CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A011100010001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 14, 2016
• Document Release Date: April 7, 2003
• Sequence Number: 1
• Publication Date: April 29, 1968
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
STATE review(s) completed.
Secret
31-
29 April 1968
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This is a new Secret daily publication, the Central
Intelligence Bulletin. It replaces the Current Intelligence
Digest, which no longer is being published.
The new publication is prepared in consultation with
the Departments of State and Defense. It should provide the
readership with more timely treatment of relevant intelli-
gence than its predecessor.
Any comments on the new daily will be welcomed at
the Office of Current Intelligence, Central Intelligence
Agency.
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No. 0142/68
29 April 1968
Centrai intelligence Bulletin
Vietnam: Situation report. (Page 1)
Thailand: The government has suffered another
sharp setback in the north. (Page-3)
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Mexico: Rioting students seek to oust state gov-
ernor. (Page-8)
Guatemala: Dissatisfaction with the regime is
growing among junior officers. (Page 9)
Venezuela: President Leoni's release of political
prisoners may pose problems for his administration.
(Page 10)
Chile: Development of economic policy continues to
meet difficulties. (Page 1.1)
Belgium: No government (Page 12)
Bermuda: Riots (Page 12)
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[South Vietnam: Allied operations in several
parts of the country may be frustrating, at least
temporarily, any Communistplans for early offensive
action.
Intensive allied patrolling around Saigon, part
of the heavy security screen in response to reports
of a possible new enemy drive on the capital, resulted
in several small-scale skirmishes over the weekend.
Although it is possible that these reflect contact
with enemy units attempting to infiltrate in small
bands, there is little evidence of any advanced en-
emy preparations for a major assault.
Fighting in the northern provinces is at its
highest level in three weeks, largely as a result of
allied initiatives against enemy regular forces and
their base areas. Although large Communist units are
in most cases still maneuvering to avoid battle, sev-
eral sharp encounters were reported along the Route
547 approach to the A shau Valley and near Hue, where
the enemy appears reluctant to give ground. Enemy
shelling of allied positions south of the Demilitar-
ized Zone picked up over the weekend.
Reports persist, particularly in the northern
provinces,.that the Communists are preparing for a
major offensive during May and June. A prisoner cap-
tured last week in southern I Corps claimed that an-
other regiment was being formed there by the consol-
idation of local force battalions. Similar mergers
were noted in this area prior to Tet.
More personnel apparently involved in the cur-
rent large-scale North Vietnamese infiltration effort
have been picked up in South Vietnam.
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Thailand: Area of Insurgent Activity
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[Thailand: The government has suffered another
sharp setback in north Thailand.
Tribal insurgents recently overran a border se
curity post in Chiang Rai Province, possibly killing
as many as 15 defenders. They also captured weapons,
communications equipment, and security-related docu-
ments. The attack may prove to be the most success-
ful the Communist insurgents have mounted in Thailand
to date.
Although possibly only an isolated incident, the
attack may represent an expansion of activity from
adjacent Nan Province, which has been the center of
insurgent activity over the past several months. It
provides further evidence that the tribal insurgents
are well led and highly motivated.
The government's reaction to the attack has been
relatively circumspect thus far. Although air strikes
have been targeted against suspected insurgent loca-
tions, the Thais are apparently reluctant, on the
basis of recent experience, to commit ground troops
into the rugged mountains.
In Bangkok, Thai strongman General Praphat has
referred to "drastic action" to counter the threat
in the north, but so far there is no indication that
the leadership is backing off from the decision it
made last month to de-emphasize the purely military
aspects of the counterinsurgency effort. The army,
for example, is moving ahead with plans to recruit
a tribal security force, one of the steps proposed
as a longer range solution to the security situa-
tion in the north.
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Mexico: Rioting students in the state of Tab-
asco have made their goal the ouster of Governor
Manuel Mora.
Federal troops occupied the center of the cap-
ital city, Villahermosa, on 26 April. Students con-
trolling radio stations were demanding Mora's res-
ignation and seeking to bring in support from neigh-
boring towns. The student demonstrations, which have
resulted in one death, were initially directed against
a normal school director who has new resigned.
Governor Mora has had continual difficulties with
Tabascan students and other groups since he took of-
fice in 1965. Mora partisans have blamed the state's
political turmoil on subversion by Carlos Madrazo,
former governor and ousted chairman of Mexico's rul-
ing party.
The anti-Mora campaign is the first student ef-
fort to bring down a state governor in some time.
In 1966, the governor of Durango was forced out of
office, but that same year massive :Federal support
for the governor of Michoacan prevented a student
victory in that state. The current student uproar
in Tabasco may inspire agitators to try spreading
such activity to other restive areas in Mexico.
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Guatemala: Dissatisfaction with the regime
is growing among junior army officers.
These officers are reported to be concerned
over the government's apparent unwillingness to
continue active anti-Communist counterinsurgency
programs. Since the dismissal of three ranking
officers on 28 March, there has been confusion
regarding the counterinsurgency policy.
Morale within the military is reported to be
low and many officers have voiced a lack of confi-
dence in the new defense minister. High ranking
officers are aware of the present discontent and
they fear that precipitate action by their juniors
could split the military establishment.
Some ranking officers and rightist civilians
have expressed doubt that anti-Communist efforts
will be effective without resumption of the use of
clandestine military-civilian units--whose terror-
ist actions ultimately caused the military dismis-
sals of 28 March. At the time of the dismissals,
many officers appeared willing to give the Presi-
dent the benefit of the doubt. Nevertheless, they
are probably willing to join in action--possibly
even a coup--if they believe that Mendez is seek-
ing an accommodation with the Communists.
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Venezuela: President Leoni's release of 84 po-
litical prisoners may pose problems for his admin-
istration.
One of the most important factors in the decline
of the Communist movement in Venezuela in the past
few years has been the imprisonment of its experienced
leaders. The release now of several prominent Com-
munists, some formerly associated with the guerrilla
movement, is obviously designed to bolster the demo-
cratic image of the government prior to the presi-
dential election in December. It will also strengthen
the Communist Party and the several guerrilla groups
now active in eastern and western Venezuela. The gov-
ernment is expected to announce a further amnesty this
week, possibly including Communist I?arty chieftain
Gustavo Machado.
The US Embassy believes that the Leoni government's
current policy toward extremists is not likely to con-
tribute to increased confidence between the strongly
anti-Communist milita and the government. F__ I 25X1
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0'r OF
Chile: President Frei continues to try to de-
velop an economic policy that will permit development
investment without a large inflationary budget def-
icit.
The government's latest move was to ask the US-
based copper companies for a "voluntary" loan to help
finance the anticipated deficit. The companies re-
fused, preferring a forced loan on corporate revenues
that would include Chilean firms. The government
made this approach as part of a deal with the con-
servative National Party to ensure its support for
the controversial wage.adjustment bill now before
congress.
One source of pressure on the budget is the gov-
ernment's decision to increase military pay without
waiting for congressional approval. The US Embassy
attributes this decision to the rising number of Com-
munist-inspired strikes and the effectiveness of
antigovernment propaganda on underpaid junior offi-
cers.
If the wage adjustment bill now before congress
provides compensation for the 1967 cost-of-living in-
crease entirely in cash, the government will have to
transfer expenditures from investment to current op-
perating costs or incur an increased budget deficit.
As a result, Frei will have trouble carrying out his
promised stabilization and t programs.
F
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Belgium: No early solution to the political
crisis is in prospect. In a pessimistic appraisal of
the situation, caretaker Prime Minister Vanden Boey-
ants told Ambassador Knight that the only feasible
formula for Belgium in this period of linguistic ten-
sions is a coalition of the three major parties--his
Social Christians, the Socialists, and the Liberals.
Socialist leader Leo Collard, who for the past week
has been trying to put together a postelection cabi-
net, apparently is still searching for a compromise
on linguistic issues that would be acceptable to both
the Flemish and French-speaking wins of the deeply
divided Social Christians.
Bermuda: The island's lucrative tourist indus-
try--as well as the campaign for general elections
to be held on 23 May--could be upset if the rioting
that broke out over the weekend is resumed. Exten-
sive burning and looting by Negro gangs forced the
government to declare a state of emergency and mobi-
lize the 300-man militia to reinforce Hamilton's
hard-pressed riot police. A British frigate with a
contingent of marines has been sent to the area, and
a company of infantry has been airlifted from England.
The disorders seem to have been predominantly racial,
but with political overtones. Preparations are well
under way for the coming elections in which the main
Negro opposition party expects to make gains at the
expense of the largely white governing party, F_
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