CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A019200080001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 15, 2016
• Document Release Date: August 1, 2003
• Sequence Number: 1
• Publication Date: June 9, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
DIA review(s) completed.
Secret
N? 040
9 June 1971
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No. 0137/71
9 June 1971
Central Intelligence Bulletin
CAMBODIA: Rout of a government task force near
Phnom Penh. (Page 1)
POLAND: Production and sales of food increased in
April. (Page 2)
INDONESIA: The elections scheduled for 3 July.
(Page 3
CEYLON: The government appears increasingly con-
fi ent in handling the insurgency. (Page 5)
TURKEY: The hunt for terrorist fugitives. (Page 6)
CHILE: Massive security measures following a polit-
ical murder. (Page 7)
VENEZUELA: New oil legislation. (Page 8)
CUBA: Hijacked airplanes (Page 9)
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Phnom Penh Area
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CAMBODIA: The Communists appear to have routed
a government task force northeast of Phnom Penh.
An eight-battalion Cambodian Army (FANK) column,
consisting primarily of elite Khmer Krom units, came
under enemy small-arms fire from three directions
yesterday morning between the villages of Vihear
Suor and Kampong Chamlang. The Communists next un-
leashed a barrage of 50 to 100 rockets against the
immobilized task force, throwing its elements into
complete disarray. Some government troops fell back
toward Vihear Suor, while others tried to move east-
ward toward Kampong Chamlang.
According to reports received by the US defense
attache in Phnom Penh, however, the Communists had
ringed the entire column and were ambushing small
groups of retreating Cambodian soldiers. Some hand-
to-hand combat apparently was continuing by late
afternoon. Loss of radio contact with most of the
units involved in the fighting has added to the gen-
eral confusion and uncertainty surrounding the col-
umn's fate. Initial casualty reports indicate that
government losses total 80 to 90 troops killed and
100 wounded. Hundreds of others are still unac-
counted for, but it is likely that many of the miss-
ing will eventually work their way back to friendly
lines.
The FANK high command in Phnom Penh is shaken
by this latest reverse, which is looming as one of
the more costly suffered thus far by the government.
The US attache reports that the Cambodian officers
are expressing disbelief that such a defeat could
be inflicted on Khmer Krom forces, the mainstay of
the Cambodian Army since the war began.
9 Jun 71
Central Intelligence Bulletin
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POLAND: Production and sales of food increased
in April continuing a trend since March when the
Gierek regime was forced by renewed strikes to roll
back food prices to their pre-December levels.
Production of meat products, margarine, poul-
try, and fish products rose substantially, and food
sales were up 23 percent compared with April of last
year. This improvement, made possible by a rise in
food imports and increased domestic processing of
food, will give the new regime further reason to
claim that it is following through on some of its
promises to the hard-pressed workers who sparked
the riots of last December.
The April gain in production, however, was at
a rate less than that planned for the second quar-
ter of this year. Last month, Polish Minister of
Internal Trade Snajder said he expected meat sup-
plies to rise by over ten percent and the availa-
bility of some other foods to increase during this
quarter. Food imports, facilitated by the Soviet
credits extended earlier this year, are a stopgap
measure, however, and the regime evidently is hoping
that recent steps to stimulate domestic food produc-
tion will help bear out its optimistic forecasts.
9 Jun 71 Central Intelligence Bulletin
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INDONESIA: The campaign for the first national
elections in 16 years is developing some steam, but
the outcome will have relatively little effect on
the army-dominated government.
Although the elections on 3 July are being held
at both national and provincial levels, the prin-
cipal stakes are 360 seats in the 460-member Par-
liament, a body of relatively limited powers. The
remaining 100 members of Parliament will be ap-
pointed by the government. In holding the elec-
tions, the government, is fulfilling its pledge to
replace the present appointed body with a largely
elected one.
The government views economic improvement as
the nation's primary goal, however, and has been
insistent that neither the conduct of the elections
nor their outcome should divert the country from
the major reconstruction effort necessary after the
economically exhausting Sukarno era. It is equally
emphatic that there be no return to the extreme
nationalism and pro-Communism that characterized
the final years of the Sukarno period. Candidates
have been carefully screened, and members of the
banned Communist Party and its affiliated organiza-
tions are denied the vote. The campaign has been
conducted under fairly stringent government re-
strictions and under close observation.
The chief contestants are the government's
party, a coalition of worker and professional
groups called SEKBER GOLKAR; the secular National-
ist Party; and the two Muslim parties, which are
the traditionalist Nahdatul Ulama and the modernist
Muslim Party. The Nationalist Party and the
Nahdatul Ulama are entrenched in densely populated
Java, where they are resisting SEKBER GOLKAR as
firmly as they dare without provoking government
acts against them.
(continued)
9 Jun 71 Central. Intelligence Bulletin 3
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SEKBER GOLKAR has steam-rollered its way through
the country, proselytizing among groups attached to
the regular parties and demanding the allegiance of
national and provincial government employees. Al-
though its rapid accumulation of a following has
been impressive, its arm-twisting methods could be
counterproductive. SEKBER GOLKAR, however, seems
likely to win at least a plurality of the 360 par-
liamentary seats.
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CEYLON: The government appears increasingly
confi e3 nt in its handling of the insurgency, but
problems remain.
On Monday, the curfew was further shortened to
six hours a night; a second and "final" three-day
amnesty period proclaimed by Prime Minister Bandara-
naike ends today. The government claims that about
6,000 rebels surrendered during a similar period in
early May, and it apparently believes that many re-
maining insurgents will give themselves up if they
have a safe opportunity. No figures are yet avail-
able, however, to indicate how many have taken ad-
vantage of the current amnesty.
The insurgents, meanwhile, continue to attack
government and police installations occasionally,
but most of their current efforts consist of robbery
attempts on individuals. Although they probably
are not capable at present of launching another ma-
jor island-wide assault, their threat to the govern-
ment will increase in the absence of early and ef-
fective implementation of a program of economic re-
forms.
Another problem for the government is the re-
habilitation of the more than 12,000 insurgents now
in custody. Some observers have noted considerable
restlessness in the rehabilitation centers, which
could become breeding grounds for further frustra-
tions and the locus for future revolutionary plan-
ning. The government's indoctrination program seems
to have had little effect as yet, and officials ap-
pear uncertain over how to improve the situation.
9 Jun 71 Central Intelligence Bulletin 5
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TURKEY: The hunt for terrorist fugitives is
being pressed amid some apprehension on the part of
Turkish officials of further kidnaping or assassina-
tion attempts.
Security forces, including helicopter-borne
commandos, have attacked several terrorist hideouts
in the southeastern mountains. Several guerrillas
have been killed and at least five have been cap-
tured in recent operations.
Most of these actions have been carried out in
Kurdish areas, but there has been no suggestion of
Kurdish involvement. In fact, some Kurdish peasants
have assisted in the capture of the fugitives. The
commandos also are reported to have uncovered sev-
eral arms caches of undetermined size. In Istanbul,
additional precautions are being taken to protect
members of the consular corps from possible attack.
Meanwhile, in Ankara there is some concern over
possible student demonstrations on 10 June. If mem-
bers of the banned Revolutionary Youth Organization
are barred from taking their scheduled examinations,
as had been suggested, they may mount a "spontaneous"
demonstration and violence could ensue. Demonstra-
tions of any kind are banned by martial law author-
ities and any such attempt would be dealt with
harshly.
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C CHILE: The Allende government is taking mas-
sive security measures following the murder yester-
day of former cabinet minister Edmundo Perez, who
was the leader of the opposition Christian Demo-
cratic Party's conservative wing.
President Allende imposed a state of emergency
in Santiago, convoked the National Security Council,
and put all radio stations on the government net-
work. The acting president of the government coa-
lition denounced the murder as a threat to all
Chileans and a provocation. Officials may use the
occasion to crack down hard on extremists of both
left and right, whom they frequently accuse of ac-
tivities injurious to public order.
Representatives of the People's Revolutionary
Vanguard (VOP) claimed responsibility for the mur-
der. Those VOP members accused by police have taken
refuge in a slum area. The VOP said that Perez'
assassination was "partial redemption" of its recent
communique insulting President Allende and threat-
ening to "bring to justice" prominent nongovernment
Chileans whom it called "enemies of the people."
The government played down the importance of the
communique, but said it would be investigated. The
VOP, which describes itself as a "socialist and rev-
olutionary organization of the armed proletariat,"
broke off from the better-known Movement of the Rev-
olutionary Left about two years ago. Subsequently
the VOP was reportedly penetrated by both rightist
extremists and the Communist Party, and its present
status and backing are unclear.
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VENEZUELA: Foreign oil companies (primarily
US) are apprehensive about new legislation being
considered by the Venezuelan Congress.
Minority parties have introduced bills to pro-
hibit the companies from selling petroleum products
in the domestic market and to assure turnover of in-
dustry assets in "good operating condition" when
concessions expire. One of the bills would reserve
the entire domestic products market for the govern-
ment-owned oil company, which now has one third of
the market. The second bill would require the com-
panies to set aside ten percent of their annual de-
preciation in a government fund to guarantee upkeep
of facilities that would revert to the government
when concessions begin expiring in 1983. A retro-
active clause would substantially add to the finan-
cial burden from this levy on depreciation allowances.
Although the oil companies are resigned to
eventual loss of the domestic products market, the
second bill is of great concern to them because it
would significantly increase current industry oper-
ating costs. President Caldera's earlier proposed
legislation to nationalize the oil companies' gas
resources is still being debated and these two new
bills largely represent efforts by minority polit-
ical parties to climb on the growing wave of nation-
alism. The bills are expected to pass Congress this
year, possibly as early as July, and most likely
will lead to increased strains in US-Venezuelan re-
lations.
9 Jun 71 Central Intelligence Bulletin
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CUBA: There are indications that the recent
detention of the hijacked Pan American airplane may
represent a new tactic to protest US seizures of
Cuban fishermen. In a recent article, the official
Cuban news agency Prensa Latina directly linked the
prolonged detention of the Pan American jet hijacked
on 29 May with the release of four Cubans picked up
three days earlier for fishing within the 12-mile
limit. The four went to trial in Miami yesterday.
In the past, Cuban authorities have permitted hi-
jacked airliners to depart within a few hours; the
Pan Am jet was delayed for five days.
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NATIONAL INTELLIGENCE ESTIMATE
The United States Intelligence Board on 8 June
1971 approved the following national intelligence
estimate:
NIE 29.1-71 "Prospects for Greece"
I
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