CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R000800020202-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 19, 2016
• Document Release Date: January 18, 2002
• Sequence Number: 202
• Publication Date: September 7, 1972
• Content Type: BULL

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DIRECTORATE OF
INTELLIGENCE
Central In tellien ce
0
ulletin
State Dept. declassification & release instructions on file
N2 54U
7 September 1972
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'fhe CENTRAL INTELLIGENCE 13ULLETIN is produced by the
Director of Central Intelligence to nn:et his responsibilities for providing
current intelligence bearing on issues of national sectiri.ty to the President,
the National Security Council, and other senior govern-nent officials. It
is produced in consultation with the Departments of State and Defense.
When, because of the time facto:', adequate consultation with the depart-
i u iit of primary concern is not feasible, items or portions thereof are pro-
chiced by CIA and enclosed in brackets.
Interpretations of intelligence information in this publication represent
immediate and preliminary views which artc subject to modification in the
light of further information and more complete analysis.
Certain intelligence items in this publication may be designated specifically
for no further dissemination. Other intelligence items may be disseminated
further, but only on a need-to-know basis.
WARNING
This document contains information affecting the national
defense of the Unit.,d States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
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No. 0215/72
7 September 1972
Central Intelligence Bulletin
VIETNAM: Situation report. (Page 1)
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FINLAND - EAST GERMPNY: Helsinki moves to establish
normal relations with East Germany. (Page 3)
USSR: Soviet workers may be engaged in work slow-
downs. (Page 4)
CHILE: P.llende may crack down on rightist foes.
Page 5)
5X6
CUBA-PANAMA: Havana will release Panamanian flag
ships and a prisoner accused of anti-government ac-
tivities. (Page 1)
CENTRAL AMERICA: A further setback to the Common
Market. Page 8)
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4`~? VIETNAM: South Vietnamese forces have been
driven from a position in Quang Tin Province, but
they repulsed new enemy attacks in the western high-
lands.
Two companies of the South Vietnamese 2nd Di-
vision supporting territorials defending Hill 211
north of the district town of Tien Phuoc in Quang
Tin Province broke and ran early yesterday, allow-
ing the Communists to seize the position. The Com-
munists apparently are continuing to move toward
the town, which was the target of an enemy rocket
and mortar attack early yesterday.
Friendly forces repelled a battalion-sized
attack near the Ngo Trang resettlement camp seven
miles north of Kontum City. The assault, which
was preceded by a 250-round shelling, was probably
carried out by the B-3 Front's 28th Regiment.
Early yesterday, an element of the North Vietnamese
320th Division shelled and assaulted a South Viet-
namese field position six miles northeast of the
Tlianh An district town and briefly penetrated the
defensive perimeter before being forced to pull
back. Elsewhere in Pleiku Province, the enemy
shelled the Plei Me, Duc Co, and Plei Mrong ranger
camps and several artillery bases.
There were no significant developments on the
Quang Tri battlefront or in the Que Son Valley.
(SECRET NO FOREIGN DISSEM)
7 Sep 72 Central Intelligence Bulletin
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25X6
FINLAND - EAST GERMANY: Finland has become
the first country in Western Europe to initial a
treaty for full diplomatic relations with East Ger-
many.
The agreement is expected to be signed in Hel-
sinki early next month and will come into force 30
days later. The treaty has three major provisions:
full diplomatic relations at the ambassadorial level,
recognition of Finnish neutrality, including accept-
ance of a non-use-of-force principle, and an agree-
ment to open bilateral negotiations on "juridical
and economic questions dating from World War II"--
presumably including the touchy subject of repara-
tions for German war damage in Finland.
Despite Foreign Minister Karjalainen's assur-
ances that Finland will continue to pursue its pol-
icy of parallelism with the two Germanies, Hel-
sinki's decision to push ahead with Pankow reflects
a significant change in policy. Moscow may have
prompted Finland's decision by indicating approval.
of the Finns' desire to complete their draft free
trade agreement with the EC.
The Finnish move is not expected to initiate
a flurry of recognition of Pankow by other Western
European countries, but other Scandinavian govern-
ments are interested and the So'.:ial Democratic gov-
ernment in Sweden has hinted that it may announce
an intention to recognize East Germany at the party
congress in October. (SECRET NO FOREIGN DISSEM)
7 Sep 72 Central Intelligence Bulletin
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USSR: Soviet workers, possibly reacting to
rumors of food shortages and to the slow improvement
in the supply of consumer goods, may be engaging
in work slowdowns.
The US Embassy in Moscow reports that a slow-
down strike has occurred in one Moscow factory and
the Belgian Embassy there has passed an unconfirmed
report that this activity is "rotating" from one
factory to another on a daily basis. The reports
probably reflect scattered slowdowns rather than
an organized effort. Although slowdowns and work
stoppages occurred in 1962 when meat prices were
increased and again after the disastrous 1963 har-
vest, Soviet workers probably are not organized
sufficiently to stage a rotating work stoppage.
The appearance of even scattered strikes, however,
could be evidence of the workers' deep concern
over the adequacy of food supplies this fall and
winter, despite the government's recent assiurances,
underscored by large grain purchases from the West.
Moscow's decision to restrict hard currency out-
lays for consumer goods in order to pay for their
grain purchases may add to workers' discontent in
the coming months. (SECRET)
7 Sep 72 Central Intelligence Bulletin
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CHILE: The Allende government is setting the
stage for a crackdown on some of its right-wing
opponents, and a transport strike today could set
off more trouble.
In a major sp.,ech on 5 September, Allende said
that "a sinister foreign contribution" marks right-
ist activities, and his government later reiterz.:ed
its intention to expel foreign residents it suspects
of helping to disturb public order. At a gigantic
rally celebrating the second anniversary of his
election on 4 September, Allende claimed that a
"S.:NCember Plan" to overthrow his administration is
afoot, and supporters have elaborated this charge.
Socialists and Communists are making a noticeable
effort to submerge their deep differences and co-
ordinate street resistance to increasing opposition
activity.
Although both Allende and the president of the
Senate, a Christian Democrat, have expressed the
need for a joint effort to reduce tensions, most
of their backers who favored this approach in the
past are now s.i.lennt.
25X1C the Christian Democrats are singularly
united in their determination to confront the gov-
ernment at every opportUn.LLY. They organized an-
other large student protest on 5 September and are
participating in plans for a massive opposition
demonstration next week.
Some business groups that have been trying to
force the ouster of Allende are backing a nation-
wide transport strike planned for today to protest
rate controls, lack of spare parts, and other eco-
nomic problems. If the thousands of truck drivers
and owners of most private taxis and buses join in,
as has been predicted, severe dislocation and further
disturbances are likely. (SECRET NO FOREIGN DISSEM)
7 Sep 72
Central Intelligence Bulletin 5
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CUBA-PANAMA: Havana has agreed to rei-ease to
Panama two :3hips of Panamanian registry and one of
the prisoners it captured last December and accused
of involvement in anti-government operations.
According to a Havana news release, the agree-
ment was reached by Cuban authorities and Panamanian
University rector Romulo Escobar Betancourt, who re-
cently led a 63-member student delegation on an ex-.
tensive visit to Cuba. A Panamanian spokesman in-
dicated that the transfer will take place in mid-
October.
t5 Cuba currently holds three crewmen from the
ships. The one to be released is the naturalized
Cuban boatswain of the Johnny express. Jose Villa,
the US citizen who was captain of one of the ships,
remain in Cuba. It is not known when he will be
freed
The agreement comes at a time when the Castro
government is working to improve its image in the
hemisphere and to increase its official ties with
Latin American governments. Unofficial ties between
Cuba and Panama have beccme increasingly warm in re-
cent months even though formal recognition has not
appeared imminent. Castro, moreover, is delighted
to see US and OAS policies thwarted either directly
or indirectly, and he probably views his latest
move as an effective means to win further support
and sympathy for Cuban "reasonableness" in its in---
ternational dealings. (CONFIDENTIAL)
7 Sep 72 Central Intelligence Bulletin
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CENTRAL AMERICA: The Common Market has suf-
fered another setback with the decision of El Sal-
vador, Nicaragua, and Guatemala to close their bor-
ders to Costa Rican exports.
This step was taken in retaliation for Costa
Rica's decision to in effect eliminate the prefer-
ences given its Common Market trading partners by
instituting an exchange rate system that raises by
about 30 percent the cost'-of all "non--essencial"
goods entering from the other Market countries.
Normal trade patterns within the Common Market
were greatly affected by the war between E Salvador
and Honduras in inid-1969 and the Honduran decision
in December 1970 to withdraw from the free trade
area by imposing duties on imports from the other
Market counties. For more than a year the Costa
Rican economy has been upset by the heavy influx of
Guatemalan and Salvadoran goods that previously went
to Honduras. Faced with a serious balance--of-pay-
ments problem--much the same as the position of Hon-
duras at the end of 1970--Costa Rica followed in
Honduras' footsteps and adopted a protectionist pol-
icy.
In the short run, efforts will be directed to-
ward persuading Costa Rica to rescind its new import
policy and adopt other means to cope with economic
problems. The difficulties besetting the Market are
so complex, however, that such interiri steps may not
be enough to counter the growing trend toward re-
gional disintegration. Sentiment may develop, there-
fore, for a five-nation conference to discuss a fun-
damental restructuring of the Market to reduce re-
gional trade imbalances and equalize and benefits
from industrialization. (CONFIDENj'IAL)
7 Sep 72 Central Intelligence Bulletin 8
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