CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A013900030001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 14, 2016
• Document Release Date: April 25, 2003
• Sequence Number: 1
• Publication Date: June 6, 1969
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Dept. review completed
Secret
51-
6 June 1969
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No. 0135/69
6 June 1969
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
Okinawa: Leftist elements can be expected to ex-
p obi an incident involving an Okinawan legislator
and a US military policeman. (Page 3)
Brazil: Terrorism is a growing worry for the gov-
ernment. (Page 4)
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Argentina: Cabinet resignations (Page 6)
Chile: Leftist cooperation (Page 6)
Peru: Student opposition (Page 6)
UK: Trade union policy (Page 7)
Western Europe: Gold price (Page 7)
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I South Vietnam: Current Communist activity is
confined to sporadic ground attacks and occasional
shellings.
Reporting I I however, continues
to indicate that intensive planning for a "summer
offensive" is under way. The reported plans range
from a sustained campaign, with heavier attacks than
those conducted during the spring offensive of last
February and March? to a series of short but dra-
matic shellings like the mid-May action which caused
heavy allied casualties.
Many of the report that in their
military briefings the Communists are insisting on
spectacular action which will inflict extensive
damage. captured doc-
uments, indicate that the Viet Cong military Com-
manders are being told to set "realistic goals"
aimed at achieving a series of limited victories
over a prolonged period.
The number of reports emphasizing dramatic
results suggests that the enemy could be planning
a more ambitious offensive than has been undertaken
so far this year. The timing is not clear, but re-
ports from widely separated areas indicate that
attacks could start in early June.
Both Saigon and the Communists are moving to
strengthen their claims to political control at
the local level. On 3 June the Communists announced
the formation of their fourth urban "revolutionary
committee"--this one in Saigon. These committees
are the Communists' attempt to challenge South
Vietnamese Government authority at the local level
and have reportedly been organized extensively in
rural areas in the past year. The announcement of
such a local government prototype in the capital
city is-the most ambitious Communist claim to date. ]
(continued)
6 Jun 6 9 Central Intelligence Bulletin
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The South Vietnamese Government, alert to Viet
Cong exaggerations regarding political control, has
recently ordered its province chiefs to gerrymander
local village boundaries to increase the appearance
of its own control. An order has gone out from the
Ministry of Interior to incorporate a number of in-
secure hamlets and villages into adjacent ones that
have a more secure government administration. Al-
though some of these hamlets have been abandoned or
sparsely populated for years, about 2,000 of them
will be eliminated from the insecure category of the
Hamlet Evaluation System, resulting in an apparent
increase, in the statist.i-cs, in Saigon's control.
6 Jun 6 9 Central Intelligence Bulletin
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Okinawa: Leftist elements in both Okinawa and
Japan can be expected to exploit an incident involv-
ing a moderate Okinawan legislator and a US military
policeman.
The. chairman of the Okinawan Socialist Masses
Party, which is the principal pillar of the tri-
party coalition that backed Chief Executive Yara's
successful election campaign last November, was cut
slightly by a bayonet yesterday while participating
in an illal labor demonstration outside a US in-
stallation.
The legislator has been an advocate of a
close working relationship between the Ryukyuan
Government and the US military administration, and
his party has a close relationship to the moderate
Democratic Socialist Party in Japan. Japanese of-
ficials have already voiced .their c cern over the
incident to the US Embassy in Tok o.
The incident increases the possibility of a
general strike to protest against the presence of
B--52s on Okinawa. Chief Executive Yara has reported
.that there are already rumblings of such a strike
this.month or next. Last February, Yara success-
fully averted a strike against the bombers by claim-
ing that the B-52s would probably be removed f om
Okinawa by mid-year.
6 Jun 6 9 Central Intelligence Bulletin
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Brazil: Elrror?ism is a growing worry for the
governmen .
A11 members of Brazil's National Security Coun-
cil have received a letter from the "National Lib-
eration Front" (FLN) threatening to take "an eye
for an eye" in the name of the oppressed people of
Brazil. The letter claims that a revolutionary
court has already condemned to death all partici-
pants in the last security council meeting as well
as their children "to the third generation." The
composition and capabilities of the FLN are not
clear, nor is its relationship to other such groups.
It probably has the capacity to carry out at least
some of its threats.
Urban terrorism has become increasingly fre-
quent in Brazil, and there is little prospect that
security authorities will be able to apprehend
enough key terrorists to halt the incidents. Acts
such as the terrorist killing of a bank guard on 4
June and the recent escape of several professional
revolutionaries not only undermine public confidence
in the government's ability to maintain order, but
also stimulate frustration and discontent among the
security forces who the main prop of the Costa
e Silva government.
6 Jun 69 Central Intelligence Bulletin
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NOTES
Argentina: President Ongania plans to replace
some high officials. On 4 June, following three
weeks of labor and student unrest, the five-man cab-
inet and a number of lesser officials offered their
resignations to the President to permit him to re-
organize the administration,. Key military officers
have long urged Ongania to remove several officials
whom they considered ineffective or too extreme in
their rightist views. The officers' prime targets
have been the secretary of education and the interior
minister, who has also been criticized for his han-
dling of the recent demonstrations. The interior
minister, at least, will. probably be rent ar_P"~ ll
Chile: The break-away leftist Christian Demo-
crats who have formed the United Popular Action
Movement have begun discussions with the Communist
and Socialist parties on joint action in university,
student, labor, and campesino affairs. The three
groups agree that the US copper companies should be
nationalized at once. Although the groups did not
discuss running a joint presidential candidate next
year, their cooperation on other issues could be a
forerunner of further political act?inn,_
Peru: Student opposition to the Velasco gov-
ernment may be coordinated on a national scale in
the next few weeks,. once all the major universities
open for the new school year. The students are re-
acting to the university reform law promulgated last
February, which limits student influence in the uni-
versities and permits security forces to enter the
campuses. Some violence has already occurred, and
all of the student groups, including the Communist
and APRA youth, have some plans for opposing the
government An -d -he reform law when the Gr'rool year
6 Jun 69 Centres Intelligence Bulletin
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(continued)
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UK: The Trades Union Congress (TUC) voted
overwhelming y yesterday to reject the government's
plan for dealing with labor disputes in favor of
TUC's alternative plan. The lopsided antigovernment
vote will increase Prime Minister Wilson's difficul-
ties in finding a mutually agreeable way to curb
wildcat strikes. The trade unions are flatly opposed
to penal sanctions, but there is no indication that
Wilson is ready to drop them from the government's
bill. Wilson will meet with union leaders again,
next week to seek a solution to the problem?J
Western Europe: Free market prices of gold
have fallen to their lowest levels since December
1968. Yesterday the price of gold in London and
Zurich dropped to about $41 an ounce, roughly two
dollars below last week's price, while in Paris the
recent price of about $44 an ounce is approximately
three dollars below the price a week ago. Although
free market sales by South Africa last month were
moderate, rumors that Pretoria may have sold large
quantities appear to have induced speculators to
dispose of at least part of their holdings.
6 Jun 6 9 Central Intelligence Builetin 7
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