CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A008600370001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 14, 2016
• Document Release Date: December 31, 2002
• Sequence Number: 1
• Publication Date: December 9, 1965
• Content Type: REPORT

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TOP SECRET
opy No . C 36
DIA and DOS
review(s) completed.
CENTRAL
INTELLIGENCE
BULLETIN
CURRENT INTELLIGENCE
RELATING TO NATIONAL SECURITY
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9 December 1965
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
2. Indonesia,: Sukarno has not slowed down army's
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anti-Communist campaign. (Page 3)
Singapore- MalAysia: Singapore's plan to resume
barter trade with Indonesia threatens its relations
with Malaysia. (Page 4)
4. Rhodesia: African countries having second thoughts
about breaking relations with Britain. (Page 5)
-5. Communist China: Peking's tradewith Free World
to reach record level in 1965. (Page 7)
Note: USSR-US. (Page 9)
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Indonesia: Sukarno's recent strictures do not
appear to have slowed down the army's anti-Communist
campaign.
Within hours after the President demanded that
political action be left in his hands, the Djakarta mili-
tary commander banned the PKI and its affiliates in
the capital. In a statement.to the People's Provisional
Assembly, which Sukarno addressed on Monday, De-
fense Minister Nasution served notice on 7 December
that the army would continue to press the President
for political and economic changes.
The US Embassy in Djakarta also notes a growing
estrangement between the Indonesian press and the
President. Most papers have played down Sukarno's
challenge to his opponents that they either depose him
or give him free rein. Most have indicated approval
of the army's recent actions.
In maneuvering against Sukarno, however, the
army finds itself circumscribed by long-standing Indo-
nesian political assumptions. The chief Indonesian
spokesman--an army man--in the drawn-out negotia-
tions with US oil companies operating in Indonesia has
issued an ultimatum to the companies that may well re-
sult in virtual nationalization of their Indonesian assets
by the end of the year unless major concessions are
forthcoming.
The army leaders probably feel that this strong
stand is in Indonesia's national interest, but they are
also aware that a compromise on the issues involved
would subject the army to charges from Sukarno that
it was overly deferential to "imperialistic?" US interests.
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Singapore- Malaysia Singapore's proposal to
resume trade with Indonesia on a barter basis con-
tinues to threaten its relations with Malaysia.
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A showdown was at least temporarily averted
last week when Singapore decided to defer the resump-
tion of trade pending further attempts to negotiate the
issue. The subject will be.Officially reviewed again
at the next meeting of the UK- Singapore- Malaysia
Combined Defense Council on 14 December.
As an interim measure, Singapore now is plan-
C~
ning to begin trade with Indonesia by means of two
large vessels anchored in international waters. Rahman,
who is personally committed against Lee's intention
to use a Singapore island site for the trade, may ac-
quiesce: in- such,a face ~- saving arrangement. In any
event only a low volume of trade would resialt.-
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Rhodesia: [Most African countries appear to be
having second thoughts about the wisdom of breaking
diplomatically with Britain if London has not "crushed"
the Smith government by 15 December.
COnly Tanzania's Nyerere is publicly committed
to sever relations by 15 December in accordance with
lasteekend's OAU resolution. Ghana's Nkrumah also
may break relations to demonstrate his leadership of
the African activists. Although action by these two
could have a bandwagon effect, most African states do
not want to break with the UK. They view such a move
as either harmful to themselves or ineffective, or both
[In order to postpone action, many African states
probably will seize upon Zambian President Kaunda's
public statement yesterday that such a move would
cause difficulties)
1ondon is not seriously alarmed by the OAU
threw , but plans to encourage the African states to
have "second and wiser thoughts. " British approaches,
to include personal messages from Prime Minister
Wilson, will stress that a break in relations would only
make a solution of the Rhodesian problem more diffi-
cult
LMost African states still appear willing to leave
primary responsibility with Britain and Zambia and to
give them additional time. Although some states have
indicated they would send troops if asked, they recog-
nize both their lack of military capabilities and Zambia's
stated preference, for British troops.]
The British continue to discuss the question of UK
ground troops with the Zambians. UK officials are
doubtful that anything will happen because they will not
permit their troops to cross into Rhodesia-'
(continued)
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[London is considering alternative schemes for
ensuring the security of the power supply from the
Kariba station to Zambia. One possibility would be
to request the International. Bank for Reconstruction
and Development, which financed the construction of
the station, to exercise its right of inspection to guaran-
tee security of the dam. Another possibility would in-
volve the stationing of a contingent of Australian and
Canadian troops. The British recognize the great dif- 25
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ficulty of obtaining agreement to such proposals, es-
pecially from Rhodesia.
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Communist China: Peking's trade with the Free
World in 1965 will probably reach a record level of
about $2. 5 billion--some 25 percent above 1964.
Since 1961 Peking's trade has shifted drastically
away from Communist countries so that less than one
third of its total trade now is with those countries.
This proportion may decline further in 1966 because
of China's continuing need for large grain and fertilizer
imports from non-Communist suppliers and because
of the regime's desire to obtain Western industrial
and technical equipment.
The increase in Chinese trade with Japan is es-
pecially striking. Trade between the two is up 45 per-
cent over 1964 and is expecteGd~a~ reach $450 million
this year. Japan would thus,~suppnant the USSR as
China's leading trade partner. China imports mainly
industrial goods from Japan and exports agricultural
products, coal, and iron ore.
Peking's net trade earnings this year with Hong
Kong will probably amount to about $400 million--20
percent above 1964. Hong Kong is China's leading
source of foreign exchange.
The Chinese are also seeking more trade with
Western Europe. Top-ranking Chinese officials visited
the recent French industrial fair in Peking, the biggest
Western trade exhibition held to date in China. China
now is purchasing merchant ships, aircraft, industrial
equipme t and complete industrial plants in Western
Europe.
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NOTE
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USSR-US: In a recent conversation with a high-
level Soviet .Defense Ministry official, US service
attaches in Moscow gained the impression that Soviet
displeasure over publication of the Penkovsky papers
is on the wane. Travel restrictions have been im-
posed on all US attaches since 18 November in re-
taliation for publication of the papers, which the Soviet
official described as a "defamation" of Soviet marshals.
The Soviet official's approach to the incident provides
another indication that, while surface manifestations
of the freeze in Soviet-US relations are likely to con-
tinue, the Soviets do not wish to make them so pro-
vocative as to cause relations to fall into complete
disrepair. 25
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THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Assistant Secretary of Defense (International Security Affairs)
The Assistant Secretary of Defense
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
Commander in Chief, Atlantic
The Director, Defense Intelligence Agency
The Director, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
National Aeronautics and Space Administration
The Administrator
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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