WEEKLY SUMMARY

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Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Secret State Dept. review completed DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY Secret 30 July 1971 No. 03$1/71 Copy No Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SECRET CONTENTS (Information as of noon EDT, 29 July 1971 J Page Indochina Vietnam: Filling Out the Election Ticket Laos: The GovernmAnt Moves in the South Cambodia: Concern for the Future 1 . 2 . 3 Communist China: Ferreting Out the Extremists . 5 Soviets Uneasy About Sino-US Moves . 7 RSFSR Premiership Changes Hands 8 UK-Malta: Negotiations on the Knife's Edge 10 Romania: Ceausescu Feints and Jabs 11 Tito Gains Ground in Fight Against Croat Nationalist;. 13 Rome and Vienna Wind Down Their Dispute Over Soiath Tyrol 14 Sudan: Numayri's Problems Still Around 15 Pakistan: Guerrilla Activity on the Rise 16 Liberia: A Time of Testing _ _ _ 17 Egypt: Sadat Searches for Peace Despite Frustrations 18 Yemen (Aden): Plus rya Change... 18 Black Power Comes to South Africa 19 Argentina-Chile: The Salta Talks 20 Cuba: Castro Accentuates the Positive 21 A Counterbalance to Moderate Trend in Peru 22 Costa Rican President Isolated Politically .. 23 Haiti: Under New Management .. 23 Uruguay's Leftist Challengers Off to a Fast Start 24 NOTES: Berlin Pass Talks; Arms Control; UN; tjSSR-Sudan; UN -Peace-Keeping; Ethiopia; UN -South Asia; Venezuela-Colombia SECRET Page i WEEKLY SUMMARY 30 Jul 71 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SE~I~Efi Indochina Vietnam: Filling Cut the Election Ticket FAR EAST poor shawing, but it is obvious that much of his potential suppor# has been scared off by local of- ficials, who are actively backing President Thieu. President Thieu's selection of Senator and former prime minister Tran Van Huang as his run- ning mate will provide a regional and religious bal- ance to his ticket. Huong was a rather ineffective prime minister wha did not enjoy an easy relation- ship with the National Assembly, but as a civilian and a southern Buddhist he will balance Thieu's Catholic and central Vietnam background. In addi- tion, Huong is widely admired for his personal integrity, has a large following in Saigon, and may offset Thieu's unpopularity there. Prime Minister Khiem--Thieu's alternate vice- presidential choice being passed over. However, Thieu probably considers Khiem's administrative abilities more useful in the prime minister's job. If Huong should drop out, Khiem still would be available to fill out the ticket. Huong is 67 and his health is not good. Big Minh's selection of Dr. Ho Van Minh for his vice-presidential candidate follows a period of behind-the-scenes backing and filling by the general and his potential running mates. Time and events are continuing to run against Vice President Ky's chances of qualifying for the fall election. Reports on the status of Ky's endorse- ments conflict, but at last count he apparently had no more than 20 certified endorsements of the 100 he needs, although his staff is claiming over 100 signed or promised supporters. Laek of money for campaigning and bribes and the lackadaisical efforts of his campaign staff have also contributed to Ky's Page 1 Province chiefs throughout the country have been openly soliciting endorsements for the Presi- dent and have frequently employed subtle pressures #a induce councilors to sign for Thieu, sign blank endorsements, or simply refrain from endorsing Ky. wen in the. absence of direct pressure, most councilmen are aware of the dangers of arousing the displeasure of a power- ful province chief or mayor. Thieu's organization seems determined to ex- clude Ky from the election, not only to assure the former's victory, but to give him a majority man- da#e this time-he won in 1967 with only 34.9 percent of the vote. Thieu and -his advisers seem unconcerned about the possible unfavorable impact on Thieu'S image abroad and they have discounted Big Minh's threats to pull out of the race. if Ky is blocked. In view of Thieu's determination to be a majority winner, he seems unlikely to relent in his efforts to black Ky's candidacy. Small-scale Communist attacks increased dur- ing the past week as the enemy continued its effort to nibble away at the government's pacification program. Most of the targets were militia outposts and smalP population centers. One raid on a Mekong Delta hamlet accounted for some 30 civilian casual- ties. Enemy sappers also penetrated swell-defended air base near Saigan and destroyed four helicopters. SE~~Efi Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 ~r~~t~r, t Although the expected- upsurge in larger scale enemy action this month has been delayed by heavy rains and flooding, signs persist that the enemy still hopes to stage another round of at- tacks soon. The evidence suggests that the action will be mostly concentrated in the northern provinces. Worry in Hanoi Hanoi continues to register unprecedented concern that Peking-Washington diplomacy has upstaged its own seven point initiative. Bitter indirect criticism of the Chinese is still appearing in the press, and Le Duc Tho, the top negotiator in Paris, has been called home for consultatians. The Vietnamese may also be seeking some Soviet assistance- in refocusing world attention on the seven points. Moscow has already provided propaganda support by echoing North Vietnamese strictures against any Washington-Peking attempt to settle the Vietnam war "behind Hanoi's back," and the Soviets will probably do more. Afforded an op- portunity to score points against the Chinese, Moscow will probably do its best to accom- modate itself to any plan the Vietnamese come up with to recapture the negotiations initiative. Laos: The Government Moves in the South Four irregular battalions, numbering 1,300 men, were airlifted to an area north of the town of Saravane on 2$ July in a major new govern- ment offensive in south Laos. The troops sub- sequently occupied the town without opposition. This provincial capital has been in enemy hands since last year, and its capture should give a psychological boost to the government in Vien- tiane. The irregulars, however, do not intend to Page 2 hold the town for long, but will try to move aga i n~:t Communist installations and supply caches to the west. Tl~e move into Saravane is the beginning of a wider Effort in the Bolovens Plateau. On 29 July government units began an operation to recapture Paksong in the central portion of the plateau. As a diversionary measure, government units had been moved into areas on the eastern edge. of the plateau. These units ran into stiff Communist resistance. The Communists have between six and eight North `/ietnamese battalions in the Bolovens with armor ,end artillery support. They hold most of the key high-ground positions on the plateau and have hid some time to pre-position ammunition caches. In north Laos, irregular units have once again moved into the foothills north of the Plaine des Jar~~es, reoccupying positions that had been lost to a Communist counterattack on 21 July. An irregular force also seized Phou San, a high point about five miles northeast of the govern- ment position at Phou Keng. The force moving south from Bouam Long, however, continues to encounter difficulties. Several clashes have slowed the irregulars' advance. North Vietnamese resistance in the Plaine has increased. On 26 July enemy gunners directed over 100 rocket, mortar, and recoilless rifle rounds ;~t the government base on Phou Theung. Other enemy units initiated clashes on the north- ern and eastern edge of the Plaine. The Government on Peace Talks Prime Minister Souvanna Phouma attempted to keep up at least the appearance of a dialogue SECRET WEEKLY SUMMARY 30 Jul 71 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 5~.t~1~C.~, i ~anyT;.n! ~ovoas Lang ~ Govarnment?hefd Iocetlon f Communist-held Iatatton on Lao peace talks by replying to the extremely hard-line Pathet Lao statement of 11 July. His la#est message to Communist leader Souphanou- vong called for immediate and serious negotia- tions to end the war. 5ouvanna again ignored the Communist proposal for acountry-wide cease-fire and instead proposed a bombing haft limited to the area of the eventual talks site,. presumably the Plaine des Jarres and Vientiane alternately. Souvanna's message did make one sug- gestion, moving a step closer to specifics about the modalities of talks. He proposed that security for the talk sites be provided by a mixed force of Lao Army and Pathet Lao forces under the super- vision of the International Control Commission. The Communists are unlikely to respond positively to Sauvanna's latest message. Most of it, including the proposal for a partial cease fire, has already been rejected. The Communists took the occasion of the ninth anniversary of: the Geneva Accords to repeat their position on nego- tiations. They asserted that they will continue to seek a negotiated solution to the war even while they "smash" US acts of escalation. r The government has moved to calm fears that an improvement in Sino-U5 relations ;may create difficulties for Cambodia. to a radiobroad- cast to the nation on Zti July, Lon Idol reaffirmed Phnom Penh`s "satisfaction" with Presildent (sfixan's forthcoming visit to Peking. The prime minister also stated that the National Assembly shared his view that the Geneva Accords of X954 call for the withdrawal of all foreign troops from SECRET Page 3 WEEKLY SUMMARY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Cambodia, and that Sino-US rapprochement should lead to a new international respect for the accords. It seems likely that Lon Nol's speech was aimed at least in part at reassuring politically important elements of the armed forces-es- pecially the elite Khmer Krom (KK) units-that the government will continue to resist Communist aggression. The prime minister's remarks came at a timE~ when the morale of KK troops was show- ing some signs of flagging. The KK soldiers have regularly borne a disproportionate share of the Camb~~dian Army's combat res onsibilities and have taken heavy losses. ~ThUs far thE; decline in morale apparently is slight, and does rot appear to have affected the discipline or fighting qualities of KK units. The Lon Nol government suffered the first political casualty of its new administration when the N~~tional Assembly voted to censure Minister of Commerce Khung Thay Ly, apparently as much to protest the government's failure to curb inflation as to fault Ly for his inept performance in office. The speed with which the government accept~:d Ly's resignation served to confirm re- ports that it was prepared to see him go without a fight, in the hope that his removal would increase assembly support for the regime's proposed eco- nomic stabilization program. 25X1 SECRET Page 4 WEEKLY SUMMAI~Y 30 Jul 71 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 `.~'~C:~C~'i~ Communist Chinas Ferreting Ghat the ~'xtrer~iists The behind-the-scenes investigation of a noto- rious Peking-based Red Guard organization that has been exacerbating tensions within China's ruling politburo over the pas# year may be entering a more public phase. Western diplomats in Peking have recently been informed of the censure of a former Foreign Ministry official associated with activities of tl~e "May I6 Corps," which had attacked Pre- mier Chou En-lei and other moderately oriented officials during the Cultural Revolution. Meanwhile, amass rally to repudiate the May 16 Corps wFll-be-held in Canton earEy next month. Similar political rallies are likely in other areas and could result in some fresh purges of local cadres, many of whom may be only tenuously connected, if at all, with the original May 16 organi- zation. I n any case, it appears tha# a major decision has been taken in recen# weeks to repudiate openly the more extreme manifestations of the Cultural Revolution and that the political fortunes of ultra- leftist leaders both at the national and local levels are continuing their downward spiral. Efforts to ferret out and arrest alleged follow- ers of the May 16 Corps were initiated in Peking and nearby Tientsin in fate 1969. Although the full ramifications of the investigation are still no# clear, it apparently served as the catalyst in an intense power struggle between moderate and ultraleftist forces on the politburo and touched off the dra- matic alterations within the top leadership over the past year. The May 16 case has never been openly discussed in the Chinese press and local officials were apparently kept in the dark about the a#fair until late 197!) when they were evidently ordered to begin holding anti -May 36 criticism sessions at various administrative levels. were pro a y esEgned to prepare local cadres for future revelations stemming from the intricate ma- neuvering in Peking. I n recent months, the campaign m the prov- inces appears to have broadened to include investi- gations into the backgrounds of suspected May I6 elements, the majority of which probably include local cadres. The campaign in Canton has been run by the military and has reportedly been confined to factories, the staffs in government offices, schools, hospice s, and communes have been prime targets. Because the original May 16 Corps appeared to have relatively few adherents outside of Peking, it is likely that the party leadership has authorized the campaign as a device for further undercutting the positions of extremist elements that may Mill be challenging the dominance of conservatively ori- ented military officers and veteran party .cadres in many localities in the emergent post -Cultural Revolution par#y apparatus. The degree to which Peking is willing, to ex- pose publicly the extent of disunity at the highest levels of national leadership, however, remains a moot point. fn May,. apro-Communist Australian journalist claimed that he had been told in;Peking that the names of the "plo#ters" behind the ?riginal May 16 group would be revealed as roan as the investigation was completed IAt this stage, therefore, it appears that Peking will pri- marily use the public rallies against the May 16 Corps both for domestic and international con- sumption and as a forum for repudiating political extremism, past and present.. Even if the forthcom- ing rallies shed little additional light on the cpmplex internal leadership picture, the very fact that the May I6 affair is being moved into the public; realm seems another indication of the growing strength of the moderate elements in the central leadership and of the strong shift to the right in China's internal politics. SECRET WEEKLY' SUMMAR'! 3t} Jul 71 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SECRET EUi~t~PE Soviets Uneasy About Sinn-US 't~~oves In a carefully worded article in Pravda on 25 July that ended a nine-day official silence, the Soviets expressed some of their worst fears re- garding the Sino-American rapprochement but offered to wait for future events to "reveal the true intentions" of Peking and Washington. The Soviet message was clearly twofold: on the one hand, it was a serious warning that Sino-US con- tacts cannot be used to pressure the USSR; on the other hand, it was a reaffirmation of Moscow's willingness to continue efforts to improve rela- tions with bath China and the US. For at least the time being, then, the Soviets are not of a mind to permit recent events to get in the way of border talks with Peking or the strategic arms talks with Washington. Although the article employed the Soviet practice of using statements from the foreign press to vent Moscow`s ire, it did not attempt to conceal the view that the rapprochement is designed in no small measure tobring pressure on the USSR, and could even lead to a ?'political combination" against the Soviets. The article ac- cused both Peking and Washington of cloaking their intentions behind a "dense propaganda screen," and it warned that their actions will be watched closely in Moscow. Any attempt to use the .contacts tv ".pressure" the USSR, Pravda warns, could only be the result of a "loss of touch with reality." The article, however, states that the 24th Party Congress defined Soviet policy toward Pe- king and Washington, and that the current course of events "confirms the correctness" of this policy. In this way,. the Soviets have endorsed bilateral negotiations with both states an;d the article itself concludes with an endorsement of active cooperation with Peking and the US. Meanwhile, the private remarks of Soviet officials appear to parallel the Pravda message of warning and wariness regarding Sino-American developments. Several Soviet diplomats have expressed the opinion that China and the U$ have reached some understanding on Vietnam; The Soviets are already seeking a sympathetic. audi- ence in Hanoi and other Communist stags for their view that Peking's actions have threatened North Vietnamese opportunities for success against the US. The Soviets are probably fearful of being cut out of future efforts to -arrange a political settlement in Southeast Asia. Moscow, aware that Washington's moves have considerably enhanced Communist China's chances for early entry into the UN, had reit- erated its endorsement of Peking's admission. Sev- eral days after the Presidential announcement on 15 Juiy,the Soviets publicly released a note fo UN Secretary General Thant calling for Peking's entry and Taipei's ouster from the UN. Although the Soviets are probably counting on Taipei to' be an obstacle to Peking's entry-as well as to any genuine improvement in Chinese relations with the US-Moscow must prepare for the day when it is competing with Peking for influence among Third World states at the General Assem- bly. SECRET -Page 7 WEEKLY SUMMARY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 RSFSR Premiership Changes Hands The replacement of Gennady Voronov by party secretary Mikhail Solomentsev as premier of the Russian Federation this past week sets the stage for future changes in the Politburo and Secretariat from which Brezhnev and his allies probably have the mast to gain. Election of 57-year-old Solomentsev by the new RSFSR Supreme Soviet on 28 July places the Soviet Union's dominant republic under the premiership of an independent with no obvious ties to top Soviet leaders. In the early 1960s, in fact, Solomentsev rose to the position of second secretary of Kazakhstan during an eclipse in the career of Kazakh leader and Brezhnev protege D. A. Kunayev, now a member of the Politburo. An industrial specialist with some experience in agri- culture, Solomentsev was appointed party secre- tary and chief of the Central Committee's heavy industry department in 1966. His rare speeches do not reveal a parochial outlook, however, as they have touched on the themes of consumer production, decentralization of some economic responsibilities, and ideology. Voronov, 60, is also a loner, but one who has recently been obviously out of favor with Brezhnev and his allies. Voronov's appointment as chairman of the People's Control Committee on 22 July was a serious demotion. Despite some apparent support last fall from anoth~~r independent, senior secretary Suslov, Voronov suffered a series of reversals this past year. In February his chief deputy for six years was r~aplaced by an official with career ties to Brezhnev. Brezhnev's ranking of the Politburo at the party congress this spring showed a steep decline for Voronov in the five years since the 1966 congress. Voronov's rivalry with Brezhnev's unofficial deputy, Kirilenko, goes back to the early 1960s. Voronov's persistent advocacy of more agricultural reform at a lower cost con- tradic~led the wishes of First Deputy Premier Polyansky and the agricultural program an- nounced by Brezhnev last summer. Changes in the Politburo seemed to be fore- shado~roed by its expansion at the party congress in April. Solomentsev's replacement of Voronov as RSI=SR premier has relevance for the composi- tion of both the Politburo and the Secretariat. By precedent, Voronov's new position does not en- title him to continued membership on the Polit- buro. Solomentsev, on the other hand, is now in line to gain Politburo status, although he will have to relinquish his Secretariat post, leaving a vacancy in that body. Gennady Voronov Page 8 SECRET Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 St/f~~t~:"1' CaRAND HARBQR Cont/nued use by M#ntoff's Proposals for New Malta/Ult Re#ationship HAIL FAR Relinquishment by RAF ~~~,~ y ~r>i~K~v svMM>~,RV 3a ~~~ ~i Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 ~L,l~1C1.1 U K-M a I to : Negotiations on the Knife's Edge The British high commissioner in Valleta has described the UK-Malta negotiations on a new defense arrangement as being "on the knife's edge." He is not optimistic about the outcarne of the talks, which have been in progress for more than a month, because Prime Minister Mintoff has displayed little flexibility in his tactics. Mintoff has told the British that if they do not soon meet his financial demands, British forces will have to be withdrawn and he will turn elsewhere for aid. Valleta has advanced two proposals for a new agreement. The first embraces a "wholly exclusive defense arrangement" that would per- mit the British to retain a veto power over third country military use of Maltese facilities in ex- change for an annual payment of $72 million. The other proposal is fora "less exclusive arrange- ment" costing $48 million annually, under which Malta would have the power to grant the use of its harbors and airfields to any nations except those in the Warsaw Pact. The use of the island by British forces would be strictly defined under either of these two proposals. The Royal Navy would be limited to Grand Harbor, and the Royal Air Force would have to give up its base at Hall Far and retain facilities only at Luqa, Malta's principal airfield. Mintoff has told the British that, although NATO must leave the island, the Allies could contribute toward the UK payment to Malta. Valleta, however, would not count bilateral de- velopment aid from NATO members as part of the "rent" it is seeking from the British. The UK has asked the Allies for their posi- tion on the principle of a NATO contribution to Malta and how much each would be willing to offer. Although NATO Secretary General Brosio is dubious about the chances for a special finan- cial contribution, he has agreed to hold a meeting to discuss the request. London will seek a firm response by 5 August so that it can resume negotiations with Valleta. The British representa- tive to NATO has implied that London would like to offer Mintoff an annual payment of $24 m i I I i on, of which the UK would pick up some~uvhat less than half. The level of annual UK aid up to now has averaged out to about $12 million. ~/lintoff's negotiating tactics are aimed at producing an agreement before the Maltese par- liament convenes in late August. An accord with London that is seen as a significant improvement will hE~lp mute opposition criticism of the Maltese Labor government and consolidate Mintoff's hold over the moderate wing of his own party, thus allowing him to exercise his one seat parlia- mentary majority with confidence.) - SECRET 25X1 25X1 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SECRET Romania; Ceausescu Fedrzis and Jabs The 25th annual session of the Council for Economic Mutual Assistance (CEMA' opened in Bucharest on 27 July against a backdrop of recent assertive speeches by Romanian leader Ceausescu. Insofar as these speeches stressed national sover- eignty and the right of each party to determine its own policies, Ceausescu basically restated old principles, but he also used them to surface same new ideas, particularly with respect to economic integration. His apparent intent was both to reas- sure the Romanian people and to signal his allies that Bucharest proposed to stand firm during the CEMA session which called, i~~ter~rlra, for "devel- oping socialist economic integration." Ceausescu used his strangest language with respect to CEMA and Moscow in a speech at Constants on 23 July. In it, he asserted that CEMA is "an important _body," _but added that "interdependence in production must in no way infringe on national sovereignty" nor influence the right of each nation "to decide independently its development program according to its own wishes." He later drove home his point by "de- nouncing old enslaving economic and military agreements and treaties" and by adding that the "times of oppression and diktat have gone for- ever." The Constants speech else contained other carefully tailored phrases implicitly striking out at mounting Soviet pressure and .criticism of the Romanian regime. Thus Ceausescu stressed that "an absolute end must be put to the imperialist policy of force, diktat, and interferente in the affairs of other states or of any kind of pressure against other states." More specifically, he as- serted that "small and medium-sized states should oppose the imperialist policy of force and diktat and should assert and defend their right to a tree life!" Ceausescu is walking a very thin wire fpr an Eastern European Communist leader. Earlier this month he posed some maverick ideas with respect to economic integration-a subject about which Bucharest has long been chary. Noting that "in- tegration is being discussed, both the socialist #ype and that of the Common Market," he stated that "we must distinctly analyze and discuss the #hese5 and practices connected with capitalist in- tegration as well as the problem of socialist taop- erative relations and the forms of integration within the framework of CEMA." Neither the more positive tone of his re- marks on "the practices of the Common Maf?ket" nor his linkage of CEMA and Common Market principles will reduce Moscow's irritation :with Bucharest. At the same time, however, the Ro- manian leadership considers itself sufficiently pru- dent politically to sense the "danger quota,t' as a high-level Romanian official recently put it that Moscow will tolerate. In practical terms, there- fore, Bucharest can be expected to resisit any sharp increase in integration within CEMA, but it can accept minor progress that is coupled- with precise language protecting Romania's national sovereignty. How extensively Bucharest cooperates at this CEMA session will help to determine whether Moscow tests anew Romania's loyalty to all Soviet-sponsored and bloc-wide institutions, in- cluding the Warsaw Pact. In this regard, !more Soviet pressure may be forthcoming to gain @ither Romanian participation in next month's .com- bined Pact exercise in Bulgaria or transit rights for participating Soviet troops via Romanian surface SECRET Page 11 WEEKLY SUMMARY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 S~GKE'1' BERLIN PASS TALKS: West Berlin Senat nego- tiator Mueller and East German state secretary Kohrt again failed to make any progress on 26 July in their meeting aimed at trying to hammer out a holiday pass agreement for West Berliners. The East Germans, who have little interest in an agreement for humanitarian purposes alone, con- tinued to insist on discussing the question of the Bonn government's presence in West Berlin, a topic reserved for the Four Power negotiations on the divided city. The lack of enthusiasm on both sides at this meeting, the first since May, was reflected in the fact that the next session is not scheduled until 30 August, "unless ro ress is notecl in the Four Power talks." 25X1 ARMS CONTROL: The Soviets have responded in a forthcoming manner to US suggestions for revisions in their draft convention curbing biologi- cal weapons (BW). Only a few minor points re- main at issue between the two countries, and agreement should be reached soon on a single text to be presented to the other participants in the 25-nation Geneva disarmament conference. The UN: At week's end the UN faced the strong possibility of unprecedented strike action by its staff personnel-clerical, security, and main- tenance workers-beginning in October. Secretary General Thant has offered a retroactive eight-per- cent pay hike, but the staff union is demanding a 15-percent boost. Thant believes the UN member states could accept an eight-percent increase, but USSR-SUDAN: Soviet-Sudanese relations are al most certain to deteriorate sharply in the next few weeks. As of 1200 EDT, Thursday, Moscow had not yet commented authoritatively on the execution of Sudanese Communist Party leader Mahjoub. Based on its reaction to the execution earlier this week of the leading Sudanese Commu- nist trade union official, however, Moscow is likely to protest vigorously. Press reports from Khartoum indicate -that Sudanese President Numayri, in a speech on 29 July, absolved the Soviets of any role in the nonaligned delegates still would prefer a conven- tion :hat would also include limits on chemical weapons (CW), but they are not inclined to pre- vent ~icceptance of a text confined to BW. Thus it 25X1 seems likely that the conferees will present a BW convention to the UN General Assembly this fall. the Big Four major donors-the US, UK, France, and the USSR-have told him they have serious problE~ms with his 1972 budget, which failed to project even the eight-percent rise. Any strike action would pose serious security problems at the headquarters complex and hinder the upcom- ing GE~neral Assembl session. recent coup attempt and reiterated his desire for good relations with the USSR. At the same time, however, Numayri also announced that at least some ~~f the estimated 470 Soviet economic and military advisers would be leaving the Sudan "be- cause '`heir mission was completed." None of the military or economic projects undertaken by the Soviet~~ in the Sudan would appear to be far enougPr along to warrant the departure of the experts, but in the present circumstances both sides may see some advantage in cutting back on the Soviet presence. It is unlikely, however, that either side will want to terminate the aid program Page 12 SECRET Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 ~E+CR E'I' Tito Gains Gr?tand in Fight Against goat Nationalists Events over the past two weeks indicate that Tito has made impressive gains toward re-estab- lishing control over Croatian nationalists. The Croat party-including leaders sympathetic to the nationalists-has dropped its resistance to Tito's demands for action and for the first #ime is trying to isolate and neutralize radical separatists. Since the party meeting in late April, Ti#o has pushed for such measures but, constrained by consideration for his upcoming political reforms, was unable to bring his full administrative power to bear. Now that his reforms have been passed into law and his dramatization of the Soviet threat has tightened Yugoslav unity, Tito's warn- ings are having more effect in Zagreb, Moderate Croat party leaders fell into line in early July, but until last week the nationalistic members still refused to accept the inherent dan- gers of their course. A turn in Tito's favor, how- ever, came on 25 July when C+/Iika Tripalo, the Croatian party leadership's rmos# active booster of Croat independence, made _an abrupt tactical about-face. Tr:ipalo, aware of the party's expul- sion of two prominent proteges two days earlier, delivered a speech emphasizing that nationalism had become a threat to the federation, that con- centration of power in the federation had bene- fited ail Yugoslavs, and that separatism was inimi- cal to both Yugoslav .and Croatian interests. He further recommended "self-denial, discipline and practical action" as guidelines for the future. Tripalo's back-pedaling will confuse the na- tionalists, and more fissures in their unity ire to be expected. There are indications that the goat party chief, Mrs. Savka Dabcevic-Kucar, the goat party's most vocal supporter of Tito's fine, i5 now ready to capitalize on this opportunity. The goat student federation, which has been virtually un- checked in its separatist course since party loyal- ists were driven out of its leadership early this year, will be a primary target of her efforts. A rival group, the Croat youth federation, his al- ready begun to dissociate itself from recent ex- ce55e5 by the student federation. Other tiilrgets will probably be militant Croatian culturiill so- cieties, like Matica Hrvatska, and nationalist, jour- nals that have incited quarrels with other minori- ties. Tightening discipline will not be an easy task for the Croat party, however. The manner in which it handles the more adamant nationalists will be subject to criticism both from Belgrade for being too soft and from its own ranks for serving as an anti-Croatian tool. Mrs. Dabcevic-Kuc~r will have to strike a balance that will redeem her ;party in Tito's eyes and preserve, as much as possible, party unity and influence over the repub- UN - PEACE-KEEPING: A working paper the peace-keeping mission, with little latitude fpr the Soviet delegation at the UN has given the t;5 on Secretary General. Other UN members are becom- guidelines for UN peace-keeping missions reveals ing restive over the lack of progress in completing no movement by the USSFt on key substantive the guidelines and may soon offer their; awn paints, but the Soviets want to revive bilateral proposals. talks on the subject. They continue to insist that the Security Council have full control over a SECF~ET Page 23 WEEI~CLY SUMMARY 3Q Jul !1 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 S~;C~K.N;'1' Rome and Vienna Wind Down Their Dispute aver South Tyrol Steady progress toward settling the long- disputed status of the South Tyrol area, called the Alto Adige in Italian, has resulted in considerable improvement in Austro-Italian relations. Discontent has simmered-and sometimes boiled-in the South Tyrol, where most of the people speak German, since Austria was forced to cede the area to Italy after World War I. In 1946, Italy promised to give autonomy to the South Tyrol, which it had designated Bolzano Province. In fact, Rome merged the province with pre- dominantly Italian Trento Province to form an Italian-dominated "autonomous region" called Trentino -Alto Adige. The affected German-speaking population numbers only some 200,000 but their demands have always evoked sympathy in Austria, partic- ularly in the North Tyrol, and have been an unavoidable political issue for all postwar Aus- trian governments. Rome's interest in finding a solution to the dispute has been heightened by repeated terrorist activities of anti-Italian groups having imprecise ties to Salzburg, Munich, or Vienna. In December 1969, Rome and Vienna agreed on a program of steps to peace in the South Tyrol. It provided that progressively over a period of four years, Bolzano Province would be given more legislative and administrative auton- omy and the German and Italian languages will have equal status in the public media and the educational system. Th is month, Austrian Foreign Minister Kirchschlaeger and Italian Foreign Minister Moro signed a treaty providing for jurisdiction by the International Court of Justice at The Hague in case of further dispute over the government or the borders of the province. Steady Progress Continues - on South Tyrol Dispute ' AUSTRIA !Innsbruck '(Alto-Actige) BOLZANO PROVINCE ~T~~t~Tiao- a~'TO-a?ioe Venice.-.- ~:. The progress made by the two governments in laying the South Tyrol issue to rest has been marked by the relaxation of tensions in the area-~~articularly evident in the cessation of ter- rorist attacks-and in the emergence of better feeling between Rome and Vienna. Italy has moved away from its long-standing role as the most outspoken opponent of Austria's bid for association with the Common Market and now supports Vienna's request for early negotiations for a free trade area between Austria and an en larged European Community. 25X1 SECRET Page 14 WEEKLY SUMMp,RY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 ~SEC~E'T' MIQDLE EAST - AFRICA Sudan: Nuntavri's Problems Sti1l.~round Although he has been restored to .power fallowing the collapse of the three-day Commu- nist take-aver in Khartoum, Revolutionary Com- mand Council Chairman Numayri will not find his position much better than it was before the coup. In southern Sudan, the 16-year-o~d rebellion led by the Anya-Nya continues. Although the dissidents do not present a serious challenge to the government, their unrelenting guerrilla war- fare has forced Numayri to station a sizable por- tion of the army in the major .cities of the area. Military leaders are not pleased about having their forces tied down in garrison duty, however, and are frustrated by their inability to take effective action against an opponent that appears and dis- appears quickly into the jungle. They are likely to -bring pressure on Numayri until he tinds some accommodation with the rebels. Economic problems also remain to be coped with. Two years of incredible mismanagement and erratic changes of policy have brought devel- opment to a standstill. Increased revenues haae been offset by growing expenditures, and the country's cotton crop, a prime source of income, is heavily mortgaged to Moscow to pay for arms. Although the removal of Communists from the government may provide a more favorable climate for aid from Libya and the West, it is likely to be some time before any ecanamic turnabout is pos- sible. ETHIOPIA: Emperor Haile Selassie intends to visit Communist China this fall, probably in Eate October. The trip follows the establishment of diplomatic relations in December 1930. Addis Ababa apparently hopes Peking will offer eco- nomic assistance, and a high-level committee is already at work on a list of aid projects to be discussed with the Chinese. An Ethiopian trade Moreover, with an Indonesian-style vendetta against the Communists moving into high:; gear, Numayri wil9 now be more beholden than ever to the army, the only source of authority and power left in the country. The military establishrAent- and especially its senior officers-has Cang been conservative in political ideology and is likely to urge Numayri to remove whatever leftists amain in the government. The chairman will also be under great pressure to emulate more close [y the "progressive revolutionary" regimes in Libya and Egypt. Paradoxically, however, when Numayri moves in this direction-and he has already announced his intention to take Sudan into the Federation of Arab Republics next January-it will cost him grass-routs support, for the Sudanese have: been divided on the issue of association with ~gypt ever since independence. Numayri will have to work hard indeed to sell to the people the ad- vantages of a closer political relationship'. with Cairo, the cornerstone of the federation. Numayri may have been given a second chance, but his tenure depends to a large degree on how well he handles his problems, and espe- cially on his ability to keep the military placated. If he stumbles, as he had been doing in the months before the coup, Numayri could find him- self removed from power again, this time by a conservative junta. and aid delegation is going in September to .work out details of an economic agreement that; then can be signed by the Emperor the following month. ~EC~ET Page 15 WEEKLY S_IJMMARY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SECRET Pakistan: Guerrilla~4ctivityon the Rise Sabotage, assassinations, and ambushes in East Pakistan are increasing. Bengali insurgents have been able to disrupt the transportation sys- tem in the eastern part of the province and com- munications elsewhere are far from normal. A Pakistani general admits that, on an average, 'two bridges a day are being blown up. Sabotage of the electric power system also continues, and the cutoff of natural gas in Dacca may have resulted from guerrilla operations. The guerrillas are not yet strong enough to challenge the army directly, and it appears un- likely that they will be able to do so in the near future. But with many government troops di- verted to the border-where clashes with the Indians continue-the army may be spread too thin to deal effectively with the sabotage cam- paign. Guerrilla activity and government inactivity have both contributed to the lack of progress in solving the food distribution problem. The US consul~~te general believes that it may prove im- possible to distribute the 1.4 million tons of grain that will be needed before the end of the year, and predicts that starvation in parts of the prov- ince is likely to begin by November. Ire India, pressure to recognize "Bangla Desh" is mounting, although the flow of refugees has slackened, at least temporarily. Prime Minister Gandhi's political opponents are allegedly unani- mous ~n support of recognition, and the major opposi~:ion parties are planning a series of public demonstrations on the issue. Mrs. Gandhi has strengthened her public statements in support of the "freedom fighters," but still maintains that India will base its decision to recognize "Bangla Desh" exclusively on direct national interest and on whE~ther such a move would support the cause of the Bengal is. I n discussions with members of parliament on 25 July, however, she gave the Bengali nationalists some encouragement by as- serting that no preconditions or criteria-such as control of specific amounts of territory in East Bengal-have been established for recogni- UN -SOUTH ASIA: The UN secretariat this week completed its decisions on staffing the refu- gee areas in West and East Bengal, and the full complement of personnel should be on the scene shortly. With food and other relief supplies now flowing into the subcontinent on a more adequate basis, the international community is again focus- ing on political problems there rather than on the humanitarian concerns. India has reacted sharply-in both diplomatic channels and the mass media-to Secretary General Thant's pro- posal ti~at UN observers be stationed on each side of the Indo-Pakistani border. New Delhi main- tains that such a proposition would be tanta- mount to suggesting that the civil war in East Pakistan was an international conflict. The pres- ence of such observers could also hinder Indian cross-border operations in support of the Bengali freedom fighters. ~ SECRET Page 16 WEEKLY SUMMAi~Y Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SE~~~T Liberia: A Time of Testing The death last week of President William Tubman ushers in a time of testing both for the system of government he developed during 27 years of rule and for William Tolbert, his succes- sor. Former vice president Tolbert must now make that system-which depended heavily on Tubman's personality and intimate knowledge of the personal affairs of members of the ruling elite-responsive to his own direction. Tubman's death has created among most Liberians a sense of loss and shock, as well as fears that with him wilt go the prosperity and political stability associated with his Eong rule. Reforms initiated by Tubman helped lay the basis for modernization of the mineral-rich economy, and for more equitable sharing of the country's wealth and political power by disparate social and tribal groups. In his first public speech after be- coming president, Talbert pledged to continue these highly popular policies. Many observers doubt that Talbert possesses the skills necessary to duplicate Tubman's adroit manipulation of Liberia's various in#erest groups. One danger is that he will alienate powerful seg- ments of the ruling group by ignoring their advice or adopting too heav -handed an .a roach in lining up supporters. Tolbert has enemies within the power struc- ture, but they do not appear to be organized into a single faction. They have #hus far moved cau- tiously because at this time the President still looks like a winner. This could change if Tolbert Page 17 badly mishandles the reins of power over the next several months, however. Unable to prevent Tolbert's accession to the presidency, his rivals have fastened on the legal question of how long he may govern without facing elections, which many believe he could not win. The four-year term to which Tolbert and Tubman were elected in May 1971 does not offi- cially begin until next January. Some opponents maintain that the new President's mandate does not extend through the new term and that presi- dential elections must be held next year. ~~ 25X1 Tolbert is clearly prepared to fight back, probably through behind-the-scenes deals; with key members of the ruling oligarchy. The_ main plum in his bargaining is the now vacant office of vice president, for which an "immediate" special election is required- ?ne rumor circulating in Monrovia is that Tolbert has agreed to back William Tubman Jr., the late president's 36-year- old son, for the post, and to stand for election himself at the same time, Tolbert allegedly reasons that aTolbert -Tubman Jr. ticket would be un- beatable, and that he would profit. from en- h anted legitimacy and the longer eight-year ten- ure allowed first-term presidents. Whatever the final solution, the ma- neuvering by Liberia's power brokers has only just begun. Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Sr;C:~K~'1' Egypt : Sadat Searches for Peace Despite Frustrations President Sadat broke no new ground during his speech commemorating the anniversary of the revolution of 23 July 1952, but he did vent his sense of frustration over the state of Middle Eastern af- fairs, He began his address with a lengthy review of the domestic situation, dwelling on the need to create a strong, modern state, and calling for "open dialogue and democracy" within Egypt's newly re- structured political organization, the Arab Socialist Union (ASU). Sadat expressed his sadness at the present disarray in the Arab world, especially on the moribund "Eastern Front." Particularly bitter criti- cism was directed at King Husayn of Jordan and his recent actions against the fedayeen. Sadat accused Husayn of "prevaricating," charging that he must bear the responsibility for the "crimes which have taken place in Jordan." The Egyptian President's unhappiness was also evident in his remarks. concerning the prolonged impasse with Israel. He restated his earlier vow that 1971 would be a decisive year, then went somewhat further by pledging that he would. "not allow it to pass without this battle being decided." Sadat modi- fied this statement. a few days later, however, when he told the ASU National Congress, "I am not saying -that our road to victory must be completed this year." Sadat closed no doors to a political solution during his remarks; he reiterated his sup- porf for UN peace efforts and stated that he would "never stop looking for any road leading to peace if there is a chance for peace." Yemen (Aden) : Flus ~a Change... The squabbling between "moderate" and leftist factions in Aden will probably be quelled by the return last week of the influential secretary general of the National Front (NF), the country's sole 25X6 party. In the absence of Abd al-Fattah Ismail, competition between the lesser political leaders had brought the government to a virtual standstill. Salim Rubai Ali, the head of state, took advan- tage of Ismail's absence to extend his personal influ- ence and win support for his Maoist policies. Ali inspired various "spontaneous happenings," includ- ing the seizure of land by landless laborers, of fish- ing boats by crews, and of unoccupied homes by the homeless. Revolutionary groups also started appear- ing in schools, factories, and government offices. In a short time, it appeared, Ali was attempting to create a Yemeni version of the Chinese cultural revolution. Ali's bid for power was opposed by Muham- mad Ali Haytham, the prime minister, who heads a group of so-called moderates. This group, whose extremism has a dash of pragmatism, remained mostly on the defensive, however, reacting to Ali's excesses rather than taking the initiative. The Haythain group's one attempt to take the play away from A,li fizzled when it was found that he had already gained the backing of the most influential members of the NF. Haytham's position was weakened further when h~~ lost the support he had depended on from the army and the Interior Ministry's security forces. The army sided with Ali as the strongest seeming political leader on the scene-ironically, a practice that Haytham himself had established under earlier circumstances. The prime minister's presumed sup- port from the security forces proved to have been only a temporary tactical maneuver by the tribal group that controlled the ministry; the tribesmen were, iri fact, trying to bring down both Ali and Haytharn. Isnnail apparently also hoped that his two rivals would destroy each other during his absence, and so he delayed his return until their in- fighting finally threatened to undermine the SECRET Page 18 WEEKLY SUMMAF;Y 30 Jul 71 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 5ti;(..;~~"1~ stability of both the government and the NF. Ismail was particularly concerned by the outbreak of clashes between landless peasants and property own- ers. Although this never developed into large-scale fighting, it created serious bitterness between local factions; even personnel of the armed forces became personally involved and refused to fake action to preserve order. Black Power Comes to ~o~ath ~,frica A developing black power movement, primarily among university students, is causing concern in the government. The authorities are uncertain how to deal with the movement, however, because it es- pouses "'separateness," which is in keeping with the official policy toward the country`s blacks, The core of the movement lies in the all-black South African Student Organization ~SASO), which was formed in 1959 when black students brake from the multiracial National Union of South Afri- can Students. The main purpose of the organization, according to a SASO spokesman, is to instill in black people an awareness of their own power, to restore their self-respect, and to teach them that they have to look out for themselves. SASO leaders have closely followed the activities of black Americans in recent years and readily admit to borrowing liberally from their views and terminology. SASO claims 3,000 active members, a rapid growth from the original 30 who attended organiza- tional meetings in late 1968. At a conference in July 1970, the leadership decided that priority should be given to building "black consciousness" and a feel- ing of solidarity among African, Asian, and Colored students. They initiated a campaign to end the activ- ities of all multiracial organizations on nonwhite campuses and get the students to affiliate with SASO. Within a year, they have had substantial suc- cess: of the ten schools targeted. seven have form- ally affiliated with SASO and one has op#ed far a type of associate membership. Although not as successful o#f the campus, the movement is not solely a student phenomenon. In Soweto, a large African township near Johannes- Now that he is back, Ismail will probably sup- port Haytham, so that together they c8n put a temporary end to Ali's radical policies. Once the mini-Mao is restrained, however, Ismail'3 alliance 25X1 with Haytham is likely to dissolve, giving the ex- tremists an opportunity to stir up trouble again. burg, a "Black is Beautiful" campaign has been or- ganized by David Thebehali, a militant yowng mem- ber of the local Urban Bantu Council. He yvants Af- ricans to support black-owned shops, to establish separate black churches, and to give children tribal rather than English names. Thebehali a.1so urges blacks to move to their proposed rural homelands, which he wants them to develop themselves using money and expertise gained in the cities; if assist- ance is necessary, he believes it should be sought from black Americans rather than from the white South African Government. Blacks have been hesitant to show fnuch en- thusiasm for the movement, despite its still nonpo- litical nature, because of the government's: pervasive presence:. The blacks suspect-probably carrectly- that SASO is heauily infiltrated with informers, and that security officials are watching its activities care- fully. The government is caught in something of a bind., however, because a developing "black con- sciousness" is a natural by-product of the official policy to establish and eventually grant independ- ence to the African homelands. A complicating factor-and one the govern- ment is also watching with concern-is the rise in popularity of the charismatic chief of Zululand, Gatsha $uthelezi. Some black student mjlitants al- - ready look to Buthelezi for leadership on a national level, and the government may worry that he will be _ able to take advantage of these rnovementS to create a united black fron#. The quandary that Pretoria must therefore reconcile is how to continue with its25X1 plans for black "independence," which . it wants, without fostering a further growth of black power, SECRET Page 19 WEEKI_X SUMMARY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SECRET WESTERN HEMISI~HERE Argentina-Chile: The Salta Talks The meeting of Argentine President Lanusse and Chilean President Allende in the Argentine city of Salta on 23-24 July was generally har- monious and friendly and has been well received in both nations. The talks were held to mark the signing of an agreement on arbitration procedures aimed at resolving the long-standing boundary dispute in the Beagle Channel and provided an opportunity for General Lanusse and the Marxist Allende to size each other up. The mutual suspicions that have tradi- tionally characterized relations between the two countries were intensified by the election of a Marxist government in Chile last year. Leftist Chilean politicians were concerned that Argen- tina, perhaps in concert with the military govern- ment of Brazil, might seek to intervene in Chilean politics or actively attempt to isolate the Allende regime. The Lanusse government, on the other hand, has been concerned with the possibility both of a Communist take-over in neighboring Chile and of leftist subversion being directed into Argentina from across the long and undefended border. The presidents reassured one another in Salta last week, although hints of the tensions were not entirely absent from the ceremonies and private talks. Allende reportedly told Lanusse that rie would not do away with democratic proc- esses and that if the people rejected his socialist progr~~m he would not impose it by force. For his part, Lanusse joined Allende in an official joint declaration that, among other things, paid homa~~e to the principles of nonintervention and "political pluralism" in international affairs. [)omestically, both presidents appear to have benefited from the Salta meeting. President Lanusse's image was probably enhanced with the Argentine political left, and this should aid, how- ever slightly, his current effort to smooth over some of the deep divisions in Argentine politics. The rneeting also gave a timely boost to the prestige of the Allende administration, which is beginning to be embarrassed by shortages, eco- nomic disorganization, and recent political re- verses. The talks with Lanusse are being treated in the Cf?iilean press as the harbinger of a "new era" in Argentine-Chilean relations, and this major step toward neutralization of an ideological adversary is genE;rall re arded as a di lomatic trium h for Allende. ~ VENEZUELA-COLOMBIA: Friction has eased considerably following Colombian participation in the recent celebration of 150 years of Vene- zuelan independence. The presidents of both na- tions worked at lowering the tensions raised in late May, when a Venezuelan plane violated Colombian airspace and attacked two US heli- copters on a surveying mission. Despite the belli- gerent mood, fed in Bogota and Caracas by the sensationalist press, the Pastrana and Caldera gov- ernments agreed to proceed with scheduled meet- ings in Rome, where delegates will seek to settle the jurisdictional dispute over the potentially oil- rich Gulf of Venezuela. The emphasis on the two countries' common heritage has continued this week, with Venezuelan labor groups meeting with their counterparts in Colombia, "to establish a harmonious climate." A Venezuelan labor confed- eration in turn has invited Colombians to meet in Caracas this weekend to discuss means to resolve outstanding differences peacefully. With many bi- lateral issues still unsettled, however, and- with continuing military readiness along both sides of the frontier, the danger of another hostile inci- dent is always present. SECRET Page 20 WEEKLY SUMMARY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SECRET Cuba: Gastro Accentuates thc~ Positive Fidel Castro struck a cautiously optimistic note regarding both foreign and domestic matters in his speech an 26 July. He clearly sees the trend of events in Latin America as developing in Cuba's favor, and he tailored his comments to take advantage of this movement. In discussing problems of the national economy, he was careful to counterbalance the negative with the positive aspects of production, and he neglected com- pletely to refer to the failure to achieve this year's sugar harvest goal. His generally positive approach suggests that he is aware of the demoralizing impact his long recitations of economic problems have had on the public in the past and that he is taking pains to avoid any loss of confi~denee such as that which followed his speech at this time last year. With Chilean Foreign Minister Almeyda and a delegation of students and workers from Bolivia looking on, Castro lauded the "revolutionary" governments of Chile and Peru and expressed optimism that in Uruguay, too, a "popular gov- ernment" could be in power following elections Page 21 fate this year. He attempted to take advantage of recent statements by some Bolivian officals re- garding diplomatic relations with Cuba, saying that the request of Bolivian workers and students for relations "'will not find a negative response" on the part of the Cuban Government. He indi- cated, however, that he expected that those in- uolved in the execution of Che Guevara in' Octo- ber 1967, some of whom still occupy important positions in Bolivia, would be dealt with in due time in the meantime, he said, every positive attitude of the Bolivian Government would have Cuba's support. In domestic affairs, Castro avoided a repeti- tion of the bleak economic picture he painted last year. Although he acknowledged that production difficulties were continuing in some sectors, he attempted to give a more positive view by pre- senting comparative statistics showing a general increase in industrial output during the first. half of 1371 over the same period last year. such a comparison is not very meaningful, however, be- cause production in the first half of 1970 was low because of ttte unusually large diversion of labor into the sugar harvest. In quoting statistics, Castro failed to mention the size of the 1971, sugar harvest., which was more than a million tons be- low the original goal of seven million toes and two and one-half million tons below production ref 1970. Although his emphasis was on piositive economic developments, he gave no indication that he expected Cuba's problems to diminish significantly in the near future. Regarding Cuba's relations with the US, Cas- tro said he "will not seek a conciliation of any kind with the Yankee imperialists." He d!id not flatly reject all moves toward an improven3ent in relations, but he stated emphatically that conces- sions on his part would be tots{ly un~ccept- SECRET Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Sr;C~K~~ 1 A Counterbalance to Moderate Trend in Peru Recent developments in Peru demonstrate an effort by the Velasco government to take a more pragmatic approach in dealing with the growing economic problems and at the same time to retain a revolutionary image. Moderates and conservatives seem to be taking an increasingly dominant role in the government's day-to-day operation through their control of most of the ministries, but at the same time the government has set up a new "social mobilization" organiza- tion that has a definite radical leftist orientation. Evidence of a trend toward moderation has slowly been building over the past several months. The first indication was cabinet changes in April and May, the most significant of which was the appointment of the moderate Admiral Jimenez to the important post of minister of industry. In- creasing criticism from the army both of Presi- dent Velasco's leftist drift and of his handling of Peru's economic problems was probably largely responsible for the apparent change of direction. The recent signing of an oil exploration and ex- ploitation contract with the Occidental Oil Com- pany, the tougher stand toward the Communist labor confederation, and President Velasco's quiet reaction to cuts in Peru's US sugar quota, are some of the -more outstanding examples of the apparent move toward moderation. The establishment last month of the Na- tional System for Support for Social Mobilization (SNAMS) now appears, at least in part, to be an effort to salvage the military government's fading revolutionary image. President Velasco appointed one of his most trusted supporters, General Rod- riguez Figueroa, to head the new cabinet-level organization. The stated objectives of the new organization are the training and orientation of the people, the development of social institutions, and thE; establishment of a direct line of commu- nication between the government and the people. General Rodriguez, himself one of the mare dy- namic and radical members of the government, reportedly will be assisted by Carlos Delgado, an adviser to Velasco who is generally believed to have been responsible for the President's more radical and demagogic speeches. Rodriguez and Delgado have appointed sev- eral leftist and pro-Communist officials to -aid them iri getting the social mobilization or aniza- tion off the ground. Pr~asident Velasco and General Rodriguez have dE~nied that the social mobilization effort is aimed .at creating a government political party, but considerable speculation remains that it will serve tF~at purpose. There is evidence that some elemeni:s within the armed forces are becoming more intent on turning the government back to civilian~~, but this cannot be done until some mechanism has been devised for transferring power to civilians who will continue the revo- lution the military has begun. Until that time the social mobilization organization, led primarily by radicals., will probably be charged with bolstering the sag~~ing revolutionary image of the Velasco government. SECRET Page 22 WEEKLY SUMMAI~Y Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 SE~I~E`T Costa Ftican President Isolated Politically A chorus of opposition to the establshmen# of a Soviet presence has developed, as have signs of more general opposition to President Figueres' personalist government. With the Soviet ambassador expected to ar- rive at any time, pressure is mounting for Figueres to withdraw his approval of a Soviet mission in San Jose. Although right-wing groups have been sniping at Figueres ever since he began commer- cial and diplomatic dealings with the USSR, fear that Costa Rica's traditional democratic institu- tions will be undermined by sophisticated subver- sive activity has spread to a wide spectrum of the society. The official publication of the Catholic Church has expressed concern aver the political disruption that might follow the Soviets' arrival and has joined the conservative Free Costa Rica Movement in its call for a plebiscite on the issue. The opposition now has extended to the paint that Figueres is isolated in his desire to remove Costa Rica from the small company of nations in Latin America without diplomatic ties to Moscow. His two vice presidents have pub- lished a letter attempting to remove themselves from responsibility for the Figueres' policies, with which they disagree,. and his National Liberation Party (PLN) leaders have strop I criticized Figueres' performance. Even the coffee growers association, 25X1 whose members stood to gain financially from anticipated Soviet coffee purchases, this week voted against the government position on diplo- matic relations with the USSR. The coffee grow- ers evidently read the broad anti-Soviet sentiment as an overwhelming impediment to a sale fo the Soviets, because the barter-rather than cash-de- sired by Moscow requires legislative approval. Figueres' policies frequently have been at odds with general PLN positions, and the Presi- dent regularly pursues his own course without consulting party or cabinet officials. His treat- ment of the PLN as a "family club" has left deep resentments and divisions in the organization. PLN Leaders have decided to put their internal crisis on ice until next month, when they will meet to hammer out suggestions for a cabinet overhaul and a working arrangement with the President. rarity dissipated. These political difficulties, combined; with the poor prospects that the Central American Common Market can be revived and the deteriora- tion in Costa Rica's monetary and balance-of-pay- ments situa#ians, have made for a tense period. A final vote is due in the assembly this week on the highly controversial constitutional amendment that would permit the Communist Party to func- tion legally. If the amendment is defeated as ex- pected, some of the political heat may be tempa- Haiti : Under New Mana~gernent President-for-Life Jean-Claude Duvalier con- tinues to display an acute and practical intelli- gence in his conduct of foreign and domestic policy. From the government's inauguration on 22 April to the dedication of the Peligre hydro- electric project on 22 July, the administration has honored its debt to Papa Doc while departing markedly in style from that associated with the dead dictator's regime. The welcome extended to the world press at the beginning of the new government continues in force. Definite but dignified overtures to foreign investors and requests for foreign aid have been SE'~~E~' Page 23 WEEKLY SUMMARY Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 ~7r,l~nL, 1 made. The conditional amnesty for exiles ap- pears to be both an open invitation to expatriates to return and a firm warning to those dedi- cated to Duvalier's over- throw to keep their dis- tance. Young Duvalier is seeking to profit from the more positive aspects of "the Duvalier revolu- tion" engineered by Francois Duvalier while at the same time dis- sociating the new government from the uglier aspects of his father's regime. Prime examples of the new look are the apparent downgrading of the National Security Volunteers (VSN), an instru- ment of intimidation and local control used by the IatE: dictator, and Justice Minister Andre Rousseau's speech at the Estates General, in early July, in which he criticized excesses of the past. Th~~ dangers inherent in an essentially col- legial government nominally headed by a young and inexperienced chief executive are obvious, but the decisiveness and cohesion displayed thus far suggest that the participants are not yet in- clined to pursue their individual ambitions. The governrrient's durability may be increased by the lack of .any realistic alternative, by the unexpect- edly permissive atmosphere, and by the govern- ment's ,avowed interest in social and economic development. Uruguay's Leftist Challengers Off to a Fast Start The new leftist coalition, the Frente Amplio, has dominated the political spotlight through the early months of the campaign leading to the gen- eral elections in November. The left's free-spend- ing campaign is designed to portray the coalition as a serious electoral threat and, although it has not yet been confronted with full-scale counteref- forts by the major parties, it continues to main- tain considerable momentum. With the Colorado and Blanco parties still occupied with internal squabbles, the Frente's high-profile campaign has received the lion's share of publicity. By early July, Frente presidential candidate Seregni had visited all 19 departments in the country. This campaigning, along with his wide-ranging activities in the capital, is designed to portray Seregni as a credible national candi- date. Thee Frente strategy is straightforward: por- tray itself as a popular, realistic alternative to the traditional party structures that, through their century-long political domination, have brought terrorisrn, corruption, and economic decline. The Blanco and Colorado counterstrategy is to por- tray the Frente as an upstart, Communist-led at- tempt t~~ undermine Uruguay's democratic politi- cal structure. The Blancos and Colorados have yet to oppose the Frente campaign in force, however. For example, what is probably the strongest fac- tion of the Colorado Party, List 15, will not choose its presidential candidate until after its internal elections in mid-September. Meanwhile, the Frente campaign is in high gear and suffering from no lack of funds, It seems probablE;, given the destitution of other Frente SECRET Page 24 WEEKLY SUMMAf2Y Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 J~.Ll'~L~ 1 members, that the Communist Party of Uruguay (PCU) is supplying most of the finances for the Frente effort, which includes a large dose of radio and TV publicity.. The "democratic forces" within the front-the Christian Democrats and the Colorado and 131anco dissidents-maintain #hat they will control the coalition. However, It is the PCU, and to a lesser extent a political group associated with the terrorist National Liberation Movement, that, is concentrating on basic organ- izational activities. Seregni also has demonstrated considerable skill in identifying the Frente with opposition causes. Frente legislators are strongly supporting the current congressional effort #o impeach Presi- dent Pacheco for overstepping his authority, an attempt that has cleared the Chamber of Deputies but seems likely to fai6 in the Senate next week.. After a student death during a confused alterca- tion involving police last Saturday, a Frente declaration held the government responsible, and the coalition unsuccessfully attempted to inter- pellate the minister of interior over the incident. Public opinion polls in May showed the Frente running even or slightly ahead of the tradi- tional parties in Montevideo. Such a performance Imo' 'This dog (leftist Fronte Arnplw coalition) is nine years old . ,_ . - lsn'l he called Fll)EL? (nine-year-old Communist political group) --0f course ...it's the same dog, but with a different collar. has buoyed Frente supporters' hopes and: they now predict they will capture the mayoralty in the capital and contend they have a real chance of winning the national elections. Such claims have yet to be tested by a concerted apposition cam- paign or by expected anti-Frente administration efforts, however, and even at this early date they appear exaggera#ed. SECRET Page 25 WEEKLY SUMMAR1r 30 Jul 7I Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3 Secret Secret Approved For Release 2008/04/30 :CIA-RDP79-00927A009000010001-3