WEEKLY SUMMARY

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CIA-RDP79-00927A009800030001-2
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SUMMARY
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Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 DIRECTORATE OF INTELLIGENCE `W Secret WEEKLY SUMMARY State Dept. review completed Secret 22 September 1972 No. 0388/72 Copy N? 48 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 he WEEKLY SUMMARY, issued-every Friday morning by ueetly includes material coordinated with or preparei developments of the week through noon on Thursday. ice of Current Intelligence, reports and analyzes signif- by;` the Office of Economic Research, the Office of Strategic R,n.warch, and the Directorate of Science and I echnology. e published separately as Special Repo, is are listed in the equiring more conipre~rensive treatment and there- nts. CONTENTS (22 September 1972) i Vietnam: The Cease-Fire Option 4 Israel: More of the Same 6 Indochina 8 China: Another Quiet Anniversary WARNING The WEEKLY SUMMARY contains classified information affecting the national security of the United States, within the meaning of Title 18, sections 193 and 194, of the US 1 as amended. Its transrnis,.,ion or revelation of its con- 25X1 tents to or receipt by an unauthorized person is prohibited by MIDDLE EAST AFRICA Money Talks France: More Scandal Yugoslavia vs. the Emigres Bulgaria's Balkan Relations Norway May Reject EC Entry 14 Uganda: Amin Rampant Lb Arab States: Togetherness 16 Bangladesh: Signs of Discord 1.7 Moscow Woos the Arabs WESTERN IIEMISPHERL 1 3 Mexico: Security and Students 18 Bahamas: On to Independence 19 Uruguay: Who's in Charge Here? 70 Chile: Back to Politics SPECIAL REPORT (Published separately) Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 Next Page (s) Next 2 = Page,(s) In Doc u ment Denied Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 TAW 'ROW South Vietnamese Marines cheer recapture of citadel at Quang Tri.. MORE FIGHTING seems to be to enhance their position on the ground for the contingency of either a cease-fire The Communists stepped up the fighting in or of further prolonged fighting. (Communist ambitions obviously have been dealt a blow by the loss of the Quang Tri Citadel. Even so, the Communists as yet show no signs of giving up the fight for the rest of Quang Tri Province or elsewhere in the north. There are indications that they may be preparing counter- strikes along Route 1 and nearer to Hue. And/ and October. The Communists clearly are not capable of, and are not talking of, pulling off something to rival their three-pronged offensive last spring. Much as they might hope for some dramatic new successes, their current purpose SECRET Page 1 WEEKLY SUMMARY 22 Sep 72 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 SECRET %while government reserves are still tied down in the Quang Tri - Hue area, the Communists appear determined to make inroads into the populated coastal areas of Quang Nam, Quang Tin, and Quang Ngai.)i ''.Following up attacks they launched last month against the Que Son Valley of Quang Nam and Tien Phuoc District of Quang Tin, the Com- munists struck hard this week in Quang Ngai, overrunning a district capital and threatening sev- eral more with the division that recently moved to the province from the central highlands. The situation is considered critical by South Viet- nam's regional commander, General Truong, par- ticularly since he may have to take forces from the Quang Tri - Hue area to strengthen the de- fenses to the south :'- i The Communists also appear to be planning for greater offensive activity in the delta, where they have increased their forces. They are moving in supplies and equipment, including heavier artil- lery. They have about five regiments around Base Area 470 in the. northern delta and the equivalent SECRET Page 2 WEEKLY SUMMARY 25X1 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 NW, SECRET of at least two divisions in the western and south- ern delta. Last week, there was a sharp increase in shellings and attacks against government outposts in provinces around these enemy concentrations, notably Dinh Tuong and Kien Hoa in the upper delta and Chuong Thien and Kien Giang to the west.) j .(The Communists could try to use these forces to attack major towns, although the delta terrain makes them especially vulnerable to air action. In any event, the presence of the enemy units and the destruction of government outposts have been sufficient to cause some pullback of government administrators and troops toward the towns, enabling the Communists to circulate more freely in unprotected hamlets, where they can recruit and forage for supplies. Should the larger enemy units be withdrawn or forced out, such setbacks to pacification might be fairly rapidly reversed; if not, the deterioration could be more lasting. ) I I 'From Hanoi's point of view, the advantages of a formal cease-fire during the period of the actual formation of a coalition might well seem more attractive than fighting along present lines until the new government was established. In a cease-fire environment, the Communists would doubtless anticipate considerable disorganization on the government side which they could exploit with their own tight political and military organi- zation. Moreover, Communist cadre during a cease-fire presumably could more easily move into territory, especially urban areas, now denied them. 1 At the same time, a Communist willingness to accept, prior to cease-fire, only the promise of a coalition and to engage in a struggle later to see it develop in their favor, would represent something of a gamble. The Communists cannot be certain that they would come out on top. Such uncertainty, in fact, may lie behind the passage in the Viet Cong statement that the Communists are willing to agree with the US that a coalition would not be dominated either by the Com- munists or by the Saigon government but that both sides would form a coalition "on the basis of mutual non-elimination," a term implying no reprisals by either side. If they saw developments after a cease-fire going against them, they would be certain to invoke this understanding in an effort to protect themselves against gains by the government side. SECRET Page 3 WEEKLY SUMMARY enemy planning is o a con- 22 Sep 72 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 25X1 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 SECRET `Tel Aviv intends to press on with its "war" against the Arab fedayeen in the wake of Munich. The Israelis followed up their 8 September air strikes into Syria and Lebanon with a 36-hour ground-air operation into southern Lebanon on 16-17 September. Damascus clearly sees itself as the target for the next Israeli attack, and there are indications that the Israelis are preparing for just such an action. ~ /Some 200 Lebanese houses were blown up in the operation, a minimum of 60 fedayeen were killed, and two bridges over the Litani were de- stroyed. Elazar indicated that the army would have killed hundreds of fedayeen if they had not fled. Lebanese Army units were involved and lost 17 killed as well as some 44 wounded or missing. Figures on Lebanese civilian casualties are incomplete, but apparently were high., The Israelis lost three killed and had six wounded. 9_ SECRET munique issued on 19 September promised Soviet help in strengthening Iraqi defense capability.). r?,2_ ,'This sort of display suits the current inter- ests of both countries, but neither side has any illusion about the realities of the relationship. The w Iraqis recently told the Turkish foreign minister, - for example, that they are on guard against a too-assertive Soviet influence. For its part, Mos- cow does not want to be heavily committed in a country that often changes governments, nor does it want to be caught in the middle between Iran and Iraq. '-) The Soviets may have floated the idea of a standard friendship treaty and of port visits by Soviet ships in the hope that the current threat from Israel might make Lebanon more amenable than it has been to such proposals in the past. Even if Lebanon re- fuses, as seems likely, the Soviets gained some mileage out of Lebanese press coverage that por- trayed the Azimov-Franjiyah meeting as another example of Soviet support for the Arab world., ZThe six-day visit of Iraqi President al-Bakr also helped Moscow dramatize the rewards of close relations with the Soviet Union. Warm com- pliments were exchanged at state functions, eco- nomic protocols were signed, and the com- t,/1 ?Relations with Cairo are stalemated. The Egyptian ambassador, who left Moscow shortly after the expulsion of Soviet advisers, has not yet returned. Egyptian diplomats in Moscow recently told US Embassy officials that the Soviets are still stalling on Sadat's call for a summit. In light of this, the appointment of a new Egyptian charge has raised speculation that Cairo intends to keep relations at that level until they receive a satis- factory response to Sadat's proposal.? LSoviet pique over the expulsion from Egypt was expressed by a public lecturer in Leningrad who called Sadat a "reactionary" and a "religious fanatic." Although these lecturers are not gener-25X1 ally official spokesmen, in this instance the com- mentary probably was an accurate reflection of Moscow's frustration with Egypt. SECRET Page 17 WEEKLY SUMMARY 22 Sep 72 Approved For Release 2007/10/23: CIA-RDP79-00927A009800030001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 SECRET MEXICO: SECURITY AND STUDENTS The Echeverria government, which seems satisfied with its progress in solving many of Mexico's social and economic woes, is still search- ing for an antidote to nagging security and stu- dent problems' When President Echeverria entered office two years ago, his administration set about simul- taneously attacking corruption, poverty, malad ministration, inequitable distribution of income, and concentration of political and economic power. The administration feels it has made head- way, pointing to such initiatives as "dialogues" with dissenting elements, to increased spending on social welfare projects, to decisions on univer- sity policy favorable to students, and to expanded credit for rural development.' rVBut all is not running smoothly, as was dra- matically illustrated by the bombings on 14-15 September of government buildings and American companies, and by the two ambushes this summer of army troops by guerrilla leader Lucio Cabanas. Government officials say they do not consider the situation serious, maintaining that these activities reflect nothing more than simple lawlessness. While there is probably some truth to this claim, there is evidence that some of the violence has a political coloration. No particular group has claimed responsibility for the recent bombings, but explosions earlier in the month have been attributed to a peasant-labor guerrilla organiza- tion known to have an extreme leftist political orientation. Early in the year, after security forces com- piled a string of successes against guerrillas and criminals, officials claimed they had "broken the backbone" of the terrorist movement. Yet, the politically motivated Cabanas and his band continue to roam the rugged mountains of Guerrero State, and radicals are able to embarrass the government with bombings. Officials, despite their outward calm, are no doubt concerned that the security problem will get worse. Student agitation, although overshadowed in recent days by the guerrilla violence, is another irritant. Student unrest seems to be centered in provincial universities, especially those in Puebla, Nuevo Leon, and Sinaloa. While there have been clashes between students and the authorities, vio- lence involving rival student groups representing ideological extremes has been on the rise lately, with rightist groups, supported by conservatives in the Mexican establishment, fighting leftists. _'Echeverria is making a concerted effort to win over student critics, yet has not moved against the rightist gangs whose involvement in last year's bloody student clash has never been adequately explained. Echeverria apparently is hoping that his social and economic reforms will, in time, rob student militants of their causes. In the mean- time, he will deal with student unrest firmly, knowing that serious trouble, always a very real possibility, could damage his progressive image. BAHAMAS: ON TO INDEPENDENCE ';? Prime Minister Pindling's landslide victory in the election on 19 September promises important shifts in Bahamian relations with the US. j /Pindling's Progressive Liberal Party won a strong mandate for its pledge to seek full inde- pendence from Britain by next July, and London has made it clear that the "will of the people" will be granted. Formal Bahamian-UK talks on independence will probably begin in London this Decem ber./> + ;The party won 29 of the 38 contested House of Assembly seats while the opposition Free Na- tional Movement won only eight. A tie vote for the remaining seat will be settled later by a run- off election. Although independence was an underlying but little publicized issue in the campaign, the importance of race--the govern- ment party campaigned as the champion of the black population-and the Prime Minister's own popularity were clearly demonstrated. The SECRET Page 18 WEEKLY SUMMARY 22 Sep 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO09800030001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A009800030001-2 SECRET islands' downward-spiraling economic situation, aqd military support for a showdown. Several com- problem that the opposition sought unsuccess- manders recently expressed dissatisfaction with ~F- fully to blame on the Pindling government, does,., their political leaders and would be reluctant to not appear to have had much weight with the become involved in the suppression of the mass electorate.> cj ( labor movement. LPindling made it clear during the election campaign that, following independence, his gov- ernment expects to set a high price for continued US operation of the four defense-related installa- tions in the Bahamas. These installations include the Atlantic Undersea Test and Evaluation Center at Andros, the US Air Force Eastern Missile Test Range facilities at Grand Bahama, the naval facili- ties at Eleuthera, and the US Coast Guard LORAN station at San Salvador. These installa- tions are currently operated under agreements with the UK that give the US full freedom in its use of these facilities. It is anticipated that the Pindling administration will press for renegotia- tion of the base agreements immediately fol- lowing independence. Pindling is clearly counting on revenue from base rentals to help bolster the deteriorating economy and offset the anticipated loss of British support after independence. URUGUAY: WHO'S IN CHARGE HERE? Pressure from Communist labor unions has y.. forced President Bordaberry to grant a general wage increase that threatens current efforts to reduce inflation, now running at about 60 per- cent, and virtually rules out any possibility of Uruguay's fulfilling its commitments to the Inter- national Monetary Fund for this year.> 0 ~ Although Bordaberry publicly denounced the unions' pressure tactics and stated that he would not give in, he capitulated following a 24-hour transportation strike that began on 15 September. He reportedly wanted to take a harder line with the strikers, but failed to receive rJ SECRET ,1 /The wage increase becomes effective on 1 October, but the amount, which will be geared to increases in the cost of living, has not been an- nounced. Transport workers said they would strike again if they considered the increase insuffi- cient.> 7