CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A009300110001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 14, 2016
• Document Release Date: March 20, 2003
• Sequence Number: 1
• Publication Date: October 18, 1966
• Content Type: REPORT

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TOP SECRET 18 October 1966
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CENTRAL
INTELLIGENCE
BULLETIN
CURRENT INTELLIGENCE
RFLATING TO NATIONAL SECURITY
STATE review(s) completed.
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GROUP 1
EXCLUDED FROM AUTOMATIC DOWNGRADING TOP SECRET
ANO DECLASSIFICATION
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18 October 1966
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
1. Vietnam: Current situation report. (Page 1)
2. France: Shift in position improves outlook for
Kennedy Round settlement. (Page 2)
3. Dominican Republic: Balaguer's moves could
lead to strong leftist reaction. (Page 3)
5. Note: Belgium-Congo. (Page 5)
Npprovea ror
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'Savannakhet
NORTH.DOng Hot
'~ VIETNAM
2 r LIEv IRCA TION LINE
S.
/" Kontum?
SOUTH VIETNAM
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CENTRAL INTELLIGENCE BULLETIN
18 October 19 66
*Vietnam: (Information as of 4:30 AM EDT)
Political Developments in South Vietnam: Southern
political elements in the cabinet are continuing to apply
pressure on Premier Ky before the Manila Conference
in the hope of extracting major concessions.
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In a letter to Premier Ky on 16 October, economy
minister Au Truong Thanh submitted his resignation and
asked that his name be withdrawn from the government's
official delegation to Manila if a solution to the cabinet
crisis is not found before the conference date. Thanh,
who heads one of the more important ministries, has thus
joined six other southern oriented ministers who prof-.
fered their resignations earlier this month and again on
17 October.
Last week, Premier Ky apparently thought he had ob-
tained an agreement from the six not to take any further
action until after the Manila Conference, but Thanh's let-
ter and their latest resignations now may force a showdown
before 24 October.
25X1 Premier Ky was prepared to
accept a resign a ministers after the confer-
Premier Ky. out of the government.
lice Director Loan, a northerner and a close friend of
Southerners appear determined to force National Po-
ence rather than censure or replace General Loan. Ky's
response to the latest development, however, is not yet
clear.
The Military Situation in South Vietnam: There have
been no reports of any significant military developments
during the past 24 hours.
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France: A recent shift in the French position has
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improved the outlook for a meaningful Kennedy Round
settlement.
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According to French officials, France does not in-
O
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eneva
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tend to place obstacles in the way o
and tariff negotiations "as long as reciprocity is ob-
served. " The US Embassy in Paris notes that the
French no longer are concentrating on foot dragging,
but are focusing on the modernization of their economy
and on adaptation to the world-wide reduction of trade
barriers.
The French are giving more favorable considera-
tion to an international arrangement on grains that
would minimize increases in world cereal prices and
make provision for food aid. The embassy believes
that on industrial tariff cuts, it is now official policy
to accept the principle of general 50-percent reduc-
tions, subject to major qualifications.
The French position, however, does not rule out
considerable hard bargaining, especially in specific
industries such as chemicals, steel, and aluminum.
Moreover, the embassy cautions that the present
favorable polic may not last beyond the March 1967
elections.
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Dominican Republic: Some of President Balaguer's
recent political actions and proposals could lead to a
strong leftist reaction.
The government has issued a call for the partial
disarming of former rebel military personnel now "in-
tegrated" into the military and stationed as a unit on
the outskirts of Santo Domingo. Communist and non-
Communist leftists quickly voiced alarm over the order
viewing it as the latest measure aimed at harassing and
eventually eliminating the "Constitutionalist" military.
The former rebels, partly at the urging of Juan Bosch,
have said they will not surrender their arms.
The President is reported to be considering an-
other decree that would dissolve the leftist Santo Do-
mingo port workers union, which Balaguer feels has
contributed to "chaotic and, anarchistic" conditions on
the docks. The longshoremen have a tradition of mil-
itancy and are likely to resist.
Capping these measures, Balaguer on 14 October
removed Interior Minister Castillo from his sensitive
job without explanation, replacing him with Tbmas
Alcibiades Es * osa. Espinosa
rpgime. Espinosa is regarded as anathema by the left.
A dangerous situation could develop if the left in-
I ight-wing politician wno Iect flie abor'tive
November TT attempt against the Garcia Godoy
terprets these moves as an indication that Balaguer
intends to erode its strength.
18 Oct 66
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NOTE
Belgium- Congo: Crucial negotiations are about
to open between the Congolese Government and Union
Miniere, the mining complex in Katanga. Union
Miniere expects President Mobutu to take a tough line,
at least initially, and demand conditions which would
make the company's operations uneconomical. Com-
pany management is divided as to whether, if the de-
mands are held to, Union Miniere should write off its
Congo investment. Should it do so, other Belgian in-
vestors would be discouraged and the Belgian Govern-
ment would be under pressure to disen a e.
18 Oct 66
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