CENTRAL INTELLIGENCE BULLETIN
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP79T00975A015400070001-3
Release Decision:
RIPPUB
Original Classification:
T
Document Page Count:
11
Document Creation Date:
December 14, 2016
Document Release Date:
December 26, 2002
Sequence Number:
1
Case Number:
Publication Date:
January 22, 1970
Content Type:
REPORT
File:
Attachment | Size |
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CIA-RDP79T00975A015400070001-3.pdf | 236.08 KB |
Body:
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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
50
22 January 1970
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Approved For Release 2003/(IATRDP79T00975A015400070001-3
No. 0019/70
22 January 1970
Central Intelligence Bulletin
CONTENTS
Burma: Army control over Shan State could be weak-
ened by non-Communist military opposition. (Page 1)
Hungary: The government plans to extend its curbs
on the arbitrary powers of the Interior Ministry.
(Page 4)
Italy: The 1969 balance-of-payments deficit is the
largest in well over a decade. (Page 5)
East Germany - West'Germany: Berlin harassment
(Page 7)
Latin America: Law of the sea (Page 7)
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Burma: Government Faces Increased Insurgency in Shan State
Recent Incidents of
Shan Terrorism
STAT'_:'
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Burma: The Burmese Army's control of a state
bordering China could be further weakened by in-
creased non-Communist military opposition there.
The Burmese Army bought. off large elements of
the non-Communist, but generally hostile, Shans two
years ago by equipping them as militia units. These
units total about 12,000 men. Some units have be-
come increasingly upset over Burmese detention since
last October of one of their leaders. His followers,
who number perhaps 3,000 men, sent an "ultimatum" to
Burmese military authorities on 10 January demanding
his immediate release. Discontent has already
brought a flurry of terrorism to Shan State.
The need to watch this Shan threat may seriously
impede the Burmese Army's dry season efforts against
Chinese Communist - supported insurgents in northern
Shan State. Although the loyalty of some of the
Shan militia has long been doubtful, the Burmese
military has relied on some units in activity against
the Communists. If the army is forced to assume the
added burden of dealing with a large increase in Shan
opposition, its position in large portions of the
state could become precarious
(Map)
22 Jan 70 Central Intelligence Bulletin
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Hungary: The government plans to extend its
curbs on the arbitrary powers of the Ministry of In-
terior.
The ministry's chief, Andras Benkei, writing
in the January is-sue of the party central committee
journal Partelet, announced his intention to codify
the legal tasks as well as the legal limits of the
ministry's activities. The new code would eliminate
obsolete functions that date from the Stalinist era
and relinquish certain administrative tasks to other
government agencies. Benkei said that the new re-
strictions would no longer permit interference in
political, cultural, and economic matters unless crim-
inal activity is suspected.
Benkei's announcement follows a central commit-
tee review of ministry activities last November. It
demonstrates adherence to the political reform pro-
posals advanced last March.
If implemented fully, the new code would further
lessen secret police control over the average citi-
zen's activities and improve the government's rela-
tions with the population. With the Czechoslovak
example in mind, the party will be careful not to
incur Soviet wrath by stripping the ministry of its
powers to control unauthorized political activity.
The party might encounter difficulties in seeing that
ministry employees who disapprove of the restrictions
comply with the spirit of the reform.
Central Intelligence Bulletin
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Y ,4 billion is the largest in well over a decade,
but the country's net official reserves remain very
strong.
The deficit, which sharply contrasts with a $627
million surplus in 1968, is due entirely to capital
,outflow. This has continued unabated for five years
and reached a record high estimated at $4 billion
last year. Soaring interest rates abroad and inter-
national currency speculation as well as continuing
domestic political uncertainty and labor unrest were
the major reasons for the surge.
Official efforts to stem the outflow of capital,
such as increasing the discount rate and allowing
interest rates on bond and commercial bank loans to
rise, apparently had little effect in 1969. The full
impact of many of these measures, however, will be
felt in 1970 and might ease the problem. Neverthe-
less, the lack of investment opportunities at home,
current tax laws, and the unsettled political situa-
tion will ensure a continued net outflow.
22 Jan 70 Central Intelligence Bulletin
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NOTES
East Germany - West Germany: The East Germans,
apparently acting with Soviet support, have demon-
strated their displeasure, as they have in the past,
over the meetings in West Berlin of West German par-
liamentary committees and party groups. The meetings
were scheduled to begin today. Pankow intermittently
closed the autobahn to West Germans yesterday, but
did not harass Allied travelers. This action does
not signify a crisis, but further disruption of West
German traffic may occur when Chancellor Brandt vis-
its the city this weekend. In a low-key statement
delivered on Tuesday, the Soviets for the second time
expressed their own displeasure over these meetings
and said that Soviet - West German relations could
be affected. For their part, the West Germans are
not likely to back down at this late date.
Latin America: Chile, Ecuador, and Peru are
opposed to the US-Soviet proposals on the extent of
territorial waters and fishing rights in adjacent
areas.
Chile, Ecuador, and Peru, which have long
advocated a 200-mile limit, want the other Latin
American nations to express a unified position on
the issue and desire more study on differing view-
points before a law of the sea conference is con-
yoked.
Central Intelligence Bulletin
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