NATIONAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A028800010032-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 20, 2016
• Document Release Date: March 17, 2006
• Sequence Number: 32
• Publication Date: April 19, 1976
• Content Type: REPORT

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Top Secret
National Intelligence
Bulletin
State Dept. review completed
Top Secret
April 19, 1976
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National Intelligence Bulletin
April 19, 1976
BOLIVIA-PERU-CHILE:
Formal talks begin . . . . . . . . . . . . . . . . . . . . . .
7
CANADA: Offshore
drilling approved . . . . . . . . . . . . . . . . . . . . . . .
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-10666pieidby Chile
Territorial Losse ' e r ofth Fad Ic
(1879-1884)~:
Lost by Bolivia 4
Aric
etained by Chile
Pisagu
tuna \
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Returned o Peru 1929
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National Intelligence Bulletin
April 19, 1976
Formal talks between Peru and Chile about giving Bolivia an outlet to the sea
are scheduled to begin today. Despite expressions of goodwill by both countries,
political constraints militate against any territorial concession to La Paz.
The proposed corridor would parallel Chile's northern border through territory
that Peru lost to Chile in the War of the Pacific a century ago but that Chile cannot
give away without Peruvian consent. This restriction, plus the impracticality of
building a port north of Arica because of the terrain, suggests that Chilean President
Pinochet's offer last December 15 to grant Bolivia a 15-kilometer-wide corridor to
the sea was an empty one.
Peruvian President Morales Bermudez' apparent willingness to acquiesce in a
Bolivian corridor is tempered by a long-standing disinclination of the military to
accept the loss of the territory as permanent. The area in question contains
substantial copper and nitrate deposits.
Bolivian President Banzer, despite his public commitment to gaining access to
the sea, is backing off from earlier optimistic statements and is predicting arduous
discussions that could last through this decade. Banzer claims to have a personal
commitment from Pinochet to act unilaterally, whether or not Peru agrees, by
1979-the 100th anniversary of Bolivia's loss of its coastline.
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Prudhoe Bay
BEAUFORT
SEA
G r e e n I a n
(Denmark)
Atlantic Ocean
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National Intelligence Bulletin
April 19, 1976
Ottawa has given a Canadian petroleum company final approval to drill two
offshore oil wells in the Beaufort Sea this summer, provided certain environmental
precautions are taken.
The cabinet decision, pending since 1973, was made despite the opposition of
environmentalists who claim that the project entailed unacceptable risks to the
adjacent ocean and land areas of both Canada and the US.
Criticism of the project increased in early February, following publication of an
environmental study. The study concluded that, even though there was little risk of
a blowout and a resulting oil spill, such an eventuality could not be dismissed. An oil
spill under conditions existing in the drilling area might require several years to
control and would cause enormous ecological damage. In the face of mounting
environmental concern, the cabinet deferred a decision on the project and agreed to
consult with the US.
Ottawa hopes that the drilling guidelines that it has laid down will minimize the
risk of a blowout. Drilling must be terminated five weeks before the end of the
drilling season, at which time the possibility of further activity will be reviewed. This
five-week margin will help ensure that any spill that does occur can be brought
under control before the onset of winter ice conditions, which would prevent
capping the blowout until the following summer.
The cabinet's approval of drilling in the Beaufort Sea is a gamble. The decision
could undermine Canada's efforts at the Law of the Sea Conference to obtain special
rights to control pollution by ships in Arctic waters. In addition, a major spill could
set back future Arctic offshore energy development in both Canada and the US.
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