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CIA-RDP79-00927A006900070001-1
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RIPPUB
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S
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39
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December 20, 2016
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May 2, 2006
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1
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March 14, 1969
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SUMMARY
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Approved For Release 2007/03/06 : CIA-RDP79-00927A006900 70001-1 ecret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY Secret 46 State Dept. review completed 14 March 1969 No. 0361/69 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET C O N T E N T S (Information as of noon EST, 13 March 1969) Far East THE WEEK IN PERSPECTIVE VIETNAM Enemy forces are maintaining a fairly steady pace of harassing rocket and mortar attacks, with occasional heavier ground probes. In Paris, Hanoi has been jus- tifying the new offensive as "self-defense" against intensified US military pressure. The Saigon govern- ment, meanwhile, continues to focus on future polit- ical competition with the Communists. COMMUNIST TROOPS MAINTAIN OFFENSIVE IN LAOS The Communists are moving against other government positions in the northeast following the capture of devel- Khang on 1 March, but a major push oped. MALAYSIA EXPANDS ECONOMIC TIES WITH COMMUNIST COUNTRIES Malaysia is widening its economic relations with Com- munist countries in a search for markets for its in- creasing production of rubber. JAPANESE GOVERNMENT MOVES TO CURB STUDENTS The Sato government is considering pushing emergency legislation to control student disorders. PEKING AND MOSCOW CONTINUE PROPAGANDA OVER BORDER CLASH The propaganda exchange between Peking and Moscow over the border clash on 2 March is continuing, with both sides apparently unwilling to abandon the field to the other. SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Page i WEEKLY SUMMARY 14 Mar 6 9 Page 1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET Europe THE WEEK IN PERSPECTIVE FRENCH LABOR SCENE REMAINS TROUBLED Both the labor unions and the government have ex- pressed willingness to re-open talks that collapsed last week, but the wide gap between their positions raises the prospect of continued unrest. FRANCE'S NUCLEAR STRIKE FORCE BEING MODIFIED France is converting the Mirage IV bombers of its strategic air force to achieve a low-level penetra- tion capability. SUBSTANTIAL PROGRESS UNCERTAIN AT NEW ENDC SESSION When the Eighteen Nation Disarmament Committee meets in Geneva on 18 March, many smaller countries will be watching for any signs that the nuclear powers intend to negotiate further disarmament measures. HUNGARY REINVIGORATES REFORM POLICIES Hungary has drawn up a charter for domestic political reform and has applied public pressure on its bloc partners to modernize and improve certain operations of the Council for Mutual Economic Assistance. YUGOSLAV CONGRESS ADDS TO COMMUNIST DISSENSION Tito set the tone in his opening address to the ninth party congress when he reviewed the history of Soviet interference in Yugoslav affairs and reaffirmed all of Belgrade's unorthodox policies? BULGARIAN-YUGOSLAV DISPUTE OVER MACEDONIA FLARES ANEW Recent Bulgarian assertions that Macedonians in Yugo- slavia are really Bulgarians have touched off a new outburst of this long-standing dispute, further aggra- vating bad relations between Sofia and Belgrade. middle East - Africa THE 167EEK IN PERSPECTIVE PAKISTANI OPPOSITION REACHES PARTIAL AGREEMENT With a new wave of unrest in the background, the gov- ernment-opposition round table conference in Rawal- pindi this week concluded with agreement on adult franchise and a federal parliamentary system. SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Page ii WEEKLY SUMMARY 14 Mar 6 9 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET EQUATORIAL GUINEA'S TROUBLES PERSIST Tensions in Equatorial Guinea have eased somewhat since the attempted coup last week, but further in- cidents are possible. SOVIET NAVY CRUISES ALONG WEST AFRICAN COAST Recent Soviet ship visits to Guinea and Nigeria have highlighted continuing efforts by the USSR to promote its interests abroad through the use of naval forces. OBJECTIVES OF SUEZ CANAL DUELS APPEAR LIMITED The latest outbreak of fighting along the Suez Canal highlights the uneasy nature of the Arab-Israeli cease-fire lines, but the fighting is not expected to expand dramatically. Western Hemisphere SECRET Approved For P4e 120@7 :s A 79-ODB2T#06900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET USSR EXPANDS TRADE TIES WITH LATIN AMERICA The USSR is applying realistic criteria in negotia- tions to expand its economic contacts with Latin America. CHILEAN LEFT ASSESSES IMPACT OF CONGRESSIONAL ELECTIONS The Communists are disappointed by their failure to increase their vote significantly, but they and the Socialists are gratified by the drop in the vote of President Frei's Christian. Democratic Party. CUBA RESTRUCTURES TOP LEVEL OF ARMED FORCES MINISTRY Recent changes underline the ministry's increasing involvement in activities such as education and ideo- logical guidance that are normally considered outside the military area of responsibility. AGITATION INCREASING IN DOMINICAN :REPUBLIC A recent rise in Communist. and student agitation in the Dominican Republic, combined with President Bala- guer's hints that he will run for re-election in 1970, may signal the beginning of an extended period of unrest. SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Page iv WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET Hanoi gives no sign of modifying its official position in order to break the impasse in the Paris talks at least until it assesses the impact of the spring offensive in South Vietnam. North Vietnamese propaganda has reacted in defiant tones to statements by American leaders about a possible US re- sponse to Communist attacks. The Communists claim their offensive is a response to intensified US military pressures. In the fighting, major actions were concentrated in the western high- lands and in northwestern III Corps. Communist forces, however, maintained a fairly steady pace of harassing rocket and mortar attacks, and occasional commando raids and ground probes, throughout the country. Hue was hit by rockets on 10 March for the first time during the offensive. Cabinet changes designed to strengthen government operations in rural areas in order to compete more effectively with the Communists were announced in Saigon this week. Most of the new men are close to Prime Minister Huong or Interior Minister Khiem, but President Thieu selected them primarily for their administrative abilities. Village and hamlet elections were conducted successfully on 9 March, the second of four Sunday election days, despite some light Communist harassing fire. In China, chauvinistic propaganda engendered by the Sino-Soviet border clash on 2 March has concentrated on the "unequal treaties" the Chinese claim imperial Russia forced on China, thus reviving Peking's claim to extensive areas in Siberia. The Soviets, for their part, have focused on the recent incident itself and have tried to fix the blame on the Chinese. In the meantime, preparations for the Chinese Communist Party's ninth congress have apparently continued against the militant backdrop of massive propa- ganda demonstrations condemning the Soviets. There is every indication that the congress will convene soon even though the Chinese leaders have not resolved some of their basic disagreements. The Communists in Laos are moving against other government positions in the northeast following the capture of Na Khang on 1 March, but a major push into areas controlled by the government has not developed. On 12 March, the Communists launched the third attack in as many years against the Luang Prabang Airfield in the northwest, and have also been active in the SECRET 25X1 Approved Fop lepse 2 7JR/$%UgI fiAFA4P79-001927 -0 069Rg0070001-1 Approved For Release 2007/03 6 tih-'RDP79-00927AO06900070001-1 (2 UR g3IANG TRi Sa#avane LAOS CAMBODIA U ANG DUC PH UOC; TUY H {YINtP 94N1# Approved For Release 2007/03ff i P-DP79-00927AO06900070001-1 B4NH D I N H BON ~ PHU r YEN "Ban Me \. KHANH(. Thuot MCA Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET VIETNAM Hanoi's position in Paris during the new military offensive in South Vietnam has been to just- ify it as an act of "self-defense." The Communists maintain that they have had to send their forces back into the field in response to re- cently intensified US military pressure. As the outlines of the new offensive become clearer, it is increasingly apparent that the Communists hope to use the new fighting to nudge the US into bar- gaining over the issue of de-es- calation. The Communists are now openly flouting any understand- ing on military restraint in con- nection with the bombing halt, both in their shellings of the cities and in their use of the Demilitarized Zone for large troop movements. Their propaganda still shrilly insists that the negotiations can make progress only when the US starts talking seriously to the Liberation Front. They probably do not believe that the US will engage in such talks without Sai- gon and. their own language, which justifies the leading role of the Front in such talks, also leaves room for the presence of Saigon-- they argue that talks about the fighting in the south must in- clude those who are doing the fighting. Military Developments in South Vietnam The major fighting this week was concentrated in the western highlands and in north- western III Corps. Elsewhere, Communist forces maintained a fairly steady pace of harassing rocket and mortar attacks with occasional commando raids and ground probes. Several major cities and military installa- tions again were struck, in- cluding Saigon, Da Nang, and Hue. Battalion-sized infantry elements from three main force divisions attacked in the north- ern and western provinces of III Corps, particularly Tay Ninh, triggering stiff, sus- tained battles. This fighting is concentrated along the in- filtration corridors leading to the capital city and could be designed to pave the way for a thrust into the Saigon area. Saigon itself was struck by rocket fire on 6 March for the SECRET Approved For R leas 2007/03/06: CIA-RDP79- 0 2 00 00070001-1 Page WEEKLY SUMMARY ar Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET fourth time since the offensive began. Twenty 122-mm. rockets have hit the capital during these attacks, killing 45 civilians and wounding 82 more. There were also sporadic incidents of terror- ism in the city and a few small skirmishes on its outskirts. Political Developments in South Vietnam Despite the distractions of the current Communist offensive, the Saigon government continues to focus on the problems of fu- ture political competition with the Communists. In II Corps, enemy main force units have maintained pressure for more than a week against a string of Special Forces camps along the international frontier in western. Kont:um and Pleiku. provinces. Other enemy forces have overrun several hamlets in the nearby highlands, often routing the mi.l itia defenders and then holding their ground during allied coun- terattacks. In many cases, civ- ilian casualties and property damage have been heavy. Commu- nist: losses in their highlands offensive have been around 1,500. The Communist threat in IV Corps continues to be centered in Dinh Tuong Province, where en- emy forces have maintained a steady rate of harassment against My Tho, the US base at Dong Tam, and several nearby district and crossroad towns. No major ground activity was reported during the week in I Corps, where the Communists con- tinued sporadic, harassing rocket and mortar attacks. Hue was hit by rocket fire on 10 March, the first time during the offensive. Cabinet changes that were announced this week are designed to strengthen government opera- tions in rural areas. Most of the new men are close to Prime Minister Huong and Interior Min- ister Khiem, but President Thieu has selected them primarily for their administrative abilities. Cao Van Than, for example, was appointed agriculture minister in line with President Thieu's expressed determination to implement a meaningful land re- form program and his complaints that the former minister had ac- complished little in this field. To ease the workload of Prime Minister Huong, who had previously been responsible for Revolutionary Development, Nguyen Van Vong was appointed to a cabi- net post overseeing these activ- ities. Vong will work closely with Interior Minister Khiem, who earlier this month had been named deputy prime minister for pacification. The government's concern about preparing for a peacetime environment was also demonstrated by Minister of State Vu Quoc Thuc's assumption of the additional title of SECxET Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Page 4 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/O UICVIiRDP79-00927A006900070001-1 minister of postwar planning, as well as by the creation of a special subcabinet post to handle veterans affairs. President Thieu's instruc- tions to the cabinet to develop a program of "political mobiliza- tion" to bring some semblance of unity into competing anti-Com- munist political groups also re- flects his intention to be ready for competition with the Commu- nists. The President is now re- portedly ready to place himself at the head of the slow-starting progove:rnment front, the Lien Minh, to help give it some momen- tum. In addition, the government has helped to organize a new labor confederation to reduce the pos- sibility of formerly independent unions becoming susceptible to Communist penetration and con- trol. Other efforts to strengthen Saigon's positron in the country- side include a program aimed at assigning additional policemen and information and propaganda cadres to villages to function as the eyes and ears of the gov- ernment. This goal may prove hard to reach, however, even though President Thieu has given high priority to the struggle against the Communists at the village level, because recruit- ing personnel suitable for train- ing as policemen and propagand- ists for the villages will be ex- tremely difficult in view of South Vietnam's already over- taxed manpower pool. Meanwhile, despite some light Communist military harassment, village and hamlet elections were conducted successfully on the second of four Sunday election days. SECRET 114 Mar 6 9 Approved For Rek a X007/~ ' I~U _00927A006900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET COMMUNIST TROOPS MAINTAIN OFFENSIVE IN LAOS The Communists are moving against other government posi- tions in the northeast following the capture of Na Kh.ang on 1 March, but a major push has not developed. In the area north of Na Khang, North Vietnamese troops have moved back into Houei Hinsa, a guerrilla stronghold captured during the government's summer offensive last year. There are also reports of an increased NORTH Hanoi. VIETNAM enemy threat against Muong Hiem and a number of bases immediately north of the Plaine des Jarres. Government military leaders hope to use these positions to anchor a new defensive line. Efforts to blunt the North Vietnamese thrust are being se- riously hampered by large numbers of tribal refugees who are flock- ing into the bases still under government control. In addition, government personnel and equip- ment losses in the recent fight- ing appear to be high. Farther west, a small enemy force attacked the Luang Prabang Airfield on 12 March, destroying one observation plane, damaging several T-28 fighters, and in- flicting light casualties on the base's defenders. This is the third such attack in as many years. In south Laos, meanwhile, Communist forces continue to apply pressure against govern- ment positions west of the Bolo- vens Plateau. The movement of fresh enemy troops and supplies into the Thateng area suggests that a new round in the three- month-old offensive against that government outpost may be in th offing. SECRET Houei' H inS ?Muong Hiem NeKesng Plainedes Jarres rig ang ? Communist-controlled territory Approved h@~Relpase pq/Q# I I DP79-0Q~2 00f 0070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET MALAYSIA EXPANDS ECONOMIC TIES WITH COMMUNIST COUNTRIES Malaysia is widening its economic relations with Commu- nist countries in a search for markets; for its increasing pro- duction of rubber. Kuala Lumpur recently agreed to a Soviet dele- gation's proposals to expand trade, and is presently negotia- ting with several East European countries. In addition, trade with Communist China continues to grow. The USSR suggested that Malaysia establish private agen- cies to promote the sale of So- viet goods in Malaysia. The So- viets :Look toward eventually set- ting up a network of outlets to handle their machinery and equip- ment. The Soviet delegation also indicated that Moscow is prepared to extend long-term commercial credits to finance these sales. Moscow's trade promotion ef- forts reflect in part its adverse trade balance with Malaysia. The USSR has been the leading buyer of Malaysian rubber since 1965-- about $70 million worth annually-- while Malaysian purchases of So- viet goods have been less than $2 million a year. Moscow used its position as the largest single purchaser of Malaysian rubber to establish a diplomatic presence in November 1967, and the current trade promotional effort should probably be viewed as an attempt to extend Soviet influence further. The USSR also has urged Kuala Lumpur to accept economic aid for several projects proposed under Malaysia's current five-year plan (1966-70). An agreement now un- der negotiation calls for the delivery of $10 million worth of Soviet agricultural machinery with repayment over 15 years at four percent interest. Kuala Lumpur also is considering a So- viet proposal to assist in the construction of a major highway. The USSR offered to supply mili- tary aircraft, but was turned down. Malaysia's economic rela- tions with Eastern Europe center on the Balkan countries. Last October, a Bulgarian delegation discussed joint ventures involv- ing timber and food processing and pharmaceutical manufactur- ing. Sofia's purchases of Malay- sian rubber are to reach $7 mil- lion this year, half again as large as in 1968. In addition, a Rumanian delegation is now in Kuala Lumpur to sign a trade agreement. Malaysia's trade with Com- munist China, its leading Com- munist trading partner, increased again last year. China was the third leading buyer of Malaysian rubber in 1967, when direct con- tracts and purchases through Singapore totaled $20 million. Malaysian imports from China, some of which are purchased in Singapore, consist largely of foodstuffs and inexpensive con- sumer goods. These purchases amounted to $87 million in 1967, SECRET Approved For Reples 7 2007 ,W2& Cq [7M1 AP -Q10?2 q0%V0070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET giving China a trade surplus of about $60 million as Malaysia remained a substantial source of foreign exchange for Peking. The opening of two new Chinese empo- riums at Malacca and Penang, in addition to the present one at Kuala Lumpur, will increase the sale of Chinese goods in Malaysia. JAPANESE GOVERNMENT MOVES TO CURB STUDENTS The Sato government is se- riously considering pushing emer- gency legislation to control stu- dent disorders. If such legis- lation encounters stiff opposi- tion in the Diet, as is expected, Prime Minister Sato may revise his political timetable and call for general elections this spring. Many government leaders ap- parently are now convinced that it is politically imperative to act soon to resolve the crisis in higher education. Recent po- litical soundings by ruling Lib- eral Democratic Party Diet mem- bers indicate that popular sup- port for curbing student excesses J_s strong and widespread, tran- scending even the Ok:inawan rever- sion issue. A recent upsurge of violence at Kyoto University has added to the public concern. The government, moreover, is concerned that de facto coopera- tion between weak university ad- ministrators and Communist stu- dent organizations for joint de- fense against the rampaging ultra- leftists can only enhance the Japan Communist Party's influ- ence at the university level. Sato has probably concluded that if he does not soon respond to the school challenge, intra- party rivals may exploit the crisis to undermine his leader- ship. Sato's timetable up to this point has envisaged national elections late this year, fol- lowing his projected visit to Washington to arrange the de- tails of Okinawan reversion. Sato expected the successful out- come of his visit to enhance the prospects of his Liberal Demo- cratic Party in the elections. There are indications now, how- ever, that Sato may not be ad- verse to early elections pre- cipitated by the school crisis. In addition to exploiting the general disarray of the main op- position Japan Socialist Party, Sato may also estimate that gov- ernment efforts to restore order in the schools in the face of legislative obstructionism by the Socialists and Communists would have wide electoral ap- peal. 25X1 SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Page 8 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET PEKING AND MOSCOW CONTINUE The propaganda exchange be- tween Peking and Moscow over the border clash on 2 March is con- tinuing, with both sides appar- ently unwilling to abandon the field to the other. There has been no indication that either side intends to go beyond the level of polemics, but further incidents along the border can- not be ruled out. Although Moscow was quick to publicize the clash, Soviet leaders may have been undecided over their next step. They ap- parently became convinced, how- ever, of the need to respond to Peking's extensive exploitation of the issue, and on 7 March be- gan a major campaign to emphasize Russian innocence. Moscow has presented considerable detail on its version of the incident, claiming that 31 Soviet border guards were killed and 14 were wounded in a Chinese ambush and that reserves had to be brought up to drive the Chinese off Soviet territory. The Soviets have also fitted the incident into their efforts to discredit the Chinese leadership prior to the conven- ing of both China's ninth party congress and the coming world conference of Communist parties. PROPAGANDA OVER BORDER CLASH The Soviets coordinated the opening of their propaganda of- fensive with large demonstrations in front of the Chinese Embassy in Moscow on 7 and 8 March, ob- viously in retaliation for ear-' lier anti-Soviet demonstrations in Peking. This led to the resump- tion of tightly controlled counter- demonstrations in the Chinese capital on 11 March. In contrast to Moscow's propa- ganda focus on Chinese responsi- bility for this incident, Peking has used it to revive its claim to extensive territories in Si- beria. On 10 March, a lengthy and carefully constructed Chinese Foreign Ministry statement re- hearsed the series of "unequal treaties" imposed by imperial Russia and charged Moscow with having "sabotaged" the Sino-So- viet border discussions held in 1964. Peking is also exploiting the border clash for domestic purposes by staging a series of massive anti-Soviet rallies that are still under way throughout China. This chauvinistic cam- paign is probably intended in part to provide a properly mili- tant backdrop for the ninth party congress, which will probably be convened soon. SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 9 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 10 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/9WQ.6*; ECIA T RDP79-00927A006900070001-1 The propaganda battle over the clash on the Sino-Soviet border rages on, with Moscow supplying most of the gory details but giving no indication that it desires to go beyond polemics. Meanwhile, there is considerable activity and uncertainty concerning two potentially significant negotiating sessions set to begin next week on opposite sides of the continent. In Moscow, at least sixty Communist parties are expected to make final plans for the long-scheduled "world Communist conference" that the Soviets hope to stage in May. Early reports of disagree- ment among the planners suggest that decisions about the agenda and even the date of the world conference will not come easily. In Geneva, the Eighteen Nation Disarmament Committee resumes its negotiations. The agenda is open and the prospects for major initiatives unclear, but interest is high in seeing the superpowers follow the Non-Pro- liferation Treaty with progress on other outstanding disarmament issues. Moscow also still seems to be trying to lay the groundwork for a high-level Communist economic meeting. Top-level economic delegations from five Eastern European countries have been in Moscow within the last two weeks. Numerous rumored dates continue to be bandied about in Eastern Europe concerning an economic summit and an attendant Warsaw Pact summit. None is firm, and important differences still must be resolved before the meeting can take place. Otherwise, attention in Eastern Europe this week focused on the Sino-Soviet border thriller, on the Yugoslav party congress, and on political reforms in Czechoslovakia and Hungary. In France, with workers back on the job after the 24-hour general strike, De Gaulle appears to have at least temporarily averted another economic crisis. permit the transport of goods-claimed by them to be military materials- between West Berlin and the Federal Republic. Pankow probably will con- tinue this type of harassment, perhaps hoping to influence Bonn to negoti- ate. F_ I SECRET Approved Forpleile 2dbYV3W6~'&i-P79-00;i7 O66 070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET' FRENCH LABOR SCENE REMAINS TROUBLED France's labor unions and the government remain locked in a dispute over wages, thus rais- ing the prospect of continued so- cial unrest. Both sides have ex- pressed a willingness to reopen the talks that collapsed last week, but there is a wide gap be- tween what the government is willing to grant and what labor leaders are demanding. The key question is to what extent the rank and file are willing to back the demands of their lead- ers. A general strike, called on 11 March by all three labor federations to reinforce their position, won massive support and succeeded in slowing French economic life to a walk. There were no major disorders during the strike, primarily because both union and student leaders were on hand to keep their own in line. The continued hostil- ity between workers and students was underlined by of:icials of the Communist-led General Con- federation of Labor (CGT), who were particularly active in try- ing to ensure that left-wing stu- dents did not spoil the orderly and disciplined show. Their ef- fort was aided by firm police action against students who tried to disrupt the demonstrations. The CGT, making energetic efforts to refurbish its militant image, dominated the protes,: march in Paris of over 100,000 people. De Gaulle's speech on the same day returned to the themes that he used in combatting the tumult of last May. He castigated labor for allegedly attempting to wreck the nation, the economy, and the franc--and thus further enraged labor leaders. All of the unions responded harshly to the President's charges, partic- ularly the implication that strik- ing workers were part of a "to- talitarian" plot. Last June, De Gaulle raised the specter of a Communist take-over in his suc- cessful effort to convince voters to support the government in par- liamentary elections. Union of- ficials were highly critical of his failure now to offer any solutions other than those that have already drawn either indif- ference or outright hostility from the workers. De Gaulle's harsh words were taken as further evidence that the government would not deviate greatly from its position that wage increases of over four per- cent would be inflationary and would threaten the stability of the franc. Government leaders appear to be betting that the unions' demand for wage increases of about 12 percent reflects more the fear of union leaders that they will be overtaken by the rank and file than deep-rooted worker dissatisfaction. Pressure on the government eased when selling prices for gold, which had risen to new highs as labor unrest mounted, dropped by mid-week. De Gaulle's clear intention to defend the troubled franc and resist any inflationary wage settlement prob- ably helped stabilize the gold market. 25X1 SECRET' Approved Fo l a2se 2AWQ?ffl%V IIRQP79-OQM7b1"6990070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET FRANCE'S NUCLEAR STRIKE FORCE BEING MODIFIED France is modifying the Mirage IV bombers of its stra- tegic air force to achieve a low- ?.evel penetration capability, The Force consists of c 's X13:age IV medium jet bombers, of ..:i.cYz 36 are deployed at all Lies, and t2 Boeing KC-135 -.:a ,ker aircraft. The other 22 bombers are spares, electronic countermeasure carriers, or. The modification of the Mirage IVs will improve their ca- pability to penetrate fighter and missile defenses in the USSR and Eastern Europe. The force, how- ever, still will pose only a lim- ited threat to the Soviet Union. At high altitudes, the bombers have an unrefueled radius that would enable them to penetrate just inside the western Soviet border. At low altitudes, where they would be less vulnerable, the bombers could not reach the Soviet Union without refueling. The modifications, never- theless, will serve to prolong the useful life of the Mirage IVs to about 1975. During the interim, French strategic attack capabilities will be gradually augmented by up to 27 land-based missiles equipped with nuclear warheads and the nuclear-powered ballistic-missile submarines. The French Government does not plan to re-equip the bomber force with improved nuclear delivery aircraft prior to 1975.1 JY~,~.,R Er9_, Approved For6Ri6le~ase 260 /t66St IA! P79-0092iiA0 0dbyl0001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET SUBSTANTIAL PROGRESS UNCERTAIN AT NEW ENDC SESSION Or. 18 March, the Eighteen Nation Disarmament Committee (ENDC) will meet in Geneva. Many smaller countries, now consider- ing whether or not to accede to the Non-Proliferation Treaty (NPT) will be watching the session for any signs that the nuclear powers intend to fulfill their NPT com- mitment to negotiate toward fur- ther disarmament measures. Al- though the climate for disarma- ment may have improved since the Czechoslovak crisis, the stage does not appear set for substan- tial immediate progress on any of the issues expected to receive attention. High on the agenda is a com- prehensive nuclear test ban. The sticking point in the past--ac- ceptable verification procedures-- promises to stymie the negotia- tors again. Several ENDC mem- bers, notably Sweden and Italy, are expected to suggest verifica- tion procedures based on voluntary bilateral exchange of seismographic data or on the creation of a new international organization to monitor and inspect compliance. Having publicized their readiness to make progress on disarmament issues, the Soviets probably consider themselves obliged to put forth some kind of proposal at Geneva. In doing so, Moscow would hope at a mini- mum to provide a public, multi- lateral forum as a balance to the private arms talks it seeks with the US, and to show forward move- ment to those states that have yet to ratify the NPT. There is also considerable, interest among ENDC members in the possibility of a cutoff of production of fissionable materials for weapons purposes, and in an arms control measure applying to the seabed. As yet, however, no concrete proposals with broad support have materialized. Of the two, the seabed proposal ap- pears to have the better chance for agreement between the ENDC's cochairman, the US and the Soviet Union, who tend to dominate the committee. With the growing interest in disarmament among smaller countries, the issue of enlarging the ENDC may well arise at the plenary ses- sion. The Soviets have not yet responded officially to a US "pack- age" proposal last month to admit Japan and at the same time preserve a balance of East, West, and non- aligned members by also adding Mongolia, West Germany, Hungary, Pakistan, Yugoslavia, Argentina, and Tunisia. Because Moscow can be expected to oppose membership for Bonn, however, the Geneva con- ference seems certain to open with this question still no nearer solu- tion. SECRET Approved Foi'#$eleMie 2NOffJ/b6SU I)(4NP7~-`id?t'A686900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET HUNGARY REINVIGORATES REFORM POLICIES Hungary has drawn up a charter for domestic political reform and, to help assure the success of its economic reform, has applied public pressure on its bloc partners to modernize and improve certain oper- ations of the Council for Mutual Economic Assistance (CEMA). After an unusual joint meeting on 5-6 March, top-level party and government leaders issued a communi- que calling for concentrated efforts toward long-awaited political re- forms, which have been in limbo since the Soviet intervention in Czechoslovakia. The carefully worded statement on "socialist de- mocracy" called for expanded rule of law, constitutional revision, further election reforms, regional autonomy, and an increased role for mass and state organizations. Some of these are the logical extensions of the economic reform inaugurated in 1968. It is still too early, however, to judge how great an ef- fect any political changes will have on the largely apolitical Hungari- ans. The communique makes clear the party's resolve to maintain control. Although party organizations will have to cede some authority to youth groups, local government, and in- dustrial enterprises, these groups will not be granted independence. To avoid repetition of Czechoslovak developments last year, the program makes no changes in censorship, po- lice controls, or the single-party system. Judging by past reform ac- tivities, the Hungarians will move carefully but resolutely to enact the new program. The party has taken several steps to emphasize its primacy and its resolve to see the political reform through. The ailing head of its agitprop committee, which will be primarily responsible for pushing the new reforms, has been replaced by Gyorgy Aczel, a hard- nosed Kadar man who won his politi- cal spurs in the field of cultural affairs. The day after the commun- ique was issued, the party ostenta- tiously demonstrated its commitment to reform and its rejection of Stalinism by honoring Laszlo Rajk, a chief victim of the Stalinist terror and a symbol of liberaliza- tion in 1956. Kadar probably discussed these moves with the Soviets during his visit to Moscow in early February, but Soviet reaction to the communi- que has been noncommittal. Moscow barely mentioned it in domestic re- porting, and the more detailed TASS international account contained dis- tortions and deletions. Although Budapest may have Moscow's general approval, this type of slanted press coverage--not uncommon for the Soviet press--will probably cre- ate uneasiness. The communique also called for an "all-round view" of CEMA economic relations, backed a scheme for eco- nomic integration, hinted at the need for standardization of prices, and pushed for currency converti- bility. Hungarian planners fear that, with Hungary's great depend- ence on foreign trade, economic re- form cannot succeed without some ac- commodation by its bloc partners. The Hungarians therefore want to press their views publicly before the issues are settled. F__ I SECRET Approved Foj gelg~se 2~n3/~gf~UE14AF QP79-01042Ma00669~00070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET YUGOSLAV CONGRESS ADDS TO COMMUNIST DISSENSION Proceedings at the Yugoslav party congress, which opened on 11 March, reflect the growing attraction of Yugoslavia's in- dependent brand of Communism and underscore the basic nature of the rift in the international movement. Tito set the tone in his opening address to the con- gress; when he reviewed the his- tory of Soviet interference in Yugoslav affairs and reaffirmed all of Belgrade's unorthodox pol- icies. Even though the Soviet Un- ion and all its Warsaw Pact al- lies except Rumania are boycot- YUGOSLAV-SOVIET TENSIONS DURING PREVIOUS PARTY CONGRESSES FIFTH CONGRESS July 1948: Three weeks after Yug- oslavia had been expelled from the Cominform SIXTH CONGRESS November 1952: At the height of Stalin's arti-Yugoslav campaign April 1953: Under the impact of a renewed freak between Moscow and Belgrade EIGHTH CONGRESS December 1964: In the midst of tense uncertainty that followed Khru- shchev's ouster two months earlier NINTH CONGRESS March 1969: In a new era of distrust following the invasion of Czechoslo- vak is SECRET ting the congress, a record num- ber of foreign delegations are present. Except for the eighth congress in December 1964, the Soviet and Eastern European par- ties have not officially attended any Yugoslav congress since World War II. This time, however, in addition to Rumania, the more important Western Communist and Socialist parties are taking part despite pressure on the Communist parties to do nothing but send messages. Prague's decision not to attend report- edly has met with popular dis- favor. Tito's speech treated the absence of the Warsaw Pact parties more in sorrow than in anger. Soviet pressure also failed to persuade the Yugoslavs to soften their criticism of the invasion of Czechoslovakia, or to lay off other issues disa- greeable to Moscow. Tito's re- fusal to subjugate Yugoslav in- terests to those of the USSR has been at the core of the Belgrade- Moscow dispute for over twenty years. The program adopted by the congress is certain to ag- gravate this feud because it will further challenge Moscow's claim to be the sole authorized interpreter of Marxism-Leninism. 25X1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 16 WEEKLY SUMMARY 14 Mar 69 Approved For Release 20 (f7 / r lA-RDP79-00927AO06900070001-1 BULGARIAN-YUGOSLAV DISPUTE OVER MACEDONIA FLARES ANEW Recent Bulgarian assertions that Macedonians in Yugoslavia are really Bulgarians have touched off a new outburst in this long- standing dispute, further ag- gravating bad relations between Sofia and Belgrade. Published in an inflammatory pamphlet--ap- parently circulated clandestinely in Yugoslavia over the past few months--the claims provoked ac- rimonious rebuttals from Belgrade and finally, on 12 February, an official protest. The Yugoslavs blame the Bulgarians for the steady dete- rioration of relations since late 1967 when the Bulgarians vocifer- ously celebrated the 90th anniver- sary of the San Stefano Treaty. This short-lived treaty created a greater Bulgarian state that included present-day Yugoslav Macedonia, and is the basis for Bulgarian irredentist claims to- day. More disturbing for the Yugoslavs, however, are the charges in the pamphlet that the main problem is not Macedonia but the "question of cooperation in the building of socialism." Belgrade resents this as an at- tempt to apply the recently ex- pounded theory of "limited sov- ereignty" of socialist countries. Since publishing the pamphlet, Sofia has maintained a low-key ap- proach. The press has refrained from answering Yugoslav polemics directly, and officially Sofia still proclaims its interest in neighborly relations with all Balkan states. The Bulgarians finally answered the Yugoslav protest note on 4 March, but the text was not made public. The Bulgarian regime is nevertheless subtly keeping the pressure on Belgrade--possibly at the instigation of the Soviets, as the Yugoslavs charge. More likely, however, the Bulgarian campaign is also aimed at sup- pressing nationalist sentiments among its own Macedonian minor- ity. Sofia is also probably try- ing to distract public attention from other internal problems, such as economic dissatisfaction and disillusionment over Bulgaria's participation in the invasion of Czechoslovakia. The Bulgarians, aware that the hypersensitive Yugoslavs can easily be prodded into overreact- ing, will probably continue to press their academic claims to Macedonia and ignore Belgrade's outraged charges of "territorial aspirations." MACEDONIA SECRET Approved Fo1aRelgase 7 B= 1?Ul# MP79-00 27*M6J60070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET SECRET Approved Fo(3 lelae 2QW /c65tQj6,WP79-09 2 0069900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET Tension in the Middle East has been highest along the Suez Canal, with exchanges of artillery fire over the weekend. Incidents have also occurred on the Jordanian-Israeli border, but the Lebanese-Israeli border remains rela- tively quiet. Moscow continues to supply military equipment to Southern Yemen. A Soviet freighter unloaded two helicopters, artillery, small arms, and ammunition. The I J, has already delivered at least eight MIG-17s, trucks, and small arms. In Nigeria, the Soviet naval visit to Lagos from 5 to 11 March, the first such visit of its kind, ended on a sour note when Soviet officials offended the Nigerians by their clumsy tactics in getting the release of a Soviet seaman who jumped ship. Nigeria returned the deserter, but the incident probably antagonized federal leaders, some of whom opposed the visit in the first place. Meanwhile, the civil. war remains stalemated. Guinea is in ferment over reports of a plot against President Toure's radical regime. Several persons-including army officers-reportedly will be tried before a revolutionary tribunal in connection with the plot, and committees are being set up throughout the country for the "defense of the revolution." These actions could presage a purge of the army, a move that would serve to divert public attention from the harsh realities of Guinean life. In India, the Congress Party appears to be stumbling as it tries to adjust to its disappointing showing in the recent mid-term elections in four north- ern states. Open squabbling among senior party leaders is occurring again, and former food minister Subramanjam has resigned from the Congress working committee in protest against party opportunism in aligning with a 25X1 corrupt group of former congressmen in an attempt to establish a Congress- led coalition government in Bihar State. SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Page 19 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET PAKISTANI OPPOSITION REACHES PARTIAL AGREEMENT The government--opposition round -table conference concluded in Rawalpindi this week with agreement on adult franchise and a federal parliamentary system. EL new wave of unrest provided the backdrop for the talks. The agreement focuses on only two of many basic issues to 6e settled. Although opposition leaders held a series of meet- ings in preparation for the talks, the two proposals seemed to be ,.he only areas where they could .agree. They remained badly di- vided on other important issues such as the future relationship between East and West Pakistan ,and the basis of representation in parliament--population or pro- vincial parity. In announcing the conference agreement, Ayub indicated that he would now ask the National Assembly to put into effect the the agreed-upon con- stitutional changes and leave the unresolved questions to the new representatives to be elected. It seems unlikely that the agreement will end the unrest in the country, because it falls far abort of the agitators' demands. The period between now and the elections--which have not been set--will be one of intense po- litical activity and jockeying for position among the disparate opposition groups. Tensions be- tween conservative and leftist forces have already produced se- rious violence. Various developments, un- leashed by Ayub's decision to step down, have further compli- cated the political picture in recent weeks. Latent agitation for the break-up of West Pakistan into its former autonomous prov- inces has surfaced in the Karachi district as well as the northwest frontier area. Daily violence con- tinues in East Pakistan, where the provincial government has abdicated authority to the students. Labor agitation is growing in the face of the inability of government and in- dustry to resist union pressures. A serious port strike in Karachi and a number of other labor disputes have now been settled, but the clear un- ion victories have emboldened other groups to press for redress of griev- ances. The protracted unrest has re- sulted in serious economic disloca- tions throughout the country. Tele- communications, postal services, and commercial activity have been widely disrupted. Critical food shortages are reportedly develop- ing in East Pakistan and could play into the hands of political extremists who continue to dispar- age compromise and advocate vio- lence. As always, the army remains in the background--the one stable element that might be able to re- store order. Rumors of impending martial law continue to circulate. It seems likely, however, that the army would only intervene if it felt that the popular outcry against in- ternal chaos and anarchy demanded such action. 25X1 SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 20 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET EQUATORIAL GUINEA'S TROUBLES PERSIST Tensions in Equatorial Guinea have eased somewhat since the at- tempted coup last week against the Macias government, but fur- ther incidents are possible. Al- though prospects for resolving differences with Spain appear to have improved slightly, the ef- fects on the economy of the con- tinuing exodus of Spanish resi- dents are already evident. The unsuccessful coup at- tempt on 5 March was led by For- eign Minister Atanasio Ndongo and UN representative Saturnino Ibongo. Both men were moderates and former political opponents who had joined President Macias' coalition government at indepen- dence last October. Although de- tails of the coup attempt and the fate of the participants are un- clear, their advocacy of negotia- tions with Spain may have led the two officials to attempt to wrest power from the more militant and anti-Spanish President. Although new anti-Spanish incidents and factional infight- ing that erupted in the wake of the coup report have apparently subsided, emergency controls were still in effect as of 13 March. Spain's special envoys and the personal representative sent by UN Secretary General Thant re- portedly have made some progress in calming the emotional and er- ratic President, and both Macias and Madrid now appear prepared to conclude quickly basic bilateral cooperation agreements. Spain, whose decolonization of Equatorial Guinea was motivated largely by the desire to secure African sup- port on the Gibraltar issue, has a continuing stake in preserving Guinean stability, and therefore may offer further aid. The Spanish, however, have announced that they will withdraw their forces when evacuation of all Spanish nationals wishing to. leave is completed, and have re- buffed Guinean proposals for a new defense agreement providing for the stationing in Guinea of Spanish troops "without a coloni- alist mentality." Spanish mili- tary withdrawal, if accomplished, will leave Macias with an 800- to 1,000-man security force whose loyalty to him is uncertain. In any event, prospects for stability remain poor. Macias' recent constructive approach to his problems could dissolve at any time. Meanwhile, the mass Spanish exodus will jeopardize the normal functioning of the government and many public institutions as well as virtually all commercial and industrial facilities. The im- portant lumber industry is already on the verge of collapse and a significant decline in the key cocoa crop is anticipated. SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 21 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET SOVIET NAVY CRUISES ALONG WEST AFRICAN COAST Recent Soviet ship visits to Guinea and Nigeria have high- lighted continuing efforts by the USSR to promote its interests abroad through the use of naval forces. Two guided-missile destroy- ers, a diesel submarine, and an oiler have been traveling slowly along the west coast of Africa since leaving the Mediterranean Soviet Naval Ships in West African Waters Departed Mediterranean M A U 4 February 2 Guided Missile }NOtr.,kchott Destroyers 1 Submarine 1 Oiler Dakar} }GAM~tIf' J - s .*NI!:~til PORT. GUINEA In Port "jr- 15-20 February SIERRAAEONE I } urrtrvuLIA i tlak:3rlougou} on 4 February. The ships may return home soon following calls at Conakry in mid-February and at Lagos early this month. Although this unprecedented visit by Soviet ships to West African waters probably was planned as a good will gesture it also was related to Ghana's prolonged detention of two So- viet trawlers seized last October GHANA ( t~N-o *akor adi Two Soviet Trawlers in Ghanaian Custody Since October Lome ,// Lao In Port 5-11 March N I G E R I A Departed Lagos 10.11 March SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 22 WEEKLY SUMMARY 14 Mar 69 } EQUATORIAL GUINEA / Approved For Release 2007/0gRrC.fRDP79-00927A006900070001-1 for violating Ghanaian terri- torial waters. It coincided with intensive Soviet pressures on Ghana, including a stiff note from Soviet President Podgorny, to secure release of the trawlers. The.presence of the warships off Takoradi during the closing stages of the trial of the trawler cap- tains probably contributed to the decision of the Ghanaian leaders to release the trawlers on 4 March. Federal leader Gowon, who only reluctantly agreed to the visit, reportedly was angered by the Soviets' aggressive methods in obtaining the return of a dis- gruntled seaman who had deserted. That incident, which delayed for a day the departure from Lagos of two of the ships, probably detracted from the public rela- tions impact of the visit as well. The cruise appears to have yielded mixed results for the Soviets. Guinean President Toure, whose regime has been under con- siderable strain since the over- throw last fall of fellow social- ist Modibo Keita in neighboring Mali, almost certainly welcomed this gesture of Moscow's support for his government. The Nigerian stop, on the other hand, may have been a net loss for the Soviets. The current cruise is part of expanding maritime operations by the Soviet Navy. Soviet war- ships began operating in the Mediterranean on a regular basis four years ago, and there has been a Soviet naval presence in the Indian Ocean for over a year. Cruises to the South Atlantic may become more frequent, but the establishment of a permanent naval force there is unlikely. F_ I 25X1 OBJECTIVES OF SUEZ CANAL DUELS APPEAR LIMITED The serious outbreaks of fighting along the Suez Canal this week highlight the uneasy nature of the Arab-Israeli cease- fire lines, but the fighting is not expected to expand dramati- cally in scope. The extended exchanges of artillery and small-arms fire on 8 and 9 March resulted in nu- merous casualties on both sides and aerial engagements accounted for one Egyptian fighter. The Egyptian oil refinery complex at the southern end of the canal was hit for the third time since the war in June 1967. The extent of 25X1 Egypt's rationale for initi- ating the weekend shooting is not yet entirely clear. Cairo may have believed that it must demon- strate to the other Arab states, as well as to the more militant elements at home, that Egypt is doing its share in the confronta- tion with Israel. Some of the earlier sniping may have been initiated by restless elements SECRET Approved FoF le s 2 ##/b6'sP P79-00b7 969?0070001-1 Approved For Release 2007~V~,-RDP79-00927A006900070001-1 of thy: various military contin- gents stationed alone the water- way. The renewed shelling on 11 March probably stemmed from the _Lncreased tensions created in the area by the earlier ex- changes of fire and the death of Egyp-cian Chief of Staff Abdul Munim Riad. Nasir will probably have some difficulty finding a suit- able replacement for Riad, who was considered a highly competent soldier and a political moderate, even though he may have differed with Nasir on some policies. SECRET Approved For e e 20q OOS sChOM 179-0092M0 r "0O0001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET Rafael Caldera was inaugurated president of Venezuela on 11 March, with a great deal of fanfare but none of the attendant violence promised by leftist extremists. His inauguration marks the first time in Venezuelan history that power has passed peacefully from one political party to another, and only the second time that one democratically elected president has followed another into office. In his inauguration address, Caldera pledged to abandon the Betancourt doctrine of nonrecognition of military governments and to establish relations with "all countries"-except Cuba-irrespective of ideology. Regarding neigh- boring Guyana, Caldera expressed a desire to cooperate with the Burnham government, but reiterated Venezuela's determination to press its claim to the Essequibo region. Clashes between Chilean police and illegal squatters outside the south- ern city of Puerto Montt early this week resulted in the death of eight persons and numerous injuries. The incident has developed into a major political issue, with the conservatives supporting the government and the Communists and Socialists condemning government "repression." President Frei's Christian Democratic Party is badly divided over the issue, and some leftists within the party may use it as an excuse to bring long-simmering differences to a head. Ecuador signed its first trade agreement with the USSR on 10 March. The Soviets reportedly tried to make the agreement contingent on permis- sion to set up a trade mission with diplomatic status as well as a commitment by Ecuador to establish diplomatic relations with the USSR within six months, but it is not yet clear whether these conditions were agreed to by Ecuador. There has been an upsurge of violence against US and other foreigners in Jamaica in the past few weeks. Two Americans have been shot by unknown assailants and the wife of an important British official has been severely beaten. The life of the US ambassador has also been threatened. It is not clear whether white foreigners are deliberate targets, as at least two recent attacks involved prominent Jamaicans. "Black power" and racist groups have become increasingly active in the past year, however, and they 25X1 have probably contributed to the rise in antiwhite sentiment on the is- land. SECRET Approved For Regleean 200 :SII1ViMAptc79-OO9 J77AOO6900 0 70001-1 4 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Next 1 Page(s) In Document Exempt Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET USSR EXPANDS TRADE TIES WITH LATIN AMERICA The USSR is applying realis- tic criteria in negotiations to expand its economic contacts with Latin America. In negotiating recent agreements with Peru, Ecua- dor, and Uruguay, Moscow acknowl- edged the difficulties of expand- ing mutual trade while indicating a willingness to explore possibil- ities for eventual growth. Although seeking to dilute US influence in Latin America, Moscow increasingly measures the short-term political impact of its foreign economic dealings in this area against the long-term costs and prospects. This was clearly evident in the USSR's re- cent negotiations with Peru and Ecuador. Soviet proposals to Peru covered only the reasonable pros- pect of limited trade. Lima's suspicions of Soviet motives were evident during the talks. The Peruvians reacted un- favorably to Soviet insistence that imports of its machinery be accompanied by installation and maintenance technicians. This So- viet action was an effort to rec- tify the bad reputation much of its manufactures have in Latin America because of improper main- tenance by poorly trained native personnel. In Ecuador, a Soviet mission was responsive to Quito's desire to formalize trade relations, but the Soviet negotiators quickly quashed press reports that they would absorb Ecuador's large ba- nana surplus. As in the Soviet- Peruvian agreement, the USSR's pact with Ecuador provides for SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 28 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET USSR AND EASTERN EUROPEAN TRADE WITH LATIN AMERICA MILLIONS US DOLLARS EXPORTS IMPORTS USSR - LATIN AMERICA 198 92 1964 1965 1966 1967 159 EASTERN EUROPE - LATIN AMERICA 242 264 277 280 1964 1965 1966 1967 most-favored-nation treatment ex- cept for trade privileges extended by Quito to neighboring countries or special treatment received by any regional economic organiza- tion that Ecuador might join. The agreement also calls for pay- ment in convertible currencies, but specifies no quantities or values of commodities. Following several years ne- gotiations, the USSR has just con- cluded a, modest credit arrangement with Uruguay. As trade has been limited primarily to Soviet pur- chases, Moscow presumably hopes that its $20 million credit will help widen the Uruguayan market for Soviet goods. Latin American countries probably will continue to turn to the USSR in an effort to expand their trade with Communist coun- tries. The USSR can absorb sig- nificant quantities of the con- tinent's leading export items, and the Soviet Union is especially at- tractive when political factors motivate a shift to new markets. The past trade experience of La- tin America with Communist coun- tries, however, indicates that the East European states are a more probable market for sus- tained sales. Eastern Europe normally carries on about three times as much trade with Latin America as the USSR, and is out- ranked by Moscow only during pe- riods of emergency Soviet grain purchases. r- I 25X1 SECRET Approved Fcpage se Wp~ W x1 -PP79-009217,40r0a6902S70001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET' CHILEAN LEFT ASSESSES IMPACT OF CONGRESSIONAL ELECTIONS Chilean political parties are beginning to analyze in some depth the results of the congressional elections held on 2 March. The Communists are somewhat less pleased with the results than are the Socialists, but both parties are gratified by the drop in the vote of President Frei's Christian Democratic Party. The Communist Party ran a hard, well-organized campaign, but is very disappointed that its vote did not increase as much as it had hoped. Its s:iare of the vote did increase, however, from 12 percent in the congressional elections in 1965 to nearly 16 percent this year. The party gained six seats in the Chamber of Deputies for a total of 24 out of 150, and one in the Senate for 6 out of 50. The Communists are particularly perturbed by the strength shown by the conserva- tive: National Party in the urban districts of Santiago. They be- lieve that much of this strength is clue to support for former pres- ident Jorge Alessandri, who may run for president in 1970. The Communists fear that Alessandri's candidacy might cut into tradi- tional leftist support in the presidential elections. The Socialist Party is pleased with the fact that it was able to overcome the defection of a faction that split off and ran as the Popular Socialist Un- ion (USP). The Socialists' vote total was slightly lower than in 1965 and 1967, but the USP did not: elect a deputy or a senator and will probably disappear from the political scene. Pro-Castro So- cialist Salvador Allende ran very strongly, earning the highest vote total in his senatorial district. This performance has strengthened the likelihood that he will re- ceive Communist support for the presidential nomination. The Communists are emphasiz- ing unity with the Socialists, but they also are trying to maintain the option of including part of the Christian Democratic or the Radical Party in a leftist front. The Radical Party is presently led by a group that wants to cooperate with the Communists and Socialists and had hoped for their support for a Radical presidential candi- date. The Radicals dropped from second place to fourth, however, and probably will not be able to pull Communist support away from Allende. The Radical Party may even execute one of its many flip- flops and move to support Ales- sandri, who has always been popular with many moderate Radicals. Several political parties will hold national conventions during the next few months. As the relative influence of the fac- tions within the parties becomes 25X1 evident, a clearer picture of the prospects for the presidential campaign may emerge. SECRET Approved For Release 2007/03/0 ? F i [ P~79-00927A09~Q0~~0001-1 Page 30 WEEKL S a Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 SECRET CUBA RESTRUCTURES TOP LEVEL OF ARMED FORCES MINISTRY Recent changes at the vice ministerial level of Cuba's Armed Forces Ministry (MINFAR) reflect the expanding role of the mili- tary establishment in all aspects of Cuban life. The reorganization underlines MINFAR's increasing involvement in activities such as education and ideological guidance that are normally considered out- side the military area of respon- sibility. The number of vice ministers has been raised from four to six with the creation of slots for political. work and for military technological training. In ad- dition, the chief of the General Staff now clearly ranks a step above his fellow vice ministers and is third behind Majors Raul Castro and Pedro Miret in the chain of command in the ministry. The former chief of MINFAR's political. directorate, Antonio "Tony" Perez Herrera, has been upgraded to vice minister for political work and promoted to the rank of major. His star has been rising since early 1968 when the ministry began to assume the role of guardian of revolutionary ideology. Under his guidance, it has advanced deeply into a field usually considered the private domain of the Cuban Communist Party. The appointment of former chief of the General Staff Major Belarmino Castilla Mas as the new vice minister for military tech- nological training appears at first glance to be a demotion but a closer inspection reveals the post to be one of major importance. The incumbent will presumably have responsibility for converting the armed forces from the present system of obligatory military service to a new system based on Cuba's senior high schools and technological institutes. All such institutions are gradually being transformed into "military training centers" where the students, both male and female, will receive extensive training in the handling of weapons and other military subjects in addi- tion to their academic studies. When a new law establishing com- pulsory education up to the univer- sity level is enacted--probably late this year or in early 1970-- all Cuban youth will be subject to military training. The draft system currently in effect will then be discarded and students in the military training centers will form the rank and file of the armed forces under the command of a per- manent cadre of officers and non- coms. Although the plan sounds simple, the new vice minister will need all his skill and experience to put it smoothly into operation. Although the vice ministers for instruction and for services have not yet been announced, it is safe to assume that they have been selected from Fidel Castro's coterie of old "comrades-in-arms." The veterans of the Sierra Maestra campaign of 1957-58 continue to hold all key positions in MINFAR as well as in other branches of the government. SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927A006900070001-1 Page 31 WEEKLY SUMMARY 14 Mar 69 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 SECRET AGITATION INCREASING IN DOMINICAN REPUBLIC A recent rise in. Communist 25X1 and student agitation. in the Do- 25X1 minican Republic, combined with President Balaguer's hints that he will run for re-election in 1970, may signal the beginning of an extended period. of unrest. Student demands for increased) funds; for the government-controlled budget of the Autonomous University of Santo Domingo have prompted five weeks; of demonstrations both in the capital and the interior; one student has been killed. In an attempt to enlist wider support for the recurrent budget struggle, leaders of some Communist parties and other leftist groups report- edly met with labor and university officials last week. In addition, some factions of the badly splin- tered Communist movement, prob- ably planning to exploit the uni- versity issue, reportedly hope to establish an antigovernment front. The Balaguer administration, how- ever, has shown no inclination to compromise, and open Communist or labor support would increase the chances of disorder. Elements of the extreme left appear increasingly willing to en-? gage in violent agitation, in- cluding assassinations , and to risk military reprisals in order to create an unstable: atmosphere. The Dominican Popular Movement, one of the more important Commu- nist factions, publicly claimed credit for the murder of a former Trujillo henchman last December and barely missed killing a police The President's announcement on 27 February that he might stand. for re-election if "the people will it" has heightened tensions. Re-election is not prohibited by the constitution, but "continuismo" (extended one-man rule) is a heated public issue, stirring memories of Trujillo's hated 31-year dictator- ship. If the President does run, the major opposition Dominican Revolutionary Party, which has dis- played an increasingly radical bent, may well boycott the elections, as, it did the municipal voting last May. The leftist Revolutionary Social Christian Party, the only party of any size to compete against the government in 1968, has also condemned the principle of re-elec- tion and has hinted it might sup- port a coup. Balaguer, still personally popular, would nevertheless prob- ably win an election under present: conditions. His renomination, how- ever, not only would raise the pos- sibility that few, if any, legiti-' mate political parties would con- test the 1970 elections, but could prompt elements of the opposition to make common cause in an effort to topple the government. In turn, the prospect of militant action by the left could induce Balaguer to rely increasingly upon the military to bolster his position. SECRET' Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Page 32 WEEKLY SUMMARY 14 Mar 69 25X1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1 Secret Secret Approved For Release 2007/03/06 : CIA-RDP79-00927AO06900070001-1