WEEKLY SUMMARY

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`"K' 23 April .1965 CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT" INTE16, RD CENTER IMMEDI T~LX AFT-TI1 GROUP I Excluded fron autamatic Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 iftw_ SECRET (Information as of 1200 EST, 22 April 1965) VIETNAM A high-level party-government delegation from North Vietnam held secret talks last week in Moscow, and now is in Peiping. The joint communiqud following the Moscow visit contained a conditional Soviet pledge of assistance somewhat stronger then Brezhnev's last month, possibly to set the stage for an announcement of the dispatch of Russian personnel along with Soviet SAM equipment which almost certainly is en route to the DRV; Peiping, meanwhile, has put a National People's Congress stamp of approval on its own previous conditional pledges of aid. As US and South Vietnamese air strikes on the North continued during the past week, Hanoi showed signs of concern over possible escalation of the air war but maintained its independent posture with regard to any form of negotiations. THE COMMUNIST WORLD COMBAT POTENTIAL OF SA-2 SAM SITES A single SA-2 surface-to-air missile site can handle only one target at a time and needs the services of a technical support battalion to achieve any sustained level of combat readiness. ANTIREGIME PLOT SCOTCHED IN BULGARIA The plotters' probable goal was to loosen Bulgaria's sycophantic ties to Moscow. Little is known of the extent of the group's support, but it is unlikely the regime's stability has been seriously weakened. NEW TREATY REFLECTS ALTERED SOVIET-]POLISH RELATIONSHIP The long bargaining which apparently preceded the for- mal signing and the divergent interpretations of the treaty by each side reflect a new relationship based on a mutual accommodation to diverse national inter- ests. RUMANIAN FOREIGN POLICY PROBLEMS The new Rumanian leaders, having failed to expand com- mercial relations with the US significantly and hard put to ignore pressure for Communist unity on Vietnam, are finding fewer options available to them in further- ing their national interests. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Page Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 W sECRE'r THE COMMUNIST WORLD (continued) Page INDONESIA CELEBRATES BANDUNG CONFERENCE ANNIVERSARY Following the Djakarta phase of the celebration--which produced nothing but the expected anti-Western speeches --the Japanese delegation traveled to Malaysia, where it proposed a Malaysian-Indonesian summit meeting in Tokyo. Malaysia's Rahman has agreed. THE KURDISH WAR -- ROUND FOUR Renewed fighting between the Iraqi Army and the Kurds seems likely to be as indecisive as in past campaigns and to underline the stalemate which has existed for four years. Attempts to reach a settlement during the 14-month cease-fire just ended have proved fruitless. The 5,000 hard-core Kurdish fighters are well trained and equipped, but Kurdish tribal loyalties are more divided now than in 1963 against the Baathist regime. The Kurds can continue to expect limited material aid from Iran, and propaganda support from the USSR for Kurdish autonomy demands. The Baghdad government con- tinues to receive arms from the USSR to use against the rebels, and words of caution from Egypt. (Published separately as Special Report OCI No. 0286/65B) THE CYPRUS SITUATION Tensions rose for a time last week when the Greek Cyp- riots banned movement of supplies in or out of Nicosia's Turkish quarter, but this latest crisis apparently has not induced Makarios to abandon his "peace offensive." However, Ankara's current pressure on Athens to negoti- ate a Cyprus settlement may prove counterproductive. AFRICAN MODERATES PUSH NEW CONGO PLAN Five relatively conservative West African states have launched an effort to provide major military and admin- istrative assistance to the Leopoldville government, with a view ultimately to limiting Communist and radi- cal African influences in the area. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page ii Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 NW SECRET ASIA-AFRICA (continued) Page INTERNAL TENSIONS IN GUINEA The heavy-handed economic cont:rols imposed by President Tourd's regime have bred widespread discontent, partic- ularly among the Fulani tribal people who compose a third of the country's population. COMMON MARKET: THE FINANCIAL REGULATIONS PROBLEM The EEC Commission's proposals for financing the common agricultural policy go beyond anything anticipated at this stage of the EEC's development and, by combining financial inducements with federalist principles, con- front Paris in particular with a difficult choice. THE NEW DUTCH CABINET Its domestic economic program will probably weaken the anti-inflationary effort pursued by the old government. Foreign policy, including a long-term effort to improve relations with Indonesia, is likely to continue along the same general lines. COLOMBIAN CONGRESS IN SPECIAL SESSION Its likely failure to enact meaningful reforms could cause existing public disillusionment to crystallize into more direct opposition to the National Front gov- ernment. This outcome is already the goal of several political groups. POLITICAL SITUATION IN GUATEMALA If Chief of Government Peralta decides that disorder would accompany an election campaign this year or that he could not easily control the results, he will be all the more susceptible to pressure from his advisers and businessmen who prefer his military regime. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page iii Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 SECRET WESTERN HEMISPHERE (continued) Page ECUADOR DELAYS MISSION TO SEEK BLOC TRADE Political considerations account for the delay, but the trade mission probably will set out later. It is also possible that, in support of its economic policy, the Ecuadorean Government will eventually extend diplomatic recognition to one or more Communist states. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page iv Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 iftlo *400 Hsia kuanf l H I-- N A Ne Nan nine Mg '. Ching-hu (Ch n ? N 0113 T H{fn,.r,Prd ~, eP, Ta-I off'\. Lang4 ! :.~.rFon f'~r t.. Pnong sa vi It V 1 E T N*.Q M h^? ~1 It ",' huc n Suich'i URy Muon8 Sing Son L ` ? H I 3~ Itim uong Hwy. Bridges. VIE T IANE `~ u ~i~(.~Pass[ta Yad t uaon Than 5 l :DAPIVKUK -- r,- -_ ~BatCA S.~? PHNOM PENH ong P oa huong Thanh H Rt.t Dien Chau RR Bridge. A nhoi Hwy. Brid ,H g r aTl jai Duc Thou Hwy. Brid U '~/ Xom Ca Trang Hwy. Bridge L` Dong Thanh Barracks VLI',Rf.i01 M+y Duc Hwy. Bridge Chap Le Rt.102 l? Dona Ha KU EI-YANG An-shun `SlJTH VI TNAAl ..n SAIGON `'?S (~'i-. ..:-.'..?.- Phan Thie[ Vinh Lai Ooan Long akse Quang Ng Atta- Plei u Qui Nhon Phu BDa Nang \% :1(iet An l.~ gluoc j r B NH LONG r+`4.i:s~ 13'4e45dGp'N ' fMOIAPY DE .'I"R16:'~ LONG . TAY B~y,._. 9a.. kNINI-L . o. THUA THIEN PHUOC THANH LONG K HA NH BIEN gan DARLAC PHU BON TUYEN DUC HOA y' KUEI LIN YF,ORY BAYARD Hal-k' n 9 e 1 Hai en HENG-YANG U11 CORP 1y iAWLOON ?~i, c.? VICTORIA MACAO HONG KONG (Pu.L) (U.K.) KONTUM - 7ri d4+1Sic c, BINH BINH +TUY UUC Men c"ireI zaiii QUANG NGAI South Vietnamese military boundaries Airfield Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 %we N40101 SECRET The announcement on 17 and North Vietnamese agreed that April that a party-government "it would be useful to convene delegation from North Vietnam the relevant international con- led by party first secretary Le Duan, Minister of Defense Vo Nguyen Giap, and newly appointed Foreign Minister Nguyen Duy Trinh had held week-long secret talks with Soviet civil and military leaders suggested that Hanoi was seeking clarification of Moscow's position on assistance to the defense of the DRY. These were the first high-level talks held since the US has stepped up its assistance to the South Vietnam- ese and increased its bombing of North Vietnamese military tar- gets. The joint communiqud re- leased at the conclusion of the visit is highlighted by a cau- tious threat to send volunteers to the DRV "in case of necessity." Moscow made its pledge condi- tional upon an "intensification of US aggression" and an appeal by the North Vietnamese Govern- ment, but this goes beyond Brezh- nev's ambiguous reference in a 23 March speech to the readiness of Soviet citizens to "take part in" the DRV's struggle. The So- viet pledge may be intended to set the stage for an announcement of the dispatch of Russian per- sonnel along with the Soviet SAM equipment which almost certainly now is en route to North Vietnam. There was no call in the com- muniqud for a Geneva-type confer- ence on Vietnam, but the Soviets SECRET 23 Apr 65 Page 1 ferences" to solve the problems of Laos and Cambodia. The visit and resulting com- muniqud suggest that Moscow and Hanoi have drawn closer, but the net effects of the trip will not be clear until the results of the delegation's current talks in Peiping are known. It ar- rived there on 18 April and was feted by top Chinese leaders, who are undoubtedly attempting in their discussions to offset the Soviet initiative. The Chi- nese have broadcast the text of the Soviet-DRV communique, but they have made no comment on it. In addition to filling out the public Soviet position on "volunteers," the communique also contained the USSR's most authoritative public reference to President Johnson's 7 April speech. Although it avoided the vitriolic, personal criticism. of the President characteristic of Peiping's reaction, the sta.te- mEnt reiterated that US "exten- sion of acts of aggression" proves that Washington does not really seek a peaceful solution. In a 19 April speech, Pre- mier Kosygin asserted that re- cent talk in ?Vashington about a peaceful settlement is valueless in light of US determination to continue intervening in Vietnam. Kosygin endorsed Premier Pham Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 SECRET Van Dong's 8 April four-point formulation setting forth the basis for the "soundest" settle- ment of the Vietnamese crisis. He denounced US use of such "in- human instruments" as napalm, phosphorous bombs, and gases, and warned that, since the US has no monopoly on modern arms, the use of such weapons might invite retaliation in kind. Developments in North Vietnam Hanoi made it evident this week that the "urgent and new tasks" referred to in recent official statements were mostly concerned with building up DRV defenses against continuing US air strikes. The regime's con- cern over possible escalation of the air war was reflected in its request on 16 April that foreign officials, including those of Communist countries, evacuate their dependents within ten days. Construction of the SAM site near Hanoi is continuing. Photography indicates that four of the six launch po- sitions are completed. The re- vetted central guidance facility also appears complete, but the perimeter roads are still under construction. There was no evi- dence of any missile equipment within the site. Although there is still no hard evidence on the arrival of Soviet military equipment in the DRV, the 17 April joint communi- ctud claimed not only that Soviet military aid is "being imple- mented in the envisaged extent and procedure," but also that an agreement was reached on "fur- ther steps" to defend the DRY. Equipment for the SAM site now almost completed is probably moving by rail through China ra- ther than by sea. While building up its de- fenses and urging the population to "heighten its vigilance" against the US "aggressor," Hanoi continued last week to maintain an independent posture with re- gard to any form of negotia- tions. On 19 April Hanoi issued a politely worded reply to the 17 nonaligned nations' appeal stressing its belief that the only "basis for the sound politi- cal settlement" of the Vietnam question was Premier Pha.m Van Dong's four-point proposal. Chinese Communist Political ea.c ons Peiping is displaying a, somewhat tougher stance on nego- tiations than is Hanoi. The SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 2 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 NOW %%or SECRET 16 April People's Daily edi- torial hammered atthie neces- sity for withdrawal of all US armed forces from South Vietnam as "an indispensable precondi- tion" for a peaceful solution and warned that "the issue of peace and war" hinges on whether the US will get out of Vietnam. It omitted the passing refer- ence to negotiations mentioned in Pham Van Dong's formula, while endorsing his proposal as the only way to restore peace. Peiping's hard line on ne- gotiations has been reinforced by the intensification of Chi- nese propaganda efforts designed to mobilize support, both for- eign and domestic, for the re- gime's Vietnam policy. On 20 April Peiping announced that the Standing Committee of the Na- tional People's Congress--China's rubber-stamp parliament--had adopted a resolution calling for the Chinese people to join "with the world's people" in launching a "powerful mass movement" to force the United States out of Vietnam. The Chinese people were instructed to make "full prep- arations" to send men to fight alongside the Vietnamese in the event that the United States "continues to expand the war" and the "Vietnamese people need them." This conditional resolu- tion, although putting the Na- tional People's Congress stamp of approval on previous Peiping declarations, does not represent any extension of Peiping's com- mitments. It appears designed to increase the credibility of ;previous pronouncements. President Johnson's 17 April declaration that the US will never be forced from Vietnam un- til South Vietnamese independ- ence is guaranteed has been singled out by Peiping for bit- ter criticism. Emphasizing Pei- ping's professed unwillingness to settle for anything short of complete Communist victory in Vietnam, a People's Daily edi- torial on 21 April asser s that the President in fact seeks the "permanent occupation" of South Vietnam and the "perpetual divi- sion of Vietnam." The editorial stresses that "the very purpose" for which the South Vietnamese "'people" are fighting is to destroy completely this "so- called independent country" and to realize the "reunification and complete liberation" of Vietnam. In 'language resem- bling the 20 April National People's Congress resolution on Vietnam, the editorial pledges that the Chinese people and the "people of the world" will support the Vietnamese "people" as long as the latter have to fight. US and South Vietnamese aircraft kept up the steady pace of bombing attacks and armed reconnaissance against lines of communication in North Vietnam during the past week. Strikes were conducted on all SE CRE'W' 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 3 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Soo, swe SECRET seven days. Considerable suc- cess was achieved in bombing runs against eight bridges; seven were either destroyed or rendered unusable and the other was damaged. The armed reconnaissance missions flown both day and night on a daily basis along the major rail lines and high- ways south of the 20th parallel were less successful. Targets were generally hard to find, probably as a result of North Vietnamese resort to night travel, camouflage, and use of secondary roads. Several mil- itary camps, ferry landings, and a chokepoint on the communica- tions line were also attacked. Military Developments In South Vietnam In South Vietnam, the heav- iest fighting of the week was reported in Quang Tin Province, where government air and ground elements attacked a strongly fortified entrenchment of three Viet Cong battalions 28 miles south of Da Nang air base, near the frequently harassed govern- ment outpost of Viet An. US military authorities confirmed 150 Viet Cong killed as the result of initial air strikes, while the latest unofficial estimates place enemy losses as high as 300 dead. Friendly forces reportedly sustained ca.s- ua.lties of 100 killed, wounded, and missing. On 15 April, 230 US and Vietnamese aircraft, including 50 B-57s and 79 F-100s, flew 443 attack sorties against the main headquarters of the Viet Cong in their War Zone C in western Tay Ninh Province-- northwest of Saigon. An esti- mated 862 tons of bombs were dropped on an area. three kilo- meters by six kilometers. Re- sults of the air action are still inconclusive. Govern- ment ground forces in a, follow- up search-and-destroy operation between 16 and 18 April failed to establish contact with the Viet Cong, but recovered small amounts of foodstuffs, weapons, documents, and materiel. Communist guerrillas for the first time last week pene- trated the US Marine security perimeter at Da Nang air base, slightly wounding two marines with a barrage of hand grenades and directing small arms fire at a. battery emplacement. Enemy mortar and small arms fire was also placed on US Marines defend- ing the important Phu Ba.i air- strip in Thua Thien Province. A document captured in late March in Binh Duong Prov- ince north of Saigon indicates that the Viet Cong have been making preparations for a major SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 4 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 N101 1W SECRET campaign in the area. Targets of the L carps gn were r ported to be provincial and district capitals along the highway running due north of Saigon toward Cambodia. The report also notes that the Viet Cong have been recruiting, stockpiling, and concentrating units in the same general area. Political Developments In South Vietnam Dissension within South Vietnam's military leadership remains apparent following the recent naval mutiny, which now is reported to have had some adverse effect on the conduct of naval operations. Armed forces chief General Minh wants to take disciplinary measures against the rebel naval officers, whereas Premier Qua-t, backed by certain generals in sympathy with the revolt, is urging a delay in further action until the charges of the naval sub- ordinates against their commander have been fully investigated. SE CRE T 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 5 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 SECRET COMBAT POTENTIAL OF SA-2 SAM SITES Discovery of an SA-2 sur- fa.ce-to-a.ir missile site under construction near Hanoi raise questions regar ing e combat potential of newly deployed sites. Estimates of range and altitude capabilities of the equipment the answers, but other factors First, an SA-2 launch site is not designed to operate inde- pendently for any length of time. It requires the services of a technical support battalion, which is usually located at regimental level, to achieve any sustained level of combat readiness. Since a launch site can handle only one target at a time, several sites with over- lapping coverage are needed around a defended area. SA-2 regiments normally have four sites, although the number can vary from three to six. The model of the radar used for target tracking and missile guidance also affects system capabilities. ~ The Soviets typically as- sign about 150 men to a. launch site. A four-site regiment with headquarters and technical sup- port elements totals close to a thousand men. Many of the equipment operators need only a few months' training, but maintenance and missile assembly require a. large number of skilled technicians with much more ex- tensive training. An SA-2 site is not neces- sarily static. A well-trained crew can disassemble an emplaced launch site in about four hours, move it by road to a prepared location, and put it back in operation in as little as six holars. SE CRE T 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 SECRET Between 6 and 9 April Bul- garian security organs report- edly frustrated a coup against the regime of party boss Todor Zhivkov. Little is known of the extent of the group's sup- port, but it is unlikely that the regime's stability has been seriously weakened. Although the plotters are being labeled "pro-Chinese," particularly by Soviet bloc sources, they appear basically nationalist--and therefore "anti-Soviet"--in outlook. Their probable goal was to loosen or break Bulgaria's sycophantic ties with the So- viet Union. The principal plotters ap- pear to have been Bulgarian mil- itary officers or civilians who had served in the same par- tisan unit during World War II. Ivan Todorov Gorunya, a central committee member and ex-partisan from the Vratsa area, has com- mitted suicide. Major General Tsvetko Anev, commandant of the Sofia garrison, and Tsolo Krus- tov, former commandant of Vratsa partisans, have been arrested. Elements of the Bulgarian Navy may also be involved. The regime did not take pub- lic note of the coup reports un- til 22 April, when it denied any threat to the "public order" or the "regime's stability" had been involved. Western diplomatic sources indicate, however, that party ideologist Mitke Grigorov spoke of the plotters' activities to a party central committee ple- num on 14 April, and to a small select group of party leaders on 15 April. In addition, six other leading party figures, including Zh:ivkov, have addressed local party meetings--principally around Sofia--since the plot was uncov- ered. The regime's willingness to issue a statement strongly sug- gests it has arrested all major participants in the suppressed coup. The Bulgarian party has a long history of acute factional- ism. In early 1961, a narrowly based faction having a "nation- alist" orientation apparently wanted Zhivkov to alter his pol- icies along lines adopted by Yugoslavia. 23 Apr 65 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 7 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 N801 NIM# SECRET NEW TREATY REFLECTS ALTERED SOVIET-POLISH RELATIONSHIP The new 20-year treaty of alliance signed early this month in Warsaw by Brezhnev and Kosy- gin formalized a new stage in Soviet-Polish relations. The USSR took the unusual step of ratifying the treaty within a week after signature. The "completely unanimous" agreement claimed by both sides had been achieved only after a year of hard negotiating. In addition, interpretations of the treaty in speeches by the Polish and Soviet leaders reflect di- vergencies in emphasis stemming from diverse national interests. This type of "harmony" may be reflected in future negotiations between the Soviet Union and other East European countries. its hands on this issue in any talks concerning Germany. At the same time, the consultations clause grants the Poles a hedge against future Soviet moves in Central Europe, and this prob- ably was instrumental in per- suading them to accept Moscow's wording on the Oder-Neisse line. Even this weak statement, together with the apparent suc- cess of recent Polish-Soviet economic talks and the signing of a convention which may again permit the repatriation of eth- nic Poles from the USSR, will enable Gomulka to point to tan- gible achievements in counter- ing domestic critics of his policy of closer relations with the USSR. The treaty obliges the USSR to consult with Poland on all major Soviet foreign policy moves affecting it. Together with Brezhnev's assertion that there is room for differences in foreign as well as domestic policies of socialist states, this provision extends the limits of Polish autonomy. Gomulka took immediate advantage of this to make a more favorable refer- ence to US "bridge-building" proposals. Poland failed to get an explicit guarantee of its west- ern boundary written into the treaty, which merely describes the integrity of the Oder-Neisse line as "one of the main factors" of European security. Moscow apparently wants to avoid tying Poland's part of the bar- gain apparently included meas- ures to tighten the military alliance. Shifts last February in its military hierarchy, which give key posts to "pro-Soviet" generals, followed reports of Soviet concern about national- ism in the Polish military leadership. Gomulka's reiterated pledge that the Polish party would warmly support all initiatives aimed at overcoming Communist disunity appears to be a re- sponse to Brezhnev's implicit suggestion that such a common approach is one condition of the new type of relations among SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 8 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 N SECRET RUMANIAN FOREIGN POLICY PROBLEMS Developments in the last month have reduced the options available to the Rumanian lead- ership in furthering its national interests. It has failed to ex- pand commercial relations with the US significantly, and seems to be hard put to ignore the pressure for Communist unity created by the Vietnamese situa- tion. As a result, some accom- modations will probably be made, but without any real modifica- tion of the regime's independent posture. Bucharest's latest diffi- culty in dealing with the US was the collapse last week of lengthy negotiations with the Firestone Company for a synthetic rubber complex which the Ruma- nians had regarded as the key item in the shopping list they presented to the US last May. Rumanian officials have attempted to endow the Fire- stone negotiations with implica- tions for all Eastern Europe. A Foreign Ministry official said in March that "many peo- ple. . .not just here but else- where" are awaiting with inter- est the outcome of the talks. If they were to fail, "people elsewhere" would gleefully say "you cannot count on America for economic support." Delays in arranging commer- cial deals in the US had al- ready caused Rumania to cancel one purchase. In addition, the regime has complained about problems in finding US markets for its products. Commercial relations with Western Europe are likely to be expanded as a result. These developments may, in part, account for Bucharest's apparent stalling in talks for a consular convention with Wash- ington. Rumanian displeasure may also be reflected in the re- giime's being less reluctant to condemn "US imperialism" in Vietnam. With Moscow and Pei- ping both attacking the US posi- tion, Rumanian leaders probably believe they have little choice. Rumania has in the past gained maneuvering room for dealing 1 with the West, among other things, by playing off Moscow's differences with Peiping. However, no basic reorien- tation of regime policies is likely. Decisions announced after a 14-15 April central com- mittee plenum emphasized the independence of Rumania's for- eign policy. They also indi- cated that the country's col- lective leadership has been working effectively since the death of party first secretary Gheorghiu-Dej. The top four party leaders will deliver the major addresses at the fourth party congress, which opens on 19 July. The fact that the regime can make this announce- ment three months in advance augurs well for a period of stability at the to . 25X1 F_ I SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 SECRET INDONESIA CELEBRATES BANDUNG CONFERENCE ANNIVERSARY The Bandung anniversary con- ference, which began on 17 April, appears to have been no more than it was billed to be--an an- niversary celebration. The speeches, as expected, were ran- corously anti-Western and unsub- stantive. Some of the delega- tions left when the Djakarta phase of the.. celebration ended on 20 April.,.. but others, includ- ing the Chinese and the North Vietnamese,. are staying for a few more days. Festivities in other parts of Indonesia will continue through 26 April. Once the celebration is over, Indonesia is expected to THE CYPRUS SITUATION Tension between Turkish and Greek Cypriots increased rapidly on 15 April when the government banned the movement of people or. supplies in or out of the Turkish quarter of Nico- sia. The ban followed a shoot- ing incident and the discovery that Turkish Cypriot fighters had infiltrated abandoned Greek Cypriot shops along the dividing line. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY return to matters which were held in abeyance during the most of April: repressive ac- tion against remaining anti- Communist elements, further Communist pressure against Amer- ican presence in Indonesia, and increased paramilitary activity against Malaysia. The Japanese delegation to the anniversary conference went on to Malaysia from In- donesia, and proposed a meet- ing in Tokyo between Sukarno and Malaysian Prime Minister Rahman. Rahman agreed to at- tend such a meeting; Sukarno has not made his position clear The restriction on supplies has since been lifted, and ten- sion has eased somewhat. How- ever, the prohibition on move- ment of persons is to remain in force, according to government spokesmen, -until. the Turkish Cypriots remove their fighters from the shops and permit in- spection of the disputed sec- tion by UN troops. Page 11 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 VAW SECRET President Makarios' plans to accelerate his "peace offen- sive" may have been delayed but apparently were not abandoned as a result of the latest crisis. On 21 April, the government lifted restrictions on freedom of movement in the southern two thirds of the island. Turkish Cypriots living in this area generally have adapted to living under Greek Cypriot administra- tion. Frustration and fear that time is working against Turkish interests on Cyprus have led Ankara to step up pressure on Athens to negotiate a Cyprus settlement. The remaining few thiousand Greek citizens in Tur- key are to be deported, and the Orthodox Patriarchate in Istan- bul will be investigated and possibly expelled. Reaction in Athens indicates that meaningful Greek-Turkish negotiations are probably less, rather than more, likely as a result of these moves. Five moderate West African states led by Ivory Coast Pres- ident Houphouet-Boigny have launched a major effort to pro- vide military and administrative assistance to the Leopoldville government. This Congo initia- tive,planned in outline last February, is regarded by the sponsoring governments as part of a broader scheme to organize the continent's moderates against radical African--notably Ghana- ian--pressures and Communist-- particularly Chinese--inroads. At a meeting in Abidjan earlier this month, Ivory Coast, Upper Volta, Niger, Togo, and Senegal agreed to press for Con- go's immediate admission to their embryonic African and Malagasy Common Organization (OCAM), pres- ently composed of 13 ex-French territories and the former Bel- gian trust territory of Rwanda. The Abidjan group and any other OCAM members willing to help Tshombd 'are then to make avail- able military and lower level administrative personnel. The troops are to be drawn mainly from the pool of 10,500 African servicemen recently demobilized from the French Army. They would be employed to secure "pacified" areas and thereby free Congolese Army forces for antirebel operations in place of the white mercenaries. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 12 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 w w .ADRI AN & MALAGASY COMMON ORGANIZATION (OCAM) Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 NOW SECRET Asia-Africa To win support-for this plan, which is sure to be re- sisted by the leftist regime in Brazzaville and probably by some other OCAM states, the Abidjan group is sending special emis- saries to many African and a few European capitals. The sponsors have indicated that in time they, would require finan- cial and material help from the US and other Western countries. France, previously cool to its protege states' Congo plan, has recently appeared more favorably inclined. reintroduction of other African troops under any guise. Circumstances within the Congo continue to favor the government, as they have for several weeks. The rebellion in the northeast has deteriorated although some of the' .har= har=dier rebel bands continue re- sistance. The mercenaries have completed the "sealing" of the Sudanese border. High Sudanese officials state that they are disarming fleeing rebels, and that arms deliveries through the Sudan have stopped. Even the regions adjacent to Lake Tanganyika remain fairly quiet despite frequent alarms of impending rebel activity Premier Tshombe in fact applied for admission to OCAM last month only to have his overture spurned by the organization's current head, the President of Mauri- tania. Neither Tshombe, Presi- dent Kasavubu, nor army chief Mobutu is prepared to dismiss the Congo's mercenaries, and Mobutu strongly opposes the SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 13 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 SECRET INTERNAL TENSIONS IN GUINEA Continuing signs of tension in Guinea indicate that Presi- dent Toure's basically leftist one-party regime may be under severe strain. Conakry's eco- nomic controls, under which the country's prosperity has de- clined drastically, are the ma- jor focus of discontent. Tribal antagonisms also appear to be increasing. Last November, President Toure launched a crackdown on economic irregularities. The government has investigated the private finances of government and party officials, arrested smugglers and jobless migrants, put stringent limitations on traders, and decreed the clos- ing of frontiers.' There have been many rumors of brutal treat ment of individuals caught in the police net. However, despite the gov- ernment decree, large numbers of Guineans are still leaving the country in search of better conditions, and are continuing their customary practice of tak- ing their products to neighbor- ing states to trade for consumer goods unobtainable at home. There have been a few instances of disorders when sizable groups of transient Guineans, sometimes entire villages, congregated on one side or the other of a pa- trolled area of the frontier. Many of the disciplinary actions and most of the rumors of further trouble involve the Fulani people, who make up over a third of the population. They were a favored group under French rule and have tended to remain somewhat aloof from the Tour6 regime. Some of TourA's recent foreign policy moves reflect con- cern over Fulani attitudes. His round of contacts with other Af- rican presidents in March, for example, apparently involved a search for reassurances of sup- port for his government. Resolu- tion early this month oftGuinea's long-standing financial disputes with Paris is probably related to Fulani criticism of the exclusion of France from Guinea's economic development since 1958. Conakry has also been worried by Portu- gal's arming of several thousand Fulani who are natives of Por- tuguese Guinea. While the government party's national council meeting, sched- uled for 8-10 May, might resolve some of the more immediate prob- lems, such as foot-dragging and factionalism within the regime leadership, tension is unlikely to relax significantly until the economy picks up. Guinean hopes are focused on rapid development of a massive bauxite deposit, but negotiations to exploit it now appear to be on dead center. Given the domestic situation, the regime may suddenly look for scapegoats, and an abrupt change in its present favorable atti- tude toward American aid and in- vestment is one possibility.F_ SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 14 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 SECRET Europe COMMON MARKET: THE FINANCIAL REGULATIONS PROBLEM The EEC Commission's pro- posals for financing the common agricultural policy (CAP) and ultimately giving the EEC its own source of revenue have set the stage for a crucial com- munity debate. They go beyond anything anticipated at this stage of the EEC's development, and by combining financial in- ducements with federalist prin- ciples, confront Paris in par- ticular with a difficult choice. The proposals recommend a new CAP financing system to re- place the temporary arrangements which expire on 30 June. For an interim period from June 1965 to June 1967 there would be a new and more equitable scale of mem- ber-state contributions from national appropriations. Be- ginning in mid-1967, however-- when the Commission proposes the customs union become fully ef- fective-.-the community's income would include all receipts from the variable levies on EEC im- ports of agricultural items plus progressively increasing por- tions of the duties collected on all other imports. By 1973, all revenues from both sources would belong to the community. According to Commission es- timates, annual community levy and customs receipts will total at least $2.2 billion by 1967. These receipts are at present an important source of national revenue, and they far exceed con- templated community expenditures. By instituting a "veritable fed- eral budget," the plan would give a large measure of budgetary independence to the EEC, and end the present situation in which the Council invariably cuts even the modest expendi- tures proposed by the Commis- sion. It is unclear how much of its plan the Commission expects to achieve in the next few months. Even some of its friends have said it has "gone too far." Similar criticisms were heard, however, when the Commission "prematurely" proposed grain price unification in October 1963, but by maneuvering among conflicting national interests achieved the historic compromise of last December. It may be hoping to effect another such compromise or, failing that, at least to stake a claim to counter De Gaulle's attempts to bring the other EEC countries into a political union without effective central institutions. In any case, the Commission plan will point up once more the ambiguity if not the dilemma of De Gaulle's European policies. The financial regulations, like the agricultural integration he has pressed so hard for, are much to French advantage and are in logical sequence to the degree of integration already achieved. Yet, agreement on them would carry the EEC still further to- ward the supranational community De Gaulle has consistently op- 7 SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 r ~fto SE CRE'W' The new Dutch cabinet headed by Joseph Cals, which was sworn in on 14 April, includes the Labor Party in place of the business-oriented Liberals. Its economic program therefore will probably be less restrictive on wage policy than that of the outgoing government, and thus result in a weakening of the anti-inflation effort. Dutch foreign policy, including a long-term effort to improve re- lations with Indonesia, is likely to continue along the same general lines. Cals is, like his predeces- sor, a member of the Catholic Party, the country's largest parliamentary grouping, and he has a notably cordial relation- ship with the second largest, the Labor Party. The third member of the coalition is the Protestant Anti-Revolutionary Party. Cals has tried to mini- mize differences among coalition members on financial, economic, and social policies by emphasiz- ing the shortness of the new government's tenure in view of the 1967 elections and the con- sequent impracticality of long- term programs. Cals is expected to provide more vigorous leadership than his predecessor and he hopes to obtain unprecedented authority to arbitrate cabinet disagree- ments. This will not, however, fundamentally compromise the peculiar Dutch doctrine of the individual responsibility of each minister. Foreign Minister Europe Luns, for example--a holdover from the last cabinet--will alone be authoritative and responsible in foreign affairs and must speak for the Nether- lands even when heads of state are involved. Cals can be expected to give general support to Luns, whose policy positions he shares, despite some personal lack of sympathy and a back- ground of differences over the New Guinea issue in 1962 when Luns took an especially hard line. In particular, the Dutch Government, with its usual high regard for the country's busi- ness interests, is expected to continue pushing the restora- tion of Dutch-Indonesian com- mercial ties. This policy re- ceived considerable impetus from Luns' visit to Djakarta last July and the subsequent agreement on a $25-million Dutch credit . Friendly feeling in Indo- nesia toward the people and customs of the former colonial power seemed to increase for a time after the Luns visit. A contract was signed for Dutch help in the extension of ship- yard facilities, and discussions of highway, mining, and techni- cal assistance projects were initiated. However, recent Com- munist gains in Indonesia and an upsurge of feeling against Western economic enterprise are now causing delay in implement- ing projects. SECRET' 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 16 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 GUERRILLA ACTIVITY, APRIL 1965 ~ommttrttt,dm~nated Viota . Fusagasuga COMMUNIST LEADER VARELA Photo taken before 1953 wmev~o nr~o umopaz l_- _ 'ACTA EI Pato' ECUADOR Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 1WW SECRET Western Hemisphere A special session of con- gress has been called by Colom- bian President Valencia for 26 April to consider tax reform and other recommendations of a commission set up last January in response to labor union de- mands. The special session may run into difficulty arriving at the two-thirds majority re- quired to pass important legis- lation. Failure to enact mean, ingful reforms could cause ex- isting public cynicism and dis- illusionment to crystallize into a more direct and overt opposition to the governing Na- tional Front coalition. Such an outcome is already the goal of several political groups, including the followers of General Rojas Pinilla, the ex-dictator (1953-57), and of General Ruiz Novoa, former min- ister of war. Many of these people and several parties out- side the front have formed a loose alliance called the Na- tional Assembly. Communists, too, seem to be taking advantage of the Na- tional Front's weakness. Po- litical overtones to banditry are becoming more noticeable, particularly in southern Tolima and nearby departments. Commu- nist guerrilla activity and kidnapings of important people are already a cause for deep concern. The Colombian Communist Party (PCC) held its 31st plenum in Viota from 28 March through 2 April. As part of the PCC plenum's decision to support all insur- gency, aid presumably will now go to Juan de la Cruz Varela, Communist boss of Sumapaz~__ In addition to the victims of his banditry, Varela is accused of murdering at least 50 people, including his four brothers, just to maintain his supremacy in Sumapaz. He may provide a link in the Communist chain of armed insurrection that then would extend across the northern border of Huila, joining the upper reaches of Colombia's two major river val- ley systems--the Magdelena and the Cauca. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 1%W %4000 SECRET Western Hemisphere POLITICAL SITUATION IN GUATEMALA Guatemalan Chief of Govern- ment Enrique Peralta speaks of re- turning the military to their nor- mal occupations and of restoring the nation to constitutional gov- ernment. However, the public con- tinues to accept Colonel Peralta in his present role, and many businessmen prefer his military regime. These attitudes, to- gether with the inability of the military "High Command" to agree on an official presidential candi- date, may convince Peralta that the "best thing for the country" would be for him to remain in of- fice. The state of siege imposed on 24 February has not been lifted, so that overt political activity is at a standstill. The constitu- ent assembly is expected to com- plete the new constitution in June, in which case elections for the president and congress ought to be scheduled for the end of this year. Should elections be held, there are four political parties with the legal status necessary to participate. The government-backed Demo- cratic Institutional Party (PID) is expected to be the vehicle for an official candidate. The Na- tional Liberation Movement (MLN) --not being disposed to antagonize Peralta by pressing for its fa- vored candidate, armed forces Chief of Staff Ponciano--is ex- pected to cooperate with the PID in backing a government candidate. The Revolutionary Party (PR), a moderate leftist group, will offer its director, Mario Mendez Monte- negro, who will provide the "demo- cratic opposition" in accordance with a deal between the PR and the PID concerning cabinet positions. The only other legal party is the Guatemalan Social Party (PSG), re- cently formed to back Finance Min- ister Caballeros, a controversial figure who has the backing of significant elements in the gov- ernment. A well-controlled contest among these four parties would re- sult in a successor government en- tirely acceptable to the present military administration, which would then "retire to the barracks" as promised. Such a development, however, would leave a signifi- cant part of Guatemala's politi- cally conscious citizenry without representation and might lead the extreme right to join with the left in concerted illegal o If Peralta. decides that dis- order would accompany an election campaign or that the results could not be easily controlled, he will be all the more susceptible to pressures from his close ad- visers and businessmen who wish to see the military government continued. SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY 25X1 25X1 Approved For Release 2008/05/12 : CIA-RDP79-00927A004800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 SE CRET Western Hemisphere Last January the Ecuadorean Government authorized barter trade with the Communist bloc as a measure to increase lagging markets for the country's major product, bananas. It began forming a commercial mission to visit various Far Eastern and European Communist countries and Japan. Rumors indicated that, although Ecuador severed diplomatic relations with Commu- nist countries. in April 1962 and has had no significant trade with them since mid-1963, rec- ognition might be extended in support of economic policy. In late March departure of the trade mission was postponed, partly because Ecuador had turned its attention to its bor- ders with Peru. Nevertheless, given the sharp drop in first- quarter exports, the trade mis- sion probably will set out later, and the possibility of eventual recognition of one or more Com- munist countries remains. 25X1 SECRET 23 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 19 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9 Vw r.7LrlwLtJ~ l SECRET Approved For Release 2008/05/12 : CIA-RDP79-00927AO04800110001-9