CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A021700050001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: March 3, 2004
• Sequence Number: 1
• Publication Date: April 20, 1972
• Content Type: REPORT

Approved For Release 2004/05/05: CIA-RDP79T00975A02170 t
25X1
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N2-
42
20 April 1972
State Department review completed
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
 25X1 Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
 Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
SECRET
No. 0095/72
20 April 1972
Central Intelligence Bulletin
VIETNAM: Three major battlefronts show little change,
but Communists make gains at local level. (Page 1)
CHILE: Agreement reached on rescheduling debt.
Page 3)
MAURITIUS-CHINA: Peking agrees to diplomatic rela-
tions and grants loan. (Page 4)
URUGUAY: Communist-controlled unions continue gen-
eral strike. (Page 5)
EGYPT-USSR: Sadat may plan trip to Moscow (Page 6)
CHINA-SUDAN: Military aid agreement (Page 6)
JAPAN: Tokyo will restrict electronics exports
Page 7)
GOLD: Price on London market at record high (Page 7)
ROMANIA: Personnel changes (Page 8)
SECRET
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
 25X1 Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
 Approved For Release 2004/bbfS'ACRDP79T00975A021700050001-5
\aDong Hoi
NORTH
,r,VIETNA~
KIN II
THONG
Demilitarized Zone
ri/fl.
Qb3sg In
A h%1 (~,., ,4'
H 114 1-1
OINH
I AJ EN~ tDUNG ^
~~ ,.~nur 'xr oNG\My Tho
CO
\J \1 GANG ~4 TU j
DE~
n Tho.
N. DIN
S
Hue?
TH.JA THIEN~~-"~
AShau f~ `r
a Nang
QuArvG A.
7 1
i QUA, TIN
!'H tlr,1
?Loc inh
asNtl I_eNr
~nnG
/--MR 4
Nor /.
104 a 1116
PHU l
eaN PHU IU MR 2
YEN 1I
juy HOa
DARLAC
r P.
~-.~ ? Ban Me KHANH
Thuot I HOE II ~~
Our, Trang
15C TUYEI'= I''
Da Lat. J `k ~c,`AM
ANH
OWc IJ NII ~,{I VV
~'} THUAN {1
LAM DOUG 1_..
QLA . Qufng Ngai
N,-
NGAI
i+l- \
PHl100; ~'
YUY MMR 3 1(
4 Jf ~
EN Hpk
Capital Special Zone
SOUTH VIETNAM
lU8 MILES
110
SECRET
Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
C
 Approved For Release 2004 / E .RDP79T00975A021700050001-5
C VIETNAM: There. has been little change in the
situation on any of the three major battlefronts.
At the same time, Communist gains at the local level
in many parts of South Vietnam are becoming more
apparent.
Small Communist regular units and local forces
throughout the country have been moving on vulnera-
ble targets in populated areas, such as government
outposts, refugee centers, and district towns. In
Quang Ngai Province, although the provincial capi-
tal remains quiet, enemy units have made considerable
inroads in at least two nearby districts. In neigh-
boring Binh Dinh Province the enemy has captured
two district capitals in the past few days. The
Communists have had similar successes in various
other regions, including many parts of the Mekong
Delta. They now control a number of district towns
and large portions of several provinces throughout
the country. Their efforts have been abetted in
many cases by a lack of aggressiveness on the part
of Saigon's provincial and militia forces.
Extending Communist influence at the local
level and undermining Saigon's control in the coun-
tryside seems to be a major part of enemy plans.
In many areas the Communists are following up their
military efforts with attempts to establish civil
administrations in newly seized territory. The
North Vietnamese units that are assisting Viet
Cong cadre apparently are under orders to treat
the local populace well.
The Communists are continuing their harassing
attacks against US naval vessels operating in the
Gulf of Tonkin off the coast of North Vietnam.
Yesterday two MIG-l7s and several motor torpedo
boats attacked four US ships east of Dong Hoi. One
of the MIGs bombed a US destroyer, causing heavy
damage to the vessel and wounding four of its crew.3
20 Apr 72 Central Intelligence Bulletin
SECRET
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
 Approved For Release 2004/` , RDP79T00975A021700050001-5
Cone of the other US ships fired surface-to-air mis-
siles at the attacking MIGs and downed one of them.
The same ship also apparently sank two of the motor
torpedo boats. Communist shore batteries exchanged
gunfire with all four US ships but none of the ves-
sels was hit.
20 Apr 72 Central Intelligence Bulletin 2
SECRET
25X1
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
 Approved For Release 2004/OJ,LV(EDP79T00975A021700050001-5
*CHILE: An agreement has been reached with
the "Paris Club" on the rescheduling of Chile's
foreign debt.
The compromise agreement grants Chile a one-
year extension on 70 percent of the debt that fell
due at the end of 1971. Chile agreed to accept
this consolidation period--shorter than it had
asked for--on the understanding that the repayment
schedule would be reviewed at the end of 1972.
Chile also agreed that it eventually would pay its
entire external debt and would provide "just" com-
pensation for,. all nationalized property.
In a relatively moderate address to a large
rally in Santiago on 18 April, President Allende
announced that he would submit a bill to Congress
calling for nationalization of all ITT holdings.
He pointed out that this was not confiscation,
and that compensation would be paid as appropriate.
Elsewhere in his speech, however, by claiming that
ITT had invested only $28 million in Chile and had
taken out $360 million in profits, Allende laid
the groundwork for paying less than adequate com-
pensation. He clearly wants to keep his options
open. F7 I
*Because of the shortage of time for preparation of this item, the analytic
interpretation presented here has been produced by the Central Intelli-
gence Agency without the participation of the Defense Intelligence
Agency, Department of Defense.
20 Apr 72 Central Intelligence Bulletin 3
SECRET
Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
 Approved For Release 20049 0M,-2'1-RDP79T00975A021700050001-5
MAURITIUS-CHINA: Prime Minister Ramgoolam's
recent visit to Peking resulted in the establishment
of diplomatic relations and the granting of a gen-
erous Chinese loan to Mauritius.
A joint communique issued after Ramgoolam's
visit said relations will be established at the
ambassadorial level. Mauritius recognized Peking
as the sole legal government of all the Chinese peo-
ple. Unless China radically changes its past policy,
Mauritius will have to cut its ties to Taiwan, which
has provided important agricultural aid, in order to
receive a resident Chinese envoy.
A separate communique issued by the prime minis-
ter's office in Port Louis states that Peking will
grant Mauritius an interest-free loan over the next
five years, totaling $35 million. The loan, large
by Mauritian standards, would represent about 43
percent of the foreign aid needed to finance the
government's four-year plan and make China Mauritius'
largest single aid donor.
Peking's interest in establishing relations
stems mainly from its general policy of strengthening
its standing among third world countries and under-
cutting the position of the US, USSR, and Taiwan.
A diplomatic post in Mauritius will help the Chinese
to keep an eye on Soviet moves in the Indian Ocean.
The island also could provide port facilities in
support of Chinese ICBM testing, if the missiles
are targeted into the Indian Ocean.
The generous aid offer represents a significant
victory for Ramgoolam. It should help him overcome
the fears of conservatives in his coalition govern-
ment that Chinese representation will result in a
threat to internal security by increasing Communist
influence amn the financially important Chinese
community. r
2 0 Apr 72 Central Intelligence Bulletin
SECRET
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
 Approved For Release 2004ffpI-RDP79T00975A021700050001-5
URUGUAY: Communist-controlled unions are con-
tinuing a general strike in protest against the
killing of seven party members in a clash with a
military unit on 17 April.
A government communique, issued 15 hours after
the incident, blames the Communists for the clash,
but the US Embassy has commented that the Uruguayan
Communist Party has carefully avoided armed conflict
in the past and there is no evidence to indicate
that this posture has changed. Party leaders con-
demned the shooting as a "workers massacre," and
leftist Frente Amplio Senator Enrique Erro has
called for an immediate Senate investigation of
extralegal "death squads."
Opposition Blanco leader Wilson Ferreira, who
has cooperated with President Bordaberry since the
"war" with the Tupamaros began on 14 April, opposed
Erro's request on the ground that the government has
already promised to move against rightist terrorist
groups. Unless Bordaberry acts promptly and deci-
sively on this issue, he may lose the Blanco support
he must have to deal effectively with political
leftists and terrorists.
20 Apr 72 Central Intelligence Bulletin 5
SECRET
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
25X1
 Approved For Release 2004/051Q jDP79T00975A021700050001-5
EGYPT-USSR: President Sadat may be planning a
trip to Moscow before mid-May. The visit will pro-
vide a final opportunity for consultations with the
Soviets before President Nixon's visit to the USSR.
Egyptian Foreign Minister Ghalib had been scheduled
to travel to the Soviet Union for some time, but
Sadat's apparent decision to go himself underscores
Cairo's estimate of the importance of the US-Soviet
summit talks for the Middle East situation. Al-
though bilateral military and economic matters pre-
sumably will be covered, Sadat's principal aim
probably will be to obtain assurances from the So-
viet leaders that Egyptian interests will be fully
protected in Soviet discussions with President Nixon
on the Arab-Israeli impasse. Sadat may also believe
that the question of controls on arms shipments to
the Middle East will figure in the US-USSR summit,
and he would wish to elicit a full exposition of
Soviet views on this sensitive issue.
CHINA-SUDAN: The two countries signed a mili-
tary aid agreement earlier this week, according to
Sudanese press reports. The pact, the first between
Peking and Khartoum, probably formalizes negotia-
tions held last December when Sudanese Vice-Presi-
dent and Defense Minister Khalid Hasan Abbas visited
China. The agreement covers training of Sudanese
military personnel, but some military equipment may
be included. A small number of Chinese military
instructors arrived in the Sudan earlier this year.
Since President Numayri's successful counter-coup
last July, Peking has attempted to step into the
opening provided by the decline in Sudanese-Soviet
relations by sharply increasing its economic aid
and political su port for his regime.
20 Apr 72
Central Intelligence Bulletin
SECRET
(continued)
25X1
I
25X1
Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
 Approved For Release 2004/0 /Q IA RDP79T00975A021700050001-5
RET
JAPAN: Tokyo, hoping to forestall stringent
protectionist legislation threatened by the Benelux
countries, will "voluntarily" restrict electronic
exports to Western Europe and the US. As a result
of rising criticism of the sharp increases in such
exports, the Ministry of International Trade and
Industry has announced price and quota restrictions
to become effective within the next two months.
Quota,; restrictions will apply to desk-top electronic
calculators, while minimum export prices will be
established for radios, tape recorders, and black
and white televisions. Minimum export prices on
color televisions are to be increased. Japanese
producers already are trying to minimize the effects
of the controls, which, in any case, probably will
not be stringent enou h to satisfy Japan's trading
partners completely.
GOLD: The price of gold rose to a record high
level of $49.47 per ounce on the London market this
week. The recent price rise probably is largely at-
tributable to supply shortages and not to develop-
ments in international currency markets. An unex-
pected decline in South African production, related
in part to a costly mine fire, probably has reduced
the flow of newly mined gold to world markets. The
price of gold could climb above $50 an ounce in the
coming months, especially if South Africa takes ad-
vantage of its improved balance-of-payments outlook
by withholding from the market some of its newly
mined gold. If the Soviet Union, however, soon
carries out its reported intention of selling sub-
stantial quantities of gold, upward pressures on
gold prices would be dampened.
(continued)
20 Apr 72 Central Intelligence Bulletin 7
SECRET
25X1
25X1
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
 Approved For Release 2004/~kWDP79T00975A021700050001-5
ROMANIA: A recent plenum of the party central
committee shifted Paul Niculescu-Mizil, the party
ideologue and a long-time associate of President
Ceausescu, from the party secretariat to the post
of deputy premier, his first governmental assign-
ment. Among other possibilities, the new assign-
ment could signal Ceausescu's intention to groom
Niculescu-Mizil to succeed the highly able but ail-
ing 70-year-old Premier Ion Gheorghe Maurer. The
shift of Niculescu-Mizil and other personnel changes
probably are related to preparations for a national
party conference now slated for July.
20 Apr 72 Central Intelligence Bulletin 8
SECRET
25X1
Approved For Release 2004/05/05 : CIA-RDP79T00975A021700050001-5
 Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5
Secret
Secret
Approved For Release 2004/05/05 : CIA-RDP79T00975AO21700050001-5