CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A022100050001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 14, 2016
• Document Release Date: July 9, 2003
• Sequence Number: 1
• Publication Date: June 14, 1972
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
State Department review completed
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No. 0142/72
14 June 1972
Central Intelligence Bulletin
VIETNAM: Situation report. (Page 1)
MEXICO-US: President Echeverria will press the
cause of less developed nations during his visit
to Washington. (Page 3)
SOUTH KOREA: Seoul will seek to reorient ASPAC.
(Page 4)
PANAMA: Talks under way to avert expropriation of
US-owned firm. (Page 7)
CEYLON: Government trying to contain Tamil protests.
Page 9)
INDIA: US firms complain about Indian harassment.
Page 10)
BANGLADESH: Peking offers to buy jute (Page 11)
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C VIETNAM: Military action on 13 June was again
heaviest in the delta, where enemy shellings and
skirmishes continue in scattered areas. Elements
of the South Vietnamese 7th Division that were ear-
lier airlifted to an area in Cambodia just across
the Kien Tuong Province border and behind enemy
forces have been in heavy contact with Communist
troops, probably elements of the Viet Cong 5th Divi-
sion.
Just to the south of Kien Tuong Province, the
Communists have been attempting to gain control of
the extensive canal network and river system in
Kien Phong Province to assist their infiltration of
men and materiel into the delta. Since the current
offensive, the South Vietnamese Navy has lost over
40 patrol boats in Kien Phong alone, and only two
such craft remain for operation on a 15-mile stretch
of the Mekong River between the patrol bases at Tan
Chau and Cao Lanh towns.
In the northern provinces, there have been
light and scattered shelling attacks on government
outposts but no significant clashes. At least one
South Vietnamese Marine battalion has crossed the
My Chanh River into Quang Tri Province in an appar-
ent operation into enemy territory. Another marine
battalion, which participated in last week's three-
day foray into Quang Tri, has remained more than a
mile north of the My Chanh defensive line, but has
reported no contact during the past week.
Government forces are continuing to clear
troops from bunkers in the northern and western sec-
tions of An Loc. Approximately 1,000 South Vietnam-
ese reinforcements were airlifted to the southern
edge of the town on 13 June, and more are to be
flown in today.
(continued)
Central Intelligence Bulletin
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C In North Vietnam, the need to ensure adequate
discipline and effective work performance from the
populace under the stress of the bombing and the US
psychological warfare campaign is apparently causing
the regime concern. Writing in the May edition of
the party's journal, North Vietnam's secret police
chief has called for an expansion of the public se-
curity apparatus and has explicitly criticized
"guiding echelons" of the party and government for
failing to maintain order. The article follows sev-
eral other indications in Hanoi propaganda that the
regime has instituted a security crackdown. A simi-
lar effort was undertaken at the outset of the US
bombing campaign in 1965 and
Central Intelligence Bulletin
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MEXICO-US: While solutions to bilateral issues
are the principal goals of President Echeverria's
visit to Washington this week, he probably hopes to
advance his aspiration to be recognized as a cham-
pion of the developing nations.
Echeverria will probably trade on the good will
carefully built with the US to give a frank exposi-
tion of his thesis on the responsibilities of rich
nations toward poorer ones. Over the past several
months, he has attempted to establish himself as a
leading representative of the less developed coun-
tries. He has leveled criticism at the great pow-
ers, blaming them for many of the troubles of the
underdeveloped world. He has advanced a "charter
of economic rights and duties" for developing na-
tions, and wants to use this as a weapon to attack
the inequalities and injustices that most of the
poor nations feel are part of their economic rela-
tions with industrialized countries. Because of
Mexico's economic dependence on its northern neigh-
bor, Echeverria's criticism has been aimed mainly
at the US.
Last week, Echeverria indicated that Mexico
will assume a greater role in world affairs in the
coming years. His recent trips to Japan, Peru,
and Chile are examples of this. He put his US visit
in the same context, stating that Mexico will be
inflexible in defending its rights and those of the
underdeveloped world. His statements are intended
to reassure his public that Mexican interests will
be pushed in all international and bilateral dis-
cussions
All this indicates that Echeverria will prob-
ably be more outspoken in the US than were his im-
mediate predecessors.
Central Intelligence Bulletin
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SOUTH KOREA: Seoul's desire to shed its rigid
anti-Communist reputation in the changing political
climate in Asia will be especially evident at the
ministerial meeting of the Asian and Pacific Council
(ASPAC) in Seoul from 14-16 June.
The South Koreans are making no bones about
their intention to use the meeting to press for a
face lifting of the organization's cold-war image.
President Pak Chong-hui, in his opening address,
reportedly will stress the importance of turning
ASPAC into a basically non-political, non-military
organization that pursues economic, social and
cultural cooperation and is open to other nations
in the region.
The council was formed in 1966 with the strong
backing of South Korea, which hoped the organization
would become a political counterweight to Communism
in Asia and a vehicle for increasing Seoul's influ-
ence in Asian affairs. It has remained a political
consultative group, however, largely because the
diversity of its membership has made agreement on
important issues difficult to achieve. The other
members are Japan, Nationalist China, South Vietnam,
Thailand, Malaysia, the Philippines, Australia, and
New Zealand.
South Korea's efforts to alter the nature of
ASPAC reflects deep-rooted concern about Seoul's
own political future. The South Koreans are worried
about their possible isolation as other nations in
the region seek to improve relations with Peking.
Seoul is particularly anxious to avoid being cast
in a role similar to that of Nationalist China and
has, in fact, moved to dissociate itself from Taipei
by withdrawing from regional economic groupings to
which both have belonged. By focusing on regional-
ism with a non-political cast, the South Koreans
hope to strengthen their ties with the rest of the
region in order to avoid diplomatic isolation and
to develop a position that will permit contact with
14 Jun 72 Central Intelligence Bulletin
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to the ministerial meeting.
tinued membership in view of the participation of
Taipei and will not send a special representative
Peking. Toward this end, President Pak will also
call for closer cooperation between ASPAC and other
regional groupings, including ASEAN.
Seoul's appeal for a reorientation of ASPAC
will probably be welcomed by most of the member-
ship, with the exception of Nationalist China. It
may not be feasible, however, to turn the loose
political grouping the council has represented into
a real force for regional cooperation. Most of the
other members do not seem to have a very high
opinion of the organization's utility. Malaysia
has already registered its reservations about con-
14 Jun 72
Central Intelligence Bulletin 5
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PANAMA: Serious negotiations are under way to
head ooff expropriation of the US-owned power and
light company.
In meetings with top Panamanian officials, the
president of Boise Cascade tentatively has agreed
to conditions for ending Panama's temporary take-
over of the Boise Cascade subsidiary. The company
will comply with all Panamanian public utility laws,
pay its fuel bill, and place stock certificates in
escrow to guarantee an adequate investment program.
In turn, negotiations will resume on a new contract
with the government to define the rate of expansion
required and the rate of profit to be permitted the
company.
In private conversations with the US ambassador,.
the company official stressed his desire to reach
an agreement. He denied rumors that Boise Cascade
wishes to sell its Panamanian holdings, claimed
that government intervention on 31 May had come as
a complete surprise, and admitted that his company
may have attempted to put too much pressure on the
Torrijos government.
Panamanian President Lakas has continued to
emphasize that he understands the serious repercus-
sions that expropriation would have and that he
wants to avoid such a move. Boise Cascade's new
approach may undo some of the damage caused by the
insensitivity of its local management. At this
point, chances for a mutually satisfactory settle-
ment appear good.
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COLOMBO
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Polonnaruwa.
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CEYLON: The government is trying to prevent
an expansion of protests by the Tamil minority
against the new constitution.
Although most of the protest activities have
been non-violent, Tamil student militants have as-
saulted and seriously injured several Tamil politi-
cians who support the constitution. Colombo has
responded by sending army reinforcements and im-
posing a full-scale police alert in the predomi-
nantly Tamil northern and eastern regions of the
country. It also has banned all political meetings
and demonstrations in the area and reportedly has
imposed a nighttime curfew in the city of Jaffna.
Additionally, the authorities are trying to meet
some Tamil complaints by promising that the Tamil
language will be used in court proceedings in the
north and east and by attempting to prove that
university admissions have not been weighted against
Tamils.
Ceylon'.s over-all economic decline also has
played a part in generating Tamil discontent, how-
ever. Many Tamils probably sympathize with the
militants, although few have actively endorsed
their violent tactics. The government apparently
hopes that by taking firm action now it can prevent
the current unrest from reaching the proportions of
the widespread violence that marked Tamil protests
in the late 1950s and early 1960s.
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INDIA: Some US firms are complaining that
Indian officials are deliberately obstructing
their operations.
These firms contend that the Indian Government
has adopted a policy of contracting for US imports
only if the goods or services cannot be obtained
elsewhere. They also contend that Indian officials
are less cooperative with American firms than with
other foreign firms in resolving day-to-day prob-
lems, and that minor government officials are har-
assing American firms as a matter of unspoken but
officially sanctioned policy. Senior Indian offi-
cials, however, continue to assure the US Embassy
of an "equal treatment policy."
Although New Delhi has not issued new regula-
tions that discriminate against US trade, antagon-
ism toward the US over the suspension of aid during
the Indo-Pakistani war last December still persists.
New Delhi's attitude has apparently hardened be-
cause the suspension has continued while other
western countries have maintained their aid.
relations are more apparent in New i, however,
than in other Indian commercial cities. Some state
governments continue to seek American investments
and know-how.
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BANGLADESH: Peking has offered to buy some
$12-15 million of jute from Dacca. This is the first
official contact between the two countries since the
Indo-Pakistani war precipitated a break of all ties
between China and East Bengal, and it is being viewed
by the press as a possible prelude to Chinese diplo-
matic recognition. In view of China's close ties
with Pakistan, however, Peking probably will defer
any political moves, at least until after the up-
coming summit talks between its Pakistani allies and
India. In any event, the Chinese probably will with-
hold a decision on diplomatic recognition until after
Pakistan recognizes the Mujib government. Until last
December, Peking was a large purchaser of ,jute from
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Secret
Secret
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