NATIONAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A028300010036-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 16, 2016
• Document Release Date: March 31, 2005
• Sequence Number: 36
• Publication Date: November 21, 1975
• Content Type: REPORT

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National Intelligence
Bulletin
State Department review completed
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National Intelligence Bulletin
November 21, 1975
CONTENTS
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SPANISH SAHARA: Algeria sets stage
for full-scale UN debate . . . . . . . . . . .
CYPRUS-UN: Greek Cypriot case
supported overwhelmingly by General Assembly .
. . . . . . . . .
. . . . . . . .
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ITALY: Rome to introduce
medium-term economic plan . . . . . . . . .
. . . . . . . .
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INTERNATIONAL ECONOMIC SUMMIT: Reaction
to last weekend's summit . . . . . . . . . . .
CHINA: New attention
to education . . . . . . . . . . . . .. . .
. . . . . . . . .
. . . . . . . .
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 Azores
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National Intelligence Bulletin November 21, 1975
Algeria yesterday sharply denounced the recent Spanish-Moroccan-Mauritanian
agreement on Spanish Sahara and set the stage for a full-scale UN debate on the
future of the territory.
In a formal note attached to UN Secretary General Waldheim's latest report on
Spanish Sahara, Algeria declared the tripartite agreement null and void and attacked
Spain for not fulfilling its responsibilities as the administering power of a
non-self-governing territory. Algiers argued that Spain could transfer administrative
responsibilities only to the Saharan people or, failing that, to the UN itself.
Spain, however, claims to have acted in accordance with UN directives. The
Spanish have rationalized their decision to transfer administration of the territory to
Rabat and Nouakchott by asserting that the question of sovereignty is a separate
issue that only the UN can resolve.
Algeria also insisted that Morocco and Mauritania do not have the right to
exercise authority in the territory unless the General Assembly officially recognizes
that their claims take precedence over self-determination. The Algerians have been
trying to return the Saharan problem to the General Assembly, which in past
resolutions has strongly supported the principle of self-determination.
In the middle of a wide-ranging conversation Wednesday with US Ambassador
Parker, Algerian President Boumediene reiterated that he had not been consulted
about the deal worked out in Madrid and that he does not intend to accept it. He
accused the US of putting pressure on Spain to accede to Morocco's demands.
Boumediene stated that partition of the Sahara in defiance of the popular will would
upset the power balance in the region and, if it came to that, Algeria would have to
reappraise its policy of peaceful co-existence with its neighbors.
Boumediene's remarks, coupled with Algerian press statements, suggest Algiers
is willing to support a struggle by the Polisario Front, a pro-independence Saharan
guerrilla movement that Algiers backs. A recent article in Al-Shaab, a daily
newspaper that usually reflects the views of the Boumediene government, declared
the best response to the tripartite deal was the determination of the Saharan people
to resist the Moroccan-Mauritanian "invaders." The article added that Algeria, as a
matter of principle, would support Saharans struggling to liberate their territory.
Algeria is unlikely to initiate direct military intervention, but it will continue to
supply arms, a sanc
the Polisario Front.
tuar
a propaganda outlet, and possibly some "volunteers" to
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National Intelligence Bulletin November 21, 1975
The Polisario Front is quietly acquiring a foothold in the Sahara. A French
official recently told US Ambassador Handyside in Nouakchott that units of the
Polisario Front have taken over the southern Saharan town of Guera and have
established themselves along the Mauritanian-Saharan border in an attempt to fill the
vacuum created by Spain's withdrawal from two thirds of the territory. The Front
has declared it will forcibly resist the agreed-upon Mauritanian-Moroccan
administration of the region.
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The UN General Assembly last night voted overwhelmingly for a resolution
supporting the Greek Cypriot case against Turkey.
The outcome will make the Greek Cypriots more amenable to resuming
intercommunal talks with the Turkish Cypriots. The Turks, smarting from this
rebuff by the UN, will probably hesitate to resume negotiations.
Greek Cypriots were determined to secure passage of a resolution blaming the
Turks for not implementing last year's General Assembly resolution, which called
for withdrawal of foreign troops from Cyprus, return of refugees to their homes, and
negotiations on an "equal footing."
The Turks and Turkish Cypriots were determined to oppose even a
reaffirmation of last year's resolution. Their second objective was to gain equal
status in the UN for the Turkish Cypriot community by insisting that Turkish
Cypriot leader Denktash be allowed to address the assembly. This failed, also.
The resolution that was passed last night affirmed last year's resolution and
condemned Turkish colonization of Cyprus. It received 117 votes, with 9
abstentions and 1 negative vote by Turkey.
Greek Cypriots will call the assembly's action a victory. For the Turks, the vote
dramatizes their increasing isolation even from the Muslim states, on whose support
they had counted. Although this may increase their flexibility in the long run, for
the time being they are likely to take a tough line. They may delay the resumption
of negotiations until after the start of the new year, and may begin to talk again of a
unilateral declaration of independence for the Turkish Cypriot zone.
At the same time, the Turks are mindful that the question of military aid will
again come before the US Congress next month. This could prompt a unilateral
gesture, such as the withdrawal of more Turkish troops from Cyprus. Such a move
could easily be justified to the Turkish public as a money-saving action rather than a
concession to the Greeks.
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 Approved For Releas
National Intelligence Bulletin
November 21, 1975
The Italian government will introduce today a medium-term economic plan
involving $50 billion in investments. Prime Minister Moro undoubtedly hopes the
draft plan will disarm his critics on the left, who want a coherent investment policy
to ensure long-term employment.
The proposed program is not a formal five-year plan but is designed as a guide
for public and private investment decisions. Debate on the plan is expected to be
prolonged, and its implementation is doubtful.
No new sources of financing are identified, and only a small part of the
proposed investments are already funded. The government, meanwhile, is trying to
limit the budget deficit to help control inflation. At the same time, a profit squeeze
has reduced the self-financing ability of private companies.
The plan is most useful as an indication of Italy's basic targets. Its principal
focus is on redirecting, through a new Fund for Industrial Reconversion, the
structure of industry in order to increase competitiveness. A commission
representing labor, business, and government is to be established to oversee the
public and private industrial sectors. The draft also outlines investments for energy,
development of southern Italy, export promotion, construction, agriculture, and
transportation.
Some measures in the plan incorporate proposals from the anti-recession
package ratified by parliament last month. An expanded version of the energy plan,
still being debated in parliament, is also included, as well as a proposal for increasing
capitalization of public enterprises.
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National Intelligence Bulletin November 21, 1975
INTERNATIONAL ECONOMIC SUMMIT
Reaction to the economic summit last weekend at Rambouillet, France, has
been generally favorable, but many countries want to know more details.
The break in the French-US impasse on exchange rates and the renewed
determination of the assembled leaders to move forward on multilateral trade
negotiations have been favorably received. Many, however, deplore the failure to
adopt common policies on energy, relations with the Third World, and cooperation
to end the recession. Some observers lament the apparent lack of progress toward
strengthening the industrialized countries' position against the oil producers.
Most governments have commended the French-US monetary agreement,
although the UK and Japan may voice some objections to the accord if it places
limits on their ability unilaterally to decide exchange rate practices. 1 -1
ter countries have
generally reacted tavorably either because a compromise agreement on the exchange
rates reflects their own positions or because it will mean that the International
Monetary Fund can now proceed with an overall monetary reform package.
Paris is playing up the importance of the monetary accord. Finance Minister
Fourcade said in a press interview that the agreement will lay the groundwork for a
system of stable but adjustable exchange rates. Paris-seeking to protect its
competitive position abroad-is currently attempting to buoy the dollar's value by
intervening heavily in the exchange market and by lowering domestic interest rates.
The pledges to avoid trade controls and to move forward in multilateral trade
negotiations have received favorable press comment. Some observers are assuming
that there was an agreement in principle to defuse the EC-US controversy over how
to handle agricultural trade in the negotiations; they will be watching closely for
signs of progress. The British press is reporting that Prime Minister Wilson received at
least tacit approval to apply trade controls covering two or three industries.
The promise to work jointly for economic recovery while continuing to battle
inflation has been greeted with general skepticism. Press reporters note that the
European countries had failed in several past attempts to improve economic policy
coordination, and they hold out little hope for change.
The disavowal of any intention to create new international institutions has
tempered criticism of the summit forum in EC countries that did not attend. The
French are taking much of the credit for channeling future cooperation through
existing international organizations.
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National Intelligence Bulletin
November 21, 1975
EC finance ministers and central bank governors, at an EC Council meeting on
Tuesday, were briefed in general terms by Italian Treasury Minister Colombo.
Although none of the ministers at the Council meeting expressed dissatisfaction at
being left out of the summit, the Dutch have shown displeasure at not being invited.
The EC will now intensify its own consultations prior to a meeting next week
of the Group of Ten-the leading industrialized countries-and the January session in
Jamaica of the IMF committee examining international monetary reform.
Thus far it has been primarily the communists in Western Europe who have
responded negatively to the summit, which they have characterized as a US victory.
In Italy, a communist newspaper said it is a "sin" that the US was able to achieve its
aim of retarding the process of European unification by dividing the EC into
participants and nonparticipants. The French communist press stressed the
continued "supremacy" of the dollar.
Soviet commentary has emphasized that the summit constituted a Western
attempt to form a united front against developing countries and that, for the
industrialized states, the summit only confirmed capitalist difficulties without
resolving any problems. A Chinese news agency dispatch gave relative)
straightforward treatment of the summit.
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National Intelligence Bulletin
November 21, 1975
After years of inner party wrangling over educational policy, Peking has
apparently secured Mao's endorsement for policy changes that would raise the level
of academic training in China's universities.
The renewed concern for academic quality, in line with China's drive to
modernize the economy by the end of the century, would in effect reverse the
educational policies adopted during the Cultural Revolution of the mid-1960s.
Those policies, which put primary emphasis on politics rather than on scholastic
achievement, were staunchly defended by the party's left wing and have rendered
China's universities virtually ineffective as institutes of higher learning.
During the Cultural Revolution, party leftists dismissed the study of basic
scientific theory as unnecessary and promoted the notion that students were on a
par with their teachers. They also advocated that universities devote most of their
time to teaching politics, which consisted mainly of Mao's writings.
In their attacks on the educational system and on teachers in particular, the
leftists were in fact echoing Mao's own sentiments at the time. His recent
repudiation of these policies, however, makes it impossible for party leftists to
contend that they are acting on behalf of Mao in their opposition to higher
educational standards. The Chairman's turnabout on this issue is the latest and most
startling confirmation that he has now abandoned some of his visionary ideas of the
late 1950s and 1960s and that the party left wing is currently in eclipse.
Possibly emboldened by Mao's show of support for the new educational
policies, the minister of education made a speech in September strongly criticizing
the educational policies of the Cultural Revolution. The minister claimed that the
goal of education is not to send students to the rural areas to work as common
laborers but to equip them with fundamental knowledge that they can apply to their
field of work. He specifically criticized Peking University for failing to educate its
students properly.
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November 21, 1975
Peking is not likely in the short term to abandon its policy of sending the
majority of university graduates to the countryside, where they are most needed.
Whatever changes may occur in this policy over the longer term are likely to be
gradual.
As a result of the minister's speech, Peking and Tsinghua universities, two of
China's best, announced that current curricula will be revamped, that science and
research will be emphasized, and that entering students will be required to take
examinations. Entrance examinations have been a particularly contentious issue
since 1973, when a coalition of party leftists and some military men opposed their
use and forced Peking to put less emphasis on them.
China's intellectuals reportedly have been reluctant to help the universities
improve their curricula for fear that educational policy will suffer yet another
reversal. Despite their misgivings, it appears that the majority of China's political
leaders are intent on improving the educational system as the first step toward
modernizing science and technology.
Although Premier Chou En-lai complained as early as last January that the
current educational system is not adequate for China's economic needs, it was
apparently not until Mao's approval of changes was made known in June that
educators began making improvements. Mao's recent statements on education, his
first since the Cultural Revolution, have been the missing ingredient in the
long-standing efforts of people like Chou En-lai and Teng Hsiao-ping to make
much-needed changes in the universities.
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