CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A023900100001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 14, 2016
• Document Release Date: August 21, 2003
• Sequence Number: 1
• Publication Date: March 6, 1973
• Content Type: REPORT

Approved For Reuse 2003/08/27: CIA-RDP79T00975A 3 9 0 0 1 0W--Pt
25X1
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
fie. 4I
Approved For Release 2003/08/27 : CIA-RDP79T00975A023900100001-5
 25X1 Approved For Release 2003/08/27 : CIA-RDP79T00975AO23900100001-5
Approved For Release 2003/08/27 : CIA-RDP79T00975AO23900100001-5
 Approved For Rase 2003/08/:&E?RRP79T00975A6900100001-5
No. 0056/73
6 March 1973
Central Intelligence Bulletin
INTERNATIONAL MONETARY DEVELOPMENTS: The dollar
strengthens as monetary authorities prepare for
consultations. (Page 1)
CHILE: Delay in the announcement of congressional
election results will have prolonged repercussions.
(Page 3)
EUROPEAN LABOR: Effort to organize European-wide
labor grouping advances. (Page 4)
ROMANIA-US: First purchase of US airliner by War-
saw Pact country. (Page 5)
TURKEY: Presidential succession (Page 6)
CHINA: Peking turns to London market for copper
(Page 6)
JAPAN: Economic development program for Okinawa
(Page 7)
Approved For Release 2003/08/:&EO-79T00975A023900100001-5
 Approved Forv 6lease 2003
R RDP79T0097W23900100001-5
ffie=
INTERNATIONAL MONETARY DEVELOPMENTS: The dol-
lar strengthened world-wide yesterday in unofficial
interbank trading as monetary authorities prepare
for the meeting in Paris on Friday.
The dollar showed its greatest strength rela-
tive to the pound and Swiss franc. The pound closed
down 2 percent from Friday while the Swiss franc was
off 2.6 percent, but nevertheless still more than
20 percent above the pre-dollar devaluation central
rate. The decline reflects money market anticipa-
tion of lower dollar rates for these floating cur-
rencies if, and when, a joint EC float is realized.
In light trading the dollar also showed modest gains
against other major currencies.
After some preliminary discussions on the prob-
lems of the joint float, the EC finance ministers
called for a meeting on Friday of the Group of Ten
and representatives from the smaller EC countries.
The French intend to use the meeting to convince
the US that the present rate structure should be
defended, but, failing this, Paris may still agree
to support a joint EC float if the UK is included.
Although the West Germans are hopeful that a joint
float can be implemented, Bonn may be forced to
float independently in the absence of an EC agree-
ment.
The Tokyo foreign exchange market probably
will remain closed until the European markets are
reopened. When trading resumes the Bank of Japan
may continue the yen float until mid-year if the
EC agrees to a joint float. The government believes
a long float would help Tokyo's international image
but only if large-scale intervention in the exchange
market can be avoided. Until the market closed last
week, central bank intervention was held to a mini-
mum, partially because of various stop-gap measures
including the delay of central bank approvals of
6 Mar 73 Central Intelligence Bulletin
Approved For Release 2003/Q RDP79T00975AO23900100001-5
 Approved For`tlease 2003/08/27 : CIA-RDP79T00975A 23900100001-5
SECRET
export licenses. Such moves are likely to be con-
tinued unless Tokyo is prepared to accept a sub-
stantially higher yen appreciation than has already
occurred. Tokyo apparently wishes to limit the yen's
revaluation to no more than 20 percent.
Central Intelligence Bulletin
.25X1
Approved For Release 2003/08/27 : CIA-RDP79T00975AO23900100001-5
SECRET
 Approved Fo lease 2003/087 C JI DP79T0097? 023900100001-5
C CHILE: The unusual delay in announcing final
results of congressional elections held on 4 March
will have prolonged repercussions.
Opposition spokesmen were not satisfied by the
Allende government's explanations for postponing the
official total vote tally, despite reassurances from
Interior Minister and army chief General Prats.
The delay centered on returns in Santiago,
where some 35 percent of Chilean voters live and
where top leaders of parties on both sides contended
against others in their own coalition as well as
against opposition candidates. The key question was
whether Communist Senator Teitelboim and Socialist
Senator Altamirano, bitter rivals representing the
deep divisions in Allende's Popular Unity (UP) coali-
tion, were both re-elected. Opposition leaders sus-
pect that the lag in reporting women's votes was de-
signed to ensure the re-election of both when oppo-
sition candidates appeared to have captured all but
one of Santiago's five senate seats.
Official returns now support the UP claim that
it has whittled several seats from the opposition
majority in both congressional houses. Thus the
Christian Democratic and National parties will need
to work more closely than before to oppose Allende's
programs effectively. Neither seems disposed, how-
ever, to continue the cooperation that marked their
common electoral campaign.
General Prats' recent references to the basic
uncongeniality of the two major opposition parties
may be a first step in a renewed effort on his part
to get the Christian Democrats into an exploratory
"dialogue" with the government. Prats apparently
intends to keep the armed forces in the cabinet and
may feel that moderate oppositionists should join
his efforts to ease political tensions and modif
the administration's al programs.
Central Intelligence Bulletin
25X1
Approved For Release 2003/088OR1P79T00975A023900100001-5
 Approved For Release 2003/088 76?t-#PP79T00975A023900100001-5
EUROPEAN LABOR: The decision of the European
affi sates o t e World Confederation of Labor (WCL)
to apply for membership in the new European Trade
Unions Confederation (ETUC) advances the effort to
organize a European-wide, non-Communist labor group-
ing.
European affiliates of the International Con-
federation of Free Trade Unions (ICFTU) already
belong to the ETUC. The French Confederation of
Democratic Trade Unions (CFDT) contends that the
large Communist-dominated unions of France and Italy
with the support of the Soviet-dominated World Fed-
eration of Trade Unions (WFTU) will try to frustrate
the formation of a strong West European labor body.
The CFDT has been urging the other WCL unions to
join the ETUC. The CFDT's campaign, which had the
support of the two Dutch affiliates, has apparently
now picked up the support of the Belgian Confedera-
tion of Christian Trade Unions--the most powerful
of the WCL affiliates.
Some of the ETUC's present members have mixed
feelings about accepting the new applicants, but it
is doubtful that there will be enough opposition to
keep them out. The main opponents will be the ICFTU
unions of France and Belgium. Leading ETUC officials
have said they strongly favor admission of the WCL
unions, and the new ETUC president, British union
leader Victor Feather, also endorses their inclusion.
Some delay may be caused, however, by organization
and policy problems associated with getting the
ETUC itself started.
It is possible that the Communist unions in
France and Italy will also attempt to join the ETUC,
but most of the membership--including new WCL af-
filiates--would strongly oppose their admission.
Enlargement of the ETUC will probably also work
against WFTU's campaign for "pan-European" trade
union organization.
6 Mar 73 Central Intelligence Bulletin
25X1
Approved For Release 2003/0> ( 7Cft1kiDP79T00975A023900100001-5
 Approved Foi elease 2003/08/27: CIA- DP79T0097 023900100001-5
SECRET
RO NIA-US: Romania has become the first War-
saw Pact country to buy US passenger aircraft, thus
adding a new dimension to the already good relations
between Washington and Bucharest.
A contract for the purchase of three Boeing
707-320C long-range jet airliners, spare parts, and
spare engines, valued at $45 million was signed
last week. During the closing days of negotiations,
the Romanians dropped their request that 50 percent
of the total price be paid by Romanian manufacture
of some Boeing parts. Bucharest instead chose a
straight financing arrangement. One of the aircraft
will be configured for VIP service and the others
probably for passenger service. The aircraft, to
be delivered by June 1974, may be used to inaugurate
Bucharest-New York and/or Bucharest-Peking service
by TAROM, the Romanian national airline.
The Boeing deal is not the first manifestation
of Romania's independent stance in civil aviation.
TAROM is already flying six medium range BAC-111-400s
purchased from the UK in 1968. Although the Roma-
nians agreed to buy three Soviet IL-62s about a year
ago, they have continued to postpone delivery dates.
The delays may stem from their concern over two
accidents involving IL-62 aircraft in recent months.
6 Mar 73 Central Intelligence Bulletin
Approved For Release 2003/08dDP79T00975A023900100001-5
 Approved For Release 2003/0 t.gn FDP79T00975A023900100001-5
NOTES
TURKEY: General Faruk Gurler's resignation
as chief of the general staff is his first step
toward becoming president. In order to be eli-
gible for the presidency, Gurler must be a member
of parliament; the defense minister has resigned
from the senate, providing outgoing president
Cevdet Sunay with a vacancy to which he is ex-
pected to name Gurler. The election of Gurler as
president by parliament on 13 March thus seems
assured. It is unlikely that Gurler would have
resigned as general staff chief had he.not been
guaranteed the necessary votes in parliament.
His candidacy presumably signifies that Justice
Party chief Suleyman Demirel, as well as other
party leaders, have bowed to pressures from the
generals after several months of wrangling over
the choice of the next president.
CHINA: Peking purchased 30,000 tons of copper
on the London metals market last month, reportedly
because Chile--one of its major suppliers--was un-
able to meet contract delivery deadlines. In the
last year or so, China has been contracting directly
with copper exporting nations rather than dealing
through London brokers. In view of the problem
with Chile and China's difficulties in maintaining
domestic copper production over the last two years,
Peking probably will return to the world market for
more copper. London sources are predicting that
China will purchase at least 20,000 tons this month.
,25X1
/-a
25X1
(continued)
Central Intelligence Bulletin
Approved For Release 2003/}fWDP79T00975A023900100001-5
 Approved Fo lease 2003/08/;i;.(CR--RQP79T0097400239
00100001-5
JAPAN: Tokyo is considering a ten-yea
r eco-
---I
nomic development plan to reduce Okinawa's
ence on US military bases and raise its per
income closer to Japan's national average.
depend-
capita
The
program would triple per capita income by 1982
through developing tourism, expanding existing
industries, and relocating some plants from the
Japanese mainland. The last move would be in line
with Tokyo's scheme of stressing industrial de-
velopment outside major cities.
Central Intelligence Bulletin
2-
25X1
25X1
Approved For Release 2003/08/2$E1J F 79T00975A023900100001-5
 Approved For``Release 2003/08/27 : CIA-RDP79T00975A23900100001-5
Secret
Secret
Approved For Release 2003/08/27 : CIA-RDP79T00975AO23900100001-5