CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A016700060001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: February 10, 2004
• Sequence Number: 1
• Publication Date: July 17, 1970
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
5 0
17 July 1970
State Department review completed
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No. 0170/70
17 July 19 70
Central Intelligence Bulletin
CONTENTS
Cambodia: Phnom Penh has indicated it is unwilling
to join a formal regional defense pact. (Page 1)
Laos: Rains have brought military operations in the
north to a virtual standstill. (Page 5)
Peru-USSR: The arrival of the first airlift flights
was greeted with a minimum of fanfare. (Page 6)
Chile-Cuba: Influential Chileans are rapidly broad-
ening relations with Cuba. (Page 8)
UN-Suez: Observer killed (Page 9)
Yugoslavia: Economic measures (Page 11)
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Cambodia: Current Situation
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Cambodia: Phnom Penh has indicated it is un-
willing to join a formal regional defense pact.
Foreign Minister Koun Wick told the US charge
yesterday that the government is opposed to such a
move because it would jeopardize Cambodia's stand-
ing as a neutral. He implied, however, that Cambo-
dia may not rule out informal military alignment
with neighboring governments as long as Communist
forces threaten the country. These matters probably
will be discussed during President Thieu's visit to
Cambodia today, and during Prime Minister Lon Nol's
visit to Bangkok next week.
The Military Situation
The situation at Kirirom remains confused as
the fighting drags on. Unconfirmed press reports
claim that government forces, pinned down since 11
July, are preparing an all-out assault on enemy po-
sitions on the town's central plateau. Eight gov-
ernment battalions are now in place, and more troops
are being sent in. For the first time since the
outbreak of hostilities, Phnom Penh has admitted
that government forces have suffered "fairly heavy
casualties."
The Communists made an anticipated attack on
the Lovek ordnance depot on the night of 15-16 July,
but were repulsed. No casualties were reported on
either side. Government forces, aided by air strikes,
appear to be in control of the situation.
Phnom Penh - Bangkok Rail Line Reopening
As a result of an agreement reached on 11 July,
the rail line between Cambodia and Thailand is due
to open soon, after an interruption of nine years.
Transloading will be necessary near the border as
each country's rolling stock is incompatible with
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the other's. If it is opened, the Thai rail line
will provide an alternative route to Phnom Penh.
The capital's rail connections with its principal
port at Kompong Som have been interdicted, and
there are no present plans for opening that route.
Through traffic to Phnom Penh via the Thai rail
line currently is cut by several damaged bridges in
Kompong Chhnang Province, and until these are re-
paired, it will be necessary to transfer freight to
trucks at Pursat. The rail line will be an attrac-
tive target to the Communists, and the government's
main problem will be keeping it open.
17 Jul 70 Central Intelligence Bulletin
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Communist Activity in Southern Laos
NORTR
VIETNAM
THAILAND
rAMBODIA
SQU~TI-!
ti VIETNAM
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Laos: Heavy rains have brought military opera-
tions in the north to a virtual standstill, but in.
the panhandle frequent small clashes are occurring
on the Bolovens Plateau and along the key waterways
to the south.
For the past four days, enemy forces have staged
repeated attacks on a government battalion that re-
cently moved into the Phou Nongtao mountain area
along the eastern edge of the plateau. At last re-
port, the irregular unit had been forced to withdraw
from its principal position, but was remaining in
the area.
The Communists appear determined to maintain
pressure against government bases on the Bolovens,
probably to forestall interdiction operations into
the infiltration corridor. Such operations have been
on the increase. Since 22 June, government guerrilla
teams are reported to have accounted for four trucks
and 25 watercraft along Route 16 and the Se Kong
River.
Farther to the southwest, Communist forces ap-
pear to be making an effort to prevent government
forces from regaining the initiative during the
rainy season. Harassing attacks have been directed
against Paksong and Souvannakhili, and since 13 July
small unit actions have been reported from the area
just north of Khong Island.
All of these sites have been designated in
enemy propaganda as locations that the Communists
intend to seize during the rainy season. The Com-
munists' actions so far, however, suggest that they
are less interested in occupying towns than they
are in tying down government troops while the flow
of enemy men and material continues to Cambodia and
South Vietnam.
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Peru-USSR: The arrival of the first six Soviet
relief flights was greeted with a minimum of fan-
fare in Lima.
The dramatic impact of the 65-plane Soviet
airlift of relief supplies to earthquake victims
in Peru has been dissipated not only-by the tardi-
ness of the response but also by the delays in get-
ting the flights under way after they had been an-
nounced. The official welcoming committee at the
airport to meet the first flight on 14 July con-
sisted only of two air force colonels, a repre-
sentative of the presidential emergency center, and
the Soviet ambassador.
The absence of any high-level officials in the
welcoming committee may indicate that the Peruvian
Government does not intend to single out the Soviet
relief effort for special treatment. The US Embassy
in Lima comments that the public reaction so far in-
dicates that Peruvians see the Soviet aid as pri-
marily a grandstand play undertaken for political
gain.
News coverage of the airlift has not been ex-
tensive--only one leftist newspaper has given it
headline treatment, Even the offer of a $30-million
Soviet credit to Peru, announced shortly after the
airlift was made public, has been criticized in one
Lima newspaper as "masked colonialism," because it
is tied to the Peruvian purchase of Soviet machinery
of allegedly questionable quality.
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Chile-Cuba: Some influential Chileans are rap-
idly broadening relations with Cuba in intellectual
and political fields as well as in trade.
Top officials of the two major Chilean univer-
sities will soon visit Cuba to study terms of a pos-
sible cultural agreement with the University of Ha-
vana. The Communist rector of the Chilean State
Technical University is already in Cuba heading a
delegation from his institution.
The Chilean Communist Party, which could play
an influential role in the Chilean administration
to be elected in September, has recently mended its
strained relations with the Cuban Communist Party.
At the opposite end of the political spectrum,
the head of the conservative private Chilean far-
mer's organization has announced that he would ac-
cept an invitation to Cuba to explore further trade
opportunities. He said that Cuba offered a stable
market, three to five year contracts, and payment
in sterling. Indications are increasing that Chile
plans to buy sugar, livestock, and possibly other
commodities from Cuba.
The two countries' trade in agricultural prod-
ucts was used by the Alessandri administration as
one excuse for not breaking relations with Cuba
until August 1964.
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UN-Suez: The death of a Swedish major on the
UN Suez o server team and the wounding of a New Zea-
land observer by. Egyptian small arms fire yesterday
underscores the problem of maintaining the 100 ob-
servers along the canal. UN Secretary General Thant
last month wrote the seven nations supplying observ-
ers in the Suez sector, stating that he could no
longer guarantee their safety. The Chilean sugges-
tion that the Security Council be asked to consider
how the observers could be provided with more rotec-
tion has not been followed up.
(continued)
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Yugoslavia: Parliament has approved two meas-
ures designed primarily to increase economic stabil-
ity and to curb inflation. A temporary tax of five
percent will be imposed on imported goods to reduce
Yugoslavia's growing trade deficit, and some budget
surpluses will be placed in a compulsory reserve
fund to limit government spending. The government
will back up these measures with a more restrictive
monetary and credit policy and possibly with added
price controls. The cost of living currently is in-
creasing at an annual rate of about ten percent;
government officials admit that the new tariff on im-
orts may give rise to domestic price increases.
I I
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