CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A025300090001-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: November 28, 2003
• Sequence Number: 1
• Publication Date: September 27, 1973
• Content Type: REPORT

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Top Secret
Central IntelligeZak
nce Bulletin
State Department review completed
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c c4U61
27 September 1973
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27 September 1973
Central Intelligence Bulletin
LAOS: Both sides appear interested in a rapid im-
plementation of the peace protocol. (Page 1)
CHILE: Efforts by Christian Democrats to modify
the junta's policies have been rebuffed. (Page 3)
JAPAN: Tokyo probably will ease controls on the
inflow of foreign funds. (Page 4)
AFGHANISTAN: Pro-Soviet Communists reportedly being
appointed to high government positions. (Page 5)
FOR THE RECORD: (Page 6)
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LAOS: Steps to implement the protocol signed
on 14 September are moving forward as both Prime
Minister Souvanna and Pathet Lao negotiator Phoumi
Vongvichit grapple with a variety of practical prob-
lems. Both sides appear interested in a rapid im-
plementation of the agreement, but things may not
work out as quickly as they would like.
Within 24 hours of the signing of the protocol,
Phoumi and Souvanna were busy ironing out details of
the agreement. Phoumi also has asked the Soviet and
British embassies to reactivate the International
Control Commission. machinery quickly to facilitate
implementation of the protocol. Phoumi left for
Sam Neua late last week, where he presumably will
get fresh instructions.
Meanwhile, Souvanna is lobbying among key Na-
tional Assembly deputies to ensure smooth approval
of the peace agreement and of the new coalition
government. Some of the deputies are determined,
however, to extract political favors before letting
Souvanna have his way. In addition, some rightist
politicians, in an effort to sidetrack the agreement,
are spreading scare stories in Vientiane of an im-
pending North Vietnamese offensive. These problems
are probably manageable, but they could cause some
delay in the formal investiture of a new government.
Souvanna has also named his chief negotiator,
Pheng Phongsavan, to head the government's delega-
tion to the Joint Committee to Implement the Agree-
ment, a body created to work out the day-to-day
problems of implementation. Finally, Souvanna has
tentatively decided to name Sisouk na Champassak as
minister of defense in the new government, Pheng as
minister of interior, and--despite the misgivings of
army leaders--Ngon Sananikone as minister of finance.
(continued)
27 Sep 73
Central Intelligence Bulletin
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The Communists have not yet provided a list of
their nominees for the new government, but Phoumi
presumably will bring back a roster when he returns
from Sam Neua. The Communists are insisting on
adequate security arrangements prior to the arrival
of their personnel. The first step in this process
is the positioning of Pathet Lao police and military
27 Sep 73 Central Intelligence Bulletin
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C CHILE: The junta has rebuffed attempts by some
Christ an Democrats to influence the military to
modify some of its political actions and policies.
In addition to this possible alienation of potential
supporters, the military's high-handed tactics may
give other supporters pause.
The military does not appear totally inflexible
on its policies, but its apparent intolerance and
repressiveness could cause further problems inter-
nally and subject it to increased international crit-
icism. While the military junta is concerned with
its international image, and is making efforts to
improve it, it has committed excesses that conjure
up unfortunate historical comparisons.
The banning of all Marxist parties and yester-
day's decree "recessing" the remaining political
organizations as a means of promoting "national
unity" demonstrate the government's determination
to keep the left from regaining power. The junta's
tight hold on the country could ease as it secures
its position further, but if the left regroups and
is able to launch an urban or rural insurgency, even
stronger measures are possible.
The Christian Democrats will be disheartened
by the turn of events. Neither a split in the
party nor a break between it and the regime seems
likely now, but at the same time the junta cannot
afford to take the party's continued support for
granted.
27 Sep 73
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JAPAN: Tokyo probably will ease controls on
the inflow of foreign funds within the next few
months. This would reverse a policy initiated in
mid-1971 when restrictions were tightened to limit
speculative dollar inflows. Japan now has the most
restrictive controls of any major industrialized
nation.
A decline in foreign exchange reserves, six
consecutive months of balance-of-payments deficits,
and some foreign as well as domestic pressure for
internationalization of the yen have prompted Tokyo
to consider altering its tight control system. In
addition, the stability which has prevailed in
Tokyo's foreign exchange market since March has
made monetary officials confident that some loosen-
ing of restrictions can be accomplished without
stimulating speculative inflows. Any policy changes
will come gradually, however, and the results will
be closely monitored by Tokyo. One of the first
steps may be the removal of limits on portfolio in-
vestment in Japanese stocks by foreigners.
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AFGHANISTAN: Recent appointments to key gov-
ernment positions appear to reflect a growing strength
for local pro-Soviet Communists.
US officials in Kabul continue to receive re-
ports alleging that appointees to high positions
within the government include significant numbers of
members of or sympathizers with Parcham (Banner),
the larger of the two pro-Soviet factions in the
Communist Party of Afghanistan. They are said to
hold high posts in education and economic develop-
ment. Earlier reports had indicated that several
members of the ruling Central Committee and of the
cabinet may be members of Parcham. Some of the
allegations are being made by disgruntled former
officials, ousted by the republican regime, who may
be attempting to discredit their successors. The
US Embassy notes, however, that the allegations are
appearing too often to ignore.
Recent reporting has indicated a split between
President Daud and the left-wing young military of-
ficers who are on the government's Central Committee.
Any increase in Parcham influence at key levels of
the government would appear to weaken Daud's posi-
tion vis-a-vis his opponents. Little is yet known
about the role played by Parcham, a small but co-
hesive party prior to the coup in July, in the events
leadina to the overthrow of the monarchy.
27 Sep 73 Central Intelligence Bulletin 5
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Egypt-Libya: Presidents Sadat and Qadhafi are
each scheduled to deliver speeches in Egypt on the
anniversary of President Nasir's death on 28 Septem-
ber; Sadat will speak in Cairo, and Qadhafi will
address Libyan students in Alexandria. The follow-
ing day, both presidents will give keynote addresses
at the opening session in Cairo of the Egyptian-
Libyan constituent assembly that will draft a con-
stitution and nominate a president for the "united"
Egyptian-Libyan state.
EC: The EC Commission has decided to recommend
common agricultural policy regulations for protein-
rich crops, particularly soybeans, following dis-
cussion in the Council this week of the protein
supply situation in the community. The specific
proposals, which are likely to be submitted by mid-
October, are not yet known, but they will probably
encourage--largely at French urging--long-term de-
velopment of EC soybean production in light of the
alleged uncertainty about future US supplies. The
French are nevertheless aware that their eventual
soybean production capability will account for only
a small portion of their needs.
Iran: According to the US consul in Khorram-
shahr, the workers' strike at the Abadan Refinery
has ended without violence.
'These items were prepared by CIA without consulta-
tion with the Departments of State and Defense.
27 Sep 73 Central Intelligence Bulletin
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