CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A013800010001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 15, 2016
• Document Release Date: January 23, 2004
• Sequence Number: 1
• Publication Date: May 21, 1969
• Content Type: REPORT

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Secret
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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Department review completed
Secret
0
21 May 1969
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No. 0121/69
21 May 1969
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
Mala sia: The new emergency cabinet will play little
more t an an advisory role to the Malay-dominated
Operations Council. (Page 2)
Peru: The suspension of US military sales may stim-
ulate Peruvian efforts to get military equipment
from Europe. (Page 3)
Chile: Violence may erupt again today. (Page 4)
Urugua : President Pacheco is embroiled in another
battle-with congress. (Page 5)
Western Europe: Interest is developing in more ef-
feectiv e regional organization of political and eco-
nomic groups. (Page 6)
Tub: Showdown over political rights (Page 8)
Chile: Wage demands (Page 8)
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SOUTH VIETNAM
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C South Vietnam: The Communists are continuing
to conduct groun probes in the northern provinces.
US Marine positions in Quang Tri Province and
South Vietnamese field positions in Quang Nam Prov-
ince were attacked by battalion-sized enemy units
on 19-20 May. In other areas, Communist units are
offering limited but stiff opposition to allied
operations. South Korean troops report enemy re-
sistance in Ninh Thuan Province, and US forces
killed more than 100 Communists in brief fighting
in Binh Duong Province. The Communists abandoned
their stubborn defense of the hilltop position in
the A Shau Valley on 20 May after losing more than
400 men.
Light shellings and sapper attacks are con-
tinuing throughout the country. On the night of
19-20 May, air facilities at Quang Tri city, Da
Nang, and Chu Lai were shelled, t damage was
minimal. F7 I
21 May 69 Central Intelligence Bulletin
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Malaysia: The emergency cabinet announced yes-
terda will play little more than an advisory role
to the Malay-dominated Operations Council, which
has assumed all governmental power in the emergency.
The Malays' determination to direct matters is
evident in the assignment of all portfolios to Malays
except for two given to representatives of the Malay-
sian Indian Congress. Four members of the Malaysian
Chinese Association, two of whom previously held
cabinet posts, were also appointed to the new cab-
inet but their "special functions" were not identi-
fied.
As tensions ease, the curfews in effect in Kuala
Lumpur and other areas are being selectively relaxed
and lifted. The official count of 152 killed in the
week-long rioting appears to be running far behind
the actual number of deaths.
In neighboring Singapore, security forces have
been put on alert after scattered violence between
Chinese and Malays there. Thus far the trouble seems
to be largely between criminal elements, but racial
violence similar to that in Malaysia could easil
flare up in Singapore.
21 May 69 Central Intelligence Bulletin
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Peru: The suspension of US military sales, made
public last week,is viewed by many Peruvians as a
hostile action. It may give added impetus to the
government's efforts to obtain more military equip-
ment from Europe.
Foreign Minister Mercado has told the US ambas-
sador that the immediate reaction among government
officials was to question the usefulness of contin-
uing the US military missions in Peru. When told,
however, that military grant aid was not involved,
he implied that the missions would not be affected.
The Lima press sees the suspension as related
to the lack of progress in the negotiations on the
expropriation of the International Petroleum Com-
pany. One respected columnist stated that Washing-
ton realized that the recent seizures of US fishing
vessels are "routine incidents" and that the sus-
pension "is part of a US escalation... that can cul-
minate in application of the Hickenlooper Amendment."
The columnist adds that Ambassador Jones' resigna-
tion could be a prelude to a rupture of US-Peruvian
relations.
There has been considerable sentiment in Peru-
vian military circles in favor of replacing US mil-
itary aid with additional French or other European
assistance. A high-level Peruvian military team is
now visiting France and other European countries in
order to learn what variety and quality of armaments
are available.
21 May 69
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Chile: Violence may erupt again today before
or during President Frei's state of the union ad-
dress.
The violence began last week when secondary
school students, later joined by others, protested
the detention without bail for ten months of some
factory workers accused of arson. These men have
since been released on bail and their relatives,
who had been conducting a hunger strike in front
of the congress, have dispersed. The situation
remains tense, however. Some students are still
occupying university buildings and the student fed-
eration is protesting police violation of university
autonomy.
The incidents, which have included the use of
molotov cocktails against police vehicles, appar-
ently have been instigated by the Socialists and
the Movement of the Revolutionary Left. The So-
cialists have announced that in protest against the
"permanent persecution" of Socialist members of
parliament they will not send-any representatives
to hear Frei's speech.
The Socialists' espousal of violence has put
Chile's Communists in a difficult position. They
want to maintain friendly relations with the So-
cialists, but prefer the "respectable Marxist pos-
ture" of the Radicals and break-away members of the
Christian Democratic Party. Some Communists ex-
pressed disapproval of the attack by extremists on
the congress building last week, while others have
identified themselves with the students, who have
been in the forefront of the violence.
The carabineros, who have been responsible for
controlling the demonstrations, have been restrained
in their responses by the personal control of the
minister of the interior. They are chafing under
these restrictions, however, and if violence today
threatens to get out of hand. reaction could
be tougher.
21 May 69
Central Intelligence Bulletin 4
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Uruguay: President Pacheco is embroiled in an-
other battle with congress.
Powerful factions within his own party as well
as among the opposition have never approved of the
austerity programs he has been forced to adopt to
halt economic decline. The programs have met with
some success, however, and Pacheco is determined to
press ahead with them.
The current controversy involves new government
regulations for the state-owned slaughterhouse that
would eliminate both the privileged position of the
slaughterhouse and certain fringe benefits tradi-
tionally enjoyed by workers at the larger meatpack-
ing plants. The senate is now questioning the re-
sponsible cabinet ministers about the arrangements,
and the anti-Pacheco forces probably have enough
votes to censure them.
Pacheco has let it be known that he will dis-
solve congress and call for elections if his minis-
ters are formally censured. This warning may en-
courage the senators to avoid a showdown, as they
have in the past. The battle lines have rarely been
more sharply delineated however, and the outcome
remains in doubt.
21 May 69 Central Intelligence Bulletin 5
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Western Europe: A recent meeting in the
Netherlands to discuss the formation of a European
political party is evidence of the developing in-
terest in more effective organization of political
and economic groups on a European regional basis.
According to a communique issued by Labor Party
headquarters in Amsterdam, approximately 30 "demo-
cratic socialist and other leftist" politicians from
the Common Market Six and Britain met from 9 to 11
May to discuss the establishment of a European po-
litical party. The meeting was said to have been
held as the result of a 1968 initiative by Dutch
Labor Party MP H. Vredeling and several members of
West Germany's Social Democratic Party.
Those attending the meeting agreed to act as
a preparatory committee for the establishment of a
European party; they appointed a working group of
three to prepare a conference to be held in October.
The working group is to report on such agenda items
as the organization of "progressive forces" with a
view to establishing a European party, a program of
priorities for such a party, and European problems
that seem to require multinational solutions.
While the recent meeting appears to have been
exploratory, it represents, so far as is known, the
first serious discussion in recent years of the need
of the integration movement for a supranational
partisan base. In a statement to the press, Vredeling
referred to recent public discussion of the increas-
ing number of "European" issues that seem to require
"political action"--e.g., direct election of the
European Parliament, enlargement of the European
Communities, and suspension of Greece from the
Council of Europe.
There have been signs lately of a similar
movement toward "Europeanization" in the trade
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unions. In late April, the confederation to which
the ICFTU-affiliated trade unions of the Six belong
strengthened its own organization and invited the
World Confederation of Labor (WCL) to forge closer
ties with it. The WCL, meeting in early May, ac-
cepted the invitation and at the same time'took
steps to strengthen its own or anizatio al truc-
ture.
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Turkey: A showdown over the issue of restoring
political rights to former political prisoners has
been postponed. The full senate met as scheduled
in mid-afternoon yesterday, with the crucial item
last on the agenda, but later adjourned for lack of
a quorum before the item could be discussed. It is
uncertain whether the senate will meet today, but
until the issue is resolved or abandoned the po-
litical situation will remain unsettled.
Chile: The Chilean Workers' Central plans to
fight for a wage increase effective in July to com-
pensate for price rises that have occurred so far
this year. Communist congressmen plan to introduce
similar legislation when congress opens this week,
and the central will probably coordinate its cam-
paign with these congressional moves. A wage in-
crease in July would run counter to the anti-infla-
tion program that President Frei reportedly plans
to present in his state of the union speech to con-
gress today.
21 May 69 Central Intelligence Bulletin
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