CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A011500010001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 20
• Document Creation Date: December 14, 2016
• Document Release Date: April 7, 2003
• Sequence Number: 1
• Publication Date: June 20, 1968
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
STATE review(s) completed.
Secret
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No. 0187/68
20 June 1968
Central Intelligence Bulletin
CONTENTS
'South Vietnam: Situation report. (Page 1)
Berlin: Bonn is steering a cautious course. (Page 3)
USSR: Moscow puts high price on improving rela-
tions with the US. (Page 5)
Finland: Helsinki is under growing pressure to
change its policy on Germany. (Page 7)
Yugoslavia - West Germany: Belgrade gratified by
Foreign Minister Brandt's visit. (Page 9)
Japan: Government party leaders reaffirm reliance
on security treaty with the US. (Page 10)
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Brazil: Student demonstrators in latest clash with
police appear well organized. (Page 12)
'Israel - Arab States: Postwar casualty list (Page 13)
Turkey-USSR: Aircraft sales (Page 13)
Chile: By-election (Page 14)
Cuba: European students (Page 14)
Haiti-Bahamas: Exile activity (Page 15)
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[South Vietnam: The shelling of Saigon remained
light in the face of Communist threats of continuous
bombardment for 100 days, but it picked up in the
northern provinces.
Allied bases along the Demilitarized Zone as
well as Quang Tri city all came under heavy mortar
attack on 18-19 June, and elements of the North Viet-
namese 308th Division attacked US Marine positions
south of Khe Sanh for the second time in four days.
The action lasted more than ten hours and Communist
losses were heavy.
The press is reporting rumors that Prime Min-
ister Huong is threatening to resign unless a con-
troversy that has risen over the appointment of
Saigon Mayor Nhieu is resolved. The US Embassy
does not believe that Huong is upset enough over
this issue to resign.
Vice President Ky told a Western diplomat on
18 June that he was deeply concerned about South
Vietnam's political weakness and factionalism.
These were, he said, Hanoi's primary target. He
reiterated his television statement of the previous
evening that he was opposed to any coup attempt,
but he implied that he had strong reservations
about the intentions and effectiveness of President
Thieu and Prime Minister Huong. He indicated that
he felt neither man was giving the country the lead-
ership it needed and that both were more sensitive
to US wishes than to the needs of the Vietnamese
people.
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WEST GERMAN SURFACE ACCESS ROUTES TO BERLIN
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I Berlin: Bonn is still steering a cautious
course on the access question.
The state secretary of the Foreign Office in
Bonn has confirmed that the government does not
wish to take countermeasures in interzonal trade
now. Bonn's stand appears to rest in part on the
argument that Berlin benefits substantially from
this trade and that any cutoff would be a blow
against the economy of the city. Bonn apparently
also wishes to avoid giving the East Germans any
excuse for a further tightening of access controls.
The proposal of the Allies and West Germany
to restrict East German travel to NATO countries
has been submitted to the other members of the al-
liance. The West German Foreign Office reports
that Chancellor Kiesinger will not go to Washing-
ton, London, and Paris but rather will make contact
through personal representatives. The Bundestag
is to discuss the access situation today, with
Kiesinger set to deliver a statement on the West
German position.
Two West Berlin journalists have been refused
visas by East German authorities since the regu-
lations were announced last week, although another
West Berlin journalist is known to have traveled
to and from Berlin via autobahn. The two denials
indicate that the visa requirement will be not only
an onerous and costly piece of red tape, but will
also be used to deny use of the autobahns to per-
sons whom the East Germans consider undesirable.
East German checkpoint personnel at Cumlosen
on the Elbe River began seizing goods permits from
West German barge captains on 18 June. While the
goods were allowed to proceed, the permits were
withheld because they referred to West Berlin
simply as Berlin and not as a separate political J
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[entity. This measure is probably a probe on the
part of the East Germans to determine what if any
counteraction Bonn might take if new requirements
were levied on documentation for goods transiting
interzonal water, as well as roads to Berlin. Last
week Interior Minister Dickel warned that East Ger-
many would not accept trade documentation which
identified West Berlin with West Germany.
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USSR: Moscow has published a detailed reply to
the President's recent statements which gives its
asking price for improving relations with the US.3
[In a major article entitled "Necessary Re-
minder," commentator Mayevsky in Pravda yesterday
said that if the US is genuinely interested in de-
veloping contacts with the USSR, it first must act
to solve outstanding problems, above all the US "ag-
gression" in Vietnam .3
,According to a Tass summary of the article,
other obstacles cited were US support for Israel,
"ideological subversions" and trade discrimination
against the USSR and its allies, and the further
militarization of the US and its allies in NATO
and "other military blocs." The article made only
routine reference to disarmament and did not mention
specific prospects on ABMs or strategic missile
limitations
[The article was the most explicit and author-
itative of the published Soviet comments on the
President's appeals for better US-Soviet relations.
It claimed that these appeals are indicative of
growing public sentiment in America which must be
reckoned with by those now in office and those run-
ning for office. It implied that the USSR would
respond favorably when the US shows that it is
really interested, but that by disregarding a solu-
tion to the above problems the US rendered "un-
realistic" the belief that Soviet-.American relations
could be improved
The Soviets continue to profess readiness to
"normalize" relations with capitalist states. At
the same time, Moscow has been at pains to put down
any suggestion of increased contacts with the US
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in light of the USSR's need to show itself :landing
firm with Hanoi and to parry Peking's pro aganda
thrusts at alleged US-Soviet "collusion.
Russia's determination to disparage the notion
of a warming trend in US-Soviet relations doubtless
is reinforced by the USSR's anxieties about the
effect of "ideological subversions" on intellectual
dissidence at home and in Eastern Europe. These
considerations are also evident in Soviet insistence
on cutting back on some elements in the US-Soviet
cultural exchanges agreement, now under negotiation
in Moscow. Soviet negotiators in Moscow are un-
yielding in their determination to trim exchanges
which involve large numbers of people--performing
arts groups, exhibits, and graduate student ex-
changes--while maintaining at previous levels the
less visible and, for Moscow, more desirable scien-
tific and technical exchanges.
They have done this in virtually all the pre-
vious negotiations since 1958, although the extent
of their desire to trim features of the agreement
wanted by the US may be greater now than heretofore.1
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Finland: [The German question has during recent
months become a domestic and foreign policy issue in
Finlanda
[in recent weeks, President Kekkonen has ex-
pressed annoyance over the growing pressures on his
government to reconsider its long-standing policy
of withholding diplomatic recognition from both East
and West Germany. Both have trade missions in Hel-
sinki
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Although the Soviet role in thes
e pressures
has been less obvious, Soviet officials apparently
are missing few opportunities to encourage the
Finns to adopt a policy of recognizing both Germanies
This pressure has had some effect on the large
Socia Democratic Party, for whom good relations
with Moscow are crucial. A party delegation to
Moscow in May subscribed to a communinique which
stated that the interests of peace would be served
if all European states recognized the two Germanies.
Party leaders, however, stated that they plan no
action on this matter, and Prime Minister Koivisto,
a Social Democrat, recently expressed support for
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the government's present policy., The Communist-front
SKDL and the fellow-traveling Social Democratic op-
position faction strongly support the East German
taus e ,zi
[A major obstacle to a change in Helsinki's
policy toward Germany is the attitude of Kekkonen.
He is the government. official ultimately responsible
under the Finnish constitution for the conduct of
foreign affairs. 7- 1
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Yugoslavia - West Germany: Belgrade has been
gratified by Foreign Minister Brandt's expression
of willingness to increase ties during his recent
visit.
Moreover, Tito welcomed Brandt's visit and
that of British Foreign Secretary Stewart for their
value in enhancing his prestige and his aspirations
for a larger role in international politics.
During the Brandt visit, the two countries
agreed to begin negotiations to abolish tourist
visas. Brandt continued to support Belgrade's
effort to secure a trade arrangement with the Com-
mon Market. He also expressed Bonn's willingness
to negotiate a new trade-and-payments agreement
with the Yugoslavs, which might help them in their
current economic difficulties. In addition he
said Bonn was ready to negotiate new agreements
on economic, scientific, technical, and cultural
exchange matters. In turn, Belgrade reportedly
stressed its special interest in Bonn's efforts
at rapprochement with Eastern Europe, particularly
on the basis of agreements renouncing the use of
force.
Little progress was made on the important
issue of war reparations. Both sides expressed
their attitudes toward these claims that arose
from World War II, but they apparently made no
attempt to reach a settlement. Similarly, the
issue of rights for Yugoslav guest workers in
West Germany were held in abeyance for future
negotiations.
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Japan: Government party leaders have reaffirmed
the nation's reliance on the security treaty with
the US despite widespread concern over the US mil-
itary presence.
In the face of determined opposition to con-
tinuing the present treaty beyond 1970 and the cur-
rent nationwide antibase mood, conservative leaders
have stressed their support for the treaty and
under-scored its security and economic advantages
for Japan. In a statement cleared by Prime Minister
Sato, Naka Funada, chairman of the ruling party's
national security committee, unequivocally called
for the treaty's "automatic extension" when it be-
comes subject to review in 19701
LFunada indicated that the statement
was designed to provide guidance for Liberal Demo-
cratic Party politicians in the current campaign
for upper house elections on 7 July. He apparently
fears that in the existing antibase climate some
conservative candidates might take a softer line
on the treaty than desired by the party leadership.
Nonetheless, clear expressions of support also
reflect the conservative leadership's confidence
that the opposition parties' trumpeting of the base
issue will not seriously affect Liberal Democratic
prospects in the election. At the same time the
government appears, for tactical political reasons-,
to be searching for some changes in base arrangements
in order to reduce the visibility of US forces in
Japan J
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[Brazil: Student demonstrators again tangled
with Rio de Janeiro police on 19 June and showed
considerably better organization than has been
evident in earlier clashes.
The demonstrators, some of whom were well past
student age, used rocks and clubs. They apparently
caught Guanabara state police unprepared for an
organized attack.
Irate police officials have declared that no
further disorders will be tolerated.
The demonstrators, however, reportedly led by
a minority radical group, are gearing up for demon-
strations today and on 21 June. Repressive measures
by police would be likely to set off renewed violence
in Rio and possibly other maior cities.
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NOTES
Israel - Arab States: Gast week Defense Minis-
ter Moshe Dayan told the Knesset that since the war
last June Israel had killed 381 Arab saboteurs and
71 Jordanian soldiers and had captured 1,824 Arab
"irregulars." During the same period, according to
Dayan, 108 Israeli soldiers and 20 Israeli civilians
were killed. While the Israelis obviously have had
the best of it in the postwar clashes, their casu-
alties nonetheless are high for a country with a
population of 2.6 million. By comparison about 700
Israelis were killed during the six-day war. Dayan
and other "hawks" probably hope these postwar sta-
tistics will buttress their case for punitive raids
across the cease-fire lines.? k
Turkey-USSR: Moscow is reportedly making a
determined effort to sell the Turks both civil and
military aircraft. The Soviets have quoted low
prices and have offered to accept repayment in ag-
ricultural commodities. Turkey's chief aircraft
test evaluator is now in the Soviet Union where he
will test fly two jet passenger aircraft, ride in
two recent model fighters, and receive briefings
on the planned Soviet supersonic transport and a
modified version of a twin jet airliner now in use.
The Turks probably would prefer US civil aircraft,
particularly if they could obtain them on roughly
similar terms. They are unlikel in any case-to
buy Sovijet let fighters.
(continued)
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Chile: A by-election will be held in Cautin
Province on 7 July to fill the congressional seat
vacated by the incumbent's death in May. Most po-
litical parties had opposed holding an election be-
cause the seat must be contested again in the gen-
eral congressional elections next March. The con-
servative National Party, which had held the seat,
precipitated an election by entering a candidate.
The leftist Social Democratic Party and the Chris-
tian Democrats then hurriedly entered their own can-
didates.
The Christian Democratic candidate, the best
known of the three, is expected to receive strong
support from the national organization. His defeat
would be a severe psychological blow to the govern-
ment and the Christian Democrats as they prepare for
the national election 25X1.
Cuba: The government reportedly is trying to
attract West European students to a summer of tourin
a ricultural work, and political indoctrination.II 25X1
stu-
en s rom Italy, France, an West Germany, who were
active in recent anti government demonstrations, will
be offered a trip with all expenses paid to see the
development of the Cuban revolution. Although the
Cubans have said nothing official, it appears that
this "international student brigade" will actually
function as Fidel Castro's answer to the pro-Soviet
World Youth Festival scheduled for this summer in
Sofia - Bulgaria,
(continued)
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Haiti-Bahamas: President Duvalier, still con-
cerned about Haitian exile activities in the Bahamas,
has placed a complete ban on travel from the Bahamas
to Haiti. Bahamian and Haitian officials plan to meet
on 8 July to discuss exile activities. They also will
try to reach an agreement that would stop the illegal
migration of Haitian laborers to the Bahamas and pro-
vide for the deportation of those laborers already there.
The mysterious detention of a Bahamanian Government
information officer by Haiti may complicate the talks.
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