CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A017900090001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 14, 2016
• Document Release Date: May 7, 2003
• Sequence Number: 1
• Publication Date: January 5, 1971
• Content Type: REPORT

Approved For Release 2003/05/19 : CIA-RDP79T00975A01790S V
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
40
January 1971
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No. 0004/71
5 January 1971
Central Intelligence Bulletin
COMMUNIST CHINA - ROMANIA: A Romanian official has
said the recent Chinese credit was for $100 million
in convertible currency. (Page 1)
GUINEA: President Sekou Toure apparently has de-
cided on a purge of suspected opponents. (Page 2)
INDIA: Three opposition parties
have
formed
an
a =lance for the elections next
month.
(Page
3)
CENTRAL AMERICA: A proposed Honduran decree dark-
ens the outlook for the Central American Common
Market. (Page 4)
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COMMUNIST CHINA - ROMANIA: A Romanian official
has said that the long-term, interest-free credit
extended by Peking last November amounts to $100 mil-
lion in convertible currency.
This is the largest cash loan China has extended,
and hard currency credits by the Chinese are highly
unusual. It comes at a very appropriate time and
will make it easier for the Romanians to face sub-
stantial repayment commitments to a number of coun-
tries over the next several years.
the total amount of
the loan may be as high as $300 million, with $200
million to be supplied in equipment, largely for
the metallurgical field. The Chinese, however, are
net importers of such equipment and are not highly
advanced in its production. With the exception of
some $400 million in credit for the construction of
the Tan-Zam railroad in Africa, this would be the
largest credit for economic aid ever extended by
China.
The large credit confirms both Romania's deter-
mination to limit further its economic dependence
on the USSR and Chinese willingness to underwrite
political independence in Romania.
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SECRET
GUINEA: President Sekou Toure apparently has
decided on a large-scale purge of suspected oppo-
nents of his regime.
Toure charged in a New Year's speech that the
Portuguese-led commando raid on Conakry last Novem-
ber was aided by a fifth column that included local
Guineans as well as foreign accomplices. He prom-
ised that these traitors would be brought before
revolutionary tribunals and liquidated. Toure or-
dered all levels of Guinea's single political party
to begin meeting next Monday to consider the "evi-
dence."
There is no firm evidence that an organized
internal opposition emerged in Guinea during the
invasion or since. It is possible, however, that
the Guinean exile group that participated in the
raid sought help from sympathetic individuals within
the country. Toure probably will use the existence
of such opponents, real or contrived, to justify a
sweeping purge. A large number of Guineans already
have been arrested or detained for questioning,
adding to the high state of tension that has con-
tinued in Conakry since the November raid.
Party militants also were instructed to con-
sider evidence against foreign residents in Guinea
who Toure believes aided the invaders. At least
four Europeans and the Catholic archbishop of Con-
akry were arrested, and West Germany's aid team
was expelled and its ambassador recalled when Toure
became convinced they were guilty of complicity in
the plot against him. It is not clear if these
are the only foreigners Toure was referring to in
his speech or whether additional charges against
foreign nationals will be made.
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INDIA: Three of the principal opposition
parties have formed an alliance to oppose Prime
Minister Gandhi's Ruling Congress Party in the
elections of 26 February.
The alliance consists of the right-of-center
Organization Congress Party, the right-wing Hindu
nationalist Jana Sangh Party, and the leftist Sam-
yukta Socialist Party (SSP). In the recently dis-
solved 523-member lower house of parliament, the
Organization Congress was the 'Largest opposition
party with 63 seats; the Jana Sangh and SSP held
33 and 17 seats, respectively. In announcing the
alliance on 3 January, the three parties said that
for each lower house seat they intend to put up
one agreed candidate who will be supported by all
three parties.
The alliance suffered an initial setback when
the right-wing, pro free enterprise Swatantra
Party refused to join. The Swatantra, whose 35
parliamentary seats made it the second largest
opposition party, reportedly wanted a more compre-
hensive alliance, including a basic platform sup-
ported by all parties to the alliance instead of
simply an agreement to back each other's candidates.
The Swatantra's action, however, does not preclude
ad hoc agreements between the new alliance and the
Swatantra to cooperate in individual contests-
5 Jan 71 Central Intelligence Bulletin
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CENTRAL AMERICA: A proposed Honduran economic
decree darkens talready grim outlook for the
Central American Common Market,
The decree abrogates multilateral agreements
on free trade and taxes and authorizes the minister
of economy to negotiate bilateral arrangements. The
move, a virtual withdrawal from the Market, follows
El Salvador's eleventh-hour refusal to sign a pro-
posed modus operandi, which would have met Honduran
complaints that it was not benefiting enough from
Market membership.
El Salvador, which has benefited substantially
from the Market, will probably want the organization
to continue, but without Honduras. Nicaraguan Pres-
ident Somoza, who is already pushing for a special
meeting later this month of the Central American
foreign ministers to rescue the modus operandi, may
plead with Honduras to hold off official publication
of its decree until such a conference can be held.
in the year-long effort to patch the damage to
the Market resulting from the war in 1969 between
Honduras and El Salvador, Market members have over-
come the frustrations of similar impasses. Patience
on all sides is wearing thin, however, and hope of
a union that includes the continually feuding El
Salvador and Honduras is diminishing.
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