WEEKLY REVIEW

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Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP85T00875R001000070011-8
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RIPPUB
Original Classification: 
T
Document Page Count: 
28
Document Creation Date: 
December 27, 2016
Document Release Date: 
May 6, 2010
Sequence Number: 
11
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Publication Date: 
August 2, 1974
Content Type: 
REPORT
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PDF icon CIA-RDP85T00875R001000070011-8.pdf2.3 MB
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Declassified in Part - 25X1 Sanitized Copy Approved for Release 2012/01/04 : FVA CIA-RDP85T00875R00100007 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04 : CIA-RDP85T00875R00100007 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 Weekly Review -Top-Seast 2 AUgut 197/ 25X1 25X1 Copy PV, 636 I Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 - gtt CONTENTS (August 2, 1974) MIDDLE EAST AFRICA EUROPE EAST ASIA PACIFIC WESTERN HEMISPHERE - INTERNATIONAL 1 Cyprus 5 Israel: Challenging Rabin 6 The Middle East: Soviet Diplomatic Activity 8 Portuguese Africa: The Nod from Lisbon 11 Spanish Sahara: Dispute Growing 12 Arabian Peninsula: Dispute Resolved 25X1 13 USSR: Meetings; Satellite; Economy 15 Romania: Party Congress Ahead 15 Harassment on the Autobahn 16 Eastern Europe: A Soggy Harvest 16 The EC Nine and Foreign Policy 17 UK: Labor Party Split over EC 18 South Korea: Political Instability; Economy 20 Laos: Devaluation Denied 20 South Vietnam: More Military Action 22 Chile: Payments Prospects 22 Argentina: Ominous Portent 23 Peru Loses Free Press 24 Cuba: Castro Looks to the South 25 Bolivia: Banzer's Position Improved 25 World Communist Conference 25X1 ! Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: ICIA-RDP85T00875R001000070011-8 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 CYPRUS The first phase of the Geneva peace talks was successfully concluded on July 30 when the foreign ministers of Britain, Greece, and Turkey sig.ied an agreement formalizing the cease-fire on Cyprus. The accord was reached after five days of hectic negotiations during which both the Greek and Turkish representatives threatened to walk out of the conference. More difficulties lie ahead in the negotiations when the ministers meet again on August 8 to begin discussions of the island's political future. Representatives of the Greek and Turkish Cypriot communities will participate in the next round of talks. The wording of the accord reached at Ge- neva indicates that Athens accepted Turkey's principal demands. The question of Turkish troop withdrawal?opposed by Ankara?was resolved by a statement calling for measures that will lead to the "timely and phased reduction" of the number of armed forces on Cypruz. Ankara had adamantly refused to accept the word "with- drawal," suggesting that the Turkish military fnrces will remain on the island for some time to come. The agreement also recognizes the existence in practice of two autonomous administrations in Cyprus, but it notes that such recognition would not "prejudice the conclusions to be drawn from this situation." The ministers agreed to discuss this matter during the next phase of the talks along with the "constitutional legitimacy" of the Turkish Cypriot vice president. The agreement also notes that all Turkish Cypriot enclaves oc- cupied by Greek Cypriot forces must be evac- uated immediately. The Turks will reportedly call for the establishment of a federal state in the next round, with almost tol'al autonomy for the Turk- ish Cypriot community. The Greeks are likely to oppose initially the concept of a federal state but will probably concede eventually and focus in- stead on limiting the Turkish role in Cyprus and the powers of the Turkish Cypriot administration. The countries directly involved in the Cyprus crisis have welcomed the cease-fire accord with varying degrees of enthusiasm. Greece's relief at averting war with Turkey has been tempered by the realization that Ankara has won far-reaching concessions. The Greek Cypriots have also been dismayed by what has been asked of them in the accords. 25X1 25X1 GREEK REACTION Although Greek Prime Minister Karamanlis has publicly described the agreement as a "start- ing point" for a just solution. Karamanlis also expressed concern ove25X1 the economic burden resulting from the con- frontation, noting that it was costing Greece over $16 million per day. He has since announced the gradual demobilization of some 130,000 reservists called up for duty. Karamanlis can expect some backlash for "selling out" the Greek Cypriots in the agree- ment, but he probably can deflect criticism by laying responsibility for the turn of events at the door of the old junta since they engineered the coup that ousted Makarios and precipitated the Turkish invasion. The Greek military is in no position to criticize the accord. TURKISH REACTION Ankara views the agreement as a dear-cut victory for Turkish arms and diplomacy. Prime Minister Ecevit has highly praised the perform- ance of the Turkish army?hardly praiseworthy, at least in the initial stages of the invasion?calling it a new chapter in Turkey's military history. The US embassy in Ankara believes that Turks of all political views are united in their Page 1 WEEKLY REVIEW Aug 2, 74 25X1 neclassified in Part - Sanitized Copy Approved for Release 2012/01/04 : CIA-RDP85T00875R001000070011-8 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 intention to squeeze all possible gains from the situation. Prime Minister Ecevit has emerged with his domestic position greatly strengthened, at least in the short run. The embassy notes that, while there are undoubtedly shades of differences between the civilian government and the military, there are no conflicts of serious proportions. Moreover, the embassy does not believe the mili- tar are dra alon a reluctant Ecevit. T i Ankara, undoubtedly, wants to keep inde- finitely a secure territorial base on Cyprus that includes a portion of the northern seacoast and the port of Kyrenia. This base not only will increase Turkey's bargaining chips in the future negotiations, but also will put it in a stronger position to ensure a double enosis if efforts are made in the future to link Cyprus with Greece. Moreover, that portion of Cyprus commands approaches to three major southern ports, which Ankara is determined to shield from future threats by Greeks on Cyprus. Beyond this general strategic thinking, the embassy does not believe that the Turkish leadership is certain what it wants for a long-term settlement, excer t to bar a return to the 1960 London-Zurich arrangement; give Turkish Cypriots greater autonomy; and pre- vent, if possible, the return to power of Arch- bishop Makarios. 25X1 CYPRIOT REACTION In Cyprus, President Clerides welcomed the Geneva accord as a step toward peace, but ex- pressed dismay at the concessions asked of Greek Territory controlled by Turkish. forces Page 2 WEEKLY REVIEW Aug 2,74 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04 : CIA-RDP85T00875R001000070011-8 ? 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 Cypriots. He accused the Turks of intransigence, but noted that the longer the fighting went on, the more difficult it would have been to arrive at a peaceful solution. The accord was well received by Turkish Cypriots. They have already moved their adminis- tration from Nicosia to Kyrenia, which reportedly will serve es the "capital" of the Turkish Cypriot sector. Turkish Cypriot leader Rauf Denktash told a US embassy official that a cantonal arrangement might emerge from the present situa- tion, with a federal government based on an amended ver.;ion of the 1960 constitution. He foresaw a continuation of the arrangement for a Greek Cypriot president and a Turkish Cypriot vice president, but the Turkish canton would enjoy almost complete autonomy. Not all Turkish Cypriots would be required to live in the canton, according to Denktash, but those outside?in- cluding Greek Cypriots?would have freedom of moveme, it throughout the island. In London, Archbishop Makarios gave guarded approval to the agreement, but criticized the vagueness of the clause dealing with the Turk- ish troop withdrawal. Makarios reportedly told Greek Foreign Minister Mavros he had no inten- tion of going to Geneva and would not cause any "problems." THE POLITICAL SITUATION IN CYPRUS Glakos uerides now claims to be the r.f...htful" president of Cyprus and not "acting" pr1/44ident. Clerides believes that Makarios' return at this time would spark civil war within the Greek Cypriot Community. Clerides has reportedly contacted Athens' new political leaders to generate support for his candidacy and was scheduled to meet yesterday with a Karamanlis emissary. After conducting a survey of sentiment within the Greek Cypriot community, the US embassy concludes that most individuals with whom it has contact agree that Makarios must not return to Cyprus anytime soon because of the danger of civil war. According to the embassy assessment, this sentiment becomes more THE MILITARY SITUATION Turkish forces broadened their Nicosia- Kyrenia corridor on July 27, pushing westward from Kyrenia and Nicosia along the mountain range near the coast. They also moved eastward toward the besieged Turkish Cypriot enclave at Chatos, but were stopped by a UN contingent. Greek Cypriot forces subsequently built up de- fenses in the area and apparently deterred any additional Turkish movements. Major military operations have been halted since July 27, althouqh numerous minor clashes continued through mid-week, as the Turks con- solidated their positions and Greek Cypriot forces reorganized their defenses. The Turkish force is in control of an area north of Nicosia that stretches to a point near the town of Myrtou in the west and near Kythrea in the east. The US embassy in Nicosia reported that most of the troops, tanks, and vehicles that had been concentrated around the Turkish military headquarters at Bogaz were gone by July 31. Embassy officials assume that the Turks had pushed their forces outward to have the widest possible perimeter before the UN inspection of the cease-fire lines. Turkey has sent an estimated 20-25,000 troops and about 130 tanks into this expanded enclave so far. Ships and helicopters continue to ferry supplies, and there are reports that th25xi Turks may still be sending limited reinforcement,. On the mainlaiid, the Turks apparently con- tinue to maintain a high level of military alert readiness. The Greeks, on the other hand, ordered a limited demobilizution early in the week by placing some 80,000 reservists on indefinite leave. Plans call for an additional 50,000 reservists to be demobilized by August 10. Forces in northern Greece and on the islands adjacent to Turkey remain in an advanced state of readiness. The US defense attache in Athens reports that the ma- jority of ships stationed at the main Greek naval base at S I Page 3 WEEKLY REVIEW Aug 2, 74 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 25A1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 qualified as one moves away from the political right, but even the Communist Party hedges on its support for Makarios. Only the leftist Lyssarides faction persists in demanding Makarios' reinstate- ment. In an effort to consolidate his position, Clerides reportedly plans to make some changes in his cabinet soon to placate centrist and leftist elements who support his candidacy on condition that he rid the cabinet of persons directly associ- ated with the coup on July 15. THE SITUATION IN GREECE Prime Minister Karamanlis has added some representatives of the moderate left to his govern- ment, thus broadening its support. This step prob- ably will be viewed a, tokenism by the extreme left, one of whose principal spokesmen?Andreas Papandreou?plans to return to Greece soon. Papandreou has already denounced the new gov- ernment as a tool of NATO and the US and announced that he will form a new po!itical party that wil! be to the left of the Scandinavian social- ist parties. The rest of the Greek left is apparently divided over the posture to adopt toward the Karamanl is government. The 113 embassy in Athens, in evaluating the new Karamanlis cabinet, believes that the Prime Minister has vindicated the old Greek political establishment by honoring those who resisted the military regimes. His cabinet includes a large num- ber of those who stood in consistent and rational opposition to the juntas, but he has denied posi- tions of influence to those most inclined to seek revenge against the military. While some minis- tries were assigned to men perhaps better suited to other offices, key posts?interior, defense, for- eign affairs, public order?are in the hands of loyal and proven leaders. Nevertheless, the com- position of the cabinet suggests that family ties and respectable connections were helpful in obtaining appointments. SOVIETS BACK AN INDEPENDENT CYPRUS Moscow last week demonstrated its interest in preserving an independent Cyprus and in staking out a role for itself in the negotiations over the island's future. In a strongly worded statement on July 28, the USSR expressed its suspicion that "certain circles" in NATO (an apparent allusion to the US) zro seeking to exploit the situation in order to consolidate their military and strategic position in the eastern Mediterranean. The government state- mext noted that Moscow was firmly behind the participation of the "legitimate" Cypriot govern- ment in the Geneva talks. To underline its con- cern that London, Athens, and Ankara may agree to change the island's politica! status, Moscow sent Victor Minin, an expert in eastern Mediterra- nean affairs who has the rank of ambassador, as an observer to Geneva. Early in the week, the Soviets unsuccessfully sought to have the Security Council send a special mission to Cyprus immediately to verify imple- mentation of the UN resolution. Although the Soviets seemed to welcome the signing of a cease- fire accord in Geneva, they later vetoed a pro- posal to expand the role of UN peace-keeping forces on Cyprus. allegediy for "procedural" reasons. The USSR did not directly condemn Ankara for its cease-fire violations, nor did it respond directly to Clerides' call for Moscow to exert pressure to get Turkey to stop its violations. This was consistent with Moscow's other efforts during the crisis to remain in fairly close touch with the Turks and to cast itself as sympathetic to them. Despite its opposition to enosis or partition, Moscow apparently has a flexible attitude toward an eventual settlement on the island and is seek- ing to sort out its attitudes toward Makarios and Clerides. Moscow will support Clerides, but only a25X1 long as he is committed to the archbishop's re- turn. the Soviets are 25X1 highly suspicious of Clerides' links with Athens and Washington. the Soviets be-25X1 lieve Clerides will run or tne presidency and that he will win the election. 25X1 Despite suspicions about Clerides, Moscow has avoided criticizing him publicly. The Soviets would prefer to see Makarios return, but they clearly do not want to burn their bridges to Clerides should he survive as head of an independ- ent and nonaligned Cyprus. Page 4 WEEKLY REVIEW Aug 2, 74 25X1 25X1 25X1 neclassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 ? Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 ISRAEL: CHALLENGING RABIN Zealous Israeli nationalists have again chal- lenged Prime Minister Rabin's new government on the sensitive issue of government policy toward Jewish settlement in occupied Arab areas. Last week. 150 would-be settlers illegally occupiGd the site of the capital of the ancient kingdom of Israel near Nablus, the largest Arab town on the West Bank. They were accompanied by sore 1,000 sympathizers, including leaders of the opposition parties and prominent rabbis. Backed by a unanimous cabinet decision to break up the attempt, Defense Minister Shimon Peres took a tough line with leaders of the opposi- tion Likud Party in negotiating the removal of the squatters. Initially, he ruled out using the army to evict them on the grounds that Arab preparations for a new attack on Israel required the defense forces' full attention. Afier the squatters' intransi- gence forced several extensions of the deadline for their departure, however, unarmed soldiers moved in on July 29 and forcibly loaded the protesters on buses for transportation to Jeru- salem. This is the zecond time in less than two months that the Rabin government has been chal- lenged by demonstrators seeking to focus atten- tion on the future of Israeli settlements in The occupied areas. In early June, troops were also used to remove a smaller group from an illegal settlement near Nablus. In condemning the squatters' action as illegal?only the government has the authority to establish settlements in occupied territory?the cabinet side-stepped the larger issue of its overall settlement policy, just as Mrs. Meir's cabinet did when faced with a settlement attempt in the Golan Heights during the Syrian disengagement negotiations. The settlement issue is an explosive one, both internationally and domestically. Settle- ments in former Arab lands, by those determined to re-establish the ancient borders of Israel, have fueled Arab charges of Israeli expansionism lnd have especially disturbed Arab residents of the Squatters arguing with Israeli soldiers West Bank. Although the settlers do not have a large grass-roots following, the principal opposi- tion party?Likud?and the Labor Party's former coalition partner?the National Religious Party? are ri ?dicated to the settlers' policy of maintain- ing and consolidating Israel's present frontiers. The government, on the other hand, has tried to keep its official settlement policy deliber- ately vague, making annual budget allocations for new settlements, but withholding official authori- zations for their creation. Rabin is trying to build a consensus for negotiations with the Arabs that would include recognition by the Israeli people of the necessity to give up some of the occupied territory, including areas in which Jewish settle- ments have already been established. This latest challenge to his efforts comes immediately after the cabinet's carefully hedged offer to Jordan of terms for talks on the ultimate disposition Of the West Bank. The debate generated by the latest occupation will increase pressure on the government to state specifii:ally its settlement policy at a time when Rabin woul refer to main . -gotiating latitude. Page 5 WEEKLY REVIEW Aug 2, 74 25X1 25X1 25X1 npriaccified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 1 11111-2bAl Declassified in Part - Sanitized Copy Approved for Release 2012/01/04 : CIA-RDP85T00875R001000070011-8 The Middle East SOVIET DIPLOMATIC OFFENSIVE Moscow is conducting what appears to be a major effort to counter any further erosion of its position in the Middle East. Much of the Soviet activity seems aimed at isolating Egyptian Presi- dent SAat in the Arab world and at creating pressure within Egypt to force Sadat to recon- sider his shift away from Moscow. There are indications that the Soviets view the Egyptian military as the best source of such pressure. The Watch on the Nile The Soviets have harshly criticized Sadat and have sought to embarrass him by such tactics as the recent postponement of Fahmi's visit to the USSR. They have nevertheless continued to hold out the promise of assistance?particularly mili- tary aid?should Egypt adopt a more acceptable policy toward the USSR. Indeed, thr USSR may have opened its arms spigot a bit. Since JuIy 16, three Soviet AN-12 transport aircraft have flown to Cairo. These were the first such flights since April and may have carried needed spare parts to the Egyptian military. There is no evidence, how- ever, of any Soviet seaborne military deliveries since April. In employing these tactics, Moscow ap- parently calculates that there is still support within Egypt for a more pro-Soviet policy. Yet the Soviets seem to see no alternative to Sadat at this time and want to maintain some. commu- nication with .iim. Soviet officials, for example, have suggested that a summit is still possible, although they have rejected Sadat's demand that General Secretary Brezhnev go to Cairo. Arms Deal with Libya Evidence is accumulating that Moscow has concluded a major arms deal with Libya. Ap- parently, the package includes modern equipment not heretofore seen in Libya's arsenal. 25X Both the USSR and Libya appear to have an eye on the it.ipact a substantial arms deal Wiil have on Egypt. Tripoli and Moscow remain sus- picious of each other and are basing their coop- eration on a common antipathy to Sadat. The Soviets may think that, in view of their suspended arms shipments to Egypt, a large flow of weapons into Libya will create unrest in the Egyptian military. At the very least, Moscow probably welcomes the opportunity to receive hard cash for its arms; Qadhafi will most likely pay outright to a..oid building up any sort of debt to the USSR. Qadhafi's desire to acquire a sophisticated arsenal is weIl established. Despite his deep dis- trust of Moscow, Qadhafi apparently wants Soviet weapons not only to impi?ove the Libyan in- ventory, but to make it more compatible with other Soviet-equipped Arab states. More specifi- cally, Qadhafi may believe he now has a chance to make Libya an attractive patron for the Egyptian military. Believing that another war with Israel is inevitable, Qadhafi may hope that this time he will be better able to serve as an arsenal for Egypt's army. Arafat in Moscow The chairman of the Palestinian Liberation Organization, Yasir Arafat, arrived in Moscow this Page 6 WEEKLY REVIEW Aug 2, 74 25X1 npciassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 week seeking assurances of support for the Pales- tinians in the next round of the Geneva Middle East talks. Arafat is particularly eager to win an explicit statement of Soviet backing at this time since he is under heavy fire in fedayeen councils for his relatively conciliatory policies toward a nego- tiated settlement. Arafat became more vulnerable to such criticism when Saciat. with whom. he nail been cioseiy c.00perating, recently agreed with King Husayn that Amman should represent Pales- tinians resident in Jordan. Although Moscow will pledge support to Arafat in hopes of widening the rift between the Palestinians and the Egyptians, it seems unlikely that the Soviets will grant him and the PLO official recognition as the sole representative of all Palestinians. The Soviets continue to be frus- trated in dealing with the splintered fedayeen movement. In a major press article on July 29, Moscow criticized the P:-:estinian factions for their divisive tactics and said the fedayeen will be successful only when they achieve unity of direc- tion and purpose. Courting Aden and Algiers Moscow's concern with forestalling any ex- pansion of Egyptian, Iranian, or Western in- fluence in the Arabian Peninsula may have led it to promise additional military assistance to South Yemen. The communique on the reent visit of South Yemeni Secretary General Ismail to Mos- cow said that "measures were outlined" to strengthen Aden's defensive capability. Aden has been concerned over Iran's mil, tary involvement in cr.rshing the rebellion in Oman, which has been 'aacked by South Yemen, as well as over the intrditions of the new military regime ;n North Yemen. The Soviets, however, probably again cautioned Aden against rash actions. MINE-SWEEPING AT MIDPOINT The Soviet mine-sweeping operation that began in mid-July in the Strait of Gubal between the Gulf of Suez and the Red Sea is evidently about half completed. The target date for winding up the operation is August 15. The possibility that the Soviets might ?...4?theit stay by taking on salvage opera- tions was lessen:A when a heavy lifting ship left soon after placing mooring buoys near the areas of operations. The helicopter ship Leningrad joined the mine-sweeping group at the Egyptian port of Hurghada a week ago. On July 26, one of the Leningrad's normal complement of light- weight helicopters?the Hormone class?was sighted flying over the mined area in what appeared to be survey operations. Bad weather ard heavy haze may have hampered other ielicopter activity Or observation of it. When the Leningrad entered the Red Sea, large-diameter cable and a pontooned sled-like device were seen on its deck as well as two MI-8 heavy-duty helicopters. This equipment has not yet been observed in operation, but it is expected to be used in the activity. 25X1 Last week, Soviet leaders received a high- ranking Algerian defense official in Moscow. It is not yet clear what occurred during the visit, but the Algerian apparently came to di,cuss Moscow's military aid as well as to deliver a message to the Soviet leaders from Algerian President Boume- diene. The visit appears to be a follow-up to Soviet Defense Minister Grechko's visit to Algiers last May. At that time, Grechko apparently tried .3 revitalize Moscow's military aid program as well as to undei line Moscow's continuing prom- inent role in Arab affairs des site its et Egypt. I ? A Page 7 WEEKLY REVIEW Aug 2, 74 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04 : CIA-RDP85T00875R001000070011-8 ? LOA I Declassified in Part - Sanitized Copy Approved for Release 2012/01/04 : CIA-RDP85T00875R001000070011-8 PORTUGUESE AFRICA: THE NOD FROM LISBON President Spinola's announcement on July 27 that the process of granting independence to the African territories can begin immediately has given a much-needed impetus to Lisbon's efforts to move toward a settlement of the African prob- lem. Spinola added iater that Portuguese Guinea would be the first to be granted independence. Shortly thereafter, Luis Cabral, head of thE rebel- prlclaimed state of Guinea-Bissau, said that all obstacles to a settlement have been removed. Spinola's announcement marked a retreat from his earlier insistence on a referendum to decide the future of the African provinces and the end of his hope for a confederation. His failure to spell out exactly how or when the territories would make the transition to independence appears to indicate that negotiations with rebel groups in Angola and Mozambique are tai from bringing about a settlement in these two territories. Spin?la maintained that Portugal is open to any initiatives for the planning and execution of decolonization. Lisbon's new policy should encourage several African leaders who are at- tempting to mediate between the rebels and the Portuguese?particularly presidents Senghor of Senegal, Kaunda of Zambia, and Nyerere of Tanzania. Spinola's popularity in the metropoie has reached a new high following his speech, and the principal political parties have expressed un- qualified approval of his new policy. Only the right-wing Portuguese Federalist Movement dis- sented. The popularity of the move has obscured the fact that the new pulicy is a defeat for Spinola, who had pressed hard for referendums in the territories and for a federal solution. The situa- tion in Portugal and the territories, however, made these goals unattainable. Heavy pressure from the Armed Forces Movament and the po- litical parties in the provisional government, as well as opposition from African nationalist groups, forced Spinola to back down. Independence for Guinea-Bissau The favorable comments by Luis Cabral in- dicate that the way now appears clear for the independence of Portuguese Guinea, and a public announcement may come soon. There has been substantial evidence for some time that both sidPs were close to a settlement, particularly on the nettlesome issue of the Cape Verde Islands, which the rebels claim and the Portuguese want to re- tain. A solution to this problem may not be spelled out in the final a.3reement, but probably will be covered by vague language that will in effect allow Lisbon to keep the islands without requiring the rebels to withdraw their claims. The actual transfer of power to the rebels should not be difficult. The rebel government of Guinea-Bissau, which Lisbon would simply recognize, already has an embryonic administra- tion in the rural areas it now control-..... This ad- minictration could be extended to other areas as the Portuguese leave. A Cease-fire in Mozambique Spinola's offer of independence and his will- ingness to abandon his demand for a referendum remove two major obstacles to further talks with the Mozambique insurgents. When Portuguese Foreign Minister Soares met briefly in Zambia in June with leaders of the Front for the Liberation of Mozambique, the insurgents insisted on these two points as conditions for further negotiations. The Zambians, who have been acting as a go- between on Mozambique negotiations, claim the two sides will meet again sometime this month. The rebels, however, have not indicated they will retreat from the position they took at the meet- ing in June that they will only negotiate for a direct turnover of power. Meanwhile, the establishment of a military junta in Mozambique last week, following by a few days a similar move in Angola, clearly in- dicates Lisbon intends to take firmer control of the territory's administration. Lisbon especially wants to calm the white inhabitants, dampen urban violence, and end labor unrest. Page 8 WEEKLY REVIEW Aug 2, 74 25X1 norlaccifiPri in Part - Sanitized Copy Approved for Release 2012/01/04 : CIA-RDP85T00875R001000070011-8 11111U- 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 It is unlikely, however, that the new govern- ment can overcome the recent reluctance of local military forces to carry out offensive operations. In fact, an informal cease-fire seems to be in effect in some areas of the teffitory, and troops from both sides have been fraternizing and co- operating. Diplomatic sources of the US consul general in Lourenco Marques assert that an of- ficial cease-fire is near at hand. Taken together, these bits and pieces suggest an informal cease-fire could be shaping up similar to the one that developed in Portuguese Guinea when fighting between Portuguese and insurgent forces tapered otf following the Lisbon coup. The military officers who arrived in Mozambique from Lisbon last week to set up the junta publicly asserted that the Portuguese are still officially seeking an immediate cease-fire. It is not clear, however, if the rebels would agree to one before further negotiations on a political settlement are held, or if they intend to keep up the military pressure tc: force concessions from Lisbon. Competim, Rebels in Angola In Angola, the Portuguese seem anxious to bring the territory's competing insurgent groups to the bargaining table. After arKving in Angola last week, Vice .Amiral Rosa Coutinho, the new head of the territory's military government, said a coalition government probably including mem- bers of the insurgent groups would be formed soon. Although such an arrangement shows promise, until now there has been no single na- tionalist group with enough authority to nego- tiate with the Portuguese. The three Angolan insurgent organizations have been in competition for more than a decade, and the resulting hostility has ki,vt thein from forming a united front. None of them has been able to wage effective mil:tary operations. Last weekend, how6yer, a meeting took pace in Zaire between leaders of the Popular Movement for the Liberation of Angola and the Revolutionary Government of Angola in Exile, the most important of the insurgent groups. Also Spinola attending were the OAU Secretary four African presidents who have long backed the insurgents and have tried to bring them together. A communique was issued stating that the two groups would set up a joint front to negotiate with Lisbon, but no details on the reported agree- ment are yet available. The effectiveness of any agreement between the two rivals will depend on a fmthcoming congress of the Pcpular Movement in Lusaka, where the group's long-standing leader- ship struggle may be resolved. If the Popular Movement has indeed pulled itself together, the prospects for talks between the insurgents and Lisbon would be brighter. General and Page 9 WEEKLY REVIEW Aug 2, 74 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 II Declassifiedin Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 FRANCE ITALY PORTUGAL Ceuta, ISPAI ) ??????,- ? RABAT (5PPINI / *Meknes ALGIERS TU SIA EL AAIUN MAURITANIA NOUAKCHOTT SENEGAL UPPER VOLTA Page 10 WEEKLY REVIEW Aug 2, 74 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 NIGERIA 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 SPANISH SAHARA: DISPUTE GROWING Morocco is using both diriornatic and mili- tary means to press its claims to Madrid's overseas province of Spanish Sahara. The Moroccan government hopes to win Third World support for its position on Spanish Sahara and to pressure Spain to abandon its plans for increased au- tonomy for the province. Rabat suspects that Spain's objective is to create a puppet state in the phosphate-rich territory. On the diplomatic front, Moroccan emis- sarils left this week for various Arab and African capitals as well as Asian and East European countries to seek support for Rabat's position. The Arab and African states will back Morocco's demand that Spain leave, but they are not in- clined to support Morocco's territorial ambitions, especially in view of Mauritania's claims to Spanish Sahara and Algeria's insistence on a role as an interested party. Arab countries are re- luctant to take sides in this quarrel for fear of weakening Arab unity on the far more important issue of a Middle East peace settlement. In just such an effort to exert continuing pressure on Spain, the Moroccans placed their armed forces on alert on July 25, canceled all leaves, and mobilized some reservists The US defense attache in Rabat also has reported that some of Morocco's F-5 fighter aircraft were recently trans- ferred south from Meknes to Marrakech. additional troops are being sent to southern Morocco and near the Spanish enclaves of Ceuta and Melilla in the north. Although these 25X1 enclaves have not been an issue in the current controversy, King Hassan apparently wants to remind Madrid that the two cities are vulnerable. 25X1 The US embassy in Rabat believes King 25x1 Hassan's campaign to "recover" Spanish Sahara is the first phase of a strategy to use Moroccan 25x1 nationalist and irredentist aspirations to achieve internal unity. While the King considers Spain the adversary until colonial rule is ended, the 25X1 embassy thinks that if Madrid decides to withdraw, he would make concessions to obtain 25x1 Spanish cooperation in opposing the rival terri- torial claims of Mauritania, which are backed by Alaeria Page 11 WEEKLY REVIEW 25X1 25X1 Aug 2, 74 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 ? 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/04: CIA-RDP85T00875R001000070011-8 ARABIAN PENINSULA: DISPUTE RESOLVED Saudi Arabia and Abu Dhabi settled their long-standing border dispute on July 29. The pre- liminary agreement was signed by Prince Fahd, who has been in charge of the Saudi effort to work out a settlement since March, and Sheikh Zayid, Abu Dhabi's ruler and head of the seven- member United Arab Emirates. Sheikh Zayid will sign the final accord in Saudi Arabia soon? perhaps shortly after King Faysal returns from his current trip to Cairo. The way is now paved for King Faysal to exte? diplomatic recognition to the emirate federation. The two sides have not of the settlement, released the details it provides for: 25X1 ? Abu Dhabi to meet a long-time Saudi demand for a corridor to the Persian Gulf between Qatar and Abu Dhabi. Border Arooment ER S:1 ' .111scal - Khaimah UI tharIal:/-'' 4 h 6'11* Ilrubl