CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A017100090001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: February 11, 2004
• Sequence Number: 1
• Publication Date: September 15, 1970
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
30
State Department review completed 15 September 1970
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No. 0221/70
15 September 1970
Central Intelligence Bulletin
ARAB STATES - ISRAEL: Israel's roundup of Arabs on
the West Bank may be hardening fedayeen demands.
(Page 1)
CAMBODIA: Government troops have pulled back from
Tang Kauk after failing to dislodge Communist forces.
(Page 3)
UNITED KINGDOM: The poor trade performance in Au-
gust could intensify downward exchange pressure on
sterling. (Page S)
USSR-CUBA: The Soviets apparently are preparing to
use naval facilities in Cuba to support nuclear-
powered submarines. (Page 6)
CHILE: Allende continues his efforts to "legitimize"
his claim to the presidency. (Page 7)
CENTRAL AMERICA: An agreement that could revitalize
the Common Market has been signed. (Page 8)
SIERRA LEONE: Prime Minister Stevens faces his most
serious challenge to date. (Page 9)
USSR - EAST GERMANY - UN: Seating bid (Page 11)
POLAND - WEST GERMANY: Bilateral talks (Page 11)
BULGARIA-ROMANIA: Zhivkov and Ceausescu meet (Page 12)
ALBANIA-JAPAN: Trade agreement. (Page 12)
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C ARAB STATES - ISRAEL: Israel's roundup of
Arabs on the West Bank may be hardening fedayeen
demands, which Western negotiators are still seek-
ing to clarify.
The Red Cross apparently takes a dim view of
the Israeli arrests in occupied territory. Red
Cross representative Jacquinet has said that if the
Arabs are being picked up as "counterhostages" for
those detained in Jordan by the PFLP, such tactics
run against Red Cross principles and Geneva might
be forced to take a "fresh look" at its role in Jor-
dan. According to press reports, Israel has sent
word to the commandos that if the remaining hostages
are not released "it will be very bad for the Arabs"
recently rounded up; Israel might impose the death
penalty on convicted guerrillas if the hostages are
harmed.
Meanwhile, both the British and the Germans,
disturbed by Israel's adamant refusal to make any
offers likely to influence the fedayeen, are said
to be moving toward a separate deal. The German
ambassador has told representatives of the other
five powers meeting in Bern that if concrete steps
in a multinational framework are not decided upon
within a short time, Germany could be obliged to
15 Sep 70 Central Intelligence Bulletin
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negotiate separately to free its own nationals. A
British threat. to move independently if a new Red
Cross negotiator were not named was forestalled by
the appointment of Boisard, head of the permanent
Red Cross delegation in Cairo, who was so successful
in the Suez prisoner exchange.
In Jordan, meanwhile, commando spokesman re-
ported new attacks yesterday by army troops on guer-
rilla units in the Irbid area in the north. In Am-
man, however, vehicular and pedestrian traffic was
normal, almost all of the shops were open, most of
the fedayeen were off the streets, and some of the
roadblocks had. been dismantled. Both fedayeen and
army positions have been reinforced, however; the
headquarters of the Palestine Armed Struggle Com-
mand--the fedayeen military coordination council--
.has been dug in, and several heavy machine guns can
be seen.
e tedayeen had been cooperating to
carry out t e cease-fire agreement until the out-
break of fighting in the north, after which the sit-
uation once again became tense.
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CAMBODIA: Government troops attempting to
break through along Route 6 to Kompong Thom have
pulled back from the village of Tang Kauk, 15 miles
north of Skoun, after failing to dislodge well-en-
trenched Communist forces there.
The Cambodians so far have suffered over 100
casualties in the fighting and are sending reinforce-
ments to their stalled forces. Press reports indi-
cate that the enemy has destroyed a bridge on Route
6 to the rear of the government column. A North
Vietnamese prisoner claims that there are sizable
numbers of Communist troops along Route 6 just north
of Tang Kauk.
Meanwhile, the government's relief convoy that
reached Kompong Thom by water on 10 September has
returned to Kompong Chhnang without incident to
pick up additional supplies for a second trip to
Kompong Thom. Elsewhere, the Communists confined
their activities to harassing attacks on scattered
government positions. F7 I
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Current Situation
Pursar
SkounJ
Korrs,pq+~9
/' Chg+i?
Kom pangSom0
(Sihanoukville)
Cambodia
o Principal city (10,000 or over)
Population over 125 per sq. uil.
Communist-controlled area
LAOS
?KraUe;
?a
Go!varnment fbrpes
f pu~l'4ack
S O U T H
*Saigon
E T N A M
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UNITED KINGDOM: A distinctly poor trade per-
formance report for August could intensify the re-
cent downward exchange pressure on sterling.
Commodity imports exceeded exports by some $555
million last month, but this deficit was distorted
by reporting procedures. Reporting on exports usu-
ally lags; thus the abrupt drop during the three-week
dock strike in July was paired with the accelerated
movement of imports after the strike. Comparable
difficulties arose last month, when the reporting
lag produced a distorted surplus of some $330 mil-
lion for July.
Although a deficit was expected, its size may
put additional pressure on sterling in exchange mar-
kets. The government has amply highlighted the
technical reasons for the bad returns, but many spec-
ulators remain skittish about the longer-term pros-
pects for Britain's trade and the pound. Factors
contributing to the weakened position of the pound
include unusually large increases in domestic wages
and prices, growing recognition that earlier 1970
export gains came more from price than quantity in-
creases, and a recent assessment by a leading British
research institute that raised the possibility of a
new devaluation.
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USSR-CUBA: The Soviets are apparently prepar-
ing to use naval facilities in Cienfuegos to support
nuclear-powered submarines.
two 82-foot
support barges have been delivered to the Cienfuegos
naval base. The barges were brought to Cuba from
the Soviet Northern Fleet on board an Alligator-
class landing ship
The specific function of these barges is
unknown, but they are believed to be used in the
USSR to support nuclear submarines.
An E-II class nuclear-powered cruise missile
submarine, which visited Cienfuegos last May, tied
up at the facility where the barges are now located.
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CHILE: Salvador Allende continues his efforts
to "legitimize" his claim to the presidency.
Addressing a "victory" rally on 13 September,
Allende tried to intimidate those who would block
his victory in the congressional runoff on 24 Octo-
ber by threatening to "paralyze" Chile. His most
specific threats were directed toward banking and
industrial interests, which he accused of promoting
economic crisis and financing "seditious conspir-
acies."
Allende made flattering references to the armed
forces and to the Christian Democratic Party (PDC),
implying that both groups respected his plurality.
He particularly cited the early congratulations of
defeated candidate Radomiro Tomic and other leftist
PDC members, a move that may weaken the party's be-
lated effort to construct and maintain a common
front against Allende.
Allende apparently still relies on some leaders
of the Radical Party, although there is strong evi-
dence that only a minority of its members followed
party orders to vote for him.
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CENTRAL AMERICA: An agreement that, if imple-
mented, wTill revitalize the Common Market was signed
last week by the economics ministers of the five
member states.
The most. important provision would establish
a development: fund that could be used to correct
persistent intraregional trade deficits. The minis-
ters also agreed to develop a coordinated agricul-
tural policy to encourage national product special-
ization, and to work toward stabilizing agricultural
prices. In addition, new protocols on the establish-
ment of regional industries are to be negotiated.
The agreement represents the culmination of
months of hard bargaining, during which Honduras
threatened to withdraw from the integration movement
unless it was assured of more equal benefits from
membership. El Salvador, for its part, had to weigh
its interest in keeping the Market alive against its
disinclination to assist the Honduran economy.
There now are grounds for optimism that the in-
tegration movement, stalled since the July 1969 war
between El Salvador and Honduras, will not only sur-
vive but will. continue to develop. Specific details
relating to the agreement are to be ironed out at
working-level. meetings beginning in October. The
economics ministers, hopeful that the Market will
be functioning normally by December, will reconvene
in November to review progress.
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SIERRA LEONE: Important defections from the
ruling All People's Congress (APC) confront Prime
Minister Stevens with his most serious challenge
since coming to power in 1968.
Two prominent cabinet ministers resigned on
Saturday, threatening to publicize evidence of
Stevens' involvement in corruption. The ministers,
who were promptly expelled from the APC, represent
a party faction long critical of Stevens' leadership.
At an anti-Stevens rally on Sunday, the ex-ministers
accused the prime minister of authoritarianism and
of using violence to intimidate his opponents. The
rally also served as the occasion for John Karefa-
Smart, a widely respected and popular national fig-
ure being pushed by Stevens' opponents as a possi-
ble successor, to announce his resignation from the
APC.
I In an attempt to stifle overt criticism and
discourage further defections, Stevens yesterday
declared a state of emergency. He may also use the
declaration as a pretext for suppressing his oppo-
nents, as he has in the past.
The APC, a northern-based coalition with an
overwhelming majority in Parliament, is plagued by
factionalism. Traditionally, its main opposition
has come from a southern-based party that ruled from
independence until 1967.. Now, however, Stevens is
also faced with a potentially significant opposition
in the north, as all the defectors are from that
part of the country. This narrowing of his polit-
ical base may force him to reassess his intention
to call new elections soon.
With tensions building, the prospect for vio-
lence, never far below the surface in Sierra Leone
politics, is increasing.[ Rock-throwing APC "bully
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C boys," used so effectively to intimidate the oppo-
sition during by-elections last year, tried unsuc-
cessfully to disrupt Sunday's rally. Further at-
tempts by Stevens to use strong-arm tactics could
backfire, however. Before the emergency was declared
the army and police commanders said that they would
not back political moves by the government to quash
its opponents. 1777 1
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USSR - EAST GERMANY - UN: The Soviets appear
ready to make a major effort to seat East Germany
in the UN at the General Assembly session opening
today. Their ambassador to Pankow, Abrasimov, is
included in the delegation to the meeting, suggest-
ing that Moscow plans to bring up this subject.
There have been numerous other signs that such a
campaign is in the offing, including the increasing
public emphasis the Soviets and East. Germans have
been placing on Pankow's demand for membership.
Moscow probably believes that admission to
the would precipitate general international rec-
ognition of Pankow, and ultimately force Bonn to
follow suit, but the West Germans are sure that
there are enough votes to block such a move at this
session.
POLAND - WEST GERMANY: The next round of bi-
lateral political talks, postponed from early Sep-
tember, will be held in Bonn at the deputy foreign
minister level in early October. Warsaw radio, in
making this announcement, said the two sides also
agreed that West German Foreign Minister Scheel and
his Polish counterpart Jedrychowski will "finalize"
the talks, which probably means conclude an agree-
ment, in Warsaw in early November. Willingness to
make this timetable public suggests that Bonn and
Warsaw are confident that the remaining problems in
drafting the treaty language can be resolved in a
manner satisfactory both to themselves and the four
major powers.
(continued)
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BULGARIA-ROMANIA: Bulgarian Premier Zhivkov
and Romanian President. Ceausescu at a meeting last
weekend agreed that a Romanian delegation would
visit Sofia in November to sign the long-delayed
new treaty of friendship, the draft of which was
initialed in 1968. They also agreed to continue
design work on a joint Danube River hydroelectric
power project that the Bulgarians have long sought
and further to expand economic collaboration, es-
pecially in the area of industrial production. This
was the first meeting between Zhivkov and Ceausescu
in three years?
ALBANIA-JAPAN: A three-year trade agreement
to be signed shortly will open up trade relations
between the two countries. A Japanese trade pro-
motion delegation that recently visited Tirana re-
ported that the agreement--between Albania and pri-
vate Japanese firms--will provide for the export of
Albanian minerals, including chrome, nickel, and
copper, and of Japanese whole plants, including an
oil refinery. The Hoxha regime also has been. seek-
ing to develop political and trade contacts in
Western Europe, probably hopeful that it can supple-
ment the substantial economic assistance promised
by China over the next five years.
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