CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A015800080001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 14, 2016
• Document Release Date: April 16, 2003
• Sequence Number: 1
• Publication Date: March 21, 1970
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
DIA and DOS review(s) completed.
DOS
conc
Secret
51
21 March. 1970
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No. 0069/70
21 March 1970
Central Intelligence Bulletin
CONTENTS
Laos: The military situation continues to deteriorate.
Page 1)
Cambodia: Sihanouk apparently has no intention of
bow ng out gracefully. (Page 2)
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Libya: The regime has taken special security precau-
tions to forestall a coup attempt. (Page 4)
Turkey: Martial law may soon be declared in Istanbul
anAnkara. (Page 5)
Nig~e_ria: The first stage of currency conversion is
under way. (Page 6)
Burundi: The government is facing a severe financial
crrisis (Page 7)
Honduras - El Salvador: An atmosphere of tension is
=ding within Honduras. (Page 8)
Surinam: A series of strikes has contributed to the
unsettled political situation. (Page 9)
Philippines: Government reorganization (Page 10)
Peru: Support for Velasco (Page 10)
The Netherlands: Provincial elections (Page 10)
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Bouam
Long*
Na
Khan
Muong P/:AINE Nong?P.
Snuff
ala
hou
Noun
JARRES
Houe?i
Ki Nin
Ban Na*
Xieng
Khouangville
Sarn Tha am Oov nment-reeinforcing
Thong* Bleung positions ti
San
Luan
-1.0 20 Miles
10 20 Kilometers
? Government held location
? Cornmunist-held location
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Laos: The government has moved additional re-
inforceents into Long Tieng, but the military sit-
uation continues to deteriorate.
North Vietnamese troops have pushed to within
one mile of the airstrip despite the deployment of
new government troops into the hills immediately
north of the base, Vang Pao now has some 800 troops
dug in around the headquarters complex, but with
enemy units closing in, there is a real danger of
the government losing its use of the airstrip.
In an attempt to block further enemy troop
movements into the northern approaches to Long Tieng,
Vang Pao is reinforcing positions immediately, s
21 Mar 70 Central Intelligence Bulletin
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Cambodia: Sihanouk apparently has no intention
of bow:Lng -out gracefully.
Sihanouk, denouncing the Lon Nol government's
recent actions as "unconstitutional," released a
statement in Peking on 20 March calling for a nation-
wide popular vote, to be administered by an "armed
contingent" of the :International Control Commission.
in an obvious appeal for foreign support, Sihanouk
argued that recognition of the Lon Nol government
would be an illegal act. He made no mention of a
clandestine return to the country or of the possible
use of force.
Sihanouk's unrealistic appeal for a referendum
will almost certainly fall on deaf ears in Phnom
Penh. The government already has passed the point
of no return in its relations with Sihanouk as
current campaign to discredit him indicates.
21 Mar 70 Central Intelligence Bulletin
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Libya: The regime has taken special security
precautions to forestall a possible coup attempt.
Ruling Chairman. Qaddafi's right-hand man, Major
Jaluud. made a sudden trip to Cairo on 11 March,
government's concern ov r a developing opposition is
the recent arrest of 160 persons in Cyrenaica for
antiregime plotting.
Additional troops, possibly Egyptian, have been
arriving since 9 March. Bringing in more Egyptians
will exacerbate antiregime sentiments, however, be-
cause these stem primarily from Libyan resentment
over the large number of Egyptians already in the
country. Resentment is strongest in Cyrenaica, where
there is considerable suspicion of Egyptian expan-
sionist designs. The introduction of more Egyptian
troops might also encourage the anti-Egyptian faction
bi
in the council, headed by Cyrenaican Governor Kharu
to remove Qaddafi.
Central Intelligence Bulletin 4
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Turke : Martial law may soon be declared in
Istanbul and Ankara in an attempt to curb continuing
student violence.
Senior Turkish authorities have decided to put
these two key cities under military control if the
students continue to cause trouble during the week-
end,
Another student mare in the current series is being
planned for today in Ankara.
There have been many incidents in at least five
cities during the past three weeks. To a considerable
degree extremists have taken over the student move-
ment, and political issues and anti-Americanism have
largely replaced valid academic grievances as reasons
for the student protest. The president of the Revo-
lutionary Youth Federation, which has sponsored the
youth forums and demonstrations, has been arrested
for distributing leaflets calling on the people and
the army to revolt. Several of these forums have led
to violent demonstrations or attacks on US property,
both private and public.
The current rash of student unrest appears to
be the most highly organized and widespread in several
years. Because student extremism has alienated many
of those who were previously sympathetic, stronger
police action at this time probably would receive
broad popular support.
Central Intelligence Bulletin 5
25) IA
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Nigeria: The first stage of currency conversion
is under way in the last redoubt of the former seces-
sionist regime, the East Central State.
The first stage involves collecting old Biafran
notes, which had been issued in large quantities in
the later stages of the war. According to press re-
ports, the Central Bank of Nigeria (CBN) has accepted
deposits of these notes with a face value of some 100
million pounds. This currency was grossly inflated
during the civil war. There has been no large-scale
exchange of currencies to date, and the rate of ex-
change has not been announced. Moreover, the govern-
ment is sensitive to the attitudes of politically
important elements who believe that too much is already
being done for the defeated secessionists.
The scarcity of an acceptable currency is a serious
impediment to recovery and reconstruction of the Biafran
enclave. The impending end of the circulation of the
Biafran currency has slowed the re-establishment of old
marketing and trade patterns. A substantial amount of
Nigerian money, however, is flowing into the East from
the relief effort, troop expenditures, government salary
advances, spending by private firms, and financial as-
i
s
stance provided by families in other parts of the
country. This provides considerable purchasing power
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Burundi: Criticism of President Micombero's
inaction in the face of a continuing financial crisis
is increasing.
A poor coffee crop resulted in a shortfall of
revenue in 1969. Government overspending, coupled
with large unpaid debts to the private sector and
IMF insistence on a balanced budget, now have forced
the government to make drastic cuts in some expend-
itures. A number of civil servants have been fired
and the salaries of 7,000 others have reportedly been
reduced.
These government employees, as well as the private
holders of, long-unpaid government debts, are predictably
dissatisfied with President Micombero's administration.
Some believe that a change of leadership would solve
their problems.
President Micombero's unwillingness or inability
to address himself directly to these problems is
apparently adding to public dissatisfaction. His
ability to maintain his position rests, however,
on whether the army, which has not been affected by
the financial squeeze, remains behind him.
21 Mar 70 Central Intelligence Bulletin 7
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Honduras - El Salvador: An atmosphere of ten-
sion is building within Honduras.
A significant segment of Honduran officialdom,
including government officials close to the Presi-
dent and in the foreign office, plus officers in the
General Staff, have persuaded themselves that the
Salvadorans are planning another invasion
]the news me did -Nave een
playing up the recent series of minor border clashes,
Honduran President
Lopez wants to continue in office despite constitu-
tional provisions forbidding a second term,, and he
may be trying to perpetuate the aura of crisis in
order to give himself an excuse to suspend the con-
stitution and postpone elections. Nevertheless, the
mood of fear and uncertainty and the sense of iso-
lation that is spreading among the people appears
to be genuine and could lead to public demonstra-
tions against Honduran enemies, imagined and real.
With congressional elections out of the way,
the Salvadorans have less incentive to keep tension
high, and they are now ready to resume negotiations.
The Honduran refusal to continue bilateral talks as
long as border incidents continue, however, may make
acceptance of OAS proposals for a demilitarized zone
a necessary first step.
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Surinam: A series of strikes has contributed
to the unsettled political situation.
For the past three weeks, labor unrest has af-
fected both the private and government sectors of
the economy and there is fear that it may spread.
One of the nation's major firms, the Surinam Alumi-
num Company, is faced with a plant shutdown within
the next seven to ten days because the strikes have
reduced the flow of supplies. Customs personnel
have been striking in protest over what they say are
unfair government demands for overtime. Government
mediators have had success in settling some of the
disputes, but union officials are clearly not sat-
is fi.edm
The labor unrest itself probably will not cause
serious consequences, but a further deterioration of
the financial situation, more political dissatisfac-
tion, and increased racial tension between Negroes
and East Indians could weaken the government's posi-
21 Mar 70 Central Intelligence Bulletin
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NOTES
Philippines-: President Marcos has called for
the resignation of all officials appointed by him
so he can reorganize the government, according to
press reports, The move is probably an effort to
appear responsive to student. demands for changes,
but it is unlikely that whatever personnel changes
Marcos intends to make will be followed up by a
significant redirection in government policies:,
Several cabinet changes last. month have not yet
resulted in any discernible moves toward meeting
student grievances
Peru: Top military and police officers have
reaffirmed their support for the policies of the
Velasco government. President Velasco held a meet-
ing at the national palace yesterday following sev-
eral days of rumors that moderate officers in the
military were planning a move against the radicals
in the government, The US Embassy comments that
it appears that Velasco has taken the initiative
and will probably outmaneuver his opponents again.
The ambassador warns, however, that it is not yet
clear exactly where the President stands followin
hese events,.
F
The Netherlands: Prime Minister De Jong and
his three coal.171on partners are interpreting the
results of Wednesday's provincial elections as a
renewed vote of confidence... Coalition leaders had
feared a marked swing to the opposition parties,
and were contemplating calling for early national
elections rather than risk further erosion. In the
provincial elections, however, losses suffered by
three of the four coalition parties were less than
expected, and the fourth partner even scored gains.
As a result, De Jong and his colleagues hope to
serve out their mandate that runs until next springs
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