WEEKLY SUMMARY

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T01137A000300030001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 28, 2016
• Document Release Date: May 11, 2010
• Sequence Number: 1
• Publication Date: September 20, 1968
• Content Type: REPORT

Secret
2 S SEP 11968
DIRECTORATE OF
INTELLIGENCE
WE SUMMARY
sews-11
1013
20 September 1968
No. 0038/68
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SECRET
i
CHILEAN DROUGHT CAUSES RURAL UNREST
The most severe drought in Chile
in more than a century is causing unrest.
among landowners and their workers and
~~~ sharecroppers. Rainfall in the northern
part of the agriculturally important Cen-
tral Valley is only 20 percent of normal
this year, and snowfall in the Andes, on
which Chile depends for summer irriga-
tion, has been very light. As a result,
agricultural production could decline
by more than 25 percent. In addition
to the problems caused by the drought,
the landowners continue to be squeezed
by credit restrictions, price controls,
and high taxes.
Against this background of economic
Area Severely hardship, charges of widespread rural
Af e~cted by Drought unemployment and large-scale firings of
l peasant workers are being heard. The
SANTIAGO
landowners claim that they cannot absorb
the drought losses without dismissing
some workers. The workers claim that
D even if this is true, the owners are
rsl using drought-induced layoffs to get
rid of rural union leaders and "trou-
Area Moderately blemakers. " Even the minister of the
Affected by Drought interior, who usually takes a relatively
hard line against strikers and labor
agitators, has stated that owners who
dismiss their help now should have their
farms seized by the workers. Seizures
u t l have already occurred in several places,
and medium- and large-scale farmers are
:_f > banding together and some are arming
themselves to counter threatened sei-
zures.
r
Some leftists, both inside and
outside the government, wish to capita-
lize on the drought problems by accelerat-
ing expropriations under the agrarian
q, v
reform program. They claim that drought
relief programs will only strengthen the
91163 68
SECRET
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 private agricultural sector and
that farms should be turned over
to the workers before such re-
lief is implemented. The agrar-
ian reform agency, which is al-
ready under fire because of its
inefficiency, may indirectly en-
courage workers to take over the
drought-hit farms while expro-
priating the better ones itself.
It may also decide to concen-
trate its future efforts in the
south, which has been less af-
NEW APPROACHES NOT LIKELY TO SOLVE ECUADOR'S PROBLEMS
The Velasco administration's
hastily conceived measures for
Ecuador may well be sowing the
seeds of renewed political insta-
bility and a more serious fiscal
crisis.
Jose Maria Velasco has made
several major moves intended to
alleviate the fiscal crisis that
was his most urgent problem when
he became president for the fifth
time on l September. 'They are not
likely to solve Ecuador's basic
and chronic financial difficul-
ties, however, and have` already
aroused political opposition.
Among the palliatives are plans
to nationalize control of major
imports and exports, the renego-
tiation"of the concession con-
tracts for oil reserves recently
discovered, and a variety of 'tax
changes.
come possibilities that the defi-
cit process will probably acceler-
ate: Portions of the budget were
adopted with complete disregard
of their contents.
In his personalist exercise
of power, Velasco has always rated
the supposed personal loyalty
of'his subordinates above any
other qualifying factor. This
policy helped destroy the effec-
dericit will probably reach some
$50 million by the end of 1968,
and the 1969 budget hastily con-
ceived and passed by the congress
in early September sets expendi-
ture levels so unrelated to:in-
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 undertaken under auspices of the Science AiA i. to determine applicability of
November 1966 - Project ARGO initiated jointly by
of Agriculture, Commerce, Interior and Transportation; Administrators for A.I.D.
Special Assistant to the President for Science and Technology and Secretaries
February 1968- After clearing appropriate officers from each of the Civil
and NASA; Director,-PEP,-and O.C.E. Civil Works Directorate.
encies involved, and considerable work with TK materials at NPIC and at
a local cleared contractor's facility, a report was
included ' forwarding memo to the Heads of the Agencies who
systems could be of service to their operations. `Two recommendations were
,1) that there be established a mechanism whereby the Agencies
could routinely make their needs and interests known to the, Intelligence
of its own interests and write a report on its findings, which would
- ,...2) that each Agency evaluate the ARGO conclusions from the standpoint
include the definition of "pilot" studies they planned to undertake.
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February 1968 - A letter fro then Acting Chief, DD/I Information
Requirements Staff, t AC/DCI/NIPE, in response to conments 25X1
letter stated, among other things: "It appears that paragraph
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 ,by the civilian agencies;".,and "it is essential under current budgetary and
,personn;,1 restrictibns_that the workload inposed on NPIC by future civilian
programs be held to a minimum and that services to those agencies must be
subordinate to \PIC's primary mission." (As of this date NPIC hash expended
March 1968 - Letter from Mr. Helms to~ states that
3,279 man-hours in supporting Project ARGO.)
Steering Committee.:.Two concerns noted: "protectjon of this vital source of
.intelligence," and ".se of this material for civilian purposes (should) not
,compete with the collection of exploitation of satellite photography for
would represent him for liaison wit} las Chairman of the ARGO
intelligence purposes."
July 1968 - Memo from[ to Civilian Agency heads proposing to
continue ARGO Steering Committee as a mechanism which would (1) collect
and consolidate needs, (2) make those needs known to intelligence community
and, (3) discuss procedures for handling classified photography.
1969 [facility established to accommodate Civil Agency use
systems, have reached a point at which I have become concerned about the
involvement of intelligence resources," and "Let me make clear that I and
my colleagues in NPIC believe that the U.S. government should push ahead
vigorously with a satellite earth resources program for civil purposes."
May 1970 - Letter from Director, NPId to DD/I noting that: "Civil uses of
-satellite photography, and civil'plans for developing satellite photographic
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 belief that the achievement of the ARGO goal's-is essential if the government
October 1970 - Memo for Heads of Civilian Agencies and NPIC from
transmitting ARGO Steering. Committee Charter, also stating, "It is my
is to realize the opportunities inherent in the resources which we possess
and I hope you will encourage their imaginative use."
November 1972 - Memo for ARGO Committee fro Chairman, ARGO
Committee noting plans for ARGO meeting in December 1972.
November 1972 - M/R fro noting subjects he had suggested to
for 15 December ARGO meeting: a) explore possible use of WAG or
?I%k -t indexing by NASA, b) Review and update of civil agency requirements
in light of ERTS materials, c) Study of civil requirements against automated
NRO, NASA, ETL, NOAH, EPA and CCWREX. Agenda was essentially as suggested
15 December 1972 - ARGO meeting held in NEDB, abi chaired by
and attended by representatives from: State, OCE, USGS/EROS, NPIC, OEP, OMB,
January 1973 - Future status of ARGO is now undetermined with deva of OST.
ItPer ry y.