone against al- lied targets just to the south. Ground fighting this week gen- erally developed as the result of allied offensive operations and countermeasures taken in re- action to enemy bombardments. There have been further in- dications of enemy plans for at- tacks at varying times from mid to late November in selected sec- tions of South Vietnam, but the weight of the evidence suggests that this activity will be limited largely to shellings and light ground actions. 25X1 SECRET Page 3 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET COMMUNISTS PREPARE TO RESUME MILITARY ACTIVITY IN LAOS No significant fighting has yet developed in Laos as the rains taper off, but signs still point to a resumption of limited Communist offensive activity dur- ing the coming dry season. In the north, the enemy ap- pears to be setting the stage for the annual effort against guerrilla positions in Houa Phan and Xieng Khouang provinces. Roads are being constructed to- ward major government base areas and, in recent days, the Com- munists have taken a number of outlying defensive positions in the Houei Hinsa area. An enemy build-up is also currently threat- ening government forces at Phou Pha Louam, a position astride Route 6 that has frequently changed hands. In the northwest, Chinese construction units have resumed work on the road net from southern Yunnan Province into northern Laos. Since early September, sev- eral thousand Chinese--possibly including engineers--have been working on a road that reportedly will be constructed south from the border to Nam Tha, with a branch heading southeast to Muong Sai. Roads linking China with these villages would facilitate the flow of supplies to Pathet Lao troops in the remote areas of northwestern Laos. The cur- rent activity is the most sig- nificant since 1963, when similar numbers of Chinese laborers were used to complete the Meng-la - Phong Saly road. In the south, Communist of- fensive activity continues to focus on Muong Phalane, which the government recaptured in late August. Government air strikes have succeeded in keeping the enemy off balance, and there is no indication that the Communists intend to launch the concerted thrust necessary to retake the area. In the northern Bolovens Plateau area, government forces have moved back into the Toumlane Valley, which they lost last De- cember. In addition, government forces have taken advantage of a recent lull in enemy activity to clear enemy forces east of Sara- vane. If the enemy remains true to form, offensive activity will probably not begin until the rice harvest is completed in late No- SECRF:]' Page 4 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET LAOS: Current Situation Phong i..~~ ~. Sty t..li.. Men la, L ; Chinese resume road construct on BURMArr?? - Road construction Government-held location Communist-controlled territory Contested territory SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET OKINAWA'S NEW CHIEF EXECUTIVE FOCUSES ON REVERSION The election of the Okinawan leftist opposition's candidate as chief executive on 10 November foreshadows greater Okinawan pressures on the US and Japan for early action on the question of reversion of the islands to Japanese administration. in his campaign, Chobyo Yara, who won by an unexpectedly wide margin, advocated immediate, unconditional reversion and re- moval of B-52s from bases in Okinawa. He also deplored "ra- dioactive contamination" of har- bors by US nuclear submarines and base-related damage to pri- vate property. In his first postelection speech, Yara was consistent with his campaign position on reversion, and called for the creation of an organiza- tion in his administration to prepare for reversion. He did not,'however, refer directly to issues involving the bases. Yara's private comments to the US high commissioner prior to the election suggest, however, that while he will con- tinue to press the US and Japan for early reversion he will not publicly call for a drastic cutback in US forces on Okinawa. He is well aware of the heavy dependence by much of the popu- lation on income generated by the US bases and realistically appreciates the disruption that a withdrawal of the US presence would cause in the Ryukyuan economy. Yara will probably staff his government with noncontro- versial moderate Socialists who will, at least for the immediate future, be inclined to preserve the existing good working rela- tionship with the US military administration. Some problems may arise, however, if Yara presses the US for greatly ex- panded local autonomy. Addition- ally, he may have difficulty in dealing with extremist elements of his coalition regarding the maintenance of adequate security for US bases. Yara's election was widely interpreted in Japan as an overwhelming mandate by the Okinawan people for rapid rever- sion, an impression quickly exploited by the Japanese op- position parties. Moreover, a o s room tor maneuver in dealing with the US on the reversion question may be further restricted. SEC R 1'F Page 6 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET SOUTH KOREANS COUNTER LARGE GROUP OF NORTHERN AGENTS 25X1 25X1 25X1 South Korean security forces are making good progress in track- ing down the North Korean infil- trators who landed on the central coast early this month. Of the estimated 60 agents involved. 26 have killed hp,-n The intruders are believed to have been organized into four teams of 15 men each. A bitter cold wave and snow in the operational area should make it even more difficult for the remaining infiltrators to move undetected and to obtain ade- quate food supplies. identified the infiltrators as be- ing with the North Korean 124th Army unit, which was responsible for the attempted raid on South Korea's presidential residence last January. According to evidence from civilians in the area the infiltra- tors were to establish operational bases and intelligence nets, in- doctrinate villagers, recruit ci- vilians for agent work, and col- lect intelligence on South Korea's military forces. The operational plan reportedly called for an eight-day mission followed by a 20-day march north to exfiltrate across the Demilitarized Zone. Apparently only one of the agent teams succeeded in occupy- ing a village. On 3 November, it forced the villagers to listen to "lectures" and to sign applica- tions for membership in the North Korean Labor Party. One villager was beaten to death in front of the others as a "propaganda" les- son. This is the first instance of armed propaganda since the Ko- rean War. Pyongyang radio is claiming that the "revolution" in the South is rapidly gaining in scope and strength, but all indications show that the North Koreans are only alienating the populace by their actions along the Demili- tarized zone and within South Ko- rea. 25X1 SECRET Page 7 WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET SECRET Page 8 WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET Moscow's effort to compartmentalize its foreign policy came through more clearly this week. In a major speech at the Polish party congress, General Secretary Brezhnev demanded tight party control within Communist countries and emphasized the "imperialist" threat. A day earlier, Premier Kosygin sought out former defense secretary McNamara, who was passing through Moscow, and told him of the USSR's continuing interest in opening talks with the US on the limitation of strategic arms. The Soviet leaders' difference in approach was, in part, a reflection of the audiences to which they spoke, but it showed up in other places as well. Moscow kept steady pressure on the Czechoslovak leaders, for example, and pushed foreign Communist leaders reluctant to follow the Soviet lead on Czechoslovakia and the World Communist Conference. In a variety of other trouble spots, however, Soviet officials tried hard to foster a "business- as-usual" atmosphere. The Czechoslovak party central committee convened on 14 November for a three-day meeting. there may be some personnel changes and consideration given a e mee ing to new concessions to the USSR in domestic and party affairs. Such steps are likely to lose more popular support for the Dubcek regime. At the well-managed party congress in Warsaw, the facade of unity was maintained by Gomulka and both his major challengers, hard-line party secretary Moczar and reformist politburo member Gierek. A deal on the sharing of power evidently had been worked out ahead of time. The East Germans have again been inspiring rumors that they will further restrict the travel of West Germans and West Berliners to and from West Berlin. East Germany already controls various aspects of such travel as well as the movement of goods and could easily invoke other controls that would not affect the Allies' access rights. The NATO members' foreign, defense, and finance ministers met in Brussels to seek agreement on new ways of strengthening the alliance. The conference, a regular semiannual event, had been moved up from mid- December to underscore Allied concern over the events in Eastern Eu- 25X1 rope. SECRET Page 9 WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET CZECHOSLOVAKS MAKE NEW CONCESSIONS TO SOVIET UNION The Dubcek leadership is making new concessions to Mos- cow, and will probably lose more of its popularity in the process. The party central committee, which opened its plenum on 14 November, is reviewing a draft document that calls for a closer adherence to Moscow's interpre- tation of "normalization." It proposes organizational and personnel changes that will mean, according to one source, "disil- lusionment for the nation." Liberal party presidium members Mlynar and Spacek are said to be dejected by Dubcek's acquiescence to Moscow, and Mly- nar's resignation may be presented to the meeting. Moreover, a ma- jority of the presidium may be ready to accept more pro-Soviet conservatives into the party leadership. Before the plenum, the party took several major steps to sat- isfy the Soviets. It restricted foreign travel, expelled some foreign correspondents, forcibly broke up anti-Soviet demonstra- tions while sternly warning against any renewed outbreaks, and suspended several major pub- lications critical of the Soviets. There are indications that the hard liners are about to be given a large measure of control over Czechoslovak mass media through their appointments to key govern- ment and media posts. Czechoslovak youth, con- cerned over the outcome of the plenum, have threatened to demon- strate throughout the country if decisions taken by the central committee are too favorable to the conservatives. Student leaders are planning a general strike and street demonstrations on 17 Novem- ber, even though Dubcek and other top leaders--aware that Soviet patience is wearing thin--have warned that any disturbances will be put down with force. More- over, the youth and workers re- portedly have set up committees to arrange joint strikes to pro- test the Soviet occupation. Moscow is leaving the ini- tiative at this stage to its conservative allies within the Czechoslovak party, but its sup- port of them is becoming more open. Soviet officers have been much in evidence at the recent demonstrations by Czechoslovak hard liners, and last week the occupation forces added a weekly publication to the Czech-language propaganda daily that they have distributed since the early days of the occupation. The Soviet- run "Radio Vltava" continues to issue daily demands for the sup- pression of "antisocialists" while praising "true" Communists. \ 25X1 SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET MOSCOW SEEKS A RETURN TO NORMAL RELATIONS WITH THE WEST Moscow is making a determined effort to restore a business-as- usual atmosphere to its relations with the West. The Soviet aim is to implant the notion that Soviet domination of Eastern Europe--on which Moscow has been insisting vehemently--is one thing, while "detente" is another. To this end, the Soviets have toned down their propaganda attacks on the West, have made a number of con- ciliatory gestures on particular issues, and have tried to revive interest in questions of mutual East-West concern. The USSR has publicly and privately made clear that it is willing to begin exploratory talks with the US on limitation of stra- tegic weapons. At a Soviet anni- versary reception in London last week, for example, a Russian dip- lomat urged that the US get on with arms discussions. In the main address at the celebration of the Bolshevik Revolution in Moscow on 7 November, First Dep- uty Premier Mazurov reiterated Russia's readiness to do so, as did the Soviet ambassador at the UN in a major speech on disarma- ment this week. Premier Kosygin was apparently eager to convey the same message to former de- fense secretary McNamara in Mos- cow this week. The Russians also have moved recently to.conclude some minor agreements with the US on which both sides had been marking time, including a long-planned exchange of new embassy sites. The pur- pose of these actions clearly was Page 11 to hasten the end of the period of coolness in Soviet-American re- lations which set in with the in- vasion of Czechoslovakia. In ad- dition, the Soviets and their East German allies refrained from re- taliatory moves during a fortnight of West German meetings in Berlin, although Moscow may yet give East Germany the green light to impose new restrictions on West German ac- cess to Berlin. It seems clear, however, that the Soviets wish to avoid the kind of harassment that could lead to a Soviet-Allied con- frontation. The Soviets recently took pains to receive amiably the UK's new ambassador in Moscow. Presi- dent Podgorny contended that An- glo-Soviet relations had suffered "unnecessarily" as a result of the Czechoslovak affair. Moscow's diplomatic efforts have resulted in the rescheduling for this winter of a session of the Franco-Soviet "Grande Commis- sion" on cooperative projects, which was due to meet in Septem- ber but had been postponed by Paris. The Soviets have studi- ously avoided including France in their press attacks on the "impe- rialist" West since the Czecho- slovak invasion in order to main- tain at least the appearance of a special "detente" with Paris. Recently, some of the venom has been dropped from Soviet propa- ganda directed at West Germany, a favorite target. Indeed, Mos- cow has made the gesture of of- fering to reopen negotiations with Bonn on a civil air agreement. SECRE'I' Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET Moreover, the USSR has generally muted its anti-Western propaganda, and for several weeks has ceased to accuse the US of having incited Czechoslovak "reactionaries." Other efforts to improve the Soviet image can be found in the succession of high-level foreign visitors welcomed in the USSR. Since the invasion, ranking offi- cials from all of the non-Commu- nist countries on Russia's borders except Turkey and Norway have re- ceived the red carpet treatment. WEST GERMANY PUSHES SALE OF LEOPARD TANKS Having equipped its own forces with the Leopard tank, West Germany has negotiated con- tracts with Belgium, the Nether- lands, and Norway, and is seeking additional markets. Belgium announced last year that it would purchase 334 Leop- ards at less than $250,000 each. The total cost, including spare parts, was slightly over $90 mil- lion, which the Germans agreed to offset completely through the purchase of Belgian products. Deliveries probably will run through early 1970, and Belgium is expected to phase out the US- made M-47s as the Leopards are received. The Netherlands has agreed to purchase 415 Leopards with an option to buy 135 more. The Dutch will be paying about the same unit price as the Belgians. Deliveries will begin late next year and are to be completed by Page 12 1971. The new US-German main battle tank (MBT-70) was in com- petition but lost out because it will not be available for several years. The Dutch may buy MBT-70s later but they have already or- dered enough Leopards to replace about two thirds of their present tank force. Norway is purchasing 74 Leop- ards. Despite hard bargaining, the Norwegians will be paying considerably more per tank than the Belgians or the Dutch. The higher per-unit cost stems from more stringent offset arrangements and from the special equipment needed for Arctic operations. De- liveries are to be completed by mid-1970. The 105-mm. cannon on the Leopard is effective to a range of more than 3,000 meters. The tank itself is capable of deep- fording with a snorkel, and can be buttoned up for protection SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET THE WEST GERMAN "LEOPARD" TANK COMBAT WEIGHT ARMAMENT AMMUNITION CREW MAX. SPEED RANGE against chemical, biological, and radiological warfare. German manufacturers have sold more than 2,500 Leopards to the German and other West European armies over the past several years--at the expense of US, Brit- ish, and French tank manufacturers. Inasmuch as the export sales have involved substantial offset ar- 39 tons 105mm gun 63 rounds 4 men 40-44 mph 350 miles rangements, however, they have not significantly augmented West German foreign exchange holdings. Nevertheless, the Germans can be expected to push for additional sales, restrained only by their ability to meet delivery sched- ules. At their present produc- tion rate of 35 to 40 per month, they are already committed until about mid-1970. SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET USSR APPLIES ECONOMIC PRESSURE ON YUGOSLAVIA Several Soviet commercial actions have been directed against Yugoslavia since its criticism of the invasion of Czechoslovakia, leading Belgrade to fear a Soviet economic reprisal. Nevertheless, Yugoslav-Soviet trade under ex- isting agreements, including de- liveries under Soviet industrial credits, has continued thus far. Soviet pressure on Yugosla- via since August has taken sev- eral forms. Shortly after the invasion, Moscow canceled a con- ference that was to discuss So- viet purchases of Yugoslav ships worth about $200 million. Nego- tiations on Yugoslav railway car sales to the USSR and other War- saw Pact countries have been de- layed. Recently, Soviet state banks have refused to purchase Yugoslav commercial paper, thus causing a reduction in its value and complicating Belgrade's trade relations with the West. The USSR has also delayed the beginning of talks, usually held in the fall, on the 1969 Soviet-Yugoslav trade protocols. In sharp contrast, the USSR has either concluded or is in the process of negotiating protocols with all its other trading part- ners in East Europe. If the USSR and the other Warsaw Pact countries break eco- nomic relations with Yugoslavia, the country at the maximum would lose one third of its export mar- ket and one fourth of its total supply of imports. The effect on the entire economy of such a trade cutoff would be to slow down domestic production and raise unemployment. The main impact would fall on the exports of the steel, machine building, chemical, textile, and shipbuild- ing industries. A rupture in Yugoslavia's Eastern trade would also set back temporarily the liberalizing measures that are part of the economic reform. Belgrade prob- ably would increase import and price controls, and exercise a more direct influence on produc- tion and investment decisions to assure that changes in output and employment would conform to the altered foreign trade con- ditions. Rationing of some raw materials might be necessary until new sources of supply could be found. A trade cutoff would almost certainly result in new requests for Western assistance in re- scheduling debt repayments and providing long-term credits. Although Yugoslavia and the War- saw Five reportedly have agreed privately that normal economic relations will be maintained despite political controversy, Belgrade's distrust of Soviet intentions is leading it to make increased efforts to solidify and broaden its commercial con- tacts with the West. As a re- sult, Yugoslavia's trade with the Warsaw Pact countries is not likely to increase significantly in the next few years unless the political atmosphere improves markedly. SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET FRENCH SUCCEED IN SWING-WING AIRCRAFT DEVELOPMENT ENGINE SPAN LENGTH RADIUS SPEED COMBAT CEILING ARMAMENT WEIGHT l turbofan 43 feet 55 feet 350 nautical miles 1,435 knots (Mach 2.25) 65,600 feet unknown 50,000 pounds After a year of testing, the single-engine prototype of the Mirage-G swing-wing fighter has proven to be a technical success. The aircraft was tested at both high and low altitudes at speeds as low as 98 knots and as high as Mach 2.25. According to Dassault, its manufacturer, the aircraft can land with its wings fully swept. No other swing-wing aircraft is known to have ac- complished this maneuver, al- though it has been a standing requirement in all known swing-wing designs. Reflecting confidence in Dassault's progress toward an operational variable-geometry fighter, the French Government recently placed an order for the development of two pro- totypes for a larger, and faster (Mach 2.5), twin-engine, swing-wing fighter--the Mirage G-4. The French Navy had been interested in the smaller Mirage-G, since it would have been more suitable for air- craft carrier operations, but the French Air Force wanted the larger G-4. Inasmuch as French aircraft carriers probably will be phased out SECRET Page 15 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET soon, the Navy could use the larger G-4 at its land-based facilities. Flight testing of the G-4 is scheduled to be- gin in late 1970 or early 1971. The early success of the Mirage-G has increased the number of potential customers, and Dassault now is attempting to determine how many NATO countries would be interested in a tactical version of the Mirage G-4. Dassault also has agreed to provide its de- sign techniques to a US firm, which thus hopes to avoid the problems encountered by other swing-wing aircraft developers SECRET Page 16 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET UN representative Jarring's mission to mediate the Arab-Israeli dispute is still stalled, and it will take a good bit of ignition repair to get it moving again. Meanwhile, sporadic shooting exchanges occur daily along the Jordan- Israel frontier. Israel may believe that the current gloomy prospects for a peaceful settlement will remove any restraints against taking strong retali- atory action against either Jordan or Egypt. Lebanese Prime Minister Yafi, in a move to change the political com- plexion of his cabinet, submitted his resignation on 12 November. He probably achieved his aims, because he withdrew the resignation the follow- ing day. In Pakistan, the government has moved to quell disturbances by arrest- ing potential troublemakers. It also arrested ex - foreign minister Bhutto, whose appearance in several cities sparked student demonstrations. The arrests probably will increase the chances of further serious trouble. On the African continent, Communist China continues its support of such radical African states as Mali, Guinea, Congo (Brazzaville), and Tan- zania with economic aid programs. Algeria is moving to improve its relations on several fronts. The Al- gerian press has announced that Premier Boumediene will visit Morocco early in January to resume discussions with King Hassan begun in September at the African summit meeting in Algiers. To be meaningful, such discussions must touch on the problem of the undefined Saharan border, the site of a short war in 1963. Foreign Minister Bouteflika has returned from a week's visit to Cuba, where he sought to warns up the chilly relations that have prevailed since Castro's pal Ben Bella was overthrown in June 1965. Widespread disorders have occurred in Sierra Leone, where the coun- try's two tribally and regionaly based political parties are competing in important parliamentary by-elections. Prime Minister Stevens, faced with a fractious army and unable to control extremists in his party, has done little to stem the serious tribal polarization between the political forces. Uganda's President Milton Obote continues to take a tough line toward his critics, especially those in the university and the press. The arrests and verbal attacks seem to stem from Obote's hypersensitivity to any criticism as well as from his extreme xenophobia. His tough line has recently taken on an anti-US flavor because, in his view, some of his critics are overly pro- US. SECRET Page 17 WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET POTENTIAL REMAINS FOR ARAB STATES - ISRAELI DONNYBROOK No major incidents between the Israelis and Arabs have taken place in the past week but the area remains in an uneasy truce, with sporadic shooting exchanges occurring along the Jordan bor- der on a daily basis. UN special representative Jarring's efforts to work out an Arab-Israeli peace settle- ment went on the back burner following the departure of the Egyptian, Jordanian, and Israeli foreign ministers from New York. All sides insist they will main- tain contact with Jarring, and there were vague hints of hold- ing talks in Geneva or elsewhere. It seems certain, however, that unless Israel comes forward with some spelling-out of its position on withdrawal from the occupied Arab territories, new talks are unlikely in the immediate future. Italian Foreign Ministry officials have said that their embassies in Moscow and elsewhere have reported that Jarring ex- pects to terminate his mission and return to his Moscow post either at the end of November or in early December. Recent public statements by Israeli officials that there can never be any Arab troops west of the Jordan River, and that Israel will require a presence at Sharm ash Shaikh are not likely to en- courage the Arabs to negotiate a settlement. In Jordan, King Husayn has apparently ridden out for the moment the possibility of another major clash with terrorist organ- izations. He has made no specific statements about his plans for dealing with the groups, but is apparently hoping to avoid open encounters in the near future while working out a long-term strategy for keeping them under control. Whether or not he can successfully carry out such a strategy remains open to doubt. The approximately 20,000 Iraqi forces stationed in north- ern Jordan may also get into the act in the event of future trouble. Should the terrorists, with or without some other political back- ing, move against the King, the Iraqis could easily turn the tide in favor of the coup movement. SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET STUDENTS SPARK ANTIGOVERNMENT DISORDERS IN PAKISTAN West Pakistan remains tense following nearly a week of stu-. dent riots, a possible attempt on the life of President Ayub Khan, and the arrest of former foreign minister Z. A. Bhutto. Quiet reportedly has returned to Rawalpindi, where a dusk-to- dawn curfew has been lifted, and army troops--called out on 8 November to help quell disturb- ances have been withdrawn. Three persons were reported killed, a number injured, and many more arrested during the rioting there. The disorders in the capital city were touched off on 7 November when police forcibly tried to disperse several thousand students, gathered in defiance of a ban on public assembly to greet Bhutto, one of the government's sharpest critics. A stone-throwing melee ensued when police fired into the crowd, killing one student. Although the authorities immediately took precautions and closed the schools in major cities, violence broke out in Karachi and other large cities, includ- ing Lahore, when Bhutto arrived there on 9 November. Peshawar became the center of tension during a progovernment rally on 10 November when a young man fired a pistol twice near the speakers' platform where Presi- dent Ayub sat waiting to address the crowd. Various sources, however, indicated that the firing might have been merely an effort to disrupt the meeting rather than a serious assassination at- tempt. The riots climax a month of largely nonviolent student strikes and marches throughout West Pak- istan. These demonstrations, at the outset based primarily on academic grievances, had become increasingly political and anti- government in flavor, a matter of particular concern to Presi- dent Ayub in this pre-election year. Evidence that professional political agitators were involved in the most recent disturbances aggravated the government's con- cern and led it to detain some suspected troublemakers and, finally, to arrest Bhutto on 13 November. Although the arrest did not result immediately in serious new disorders, it has enhanced the possibility of fur- ther disturbances and, at the least, may bring Bhutto increased stature as a political martyr. Although the riots in Rawalpindi were initially mis- handled by the police, the gov- ernment subsequently responded effectively to the crisis. The police were used mainly to re- strain rather than to prevent the demonstrations, but there was no hesitation to call in the army and use full police powers when this proved necessary. Moreover, despite the unprece- dented manifestations of anti- government sentiment, Ayub appears to retain firm control of the political machinery in Pakistan. SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Next 1 Page(s) In Document Denied Iq Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET ELECTIONS SET FOR FRENCH TERRITORY OF AFARS AND ISSAS In contrast to the volatile atmosphere that often surrounds major political events in the French Territory of Afars and Issas (FTAI), the current par- liamentary election campaign seems to be proceeding quietly and probably will produce little in the way of political change. Elections for the 32 seats of the Chamber of Deputies will be held on 17 November to replace the present parliament chosen in 1963. The tension that has al- ways existed between the pro- French Afar and pro-Somali Issa ethnic groups seems to have sub- sided in recent months. In March 1967, the serious Issa-provoked disturbances that erupted when the territory opted by referendum to remain French appeared to fore- tell continued difficulty for the French. Now, however, both the Afars and the Issas seem to have reached some accommodation. The French also appear to have made some effort to bring the two groups together, and have reportedly made some adjustments to permit a slightly larger Issa represent- ation in the new chamber. The Issas still have griev- ances, however, although for the moment at least they seem to have channeled them into legitimate political activity. The French continue to maintain the political r?r balance clearly in favor of the Afars. Moreover, since the ref- erendum, Afars have replaced the Issa labor force that tradition- ally serviced the port of Djibouti. Assassination attempts in May against the pro-French Afar leader, Ali Aref Bourhan and against an Issa member of the government threatened to rekindle Afar-Issa hostility, but in fact did not arouse much local feeling. Somali Prime Minister Egal's successful efforts to improve relations with Addis Ababa and SECRET Page 22 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRE'T' Paris have helped quiet the Issas of the FTAI. Inflammatory broadcasts from Somalia to the Issas have been stopped by Egal and, in contrast to his predeces- sor, he has apparently refrained from providing clandestine as- sistance to the Issas. Inasmuch as there are more registered Afar than Issa voters, the election results probably will not change the line-up signifi- cantly in the new chamber. The Afars presently hold 16 of the 32 seats with the rest apportioned among the Issas, "nonresident" Somalis (immigrants from Somalia), and the Arab and French population. The presence of 6,000-7,000 French military and police in and around Djibouti should dampen any potential violence, but any incidents there could have re- percussions in Somalia, where the atmosphere is already charged by the parliamentary elections COMMUNIST CHINA RETAINS AN AFRICAN FOOTHOLD For a long time, certain African countries have been re- ceiving considerable attention from Communist China. Through a generally low-keyed diplomatic approach and an open-handed aid program, China has managed to gain a large measure of prestige in a number of countries that to varying degrees look to China as a model in fashioning many of their domestic and foreign policies. Peking can be expected to expand its influence using established positions in east and west Africa as bases for operations. Peking has been most effec- tive with its generous, well-run aid program, which is given in support of such radical govern- ments as Guinea, Mali, and Congo (Brazzaville), as well as to Tanzania's highly nationalistic government and to the revolution- ary movements based in that coun- try. African recipients have been generally well pleased with the Chinese efforts, as the aid is provided with dispatch and is liberally financed. Chinese aid falls into three categories: high-impact projects such as railroad building, gen- eral agricultural development, and military assistance in spe- cific areas. Three countries-- Tanzania, Guinea, and Mali--are the principal beneficiaries of Chinese economic aid programs. Peking has begun preliminary work on a 1,000-mile railroad linking Tanzania and Zambia, which will give Zambia an outlet to the sea through friendly terri- tory. Peking has also agreed SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET to help construct a 200-mile rail link between Mali and Guinea. In addition, the Chinese have offered to modernize the port of Conakry, presumably in antici- pation of increased traffic from the railroad. The three countries have been receiving a wide range of Chinese aid for many years-- Guinea since 1959--and have used about $100 million worth, ex- cluding the railroads, or half that received by all African countries from Communist China. Aid to about a dozen other Af- rican countries consists pri- marily of agricultural develop- ment and construction of light industry such as match factories and sugar mills. In some coun- tries, such as Mauritania, the Chinese have received a warm welcome; in others, Peking's aid serves largely to maintain a Chinese presence, as in Algeria where the Soviets have a massive aid program. The Chinese provide the ma- jor support for the largest and most capable African liberation movement--that aimed at overthrow- ing the white-run government of Mozambique. They also provide limited support to other, smaller insurgency operations in Africa. Peking's aid is largely composed of small arms and other military equipment and instruction in guer- rilla warfare at several training camps in Tanzania. Many of the better qualified Africans are sent to China for specialized training and political indoctri- nation. On a country-to-country basis, the major recipient of Chinese military hardware is Tanzania, which fears possible Portuguese retaliation against the Tanzanian-based and -supported insurgency operations, particularly in Mozambique. The Chinese have provided medium tanks, patrol boats, small arms and ammunition, and military training for the 25X1 police. Peking also has recently agreed to construct a naval support facility in Dar es Salaam. SECRET Page 24 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET WESTERN HEMISPHERE Foreign relations and visiting dignitaries preoccupied the governments of several Latin American nations this week. Peru's military government is moving ahead with its plans to expand ties with the countries of Eastern Europe. Diplomatic relations have already been established with Rumania, and the foreign minister has hinted that relations with other Communist countries may soon follow. Ecuador's President Velasco apparently is also interested in establishing diplomatic relations with most of Eastern Europe's Communist governments. He has already signed an agreement with Rumania, which has had a great deal of success lately expanding its economic and diplomatic ties in the hemisphere. In addition, a consul general from Czechoslovakia arrived re- cently to upgrade his country's trade mission. cuador will soon establish diplomatic relations with the , ast ermany, and Bulgaria, and that consular relations will be opened with Hungary and Poland. The busy Velasco has also declared Ecuador's "acceptance" of last year's Declaration of Punta del Este, reserving at the same time some choice words for his predecessor, Otto Arosemena, for the grandstand play that left Ecuador the only nonsigner. Velasco says that he is looking forward to meeting President-elect Nixon and the other American presidents at a new hemisphere conference to "revitalize" the Alliance for Progress. In keeping with its "buy Europe" policy, Argentina reportedly will soon purchase 12 all-weather French Mirage III supersonic fighters. The Argentine negotiations, which follow Peru's purchase of Mirages last year, may increase Chile's interest in the US-built F-5 or a similar aircraft built in Europe. Cuba had an active week of foreign contacts. In addition to entertaining the Algerian foreign minister, Havana also received a top-ranking East Ger- man politburo member, accompanied by the East German interior minister. A Cuban military delegation to the 51st October Revolution celebration in Moscow has received a warm welcome from Soviet Defense Ministry of- ficials. A Canadian ministerial mission is on a month-long visit to nine Latin countries. The mission has been undertaken to demonstrate Canadian in- terest in Latin America and to determine how Ottawa can play a larger role in hemisphere affairs. Queen Elizabeth and the Duke of Edinbur are also touring South America on a good will mission. SECRET Page 25 WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 SECRET DISCONTENT GROWING IN BRAZIL Military and civilian dis- content with the Costa e Silva government is increasing. A recently published "cap- tains' manifesto" expresses acute dissatisfaction with low military pay and poor personnel practices as well as concern over the army's deteriorating prestige. The young officers particularly criticized the government's failure to de- fend the army against charges that it has usurped power and is op- pressing the people. The manifesto reportedly has won support from some high mili- tary officers, especially those associated with the "hard line" who have long urged a crackdown on "subversives." Army Minister General Lyra Tavares told the press that he views the document as meant only for internal army use, and he claimed that there- fore it is not a "political" man- ifesto. He blamed the press for "distorting the facts of the case in order to promote division and discrediting of the army." The officers will be further irritated by recent bitter attacks in the influential newspaper Jornal do Brasil on the "shameless dic- tatorship" and its harassment of the press. In a second sharp ed- itorial, the newspaper berated the government for its failure to maintain order--citing the bomb- ing of Jornal do Brasil's own warehouse on 7 November as well as damage done by a smaller bomb placed in the Soviet Consulate garden. The government reportedly is tightening military security and keeping younger officers under closer watch. Costa e Silva ap- parently already intends to grant a substantial military pay hike, but he may soon have to accommo- date some of the military's po- litical complaints as well. The administration's contest with Congress is another source of tension. The Supreme Court has officially requested that Con- gress revoke opposition Deputy Marcio Moreira Alves' parliamen- tary immunity so that he may be tried for "subversion"--his of- fense was making a speech in Con- gress condemning the government's "militaristic leadership." If Congress does not accede to the military's efforts to strip Dep- uty Alves of his political rights, it runs the risk of provoking re- taliatory measures. In this atmosphere, any se- rious new incident could move Costa e Silva to adopt a more authori- tarian style government. SECRET Approved For Release 2008/07/02 : CIA-RDP79-00927A006700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET VENEZUELAN ELECTION CAMPAIGN ENTERS FINAL PHASE Venezuela's close-fought election campaign is entering its final phase, but none of the four major presidential candidates has a large enough lead at this time to ensure victory on 1 December. The four leading presidential contenders--Gonzalo Barrios, Luis Prieto, Rafael Caldera, and Miguel Burelli Rivas--have tried to en- liven the campaign by trading charges of coup plotting, elec- tion fraud, and violence, but without any major issues at stake these tactics do not appear to have aroused the electorate. Attempts to portray the Christian Democratic Party and its leader, Rafael Caldera, as exponents of excessive state con- trol and New World Fascism appar- ently have convinced only those already committed to other candi- dates. Charges by the governing Democratic Action Party and its candidate, Gonzalo Barrios, that Luis Beltran Prieto of the People's Electoral Movement has entered into an "unholy alliance" with the Communists have cost Prieto some support, but not enough to put him out of the race. Although leftist splinter groups and the Communists are attracted to Prieto he says that he is not actively seeking Communist support. The ruling Democratic Action Party is banking heavily on the government and its own extensive electoral machinery to secure a victory for Barrios. A large amount of government funds has been spent on public works projects in electorally important areas. The fourth contender, Miguel Burelli Rivas, is running as an 25X1 independent backed by three minor parties. In addition to the presidency for the next five years, the ap- proximately 4.1 million voters will elect all 197 members of the chamber of deputies and all 42 members of the senate. In ac- cordance with Venezuela's unique electoral system, several other senate and deputy seats will be awarded to under-represented par- ties on the basis of their share of the total vote. Because of the number of parties involved in the race and the complexity of the system, no party will have a majority in either congressional chamber. By the same token, it appears likely that the new presi- dent will receive less than 30 percent of the popular vote. A long period of bargaining there- fore is expected before the new president and congress assume of- fice in March. The military has increased its security precautions as a result of recent clashes with guerrillas of the Castro-supported SECRET Page 27 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET Movement of the Revolutionary Left. Troops have also un- covered a substantial quantity of explosives and ammunition, which reportedly were to be used before the elections. Although the ability of the guerrillas to disrupt the elections is limited by their small numbers and effec- tive government security proce- dures, some sporadic incidents may occur during the electoral pe- riod. 25X1 PANAMA'S MILITARY GOVERNMENT RELAXES CONTROLS The Panamanian junta has taken some steps toward returning the country to normality, although some constitutional guarantees remain suspended and press cen- sorship continues. In a move designed to im- prove its image and pave the way for further diplomatic recogni- tions, the government on 8 Novem- ber re-established provisions prohibiting the death penalty, retroactive laws, and double jeopardy, among others. The ar- ticles relating to habeas corpus and freedom of expression remain suspended, however. Newspapers owned by relatives of deposed president Arias resumed publica- tion last week, but were not per- mitted to criticize the govern- ment. Some pro-Arias radio sta- tions'are still off the air. A reshuffle in the national guard command is under way that will set the stage for coup lead- ers Colonels Torrijos and Martinez to take over the top posts. The present guard commander is sched- uled to retire shortly, allowing Torrijos to take his place. Mean- while, Martinez was appointed second in command on 11 November. Active internal opposition to the government has waned since the failure of student groups to spark disorders during the inde- pendence holidays earlier this month. The university resumed classes this week with limited attendance and there have been no signs of renewed antijunta activity. Die-hard Arias supporters have been planning to initiate guerrilla activities near the Costa Rican border and an "in- vasion" was planned for sometime this week by armed refugees in Costa Rica. Exile activities, however, are unlikely to present more than a local problem for the guard; Arias supporters in the border area are poorly trained and organized, and have little prospect of rallying popular su - port at this time. 25X1 SECRET WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET COLOMBIA'S QUIET POLITICS BEGIN TO HEAT UP An impasse in the Colombian Senate over President Lleras' constitutional reform bill has surfaced growing strains within the National Front coalition. Lleras had made adoption of the reforms a major issue, and the senate's recent refusal even to bring the bill to a vote is a rebuff to his strong leadership. The repercussions could have an upsetting effect on the carefully regulated arrangement that has brought some order to Colombian politics after a period of vio- lence and dictatorship. The National Front was formed in 1957 when the Liberal and Conservative parties agreed to subordinate their long enmity during a 16-year period in which they would share equally in of- fices at every level and alter- nate the presidency each four- year term. It has worked rea- sonably well, but problems are increasingly apparent as the time for dismantling the coalition approaches. Many of Lleras' Liberal col- leagues want to begin the process with the 1970 elections, instead of waiting until 1974. They do not believe that Lleras' reforms-- such as strengthening the power of the executive and reducing the number of legislators--are in their interest, particularly in- asmuch as the president to be elected in 1970 will be a Conserv- ative. Some Liberals also re- sent Lleras' decisive and some- times high-handed approach, such as his recent appointment of provincial governors without con- sultation with local party repre- sentatives. This resentment was responsible for an unfavorable legislative vote that caused Lleras to offer his resignation last June, as well as for the de- feat of the reform bill on 5 No- vember. This latest rebuff has raised rumors of a possible po- litical crisis. On the other hand, the ma- jority faction of the Conserva- tives favors the bill, which in addition to strengthening the ex- ecutive in relation to the legis- lature, would restore simple ma- jority rule in congressional vot- ing, increase presidential power in the economic field, restructure departmental and municipal gov- ernments, and spell out the proc- ess of dissolution of the National Front. These Conservatives, led by aging former president Mariano Ospina and his ambitious and strong-willed senator-wife, be- lieve that they stand to gain by having the reforms in force dur- ing the tenure of a Conservative president. Lleras appears to be plan- ning to work with this group to influence their choice of a pres- ident and to find ways to accom- plish his program. He appears ready to drop his efforts to force recalcitrant Liberals into line, and recently said he would treat them as political opposi- tionists. This break could mean that Lleras' supporters will lose control of the party directorate, deepening the internal Liberal rift. SECRET Page 29 WEEKLY SUMMARY Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 SECRET Lleras reportedly has de- cided not to resort to a plebi- scite to prove popular support for his program because of Ospina's opposition to such a move. The President may seek other means to develop the more efficient governmental system he considers as necessary as the far-reaching economic reforms he has instituted. The more forceful the means he chooses, however, the more marked the opposition may become, as is apparent in recent student and labor as well as political diffi- PRESIDENT PACHECO MAKING SOME PROGRESS IN URUGUAY Uruguayan President Pacheco's policy of economic austerity-- combined with stiff penalties for antigovernment agitation--is meeting with some success. Pacheco unilaterally imposed a wage and price freeze in June and as a result the cost-of-living increase will probably not ex- ceed 70 percent this year, com- pared with a 136-percent in- crease in 1967. The Communist Party has prudently adopted a program of peaceful rather than violent opposition. Rowdy student demonstrations continue to occur sporadically, but their fre- quency and intensity do not ap- proach the levels reached this summer when several youths were killed and many buildings looted. Despite the fact that Pacheco does not have the support of all sectors of his party, and there- fore is virtually a minority President, he is still able to maneuver his legislation through Congress. On 6 November, the senate approved a labor, price, and wage bill that forms a major plank in Pacheco's economic reform program. Its passage, intact,.by the chamber of deputies is still not assured but its approval by the senate was a victory for the adminis- tration. In addition to pro- viding the means for slowing down wage-price spirals, the bill contains provisions aimed at diminishing the number and seriousness of strikes. Pacheco's growing confi- dence in his authority was demonstrated last week when he removed two of the nation's top security officers--the Monte- video police chief and the gen- eral commanding the army in the capital area. Neither removal was challenged, and both were accompanied by a minimum of publicity. If the labor, price, and wage bill is approved by Congress in essentially its present form, Pacheco may risk lifting the limited state of siege under which he has governed since June. With the approach of summer--traditionally a re- laxed time in Uruguay--short- run prospects for continued stability and concomitant prog- ress are good. SECRET WEEKLY SUMMARY 15 Nov 68 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 25X1 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3 Secret Secret Approved For Release 2008/07/02 : CIA-RDP79-00927AO06700070001-3