WEEKLY SUMMARY

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CIA-RDP79-00927A006000020001-5
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RIPPUB
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S
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34
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December 21, 2016
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August 22, 2008
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1
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Publication Date: 
September 1, 1967
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SUMMARY
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Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY State Dept. review completed Secret 49 1 September 1967 No. 0305/67 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 NWJOI SECRET (Information as of noon EDT, 31 August 1967) VIETNAM Thieu and Ky are the expected winners as the South Vietnamese presidential campaign draws to a close. Throughout the week, Communist military units sharply accelerated terrorism and harassment in an apparent effort to discourage participation in the elections. In Hanoi, evacuation measures have been stepped up in the. wake of recent air strikes near the city. CURBS ON VIOLENCE DIVIDE CHINESE LEADERS There is evidence of new measures designed to bring the Cultural Revolution under tighter control, but violence and disorder continue throughout China, suggesting that top leaders in Peking remain deeply divided over the need for ongoing purge efforts. HONG KONG CRISIS EASES SLIGHTLY The situation in Hong Kong has eased slightly, de- spite continuing terrorist incidents in the colony and clashes between police and Chinese diplomats in London. BURMESE GOVERNMENT HARASSED BY RICE SHORTAGES The Ne Win regime faces serious difficulties during the next few months as a result of rice shortages and skyrocketing prices. Reports of unrest in Bur- mese villages are increasing. NORTH KOREANS CONTINUE DMZ INCIDENTS North Korean forces are keeping up the pressure along the Demilitarized Zone (DMZ) in an apparent effort, to discourage South Korea from sending addi- tional troops to South Vietnam. UN command forces have suffered more than 50 casualties in the past week. SECRET Page i WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Page 1 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET NNO, Europe NONPROLIFERATION TREATY: THE NEXT PHASE With parallel US and Soviet drafts on the table at Geneva, efforts to overcome the remaining obstacles to a treaty are under way. 25X1 MOSCOW PAYS FOR SOVIET TROOPS IN EAST EUROPE Recent research on the balance-of-payments deficits in Soviet accounts since the late 1950s indicates that Moscow reimburses its allies for most if not all costs of maintaining Soviet troops in Eastern Europe. Middle East - Africa NASIR QUASHES COUP ON EVE OF ARAB SUMMIT A planned coup d'etat against Nasir was reportedly quashed last weekend, but in spite of this the Egyp- tian President has left Cairo to attend the Arab sum- mit conference in Khartoum, where some press reports say he and King Husayn are advocating a moderate ap- proach to the impasse between the Arab states and Israel.. Soviet military aid deliveries continued near their prehostility level. SECRET Page ii WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 SECRET ine BIAFRAN PUSH INTO NIGERIA'S WESTERN STATE CONTAINED 19 the federal government will soon regain the initiative by launch- ing a, major counteroffensive. Both sides continue to receive new supplies of arms, but the federal government is receiving decidedly greater quantities. TENSIONS REMAIN HIGH IN THE CONGO (KINSHASA) 21 The prospects for a negotiated settlement with the mercenaries have brightened somewhat but tensions remain high in Katanga, where many Europeans are preparing to evacuate. BELGIAN RELATIONS WITH CONGO DETERIORATE FURTHER Increasingly frustrated over the lack of progress in negotiations with the Congolese, Brussels this week decided not to send back to the Congo the technical aid personnel who are presently vacation- ing in Belgium. POLITICAL UNREST RISES IN MALI AND GUINEA The leaders of Mali and Guinea, highly nervous about maintaining the elan--if not the basic stability-- of their "revolutionary" regimes, once again believe they are acutely vulnerable to "imperialist plots." Western Hemisphere THE WEEK IN PERSPECTIVE 25 DEBRAY TRIAL TO OPEN IN BOLIVIA The trial, scheduled to begin on 7 or 8 September, is attracting considerable attention from;-Communist and leftist intellectuals abroad. Debray's defense more than likely will include propaganda allegations of "interference" in Bolivian affairs. VENEZUELAN URBAN TERRORIST ORGANIZATION DECIMATED Venezuelan police last week killed or captured eight members of the urban terrorist arm of the Douglas Bravo guerrilla movement, including a Cuban Army sergeant whose involvement will add substance to Venezuela's case against Castro. GUYANA'S OPPOSITION PARTY MOVES CLOSER TO COMMUNISM Party leader Cheddi Jagan, determined to create a Communist organization, has ousted moderates from top offices and installed a virtual rubber stamp leadership group. SECRET Page iii WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Iftv SECRET FAR EAST Violence dominated the scene in a number of areas of the Far East during the past week. As South Vietnam's presidential candidates swung into their final lap, Viet Cong terrorist action aimed at disrupting the election made its anticipated upsurge. Can Tho, the delta's largest city, was the target of one of the most severe in- timidatory attacks, with over 200 civilian casual- ties recorded. Communist units also launched ma- jor attacks on other population centers and allied military installations. Violence continues to spread in Communist China as well, and there seems little prospect of success for Peking's efforts to halt it. Proclama- tions and pleas designed to exert a moderating in- fluence on warring factions may, as in the past, be misinterpreted or ignored by local authorities. China's border with Hong Kong, as well as the situation in the colony itself, have been rela- tively quiet in recent days. Terrorist acts in Hong Kong are likely to continue, however, in re- sponse to continued British pressure against local Communists, including the recent conviction of three Communist newsmen for sedition. Along another sensitive border, armed inci- dents flared again as North Korea maintained its pressure on the South. The past week was a pain- fu]. one for UN forces, with over 50 casualties-- about a third American--inflicted by harassing fire and land mines. In relatively quiet Burma, there is growing popular unrest over rice shortages as the economy slides downward more rapidly. This has already re- sulted in one severe clash between demonstrators and security forces. With no relief in sight be- fore the year-end rice harvest, there is the pros- pect of further civil disturbances, bringing with them a significant, if not decisive, erosion of popular support for the government. SECRET Page 1 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 Li U V lt-L 1 WNH LONG eINH \pUONGP 3 ~N rt J 1 H LC>MG no ~% INH VV BINH B-'en Hoa Ban Me ThuoI BINH TUY TUYEN Da 3 INH THUAN/ QU('D WV Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET VIETNAM Official campaigning for South Vietnam's presidential and senatorial elections will termi- nate at noon on 2 September. The turnout at the next day's elec- tions may run as high as 80 per- cent of the 5.8 million carried on voter rolls--a percentage roughly comparable to the Con- stituent Assembly election last year. The government is taking elaborate precautions to ensure that polling places and access routes will be open to the voters in the face of a growing Viet Cong effort to discredit and dis- rupt the elections. Civilian presidential candi- dates have continued to charge that the Th_ieu-Ky military slate is applying pressure tactics against their campaign workers and is resorting to fraud and trickery to ensure a government victory. Few allegations of pres- sure have been substantiated, and most evidence points to rela- tively clean elections even though scattered irregularities may well be uncovered. It is not unlikely, however, that in the event of a Thieu-Ky victory, the civilian candidates will en- deavor to delay the final certi- fication of the results by rais- ing formal charges of fraud. Thieu and Ky are generally expected to win the contest. They have predicted publicly that their ticket may garner 35 to 40 percent of the total vote. Among the ten other com- peting tickets--all civilians-- Tran Van Huong and Phan Khac Suu will probably come in second and third, respectively. The militant, antigovern- ment faction of the Buddhist church, led by Thich Tri Quang, remains uncommitted to any par- ticular civilian presidential candidate. In any event, the mili- tants have probably delayed too long to become a seriously dis- ruptive factor in the elections or to cause any substantial swing away from Thieu and Ky. General Thieu, in what ap- pears to have been in part a shrewd political ploy to quiet critics of the military ticket, told the press that he planned to fire up to 50 military offi- cers, including several generals, for corruption and inefficiency. Most of the dismissals, however, probably will not occur until after the election. SECRET Page 3 WEEKLY SUMMARY 1 Sep 67 25X1 25X1 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 %we SECRET Military Harassment Stepped Up Communist forces during the past week sharply accelerated the pace of their military and terrorist campaign in an effort to undermine popular confidence and block participation in the elections. Attacks were launched against major population centers and al- lied military installations throughout South Vietnam. In what was probably the most spec- tacular and damaging enemy ac- tion, Viet Cong guerrillas fired mortars on Can Tho, the capital of Phong Dinh Province and the largest city in the Mekong Delta, causing almost 250 civilian casual- ties. The biggest concentration of Communist pre-election mili- tary activity, however, was cen- tered in the five northernmost provinces that comprise South Vietnam's I Corps area. Quang Nam Province was particularly hard hit. Enemy units on 26 Au- gust attacked and temporarily overran the provincial capital, Hoi An, and seven nearby mili- tary outposts, including a South Vietnamese Army (ARVN) district headquarters. South Vietnamese defenders and civilians sustained casualties of nearly 200 killed or wounded. Later in the week, another ARVN district; headquarters at Thang Binh, near the Quang Nam - Quang Tin province border, was hit by mortars and ground assault troops. South Vietnamese losses were again heavy--206 killed, wounded, or missing, more than half of whom were civilians. The US Marine airstrip at Marble Mountain, three miles south- east of Da Nang, was shelled by 140-mm. barrage rockets on 27 August. Some 12 helicopters or destro ed. Between 25 and 29 August, Viet Cong demolition teams de- stroyed or damaged 14 bridges in the Da Nang area, closing the strategically important Hai Van Pass. Other significant enemy ac- tions this week included a heavy mortar attack on the provincial capital of Quang Ngai, followed by a major ground penetration into the city during which al- most 1,500 prisoners--most of them political cadres--were re- leased from a POW compound. In addition, three heavy mortar at- tacks occurred on 29 August against US and ARVN positions near the Thua Thien provincial capital of Hue. In what may be the opening round of a new period of heavy combat in the Demilitarized Zone (DMZ) area, North Vietnamese forces have resumed mortar, rocket, and artillery bombardments of US Ma- rine bases in northeastern Quang Tri Province. SECRET Page 4 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 `'"""' SECRET Hanoi Stepping Up Evacuation In the wake of mid-August air strikes on transportation and power networks in the Hanoi area, North Vietnam has ordered addi- tional civilian evacuation of the capital. local Hanoi authorities on 25 August told all residents who were not di- rectly involved in defense or de- fense support to leave the cit By 30 August, the order was being "strictly observed." Workers in small industrial and handicraft cooperatives were ordered to move out immediately, and even those in state-operated enterprises were to begin evacua- tion. Labor unions and managers in state-owned companies were made responsible for the evacua- tion of worker families. Local Hanoi authorities reportedly have increased public dining fa- cilities to accommodate the workers whose families have been moved out. / many government min- istries, including foreign af- fairs and defense, had already moved part of their staffs out of the city, leaving only skele- ton administrations behind. There is as yet no report that 25X1 foreign embassies have been or- dered to evacuate, although mis- sions have been told in the past 25X1 that they could move north of Hanoi if they wished. The pub- lic appearances of high-level party leaders have diminished in recent months, suggesting that some of them may have taken up residence outside Hanoi. Evacuation measures taken in Hanoi in 1966 are estimated to have reduced the city's prewar population of over a million to less than 700,000. Current measures are apparently designed to reduce the population even further, probably well below the half-million mark. SECRET Page 5 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 lw' SECRET yr CURBS ON VIOLENCE DIVIDE CHINESE LEADERS There is evidence of new meas- ures designed to bring the Cultural Revolution under tighter control, but violence and disorder continue throughout China. This suggests that top leaders in Peking remain deeply divided over the need for ongoing purge efforts and that the Maoists are reluctant to halt the destructive activities of the "revo- lutionary" Red Guards. Leaders in Peking may be hav- ing second thoughts about the whole- sale arming of "revolutionary" ci- vilians, which apparently has been August posters put up in Peking were claiming that Kiangsi was one of several provinces where serious armed struggles were taking place. taking place in recent weeks. a directive was issue on about August instructing war- ring factions in Canton to surrender weapons to the local authorities. Radiobroadcasts from several other provinces attribute the directive to Mao, and indicate that the di- rective was nationwide in scope. Madame Mao said in late July that "rebels" must be armed, and poster reports have stated that rifles were being furnished to two elite Red Guard groups in Peking and to "revolutionary masses" in at least one province in mid-August. Such groups, however, will probably re- sist any attempt to disarm them. The directive, presumably in- tended to bolster Maoist strength, could lead to further conflict. Local authorities have often A 30 August radiobroadcast from Kiangsi revealed that the cen- tral committee had replaced the com- mander and the political commissar of the Kiangsi Military District and appointed a provisional government for the province. Both the new com- mander and the new political commis- sar have been serving in the Tsinan MR. Recent Peking broadcasts have returned to an old conciliatory line that most party bureaucrats are politically reliable. Editori- als in People's Daily on 18 and 25 August urged "revolutionaries" to make bold use of party cadres. The editorials stated that even cadres who have committed serious mistakes are to be welcomed and supported. This theme was replayed SECRET' twisted such directives to iustify arming their own groups. killing and fighting continue in Canton, despite wide publication of the directive. This could well be the case in other provinces. In early 25X1 25X1 Page 6 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 *../ SECRET in a broadcast on 25 August from Heilungkiang-?-a province where four former party and government bureaucrats have re-emerged in responsible positions just in the past month. This gesture toward the party followed indications of new ef- forts to curb the Red Guards that COMMUNIST CHINA began to appear on 18 August-- the first anniversary of the tu- multuous founding of the movement which was celebrated in surpris- ingly low key. A People's Daily article on 23 August underscored the "return to study" theme which had been brought up again at the anniversary for the first time in many weeks. SECRET Page 7 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 `"~ SECRET r.rr The article noted that many students and "young Red Guard fighters" were reluctant to stay at school and "always want to break out"--a phenomenon that should be corrected "immediately." It declared that in the present situation, Red Guards should not travel about to "exchange experi- ence" and urged the guards to "pick up pens" instead of "knives and spears." On 26 August, People's Daily replayed a Shanghai Red Guard newspaper editorial calling for an end to the practice of staging parades in vehicles. Posters ob- served in Peking on 29 August stated that a key Red Guard leader, the witch-like Nieh Yuan-tzu who authored the first big-character poster and was one of Mao's fa- vorites, had been criticized by Mao because she is not a "genuine HONG KONG CRISIS EASES SLIGHTLY The situation in Hong Kong has eased slightly, despite con- tinuing terrorist incidents in the colony. The border has re- mained relatively quiet since 26 August, and British authorities see indications of increased Chi- nese Army control of the border situation as a "hopeful sign." Ignoring Communist threats of retaliation, the British sentenced three Communist news- men to three years in prison for sedition. To date there has been no direct Communist response in the colony, although Communist propaganda sheets are calling for the assassination of selected anti-Communist Chinese leaders. The colony's supply situa- tion has also improved. Truck shipments of food across the border have resumed after an in- terval of two weeks, and recent heavy rains have given Hong Kong enough water to survive the forthcoming dry season even if the Communists do not resume water deliveries on the scheduled date of 1 October. Peking is apparently giving vent to its frustrations over the impasse in Hong Kong by provoking new clashes with the British else- where. On 29 August, personnel from the Chinese Embassy in Lon- don attacked bystanders, includ- ing police, for allegedly insult- ing Maoist thought. The Chinese followed this up by delivering to the British charge in Peking a protest accusing London of provok- ing the incident, and have once again begun demonstrations out- SECRET Page 8 WEEKLY SUMMARY 1 Sep 67 25X1 25X1 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET NWO, BURMESE GOVERNMENT HARASSED BY RICE SHORTAGES The Ne Win regime faces serious difficulties during the next few months as a result of rice shortages and skyrocketing prices. Reports of unrest in Burmese villages are increasing. The most serious violent incident to date occurred in the port of Akyab in west Burma on 13 August when a mob of about 5,000 looted government rice stocks and attacked government installations. Burmese security forces opened fire on the demon- strators, killing 22 and wounding 45. In other widely scattered incidents, government rice ship- ments have been looted, and angry crowds have forced government officials and private traders to sell their rice holdings at of- ficial prices. There is no evidence of a direct Communist hand in these disorders, although both Peking and local Communists are seeking to exploit the situation by focusing popular attention upon Burma's deteriorating economy. The current difficulties in rice stem from the unrealistically low prices the government has been paying to farmers. This has held down production and encouraged hoarding. The measures the gov- ernment has taken to cope with the problem thus far have been inadequate. A 15-percent reduc- tion in rice exports and a partial decontrol of the internal rice trade in June came too late to have much impact. Prices on privately sold rice remain pro- hibitively expensive for the aver- age consumer and although rice sold by the government is more attractively priced, the ration has been cut. The rice squeeze has already cost General Ne Win much of the popular support that he picked up earlier this summer by his tough stand against Peking and the local Chinese. Although Ne Win will probably weather the present crisis, the longer term outlook remains uncertain and his popular support may be further eroded if the forceful measures employed by security forces at Akyab are re- peated elsewhere in Burma. SECRET Page 9 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET 'Nor NORTH KOREANS CONTINUE DMZ INCIDENTS North Korean forces are keep- ing up the pressure along the De- militarized Zone (DMZ). The tempo of incidents increased in October 1966 and has continued at a high level through this summer. On 28 August the North Ko- reans launched attacks south of the western boundary of the zone, leaving one American dead and 14 wounded. There were also 14 South Korean casualties--two killed and 12 wounded. The action began when elements of a US engineer unit were attacked by an unknown num- ber of North Koreans using auto- matic weapons. The first of two rescue parties from the 2nd In- fantry Division was ambushed, and a vehicle from the second party detonated a mine. The next day two more US vehicles struck land mines in the same area, killing three and wounding three. On 27 August the North Ko- reans used grenades against a SOUTH KOREA ong, S,,Incidents punjom i282fAugust) SOUTH KOREAN SECTOR ~ }L UNISEUCTORTES SECRET Page 10 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 South Korean Army checkpoint near the eastern DMZ boundary, killing six and wounding ten. Following the attack the South Korean forces fired mortars and 105-mm. how- itzers at the suspected North Ko- rean withdrawal route. No North Korean casualties were reported in any of the incidents. . The number of clashes along the DMZ is likely to continue at a high level and could possibly grow even greater. These North Korean actions may be designed in part to discourage South Korea from sending more troops to South Vietnam. The Communists, well aware the South Koreans are chaf- ing under US restraints against retaliation, may also hope to place a strain on relations be- tween Washington and Seoul. There is no evidence, however, of a North Korean military build-up or of impending North Korean plans for a major military action. KOREA-Armed Incidents of 27-29 August 1967 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 NWO, SECRET EUROPE Political activity in Europe began picking up as the traditional August vacation period neared its end. Ministers of the major industrialized nations reached a milestone agreement in London last weekend on a contingency plan for the creation of interna- tional monetary reserves to supplement gold, sterling, and the dollar. The plan gives a key role to the In- ternational Monetary Fund. The Common Market coun- tries will have greater collective voting power in the new scheme than they have previously had in the fund's operations. The Belgian Government, lacking adequate security guarantees from Kinshasa for Belgian personnel as- signed to the Congo, has decided not to send back those who are spending the summer in Belgium (see ar- ticle on page 22). This means that 1,200 teachers will not return for the new school year. As a result, many of the Belgians still in the Congo under private auspices may decide to leave. They have regarded the Belgian schools as a symbol of Brussels' continuing involvement and protection. 25X1 SECRET Page 11 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Iq Next 1 Page(s) In Document Denied Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET NONPROLIFERATION TREATY: THE NEXT PHASE The US and the USSR have introduced parallel drafts of a nonproliferation treaty (NPT) at Geneva, but there are still problems to be worked out between them. The Soviets have begun the search. for compromises on these differences and for ways in which they, together with the US, can get around the remaining objections of the nonnuclear states. Ambassador Roshchin, head of the Soviet delegation, has indicated that Moscow is willing to consider a compromise on the key question of safeguards--the subject of Article III, which was left blank in the draft sub- mitted to the disarmament con- ference last week. He told the US delegate that the Soviet ver- sion of Article III--calling only for the International Atomic Energy Agency (IAEA) to verify compliance with the treaty--could be altered to help overcome ob- jections raised by members of EURATOM, which operates the safe- guards system of the Common Mar- ket countries. Roshchin said the provision could note that the IAEA can ne- gotiate agreements "bilaterally or multilaterally." Such a for- mulation could accommodate EURA- TOM in fact if not in name, and clear the way for a compromise-- probably one in which the two in- stitutions would work out the in- spection problem between them. The question of security as- surances to nonnuclear countries is another hurdle still to be gotten over. After the US-Soviet draft was tabled, Roshchin told the US it was essential for Mos- cow and Washington to reach agree- ment quickly on this and the safe- guards question so that the NPT could be more easily defended at the UN General Assembly. The Rus- sians see eye-to-eye with the US on the desirability of confining consideration of the draft to the Geneva forum until a text--a com- plete one, if possible--can be put before the General Assembly, probably in October. The Soviets have also indi- cated that they will go along with Washington's wish to make separate statements on security for nonnuclear states, rather than writing these assurances into the treaty. Before the treaty is signed, however, ob- jections from several quarters must be overcome. Moscow's delay in tabling the treaty draft, apparently the result of Rumanian foot-dragging, SECRET Page 14 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 .aw SECRET indicates that approval of a final text by the USSR's allies will not in. every case be auto- matic. As self-appointed spokes- man for the nonaligned states, India is giving the draft treaty a cool reception and promises to take an especially hard look at the security guarantees. On the Western side, West Germany and Italy object to the proposed un- limited duration of the treaty and to the amendments provision, which gives a veto power to the IAEA board of governors--of which they are not permanent members. Moscow is least likely to give ground on these latter two points. The Russians are ob- sessed with preventing West Ger- man access to nuclear weapons, and do not want to limit the NPT's duration nor give the sig- natories the right to reject amendments. MOSCOW PAYS FOR SOVIET TROOPS IN EAST EUROPE Recent. research on the bal- ance-of-payments deficits in So- viet accounts since the late 1950s indicates that Moscow reimburses its allies for most if not all costs of maintaining Soviet troops in Eastern Europe. The substantial deficits in bilateral accounts with East Ger- many, Poland, and Hungary are pro- portional to the number of Soviet troops billeted there. There is no similar imbalance in accounts with Rumania, Czechoslovakia, and Bulgaria, where no Soviet troops are stationed. This strongly sug- gests that any contribution by the Eastern European countries toward the upkeep of Soviet troops is small and in no case an eco- nomic burden. Against this background, Ru- mania's grievances toward the Warsaw Pact take on an overwhelm- ingly political hue. The purported Rumanian memorandum to other pact members, published by the French Communist Party newspaper L'Hu- manit6 in May 1966, complained about the expenses that arose from the maintenance of foreign troops on the territory of pact coun- tries. Rumania was reported to have argued that the country from SECRET l Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET which the troops came should pay such expenses and that any coun- try wanting foreign troops on its territory should sign a bilateral agreement to that effect. This argument now appears to have been for purely political effect, since the situation it decried had prob- ably long since ceased to exist. The balance-of-payments defi- cits in Soviet accounts with Po- land, Hungary, and East Germany showed up in the late 1950s, im- mediately after Moscow had signed new agreements covering the status of Soviet troops in these coun- tries. If, as the evidence indi- cates, Moscow has been footing the bill since then, it is pre- sumably in accordance with these agreements. Moscow has never responded publicly to Rumanian innuendoes that the Soviet Union takes fi- nancial advantage of its allies, no doubt so as not to accentuate its differences with Rumania and because of a traditional penchant for secrecy in defense matters. SECRET 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET MIDDLE EAST - AFRICA The Middle East and African countries are cur- rently engaging in "summitry." The Arab summit opened in Khartoum on 29 Au- gust without the presence of militant presidents Boumediene of Algeria or Atassi of Syria. The adop- tion of an oil embargo or other economic sanctions against the West by the Arabs at the summit is un- likely. Egyptian President Nasir and King Faysal of Saudi Arabia have reached at least initial agree- ment on the broad terms for a Yemen settlement. Nasir, prior to his departure for Khartoum, broke up a planned coup by arresting the former chief of the armed forces and other high-ranking officers, but his action will not fully quell the troubles in his regime. Elsewhere in the Middle East, British efforts to contrive an interim arrangement before pulling out of South Arabia at the end of the year are run- ning into increasing difficulty. Early this week, the acting head of the Federal Supreme Council-- presumably with British backing--asked the South Arabian Army to take over the administration of the federation. Such a move would have enabled the British to depart without leaving utter chaos in their wake. The army, however, has refused unless stiff conditions--unacceptable to the British--are met. About 30 of the 38 members of the organization of African Unity are planning to attend the pre- li, Minary foreign ministers' meeting in Kinshasa, Congo, opening on 4 September. Attendance by heads of states at the follow-up summit meeting planned for 11 September is likely to be even less repre- sentative: there is widespread lack of enthusiasm for the meetings as well as concern over the secu- rity situation in the Congo. President Mobutu has been pushing for the meeting in Kinshasa largely to get a show of African endorsement for his regime. The meetings are not expected to deal with Af- rica's other current trouble spot, Nigeria, because the federal government at Lagos insists the fighting is an internal problem. SECRET Page 17 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 `' SECRET NASIR QUASHES COUP ON EVE OF ARAB SUMMIT A planned coup d'etat against Nasir was reportedly quashed last weekend, but in spite of this the Egyptian President has left Cairo to attend the Arab summit confer- ence in Khartoum. Egyptian Coup A scheme to depose President Nasir is said to have been broken up on the night of 25 August with the arrest of former first vice president and deputy supreme com- mander of the Egyptian armed forces, Abdul Hakim Amir, and some 150 of his military collaborators. Amir was reportedly very popular among the military, and his arrest could spark further opposition from that quarter. Such opposition would probably take some time to become effectively organized, however, because the military leadership at present appears decimated and badly de- moralized. Arab Summit Nasir, apparently confident that the immediate threat to his position has been put down, is presently in Khartoum participat- ing in the current sessions of the Arab summit conference. King Husayn of Jordan has privately ex- pressed optimism that a moderate consensus on Arab actions in the aftermath of the war will be ar- rived at by the Arab heads of state, but the split between the moderates and the radicals appears to be as wide as ever. Page 18 The Syrian delegation to the summit, led by Foreign Minister Makhus, reportedly did not par- ticipate in the opening sessions and appeared to be contemplating flying back to Damascus before the conference ended. Algeria's intransigent stance, meanwhile, was emphasized on 30 August by its nationalization of the Esso and Mobil distributing companies in Algeria. Nasir's position is the key factor. Some reports suggest that he has joined Husayn in supporting a "political solution" with Is- rael. The Khartoum meetings have led to at least initial agreement between King Faysal of Saudi Arabia and Nasir on the broad outlines for an end to the Yemen conflict. A similar agreement in 1965 failed, however, and a number of thorny issues are yet to be resolved. Soviet Military Aid Soviet military aid deliveries to the Middle East continue at about the prehostilit level. SECRET 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET W BI[AFRAN PUSH INTO NIGERIA'S WESTERN STATE CONTAINED Federal. military forces ap- pear to have contained secession- ist Biafra's thrust along all ma- jor routes into the West, al- though some minor infiltration by Biafran troops is continuing. the main federal. thrust will come out of the north into the Biafra-occupied Mid-Western State, with the objective of mov- ing south of the town of Auchi to cut the main road between Benin and the Niger River. Some light skirmishing near Auchi is now under way. Lagos reportedly has 3,000-4,000 men and a number of armored cars available for this Page 19 ambitious operation, but the dis- cipline of many newly recruited troops is questionable. The federal military may also be planning a new seaborne assault along the coast of Biafra or the Mid-West State. Federal leader Gowon has established an inner circle of civilian and military advisers who reportedly will meet daily on the war situation. Although the move does not reduce Gowon's authority, the civilian leaders may prove troublesome once they are fully aware of the many federal military deficiencies. Nevertheless, Gowon probably hopes that the deeper involve- ment of these individuals es- pecially Yoruba leader Awolowo, will solidify their political commitment to the federal regime. SECRET WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Ifto, SECRET Imw The Nigerian Air Force has encountered problems in getting its recently acquired jet air- craft operational Both sides continue to re- ceive new supplies of arms, but the federal government is receiv- ing decidedly greater quantities. Northern military leaders may be making preparations to protect northern interests in case the federation fragments Ward Yee SECRET Page 20 WEEKLY SUMMARY ( `Makurdi ~~g4 K-; eniCi New State boundary decreed by Gowan on 27 May 1967 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET "W The north- erners probably believe they must make some contingency plans in the event the Yorubas in the Western State join with Biafra and the Mid-West in a southern alliance against the northern- dominated central government. Gowon is aware of some of this free-wheeling by northern offi- cers but probably does not be- lieve it to be serious. Yoruba political leaders, meanwhile, seem to be increas- ingly concerned over the intensi- fication of the war. A number of key leaders of the main Yoruba political croup reportedly dis- agreed sharply with Awolowo's strong support of the federal government at a meeting in Iba- dan on 27 August. Nigerian news media, busi- nessmen, and labor officials continue to attack the US for its statement disapproving the Soviet arms delivery to the Lagos government. Gowon re- portedly is under pressure from various groups to permit demon- strations against the US. TENSIONS REMAIN HIGH IN THE CONGO (KINSHASA) Although the prospects for a negotiated settlement with the mercenaries have brightened some- what since Mobutu's complete re- jection of the idea late last week, tensions remain high in Ka- tanga Province. Mobutu, on 24 August, stated that negotiations had failed and that a Congolese military victory was the only face-saving solution to the mercenary problem. He probably has few illusions, however, regarding the capability of the Congolese Army to defeat the mercenaries or to force their surrender, and has since backed down a bit. His latest suggestion is that if mercenary leader Schramme were to "dis- appear," negotiations could be arranged with the rest of the mercenaries. In any case, Mobutu is now primarily interested in hosting the coming OAU summit meeting and has said that he will take no further action until after that conference. Tensions remain high in Katanga Province following fur- ther Belgian deaths there and elsewhere in the country at the hands of the Congolese Army. To complicate matters still more, hostilities have developed be- tween two military units sta- tioned in the province. Mobutu has finally agreed to replace the hated and feared Governor Manzikala, and has also ordered the least disciplined unit out of downtown Lubumbashi (formerly Elisabethville) and into barracks about 75 miles away. Mobutu's gestures may be too little and too late, however, for most consulate staffs in the area are preparing their citizens for possible evacuation. SECRET Page 21 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET ?.. BELGIAN RELATIONS WITH CONGO DETERIORATE FURTHER The Belgian Government this week decided not to send back to the Congo its technical aid per- sonnel who are spending the sum- er in Belgium. Brussels had notified the Congolese in late July that fu- ture technical aid would depend on adequate security guarantees for Belgian personnel. The Con- golese Government was preoccupied with the mercenary problem, how- ever, and negotiations on guaran- tees and other conditions never proceeded far. The sacking of the Belgian Embassy in Kinshasa on 14 August, more atrocities in the eastern Congo, and Mobutu's proclivity to blame Brussels for the mercenary problem have all added to the Belgians' sense of frustration. Brussels' decision means that some 1,200 Belgian teachers will not return to the Congo for the new school year. As a re- sult, most if not all the Belgi- ans in the Congo under private auspices may decide to leave. They regard the Belgian schools-- to which most send their chil- dren--as a symbol of Brussels' continuing involvement and pro- tection. The Belgian ambassador estimates only about 20,000 Bel- gians remained in the Congo as of last week. The Belgian ambassador has been instructed to renew contacts with Mobutu on future technical aid. Even in the unlikely event these contacts should immediately prove fruitful, however, Brussels will insist on a period of calm before encouraging its personnel to return to the Congo. POLITICAL UNREST RISES IN MALI AND GUINEA The leaders of Mali and Guinea, highly nervous about main- taining the elan--if not the basic stability--of their "revolution- ary" regimes, once again believe they are acutely vulnerable to "imperialist" plots. The Malian regime underwent a sudden and drastic shake-up on 21 August, when President Modibo Keita announced the dissolution of the politbureau of Mali's single party and the transfer of its powers to the National Com- mittee for the Defense of the Revolution (CNDR). Twelve of the 18 members of the politbureau were dropped completely from posi- tions of power. The directing SECRET Page 22 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 committees of all local party branches were also abolished. These party groups, which gave representation to the conserva- tive countryside, lost influence, and the appointment of five new members greatly intensified the CNDR's leftist cast. Keita stated that the shake-up was necessitated by an increase in the "international threat from imperialism." M A U R I T A N I A *Nouakchott Conakry* Freetown* SIERRA LEONE *Monrovia SECRET VMW The 12-man CNDR--which now has virtually full powers--was originally created as a security measure in March 1966 when mili- tary coups appeared to threaten radical African regimes. As modi- fied, it constitutes a coalition of the youth, labor, and military groups that have been agitating for several months for a resur- gence of revolutionary zeal, com- plaining of corruption and foot- SECRET Santa Isabe* *Yaounde FEFNTNO0 PG EQUATORIAL GUINEA ta..i PivIo iiac Rla xuxi I Page 23 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET dragging in both party and govern- ment. These groups have made ex- travagant pledges of loyalty to Things are even more tense in neighboring Guinea, where a congress of the ruling party is scheduled for late September. The domestic issues are similar--eco- nomic stagnation, corruption among government and. party officials, and a diminishing interest in revolutionary fervor on the part of the masses. President Sekou Toure' has long been dissatisfied with the Guinean politbureau, but previous party congresses have blocked his efforts at reform. The Malian solution may be viewed by some Guinean leaders as a way out of their own dilemma. Meanwhile, Toure remains pre- occupied with the idea that the French are out: to bring him down and that the pro-French regimes in Ivory Coast: and Senegal are cooperating with Paris. Ivory Coast's continuing detention of Guinea's foreign minister is causing Conakry increasing in- ternational embarrassment as the OAU summit and the UN General Assembl a roach. political moment. 25X1 L _f_Senegal's current forced repatriation of about 5,000 Guin- eans as well as the anticipated visit to Dakar of De Gaulle's chief agent for African affairs are additional upsetting factors. Underlying the internal tension in both Mali and Guinea is the question of choosing be- tween France and Communist China as a model and a prime source of economic aid. Mali signed new financial accords with France last March, and Keita has reit- erated since the shake-up that Bamako intends to abide by their terms. Nevertheless, a number of Malians, led by those recently elevated to key positions, op- pose close ties with France and continue to look toward Pe- king. In Guinea, the existing ties are with China, but many Guin- eans are nostalgic for the more prosperous days under the French. Several recently completed Chi- nese aid projects, among them a "People's Palace" to be used as a new party headquarters, are to be dedicated next month. This will give the proponents of Chi- nese aid an opportunity for con- siderable fanfare at a crucial SECRET Page 24 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 _ SECRET WESTERN HEMISPHERE Guerrilla activity, actual and threatened, domi- nated the news in several Latin American countries during the past week. Much of the comment evolved from the publicity emanating from the conference of the Latin American Solidarity Organization (LASO) in Havana and from speculation about the reports that will be brought back by the LASO delegates--many of whom visited Mos- cow on their circuitous way home. In Guatemala, the newly reorganized Communist Rebel Armed Forces took on security forces in a se- ries of gun battles in the capital city. The Nica- raguan National Guard has found evidence of an armed band north of Managua, but earlier press reports of a major clash seem to have been exaggerated. Colombian guerrillas, although reportedly plan- ning to intensify their activity, are still avoiding any significant confrontation with the army. Bo- livian authorities preparing the public trial of French Communist Jules Regis Debray fear a guerrilla attack may disrupt the trial and are considering shifting it to a city outside the guerrillas' usual area of operations. In Venezuela, the capture of a Cuban Army ser- geant among the urban terrorists inspired several prominent citizens to issue press statements calling for paramilitary action against Cuba--including the infiltration of anti-Castro guerrillas onto the is- land. A more realistic action by Venezuela is the pro- posal to condemn Cuba at the Meeting of Foreign Min- isters of the Organization of American States (OAS) which will convene on 22 September. The Venezuelan foreign minister probably will review the OAS dis- cussion in his speech to the United Nations General Assembly after 24 Septmber. The major problem will remain, however, of what--short of military action-- the OAS can do to curb Castro. SECRET Page 25 WEEKLY SUMMARY 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927A006000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET IWAW DEBRAY TRIAL TO OPEN IN BOLIVIA The public trial of cele- brated French Communist Jules Regis Debray has been deferred until 7 or 8 September in order to give the Bolivian Government more time to prepare its case. Debray, an expert on guer- rilla warfare and a close asso- ciate of Fidel Castro, was ap- prehended by Bolivian authorities last April. He is charged with rebellion, murder, assault, and robbery, and if convicted, could be sentenced to as much as 30 years in prison. The Debray trial has at- tracted considerable attention abroad, where he has become some- what of a cause celebre among leftist intellectuals, particu- larly in France. Foreign Commu- nist propaganda has successfully exploited Debray's imprisonment, winning considerable sympathy for him. Once the trial begins, Havana can be expected to use it to propagandize against US poli- cies in Latin America and around the world. Moreover, Debray's defense will more than likely include propaganda allegations of US "interference" in Bolivian affairs. The guerrillas have little prospect of success, but if they could spring Debray the Bolivian Army's prestige would be dealt a crippling blow. In any case, if the decision is made to trans- fer the trial, the guerrillas will have won a psychological victory by demonstrating again the army's inability to control the situation in the guerrilla zone. Except for a skirmish on 26 August, there has been a general lull in guerrilla activity over the past two weeks. The secret preliminary hear- ings for the trial are being held in Camiri, a small town close to the area in which the guerrillas have been active since last March. SECRET' 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET VENEZUELAN URBAN TERRORIST ORGANIZATION DECIMATED Venezuelan police scored a significant victory over urban terrorists last week by killing or capturing eight members of the Strategic Sabotage Command (CES), the urban terrorist arm of Douglas Bravo's Armed Forces of National Liberation. In three separate raids be- ginning on 11 August, the police killed four top terrorists, three of whom were platoon leaders and one who is believed responsible for the assassination last March of the brother of the Venezuelan foreign minister. Among those captured is Adolfo Meinhardt Lares, the CES commander in chief. A Cuban Army sergeant who entered Venezuela clandestinely with 12 to 14 other guerrillas in July 1966 was also taken prisoner. Police confiscated a substantial quantity of weapons and materiel, in addition to some $20,000 of the $100,000 taken by the CES in a bank robbery the day before. The CES was organized by Bravo in July 1966 shortly after he broke with. the pro-Soviet Com- munist Party. Its objectives are the assassination of Vene- zuelan military personnel; the theft of arms, explosives, medical equipment, and supplies; bank robbery; sabotage of military installations; and "spectacular military actions"--presumably attacks on military garrisons. The CES is responsible for a good deal of the urban terrorism that has plagued Caracas for over 25X1 Last week's police actions have hurt it badly, but approximately 30 members are still at large and can conduct sporadic acts of violence on a small scale. The capture of the Cuban Army sergeant will add substance to Venezuela's case against Castro intervention that will be pre- sented to the Meeting of Foreign Ministers of the Organization of American States beginning on 22 September. Although Venezuela has plenty of evidence and the support of most Latin American countries, there is little en- thusiasm for the meeting since many believe there are no meaning- ful sanctions that can be applied 25X1 i--n Havana at this time. SECRET 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 SECRET GUYANA'S OPPOSITION PARTY MOVES CLOSER TO COMMUNISM Cheddi Jagan, the leader of Guyana's opposition People's Progressive Party (PPP), has moved his party closer to be- coming a Communist organization. At the party's annual con- gress on 26 and 27 August, Jagan engineered the election of a large majority of his personal supporters to top leadership posts. In creating a virtual rubber-stamp :Leadership group, Jagan allowed a few moderates whom he does not control to re- tain executive offices. This bow to the moderate wing allows Jagan to take advantage of its administrative expertise for a while longer, but he is still determined to turn the PPP into a Communist organization and get rid of all his opponents. Several defeated moderates are members of the National As- sembly. They are deeply resent- ful of Jagan's high-handed tactics, and boycotted assembly sessions in a public protest. Even if some of them bolt the party, however, it is doubtful that they could take an appreciable number of fol- lowers with them or cause any mass disaffection. The PPP is a racially based East Indian party whose members idolize Jagan as their champion without regard to his ideological beliefs. Without the moderates' influence the PPP will become more radical and doctrinaire-- possibly on occasion slighting Guyanese political issues in favor of international Communist 25X1 SECRET 1 Sep 67 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5 Secret Secret Approved For Release 2008/08/22 : CIA-RDP79-00927AO06000020001-5