CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A022100120001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 14, 2016
• Document Release Date: July 18, 2003
• Sequence Number: 1
• Publication Date: June 22, 1972
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
State Department review completed
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No. 0149/72
22 June 1972
Central Intelligence Bulletin
CONTENTS
VIETNAM: Situation report. (Page 1)
ISRAEL - ARAB STATES: Israeli reprisals in southern
Le anon. _7_Pa_g_eTT_
UK: Assessment of government's labor problems.
Page 4)
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MOROCCO-ALGERIA: New cooperation agreements presage
better relations. (Page 9)
THE NETHERLANDS: Coalition parties will attempt to
mege. age ll)
BELGIUM-ZAIRE: Credit agreement (Page 12)
AUSTRIA: Value-added tax (Page 12)
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VIETNAM:
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The South Vietnamese Marine operation into
northern Quang Tri Province has been terminated,
and all units have been withdrawn to government
defense lines along the My Chanh River. The with-
drawing marines were attacked by enemy troops and
tanks, but the attackers were driven off and re-
portedly suffered fairly heavy losses. Nearby,
Communist gunners have stepped up artillery at-
tacks against government strongpoints northwest of
Hue.
Farther south, enemy units in Binh Dinh Prov-
ince have increased pressure against South Vietnam-
ese troops in Phu My District. At least one gov-
ernment position south of the district capital has
been abandoned, and there are indications that ele-
ments of a North Vietnamese division are moving
closer to other government positions along the
coast.
In the delta, heavy fighting continues in
western Kien Tuong Province and along the Cambodian
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eborder. In the lower delta action also reportedly
picked up in Chuong Thien, Bac Lieu, and An Xuyen
provinces. Fighting elsewhere in the country was
light, although in Military Region 3 Communist units
continue to keep government reinforcements from
moving up Route 13 to relieve the South Vietnamese
garrison at An Loc.
Three Soviet surface ships that have been in
the Macclesfield Bank area since mid-May are appar-
ently en route home to Vladivostok. The ships--a
cruiser and two destroyers--are on a northeasterly
course; if they maintain their present speed they
will probably leave the South China Sea late on.21
June. One E-class submarine is believed to be still
in the South China Sea, and two other E-class units
remain east of Taiwan.
The departure of the small flotilla follows
by three days Soviet President Podgorny's visit to
Hanoi. The North Vietnamese are likely to interpret
this as a further sign that Moscow's support is
22 Jun 72 Central Intelligence Bulletin
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ISRAEL - ARAB STATES: During the Israeli
strikes into southern Lebanon yesterday, five Syr-
ian Army officers and a Lebanese Army intelligence
officer were captured.
According to a senior Lebanese Army official,
the Arab officers were touring the Israeli-Lebanese
border area when they were seized. In other areas
of southern. Lebanon, the Israelis stopped and
searched civilian automobiles. The Lebanese mili-
tary believes that Israeli intelligence was aware
of the presence of the Syrian officers in Lebanon,
and that this accounts for the Israeli roadblocks.
In the Arqub region Israeli aircraft hit targets
in the vicinity of Lebanese Army barracks. The
Lebanese Army also reported Israeli shelling near
other villages in the Arqub. Seven Lebanese sol-
diers and policemen reportedly were killed. Ac-
cording to preliminary civilian casuality figures,
12 were killed and 20 wounded. The Lebanese For-
eign ministry has indicated to the US Embassy that
Lebanon will call for a UN Security Council meeting
to discuss the Israeli attack.
The Israeli. action followed two incidents on
Monday in the occupied Golan Heights: a fedayeen
rocket attack on an Israeli tourist bus and the
wounding of two Israeli soldiers in a mine explo-
sion.
Although the Israelis still hold the Lebanese
Government responsible for the massacre by fedayeen-
sponsored Japanese terrorists at Lod airport on 30
May, the potentially serious consequences of any
military reprisal commensurate in magnitude to the
massacre may have helped limit Israeli response so
far to pressure for improved air safety procedures.
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UK: London's labor policy will undergo a
severe test in the coming weeks.
The latest government intervention in the dock
dispute only dealt with an immediate problem. It
did nothing to ameliorate worsening government-labor
relations. The government prevented the imprison-
ment of three shop stewards who had been charged
with contempt of the National Industrial Relations
Courts (NIRC), and this action ended the wildcat
strike of dock workers who were protesting the im-
pending sentences.
It did not address, however, the basic problem
in the dock dispute--whether warehousemen or dockers
should fill and empty containers. The dockers fear
that this move toward modernization will threaten
their jobs. The case of the three shop stewards
cited for contempt, meanwhile, is still before the
NIRC.
The NIRC has made little headway in the morass
of British labor problems. A recent NIRC ruling
that unions were responsible for actions of the
shop stewards was reversed by an appeals court.
This case now is scheduled to be considered by the
House of Lords in mid-July. If that body also rules
in favor of the unions, the Heath government will
be faced with almost insurmountable problems in
dealing with the lack of union discipline and bla-
tant independence of shop stewards.
The Tory government had placed great hopes on
the Industrial Relations Act for reforming labor-
management relations. If subsequent court decisions
overrule the NIRC, the government may be forced to
modify the Act or to supplement it with other meas-
ures such as mediation or conciliation.
The dockers, however, rejoicing in their re-
cent victory, are not likely to be willing to ac-
cept a compromise. Although an official strike has
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been postponed for six weeks, while the national lead-
ers and port employers discuss the issues, the rank
and file did not totally support the postponement.
The government recently announced that a select com-
mittee on nationalized industries will soon reveal
a report that includes a "possible formula to solve
the bitter dock
22 Jun 72
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Recent Agreements Reported Between MOROCCO and ALGERIA
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SPANISH SAHARA
MAURITANIA
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MOROCCO-ALGERIA: Border and economic coopera-
tion agreements signed last week may presage an era
of improved relations.
Two years ago King Hassan abandoned Morocco's
territorial claims to much of the Sahara, including
the mineral-rich Tindouf region of Algeria. Nego-
tiations to delineate a precise border broke down
earlier this year when the Algerians allegedly re-
fused to make some minor adjustments to accommodate
the Moroccans. In order to obtain Algerian backing
during the African Summit, which Hassan hosted last
week, he eased his terms and signed a border agree-
ment, the details of which have not yet been pub-
lished. The King sought to counter charges by his
domestic opposition that he had given away the na-
tional patrimony by having the agreements signed
in the presence of other African leaders, thus
presenting them as a symbol of African unity.
Hassan subsequently claimed that Algerian
Prime Minister Boumediene had pledged support for
Morocco's claim to Spanish Sahara. Literally in-
terpreted, however, Boumediene's statement cannot
be taken as an endorsement of Morocco's claim to
all of Spanish Sahara. Boumediene simply pledged
support for Moroccan efforts to establish sovereignty
over its territories under colonial domination, and
declared that Spain must leave the Sahara. His
statement could be interpreted to imply Algerian
support for Moroccan claims on the Spanish-held
presidios of Ceuta and Melilla, enclaves in north-
ern Morocco.
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THE NETHERLANDS: The three confessional parties
that form the core of the coalition Dutch Government
will attempt to merge, a move that should increase
the government's staying power.
Representatives of the three parties on 17 June
recommended that they offer a single list of candi-
dates in the next national elections and sit as one
party in parliament. They proposed for the interim
some sort of Christian Democratic movement that mem-
bers of their parties and outsiders could join.
These recommendations must now be approved by the
individual parties.
This should stop the flirtation between the
Catholic People's Party and the opposition Labor
Party, the two largest of the ten major parties in
parliament. Without a Catholic-Labor core, no coa-
lition could realistically be formed in the near
term as an alternative to the present government.
Labor Party leaders have reacted glumly to the
confessional parties' announcement. It may cause
them to look with new interest at a proposal that
they and two other opposition parties form a pro-
gressive people's party, even though the prospective
members believe the new party could not hope to
achieve a parliamentary majority for at least ten
years.
If Labor Party leaders are anxious for power
anytime soon, forming a coalition with the confes-
sional parties may yet emerge as the surer path.
The confessional parties might become receptive if
tensions within the present coalition continue to
grow. Nevertheless, a Labor Party leader has es-
timated that the fusion effort, whether or not it
succeeds, has ensured the life of the government
for at least another year.
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BELGIUM-ZAIRE: Brussels' agreement last week
to make almost US$16 million available to the Bank
of Zaire should ease Kinshasa's critical balance-of-
payments problem. Kinshasa may use these funds to
make overdue payments on overseas bank loans. Fail-
ure to meet. these obligations could jeopardize
Zaire's economic development effort. The credit
agreement is the first step in implementing the US
$25-million aid package offered by Belgium earlier
this year to assist Zaire's investment program.
AUSTRIA: Parliamentary approval of a 16-per-
cent val-ue-added tax to be introduced 1 January
has raised fears of unwarranted price hikes when
inflation already is a major problem. Real gross
national product is growing at a rate of nearly
five percent, one of the highest in Europe, and
unemployment is low, but prices are rising at an
annual rate exceeding six percent, also one of the
highest in Europe. The government is seriously
considering the imposition of comprehensive price
controls for a 12-month period starting in Septem-
ber. In a further effort to moderate inflationary
pressures, fueled by an inordinately high rate of
credit expansion during the past year, the govern-
ment and the banking community have agreed to re-
duce excessive bank liquidity by US$100 million.
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Secret
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