WEEKLY SUMMARY

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Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 DIRECTORATE OF INTELLIGENCE Secret WEEKLY SUMMARY NAVY review completed. State Dept. review completed Not referred to CBO. Waiver applies. Secret 4T 15 May 1970 No. 0370/70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 25X1 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 (In~,Qrmation as of noon EDT, 14 May 1970) SECRET CAMBODIAN GOVERNMENT SUFFERS MORE MILITARY SETBACKS The Communists are expafi ing their operations along the eastern border. VIETNAM Hanoi has decided on a toughzxesponse to the allied operations in Cambodia and has',recalled its top negotiator at the Paris talks. Continued inability to meet political and economic prpblems may lead to cabinet changes in Saigon. US ancl-,,South Vietnamese forces in Cambodia have uncovered 1`'',rge quantities of supplies but have engaged few Communist troops. COMMUNIST OFFENSIVE STILL FOCUSING ON SOUTf LAOS The Communists continue their efforts toclear gov- ernment forces from the southeastern edge=-pf the Bolovens Plateau. They appear to be trying-further to undermine already low government morale bye claim- ing that certain provincial capitals will soorLbe attacked. } Guerrilla operations are on the rise in the north and in mid-south regions. The security situation is especially bad along the northern border with Laos. THAI COMMUNIST INSURGENTS INCREASE ACTIVITY COMMUNIST CHINA TAKES OVER TANZANIAN MILITARY PROGRAM With the departure of Soviet and Canadian advisers, Peking has started work on long-term projects such as a naval base and an air defense "system." SECRET Page i WEEKLY SUMMARY 15 May 70 Page 1 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET SUHARTWS INDONESIA Indonesian President Suharto, who visits Washington on 26-,27 May, has cautiously and patiently set out to restructure the economic and political institu- tions that his predecessor, Sukarno, left in ruins. Despite the steady progress made so far, Indonesia still face's enormous problems. Suharto and the army, however, intend to remain in power until economic Europe SOVIET - WEST GERMAN TALKS RESUME Soviet Foreign Minister Gromyko and West German envoy Bahr resumed their talks in Moscow this week amid signs that Soviet insistence,_on unequivocal West German recognition of postwar'borders and the divi- sion of Germany will slow progress toward agreement. ILO FACES SUCCESSION PROBLEM The four-man contest to succeed David Morse as head of the International Labor Organizat1on could have considerable impact on both the direction and effi- ciency of its operations. FRENCH GOVERNMENT MOVES TO DEAL WITH SCATTERED VIOLENCE In the wake of recent violence on the partV..f stu- dents and small shopkeepers, the National Ask,embly has passed harsh legislation that introduces Vie doctrine of collective responsibility. YUGOSLAV PARTY LEADERSHIP TIGHTENS DISCIPLINE 15 The Yugoslav party presidium expressed concern folk some of its programs when it met on 22 April, and '\, ended by calling for tighter discipline among party'-; members. SOVIET SHIPS VISITING FOREIGN PORTS Soviet naval ships have been making a number of for- eign port calls since exercise "Ocean" was concluded earlier this month. SECRET Page ii WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET USSR BECOMES AN EFFLUENT SOCIETY The recent drafting of water--pollution legislat and a willingness to participate in internatio l meetings on the environment :illustrate Mosc 's growing concern, but solutions will not comeasy. GOMULKA ASKS FOUR-POWER ENDORSEMENT OF BORDER The Poles want the four powers to endors, any border accord they may reach with Bonn. DETENTE AND DEFENSE: THE ISSUES OF THE The meeting of the foreign minister ance members in Rome on 26-27 May in which NATO's detente image ca out jeopardizing the security o ministerial may mark some adva valid answers to the importan Alliance in a decade that ma, change in Europe's security, TO MINISTERIAL of the 15 Alli- 1 consider ways enhanced with- the Alliance. The e in the search for questions facing the see considerable ISRAEL MAKES STRONG MI TARY THRUST INTO LEBANON Israel has descri d its military thrust into south- ern Lebanon earl this week as a combing and screen- ing operation d' ected exclusively against the feda- yeen. Casualt' s on both sides were said to be light. FEDAYEEN GROUPS ORM NEW COORDINATING BODY If the new established central committee of the Palestine iberation Organization proves to be more than mer y a paper entity, it could affect the positio of Yasir Arafat and other fedayeen leaders by ushe ing in a period of collective leadership. RELIGIOUS REACTIONARIES PROTEST IN AFGHANISTAN Cons rvative religious leaders have had some success in pposing the government's modest modernization p gram, and they may be encouraged to take to the reets again to demonstrate their political power. SECRET Page i i i WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET IRAN. KING NEW LOOK AT KURDISH SITUATION T \recent agreement between the Baathist regime of Ir e and the rebelling Kurds has forced Tehran to reas ss its relations with the tribesmen. Western Hemisphere CUBA MAY ELIMINA RIVATE FARMS The Castro reg appears to be losing patience with the owners of s l farms and may take action against DOMINICAN PRESIDENT HEA FOR RE-ELECTION VICTORY President Balaguer i xpected to win re-election on 16 May by a comfortabl `,margin . RADICALS REMAIN IN BOLIVIAN INET Despite military pressure remove the radicals, President Ovando made only 'nor personnel changes in reorganizing the cabinet. CARIBBEAN GOVERNMENTS TAKE ANOTHER OK AT BLACK POWER 29 A majority of the Caribbean gove ments are reasses- sing their positions toward Black ower following SECRET Page iv WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET C tmmunist military forces and insurgents are now on the offensive in areas the~ ughout Indochina. The Cambodian Government has been giving ground in''~he face of expanding Communist drives not only in many areas of the country .fast of the Mekong River, but also in some areas in the west and north. There\s no evidence that allied operations along the South Viet- namese - Cambodian border have seriously impeded greater Communist activity in the e nbodian interior. The Djakarta conference on Cambodia (16-17 May), whd e participants generally are pro-Western, will probably offer little more thaw, moral encouragement to the Phnom Penh government. A number of indictors suggest that North Vietnam intends a tough response to US policy inntndochina. Xuan Thuy, Hanoi's top negotiator in Paris, has left for home, al. Viet Cong delegate Madame Binh may leave soon. Further, North Vietnatpese party first secretary Le Duan's unusually warm reception in Peking, after his cool send-off from Moscow, strongly implies that Hanoi has reached policy decisions that are in keeping with Peking's hard-line approach. In South Vietnam the Communists have increased their attacks in the northern provinces and have shelled Stdgon and several other government centers farther south. These Communist, raids come at a time when the Saigon government appears under increasingg,, strain in carrying out its day-to- day duties, and when a political crisis is buif ing. Prime Minister Khiem may be on the way out after less than a year in office. The Communists in Laos have been concentiting their offensive efforts on clearing government forces from the southeastern edge of the Bolovens Plateau. The recent upsurge of Communist activity',kin South Laos has begun to rattle government leaders, and the Communists e playing on the pes- simism within government ranks by circulating rumors t4 at certain provincial capitals in the south will soon be attacked. Communist guerrilla operations are also on the rise in -the northern and mid-South regions of Thailand. The security situation has deteriorated especially along the northern border with Laos. The Thai Gi ernment has had some success in joint operations with Malaysia against Ma ysian Com- munists based in southern Thailand, however. Several insurgent camps have been uprooted. _ The anniversary of last year's communal riots in Malaysia passed most without incident this week. Stringent government security measures\pre- vented any serious trouble. Nevertheless, two Chinese died. as a resultlof Malay-initiated incidents, and the country remains a racial tind box. SECRET Page 1 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Cambodia THAILAND KOMPONG GRAM pong KT am A[gRgnB{ Takhmaty Pr ney Jf';Yag 0 P Q.N G U ke O tAK 1 I Y g 7 ~~ P80 IIIEM SECRET Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET CAMBODIAN GOVERNMENT SUFFERS MORE MILITARY SETBACKS Communist operations are keeping Cambodian Army troops off balance and restricting the gov- ernment's overland access to its eastern, northern, and southern provinces. Communist inroads in these provinces, as well as else- where, indicate that allied opera- tions along the South Vietnam bor- der have not impeded greater Com- munist activity in the Cambodian interior. Phnom Penh appears to be growing more concerned over the deteriorating situation in Kom- pong Cham Province, where Commu- nist forces reportedly have been moving westward in recent weeks. Enemy troops have attacked sev- eral towns in the province and have cut roads and telephone wires. In the adjacent province of Kratie, whose capital was captured by the Communists on 6 May, local reports claim some Communist forces are moving north toward Stung Treng Province, but thus far no major attacks have been reported in that area. In the south, the Communists are still surrounding and attack- ing the towns of Angtassom and Takeo, and they also have cut the main roads north and south of the two towns. In Kampot Province, the government still holds the provincial capital, but scattered enemy attacks have been reported along the coast. Increased Commu- nist activity was also reported in Kompong Speu Province, where the closure of the main road between Phnom Penh and the key seaport of Kompong Som (Sihanoukville) appar- ently is the primary objective of Communist forces there. The Communists suffered one significant military reverse during the week, however, when South Viet- namese Marines regained control of the Neak Luong ferry south of Phnom Penh. Western journalists reported that some North Vietnamese Army troops were among enemy casualties. It is doubtful that the Cambodians can hold this position without the continuing presence of South Viet- namese forces. In Peking, meanwhile, Sihanouk has postponed his return to Cam- bodia. He said during a recent television interview there that "resistance fighters" in Cambodia had told him to wait for better conditions before joining them. In a message addressed to his "army," Sihanouk said he was en- trusting the management of "lib- erated areas" to three leftist ministers of his recently formed "Royal Government of National Union" who he claimed were already in Cambodia. On the political front, Phnom Penh and Bangkok have agreed to re- sume full diplomatic and commercial relations, and it appears likely that the Lon Nol government will soon follow suit with Saigon. Hanoi and the Viet Cong have decided to withdraw their few remaining dip- lomats in Phnom Penh. They did not, however, follow the Chinese Commu- nist example and announce a formal break in relations. SECRET Page 3 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET VIETNAM After its initial temporizing and indecision in the wake of US actions in Indochina, Hanoi has now begun to take a stand. The Communists recalled their top negotiator Xuan Thuy from Paris on 11 May, and Viet Cong delegate Madame Binh is expected to leave later this month. Some Communist staffers will probably continue to attend the weekly sessions, but the Communists obviously do not expect worthwhile negotiations in this forum for some time. Hanoi has also underscored its rejection of recent proposals for wider con- sultations on all of Indochina. Moscow's treatment of North Vietnamese party first secretary Le Duan when he departed after three weeks of high-level talks with the Soviets on 9 May sug- gests that Hanoi has opted for a tough stance. The atmospherics surrounding his departure intimate that Moscow--which has always counseled moderation--was ex- tremely displeased with the line Hanoi has chosen to follow. TASS described Le Duan's discussions with Brezhnev as merely an "ex- change of opinions on Indochina," and the Vietnamese leader was al- lowed to depart without any ges- ture of support or any formal farewell ceremonies. Whatever decisions Hanoi has made obviously have been well re- ceived in Peking. Instead of ignoring Le Duan, as has fre- quently been the case in the past, Mao Tse-tung, Lin Piao, and a host of other leading military and party figures turned out to wel- come him when he arrived. The implication is strong that the North Vietnamese have moved in a direction that will bring in- creased material and political support from China for their policy in Cambodia. The South Vietnamese nt's inability to come h problems such as stu, and inflation is hu workng relations among cial and could lead to, ganiz~tion of the cabi Ministk,r Khiem, in pa has beg\ n to talk of because of differenc Presidenf. Thieu and economic policies. tried to gloss ove with Khiem,,at le moment. SECRET overn- grips ent un- ting ey offi- icular, esigning s between imself over Thieu has any friction Page 4 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET reform or rectify such regime malpractices is pending. Because the Saigon government has a large stake in preserving the forms of constitutional government, partic- ularly now that it is under in- tense pressure from a number of hostile sources, it will be hard put not to abide by the court's rulings. Meanwhile, both student and An Quang Buddhist leaders have taken steps to control their an- tigovernment agitation in order to avoid further suppression by the regime. The students report- edly have initiated a three-day truce in demonstrations in Saigon following the government's ban on disruptive meetings and demon- strations. While Saigon schools are closed, however, some student activists have gone to other ci- ties to help organize student pro- tests. Although the An Quang leadership holds the government responsible for its clash with rival Buddhists, they have ad- vised the faithful to heed only the directives of a moderate An Quang spokesman and not the calls to action of younger, more mili- tant monks. The government has been thrown further off balance by recent Supreme Court rulings striking down tax decrees of the executive branch and declaring the organization and procedures of military field tribunals to be unconstitutional. The court has also signaled that it may soon rule that the celebrated trial and conviction of Lower House dep- uty Tran Ngoc Chau is invalid. The usually cautious Supreme Court seems to be attempting to strengthen its role under the constitution and to be moving away from its past practice of avoiding deci- sions that might adversely affect governmental policies and pro- grams. Nevertheless, the court has been careful to announce its decisions at a time when National Assembly legislation that would Allied Operations in Cambodia US - South Vietnamese forces in Cambodia have encountered rela- tively little ground fighting, but they have seized large quan- tities of Communist arms and am- munition and have temporarily dis- rupted the enemy's command and control facilities. Most of the main force Com- munist troops and headquarters elements in Cambodian sanctuaries have fallen back and dispersed to avoid the allied operations. As a result, many supply depots have been abandoned by the Com- munists, and the allies have cap- tured considerably more munitions in the raids than were seized inside South Vietnam during the past year. Enough rice has been captured to feed 30,000 enemy troops for more than three months25X1 SECRET Page 5 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Meanwhile, in South Vietnam, the Communists have increased their attacks in the northern provinces and shelled Saigon and several other government cen- ters farther south. Communist sappers and artillerymen attacked numerous targets in southern I Corps, including a thrust into the provincial capital of Tam Ky that caused heavy casualties and damages. Sporadic heavy fighting between allied units and North Vietnamese regulars also continues in and around the large Hiep Duc refugee center south of Da Nang. It appears likely that the Communists intended the recent at- tacks to be a country-wide effort similar to the upsurge in early April, but enemy units located in the southern half of the coun- try could not participate as planned because of their preoc- cupation with allied raids into their rear base areas in Cambodia. SECRET Page 6 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET COMMUNIST OFFENSIVE STILL. FOCUSING ON SOUTH LAOS The Communists have again cap- tured the principal artillery base overlooking Attopeu town as they continue trying to clear government forces from the southeastern edge of the Bolovens Plateau. Govern- ment guerrillas remain in the area, however, and are regrouping in an effort to retake the position. The recent upsurge of Commu- nist military activity in the south has begun to rattle government lead- ers. King Savang has instructed the chief of the armed forces to hold the Bolovens Plateau at all costs. Such admonitions usually have little effect on the army's performance, but they do reflect the concern of the top leadership. Ban Na.`'Tha'T1e`n, .BIsang - adtion~lon~tian~j emunn, 1be~eni~s~ nvo _, 962 n pencodantateds e Palos tlia o The Communists appear to be capitalizing on the pessimism within government ranks. Employing pres- sure that is more psychological than military, they are circulating re- ports that the provincial capital of Saravane and Paksong will soon be hit. The.government announced that the threat to Saravane neces- sitated the evacuation of depend- ents, and by 12 May it had resettled some 2,700 civilians in the Mekong town of Pakse. 25X1 reports of substantial new enemy orces con- verging on Saravane remain uncon- firmed, but it is estimated that the Communists have upwards of 1,000 troops in the area. The Sar- avane garrison numbers less than 600 army, police, and armed civil- ian personnel, and it is expected to fall quickly if the Communists apply even light pressure. In the north the military sit- uation remains quiet. The absence of a major Communist move against Long Tieng in recent weeks has given a needed boost to the morale of the Meo defenders. Civilians have be- gun to filter back into the Long Tieng Valley, and the base hospital has reopened. Vang Pao has positioned almost 1,300 troops in the hills immedi- ately north of Tha Tam Bleung and has plans to push north into an enemy staging area near Ban Na. The guerrillas may run into considerable opposition if they move this way, however. The North Vietnamese have been rotating fresh troops into for- ward positions near Ban Na. Page 7 SECRET WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET THAI COMMUNIST INSURGENTS INCREASE ACTIVITY Communist guerrilla opera- tions, which have been moderate so far thip dry season, are on the increas'-e. The major threat remains in tke remote north and north-central,,provinces, where a force of som 1,600 insurgents continues to erode the govern- ment's positions along the Lao border. The security situation is especially bad ia. portions of Nan and Chiang Rai provinces, where guerrillas have'Iiarassed several army outposts,'gorcing the evacuation of at least one. Bangkok has sought to ase guerrilla pressure by the hevy use of air and artillery strikes. An army sweep operation last math into an insurgent stronghold nea\ the Lao border in eastern Nan Province met with disastrous re- sults, however. The guerrillas shot down two government heli- copters besides managing to over- run several government base camps and inflicting a number of casual- ties on Thai regulars. The op- eration was sparked by a growing number of reports that the-insur- gents were trying to seize and administer whole village6 in this region. The security suation is more favorable in e northeast, where the Communists are still on the defensive. The enemy's much-heralded dry-season offen- sive has not materialized, a de- velopment that may further under- mine the wavering morale of many rank-and-file guerrillas, as well as the appeal of the insurgency to villagers. Guerrilla incidents involving the assassination of in- formants and ambushes of local security teams remain endemic to the northeast region, however. Communist, guerrillas in the mid-South region have sharply in- creased their activity in recent months, particularly in the prov- ince of Ph4 thalung. The govern- ment's cot'hterinsurgency apparatus has not ~ffade any meaningful ef- fort todideal with the marked de- terior/tion of security in this area As a result, police are rel.:tant to wear uniforms; travel to utlying villages by. provincial aidistrict officials is reported Id be at a standstill; and local fficials appear uncertain about V to cope with increased guer- e counterinsurgency picture is con derably brighter in the southerrneaches of the peninsula, where acts ity by the Malayan Com- munist Terr ist Organization has been at a fa ly low level. In recent weeks j 'nt ground and air operations by Ba gkok and Kuala Lumpur have uproo d several in- surgent base camps long the Ma- laysian border, ,one f which was believed to have been the head- quarters of the terror?sts 12th "regiment." SECRET Page 8 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Thailand: Insurgent Activity Insurgents repel government operation Security situatio improving I Uhono Ratchathani Nakhon Ratchavm a Prachuap Khvi Khan ,~~5~(JTH* Area of Insurgent Activity SECRET Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET COMMUNIST CHINA TAKES OVER TANZANIAN MILITARY PROGRAM Pekiriggnow is virtually the sole provide',_of military aid and training to Tanzania, following the departure of-soviet and Cana- dian advisers earlythis year. A small group of East GbKman advis- ers in Zanzibar, however=",.. still shares naval training acti ties with the Chinese. the provision of a .undetermined number of aircraf . An unknown number of Chine military con- struction exp is arrived in the early part the year, reportedly to begin rk on the military air- With the elimination of So- viet and Canadian advisers, work has begun on several long-term projects. A naval base is berg constructed, with Chinese aist- ance, near Dar es Salaam. he base is part of a $10-million iavval de- velopment program towa which the Chinese are providin assistance of some $4 million Agreed to in late 1968. In ea.y 19 70 , over 100 Tanzanians 4nt to China for a long-post d, one- to two- year naval e gineering and tech- nology cou e. Peking has also started wdrk on an air defense "system7'that reportedly will in- clude the construction of an air base, the training of pilots, and SECRET Dar es Salaam dates back to Chinese military assistance September 1964, when a small con- ingent of advisers was sent to iliarize the army with the new hinese small arms that had been livered under the first contrac signed in February of that year. Si ce that time, agreements totaling o r $12 million have been signed for m itary hardware in- cluding small ms, antiaircraft guns, medium tan , patrol boats and landing craft, and an assort- ment of other milit y-related equipment. Part of t attraction of Chinese military ai is Peking's willingness to supply eq ment free of charge, or, at mos on liberal credit terms. 25X1 Page 10 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Early in the week, Moscow made public a telegram from Premier Kosygin to Cambodian Prince Sihanouk, the text of which omitted the formal recognition the latter has already received from Hanoi aifa Peking. Kosygin's telegram appears to be a holding operation to permit the Russians to ? decide whether to throw full support to Sihanouk despite his growing depern4ence on Peking. It will be difficult for the USSR to continue out of step witls, Hanoi for long on a policy matter of this importdnce. Meanwhile, Sino-Soviet.border talks presumably began again follov ing the return to Peking of Moscow's chief negotiator, Kuznetsov. In the UN,`-the US was the primary target:of what was probably Moscow's most abus''iye attack in that forum in sejeral years. Soviet Ambas- sador Malik charged that under the pretext of outside threats, "the boots of the American military if chine are trampling *fie soil of Cambodia and the Israeli cutthroats are blindlyand bloodily copying their teacher." French-Cambodian relations are steadily deteriorating. The French have cut off arms shipments to Phnori enh Official French opi n is markedly pro-Sihanou ut no move to recognize his governmen_ f=in- ile is likely because of the large number of French nationals and; investn'Wnts in Cambodia that would be endangered by such a move. No substantive details _, are yet available n the proceedings of the three-day CEMA Council session in Warsaw, whi was slated to close on 14 May. Polish Premier Cyrankiewicz told the openi session that economic integration and cooperation were to be examined, a he stressed the need for improved relations among CEMA countries. Creati of an international investment bank, price reforms, and economic relations ith Western coun- tries were among subjects to be discussed. The Polish p s has called the debates "lively" and "controversial." The Council of the European Communities (EC) this Neck made significant progress toward the beginning of entry negotiations wthe UK, Ireland, Denmark, and Norway. It decided to hold a formal openin session with all four applicants in Luxembourg on 30 June, to be followed July by an exploratory working session with the British. Irish Prime Minister Lynch has weathered the political storm e gendered by the cabinet upheaval last week. His party's acceptance of hi nominations for cabinet posts made vacant by dismissals and resignations guarpntees that he will win a vote of confidence scheduled for the 15th. SECRET Page 11 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET The focus of Bonn's Ost- politikreturned to Moscow, as Sovi-'et Foteign Minister Gromyko and West Gman negotiator Egon Bahr met on1 May for the first time in almost two months. Fol- lowing the pattdrn of earlier meetings, the two`iegotiators had little to say after the session beyond indicating that they would meet again dater this week. Nevertheless, it'-was ap- parent that the talks are-.,still mired in "preliminaries," A;1d fall well short of actual treaty drafting. Bahr apparently had hoped that his previous round with Gromyko in March would allow the two sides to move on to th negotiation of a treaty draft This proved unrealistic, how and there has been no sugge ion that Bonn this time expect dra- matic progress. In fact,,~ there have been no indications/that Mos- cow has any intention down the demands that peded progress so fa equivocal West Ger of the postwar re; German borders sion of Germany scaling ave im- As before, aining un- an recognition ignment of Obviously with the aim of putting pressure on the Germans, the Soviets continue to insist, both publicly and privately, that West German concessions on the territorial question are essen- tial preconditions to any agree- ment or normalization rela- tions between Bonn a Moscow or any of the other arsaw Pact states. The week efore Bahr's return to Moscow. the Soviet ambassador to ance told a press conference t the Soviets will "tolerate n revision whatsoever of the pos ar realities." His point wa echoed in an article on 8 M by Soviet Defense Minis r Grechko. ast month the Soviet ambas- or in West Germany told the ambassador--evidently assuming is words would be passed to the West Germans--that Gromyko would begin to find the talks a waste of time unless Bonn soon offered ome "specific concessions." T %e flexibility that Bonn has shin in its talks with Warsaw on the Oder-Neisse border prob- ably has encouraged the Soviets to hope-that Bonn may be brought to give"way on the general issue of border:. In spite'-of the difficulties, Bonn appears firm in its resolve to continue itpursuit of detente with the Soviets;.and the East Eu- Germans want to as ropeans. In part of firm Soviet backi scheduled meeting bet for Brandt and East Ge Stoph in Kassel on 21 M g for the een Chancel- an Premier also aware that the concl" the relatively fast-movin Bonn is sion of talks with Warsaw is dependent it large measure on developments in Moscow. SECRET Page 12 WEEKLY SUMMARY 15 May 70 ular, the West Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET ILO FACES SUCCESSION PROBLEM The retirement of US citi- zen David Morse after 22 years as directoi-general of the Inter- national LabQr Organization (ILO) has led to a hot, four-way con- test over the succession. The ILO's governing board presumably will elect one of the four an- nounced candidates at next week's special session, and the outcome could have considerable impact on both the direction and efficiency of ILO operations. The ILO was founded in 1919 under terms of Part XIII of thi Versailles Treaty. Seeking to improve conditions of labor by international cooperation and agreement, the ILO is based on the so-called tripartite pri i- ple--i.e., the representativ s on the policy-making insti tions are selected by the emplo ers, workers, and member Bove nments. In recent years e princi- pal thrust of the ILc s work has been directed at th problems of the less developeq/countries. Last year, for ex&mple, the ILO launched the Word Employment Program to encourage ILO members to make their-national develop- ment programs" provide work oppor- tunities and adequate incomes for a broader stratum of their popu- lations.-The Soviets have also taken a--greater interest in ILO affairs recently, seeking higher positions in the ILO staff but at-? tacking the tripartite principle. The leading candidate to suc-? ceed Morse is his chief deputy, C, W. Jenks of the UK, who has been with the ILO since 1931. In view of Jenks' age, many gov- erning board members"favor his election only to complete the balance of Morse'.` term, which expires in Sept fiber of 1973. to secure i rregional support for a youn -r man, which is pres- ently lack ng. P is, however, is strongly backi g French national Francis Bla ard, another Morse deputy. chard's age would permit him accept re-election to a full en-year term in 1973, and the French also argue that it is time for the promotion of a "Latin" candidate after the lengthy ten- ure of the "Anglo-Saxon" Morse. Two candidates have emerged rom the less developed regions. A,tthird Morse deputy, Albert Ted odjre of Dahomey, recently annonced his interest in the positkon. African ILO members previotqs ly had been thinking in terms oi~, the 1973 election, but concern at someone other than Jenks migh% selected now has prompted an acceleration of Teveodjre'sandidacy. A fourth c ndidate, Uruguay's ILO representati e Hector Gros Espiell, like Tev odjre, prob- ably would seek to.ocus ILO ac- tivity to an even giVater extent on the less develope regions. Moscow's inclinationsn XL dis- pensing the significant bloc of votes it controls on thd'govern- ing board are not clear as this point, but it will opt foZ the 25X1 candidate it regards as most likely to support Soviet citi- zens for high posts. SECRET Page 13 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET -RENCH OVERNMENT OYES TO DEAL WITH 3C TERE VIOLENCE Over the past two months, there has been\enough scattered violence on the-part of student radicals and econbTnically threat- ened small shopkeepers to provoke a strong "law and order" reaction in France. In this cf'imate, the National Assembly recency passed-- by a massive majority--e remely harsh legislation that wou,,d in- i n ro=-P ompF d' s mi n s to r o f ed- fcTf, accent for the absence of moderate o osition to student riots like ose at Nanterre Uni- versity in arch 1970. troduce for the first time &4, doc- pro trine of collective responsibility "1 of demonstrators present at th0, scene of a violent confrontatioi*r~. This action is a tacit ad- mission that France's far-reach- ing university reform program, adopted in the fall of 1968, has/ not had the desired effect of calm- ing France's troubled campu .: s f= m u--governmen no logepor b.fxtly tom- mitted.to, the goals of the ,968 reform program, and to datA has not been willing to commi;? the funds'-."`necessary even to,1irovide adequate physical faci pities and teaching staff for Frnce's rap- idly expanding student population. Fc ,tie- evernfeent, as wall as ,, fQx the future`. f French higher educat, n,- this 'rit p 1ls se- It was precisely the conditions created by ladk of facilities and personnel that allowed radical groups to gain widespread support among the majority of moderate stu- dents during the student-labor crisis in May 1968. Thy -- =^ conditions, now combined with the lack-of leadership -andT uriderstand- s it moves quickly to 'e conditions _t rough an tj.ve and well-financed im- tatjon, of.. the 1,96_e,,_ reform am, the govefft-ieit's present and order" reaaetion will. prob- y only incre tt `f^f a:l student mpathy"for the radicals. T7r""any -, scattered student strikes and occasional flare-ups of violence are likely to continue over the next few `years. these\c depend' frontations will on the go f ob ab ly ment's handlin(X of sity cri s th of the rad c are presen concerte ma e aut unless a s moll provoc a on in such`way a major inci- Even so, such i cidents are not likely to lead to nother so- cial crisis on the orde of .he one of May 1968, primari because French labor is in no moo for massive strike action. As ong as students remain isolated -rom other numerically significant yRso- cial groups, they do not pose`a serious threat to the Pompidou government. SECRET n the activities he radical groups action ~possible Page 14 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET YUGOSLAV PI,,--TY LEADERSHIP TIGHTENS DISCIPLINE The Yugoslav party prasiccium seems to believe its programs may be headed for trouble, especially because of opposition within the party bureaucracy. At a meeting on 22 April, the presidium adopted a resolution calling for the re- juvenation of party discipline in an effort to motivate the whole population to identify with the country's controversial self-man- agement system. Under this sys- tem, councils are elected by the workers and given the power to manage their enterprise's own af- fairs. The presidium's action is partly an attempt to breathe new life into the "liberal" resolu- tions and statutes adopted at the 9th party congress in March 1969. These provided for the opening of party jobs to better qualified young people as a part of the process of revitalizing the party leadership. Following the invasion of Czechoslovakia, party decisions were readily ac- cepted as a wave of patriotic fervor swept the federation. The momentum of those days is now gone, and there is once again a general recognition that party members must ensure that the ac- cepted party line is incorporated in the decisions of the self-man- agement councils. management system" by Yugoslavs both in and out of the party. There is even suspicion among some leaders that the Soviets are behind this dissidence. The presid- ium resolution is aimed at such opposition, specifically requiring that everyone take a stand. Neu- trality will not be tolerated. Specifically, the presidium is intent on ensuring that uncom- mitted members be rotated out of party jobs and that the economic reforms be reoriented to lessen the gap between the rich and poor regions of Yugoslavia. In addi- tion, the party leadership is in- terested in fostering an expansion of self-management under enlight- ened party guidance, and in a democratization of the party's reorganization and its manner of doing things. Although unity is the key- note of the plan, it will be easier to talk about than to achieve. There is no hint how- ever, that a party purge is un- der way. How party members are to work for self-management with- out increasing the party's role in day-to-day decision-making has not been explained. There is, however, a sense of urgency about tightening discipline. This is probably in anticipation of Tito's death or retirement, a time In recent months there has been some opposition to the "self- that many Yugoslavs feel is not far off. SECRET Page 15 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET SOVIET SHIPS VISITING FOREIGN PORTS Ships of the Soviet Navy have been making a number of for- eign port calls since the conclu- sion of exercise "Ocean" earlier this month. The latest good-will visit began on 14 May when two anti- submarine ships and two diesel submarines arrived at Cienfuegos, Cuba. These units, which had been operating in the Caribbean for a week, will use Cuban fa- cilities for replenishment. The ships and two TU-95 naval reconnaissance aircraft that flew from the USSR to Havana on 13 May may conduct additional operations with a nuclear-powered cruise missile submarine sighted south of Cuba yesterday. Some of these operations may take place in the Gulf of Mexico. TU-95s provide reconnaissance and tar- get information to missile-armed ships in Soviet naval exercises and may do so for these ships if they conduct missile exercises. A similar group of ships that op- erated in the Caribbean in 1969 had no aerial support. A small squadron from the Baltic Fleet recently concluded a five-day visit to Cherbourg, France, to commemorate VE day. Similar courtesy visits were made to Algiers and Casablanca, and on 13 May two guided-missile ships and a tanker called at the Nigerian port of Lagos. Exercise "Ocean," followed by such a high number of foreign port visits, reflects Moscow's continuing effort to demonstrate the world-wide political and mil- itary utility of the Soviet Navy. USSR BECOMES AN EFFLUENT SOCIETY The Soviets are becoming aware that environmental problems are in inevitable concomitant of industrial development and that their economic system is not im- mune to these problems. The re- cent drafting of water-pollution legislation and a willingness to participate in international meet- ings on the environment illus- trate their growing concern. Al- though their pollution problems are not yet as serious as those of the industrial West, solutions will not come easy. In the past, the Soviet lead- ership has been relatively unre- sponsive to the pleas of conser- vationists. An example is the 12-year battle to save the unique flora and fauna of Lake Baikal from destruction by pollution from wood-pulp mills. A decree finally adopted last year for- bids logging in much of the area and requires lumber enterprises to install purification equip- ment. A Soviet agriculture offi- cial recently claimed that the government's failure to pursue a coordinated conservation policy has resulted in "immense" damage to the country's natural re-sources. SECRET Page 16 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Here we are trying to breed fish in conditions closest to nature.-Krokodil, Soviet satirical magazine He accused the government of ig- noring wind and water erosion, water pollution by industrial and municipal waste, overcutting of forests, excessive use of chem- cials in agriculture, and air pol- lution. Press articles have identi- fied water pollution as the coun- try's most critical environmental problem. Pollution of the Volga and the Caspian Sea, a result of offshore oil drilling and con- tamination by shipping and indus- trial sewage, threatens to wipe out the caviar-producing sturgeon Irrigation projects and hydroelec- tric dams also have caused the water levels of the Caspian and Aral seas to drop, raising their salinity and destroying plant and animal life. The most recent evidence of government action to stop this environmental mismanagement is a draft law to protect lakes and rivers from pollution. Violators will be liable to prosecution, and authorities will be able to shut down the polluting facili- ties. Various officials have urged that a comprehensive con- servation program be included in the upcoming five-year plan (1971- 75). On the international front, the Soviets have participated in various ecological conferences and are currently helping to plan a global network of stations equipped to monitor changes in the earth's environment. The Soviets traditionally have been good at launching cam- paigns but less successful in their effective implementation. Cleaning up polluted areas and preventing further pollution would require tremendous alloca- tions of resources. Competition over resources is already keen, with the military, agriculture, industry, and the consumer con- stantly fighting for larger al- locations. The antipollution forces are probably too weak and unorganized to get even a finger in the pie. Furthermore, enterprise man- agers are unlikely to sacrifice fulfillment of production targets in order to introduce antipollu- tion technology. Finally, the slow development of and the dif- fusion of innovations, largely the reasons for the USSR's present technological lag behind the West, will also retard antipollution technology. SECRET Page 17 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET GOMULKA ASKS FOUR-POWER ENDORSEMENT OF BORDER Polish party leader Gomulka has in efKect called on the four wartime al publicly to ies to be prepared eclare their accept- cord on the Oder- ance of any a Neisse border at Warsaw may Speaking on 9 reach with Bonn. May in Wroclaw, G iterated that Pola wishes to ith Bonn, but that unqualified 'lcecognitio of Poland's postwar frtiers, not merely "respect" for them is the point of departure.\ Despite his public piton that the borders agreed b at Nts- dam are final, Gomulka 46s been fully aware of the rig of the four powers to a fina voice in delimiting Germany 's frontiers. He now appears to b seeking a commitment from th four govern- ments that when d if a Polish - West German bord or agreement is reached, they wf11 declare their intent to incorporate it into any future peace treaty. Gomulka's statement implic- itly endorses the formula pre- SECRET on. Page 18 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 sente last week by the French Gove nment to visiting Polish For ign Minister Jedrychowski, wh responded favorably and of- f red to sound out the Soviets. rance planned to present the proposal to the US and UK in Bonn this week. With optimism growing in Warsaw that a bilateral border agreement can be reached, the fourth round of the Polish - West German talks is slated to convene in Bonn on 8 June. Bonn's For- eign Minister Scheel reportedly is planning to open the session to lend "solemnity" to the occa- sion. While he is in Bonn, Po- and's chief negotiator, Deputy eign minister Winiewicz, is scftv,quled to meet with Chancellor Brandt. Bilateral economic ne- gotiat"1-Qns, stalled since last January, ?\.,may also be resumed Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET The Israeli thrust into Lebanon earlier this week brought only a temporary lull in fedayeen harassment. Some 12 hours after Tel Aviv's troops withdrew, the fedayeen shelled two Israeli` settlements along the border. Israeli's Deputy Prime Minister Allon has already threatened to strike Lebanon again if the fedayeen attacks continue. Along the Suez Canal, action'., was relatively restrained (luring the -early part of the week, but Wednesday and Thursday saw a renewal of artillery duels and air action. Egypt lost two MIG-21 s, and several otherrif its planes were damaged. The UN's Relief and Works Age lcy (UNRWA) will defer most of its planned cuts iii, service to the refuga camps of the Middle East. The move had been proteslyd bitterly by Jo ?.:anian and Lebanese officials, who feared it would facilitate-fedayeen recr tment. UNRWA faces a large deficit if the cuts are delayed fo -Jong, and ospects for a favorable response to a special The UN Security uncil approved independence for Bahrain this week, ending Iran's 150 -old claim to the Persian Gulf island. The Shah had agreed in advance. /to ar ept the findings of Secretary General Thant's representative, who r, ported at most Bahrainis preferred independence to association with Irafi r Dahomey's iew civilian gover ent of "national union" was installed without incidexft last week, and a t eatened general strike has not mate- rialized. The regime is not likely to s ive over the long term, however, given the depth of the country's proble and the mutual animosities of the three presidents. Spdradic Muslim-Hindu rioting still con ues in India following the initial outbreak on 7 May in a town near Bomb ; so far, 106 people have been-`killed. Militant Hindu groups have been bl ed for heightening the already tense communal feelings, and security o I 'cials now are taking e Pensive precautions to forestall rioting in Bombay roper during an up rf minn Musli h lid m o ay An apparent attempt by Ceylon's leftist oppositionpalition to dis- credit Prime Minister Senanayake's United National Party (UV) appears to have been largely ineffective. With elections scheduled for 27 My, the UNP and its allies now seem to be leading in contests for 77 of the 1'S1 elective seats, and 19 more are considered tossups; the opposition is credited with only 42 seats, while independents and others lead in the remainirrgl races. SECRET Page 19 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Bet Ehe'a Haif S SECRET Al Quftaytirah r- SY :iA Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET ISRAEL MAKES STRONG MILITARY THRUST INTO LEBANON An Israeli armored force-- probably no larger than two bat- talions at the most--made a heavy foray into the southeastern Leba- nese districts of Marjayoun and Hasibayyah early on 12 May. The action followed a marked step-up in activity during the previous week by Lebanese-based Arab guer- rilla units against Israeli border communities, climaxed by the kill- ing of four civilians in the set- tlement of Qiryat Shemona. The Israeli strike came after several warnings to the Beirut government and to the fedayeen of imminent retaliation if the terrorist ac- tivity was not halted. Tel Aviv has given only scanty details of the operation, but has flatly denied Arab and fedayeen claims of heavy fighting and large numbers of casualties. Israeli officials have sought-- perhaps for image-making pur- poses--to depict the foray as a limited one aimed at capturing some guerrillas and destroying their bases. They described the action as both a "combing" and a "screening" operation. An Israeli spokesman said that 30 guerrillas had been killed, 11 taken pris- oner, and some vehicles and 40 buildings destroyed. These numbers seem light: in an area believed to contain 1,500 to 2,000 fedayeen. The fedayeen themselves claim they resisted valiantly and success- fully, and the Israelis have ad- mitted by implication that they Page 2 1 met more resistance than was ex- pected. Lebanese communiques on the other hand, made no reference to fedayeen involvement in the foray. Lebanon publicly and privately claimed that it engaged the Is- raeli force with its own army, destroyed some Israeli tanks, and 25X1 suffered casualties. Syria made a token show of support for the fedayeen--and lost three MIG-17s in the proc- ess. Other Arab states, while giving strong vocal support, stayed clear of the Israeli force. Iraqi artillery in Jordan shelled Israeli positions along the bor- der, but Iraqi forces did not enter the fighting in Lebanon. President Nasir's contribution was to send his army chief of staff to Beirut with a message for President Hilu. Lebanon has officially ac- cused Israel of escalating ten- sions along the border and of using isolated fedayeen incidents as a pretext for aggressive pur- poses. n a mPPting with.-..the Bttg... Four ambassat s President Hilrned that the ,~. rk could spell the end for policies of moderation in the. _.%-.arch for a solution to the Arab-Israeli im- passe. SECRET WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET FEDAYEEN GROUPS FORM NEW COORDINATING BODY The 11 major fedayeen organ- izations announced on 6 May the formation of a new central com- mittee within the structure of the Palestine Liberation Organization (PLO). Membership will include the PLO Executive Committee, the chairman of the Palestine National Council, the Palestine Liberation Army commander, and representa- tives of the various fedayeen groups as well as of a number of independent, nonmilitary Palestin- ian organizations. The unified military command, set up in Amman last February, will be dissolved and its functions will be absorbed by the new committee, which is to determine common military and po- litical policies. According to an unconfirmed Syrian press report, the 11 feda- yeen organizations are to be al- lotted one seat each on the new committee. If this is true, it represents a concession to the head of the Popular Front for the Liberation of Palestine, George Habbash, and other leaders who have refused to join any such uni- fied grouping unless each organi- zation had equal representation. This insistence on collegiality stems from fears that any other system would lead to eventual dom- ination by Fatah. Since Fatah first gained control of the Pal- estine Liberation Organization in February 1969, it has in fact sought to do just that. Acceptance of the equal rep- resentation arrangement by Fatah would be something of a blow to Yasir Arafat's pre-eminent posi- tion. Fatah, o course, retains contr o of both the Palestine National Council and the Palestine Liberation Organiza- tion's Executive Committee, and may seek to make the new central committee subservient to these other entities. This would be opposed by Hab- bash and the leaders of the other organizations, who will probably attempt to use the central com- mittee as a collegiate grouping that would act as a counterweight to the two bodies already con- trolled by Fatah. Moreover, the statement issued by the fedayeen when they announced the formation of the central committee under- scored the fact that the new body is to play "the command role in the resistance movement." The coming months could there- fore see the emergence of a col- lective leadership in the fedayeen movement and the gradual eclipse of Yasir Arafat. The possibility remains, however, that the new body will be merely another paper organization and that each feda- yeen group will continue to go its own way, cooperating when it is to the group's advantage: and disregarding anythin considered disadvantageous. SECRET Page 2 2 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET RELIGIOUS REACTIONARIES PROTEST IN AFGHANISTAN In sharp contrast with the agitation for progessive reform troubling many countries, Afghan- istan is currently experiencing demonstrations by ultraconserva- tive religious elements opposing the government's cautious program of social and political change. Afghanistan's Muslim elders-- the mullahs--have long disapproved of King Zahir's efforts to nudge his kingdom into the twentieth century. Their discontent has been fed by periodic leftist street disorders in Kabul and by the government's indecisive and ineffective response to the "rab- ble." Nevertheless, since 1929-- when they helped topple a previous regime in Kabul--the mullahs have rarely given vent to their dis- pleasure with the government. Their sporadic, localized out- bursts of violence in outlying areas have been handled fairly easily by the authorities. The election last fall, how- ever, returned a parliament more conservative and more rurally oriented than its predecessor, and the mullahs may have inter- preted this as a go-ahead to carry their protests to Kabul. Govern- ment cooperation with the Soviet Union on the Lenin centenary cele- bration in Afghanistan in late April provided the specific oc- casion for mass demonstrations. The mullahs' demands ranged from suspension of a leftist newspaper to a ban on women appearing in public without the veil. Rumors abounded that elements in the gov- ernment had initially encouraged the demonstrations in order to balance leftist protests but that the situation had then gotten out of hand. As mullahs from the provinces began moving toward Kabul, offi- cials voiced fears that they might clash with leftists celebrating May Day. Security precautions in the capital were the heaviest in recent history, the authori- ties being fully aware that, in this devoutly religious country, melees involving the mullahs are far more explosive than other disturbances. The mullahs relinquished the streets to the leftists on May Day, but subsequently resumed their protests. Tensions began to lessen, however, when it ap- peared that the government had reached an agreement with the mullahs. Moreover, the crisis is tak- ing its toll. Executive-legisla- tive relations have been exacer- bated by the refusal of the prime minister and his cabinet to ap- pear before the Lower House for questioning, and rumors are cir- culating that the government may fall. Leftists are again demon- strating, which could provoke further clerical reaction. Most importantly, the mullahs have re- minded the government that they still exercise real political power. Official policy over the next few months will be shaped with this very much in mind. SECRET Page 23 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET IRAN TAKING NEW LOOK AT KURDISH SITUATION The peace concluded on 11 March between the Baathist government of Iraq and the rebelling Kurds has forced Iran.into a re-evaluation of its relations with the tribesmen. The Iranians are aware that previous agreements reached by the Iraqis and Kurds since 1945-..:have resulted in nothing but renew4d hostility. How- ever, the Iranian 1clief that the Soviet union was ins\rumental in the present settlement has now added a new and--for Iran--a si1ister facet to the problem. Some high-level Iranis be- lieve that the announced agement c ti ons tutes merely a cease-fi'te, and that Kurdish distrust of the central government continues. e to the Kurds tends to substantiate, thi th i s es s. A number of Iranians, however, interpret the cease-fire as creating in effect two autono- mous sections of Iraq, and the im- plications of this are causing worry in Tehran. Although the role played by the USSR is still unclear, the Iranians are extremely suspicious of Soviet motives and believe that the Rus- sians have promised to assist the Kurds in forming an independent state that would include Iranian Kurdistan. This independent Kurdistan would re- ceive Soviet economic and military aid, they fear, and would eventually come under Soviet control. The Iran- ians have a vivid memory of the Kurd- ish Mahabal Republic of 1946 that, Page supported but not spo by Mos- cow, appeared for a ime capable of maintaining its in ependence. The Irania s are particularly jumpy because f the possibility that Baghdad ill use the Iraqi Kurds could als `yutilize exiled former u~ SAVAK chef Telmur Bakhtiar's knowl- edge 9t Iran's security organiz- ations`to initiate insurgent oper- aticzs in several isolated Iranian presvinces. Tehran's nervousness is evidenced by its recent, continu- ng military build-up in this area. Despite his agreement with the Iraqis, Kurdish rebel leader Bar- zani continues to express sincer- ity and loyalty to the Iranians, Iranian aid to Barzani's forces has been halted, however, and con- tact is being maintained only at a low level. Most Iranians have lost confidence in Barzani~ W le the Iranians are still in the ocess of determining the amount a kind of future aid, if any, they could provide, the Iraqi Kurds,they have begun to pull out vulrttrable personnel from Iraqi Kui ish areas. Never- theless, they a e unlikely to abandon the idea f somehow being able to foment a bellion within T , SECRET 24 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET There has been very little reaction in Latin A rica outside of Cuba to ,military developments in Cambodia. In Venez 1a Communist youths, iitpstly high-school students, sponsored some monstrations but caused Iittt&,,trouble. Ficfiel~ Castro's strong reaction to the st recent operation by Cuban exiles prob .bly is intended to divert at ntion from the faltering sugar harvest and ti promote closer military t' s with Moscow. Castro no doubt realizes that his~10-million-ton goal for e sugar harvest cannot be met, and he may plan to be the exile attac as an explanation. Armed Forces Minister Raul Castro-.bas just conclu d a lengthy visit to the Soviet Union, where he probably negbliated for a itional Soviet military aid. Charges that the exile attacks are being launc d from and sponsored by the US were probably used in these talks, Fo the second time in less than a year, Soviet naval units are visiting Cuba."-. In Brazil security force renegade army captain Ca s Lam3rca. Authorities now plan an all-out operation to destroy mareas organization. Late last week,=the nine Latin American nations attending the terri- torial-limits conferr ce in Uruguay signed thee `Declaration of Montevideo," reinforcing their aims to jurisdictional rights to the waters, seabeds, and subsoil up to 200 miles from their shores. The cjeclaration contends that coastal states hive the right to establish the limits c their territorial waters and to set regulations for their use. A larger conference is scheduled for this summer to draw up a common position for use at any i ernational meeting on the law of the sea. Guyana is moving to extend its control over existing foreign invest- ments. Prime Minister Burnham has notified the major bauxiia companies that the government is seeking equity participation in their operations. The extent of participation desired is unclear, but one company fears that a controlling interest will be required. Guyana now requires a 51-per-cent minimum of Guyanese participation in all concessions to be granted in4the future for the exploitation of natural resources. Private Canadian-US discussions are continuing on preparations for an international conference on the Arctic. Both sides are agreed that a confer- ence should be limited to consideration of pollution control and navigational standards in Arctic waters. No formal date has yet been set pending further talks, and the participation issue is still under consideration. SECRET Page 25 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET CUBA MAY ELIMINATE PRIVATE FARMS There are signs that the Cas- j More direct criticism of the tro regime is losing patience with the owners of small farms and may be contemplating action against them. A desire for more effi- cient land management and dissat- isfaction with the farmers' per- formance in the 1970 sugar har- vest seem to be the main reasons for the government's attitude. Any attempt to repossess the small farms, however, will prob- ably be engineered with considera- ble caution. The farmers, who with their families number over a mil- lion, constitute an important seg- ment of the population, and the regime will probably have to sweeten the nationalization meas- ure with some type of compensation to avoid alienating such a key group. If the 200,000 small farms are nationalized, a few taxicabs and some coastal fishing boats will be the only remaining pri- vately owned enterprises in Cuba. Although the peasants in many areas have been continually reluc- tant to participate fully in the government's political campaigns and economic schemes, the first sign of official exasperation with small-farm owners was voiced by Fidel Castro during a speech in December 1969. In discussing the mechanization of agriculture, Cas- tro complained that "small land- holding is not a proper method of exploiting the land; it is pre- historic. . It is not a na- tural method because small plot ownership is not consistent with technology. . Modern technology and highly productive machinery require expanses of land." small-farm owners began to appear early this year when the provin- cial press and radio in Matanzas, Las Villas, and Oriente provinces laid partial blame for harvest pro- duction problems on the farmers and their poor attendance record in the canefields. In one munic- ipality, for example, only 50 of the 200 peasants available showed up in the fields to cut cane. One provincial party offi- cial cited poor preparatory politi- cal work by the government-con- trolled National Association of Small Farmers (ANAP) as the rea- son for the farmers' recalcitrant attitude. Government thinking may have been indicated last January when ANAP president Jose Ramirez headed an agricultural delegation to the USSR to study collective farms. In a speech Ramirez said, "Al- though there have been great eco- nomic and sociopolitical changes among our peasants and rural work- ers, we must state that we are only beginning the transformation of our agriculture." The only positive action against the small-farm owners so far has occurred in the past. few Ives occ is being confiscated. If this practice draws only mild reac- tion, the government may make more drastic moves. An indication of the government's policy may appear on 17 May, Peasant's Day, and the eleventh anniversary of Cuba's first agrarian reform law, or on 26 July, when Castro is expected to deliver a major speech. x 25X1 25X1 SECRET in certain provinces Page 26 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET DOMINICAN RESIDENT HEADED OR HE-ELECTION ICTORy President Balaguer is ex- pected to win re-election on 16 May by a comfortable-margin de- spite shifting opposition politi- cal alliances and cont uing po- litical violence. It is doubtful that th& op- position parties can overcome- Balaguer's lead, even if last-min- ute agreements result in an out- right political alliance between some of the parties or in further abstentions. Balaguer's advan- tages as an incumbent, his mili- tary support, and the general public's respect for his work over the last four years have put him in a commanding positi The negotiations among oppos groups, which are designed a common candidate, have but the maneuvering is m dicative of the parties ual weakness than of tential strength. 0. which should provi against expected n. ion find ntinued, e in- individ- eir po- observers he contest, e some buffer Juan Boscl;''s major opposition Dominican Rev(lutionary Party (PRD) which is ab gaining from the elec- tions on g>unds of repression, is giving /lukewarm support to Vice President. Lora for the presidency. Althouvhl, PRD spokesmen continue to dissociate themselves publicly fF91f,or "the elections, local party oizations reportedly are work- i Lora. PRD leaders have said they will not t6'rce their followers to abstUh from voting, and Lora's ticker, despite its rightist tinge,. ppears to them to be the leaf offensive option. Althh Balaguer needs only a plural' y of votes to win, he wants Majority in order to avoid being ssailed by the PRD and othe as a minority president. If e receives less than 50 per- c t of the vote, it will encour- ge the opposition to attempt to oJst him. If the vote in the ci"tj_es--where Balaguer is not popu3ar--is low because of PRD abstention, the President stands a good chance of equaling the 57 percent-*, otal he achieved in 1966. At that tens, however, he faced Bosch in a .essentially two-man race. whi Pre-election violence, has contipued at a tively three doz wounded in `gh level,,, with persona ki Although the C ties on elec lence prob the ball do not jor e po on day`; y will not ing. The Comm eem to be plannin ort; instead, they a hope that some of the -ition parties will attempt ',o st Balaguer before the August\ SECRET Page 27 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET RADICALS REMAIN IN BOLIVIAN CABINET The first cabinet crisis since President Ovando took over the government last September was ended--at least temporarily--when a new cabinet was announced on 12 May. The cabinet submitted its collective resignation on 10 May, presumably to give the President a free hand to implement an admin- istrative reorganization of the various ministries. Labor Minister Rolon was t prime candidate to be replaced SECRET following the government's total failure to control or even to in- fluence events at the national congress of the Bolivian Labor Central (COB), which finally closed this week. Ovando had been seeking organized labor's support for his "revolutionary" government, but the COB congress took a distinct antigovernment line. The military's old enemy, the fiery labor leader Juan Lechin who has been exiled from Bolivia for most of the past six years, was permitted by Ovando to re- turn to Bolivia and was elected to the top COB leadership posi- tion. In addition, a resolution was passed demanding that Bolivia be made a socialist state. and Information Minister Bailey. plan to force the iasue or even move against Ovando if he does not soon take steps to replace or at least curb the influence of Minister of Energy Quiroga It was in the name of the armed forces that the Ovando gov- ernment came to power, and many of the top leaders have since be- come disenchanted with the course the government has taken. The civilians Ovando appointed to give his cabinet a revolutionary image are being blamed for the government's drift to the left and even for the antigovernment and antimilitary line of the COB congress. Military leaders, there- fore, have demanded the removal of the leftist civilians and may Page 28 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET CARIBBEAN GOVERNMENTS TAKE ANOTHER LOOK AT BLACK POWER.- In the aftermath of the Trin- idad disorders last month, a ma- jority of the Caribbean governments are reassessing their public posi- tions toward Black Power and are adopting more stringent controls over its proponents. Many of the Caribbean leaders are concerned that events similar to those in Trinidad could disrupt the peace and prosperjty of their states if they permit militants to agitate and preach racial violence. There is general agreement that Trinidad's Prime Minister Williams waited too long before trying to exercise control over Black Power elements whose demonstrations 'and subsequent arrest led to the recent unrest. As a result, the goveri ments appear to be less relu giant to limit the activities of Back Power elements and more reo(dy to risk political attack frojft radi- Prime Minister Williams (Trinidad and Tobago cals ~'fi the in- terelt of appeal- in9einstead to b oader politi- al sentiment and preserving public safety. Some governments also seem to be more concerned about the poten- tial loss of tourist revenues than the politi- cal risk involved in confronting the militants. Prhne Minister Barrow (Barbados) TBarbados, the to for the seg6nd Regional Back Power Con- ._ erence scheduled for 9 to 12 July, Prime Minister Barrow has pro- posed legislation that would make it a criminal of- fense to preach violence or racial hatred. He also intends to prevent nonnationals from 11participating in the country's po- litical activity, requiring offi- cial clearance of all speakers and topics before permission to hold a meeting is granted. Barrow is ap- parently determined to maintain the ,.position that militants should not ke banned from Barbados but con- tolled after they get there. Last weep Stokely Carmichael was detained at tie airport, then permitted to stay Overnight, but was not allowed to spear. at a political rally in his honor, Many other Caribbean leaders are also relctant to give in to the demands of='?;the radicals. Ja- maican Prime Minister Shearer has said that he will"-deal harshly and rapidly with anX incipient an- archistic developmen`t,. Recently, some of the smaller i-ands have manifested their conce? by banning travel of the more promi'ent Black SECRET Page 29 WEEKLY SUMMARY 15 May 70 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Next 1 Page(s) In Document Denied Iq Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Secret Secret Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY Special Report Suharto s Indonesia Secret N2 14 15 May 1970 No. 0370/70A Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 25X1 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET Suharto, president of Indonesia for three years, will visit the United States officially and for the first time from 26 May to 2 June. He is expected to discuss the Cambodian situation and Southeast Asian affairs generally, and probably hopes to reach agreement on a modest military acquisitions program that has been under consideration for some weeks. He will express his appreciation of past US economic assistance, and, as a means of main- taining the so-far favorable climate in Washington toward aid to Indonesia, will talk with the Senate Foreign Relations Committee and speak to the National Press Club. The 49-year-old Suharto has placed his stamp of caution and prag- matism on his administration. He has eased forward on a number of prob- lems while consistently maintaining priority on economic improvement. Indonesia under Suharto continues to make progress on the difficult tasks of economic rehabilitation and is preparing for national elections in mid-1971. The proscribed Communist Party, which remains under strong government pressure, is scattered and ineffective. Although ultimate government control is in the hands of the army, civilian participation is considerable and effective, particularly in the eco- nomic sector. The army considers it necessary to perpetuate its political role at least until economic recovery has been achieved, and will seek to do so in the coming elections and to reinforce its position with civilian alliances. Although Indonesia follows a nonaligned foreign policy, its interna- tional relations in recent years have been weighted toward the West, from which it receives critically needed financial assistance. Largely because of Indonesia's strongly anti-Communist domestic stance, relations with the USSR and Eastern Europe have been correct but cool in the post-Sukarno era; ties with China were suspended in 1967, and prospects for an early resumption of diplomatic relations are poor. Other than continuing negotiations for economic assistance with both non-Communist and Communist nations, Indonesia's principal international objective is to develop its influence in Southeast Asia. Major facets of this policy have been the founding and subsequent support of the five-member Association of Southeast Asian Nations and Djakarta's recent initiative that resulted in the scheduling of an Asian conference on Cambodia. Special Report - 1 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 15 May 1970 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET Suharto's rise from poor boy to the top ranks of army and political leadership is still fairly unusual in Indonesia, yet not much attention is paid to it. Suharto seems to be accepted for what he is-a disciplined, reliable, capable individual. He cannot inspire the colorful copy that former president Sukarno did, but there seems to be general satisfaction that he does not. with the rank of lieutenant colonel, and then began a steady and quietly distinguished rise in independent Indonesia. By 1963 Suharto had been appointed to the second most senior post in the army as head of the Strategic Command, a combat-ready strike force. It was logical that he should assume temporary leadership of the army when the Communists launched their abortive coup on the morning of 1 October 1965, kid- naping and later murdering army commander General Yani and five other generals. Suharto was born of humble parents in a Central Java village in 1921 and spent a childhood eventful chiefly for being shuttled from relative to relative after his parents' separation. In June 1940, bored with his job as a bank clerk, Suharto volunteered for the Dutch colonial army, and remained in the armed forces under the Japanese. He fought effectively against the Dutch, emerged Special Report When President Sukarno, who had been in- volved in planning the Communists' antiarmy ac- tion, instructed army leaders to nominate three candidates for the position of army commander, they submitted only one name-Suharto. Al- though Sukarno regarded Suharto as "too stub- born and too anti-Communist," he had no - 2 - 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 ~r.uicr, i alternative but to install him as army commander and did so on 16 October 1965. As head of the developing new Indonesian leadership, Suharto believed that his major tasks during the following year and a half were to maintain the cohesiveness of the army, crush the large Communist Party, and so reduce President Sukarno's power and prestige that he could be quietly and peacefully removed from office. Su- harto accomplished all three objectives, the last in an elaborately phased program, which at the time was criticized by many of his supporters as need- lessly slow. Perhaps it could have been done more rapidly without disruptive consequences, but Su- harto's schedule gave him and his military and civilian colleagues time to sort out some of Indo- nesia's economic and political complexities and to ease the transition from the old order to the new. On 12 March 1967, the Indonesian Congress unanimously passed a decree declaring Sukarno "no longer capable" of fulfilling his presidential duties and naming General Suharto acting presi- dent. A year later, on 27 March, Congress elected him to a five-year term as full president. Suharto's initial image after the 1965 coup as a strong and resourceful albeit cautious leader has remained valid. He has shown strength and resourcefulness in dealing with the nation's urgent economic and security difficulties. In approaching the baffling problem of the domestic political situation, he has demonstrated cautiousness. The severe economic deterioration and the threat of Communist resurgence both demanded action, and these urgent requirements provided both a valid and a convenient rationale for imposing, until recently, a partial moratorium on political activity. Given the fragmented state of Indo- nesia's political party system, the task of charting the way toward a predominantly civilian govern- ment that would be representative, non-Com- Special Report munist, and still stable is indeed formidable. Su- harto's caution, which his critics see as needlessly stalemating the political situation, probably stems from a variety of reasons. These include a basic distrust of politicians, the need to feel his way, the priority given economic improvement, and the lack of a clear idea as to how to restructure and redirect the still-immature Indonesian party system from its present fragmented and parochial base to one along program-oriented lines. Suharto has made no effort to disguise the fact that the army is the major political force in Indonesia and his own chief support. He and his colleagues feel strongly that it is the only organi- zation capable of administering the country dur- ing this period of economic rehabilitation and political reorganization. It is the only cohesive, nationally organized group in the country, its loyalties are nationally focused, and with the passing of time, it has increasingly avoided the regional and ethnic divisions that afflict those civilian organizations aspiring to a national role. When General Suharto, then still commander of the army, assumed the presidency in March 1967, the Indonesian Army achieved greater and more effective participation in government than ever before in its 25-year role of nation building. Although Suharto has since relinquished com- mand of the army, he remains the minister of defense and as such is commander in chief of the armed forces. In the 23-man cabinet the army holds three other portfolios, and the navy and air force hold one each. The military, particularly the army, is well represented in all departments at subministerial levels and in industrial and agricul- tural state enterprises. Army officers serve as gov- ernors in 14 of the nation's 26 provinces, and junior officers and noncommissioned officers hold a substantial proportion of subprovincial 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SJ CRt f jobs down to the village level. Military appointees constitute 18 percent of the membership of par- liament and congress, and hold approximately half of the nation's ambassadorial posts. Suharto and the army uphold the doctrine of the military's "dual function": the military must participate actively in the nation's political and economic life, as well as provide its defense and security force. Politically, army leaders seek a middle road between what they regard as the "free-for-all" parliamentary democracy of the 1950s and former president Sukarno's subsequent authoritarian rule. This middle way would permit significant popular participation but would retain a strong central leadership and a major political role for the army. In the economic sector, the army vigorously argues that economic improvement is a prerequi- site for political stability and a necessity in count- ering a future renascent Communist Party. Su- harto himself is an especially dedicated supporter of this line, but he has entrusted the formulation of economic policy not to the military but to a group of talented and well-trained nonparty ci- vilians. From the beginning of his leadership role in October 1965, Suharto has worked to develop a united military team and to eliminate interservice rivalries. Although the navy and air force are much smaller than the army (army-250,000, navy-48,000, air force-30,000), Suharto has con- sistently included the two smaller services in the military's national role. A military reorganization announced in Oc- tober 1969 and gradually being implemented pro- vides for centralized Department of Defense auth- ority over the three services and for an integrated command down to the provincial level. The chain of command runs from Suharto through six inte- Special Report grated theatre commands. The change increases Suharto's personal control over the armed forces and should make for a more flexible andrespon- sive instrument for carrying out the military's functions. In directing national life and interpreting the role of the military, Suharto has insisted on the observance of legal forms, has tried to listen to the civilian voice-although this effort is some- times obstructed by the military around him-and has displayed sensitivity to civilian charges of "creeping militarism" and corruption. These traits of sensitivity, caution, and tolerance have inclined Suharto to pursue a considerably more liberal administration than could have developed under more authoritarian military personalities on the scene. Although he is unwilling to diminish the army's ultimate authority-fearing any one of sev- eral results such as political instability, a turn toward an Islamic state, or Communist resur- gence-he nevertheless strongly believes that the military bears heavy responsibilities not to misuse its power and authority. For example, when students demonstrated against rising prices early this year, Suharto or- dered that not a shot be fired and that cabinet ministers meet with and answer the students' questions. He has told military com- manders-who, because of Indonesia's economic predicament and budgeted funds, are compelled to engage in fund-raising activities for troop wel- fare-that these activities must be truly directed toward this purpose and not be "obstacles to national development." On the whole, his ap- proach to government indicates a continuing in- tention to avoid military authoritarianism yet to maintain the ascendency of the military as it guides the nation in achieving economic develop- ment and political modernization. 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 5r;URET Although the army is clearly predominant, civilians hold a number of important posts in the cabinet, bureaucracy, and legislature. Those hold- ing the more responsible positions, however, are nonparty technicians or individuals with little po- litical support. Political party members, who had hoped that the downfall of former president Su- karno would restore the parties to greater influ- ence, find that although they have a larger voice than during the last years of Sukarno's rule, their present position falls far short of aspirations. There are seventeen civilians, eight of whom are members of political parties, in the 23-man cabinet, and civilians predominate in the ap- pointed congress and parliament. Suharto has en- couraged these two bodies to carry out their constitutionally prescribed functions (congress makes policy and parliament legislates), and they have indeed from time to time provided a check on the executive. Suharto has urged the army to respect and support civilian officials in the prov- inces. At the same time, however, Suharto relies a great deal on a few military colleagues for advice on day-to-day affairs, a fact that tends to insulate him from civilian views other than those of the economists. The inefficiency of the bureaucracy, moreover, has caused Suharto to rely consider- ably on the army hierarchy for administrative assistance. Suharto shares the army's distrust of po- litical parties in general and, in particular, of Moslem parties, which account for a plurality of the electorate. This distrust stems from the na- tion's experience with parliamentary democracy (1949-1956), the parties' irresponsibility during those years, their concern for acquiring greater power rather than for achieving national goals, Special Report and the series of unstable coalition cabinets that characterized that period. The military's par- ticular negativism toward Moslems is rooted in its memory of the fanatical Darul Islam movement, which tried to establish a theocratic state by armed force for more than ten years before it was crushed. The army also remembers that the Masjumi, the modernist Moslem party dissolved in 1960, supported the 1958 provincial revolt, an- other crisis that the Djakarta government had to settle by military force. Reinforcing these fears is the suspicion that all faithful Moslems, militant or not, want to replace Indonesia's secular society with a Moslem state. Of the three major parties in Indonesia-the Moslem Scholars (the party of traditional Moslems), the Indonesian Moslem Party (modernist and successor to the Masjumi), and the secular National Party, the army clearly prefers the secular Nationalists. The parties to a considerable extent have earned the army's lack of confidence. As organi- zations, they are poorly disciplined, indecisive, and unable to formulate a national program. They tend to be special-interest groups that are ethni- cally or religiously based. Although within the parties, particularly the Moslem Party, there are individuals who have a strong sense of national purpose, they have so far been unable to translate this into a program of action. The army's exclu- sion from leadership roles, of some of the very individuals in both the Moslem and National par- ties who might stimulate a healthier development, however, merely perpetuates the present stagnant, unproductive atmosphere pervading the parties. The army is currently trying to develop an organization of functional groups as another ci- vilian vehicle for political support for the Suharto regime. Functional groups (youth, intellectuals, labor, women) have long been an element of the Indonesian political scene, and the civilians in parliament theoretically are about evenly divided 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Indonesia SOUTH VIETNAM Kudat Palembang 'BILLITON GREATER A Bali{ DJAKARTA anjungkarang- Talukbetung rsogurar-~ ~ rr(araIt Ban/K Surabaja ,Teluktrie[arrb. Bandiarmasinj ISLANDS LEE nga,radj .:, CHRISTMAS ISLAND (Aust.) 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Pontianak' Sin'ta Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET >SER SUNDA ISLANDS W~TAR -:~jjCla FLORES .,:u[ tl ..~ ffLBNalat ,Labll'~tenbadjo uwaia PORTUGUESE PHILIPPINES Special Report 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SEUKL l between functional group representatives and those of political parties. These groups have had many purposes over the years, but one of them consistently has been to give legislative support to the executive as a counter to opposition from the parties. The army's intended vehicle, the Joint Secretariat of Functional Groups (SEKBER GOLKAR), as presently constituted is a loosely coordinated group of organizations with no sig- nificant political experience. It is being reor- ganized, restaffed, and groomed to participate in the 1971 elections. Modernizing civilian groups, mostly compris- ing individuals unaffiliated with the political par- ties, see SEKBER GOLKAR as possibly offering the opening wedge for the restructuring of the political party system. If SEKBER GOLKAR can indeed be transformed into a political party, it could develop into a broadly based organization neither dependent on one region nor having only a narrow religious appeal. Its candidates would ideally run on a pragmatic platform of economic improvement and social progress. It is unlikely that in the year remaining before elections SEKBER GOLKAR can become a major party, but if it can develop even a small but firm base and a successful working relationship between the army and some nationally focused civilians, it will have achieved a good deal. PROGRAMS AND ACCOMPLISHMENTS:. ECONOMY, SECURITY, POLITICS The primary domestic policies of the Su- harto administration are continued economic im- provement, the prevention of a Communist resur- gence, and movement toward representative, stable, non-Communist government. Given the ex- treme economic deterioration caused by Su- karno's economic excesses and neglect of basic needs, the Suharto administration has made im- pressive progress in pursuing these policies. The Special Report major achievement has been to bring the galloping inflation of the early post-Sukarno years to a halt. In April 1969, a modest five-year development program was launched. The program, which calls for an expenditure of roughly US 4.5 billion dollars, is small in terms of the nation's size and needs, but its goals were determined on the basis of Indonesia's capabilities and the estimated avail- ability of funds. The plan emphasizes agriculture, the achievement particularly of self-sufficiency in rice, improved transportation and communica- tions facilities, and public services. Although all recovery targeted for the first year of the plan was not achieved, some signifi- cant gains were registered. Rice production was up in 1969, and most of the main roads in Java were improved. Export earnings increased, and imports-which also increased-showed a sub- stantially higher proportion of capital goods and raw materials in 1969 as compared with consumer goods than in previous years. Indonesia's economic recovery is being un- derwritten by a group of Western nations and international organizations with the US and Japan as principal donors. Since 1966, this group has pledged more than $1.5 billion. These same na- tions have also annually postponed payments on debts that Indonesia negotiated with them during the Sukarno era. They now have tentatively agreed on a longer term rescheduling of amortiza- tion that would permit repayment over a 30-year period, with no interest during the first 15 years. The Soviet Union, Indonesia's largest single creditor, renegotiated debt payments in 1966, but so far has refused to arrange a longer term re- scheduling. It may be willing to do so now that Western creditors have agreed on terms. The Suharto government welcomes foreign investment. In the past three years, it has signed 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET' some 30 oil exploration contracts and over 165 other contracts-chiefly in mining and forestry- with foreign companies. Eventually these invest- ments will benefit Indonesia but only after the long period necessary for exploration and survey work. The biggest hope for a quick return is the oil industry, which already nets the government substantial foreign-exchange receipts. On Vie debit side, Indonesia starts its de- velopment from a low base with a lamentably deteriorated infrastructure and a society oriented toward conformity rather than change. Manage- rial and technical inadequacies are hampering im- plementation of the development plan. There is virtually no effective entrepreneurial class beyond the small Chinese minority. The country's most fundamental problems-a rapidly growing popu- lation and unavailability of land-resist early solu- tion, and for the present largely negate economic growth. The problem is particularly acute on Java and Madura, where 65 percent of the population, now estimated at 118 million, occupies seven percent of the nation's land area. Family planning is only beginning and on a very small scale. Suharto and many of his civilian and mili- tary colleagues believe the latent appeal of the left can be defeated only through an improved living standard for the average citizen. While giv- ing priority to its long-term economic program, the government maintains a tight intelligence- security effort against Communist Party remnants and has continued to screen military and civilian organizations for Communist elements. The party, crushed in 1965, suffered a sec- ond calamitous defeat in 1968 when it failed in an effort at military resurgence in East Java and lost most of its postcoup leadership. The party's present active strength cannot be calculated, but it is roughly estimated that about 1,000 Special Report 9- 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 bituKET Communists still maintain organizational ties and that a far smaller number are engaged in or- ganized work. Active cadres appear to fall into two groups, both of which are pro-Peking in the sense that they see the ultimate need for armed struggle. The larger faction, for the present, how- ever, preaches peaceful rebuilding, while the smaller demands an immediate paramilitary ef- fort. Small groups are reportedly engaged in minor terrorism in Central Java, but whether they are acting out of conviction or have undertaken banditry primarily for economic survival is not known. The government faces a problem on what to do with imprisoned Communists who now total 67,000, some of whom have been in prison since 1965. These individuals represent a financial bur- den and an international embarrassment in that their continued incarceration has drawn wide- spread criticism. The government has released about 4,000 of the some 26,000 Communist pris- oners who had little status in the movement, and plans to release more this year. The better indoctrinated Communist prison- ers, about 11,000, are gradually being resettled in agricultural colonies either in "closed villages" or on remote islands. The hard core, some 5,000, will remain in prison and eventually will be brought to trial. Another 27,000-presumably those more recently arrested-have yet to be thoroughly interrogated, and no determination has yet been made as to their status. As an adjunct to both the security effort and the economic plan, the armed forces conduct a civic action program. This is essentially carried out at the village level, and involves small-scale road and bridge building and irrigation projects. The US has given modest support to civic action and is now expanding its aid program from $5 million to $15 million. Washington's military as- sistance program will continue to be focused on civic action, but some combat material probably will be included. Despite government misgivings over possible disruption of the economic development pro- gram, national elections in mid-1971 now appear definite, but they are unlikely to result in any significant change in parliament and congress un- less the army's plans go drastically awry. The two bodies will not be completely elected; instead, their memberships will be chosen by a variety of methods. Until last fall, the government appeared to be moving toward a second postponement of elec- tions. It argued that such elections would be costly, that the country needed to concentrate on economic development, that elections could dis- rupt the economic program, or that they might even promote political instability. During a series of consultations that Suharto held with political party leaders last October, however, only one party-the small Catholic Party-took the hint and agreed that elections should be postponed. The other eight pressed Suharto to hold elections on schedule. Apparently on the strength of these consultations and to the considerable surprise of the parties, Suharto decided to move forward. Presumably he believed that, all things consid- ered, it would be unwise to frustrate the parties further by another postponement. In November, parliament finally passed the enabling legislation; election funds have now been budgeted, and election committees formed. Some of the parties, particularly the National Party and the Indonesian Moslem Party, are actively recruit- ing. The army is pushing hard in the provinces with its organization of functional groups (SEKBER GOLKAR), and in April it put pressure on the National Party to elect a chairman who showed promise of being susceptible of army di- rection. Special Report - 10 - 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SEk lK1 1 The election bills provide for a 460-member parliament and a 920-seat congress. The govern- ment will appoint from the military and from nonmilitary functional groups 100 members of parliament and one third (307) of the congres- sional membership. The division between military and nonmilitary in this appointed sector is set at three to one. The remaining 360 seats in parlia- ment will be filled by election, using an elaborate system of apportioning seats that should give Java approximately 183 seats and the other islands 177. Parliament sits as a body in congress, and the remaining congressional seats will be partially elected and partially appointed. Present indications are that the government hopes to prevent the elections from causing either a major disruption of national unity or a serious diversion from the economic program. Although campaigning, as now scheduled, will be permitted for about ten months, parties have been ad- monished not to discredit other parties or groups, not to take issue with the five basic principles of the Indonesian state (nationalism, international- ism, democracy, social justice, and belief in God), not to disturb national stability and tranquility, and to stress the government's economic develop- ment program. The military will screen all elec- tion slates. President Suharto has suggested that the nine parties and SEKBER GOLKAR organize themselves into three groups-nationalist, re- ligious, and functional-to contest the elections. If he expects thereby to reduce the number of slates from ten to three, he is unlikely to succeed. The parties have "agreed in principle" with Su- harto's suggestion but so far have shown no will- ingness to submerge their respective identities. The army hopes, through the use of SEKBER GOLKAR and the cultivation of the National Party, to see the election of a substantial number of proadministration candidates. These, with the appointed membership, would give the government a more than adequate majority in both parliament and congress and would ensure Suharto's re-election by the congress in 1973. Although Indonesia officially espouses a pol- icy of nonalignment, foreign relations are in fact oriented toward the non-Communist world. This follows partly from the government's domestic anti-Communist position but chiefly from Indo- nesia's need for foreign economic assistance avail- able largely from the West and from Japan. Never- theless, Indonesia maintains correct relations with the Soviet Union and with other European bloc nations and has sought assistance from them as well. Relations with Communist China have been suspended since 1967 and show no sign of early improvement. Other than negotiating foreign aid, Indo- nesia's principal international interest is that of developing regional influence in Southeast Asia. With the largest population in the area, Indonesia sees itself as the potential area leader, particularly as Western forces either withdraw or reduce their presence. For the time being, Djakarta views the five-member Association of Southeast Asian Na- tions (ASEAN), which it established in 1967 with Thailand, the Philippines, Malaysia, and Singa- pore, as the principal vehicle for promoting its influence. Indonesia has been the most active member in trying to keep the organization alive. Indonesia is aware that it needs time to deal with its domestic problems and to develop the economic, political, and military base necessary for the ambitious role it envisions. It is concerned that the US may withdraw from Southeast Asia before the area has achieved reasonably enduring stability and security. At the same time, the Nixon Doctrine neatly complements Indonesia's aspirations. Special Report - 11 - 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Foreign Minister Malik's recent initiative, which led to the scheduling of the 16-17 May conference on Cambodia, reflects one facet of Indonesia's regional ambitions. Although genu- inely concerned over developments in Cambodia, Djakarta also sees them as an opportunity per- mitting Indonesia to assert itself. Djakarta shares Asia's general ambivalence toward Japan. Although Indonesia needs and en- courages Japanese economic assistance and invest- ment, it is concerned over Japan's economic asser- tiveness throughout the area and over indications of Japan's increased interest in military power. Indonesia fears that the US is pushing Japan to- ward assuming an increased area role at a time when Tokyo may be becoming less responsive to US influence. The Suharto government is gradually becom- ing more active on the international scene, but diplomacy remains secondary except as it sup- ports domestic needs. The government's major preoccupation continues to be with domestic problems. Although the Suharto government harbors many weaknesses, its progress to date more than outweighs its defects. The political posturing and economic neglect of the Sukarno era have long since given way to quiet, steady action toward meeting basic economic requirements, to an awareness of the need for a restructuring of the political party system, and to the responsible con- duct of foreign affairs. Least progress has been made in the domes- tic political sector. Although the government has attempted to move toward modernization, it has been obstructed by the entrenched parties. This mutual distrust between the military and the par- ties is more than a military-civilian rivalry. It is also fed by long-standing religious-secular differ- ences and ethnically based cleavages within Indo- nesian society. Ethnic, regional, and religious loyalties, less submerged now than in the days of Sukarno's emotionally based supernationalism, are being more openly expressed under Suharto. At this time, however, they do not affect Indo- nesia's very real sense of nationhood or threaten any dramatic schisms. The army sees national elections as tending to encourage, under the present party system, the centrifugal forces of Indonesian political life. Al- though Suharto has reluctantly decided to pro- ceed with elections in 1971, they will be carefully controlled both to prevent a factionalizing effect on political life and to perpetuate the army's role. Suharto's outstanding qualities as Indonesian leader have been his caution and patient skill in restructuring Sukarno's Indonesia. Although dynamic and modernist elements, both civilian and military, have fretted and criticized, Suharto has slowed the pace, and has achieved dramatic changes without rending Indonesia's delicately structured society. Responsible civilians, both in the parties and outside them, see no immediate alternative to the army's present role, but hope that within ten years enough progress will have been made to permit a return to a predominantly civilian government based on a more modernized political system. The S u h ar t o government's over-all ac- complishments to date, although commendable, are only initial steps toward the economic, social, and political development required if Indonesia is to fulfill the needs of its people, avoid political instability, and achieve the area leadership role to which it aspires. Special Report - 12 - 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Secret Secret Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY Special Report Detente and Defense: The Issues of the NATO Ministerial Secret N2 15 15 May 1970 No. 0370/70B Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 25X1 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET Detente and Defense: The Issues of the NATO Ministerial NATO Headquarters in Brussels The role of NATO in both detente and defense is in transition. The meeting of the foreign ministers of the 15 Alliance members in Rome on 26-27 May is a way station on the road to an uncertain destination in both areas. Soviet and East European initiatives for a Conference on European Security-designed to win acceptance of the status quo in Europe-have found popular appeal in some West European countries. The Allies are attempting to find ways to respond that will enhance NATO's detente image without jeopardizing the security of the Alliance. At the same time, they are embarking on a wide-ranging survey of the defense needs of the Alliance in the 1970s, set in the context of growing uncertainty in Europe about what changes will be made in the US commitment to NATO in the future and what the European reaction should be. Special Report 1 - 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 SECRET NATO ................. and the Warsaw Pact NATO members Warsaw Pact members 'France is a NATO member, but does not participate in the integrated command structure. Special Report -2- 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET Determination of the role NATO should play in the pursuit of detente in general and European detente in particular is the most im- mediate question facing the May ministerial. The NATO ministerial last December steered away from any new initiatives in the area of European security, in spite of the desire of a number of Allies to come up with a more enthusiastic re- sponse to Warsaw Pact overtures for a Conference on European Security. The final communique turned a cold shoulder to the Pact proposal for early convocation of such a conference on the grounds that Moscow does not intend that such a gathering negotiate basic political issues leading to agreement on a new security arrangement for central Europe. The convening of such a meeting, for the Soviets, would be an end in itself: to confirm the status quo in Europe. The com- munique reiterated the Allied offer to discuss specific issues, such as balanced force reductions; ways to mitigate East-West tensions caused by the military situation in Central Europe; and im- proved avenues for economic, technical, and cul- tural exchanges. Alliance members were encouraged to pur- sue bilateral contacts with the East, however, and the West Germans were specifically supported in their bid to the Soviet Union for a renunciation of force agreement. A more forthcoming Allied position on the security question was left con- tingent on visible progress in such bilateral ef- forts, which presumably would demonstrate a chance for success for broader East-West initiatives. Bilateral contacts since last December, al- though not very productive so far, have helped convince a number of the Allies that there is cause to go ahead with a strong NATO overture to the East on European security. They cite West Special Report Germany's negotiations with the Soviet Union and Poland, the talks between Chancellor Brandt and East German Premier Stoph, and the recent agreement between Bonn and Pankow on regu- lating and improving postal and telecommunica- tions traffic. This progress, together with the re- sumption of the SALT in Vienna and renewed talks on Berlin between the US, the UK, France, and the Soviet Union, has led to'concern on the part of some smaller NATO members that decisions affecting their security may be taken without their having been adequately heard. A more ambitious multilateral effort, although it might have no great prospect of success, would at least give these countries a forum. In any case, the prime consideration for many of these states is their domestic situation. With East-West detente such a popular issue, these governments find it politic to deprive their opposition of the high ground by appearing them- selves to be working zealously for detente. It is primarily for this reason that they find US posi- tions inadequate, particularly on a Conference on European Security (CES). MUTUAL AND BALANCED FORCE REDUCTIONS NATO consideration of the European secu- rity question in recent years has revolved around the topic of mutual and balanced force reductions (MBFR). Meeting in Reykjavik in June 1968, the NATO ministers signaled the Soviet Union that the Alliance was prepared to discuss MBFR. In, answer to the growing domestic pressures in the member states for cuts in defense spending, the ministers also reaffirmed that the over-all military capability of NATO should not be reduced except as part of mutual and balanced reductions with the Warsaw Pact. In the spring of 1968, NATO experts had already drawn up some force reduction models as 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET a guide for future discussions in the Alliance and a possible basis for negotiations at a later date. Although the Warsaw Pact invasion of Czecho- slovakia in August 1968 brought NATO's study of MBFR to a screeching halt and eased domestic pressures for cuts in defense expenditures, the 20th anniversary session of NATO held in Wash- ington in April 1969 again announced NATO's willingness to join with the Warsaw Pact countries in a search for topics that might fruitfully be discussed in an East-West forum. The ministers referred back to the "Reykjavik Signal" on MBFR, to which the Pact countries had not re- plied. Work was subsequently resumed on the MBFR models, and the continuation of this en- deavor was strongly supported at the December ministerial that year. The working group charged with preparation of the MBFR models has produced five illustra- tive versions, which after further review are scheduled to be submitted to the May ministerial. The models fall into two categories: one sym- metrical and four asymmetrical. The symmetrical version envisions NATO and Warsaw Pact force reductions on an equal basis. The four asym- metrical versions posit a larger draw-down of War- saw Pact than of NATO forces to take into account the Warsaw Pact's advantages, particu- larly the relative ease of return of its forces to the central European area. The models point up but do not resolve a major difficulty that would be involved in any attempt to implement MBFR. To be acceptable to the Soviet Union at all, the proposed reduc- tions would probably have to be symmetrical, but this would pose great difficulties for the West. Moreover, it is not clear how a proposed thinning out of forces in Central Europe would be related to strategic arms limitations. The French lately have been warning that the USSR might try to use MBFR to obtain a "denuclearization" of the areas involved. The Federal Republic last year was generally dubious about the Warsaw Pact proposals for a Conference on European Security, and it still rejects a conference in the form proposed by the Soviets. Since December, however, West German policy has taken a new tack. The Germans now appear ready to countenance movement toward discussion of European security issues if the main subject is mutual and balanced force reductions. A principal reason for this is that Bonn, more than other NATO capitals, fears that politi- cal and financial pressures will lead the US Gov- ernment to reduce its forces in Europe after mid- 1971. No West German Government would wel- come a weakening of Western forces in Europe while Warsaw Pact forces remain undiminished. Yet it would be financially and politically difficult for Bonn to make direct budgetary con- tributions to the support of US forces. Another option, an increase in West German forces, would not only be costly and unpopular at home, but would also cause a furor abroad and would ter- minate Chancellor Brandt's detente policy. This policy is based on the strong conviction that the division of Europe must be overcome. In this situation, Bonn officials view a mu- tual and balanced force reduction as a desirable program, both for its own value and for tactical reasons. If NATO and the Warsaw Pact reduce their forces at the same time, the US could carry out a reduction without the Soviets gaining a preponderance of strength and without the West Europeans having to make a greater contribution. It is not clear whether West German leaders be- lieve that Moscow would actually be interested in an MBFR centerpiece for a security conference. They have perhaps been encouraged by the So- viets' hints that they would consider discussing the topic, but only at a conference beyond the first CES. Even if the Soviet response is Special Report - 4 - 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET ultimately unfavorable, Bonn probably hopes that discussions of the possibility of MBFR will reduce pressure within the US for an American draw- down. Bonn probably also sees a strong NATO stand on MBFR as an aid to West German nego- tiations with the Soviets, and indeed, Brandt and his colleagues genuinely desire a reduction in armaments in both Eastern and Western Europe. The Scandinavian NATO members, Denmark and Norway, and Belgium and the Netherlands consistently have been avid advocates of NATO intiatives on European security. Backed strongly by public opinion, their governments are eager to consider anything they believe will advance de- tente. They support NATO proposals on MBFR but they really would like to see an affirmative Western response to the Warsaw Pact proposal for a Conference on European Security. Although they believe that MBFR can be accomplished only in the context of a general European settle- ment, these countries would certainly go along with an MBFR initiative in the hope that it would lead to a conference dealing with the broad range of European security questions. A number of NATO countries are prepared to support a strong initiative on MBFR without necessarily tying it to a broader meeting. Belgium, Canada, the UK, Italy, the Netherlands, and Luxembourg all share Germany's concern about the ramifications of any US cutback in its com- mitment to NATO, and therefore regard MBFR as a possible alternative to increasing their own de- fense efforts. They also are genuinely concerned with the promotion of detente, and, without holding out promises of success that might en- courage unrealistic popular expectations, believe that NATO must take some forward-looking steps. In addition to supporting a strong MBFR declaration, the UK is still pushing its proposal Special Report - `i - for a Standing Committee on East-West Relations (SCEWR) as an alternative to the Warsaw Pact call for a security conference in the near future. The SCEWR would provide machinery for more or less regular contact, exploration, and negotiation with the East in an attempt to determine if at some future time a CES might produce mean- ingful results. This idea, or variants thereof, is supported by several other members, including Belgium, Canada, and Italy. The Italians think that domestic public opinion demands some initiative toward detente, and a "historic event" at the Rome ministerial would undoubtedly please the Rumor government. One holdout to the desire of NATO's ma- jority for a significant initiative on detente is France. Paris objects to anything that smacks of bloc-to-bloc negotiations and does not like the idea of MBFR as a topic for an East-West con- fPr nce. Nonetheless, the French Government is studying the MBFR ques- tion internally to assess its potential impact on French security and is keeping a close watch on MBFR developments in NATO. The majority view, moreover, is not popular with the govern- ments of Greece, Turkey, and Portugal, which would prefer to maintain a relatively hard line toward the Pact's security conference proposals. They will go along, however, with as forthcoming an approach as the US will accept. Moscow may again attempt to nudge NATO toward a more positive position on the European security issue. Often in the past the Soviet Union has convened the Warsaw Pact nations prior to a NATO ministerial in an attempt to upstage the Allies. Whether Moscow decides on a repetition of this procedure or not, no new substantive pro- posal is expected from the Pact. 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET So far it appears that the US will be able to head off any NATO reference to a Conference on European Security in the ministerial communique going much beyond the reserved position taken at the December ministerial. Any direct connection between MBFR and a CES can probably be avoided as well. The pressure is on, however, for a stronger signal on MBFR, and a number of the Allies might not be satisfied to see the MBFR question buried in the body of the communique. The Germans, for example, favor a separate MBFR declaration, both to highlight its im- portance and to permit France easily to dissociate itself from the MBFR initiative while partici- pating in the general communique. The Federal Republic may be able to win significant Allied support for its claim that anything less than a separate MBFR declaration would be a step back- ward from the December ministerial. ALLIED DEFENSE PROBLEMS FOR THE 1970s The NATO members are agreed that while the pursuit of detente is an important Alliance priority, the organization must begin in any case to prepare itself for the uncertainties of the coming decade. Last March, acting on the sug- gestion made in President Nixon's foreign policy report to Congress, Secretary General Brosio pro- posed that NATO conduct a thorough review of the military and strategic problems it will face in the next ten years, taking into account the politi- cal and economic background as well. Starting from the premise that all the Allied countries have a common and equal interest in the defense of Europe, Brosio recommended for particularly close attention the enemy threat, the Allied strategy, the level of forces, the relations between different kinds of weapons, the nature and effec- tiveness of deterrence, and the distribution of efforts among member countries. Ambassador Gerard Smith (SALT), Secretary General Brosio, and Ambassador Ellsworth (NATO) The Allies have not determined. precisely how this comprehensive review will be handled. The task is already complicated by France's re- fusal to participate in the "military aspects" of the study on the grounds that this would not be consistent with its position outside the integrated NATO military command structure. But the French Government is keeping its foot in the door with its intention to participate in any "po- litical" discussions and its willingness to sit in on military talks. A report outlining the plans for the study will be presented to the ministerial, and the Allies will attempt to come up with a substantive report by the next ministerial meeting in Decem- ber. The study is likely to open up all of the most important problems of the Alliance, ranging from its strategic theory to the distribution of the defense burden among its members. The latter is already on everyone's mind, the Europeans being fully aware of the possibility of US reductions later in the decade even if the line is held in the next few years. But the individual European states have their own obstacles to any increase in their share of the burden, and they have not come to grips with the question of softening their separate burdens through some form of defense cooperation. Special Report 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 The major difficulty and the reason for the study will in fact be the large number of basic unknowns. What alternative force structures and strategies would preserve a valid deterrent? How will Western Europe's security situation be af- fected by the Soviets' assessment of their military requirements or opportunities in the Far East or in the Mediterranean? What implications will the SALT hale for NATO? Would limitations on or reductions in strategic forces without a reduction in conventional Warsaw Pact forces leave Western Europe more exposed? Will economic integration in Europe, including British entry into the European Communities, provide a context for European defense cooperation? Could a coopera- tive defensive effort evolve out of the British and French nuclear capabilities, and if so, what role in the effort would the West Germans find accepta- ble? THE SITUATION IN THE MEDITERRANEAN The increasing Soviet military activity in the Mediterranean has continued to concern the Al- lies. A report has been prepared describing the general situation and pointing to the threat the Soviet build-up in the area could pose to NATO's southern flank. The US would like Allied agree- ment on some concrete action, such as the estab- lishment of a special Mediterranean group in NATO for consultations on the problem and a broadening of member-state participation in NATO Mediterranean activities. The report itself will likely be approved. Beyond that, however, most ministers may be unwilling to do more than pledge to consider future additional measures to enhance NATO security and improve the opera- tional effectiveness of Allied Mediterranean forces. Special Report COMMITTEE ON THE CHALLENGES OF MODERN SOCIETY 25X1 In an area of less controversy, the ministers will note the progress made in the first six months of the Committee on the Challenges of Modern 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 SECRET Society (CCMS), NATO's contribution to inter- governmental efforts to improve the environment. The Allies, many of whom were dubious about the the efficacy of NATO involvement in this area when it was originally proposed by the US, seem lately to have warmed to the effort. Rapid progress was made in the planning stage, and a CCMS meeting this April firmed up plans for work this year looking toward proposals for gov- ernmental action in such areas as air pollution, disaster relief, and road safety. As the various CCMS projects are about to get under way, NATO is trying to work out a policy that would permit nonmembers to par- ticipate in CCMS activities, or to observe them. The US had proposed inviting outside participa- tion to preserve good relations with other organi- zations working in the environmental field, but some European members were uneasy about working in the company of countries whose gov- ernments they find objectionable, such as Spain. A compromise has been worked out, however, whereby outside participation will be judged on a case-by-case basis, giving any NATO member a chance to make a specific objection to any pro- posed participant or observer. The May ministerial is likely to leave most of the important questions facing the Alliance un- resolved, but it may also mark some advance in the search for answers that will be valid in a decade that may see considerable change in Europe's security situation. In keeping with NATO's pursuit of an image of detente as well as defense, some initiative on MBFR probably will be approved and an attempt will be made again to indicate NATO's interest in improving East-West relations in a number of con- crete ways. If there is a response or a premin- isterial initiative from the Warsaw Pact, it is likely to be a renewed call for a Conference on European Security under conditions the Alliance cannot yet countenance. The more skeptical of the Allies will continue to insist on the need to wait for some progress in the various bilateral Allied efforts. Nevertheless, it is by the means of such dialogues that the Alliance will arrive at a realistic assessment of the possibilities for negotia- tions on basic European issues. The approval the ministers are expected to give to the study of the defense requirements of the 1970s, even if it is not specifically referred to in the communique, may open the door for the eventual frank consideration of some of the inter- nal problems facing the Alliance in the near future. This may help to mitigate the European concern about possible unilateral US reductions in its NATO commitments after mid-1971, but the Europeans have a long way to go in finding a means of coping with such an eventuality. Move- ment toward defense cooperation would not be easy for Europe for a variety of reasons, including the uncertainty surrounding future French policy toward NATO and the lag behind the US and the USSR in European strategic thinking. The Europeans are likely to work in the review to minimize any US withdrawals and to avoid re- opening the debate on the existing strategy of the Alliance. Should it appear that this effort will fail, the Europeans may then be encouraged to devote more serious attention to the problems of defense cooperation. Special Report -8- 15 May 1970 SECRET Approved For Release 2008/04/10: CIA-RDP79-00927A007900030001-4 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Secret Secret Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 25X1 Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4 Next 31 Page(s) In Document Denied Approved For Release 2008/04/10: CIA-RDP79-00927AO07900030001-4