WEEKLY SUMMARY

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A005600060001-6
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
37
Document Creation Date: 
December 21, 2016
Document Release Date: 
June 27, 2008
Sequence Number: 
1
Case Number: 
Publication Date: 
January 27, 1967
Content Type: 
SUMMARY
File: 
AttachmentSize
PDF icon CIA-RDP79-00927A005600060001-6.pdf773.38 KB
Body: 
Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 NEW Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY State Dept. review completed OSD review completed cret 48 27 January 1967 No. 5.4/67 z71 r1 ? Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 25X1 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET %o' (Information as of noon EST, 26 January 1967) THE WEEK IN PERSPECTIVE VIETNAM Communist-initiated military action declined in South Vietnam this week, but there is increasing evidence of possible future moves in the northern part of the country. The dismissal of southern General Co is be- coming more widely known in Saigon and could exacer- bate relations between northern military leaders and southern politicians. North Vietnam's rice harvest may be the worst in years. Large truck convoys are :reported moving south through the Laos panhandle. COMMUNIST CHINA The internal struggle appears to have been brought to a major turning point by the public threat of Maoist leaders to use the army against their adversaries. There are indications, however, of cleavages within the military and of confusion and disunity in the Maoist faction itself. ANTI-SUKARNO CAMPAIGN ACCELERATES IN INDONESIA More key figures in the 1965 coup attempt have been arrested and reportedly are further implicating Su- karno. BURMA SEEKING TO PURCHASE US MILITARY EQUIPMENT General Ne Win apparently is prepared to depart from his carefully plotted neutralist course, partly out of concern over the implications for Burma's security of the upheaval in China. NEGOTIATIONS OVER MACAO STALEMATED Despite Chinese Communist economic pressure and gun- boat diplomacy, there are signs that the Portuguese position has hardened. The evacuation of Portuguese dependents from Macao continues. OSD review completed SECRET Page i WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Page 1 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 SECRET Europe SCVIET LEADERS CONFER WITH GOMULKA They consider him the key East European leader with regard to intrabloc problems and want his support for Moscow's China policies. CCAL-STEEL PROBLEMS POSE THREAT TO EUROPEAN COMMUNITY The need for decisions on the problem of high costs and overproduction within the coal and steel industries has brought a threat to the authority of the Communi- ty's supranational executive. SECR1?'I' Page ii WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 SECRET ISRAEL AND SYRIA MEET ON DEMILITARIZED ZONE DISPUTE There was no immediate progress toward an accommodation of their dispute over farming in the zone, and pros- pects for a reduction of tension along the border ap- pear slim. IMPASSE CONTINUES BETWEEN CONGO AND UNION MINIERE A few glimmers of hope appeared during the week that a deal could be worked out, but it is still unclear whether the company is willing to go back into the Congo at any price. The Congo is in for a serious short-term foreign-exchange and supply crisis no mat- ter what the outcome of the dispute. TANZANIA REMOVING WESTERN SCHOOLTEACHERS President Nyerere's current efforts to reduce Western influence in the educational system will provide a new opening for the Communist countries to expand their presence in Tanzania. POLITICAL STORM SIGNALS IN CENTRAL AFRICAN REPUBLIC Rising public discontent with and increasing strains within President Bokassa's regime--which came to power through a coup a year ago--may culminate in a new up- heaval. Western Hemisphere NICARAGUA TENSE FOLLOWING PRE-ELECTION RIOTS AND ARRESTS The long-ruling Somoza family's principal opposition staged a riot last Sunday which it was hoped would provoke an oppressive government crackdown warranting OAS intervention in the 5 February election. Although more violence flared on 25 January, the government still plans to hold elections as scheduled. SECRET Page iii WEEKLY SUMMARY 27 Jan 67 25 26 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 SEC REF DOMINICAN GOVERNMENT MOVES AGAINST OPPONENTS The heavy-handed round-up of numerous opponents of the Balaguer regime--Communist as well as non-Com- munist--has unleashed a torrent of criticism against the government for "Trujillo-like" Policies. NEW CONSTITUTION TO STRENGTHEN BRAZILIAN EXECUTIVE The constitution that goes into effect when Costa e Silva becomes president on 15 March continues many of the special powers exercised by President Castello Branco under the Institutional Acts and other decrees that lapse on that date. CHILEAN PRESIDENT SQUARES OFF AT CONGRESS Repeated senatorial obstruction of President Frei's reform program, capped by the vote that forced him to cancel a visit to the US, has led him to introduce a constitutional reform that would allow the president to dissolve Congress and call new elections once dur- ing his term. ECUADOR-PERU BOUNDARY CONTROVERSY MAY ERUPT AGAIN The 25th anniversary of the Rio Protocol, which estab- lished the boundary, falls on 29 January. It is like- ly to be marked by serious demonstrations in Quito and Guayaquil, and possibly even by armed clashes along the border. SECRET Page iv WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 SECRET FAR EAST The struggle in China appears to have been brought to a major turning point by the public threats of Maoist leaders to use the army against their adversaries. This resort to open intimidation reflects deep concern in the Mao faction over the strength of opposition forces. Actions by leaders around Mao last week sug- gest that they now believe that the use of direct military force is the only way to overcome their en- trenched enemies in the party apparatus. They or- dered the army on 23 January to begin supporting pro- Mao forces in suppressing "antirevolutionary ele- ments." According to a wall poster in Peking, troops of the Peking garrison crushed "counterrevolutionary" forces in a town 30 miles south of ,the capital--the first publicized report that troops have been used in strength against Mao's enemies. Despite propaganda portraying the armed forces as united and loyal to Mao, there were further indi- cations of cleavages within the military and of con- fusion and disunity in the Maoist faction itself. Concern over the implications of the upheaval in China for Burma's security probably underlie Gen- eral Ne Win's decision to seek modern military equipment from the US. This approach to the US rep- resents a major departure from Burma's cautious neutralist policy. There was no change last week in the pattern of Communist military action in Vietnam. The Saigon military regime's dismissal of Defense Minister Co so far has produced no political repercussions from southern politicians. Although the anti-Sukarno campaign in Indonesia has accelerated, no definitive action against the President apparently will be taken before congress meets in March or April. The Suharto government is preparing the ground by publicizing more information on Sukarno's involvement in the attempted coup of October 1965. SECRET Page 1 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 0 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET w un-ming 100 200 MILES 27 JANUARY qN ~~ GIANG C o ~ PHUOC LONG PHUOC TUY , QUANG NGAM PHU BON DUC KHAN HOA CAPITAL MILITARY 70 TA HIEN PHU YEN 65518 1-67 CIA The Indochina -South China Area 25X1 SECRET Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 *War SECRET VIETNAM The pace of military activity in South Vietnam slackened dur- ing the past week, as Viet Cong/ North Vietnamese Army (NVA) forces initiated few significant actions and continued to avoid major con- tact with allied search-and-de- stroy operations. In what was probably the week's most important Communist initia- tive, enemy units on 20 January shelled the US Marine enclave at Phu Bai, ten miles southeast of Hue in northern coastal Thua Thien Province, inflicting 44 American casualties but no major damage to equipment. In response to this threat, additional US Marine units have been deployed to the Phu Bai area to prevent the Communists from disrupting local rice harvesting activities and to support marine elements positioned south of the Demilitarized Zone (DMZ). FS-izable numbers of North Vietnamese troops are mov- ing across the formerly neutral buffer zone, possibly to rein- force battalion-strength elements of the NVA 324 "B" Division known to be operating in the northern- most districts of Quang Tri_ Prov- ince. Simultaneous and coordin- ated mortar and ground penetra- tion attacks against six South Vietnamese police posts and civil- ian hamlets in the eastern por- tion of the DMZ on 21 January may be indicative of a general intensi- fication of Communist activity in this area. Allied Ground Operations Multibattalion allied task force elements engaged in Opera- tion CEDAR FALLS this week con- tinued their systematic destruc- tion of the Viet Cong's Iron Triangle base area in Binh Duong Province, north of Saigon. Al- though the three-week offensive has established only light and sporadic contact with enemy main force units, over-all Communist personnel and materiel losses have been heavy. As of 27 Janu- ary, more than 700 Viet Cong had been killed, 200 captured, and 500 apprehended as suspects. In addition, allied sweep forces had confiscated nearly 4,000 tons of rice and 566 weapons. US casualties to date stand at 72 killed and 328 wounded. Two airborne battalions of the South Vietnamese Army (ARVN), conducting a search on 20 Janu- ary for a suspected enemy troop concentration, encountered Viet Cong elements estimated at SECRET Page 3 WEEKLY SUMMARY 27 Jan 67 25X1 25X1 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRE'T' battalion strength in an area ten miles west-northwest of Saigon. The paratroops killed 117 and captured 12 of the enemy, while :Losing one killed and 14 wounded in the action. There are tenta- tive indications that the enemy force may have been massing for a possible attack against nearby Tan Son Nhut Airfield Dismissal of General Co The ouster of Deputy Premier and Defense Minister General Co ---agreed on last week by his mil- itary peers but kept generally secret until this week--has so far brought no serious repercus- sions. Co, although widely con- sidered to be corrupt, was South Vietnam's most prominent southern- born general in a position of po- Iitical influence. The removal of Co is the latest in a series of changes in the military hierarchy over the past year, allegedly aimed at ridding the government of officers who are either corrupt or somewhat independent of Sai?- gon's control. The fact that generals so far dismissed have either been from south or cen- tral Vietnam has led to charges that Ky and other northerners are attempting to entrench them- selves in power. There have been reports, for example, that several more province chiefs in the delta provinces of IV Corps are about to be replaced. These changes suggest that the military leaders now in power are attempting to pack key posts with loyal followers. There are also scattered re- ports of an initial military plan to establish a grass-roots political mechanism in hopes of electing one of the military leaders, possibly campaigning as a civilian, as the first constitutional president of South Vietnam. Poor Harvest Reported In North Vietnam unusually small SECR1fl Page 4 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET the harvest may have fallen short by 800,000 to a million tons. Although it is not clear whether this meant a shortage from a planned total of about 5 million tons or from an an- nual average of about 4.5 million tons, either would be significant. Both early and late rice crops in 1966 were below average because of poor weather and difficulties caused by the US bombings, but there is no evidence to confirm shortages of this magnitude. the harvest would be lower than the poor harvests of 1960 and 1963 and possibly the lowest ever at- tained under Communist rule. Such a failure in domestic production, however, would not create serious food problems, for North Vietnam could, as it has in the past, make up shortages in domestic produc- tion by stepping up its usually modest imports of food from Commu- nist countries. North Vietnamese Reactivate Kep Airfield The fighter aircraft base at Kep, northeast of Hanoi, has ap- parently been returned to fully active status, providing a valuable alternative to the concentration of DRV air defense assets at Phuc Yen Airfield northwest of Hanoi. Kep had been virtually abandoned as a major MIG operating base dur- ing the latter half of 1966 after US aircraft had destroyed the field's radar facilities in June. 19 MIG-15/17 fighters are now at the field. Heavy Truck Traffic in Laos Large numbers of southbound trucks have been observed recently A total of about 340 vehicles were counted moving through the Mu Gia Pass between 3 and 17 Janu- ary, a figure as high as any re- ported comparable period during last year's dry season. Farther south, a total of approximately 225 trucks was seen on Route 23 during a five-day period in mid- January suggesting that, as in past years, the Communists are moving some of their supplies to the south in large, sporadic convoys. The movement on Route 23 also represents the first heavy use of that road in two years. During the 1965-66 dry season the Communists relied almost ex- clusively on the parallel Route 911. The reactivation of Route 23 provides the enemy with an al- ternate road south from Mu Gia thus making this portion of the logistic network less vulnerable to US air attacks. SECRET 25X1 25X1 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 ik SECRET COMMUNIST CHINA Recent Peking pronouncements imply that the forces around Mao Tse-tung are disunited and hav- ing considerable difficulty press irtg attacks against their oppo- nents. The directive issued on 23 January ordering the army to begin backing "revolutionary" forces--attributed to Mao him- self--is indicative of the strength of the opposition. It was announced for the general public by the Liberation Army Journal on 25 January. should not be a "hodgepodge" of persons, suggesting that this describes pro-Mao forces now. The editorial warned that Mao's enemies were powerful and de- vious. Their latest trick, it said, was to disguise themselves as "revolutionary rebels," an implicit acknowledgement that some reported take-overs of propaganda media and govern- ment functions by "rebel" groups have in fact been successful deceptions by opposition forces. By publicizing the new di- rective, the Maoist forces have p'-aced both their own control of the armed forces and the effec- t _ven.ess of the army as a politi- cal instrument at stake. Failure to achieve a quick victory now over the durable "handful" of op- ponents Peking has been talking about for months would be taken as an indication that the armed forces either would not do Mao's bidding or were unable to impose his will on a balky people. The tone of an editorial p-ablished in People's Daily the day before the directive was is- sued suggests that the decision to issue the directive was a dif- ficult one. One 22 January the party journal took an unusually defensive line, exhorting Mao's supporters to form an alliance-- implying they are not united now--- so they could more effectively seize power everywhere. The editorial declared the alliance The editorial referred soberly to "strong, unprece- dented resistance" and warned against expecting an early vic- tory. Speaking gloomily of more "twists and turns and reverses" which might lie ahead, it pre- dicted that the Maoist revolu- tionaries would "eventually" prevail over the "small" opposi- tion alliance. Use of Armed Forces In view of indications that Mao considers some elements of the army untrustworthy, it is unclear how far he will be will- ing and able to go in carrying out threats to use the armed forces. Maoist propaganda media have already claimed that mili- tary forces played a key role in recovering several party headquarters, but the vague de- scriptions make these forces' ,activities sound like local po- lice actions. SECRET age 6 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Pro-Mao political forces dominant Tentative Assessment of Political Orientation of Provincial Party Authorities, I 2 [ Orientation of dominant political authority uncertain Political authority probably held by forces openly or covertly opposed to Mao Communist party region boundary as o 6 January ?fi JAMMU AND KASHMIR (-W- in lrspufe) ,Urumchi 5,':1 X I ANG Lr'G U,d2 4UTO;VOAMOUS REG'C uviet conflict. The top-level z;(viet-Polish talks probably will followed by personal consulta- ions between the Russians and =)t.her foreign party leaders over next several weeks. The Soviets clearly regard :cat-sh party chief Gomulka as tt.e~ key East European Communist c: ad.er in terms of intrabioc ,,,oblems. This has long been ~vident in the efforts they have ride to secure his support for Moscow's campaign against China. _t~at week's encounter was the latest in a continuing exchange of visits at the highest level, d_l:e farm of personal contact Mos- ccw's present leaders clearly erefer. Brezhnev and Gomulka have met, either in Poland or the USSR, on eight occasions since the ouster of Khrushchev in Octo- ber 1964, but this is the first time the USSR's top three offi- cials have joined forces in such an undertaking. During Gomulka's most recent visit last fall, the Russians were successful in gaining a public joint condemnation of Pe- king's policies. Moscow finds it useful in its offensive against China to re-emphasize--as did the official announcement of last week's visit--the "full identity of views" between the USSR and Poland on the present situation in the Communist movement. Brezhnev, Kosygin, and Pod- gorny undoubtedly brought Gomulka up to date on their handling of the Chinese problem at the party plenum last month, and on their fair-flung campaign over recent weeks to indoctrinate party and military cadres throughout the USSR. Plans under way for gather- ings of East and West European Communist parties were certainly discussed and coordinated. On 20 January--two days after the Soviet-Polish talks--Pravda again stressed the utility of such re- gional party meetings. The Pravda article pointed out that while a world meeting is "really indis- pensable," one must prepare for it "very minutely." The Soviets and Poles presum- ably went over questions of Euro- pean security, particularly Bonn's recent overtures to Eastern Europe. There are indications that Warsaw, somewhat disturbed by growing West German flexibility toward the East --and fearing isolation--has put out its own cautious informal feel- ers to Bonn. The Polish-Soviet talks probably also covered Polish relations with the Vatican, es- pecially in light of Podgy orn ' visit to Rome this week. SHCRIT Page 14 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Iq Next 2 Page(s) In Document Denied Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 S E C R T COAL-STEEL PROBLEMS POSE THREAT TO EUROPEAN COMMUNITY The Council of Ministers of the European Coal.-Steel Community (ECSC) will meet in Luxembourg early next month in a new attempt to Come to grips with problems plagu- ing the coal and steel industries. The immediate problems are the high costs and overproduction within these industries, and the search for a solution during the past year has brought a threat to the role of the ECSC's supra- national executive, the High Au- hority. Unless the community can find ways to modernize these two basic industries without causing politically unacceptable economic distress in the geo- graphic areas where they are con- centrated, the individual members may resort to uncoordinated, na- tional measures. in an effort. to retain the i.nit:iative within the community, the High Authority has recently made a number of proposals for community action. Last November, :.he Council agreed to study High Authority suggestions for com- inunity-wide subsidies for coal used by the steel industry--de- sired particularly by the Germans ?--and that an ad hoc committee :should further explore problems in the steel sector. France's agreement to "study" coal was at .Least a partial reversal of its earlier position opposing a com- inuni.ty solution. It has long been hostile to the High Author- ity's supranational powers, which in some respects exceed those of the EEC Commission. Discussions taking place preparatory to the February session suggest that the principle of community-wide subsidies may be accepted, al- though the national delegations differ on the amount and scope of such payments. Fundamental differences be- tween the French and the others on steel policy, however, may not be resolved. The High Au- thority prefers production and, possibly, price controls. The French, suffering from Belgian penetration of their domestic market, want to restrict intra- community trade in steel. This .notion was reportedly opposed at a recent meeting of the ad hoc steel group by all the other delegations, who saw it as con- to the whole idea of the Community. Should a Council deadlock persist on the steel problem, the high Authority will have to decide whether it should resort to the kind of mandatory action ---production cutbacks, for ex- ample--which it can take under treaty provisions, at the pos- sible cost of another community political crisis. SECRET Page 18 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 v SECRET MIDDLE EAST - AFRICA The Middle East has come through another week of threats and counterthreats, with the most immedi- ate crisis papered over at least while Israel and Syria meet to discuss the issue of farming in the demilitarized zone. Terrorist operations against the Israelis--which have been a matter of greater concern--are being held to a minimum during the meetings. Meanwhile, the looming prospect of the Iraqi regime's seizure of Iraq Petroleum Company properties--following Syria's lead--will further embroil the Arabs with the West. On the subcontinent, India's Congress Party is girding itself for next month's elections while basic national problems of food shortages, commu- nal and religious strife, and student unrest whit- tle away at the party's majority. In Pakistan, President Ayub continues to consolidate his au- thority as one after another of the politicians now permitted to return to public life feels obliged to join his party rather than go into the opposition. In Africa, Mobutu's dispute with Union Miniere has brought the Congo close to an economic crisis, with food supplies due to run out soon in the polit- ically sensitive Kinshasa area. There was some pros- pect that the mining company and the Congolese Govern- ment could work out a deal, but it is still unclear whether the company is willing to go back at any price. In Nigeria, the paper-thin "agreements" be- tween Eastern military governor Ojukwu and Supreme Commander Gowon are beginning to show strain as the two again resort to name-calling in their fight over the country's eventual political structure. The ever-present threat of coups in Africa is highlighted by new evidence of Nkrumah's chronic plotting to regain his dictatorship of Ghana. Now there are signs of a possible "second-stage" up- heaval in the Central African Republic where a con- servative military regime came to power by a coup just a year ago. SECRET Page 19 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SI (;R, i:I ISRAEL AND SYRIA MEET ON DEMILITARIZED ZONE DISPUTE The Israeli-Syrian Mixed Armistice Commission (MAC) met for the first time in eight years on z5 January, but there was no immediate progress toward an accommodation of the two coun- tries' dispute over farming in the demilitarized zone. In ad- dition, Syria subsequently an- nounced that it will not give any guarantees that Palestinian commandos will stop raiding Is- raeli territory. Prospects for a reduction of tension along the border thus appear slim, particu- larly in view of Israel's earlier assertions that the most serious problem is the sabotage by Syrian- supported infiltrators. The delegates are scheduled to meet again on 29 January to discuss the farming issue. As in the first meeting, the head of the UN Truce Supervision Or- ganization, Norway's General Odd Bull, will be chairman. The joint statement issued after the meeting on 25 January, in which both parties "reaffirmed their commitment to refrain from all. kinds of hostile or aggres- sive action," is one on which they could agree because each has. accused the other of being the aggressor. Syria is unlikely to cease resisting what it regards as Israeli encroachment of Arab lands, and the Israelis probably will continue their efforts to establish their disputed claim to sovereignty over the entire demilitarized zone. Local UN officials, nevertheless, hope they can get an agreement on the de facto limits of cultivation in the zone. The Israeli Government is prepared to punish the Syrians if violence along the borders continues and is under strong domestic pressure to take more vigorous action. The right-wing Gahal party and former prime min- ister Ben-Gurion both have called for immediate military action against Syria, "with explanations to world opinion and to great powers later." Israel's parlia- ment, however, voted 54-21 on 24 January to accept a statement by Prime Minister Eshkol advocat- ing diplomacy, not force, to solve the country's border prob- lems. Despite this display of moderation, if the meetings with the Syrians fail to diminish the hostility along the border--and there seems little prospect that they will--the government will not need any prodding to move against Syria if further Israeli S I+.(, ` F'l Page 20 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET NWF IMPASSE CONTINUES BETWEEN CONGO AND UNION MINIERE A few glimmers of hope ap- peared during the week that the Congo and Union Miniere could work out a deal. Many difficult issues remain to be resolved, however, and even more important, it is still unclear whether the mining company is willing to go back into the Congo at any price. Even if an immediate deal were arranged, the Congo would still face a short-term foreign ex- change and supply crisis. During the week the Congo- lese continued to backtrack from their previous demands. On 24 January, President Mobutu an- nounced that the Congo was will- ing to turn the case over to an impartial tribunal. He also stated that if the tribunal found that the Congo owed Union Miniere compensation for the company property it has seized, his gov- ernment would pay. Armed with the information that the Congolese had committed themselves to arbitration and compensation, Belgian officials on 25 January made a last-ditch effort to persuade Union Miniere to reopen talks with Mobutu's government. They came away guardedly optimistic that the company would agree. As of noon on 26 January, no results had been heard from a company board meeting which was considering the question. Some disruption of produc- tion seems inevitable, however, with attendant dangers that the Congolese will take out their frustrations on the European per- sonnel who remain. Even without these added difficulties, the Congo seems to be headed for a period of eco- nomic crisis. Foreign exchange has already run out, and short- ages in imported goods are be- ginning to appear. Belgian busi- nessmen say that serious food shortages will occur in the po- litically sensitive Kinshasa area in about ten days, and very little food is now in the pipeline. SECRI'T Page 21 WEEKLY SUMMARY Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SIiCRFT TANZANIA REMOVING WESTERN SCHOOL TEACHERS ?resident Nyerere's current efforts to reduce Western influ- ence in Tanzania's educational system threatens to remove the West's last significant presence i...n that country--already heavily dependent on Communist military and economic assistance. A government order of late November freezing all hiring of foreign experts stopped the entry of 150 Peace Corps volunteers al- ready in training :For Tanzania as well as volunteers from several other Western nations. The gov- ernment decided not to accept any more foreign teachers in primary schools, although to continue them in secondary schools for the time being. In a later memorandum setting forth his new hiring pol- icy, Nyerere stated that the pro- West bias in previous recruiting had undermined the country's non- :alignment and had to be countered if Tanzania was not to "remain a Western colony." He ordered that .:x.11 personnel recruitment be chan- neled through his office. The educational system which the Tanzanian mainland inherited From the British is staffed by Western missionaries and teachers, i_n~-ludinq nearly 400 Peace Corps volunteers. It has inevitably i_oster.ed, among university stu- dents in particular, a new African elite which Nyerere finds totally incompatible with the egalitarian society he envisions for Tanzania. The issue came to a head in Octo- ber when university students demonstrated against Nyerere's plan for compulsory national service by all university gradu- ates for two years at reduced pay. incensed at the placards claiming "colonialism was better" and cha- grined at the students' lack of national responsibility, Nyerere expelled 393 of the demonstrators --over 80 percent of the student body. He became more determined than ever to prevent their emer- gence as a privileged class at the taxpayers' expense. Nyerere holds the foreign staff, principally the British, responsible for the students' ideas. e Natrona neon o Students, a Western-influenced organization, has been banned, and the Youth League, for which the East Germans are setting up a trade school, will apparently become the only authorized youth organization. The banning of English in all government business as well as recent speeches by Nyerere and his ministers indi- cate a growing wave of xenophobia. SFC,R1~"1' "age 22 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET The reduction in Western teachers plus the dismissal of the students, many of whom were destined for the understaffed civil service, will create a void which the government will be hard pressed to fill. Last June in Peking, a Tanzanian min- ister made a special plea for aid in developing Tanzania's edu- cational system. On Zanzibar the number of Communist teachers and ministerial advisers has increased steadily since 1964, and a simi- lar prospect ma be in store for the mainland. POLITICAL STORM SIGNALS IN CENTRAL AFRICAN REPUBLIC There are signs of rising public discontent with, and of increasing strains within, the re- gime which came to power in the Central African Republic through a military coup a year ago. Presi- dent Jean-Bedel Bokassa's recent shakeup of his cabinet is unlikely to check this trend, and a new upheaval. could occur. Since coming to power Bokassa has used as a propaganda theme the corruption and mismanagement which plagued the previous regime. In recent months, however, his own government, including Bokassa himself, has become susceptible to the same charges, and the pub- lic has gradually become aware that it is no better off under Bokassa's "revolutionary" regime than it was in the past. Some members of the cabinet have become progressively dis- turbed at the President's pen- chant for ceremony, foreign travel, and other expensive pursuits de- spite a deteriorating budgetary situation. There is also grow- ing frustration in the cabinet and among the subministerial elite with the incessant homage that must be paid to the chief of state. With few exceptions, high officials feel obliged to clear with him even the most trivial decisions. Bokassa whose actions have been increasingly erratic and impetuous has recently de- veloped an exaggerated concern for internal security and has resorted to heavy-handed tactics to suppress the slightest hint of opposition. Antigovernment tracts ap- peared in Bangui in late December 1966 for the first time since Bokassa's rule began. Just before the cabinet re- organization, which was mainly a realignment of responsbilities, the three military members re- portedly sought permission to SECRET Page 23 WEEKLY SUMMARY Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET .eturn to their posts in the army and gendarmerie. Bokassa is said to have turned them down and threatened to jail them. Despite their loss of formal ties with the armed forces--which remain the sole props of the regime-- these disaffected ministers prob- ably retain some influence in their old units. The possibility of a coup in the near future is mitigated by Bokassa's present. control of the rti.lA Lary. Nevertheless, his de- pendence on personal ties with army commanders and the lack of widespread popular support make his position inherently fragile over the longer run. Bokassa has allowed the previously well or- ganized single political party to degenerate to the point where it no longer is an effective means of mobilizing the popula- tion behind him. Young leftist- i_.nclined civil servants, who have been suppressed by Bokassa, may tend to coalesce with disaffected military elements against Bokassa's continued one-man rule. f ~ < 65531 i-67 SECRET Page 24 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 -M.00, Near SECRET WESTERN HEMISPHERE Domestic political activity hit a high pitch in several countries of the hemisphere this week, and there were other political developments of in- ternational importance. In Nicaragua, the opposition presidential candidate staged an uprising in an attempt to pro- voke OAS intervention and put off next week's elec- tion which he alleges will be rigged by the govern- ment. The situation remains unsettled but elections may still be held as scheduled on 5 February. Cam- paigning also continues for the 5 March national elections in El Salvador. In Haiti, President Duvalier's carefully staged legislative elections on 22 January were peaceful and his hand-picked candidates were victorious. Par- liamentary elections will be held in Jamaica, per- haps as early as March, and there are reports that aging Prime Minister Bustamante will retire. President Balaguer of the Dominican Republic ordered widespread arrests to head off what he thought was a plot against his government. Heavy- handed police actions brought charges of neo-Trujil- loism that further marred the government's image. Many of those arrested are being released. Chilean President Frei is seeking to transform last week's surprise veto of his US trip plans by a balky opposition-controlled Senate into a politi- cal victory for himself and his Christian Democratic Party. A following article gives details. SECRET Page 25 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET NICARAGUA TENSE FOLLOWING PRE-ELECTION RIOTS AND ARRESTS The Nicaraguan capital re- mains tense following the riots that broke out on 22 January after arm opposition rally and new dis- orders the evening of 25 January. The aim of the opposition coalition--the National Opposition Union (UNO)--was to provoke OAS intervention in the 5 February elections, which the UNO claims have been rigged by the long-rul- ing Somoza family. UNO presiden- tial candidate Fernando Aguero and other opposition hotheads hoped to create enough of a disturbance to prod the national guard into oppressive tactics that would war- rant OAS intervention. However, the guard acted with more restraint than had been expected. It finally cornered UNO leaders and several hundred of their followers in the Gran Hotel where they held out for 20 hours, detaining over 100 foreign visitors as hostages. The rebels, many of whom were armed, were al- lowed to leave the hotel the afternoon of 23 January after surrendering their weapons and releasing the hostages. Casual- ties--all Nicaraquans--are esti- matted at four national guardsmen. and 60 civilians dead, and over 1.00 wounded including 13 guards- meri . New violence flared on 25 January when the government began arresting opposition members who had taken part in the 22 January disorders. So far, none of the leaders in the Gran Hotel affair have been detained. A roundup of all Communists has been ini- tiated, and the majority of ar- rests thus far appear merited. Several UNO leaders, as well as several Communists, have sought asylum in foreign embassies. Although they are still free and retain all political rights, there is still a possibilty that Aguero and other leaders may be arrested and tried on criminal charges. If this happens, the only opposition to the government candidate, Anastasio Somoza, and the Nationalist Liberal Party would be the Nicaraguan Conserva- tive Party. This small party backing Alejandro Abaunza has obligingly offered the Somozas tame opposition in the past. The newspaper La Prensa, owned by another UNO lees er, Pedro Joaquin Chamorro, has been closed for inciting violence, and press reports say three radio stations have also been closed. Aguero is continuing his campaign, and one UNO member said a UNO rally will be held on 29 January in Chinandega. A pro- Somoza rally is scheduled for the same date in Managua. Only a small spark would be needed to turn either of these rallies into disorder. Si',C;IR1 '1' Page 26 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 M. `+yr SECRE'T' DOMINICAN GOVERNMENT MOVES AGAINST OPPONENTS The Dominican Government launched a heavy-handed roundup of "enemies of the state" on 22 and 23 January. Around 300 indi- viduals reportedly were detained. While some of these were Commu- nists, many were former "consti- tutionalists" and members of non- Communist left-of-center parties. Many are now being released, but the government has refused to divulge details of the alleged conspiracy that ostensibly trig- gered the arrests. President Balaguer, however, apparently felt it was time to warn potential conspirators that the regime was prepared to move quickly against them. In deciding to act now he may have been influ- enced by alarmist "intelligence" reports fed to him by self-serving aides. Opposition groups predictably reacted with strong criticism of the arrests. The general theme of their commentary was that the detentions were a return to the tactics of the Trujillo era. A spokesman of the PRD has publicly stated it will not support the "unconstitutional" Balaguer re- gime in the event of a coup at- tempt. The Revolutionary Social Christian Party, which has been a more moderate critic of the re- gime, warned that it will abandon its "constructive opposition" if the government does not cease its arbitrary actions. Moderates and even some Balaguer supporters have voiced their misgivings over develop- ments. The Balaguer-appointed governor of one interior province concluded that the arrests had undone efforts to restore polit- ical harmony and reported feel- ings were running high against the government. The impact of the government's action may well be to stimulate antiregime dissi- dents and encourage unity among opposition elements. Adding to the tension has been the forced retirement or re- assignment of a number of mili- tary officers, none of whom was in fact known to be plotting against the regime. Some of these had fought with the rebels in 1965 while others were corrupt or incompetent. Balaguer retains the apparent support of'the armed services, although on 23 January he publicly admitted the exist- ence of some "insignificant" o p7_-- position in military ranks. SECRET Page 27 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET NEW CONSTITUTION TO STRENGTHEN BRAZILIAN EXECUTIVE A controversial new consti- tution designed to strengthen executive power in Brazil and incorporate key principles of the Castello Branco administra- tion was promulgated on 24 Janu- ary. It will go into effect on 1.5 March 1967, the clay President- elect Costa e Silva takes office. The final document, although heavily amended in Congress, re- tains key provisions proposed by the administration, such as in- direct election of the president and vice president, executive power to cancel individual polit- ical rights for up to ten years, and the right of military courts to try civilians accused of crimes against the "national security." Attempts to restore many congressional prerogatives were generally unsuccessful. The pres- ident will have broader authority to declare a state of siege, to govern by decree in the fields of national security and public fi- nance, and to intervene in states when he deems it necessary. A number of these provisions con- tinue special powers exercised by President Castello Branco under other decrees that lapse on 15 March. Congress has also approved an amended version of the admin- istration's much-criticized press bill. The law replaces a very lax 1953 law that has been widely abused. It fixes journalistic responsibility more clearly and forces the press to be more sure of the facts before attacking public officials, particularly the president. The law strength- ens penalties for slander, defa- mation of character, or disclos- ing "state secrets." Court pro- cedures will be speeded up and journalists charged under the new law will be tried by judges rather than special juries. De- spite the internal and interna- tional hue and cry that the law is a "gag law," its impact will depend upon how Brazil's tradi- tionally liberal judges define and apply it. Probably no one--the admin- istration, Congress, or the op- position--is fully satisfied with either the constitution or the press bill. In fact, Cas- tello Branco may veto portions of the press bill., and many congressmen are already talking about amending the constitution after Costa e Silva takes office. Nonetheless, both measures will effectively strengthen the new chief executive in dealing with Brazil's traditionally turbulent S E{.(; R E I' Page 28 WEEKLY SJMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 SECRET CHILEAN PRESIDENT SQUARES OFF AT CONGRESS The Senate vote forcing can- cellation of President Frei's proposed trip to the US next week has brought to a head his long- simmering dispute with the oppo- sition-dominated Senate. Frei's first reaction was to attempt a complex parliamen- tary maneuver that would have forced a reversal of the vote. Then, apparently recognizing that this could not be accomplished before his scheduled departure date--if at all--he shifted tac- tics. He now has called for pop- ular repudiation of the Senate, which he claims fails to mirror the changing political situation. He has presented a constitutional amendment that would permit the president to dissolve Congress and call new elections once dur- ing his term of office. Although this action was precipitated by the Senate's veto of his trip, it is also a response to other obstructionist actions that have hampered Frei's reform programs since the beginning of his admin- istration. The constitutional reform must be approved by both houses of Congress. It has the support of Frei's own Christian Demo- cratic Party and of the Commu- nist Party both of which see a chance to improve their repre- sentation. If the Socialists follow the Communist lead, as seems probable, the reform is likely to be adopted over the opposition of the right-wing National Party and of the cen- trist Radical Party, both of which would almost certainly lose some of their congres- sional seats in new elections. The Senate's action has also called into question the extent of the president's power to fulfill his constitutional responsibility for the conduct of foreign affairs. Frei is said to feel that yielding to Senate dictation would impair his ability to promote Latin American integration and would reduce his international repu- tation. His inability to visit the US may make him unwilling to attend the inter-American summit meeting in April or to engage in other foreign travel during the remainder of his term. Thus, the stage is set for a confrontation between Frei and the congressional opposition. The US Embassy speculates that if the constitutional reform fails, Frei may try to get direct popular approval of his program SECRET Page 29 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927A005600060001-6 SECRET ECUADOR-PERU BOUNDARY CONTROVERSY MAY ERUPT AGAIN The 25th anniversary of the Rio Protocol establishing the boundary between Ecuador and Peru is not likely to pass quietly. Ecuadorean resentment of the pro- tocol could erupt into serious demonstrations in Quito and Guaya- quil on 29 January, and there is even the remote possibility of an armed clash with Peru. Ecuadorean Government offi.- c=_als and the military high com- mand are extremely worried over the possibility of Peruvian in- cursions along the border on or about 29 January. They are con- vinced that Peru is concentrating troops near the boundary and that an attempt will. be made to place markers along the 70-mile portion that is still unmarked. Ecuador insists that it will meet any Peruvian provocation with force. To counter the alleged Peruvian threat, Ecuador reportedly is increasing its troop strength along the border and recalling former conscripts to duty. COLOMBIA QUITO ?"~-_~ ~. Boundary established Under 1942 Rio Protocol Disputed area before 1942 _._., Undemarcated boundary However, Ecuadorean fears of a Peruvian provocation are largely unwarranted. Peruvian military sources report that Peru has no plans to attack Ecuador or to place markers in the disputed area. Peruvian Army units along the border are not on alert, re- serves have not been dispatched, and there has been only a limited augmentation of troop strength. Peruvian Government and military reaction to Ecuadorean bombast over the border issue has been restrained and in keeping with President Belaunde's desire to ease tensions. Peruvian leaders have repeatedly stated that if there is an incident, it will oc- cur only as a result of action by Ecuador. Violent demonstrations may very well occur in Ecuador on 29 January. University students plan protest marches and mani- festations. The government is trying to channel demonstra- tions along peaceful lines, but this may not be possible. In- terim President Arosemena is especially eager to keep the is- sue out of the constituent assem- bly to prevent opportunistic poli- ticians from inflaming emotions. The Peruvian Embassy in Quito is a likely target of violence, as are US installations. In previous years, the US Embassy has been 25X1 stoned because the United States is one of the four guarantor pow- ers of the Rio Protocol SECRET Page 30 WEEKLY SUMMARY 27 Jan 67 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 25X1 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Secret Secret Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 25X1 Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6 Next 3 3 Page(s) In Doc ument Denied Approved For Release 2008/06/27: CIA-RDP79-00927AO05600060001-6