LETTER TO WARREN A. TREST FROM B. DEFELICE

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CIA-RDP87-00181R000200450008-0
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RIPPUB
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S
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83
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December 22, 2016
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November 19, 2010
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8
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July 25, 1984
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LETTER
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Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 ,4t4~~ a94- ?-A~ Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Iq Next 3 Page(s) In Document Denied Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 s B ECTs (0 I) (Officer designation, room number, and bu ins) 101 12 13 14l is, DDi O G lG un PIMA= Ma 610 3e 0 9th/ L. u AQO-O. 'lei 1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 ROUTING AND RECORD SHEET D DlJ1Ois/C KD STAT STAT STAT Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Iq Next 5 Page(s) In Document Denied (b)(4) Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 - 16 April 1965 OCI No. 0285/65 Copy No. `; ri t WEEKLY SUMMARY CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE RETURN TO RECORDS CENT II DIATEZY AFTER USS, . JOB ,. `j BO= SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 . a 0 SECRET CONTENTS (Information as of 1200 EST, 15 April 1965) and Moscow all responded negatively to VIETNAM Hanoi, Peiping, ' speech, although Soviet of- fcicials nt ad Johnson' s acknowledged 7 Privately that the speech was "at f least an advance." While China has rebuffed all over- tures for negotiations, the North Vietnamese premier in a speech last week seemed to be suggesting some flexibil- ity on Hanoi's part. The DRV meanwhile is exhorting its people to mobilize themselves to meet the "newdsit- uation and tasks." In South Vietnam, the presence of elements of a regular NorthiViet amese division has mounted. Viet Cong slightly last week, particularly in the northern provinces. THE COMMUNIST WORLD for only 5 percent o The death last wee reduced party central committee membership to 1 , from 194 in 1958. No members have been addnd,tsomee 50 of the survivors are Ill or out of favor, are increasingly susceptible to diseases of age. COMMUNIST WORLD'S ECONOMIC RELATIONS WITH AFRICA s 1958 when the Communist countrie their Since ble economic aid program in Africa, they made a cre more than me t biThe?USSR anddChinaits m m_ ie dtaary assistance. Although the Communists now account military Africa's total trade their share THE BERLIN SITUATION Berlin Since last week's harassment of rthreattto Allied athe ccess Bast Germans have avoided any new ands designed to imp cess but continue to issue propag with on West Berliners that hheavilyeon Communistegood will. the outside world depend 8 EAST-WEST EUROPEAN ECONOMIC COOPERATION taking advantage Both East and West European colitical~independ E ence in of tee trend re greater ways to expand trade through Eastern Europe, , toward new cooperative economic arrangements. 9 BULGARIA IMPROVING RELATIONS WITH BALKAN NEIGHBORS ian- Since last July, when a general settlement of Bulgarari n Greek problems was negotiated, Sofia has been promot both political and cultural contacts with its neighbors. 10 THE DWINDLING CHINESE k1 politburoBmember KO Ching-shidh is growing. 16 Apr 65 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page i Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET O ASIA AFRICA Page SUKARNO'S POLICY EDGING CLOSER TO COMMUNIST OBJECTIVES 11 He has warned the army that Indonesiats enemies are the neocolonialists rather than the Communists, and has fur- ther discouraged domestic anti-Communist activities. THE SITUATION IN LAOS The Communists are making a major effort to keep open supply arteries, while a new series of low-level polit- ical talks is scheduled to start next week. PAKISTANIS FOREIGN POLICY UNDER AYUB AND BHUTTO Pakistan's fears of India continue to dominate its for- eign policy. In an effort to gain support against New Delhi, Pakistani President Ayub and Foreign Minister Bhutto have set an increasingly independent course in international affairs. Ayub probably views his official visit to Washington on 26 and 27 April as an opportunity to balance his cultivation of Communists and neutralists. SENANAYAKE GOVERNMENT TAKES OVER IN CEYLON The coalition apparently faces no early threat, but its composition reflects conflicting communal and economic interests and will be a source of continuing difficulty. KENYA'S PRESIDENT HEADING FOR SHOWDOWN WITH PRO-COMMUNISTS 14 The breach between Kenyatta and pro-Communist Vice Pres- ident Oginga Odinga has been widening for several months, and the President now seems convinced he must act. NOTES ON CONGO AND SUDAN The Congolese Government's military position continues to improve throughout the country, and elections are proceeding without violence. Sudan's transitional re- gime has set 21 April as the date for elections to in- stall a permanent government. EUROPE US INVESTMENTS IN EUROPE The Gaullist hue and cry about a so-called invasion of Western Europe by American capital seems to bo leading Europeans generally to look for some way of dealing with the issue through united action. Accordingly, Common Market institutions will probably be called on to play a leading role in finding a solution. In most of Western Europe, sentiment in favor of US investmert still more than outweighs opposing attitudes and, except in France, SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 25X1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET EUROPE (continued) Page FRANCE AND THE EUROPEAN SPACE PROGRAM 16 The French have withdrawn a proposal that the European Launcher Development Organization scrap its original program in favor of a more advanced effort, but they may still deal ELDO a mortal blow by deciding henceforth to concentrate on developing their own launcher. REORGANIZATION OF SPAIN'S STUDENT ORGANIZATION 16 A 7 April decree reorganizing the Spanish University Syndicate has brought a lull in student agitation by removing the immediate irritant stemming from regime appointment of syndicate officials, but is qualified enough to preserve the status quo effectively. WESTERN HEMISPHERE SPLIT IN BRITISH GUTANA'S GOVERNMENT NARROWLY AVERTED 17 A quarrel between Premier Burnham and Finance Minister D'Aguiar, who head the two parties in the government coalition, threatened to bring down the government until a compromise was reached. The long-run outlook is for more such confrontations. ECONOMIC IMPLICATIONS OF FORTHCOMING OAS CONFERENCE 18 Included on the agenda is an examination of the opera- tions and the future of inter-American economic and social organisms, including the Alliance for Progress. Set for Rio de Janerio on 20 May, the conference will be the first meeting since 1954 of the Organization of American States' highest organ, the general conference. VENEZUELAN AUTHORITIES ARREST SUBVERSIVES OF RIGHT AND LEFT 19 The Venezuelan Government is exploiting, both domesti- cally and abroad, the interception of clandestine funds destined for the Communist Party as well as the arrest of a newspaper publisher accused of plotting, with ac- complices of both right and left, to overthrow President Leoni. EXTREMIST EFFORTS AGAINST PANAMANIAN GOVERNMENT The escalation of a minor strike by provincial sugar workers into demonstrations and a general strike in the capital seems to have been the work of a combination of extremists subject to influences from a number of sources, including Cuba and Communist China. The incident seems also to be furthering the athbitions of lawyer-politician Carlos Zuniga to organize a leftist-labor coalition. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page iii Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Hanoi, Peiping, and Moscow all responded negatively to Presi- dent Johnson's 7 April speech. Mos- cow's characterization of the speech as a "maneuver" was the mildest propaganda reaction; Hanoi and Peiping called it "hypocrisy" and a "swindle." In private con- versations Soviet officials took a slightly less negative line, acknowledging that the speech was "at least an advance." Navy F4B Phantom jet fighters, en- gaged in an offshore high-altitude patrol prior to the strike on 9 April, were attacked by four Chi- nese Communist MIG fighters some 35 miles southwest of Hainan Is- land. One MIG was shot down, prob- ably by an air-to-air missile. One Navy fighter failed to return. DRV Political Developments Within South Vietnam, evi- dence indicating the presence of elements of a regular North Viet- namese division has mounted. Viet Cong activity picked up slightly last week, particularly in the northernmost portion of the coun- try. In the North, the Hanoi re- gime exhorted its people to mobilize themselves to meet the "new situa- tion and tasks" which have arisen. Both US and South Vietnamese aircraft continued their bombing and armed reconnaissance over North Vietnam during the past week. Strikes were conducted on five days. Five bridges were virtually destroyed, and several radar sites which had been struck on 31 March were further damaged. Results of the armed route reconnaissance were generally limited, possibly as a result of Hanoi's directive that all vehicles travel at night or with an aircraft lookout if day- time travel is essential. The week was also marked by the first engagement of US air- craft by Chinese Communist fighters. Hanoi continued its efforts to mobilize its political, economic, and military apparatus to meet the "new situation and tasks" which re- gime leaders say have arisen as a result of the continuation of US military pressure. This was the main trend evident at the semian- nual session of the National Assem- bly held from 8 to 10 April. Deputies at the session were ordered to spread the word that the government is determined to rally the populace to the defense of the DRV, to the exertion of greater economic effort, and to the "active support" of the insurgency in South Vietnam. The assembly delegated to its standing committee-- the normal hub'of its operations-- a number of "new powers necessary to make state operations suit" the new situation. This move was prob- ably intended to further party con- trol over government operations. The assembly also put the stamp of legality on recent regime moves to strengthen the armed forces, voting to amend military laws to increase the "fighting power" of the military. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Continued regime concern with sustaining popular morale under the strain of the air strikes was evident at the assembly session. Considerable stress was put on the unity of the government with the party and its policies. Repeated attention was given to phrases manifesting determination to con- tinue to fight US "imperialism" to tae end and to support the war effort in the South despite US military pressure on the DRV. Ho Chi Minh claimed in his speech that although the session met in a tense atmosphere, it was filled with "high spirits and the utmost confidence." Aside from the trend in Hanoi propaganda, evidence of the effect of the air strikes during March and April on public morale is still sparse, in Hanoi report a -fairly re axed atmosphere" in early April, although they see a suggestion of greater "anxiety" in official statements and press comment. A fundamental conviction of a US col- lapse and a favorable outcome of the struggle is still reflected on all sides, according to this re- port. Another report on morale was recieved last month. The gloomy and d one of his contacts among officials strengthened his ear er impression that the US air strikes were "seriously" af- fecting morale. however, suggest that strikes the people have been little affected. also indicate that regime propa- ganda has been effective in convincing the populace that heavy losses have been dealt to the attacking aircraft. Hanoi's propaganda on the President's 7 April speech la- belled ita "deception," and said that the President's proposal for unconditional talks was "hypoc- risy." Although,. DRV leaders have made it clear that military attacks on the DRV must cease before negotiations can be even considered, they have not di- rectly addressed themselves to the subject of starting talks, and still continue to speak mainly in terms of an over-all settlement of the "Vietnam ques- tion." In this vein, party chief Ho Chi Minh last week put the 25X1 routine Hanoi demands for US 25X1 withdrawal from South Vietnam and the settlement of the Viet- nam question by the Vietnamese people themselves in the context of preconditions which must be "carried out" before any inter- national conference can be called. Premier Pham Van Dong spelled out essentially the same conditions in a speech to the National As- 25X1 sembly. However, he put them in 25X1 terms of a "basis" which must be 25X1 "recognized" before a Geneva-type conference could be held. Dong's 25X1 use of the word "recognized" may have been designed to imply greater flexibility on the part of the DRV. In either case, the basic demands on the US do not 25X1 appear to have changed. Hanoi I seems to be saying that any in- 25X1 ternational talks on Vietnam will be merely for the purpose of put- ting the stamp of approval on a 25X1 Communist victory in South Vietnam. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 2 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Peiping is continuing its hard line on Vietnam and has rebuffed all overtures for ne- gotiations. President Johnson's 7 April proposal for uncondi- tional talks was dismissed in the 11 April People's Daily as a "big swindlea. "hoax" requiring the unconditional sur- render of the South Vietnamese "people" to the "US imperial- ists. " China has not formally replied to the nonaligned na- tions" appeal but has made clear its lack of enthusiasm. In the meantime Peiping has rebuffed efforts by the British and UN Secretary General Thant to explore the possibility of a negotiated settlement. The Chinese formally rejected Lon- don's proposal for a visit by Patrick Gordon-Walker as "incon- venient and unwelcome." Peiping has charged that the 9 April engagement between US and Chinese planes near Hainan Island was a "deliberate mili- tary provocation against China" on the part of the US. Chinese newspapers have subsequently published photographs portraying what is claimed to be the wreck- age of a US air-to-air guided missile and an auxiliary fuel tank allegedly dropped by US aircraft while overflying Hainan Island on 9 April. Except for the almost pro forma warning that the US must bear responsi- bility for the "serious conse- quences " of this action, how- ever, the Chinese have made no threats of retaliation. Although there has been no official Soviet reaction to either the nonaligned nations' appeal or President Johnson's 7 April address, Soviet propa- ganda has stressed that there has been no change in US policy and that the US is actually ad- vancing preconditions for ne- gotiations. Pravda characterized the President's speech as a "maneuver" to placate public opinion and US allies and reit- erated that negotiations are impossible as long as the US air strikes continue. The Soviet press also ridiculed the proposal for an economic develop- ment plan in Southeast Asia. In private conversations, however, Soviet Foreign Minis- try officials acknowledged that the President's speech "was at least an advance.' In a talk with Ambassador Kohler on 8 April, Deputy Premier Polyansky denied'that the USSR had re- jected negotiations out of-hand and asserted that Moscow favors peaceful negotiation of all in- ternational disputes,. including Vietnam. The Soviet leaders' desire to hold the door open to some form of eventual talks without breaking openly with Hanoi was also reflected in their proposal on 8 April for an immediate international con- ference on Cambodia. Hanoi and Peiping had already publicly SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 3 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET endorsed the mbboddian appeal of 15 March. a conference on Cam- bodia would provide an oppor- tunity to discuss Vietnam and possibly Laos. Meanwhile, the Soviets con- tinue to assert that military equipment now is on the way to North Vietnam. They told Pakis- tani President Ayub last week that transit difficulties with China have been resolved and implied that Soviet military personnel are being sent to North Vietnam. A Soviet diplo- mat told a US Em- bassy on 9 April that if the US continues its present actions in Vietnam, Soviet "so- called volunteers" would almost certainly be dispatched to North Vietnam. He claimed that the Chinese had acknowledged the need for Soviet assistance to Hanoi and were no longer imped- ing shipments of arms and rock- ets. The Soviet diplomat warned several times that although the USSR understands the problems facing the US, Moscow can "no longer stand by and watch your aggression against a socialist state." Military Developments in the South Evidence that elements of a regular North Vietnamese di- vision are in northern South Vietnam is increasing. A report 16 Apr 65 confirm information 25X1 25X1 25X1 that the 101st Regiment 25X1 of the 325th Division infiltrated into Kontum Province in February of this year. 25X1 the regiment is supposed to 7 X1 take over the provincial capi- tal during the rainy season. Viet Cong activity picked up slightly last week, even though combat results generally favored the government forces. Communists appear to be inten- sifying their operations in the northernmost part of South Viet- nam, while possibly positioning to step up activity in the cen- tral highland and southern prov- inces. During the past week, the Viet Cong launched coordinated mortar attacks on three targets, including an American advisory compound, near the capital of Quang Tri Province, which bor- ders North Vietnam. At the southern border of Quang Tri Province, a government armored column sustained heavy casual- ties when it was attacked by an estimated two Viet Cong bat- talions.on 13 April. Recent captured documents indicate that sizable Viet Cong units are concentrating in a guerrilla "war zone" about 50 miles north of Saigon, where they would be in a position to SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 4 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET launch actions against Bien Hoa, Tan Son Nhut, or Ben Cat air- fields. A new Viet Cong regi- ment, forming in Tay Ninh Prov- ince to the west, is believed by US military authorities to be approaching operational readi- ness. New fighting, largely at government initiative, was re- ported during the week around Ban Me Thuot, the capital of Darlac Province in the central highlands, while along the cen- tral coast, South Vietnamese marines in Binh Dinh Province continued to fight off probes by a probable Viet Cong battalion in the area. There have been some indica- tions that several recent govern- ment military successes, coupled with intensified air strikes, may have disrupted some Viet Cong military timetables. The Viet Cong nevertheless retain the capability of accelerating the pace of their attacks well beyond the reduced levels of re- cent weeks. Political Developments in soufFT a nam Last week's naval mutiny in Saigon, which led to the replace- ment pending military inquiry of naval commander Admiral Cang, has raised military con- cern over a possible precedent for junior officers to take matters into their own hands. In addition, the suspension of Cang and Saigon area com- mander General Dong~ Catholic fears o fa Buddhist- inspired military purge. Cang is Catholic, and Dong had re- acted firmly to Buddhist street agitation against the former Huong government. Premier Quat, who regards General Dong as a troublemaker, now hopes to carry out a major command reorganization to bring the military under tighter civilian control. His plans, which would leave only one Catholic officer in a top com- mand post, risk a serious Catholic reaction if not even- tual opposition of the military in general. Although it is possible that the views of the Buddhist heirarchy have influ- enced Quat's thinking, the Buddhist clergy continues to refrain from open political ac- tivity except for the further promotion of anti-Communist themes among their followers. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 5 25X1 25X1 25X1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET The Communist World THE BERLIN SITUATION Since last week's harass- ment of traffic to Berlin, the East Germans have avoided any new threat to Allied access. For the moment, the regime seems intent only on impressing on West Berliners that their freedom and commerce with the outside world depend to a large extent on Communist good will and that the GDR will not toler- ate so tangible a demonstration of West German interest in the city as the Bundestag meeting of 7 April. At a press confer- ence in East Berlin on 12 April, officials of the regime-domi- nated National Front warned that there would be an immediate re- sponse if the West German Bund- esrat were now to meet in West Berlin or if the city were the setting for any political ac- tivity of a "provocative" na- ture. Although regime spokesmen were careful at first not to link last week's Soviet-German military exercises or the harass- ment of access to the Bundestag meeting, since 9 April they have boasted that events "have made it clear who makes the de- cisions on our autobahns and roads." In this vein, the of- ficial East German news agency rejected out of hand Mayor Brandt's proposal for interna- tional control of the access routes, describing it as "out- SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 6 dated and unrealistic" and "an attempt to interfere in the GDR's internal affairs." In an editorial published on the first day of the Easter- tide pass visits, Neues Deutsch- land disclosed that est- l rs who cross over to see relatives during the current pass agreement will encounter heavy propaganda directed against West Berlin - West German po- litical ties. The party paper echoed earlier warnings by the regime that the Bundestag ses- sion will have "serious conse- quences" for renegotiation of the pass agreement, which it suggested may be postponed from June until after the West Ger- man elections in September. This suggests that the East Germans hope to exact from the West Ber- lin Senat as the price for re- negotiating the agreement a pledge not to play host to West German political meetings or permit any expansion of the Federal Republic's presence in West Berlin. Pankow probably judges that its chances of get- ting such a commitment this fall will be far greater than they would be during an election cam- paign in which Mayor Brandt and other West Berlin leaders of the Social Democratic Party (SPD) are to play so prominent a role. Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET West Berliners and West Ger- mans seem to feel that having the Bundestag meet in West Ber- lin was worth the inconvenience and harassment and that it rein- forced the city's ties with the Federal Republic and underlined the hope for eventual reunifica- tion. Bundestag President Ger- stenmaier has taken the position that the Communists will resign themselves to such parliamentary sessions if they are held often enough, perhaps twice a year. There has been some public criticism of the failure of the Erhard government and the Allies to react more vigorously to Com- munist encroachments on access. The chairman of the Berlin branch of the SPD complained that the United States should have put a stop to the Commu- nist "antics," and West German Vice Chancellor Mende, leader of the Free Democratic Party, found the Allied response inade- quate. Mayor Brandt, who has ex- pressed satisfaction with reac- tion of the Allies, has voiced some concern over the psycholog- ical effects which the harassment may have on Berlin's economic life. He fears that West Ger- man investors will re-examine the advisability of committing funds to the city's expansion in view of the renewed demon- stration of the vulnerability of its land routes to the West. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 7 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET The Communist Worl EAST-WEST EUROPEAN ECONOMIC COOPERATION Both East and West Euro- pean countries are seeking ways to expand trade through new cooperative economic arrange- ments. The most sweeping of these--the recently publicized proposal by the West German Krupp combine to couple its capital and technical and managerial skills with Polish labor and raw materials--will probably be modified in the course of current negotiations. The proposal, however, suggests the growing complexity and range of the many current ef- forts at cooperation. Programs already in opera- tion, however, include not only licensing and subcontracting arrangements (see inset) but also joint construction proj- ects., Current proposals add joint management of enterprises to be built in East Europe. SOME EXAMPLES OF EAST-WEST EUROPEAN ECONOMIC COOPERATION Poland-Belaium-Sweden: Economic cooperation pacts calling for joint production of equipment for third countries, exchange of technical know-how, joint industrial training, and consulta- tion among industrial experts. Poland-Rumania-Hungary-West Germany: Proposed West Ger- man investment of capital and managerial skill in bloc indus- trial enterprises. Programs Already in Operation Czechoslovakia-UK: Semifinished British textiles finished in Czechoslovakia and re-exported. Hungary-Finland: Jointly owned agency to market Hungarian electrical goods in Finland. Yu o lovia-Italy: Production under Italian license of Fiat auto- (esmob I in Yugoslavia for sale in Eastern Europe. HHuurngaUUK: Jointly produced tractors, using British engines and Hungarian bodies. 6M13 s These moves toward in- creased economic cooperation are taking advantage of the trend toward greater political inde- pendence in Eastern Europe. Furthermore, East European countries are dismayed at the lack of progress in intrabloc cooperation, and are thus look- ing to the West for ways to further their technological ad- vance. Nearly all the recent in- novations stimulate East Euro- pean hard-currency earnings, through new exports. Moreover, the market for goods produced under Western license is en- hanced by the established rep- utations and marketing know-how of the Western firms involved. In addition, production-sharing pacts, under which the Western supplier of a factory takes a portion of its production as repayment on his investment, en- able Eastern European countries to acquire technology and ad- vanced equipment without adding substantially to their already considerable medium and long- term indebtedness to the West. A group of Belgian business- men has just visited Poland to discuss new joint efforts. West Europeans looking for new export markets see in Eastern Europe a significantly rising demand for their output of heavy industrial machinery, and many believe that East Europe's limited ability to generate new exports for West- 25X1 ern markets can be improved. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY d Page 8 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET BULGARIA IMPROVING RELATIONS WITH BALKAN NEIGHBORS Bulgaria last July nego- tiated a general settlement of its problems with Greece, and since then has been promoting political contacts with its other Balkan neighbors. This campaign to break out of its heretofore isolated position is making some progress. In the long run, these new contacts are more likely to work changes in Bulgaria than in the states with which it is dealing. Con- tinuing contact with the inde- pendent Communist states of Ru- mania and Yugoslavia and the in- flux of ideas from Greece and Turkey may eventually encourage Sofia. to loosen its ties with Moscow In late January Yugoslav Foreign Minister Popovic visited Sofia for three days. While not enthusiastic about his visit, he was "satisfied," according to Yugoslav officials in Sofia. The visit was symbolically im- portant and was closely followed by a number of agreements, such as the abolition of visa require- ments between the two countries. In a recent demarche to Turkey, the Bulgarians proposed an early meeting to seek agree- ment on specified major outstand- ing problems. On a lower political level, Sofia's "mayor" visited Athens in mid-January and extended an invitation to the mayor of Athens to visit Sofia this May. The mayors of the port cities of Varna and Piraeus will exchange visits in the near future. Bulgarian efforts to pro- mote Balkan rapprochement have been particularly active in the cultural sphere. Sofia is trying to establish a league of Balkan writers. Plans have been made to hold an annual noncompetitive Balkan Film Festival. Artists from other Balkan countries are being invited to the opening of Bul- garia's Jubilee National Art Exhibition. Recently a con- ference of Balkan, Adriatic, and Cypriot students was held in Sofia. Proceedings of the Balkan Committees for Peace and Under- standing, which are scheduled to meet in Athens in early May, may well provide an indication of the success of the Bulgarian campaign. Past meetings have foundered when Bulgaria and Rumania have called for a Bal- kan summit conference which Greece and Yugoslavia have in- sisted must be preceded by bilateral resolutions of out- standing problems. This con- dition appears now to be largely accomplished or on the way to accomplishment except in the case of Albania--whose attend- ance of past meetings has been blocked by Greece and Yugosla- via. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 9 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET The dwindling ranks of Communist China's top leader- ship suffered another loss with the death on 9 April of politburo member Ko Ching- shih. Full and alternate mem- bers of the party central com- mittee now number only 181, down from the full strength of 194 reached in 1958 when ad- ditions were last made. Of the 181 surviving, 16 are known to be out of favor and 33 oth- ers have not made public ap- pearances in six months or more, probably in most cases because of poor health. The leaders of Communist China are men in their sixties and seventies. They are in- creasingly susceptible to diseases of age and increas- ingly dominated by narrow, in- flexible views. These charac- teristics make them more prone to unreasonable behavior, while tending to sap their effective- ness in managing the party and government apparatus. Suspicious of almost every- one outside their own shrinking circles, Chinese leaders have been insisting on an ever tighter hold over the levers of power. NCNA has been put under the rigid control of the party central committee, which now makes all assignments, even down to interpreters. There is reason to believe that a similar situation exists else- where in the government, al- though perhaps to a lesser ex- tent in domestic agencies than in NCNA, whose employees are exposed to foreign influences. Leadership distrust ex- tends down into the lower ranks of the party. Last winter the central committee ordered a mas- sive campaign to eradicate cor- ruption at this level. A secret party document declared that this was a "shameful and serious problem," brought about by a lack of revolutionary spirit. There have been several reports in recent months that Mao Tse- tung has been personally railing against the "ideological bank- ruptcy" of rank-and-file party members and low-level government officials. Although the regime often speaks of the need to pro- mote younger men, Mao's profound distrust of them has been a bar to any delegation of real power. Moreover, the prospect for change in the near future is slim. Replacements for Mao and his in- ner circle of immediate lieuten- ants would presumably be drawn 25X1 from the present shrinking central 25X1 committee, which is exclusively composed of old-guard revolution- aries--men who seem to be just as dogmatic and hostile to the US as SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 10 25X1 25X1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Asia-Africi SUKARNO'S POLICY EDGING CLOSER TO COMMUNIST OBJECTIVES In two recent speeches to army and government leaders President Sukarno has defined Indonesian policy in a way that comes close to meeting Communist Party objectives. Party chair- man Aidit recently commented privately that he viewed Indo- nesia "in a very favorable revo- lutionary situation." At a seminar of top army leaders last week, Sukarno in- structed the essentially anti- Communist army to redirect its strategic planning and political orientation. He reminded the officers that Indonesia's enemies are not Communist China and the Soviet Union but the "neocoloni- alists," including the US. During the same seminar, army commander Jani stressed the need to integrate the peo- ple into the "fighting front." This suggests increasing empha- sis on the program recently in- augurated to arm workers and peasants, whom the Communists have already partially organized. In Sumatra, where the program has started, the Communists have it well penetrated. In a speech on 11 April to the Consultative Assembly, made up of top politicians, Sukarno announced that the "national democratic" stage of the Indo- nesian revolution was almost complete and that the country had already entered the stage of "Indonesian socialism." In effect he told the non-Commu- nist parties to halt their anti- Communist activities and com- plained of hypocrites lacking in the spirit of true "Nasakom" --a word Sukarno coined to de- scribe his goal of harmony among nationalist, Moslem, and Commu- nist elements. Two days later Sukarno an- nounced a purge of the leader- ship of a pressure group called the "Generation of 45" led by Third Deputy Prime Minister Chairul Saleh, who has been under strong attack by Indonesian Com- munists. Sukarno accused the organization, among other things, of competing with political par- ties and of opposing "Nasakom." Sukarno allowed Saleh to remain on the group's executive board, but added to it both Aidit and Jani, and directed it to create "a new policy and ideology." Communists have abided with Sukarno's ban on all demonstra- tions until after the 18-26 April celebration of the Bandung Afro-Asian conference. They are reportedly planning a new round of anti-American protests immediately following the confer- ence, however. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET The Communists are making a major effort to keep open supply arteries in widely sep- arated areas of Laos, while a new series of low-level talks among the three main political factions are slated to get un- der way next week. The Communists' military efforts include the rapid clear- ing of chokepoints near the Mu Gia Pass and farther south on Route 23, the apparent building of bypasses for bombed-out road sections, and the construction of new antiaircraft artillery sites protecting the pass. They seem to be succeeding; a 40- truck convoy was identified moving through the pass on 10 April. In the northeast, North Vietnam appears to be supply- ing advanced Communist posi- tions by air. Planes described as IL-14 transports were spotted last week dropping supplies to Communist positions in the hills north of Ban Ban. Hanoi has 14 to 18 of these planes. These flights may constitute a one- time response to a particular tactical situation, or presage more systematic aerial resupply efforts. Laotian harassment of key transportation points, coupled with the impending rainy season, are likely to make overland transportation increasingly difficult. On the ground, Communist forces are continuing to exert pressure against government units in the Na Khang area north of Ban Ban, and against pockets of guerrillas to the north- west in Phong Saly and Luang Prabang provinces. In the south, a build-up along Route 9 from Dong Hene to Pha Lane has been reported. The political talks prepar- atory to a meeting of the fac- tional leaders are now sched- uled to start on 19 April follow- ing Pathet Lao chief Souphannou- vong's agreement to Vientiane as a site. He had previously insisted on Paris. Chances for any meaningful accord remain dim, however.. Premier Souvanna, with conservative backing,prob- ably will continue to insist that North Vietnamese troops withdraw and that the Interna- tional Control Commission be guaranteed freedom of movement before any cease-fire. Souphan- nouvong, for his part, is cer- tain to oppose any proposals which would jeopardize Communist control of "liberated areas," especially key infiltration routes leading to South Vietnam. SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 12 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Ceylonese Prime Minister Dudley Senanayake has pulled together a widely diversified "national government" which com- mands 90-95 votes in the 157- seat lower house. He should have no difficulty in winning its first vote of confidence-- probably to be taken next week. The divergent attitudes of his present supporters will erode his support eventually, however, unless long-standing antagonisms can be held in check. Senanayake now depends for much of his parliamentary strength on Ceylon's Tamil- speaking Hindu minority. At the same time, he is trying to cultivate ultranationalists among the Sinhalese Buddhist majority, represented in the cabinet by the leftist minister of industries and fisheries, Philip Gunawardena. Senanayake's program attempts to balance con- flicting communal interests by assuring that Tamil religious and employment rights will be respected, while pledging "to restore Buddhism to its right- ful place" and instituting four new monthly Buddhist holidays. A critical rise in communal tensions, however, would force delicate decisions between con- flicting interests. The government is also do- ing a balancing act in dealing with the sagging economy. To stimulate growth, it promises to support private enterprise while maintaining undertakings already nationalized. The bus- iness community is concerned, however, over the key position given Gunawardena, one of the island's leading Marxists. His appointment may hold the sup- port of some leftist elements, however, and his strength in the labor movement--particularly among port workers--may prove useful in dealing with labor unrest. As a further stimulant for the economy, the government hopes to turn to the West for private investment and foreign aid, although British and Ameri- can assistance will be delayed until compensation is made for oil company properties expropri- ated three years ago. The new government's foreign policy statements uphold Ceylon's tra- ditional nonalignment, but there is definitely a friendlier at- titude toward the West. This was shown by the favorable re- action to President Johnson's speech on Vietnam and by Ceylon's earlier attempt to moderate the nonaligned nations', appeal on the Vietnam crisis. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 13 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET KENYA'S PRESIDENT HEADING FOR SHOWDOWN WITH PRO-COMMUNISTS Kenya's President Kenyatta, who tries to remain above fac- tional and tribal disputes with- in his government, has begun to demonstrate increasing concern about subversive elements and a willingness to take firmer ac- tion against them. As a result, he now appears to be heading for a showdown with the pro-Com- munist followers of Vice Presi- dent Oginga Odinga. Kenyatta has been reluc- tant to act against Oginga, his former ally, for fear of precipi- tating a tribal struggle, but the breach between the two has been steadily widening for six months. Since late March Ken- yatta has been tacitly encour- aging the efforts of a coali- tion of moderate ministers rep- resenting various tribes, in- cluding Oginga's Luo, to under- cut the vice president's power and influence. The resounding defeat on 2 April of two Oginga- backed candidates in a parlia- mentary election is said to have impressed Kenyatta with the ex- tent of opposition to Oginga. The February assassination of P. G. Pinto, the pro-Commu- nist mastermind and paymaster of the Oginga group, and the re- cent initiative of the moderate coalition has thrown Oginga on the defensive and left his forces in some disarray. His strength has proven less than was gen- erally believed, and two of his allies in the cabinet appear ready to jump on Kenyatta's bandwagon. His staunchest cabinet cohort, the information minister, has reportedly antagonized Kenyatta and may lose his portfolio. There have been repeated reports that Oginga and his ex- tremist cohorts are planning a coup, perhaps this month. Such an effort seems unlikely, how- ever, except as a desperate last stand. In a 10 April speech, Ken- yatta for the first time openly attacked an Oginga lieutenant, a Kikuyu who has been agitating against the government among Kenyatta's own Kikuyu tribe. Ken- yatta is incensed by this and may well encourage the man's arrest. Other ministers allied to Kenyatta have been stumping the country calling for "gen- uine" nonalignment--that is, not slanted toward the Commu- nists--and an end to "foreign subversion." Following a debate in par- liament in early April on an alleged plot to overthrow the government with smuggled Com- munist arms, the Kenyan Army seized several arms caches, in- cluding 500 submachine guns and 500 pistols, delivered by a Czech plane last fall, found in the basement of Oginga's of- fice. Oginga was briefly de- tained for questioning on 14 April SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 14 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET O Congo: The government's military position is still im- proving throughout the country. The mopping-up operation in the northeast continues; patrols are capturing transportation centers and rebel resistance is light. Remaining isolated pock- ets of rebels give no indica- tion of organizing counterat- tacks. In the eastern Congo, how- ever, rebels in the Fizi area again threaten Albertville, the capital of Nord-Katanga, report- edly having encircled army gar- risons on the major road along Lake Tanganyika leading into Sudan: The transitional coalition government has con- firmed that parliamentary elec- tions are to take place in the six northern provinces on 21 April. In the Negroid south, where the rebels remain active, the elections will be postponed indefinitely until civil order is restored and some agreement is reached on relationships with the central government. According to the present schedule, a permanent govern- ment is to be installed in Khartoum by 7 June. The gen- erally conservative Umma Party-- the political arm of the Ansar politico-religious brotherhood-- will probably win enough seats to control the government with the continued support of the urban National Union Party and the ultraconservative Muslim that province. Other insurgent groups continue to harass Uvira, to the north. The parliamentary and pro- vincial elections are proceed- ing without violence but with reports of widespread irregu- larities; final results, how- ever, are unlikely to be over- turned by the courts. Voting is closely following tribal lines, with support going to established leaders. As ex- pected, Premier Tshombd has received considerable backing from the Katanga provinces. Brotherhood. The Communists hope to establish a working minority in the parliament by winning a large share of the special seats reserved for uni- versity graduates. The leftist People's Dem- ocratic Party is still actively working for a postponement of the elections and has declared that it will boycott the polls on 21 April. Egyptian efforts to lure the National Unionists away from their coalition with the Umma have apparently failed. Traditional rivalries between these two groups, however, make prospects for any lasting co- alition remote at best j SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 15 25X1 25X1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Europe The French Government last week withdrew a proposal that the European Launcher Develop- ment Organization (ELDO) scrap its original program in favor of a more advanced effort. Paris' action was apparently prompted by opposition from the aerospace industries in France and other ELDO countries as well as by a more sober appraisal of the costs involved. Last January, the French criticized the original launcher --ELDO-A--as too costly and as inadequate in lifting capabil- ity. They asked ELDO to con- centrate on the ELDO-B, a more powerful follow-on launcher still on the drawing board. ELDO-B, they argued, could put heavy communications satellites into the desired high orbit and thus permit Europeans to com- pete with the US in this profit- able field. The reform of the Spanish University Syndicate (SEU) spelled out in an official de- cree promulgated on 7 April has brought a lull in student agita- tion. The reorganization has removed the immediate irritant stemming from government appoint- ment of top SEU officials, but it is unlikely to permit the kind of freedom the students ex- Although clearly advanta- geous to ELDO in the long term, the French proposal encountered general opposition, apparently because it would disrupt the existing allocation of effort among national industries and would require even larger out- lays of funds than does ELDO-A. Its withdrawal at a 7-9 April ELDO council meeting in Paris was followed by a vote to con- tinue construction of ELDO-A. ELDO's continued existence may still be in jeopardy, how- ever. Although the French are calling for greater European cooperation in scientific re- search and development, they may now concentrate on develop- ing a reliable satellite launcher for their own national program. This might deal ELDO a mortal 25X1 blow. pect. Indeed, some students have already complained about the lack of any student role in drafting the regulations imple- menting the decree. The government clearly in- tends to continue exercising strict control over the student organization. The decree it- self specifies that the SEU must SECRET 16 Apr 65 Page 16 ? Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Europe function according to the "funda- mental principles" of Spain's political and social life and that political activity outside the student organization will be considered incompatible with university activities. Also the regime will appoint a com- missioner, armed with extensive administrative powers, to pro- vide "liaison" between the stu- dents and the state. The decree on the SEU --like an earlier draft press law and a proposed law of As- sociations--is an example of the regime's tendency to offer proposals which seem to be concessions but which contain qualifications that effectively preserve the status quo Western Hemisphere A tax policy quarrel be- tween British Guiana's Premier Burnham and Minister of Finance D'Aguiar, which began in early April, flared up in larger dimensions last week end. Be- fore a compromise agreement was finally hammered out, D'Aguiar was on the verge of resigning. Since he heads the minority party in the government coali- tion, his withdrawal might have brought down the government. The controversy was re- kindled through a misunderstand- ing on the part of one or both men. In essence, it involved the degree to which Burnham was committed to endorse a D'Aguiar proposal to reduce or eliminate several taxes to stimulate greater private investments in the colony. SECRET 16 Apr 6.5 It seems clear that compe- tition for power and influence lay at the heart of the clash over taxes and that this rivalry led to the near showdown. D'Aguiar, who has made a number of concessions to Burham on other matters, evidently felt obliged to take a firm stand on taxes or be completely over- shadowed. 25X1 25X1 Now that Burnham and D'Aguiar have successfully weathered the first serious test of their partnership, the air probably has been cleared and the coalition at least tem- porarily strengthened. In the long run, however, the outlook is for more such confrontations. Page 17 25X1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Western Hemisphere The Extraordinary Inter- American Conference scheduled to open in Rio de Janeiro on 20'May will be the first meet- ing since 1954 of the Organiza- tion of American States' high- est organ, the general confer- ence. This meeting was called primarily to consider means to strengthen the inter-American system through organizational changes. Included on the agenda is an examination of the operations and the future of inter-Ameri- can economic and social organ- isms, including the Alliance for Progress. Brazil, along with Chile, seems to favor a new international agreement ",institutionalizing" multilat- eral hemispheric economic co- operation. This idea derives in part from a 1960 effort to link economic development with hemispheric security in order to obtain more US aid, although subsequent developments have obviated the justification for such an agreement. The Brazil- ians apparently contemplate ending the unilateral nature of the Alliance by persuading some of the more advanced countries to share the aid burden. Advocates of mandatory eco- nomic cooperation would like to have OAS economic activities consolidated under a new coun- cil, with the present OAS coun- cil retaining only a political role. The new body would be located in Latin America. Chile, moreover, contemplates a possi- ble third council devoted to culture and education. Chilean Foreign Minister Valdes has not only demanded the institutionalization of eco- nomic relationships but favors a more enduring US economic com- mitment to Latin America than the Alliance stipulates. For Chile, this is also related to the fundamental thrust of the Frei administration's foreign policy--the economic integration of Latin America implicitly under the leadership of Frei's Chris- tian Democratic Party. President Frei recently wrote four prominent Latin Amer- ican international economists asking their cooperation in the development of continental eco- nomic integration. In response, they drafted a study on the crea- tion of a common market which possibly would include Cuba. This insensitivity to US policy would reflect the tendency of the Christian Democrats and economic technicians to assign economic considerations priority over the political in working out their ideas for hemisphere development. Frei's initiative, however, drew a countersuggestion from Argen- tine President Illia, whose gov- ernment recommends accomplishing integration through the nine- member Latin American Free Trade Association. These currents will probably merge at the forthcoming OAS meet- ing where a formula on closer economic cooperation may be ham- mered out. Whether the form which increased Latin American economic unity and cooperation takes will help or harm US inter- ests remains to be seen SECRET 16 Apr 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 18 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 ---- SECRET Western Hemisphere VENEZUELAN AUTHORITIES ARREST SUBVERSIVES OF RIGHT AND LEFT The Venezuelan Government is exploiting, both domestically and abroad, the interception of clandestine funds destined for the Communist Party (PCV) as well as the arrest of a news- paper publisher accused of plot- ting,with accomplices of both right and left, to overthrow President Leoni. Extensive news coverage has been given to the arrest of three Communist couriers on 26 March who had in their posses- sion $330,000 allegedly for de- livery to the PCV. Interior Minister Gonzalo Barrios, in a news conference on 10 April, publicly displayed the money and asserted that the funds came by way of the Communist Party of Italy (PCI). The PCI has em- phatically denied this, but Vene- zuelan officials are sticking to their charge. 16 Apr 65 Some international aspects of the smuggling case have been touched on in public by the for- eign minister of Colombia. He claimed that the Venezuelan in- cident "coincided with decisions made during the recent meeting of Communist parties in Moscow." He also charged that one objec- tive of these decisions was to facilitate the overthrow of both the Colombian and Venezuelan governments. Capriles' group rightist plotters. Interior Minister Barrios, in his press conference, left the clear im- pression that the Communist couriers were somehow linked to On 9 April Venezuelan authorities arrested publisher Miguel Capriles, together with more than 50 of his supporters. Capriles, whose papers have been vehemently attacking the govern- ment, is charged with organizing and leading an insurrectionist movement. Among the prisoners are Communists, retired military officers, and several well-known SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 19 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 C SECRET Western Hemisphere Panamanian extremists have stepped up their drive to create a climate favorable to revolu- tionary action. Their latest effort has been the escalation of a minor strike of provincial sugar workers into a long march on Panama City, where they pro- moted mass rallies on behalf of the marchers as well as a fairly effective general strike in the capital. The exploitation of the provincial strike seems to have been part of a concerted drive by a combination of ex- tremist elements to stir pop- ular dissatisfaction with the government and the oligarchy. Among the most active agitators are members of the newly organ- ized Panamanian Revolutionary Union (URP). The URP is backed by a number of "hard-line" rev- olutionaries who are in contact with Havana and Peiping. Also actively involved are Moscow- oriented leaders of the regular Panamanian Communist Party and followers of ex-President Arnulfo Arias. Another aspect of the pres- ent situation is the prospect that Carlos Ivan Zuniga, an in- fluential lawyer-politician who has made a political career out of his profession as labor ad- viser, may be able to organize a leftist-labor coalition. Zuniga is generally recognized as the most effective member of the National Assembly, where his highly articulate perform- ance in that body has won him wide popularity among the lower classes as well as growing po- litical influence. Zuniga, who already con- trols the banana workers' union --Panama's largest--encouraged the sugar workers in their cur- rent strike and has become their legal adviser. He has negotiated on their behalf with President Robles, who personally signed the agreement. In addition to the probability that he won some benefits for the strikers, Zuni- ga's new position with their union will bring his influence into Panama's economically de- pressed central provinces where the Communists have been partic active SECRET 16 Apr 65 Page 20 25X1 25X11 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 T_" '~ Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE 25X1 25X1 SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET (Information as of noon EDT, 14 October 1965) VIETNAM Although there was a relative decline in large-scale military engagements in South Vietnam last week, the number of Viet Cong incidents reached the highest level in over a year amid indications that the Communists may be planning to step up their terrorist activity. The Communists are also nearing completion of considerable construction and improvement work on roads in southern Laos which will extend their infiltration routes into South Vietnam. The number of confirmed surface-to-air missile sites in North Vietnamreached 29 last, week, but it is estimated that the DRV has only enough equipment for six to ten of these. Hanoi has intensified its propaganda alleging US air strikes against civil targets. Page The Communist World UNANNOUNCED HIGH-LEVEL PARTY MEETING IN COMMUNIST CHINA 4 Recent regime pronouncements suggest that the leaders are frustrated by a wide range of foreign and domestic problems, and an important unannounced conference has apparently been under way since at least 27 September to discuss and act on them. WARSAW PACT EXERCISE IMMINENT IN EAST GERMANY Preparations for the announced Warsaw Pact exercise are virtually complete. Military activity in south- western East Germany is expected to accelerate in the next few days as Soviet, East German, Polish, and Czech forces deploy for the event. ANOTHER SOVIET LUNAR PROBE FAILS The increasing frequency of Soviet lunar probes sug- gests that the USSR is anxious to show some results from a program which has suffered badly in comparison with US lunar explorations. SECRET PAGE i WEEKLY SUMMARY 15 Oct 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 (0 SECRET ACCRA TO HOST AFRICAN SUMMIT MEETING Most of the 36 countries belonging to the Organization of African Unity will send high-level representatives, although some heads of state will not attend. African problems will be of primary concern, but some touchy East-West issues may also come up. TSHOMBE OUSTED IN THE CONGO 15 President Kasavubu's dismissal of Premier Tshombe al- most certainly presages a period of political turmoil and possibly violence. Moreover, Leopoldville still faces a long campaign to re-establish its authority in large rebel-infested areas, although mercenary forces captured the last major rebel stronghold last week. Europe SCANDINAVIA AND NATO Swedish Prime Minister Erlander's recent cautious al- lusion to the possibility of a Scandinavian defense pact raises the question of whether Norway and Denmark will continue their NATO membership after 1969 when they may opt to withdraw. Opinion in those two coun- tries will be affected as always by Soviet moves but also by how French NATO policy develops and by their latent fear of Germany as Bonn seeks a greater nuclear role in NATO. SECRET PAGE iii WEEKLY SUMMARY 15 Oct 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 0 SECRET to complete roads in southern Laos started in mid-1964. When the dry season arrives in a few weeks they will have more than 150 miles of roads flanking the South Vietnamese border to a point 90 miles south of the de- militarized zone (DMZ)--some 55 miles farther than a year ago. The general plan appears to be to extend Laotian route 92-- which parallels the South Viet- namese border at an average dis- tance of about 25 miles--to the vicinity of Ban Phone and to open branches from route 92 toward the border both with new construction and by upgrading existing trails. As of the end of September, the branches consist of one from Ban Phone completed to the bor- der, a second from Muong Nong com- SOUTHERN LAOS: Roads Built or Improved Snrrr Mid-1964 .; . P.k Hin Nho N? ' Q ..nt RM Boon , ..: ~ Mnt .khn MA.. ? M.h .. } Y Th.MMk sa 4 HOi \ \ D.-r..N.. L1.. ms Don{ H.n a H e ~.n o gAO Sfno TCM um QTri Mukd.Mri .v.nn.kh.t !.n Th.y gn . ? Hu. uon THA LAND S; .ex,: t Non! ?? ll ??? _ SOU 16 M yKTNAM u.n[ ~.T..othnn h g bb n. Be Th.t.ng r.... ~ ? l. oh> ) , luk.t Mmp } Ch.mpsak AttOMLL Rho `? 1. ?~~ '~ k !0 Nh.m ., Stunt 7- i CAMBODIA ? pleted to within five miles of the border. A third road start- ing from Ban Bac, in an early stage of construction, may also lead to the South Vietnamese bor- der. Development of route 92 and its branches is almost certain to be stepped up when the dry season arrives. This will probably in- clude the provision of more off- road support facilities and bridg- ing and the further extension of route 92 from the latitude of Saravane to Ban Phone, a gap crossed in 1964 by using large canoes on the Se Kong River.. More SAM Sites in the DRV 25X1 The total number of confirmed surface-to-air missile sites in North Vietnam reached 29 this week with the confirmation of seven new sites. Despite this in- crease it is estimated that at present there is only enough SAM equipment in the DRV to equip six to ten sites. The largest number of operational sites--those equipped with missiles and ready to fire--noted at any one time was five on 8 October. Many of the newly confirmed sites are in groups of two or three within a few miles of one another, prob- ably to make the most effective use of the available equipment. namese have taken over SAM opera- tions after only three months' training instead of the nine to SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 0 SECRET ? to twelve months normally re- quired. Alleged Bombing of Civil Targets Hanoi's propaganda charges denouncing alleged US bombing and strafing of civil targets in the DRV have recently been in- tensified. Part of the DRV cam- paign involved a guided tour of the damaged areas for a group of journalists from Japan, In- donesia, and the UAR. Initial reports from the newsmen de- scribe urban centers in the south- ern DRV as "virtually flattened," and claim "indescribable damage to civilian establishment" in- cluding over 40,000 dead from the raids. After a spate of new charges over damage to hospitals and other medical facilities, Hanoi on 12 October released a detailed list of 124 "educa- tional institutions" it claims were hit by US planes. Beyond the general inten- tion of arousing additional free world sentiment against the air raids it is not clear exactly what has sparked the heightened DRV propaganda charges. Hanoi may hope to provide some spe- cific detail-and background music for leftist and Communist spokesmen at a series of upcom- ing free world student protest demonstrations over US policy in Vietnam. In its declaration on the alleged bombing of schools, Hanoi called on "educational cir- cles in all countries" to launch a "powerful movement of protests." DRV Assembly Postponed Indicative of the problems caused in the DRV by the bombing is Hanoi's decision to "postpone" the upcoming fall session of its national assembly. The postpone- ment will allow state organs and cadres to concentrate on resist- ing US "aggression," according to Hanoi. The move probably also reflects anticipation of diffi- culties in transporting delegates to Hanoi and a reluctance to con- centrate many key cadres in one large assembly. Hungarian Mission to DRV A high-level Hungarian dele- gation led by politburo member Jeno Fock arrived in Hanoi on 7 October. The delegation, which included both economic and mili- tary specialists, met with party First Secretary Le Duan and DRV economic and military officials on 10 October. Hanoi described the talks only as an "exchange of views on problems of common in- terests." The full purpose of the visit is not clear. North Viet- nam relies on Hungary for some telecommunications and electronic equipment and may be seeking ad- ditional assistance of this type, probably for military purposes. It is likely, however, that the subject of a settlement of the war will also be discussed, with the Hungarians probably urging a policy of moderation. SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Lon )u1d ny Viet. rag. 3 )r- tly is- ,ny Nest Lndi- )lic So- ,in- 0 'en- we ;e )wn lcu- SECRET absent from their own areas in early October, when they normally preside over local National Day celebrations. This strongly sug- gests that the activity in Peking was unscheduled and possibly ur- gent. Any meeting at this time may have been triggered by for- eign policy problems, such as re- cent developments in Vietnam, China's role in the Kashmir crisis, and difficulties in ex- tending Chinese influence in Af- rica and Latin America. Foreign Minister Chen Yi's truculent and wide-ranging press conference on 29 September suggests that a de- cision had already been reached by then to take a generally harder line in foreign policy. The enlarged group meets so seldom that, once together, it would undoubtedly also con- sider domestic affairs, includ- ing personnel appointments. No change in domestic policies is evident yet, but the stress on domestic problems evident in Na- tional Day editorials and speeches suggests that new ap- proaches are being considered. Although these contained the usual claims that the situation at home and abroad was "excel- lent," the regime in fact ap- pears to be disappointed by its mediocre achievements and frustrated over the intractabil- ity of its long-term problems. In the keynote National Day address, politburo member Peng Chen claimed that agricultural production had increased over 1964, but he warned that "quite a few areas had suffered seri- ous natural disasters," an ad- mission probably designed to condition the populace to ex- pect some belt tightening next spring. Other information on grain crop conditions indicates no increase over the mediocre 1964 level. The absence of a strong popular commitment to regime policies also continues to worry Peking. Chen Yi admitted there were "revisionists" in China but claimed they represent no threat. The National Day editorial in the party journal Red Flag--re- flecting a long-stan ing Fear of top leaders that China, like the USSR, might some day back- slide--was devoted entirely to the problem of inculcating peo- ple with Maoist beliefs through "socialist education" campaigns. Both Chen Yi in his press conference and Premier Chou En- lai in a National Day speech alluded to the third five-year plan, which is to start in 1966, but neither gave details and both stressed that it would take decades--30-to 50 years ac- cording to Chen--to build a strong China SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Preparations for the an- nounced Warsaw Pact exercise are now virtually complete. Military activity in southwest- ern East Germany is expected to accelerate during the next few days as Soviet, East German, Polish, and Czech forces deploy for the event. military activity--which may in- volve the actual participation of elements of as many as ten divisions--will be denied to Allied liaison personnel. A large area in southern East Ger-. many has been closed to them from 9 through 27 October.. 25X1 The theme of the exercise., will probably be the blunting of a NATO attack into East Ger- many followed by a counteroffen- sive through the Fulda Gap to West Germany. Simulated tacti- cal and strategic nuclear blows r Observation of the major SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 (0 SECRET are expected to play a major role. Propaganda to date, plus 'Aarsaw Pact commander Marshal Grechko's statement that the exercise will be the "largest ever," suggests that the Soviets intend to use the exercise as a demonstration of bloc preparedness to counter "the West German threat to peace.' ANOTHER SOVIET LUNAR PROBE FAILS The increasing frequency of Soviet lunar probes suggests that the USSR is feeling a sense of urgency to show some results from this program. Luna 7, launched on 4 October, was the most recent probe and was in- tended to make a soft landing. Its retrorocket system apparently malfunctioned, however, and the vehicle crashed on the moon on 7 October. A TASS announcement released some 13 hours after the impact stated that the probe's operation was generally successful. While Luna 7 must be charged off as the latest failure in a notably unsuccessful program, it un- doubtedly did produce some data which will be useful in further efforts to perfect a soft-land- ing system. So far this year the Soviets have announced three lunar probe launchings, none of which has been wholly successful. They now appear to be stepping up their program to develop a soft- landing technique, possibly in an attempt to obtain lunar sur- face data for an eventual manned lunar landing. In addition, Moscow certainly feels the need to show some results from a pro- gram which has suffered badly in comparison with US lunar ex- ploration SECRET 25X1 25X11 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 ` SECRET Asia-Africa INDONES IA The army continues to keep Sukarno and the Indonesian Com- munist Party (PKI) on the defen- sive, but still appears reluctant to defy the President by a major crackdown on the party. The army is proceeding with its investigation of the 30 Sep- tember coup and will try to build a case against the individuals responsible. The investigations permit the arrest and interroga- tion of relatively large numbers of leftist suspects and are within the terms of Sukarno's orders. Instead of taking direct action against the PKI and its affiliates, the army is relying on anti-Commu- nist civilian organizations. These groups have been active chiefly in destroying buildings used by the party and its front groups. There seems to have been rela- tively little-personal violence. The army is said to be con- cerned about the smuggling of Chinese arms into Indonesia dis- guised as nonmilitary cargo and to have asked the navy to inves- tigate. Sukarno returned to Djakarta from his palace at Bogor on 10 October. Although he has taken relatively little action since then, his presence in the capital strengthens his position by dis- counting reports that he is ill or in protective custody. S In accordance with army wishes, Sukarno has appointed Maj. Gen. Suharto commander of the army. Suharto led the army's counteraction against the 30 Sep- tember coup. He replaces Maj. Gen. Yani, who was murdered on 1 October. Sukarno also has told air force chief Marshal Dani--who was deeply involved in the 30 September plot --that public and army pressures require his resignation from the cabinet. Dani appeared at Bogor on 6 October and, apparently fear- ing army action against himself, has stayed close to Sukarno ever since. The PKI's central committee had made no pronouncements since its statement on 5 October claim- ing that it was not implicated in the coup attempt. Chairman Aidit's whereabouts remains un- known, although the army still believes he is in central Java. Indications are mounting that Sukarno and the party are willing to make Aidit the major scapegoat of the affair and that they will try to form a "new" Communist party. Several Dja- karta newspapers have printed stories to the effect that there are two kinds of Communists: "extreme Communists," who are SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 10 SECRET un-Indonesian and who serve for- eign interests, and "decent Com- munists," who could take a right- ful place in Sukarno's national- ist-religious-Communist concept of government. Moscow has treated events in Indonesia with caution. The Soviet press has reported and de- plored the moves against the PKI but has stopped short of attempt- ing to assess the situation, routinely indicting alleged "im- perialist intrigue." In scattered private comments with Western representatives, however, Soviet officials have implicated pro- Chinese elements in the PKI. Mos- cow probably views the situation in Indonesia as an advantageous one which reinforces the Soviet argument that Peking's advocacy of violent revolutionary tactics can lead to disaster for many Communist parties in Asia and INDIA-PAKISTAN There has been little change in the basic military-deplomatic confrontation between India and Pakistan. Cease-fire violations remain at a relatively low level. UN Secretary General Thant told members of the Security Council last week end that the situation on the cease-fire line had im- proved, but he saw considerable room for further improvement. Neither side has made any move to pull its troops back from for- ward positions. Punjab, believes senior m ary commanders on both sides are sin- cere in their assurances to him that they will honor the cease- fire. He feels his most pressing problem is to bring about the dis- engagement of forward elements, but he is hampered in effecting this, as well as in verifying re- ported cease-fire violations, by limite tions and logis- tics. hopes to take up the withdrawal issue with the chiefs of staffs of the opposing armies. General Musa, the Pakistani Army commander, has already indi- cated, however, that Pakistan has no intention of withdrawing its troops from Kashmir until real progress has been made in moving the Kashmir issue toward a perma- nent solution. Unrest has plagued Srinagar, the chief city of Indian-held Kashmir, in the past week. A number of people were killed in riots last week end, and several more were killed or wounded in a subsequent incident on 11 Octo- ber. The Indian press reported on 12 October that Srinagar schools had been closed for three days. The rioting has resulted in a nighttime curfew and the ar- rest of several opposition polit- ical leaders. Indian authorities can be expected to react quickly and harshly to further disorders. SECRET PAGE 9 WEEKLY SUMMARY 25X1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 9 SECRET I clusion that the UN was unable to preserve the cease-fire, and that accordingly Pakistan may have to fall back on its own re- sources, taking a number of ac- tions "which together may lead to escalation." Ambassador Mc- Conaughy has noticed a number of signs that the Pakistanis may make important decisions around 15-16 October. He believes it prudent to anticipate a stiffer Pakistani response to cease-fire violations. It is likely, however, that again the Pakistani warning is primarily intended to stimulate Western ac- tion on the Kashmir problem. -a f o u r the Azad (Free) ashmir "battalions" in- filtrated into Indian-held Kash- mir in August have returned to the Pakistani side of the cease- fire line. However, some in- filtrators probably remain on the Indian side in any event. There has been little prog- ress toward a substantive discus- sion of the Kashmir issue in the UN, despite Pakistani prodding. Foreign Minister Bhutto now is in New York for a further explora- tion of this question. The idea of a four-power commission to assist U Thant on this issue appears to be fading, largely as a result of Soviet and French objections. Thant still favors this approach to the problem, however. Pakistani Foreign Secretary Ahmed has told Ambassador Mc- Conaughy that his country antic- ipated little effective action within the UN on this issue, add- ing that Pakistan was again con- sidering the Soviet offer of its "good offices" in an effort to resolve the problem. Pakistani officials, probably hoping to stir the US and UK into more im- mediate action, have recently raised this possibility with a number of diplomats. Ahmed also suggested that Pakistan was coming to the con- India continues to claim that Kashmir is not a subject for discussion at all. In a recent magazine interview Prime Minister Shastri asserted that Pakistani "aggression" was encouraged by the fact that "some of the big powers" not only condoned crime but wanted to make aggression pay. He reportedly was "particu- larly distressed" at the British. There are continuing indi- cations that India's efforts to cope with its critical food sup- ply problem have been unsuccess- ful. Residents of Calcutta are finding that food-grain rations set during the hostilities are inadequate, and recourse to the black market is increasingly com- mon. Nevertheless, the state government plans temporarily to cut rations even more until addi- tional food-grain can be obtained from other states SECRET WEEKLY SUMMARY 15 Oct 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 0 SECRET 0 PRO-WEST JUSTICE ]PARTY WINS TURKISH,.ELECTI0NS7 The solid popular majority won by the conservative Justice Party (JP) in the 10 October par- liamentary elections clears the way for restoration of strong government in Turkey after four years of weak coalitions. Unof- ficial returns give the JP an estimated 60 percent of the popu- lar vote and about 250 of the 450 seats in the National Assem- bly. Its leader, Suleyman Demi- rel, will almost certainly be the new prime minister. The Republican Peoples' Party (RPP), led by the venerable Ismet Inonu, suffered a serious defeat. It received less than 30 percent of the vote, but will remain the major opposition with 130-140 assembly seats. The re- maining 60-70 seats will be split among the four minor parties, with the leftist Turkish Labor Party (TLP) winning about 10 seats, assuring it a parliamen- tary sounding board for its strong anti-American attacks. The extreme rightist Republican Peasant Nation Party (RPNP), headed by retired Colonel Turkes, former member of the revolutionary Committee of National Union, made a poor showing at the polls but party leaders hope to attract support from "friends" in the assembly. The JP victory should favor US interests in Turkey and main- tain Turkey's Western orienta- tion. The party leadership is basically pro-American and real- izes the importance of sound, moderate, effective government. The JP favors flexible, rather than rigid economic planning, is oriented toward private en- terprise rather than state owner- ship, and while trying to main- tain good relations with the USSR, will probably try to slow down the current Soviet economic offensive in Turkey. The new government will re- main firm in its strong support and direction of the Turkish community on Cyprus. At the same time it will be in a better position to accept compromise if indeed compromise becomes possi- ble. Like its predecessors, it will look to the United States and the UK, rather than the United Nations, for the ultimate reso- lution of this sticky problem. The new government will face many knotty problems, not the least of which will be the limited number of JP leaders with top government experience. There will be continuing pressure from both the left--the TLP--and the right--the RPNP--as well as per- sistent badgering from the RPP. The new government probably will also encounter intermittent criticism from elements within the military who either fear po- litical revenge for the revolution of 1960 or who want a stronger SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 w SECRET V military voice in the affairs of government. Unless the new govern- ment reverts to the dictatorial tendencies of the prerevolutionary regime, however, or threatens to undermine the position of the BRITISH-RHODESIAN TALKS FAIL Last week's talks in London between Prime Ministers Wilson and Smith on the question of Rhodesian independence ended in failure. Smith and his cabinet remain uncompromising and are likely to decide soon to make a unilateral declaration of independ- ence (UDI), although the announce- ment may be delayed for several months. The UN General Assembly passed a resolution this week calling on the UK to take all steps necessary to halt UDI. However, international pressures are unlikely to do more than tem- military, or neglects the country' social and economic development, the military can be expected to porarily delay Rhodesian independ- ence. Most of Rhodesia's white electorate is reported anxious for an early decision, but some are having second thoughts about the wisdom of UDI. Business and industrial leaders, who last year declared that UDI would have dis- astrous economic consequences for Rhodesia, have reaffirmed their 25X6 opposition to rash action and apparently are considering ways of putting pressure on Smith. Leading newspapers are encouraging Smith to consider carefully and to consult public opinion before reaching his decision. Nevertheless, Smith announced on his return from London that further negotiations were out of the question, and that Rhodesia would probably have its independ- ence by Christmas. He is now so firmly committed to immediate action that he will probably have to declare UDI before too many SECRET PAGE 13 WEEKLY SUMMARY Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET 0 ACCRA TO HOST AFRICAN SUMMIT MEETING African heads of state and gov- ernment will convene in the capital of Ghana from 21 to 27 October for the second time since they estab- lished the Organization of African Unity at Addis Ababa in 1963. Most of the 36 member countries are ex- pected to be represented at the meeting, although not by the top leader in some cases. The dispute between radical Ghana and the conservative French- speaking states, which has threat- ened to split the OAU, appears to have been deferred for the sake of preserving African unity. The argu- ment revolved around Ghanaian Presi- dent Nkrumah's active support of subversive elements from independent African countries. This was dis- cussed at an emergency OAU foreign ministers' conference in June, which confirmed the Accra site for the summit in exchange for Ghana's guar- antee to expel undesirable political refugees. Nkrumah has made token compliance, but no one believes he has given up subversion, and some of the conservatives may still re- fuse to attend. Although the OAU conference will be concerned primarily with African problems, some touchy East- West issues may also come up. Mod- erates, who put Vietnam on the sum- mit agenda, successfully blocked preliminary efforts by radical mem- bers to present a one-sided version of the conflict, and the moderates' bid to ensure a mild African posi- tion on Vietnam may well succeed. The question of Chinese Communist admission to the UN, on the other hand, would, if it arises, be sup- ported by some moderates as well as by the radicals. Of the specifically African issues on the agenda, the most ur- gent will be the working out of responses to a possible unilateral declaration of independence by Rho- desia as well as an OAU stand on recent Congo developments. Pre- vious strong resolutions on the Portuguese African territories, on South Africa's racial policies and on its mandate over South West Af- rica,are likely to be reiterated. There are numerous indica- tions that a disguised form of Nkrumah's old dream of a continen- tal union government will be given considerable attention at the sum- mit. Diallo Telli, the OAU's am- bitious secretary general, may push to make the OAU the voice for all aspects of African affairs. In close collaboration with Nkrumah and the radicals, Diallo has apparently written a subtle resolution to this effect for Ghana to present to the summit. A somewhat different push to- ward centralization will come from Ethiopia, which wants to house the OAU's many commissions in Addis Ababa. Ethiopia may also propose holding all future summit meetings there to avoid repetition of the recent disagreement over the Accra site. Previous efforts to establish union government have met with no success. Many African leaders have been troubled by recent dis- plays of disunity, however, and may be more receptive than formerl to such suggestions SECRET PAGE 14 WEEKLY SUMMARY Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 TSHOMBE OUSTED IN THE CONGO Congolese President Kasa- vubu's dismissal of Premier Tshombd on 13 October almost certainly presages a period of political turmoil in Leopoldville. In essence the conflict be- tween the two men is a struggle for the presidency, the locus of ultimate political power in the Congo. Presidential elections are due in six months, and the intervening period is likely to be marked by vigorous and some- times violent politicking through- out the.country. Kasavubu apparently is working with Interior Minister Nendaka to cut away Tshombd's power. Evariste Kimba, whom Kasavubu named to form a new government, is a fairly able politician but lacks a national political base of his own. He will be heavily dependent on Kasavubu's support, on Nendaka's anti-Tshombd parliamentary alli- ance, and probably on the goon squad Nendaka is assembling in Leopoldville. Tshombd seems likely to re- main in Leopoldville for.the. present and to use his consider- able parliamentary strength to block attempts by Kimba and others to form a government. Under such circumstances Kimba faces an uphill struggle in his efforts to get parliamentary ap- proval. Given the volatile na- ture of Congolese politics, how- ever, his outlook is far from hopeless. On the rebel front, the capture of Fizi cuts off the last insurgent area with chan- nels for large-scale supply of outside aid. Rebel resistance to Colonel Hoare's.mercenaries suddenly faded away, but there apparently are still many insur- gents in the mountains west of Fizi. The Leopoldville government still faces a long campaign'to re-establish its authority in large sections which remain rebel infested. In many cases these are areas where rebel ac- tivity, local rivalries, and banditry are intermixed, where the populations are frequently antipathetic to the government, and where the terrain provides a base for antigovernment activ- ities. SECRET PAGE 15 WEEKLY SUMMARY 15 Oct 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET 0 Europe SCANDINAVIA AND NATO Sweden apparently has not completely dismissed the pos- sibility of reviving its 1948 proposal for a Scandinavian de- fense pact. In a recent public discussion, Prime Minister Er- lander noted that "pressure from both East and West" had prevented such an alliance in 1948 and sub- sequently led Norway and Denmark to join NATO. He suggested that this question might again become topical in 1969 when the NATO members may exercise their op- tion to withdraw from the alli- ance. Erlander's-cautious allu- sion to this question comes at a time when the moderate group he represents is being challenged by the younger more radical wing of his Social Democratic Party. Pressure from this faction, which believes that Swedish nonalign- ment must give way to a more pos- itive foreign policy, has al- ready led the government to speak out on such controversial questions as the US role in Vietnam and disengagement in Central Europe. In the future Stockholm may feel compelled to involve itself more actively with sensitive issues closer to home--i.e., Northern Europe and its position between the Western and Communist worlds. The success which this radi- cal group can hope for in pursu- ing its objectives will not be determined in Sweden alone, but will depend to a large degree on Norwegian and Danish opinion as it is affected by developments outside Scandinavia--particu- larly in Moscow. In recent years a major objective of So- viet policy in Northern Europe has been to weaken the NATO com- mitments of Norway and Denmark from NATO. Moscow's sabre-rat- tling actions, however, only served to convince most Norwe- gians and Danes that they could enjoy no measure of security outside an alliance with the US and Britain. This attitude might change rapidly if there were a prolonged detente between the USSR and the West, if De Gaulle were to with- draw France from meaningful par- ticipation in the alliance, and if Bonn's pursuit of a greater role in its nuclear activities revives latent fears of West Germany. Under such conditions, public opinion might look beyond NATO for other solutions to the problem of national security. Both Oslo and Copenhagen already are under domestic pressure to hold referendums before commit- ting their governments to con- tinued membership in NATO. If Norway and Denmark were to contemplate withdrawing from NATO, all three Scandinavian countries would have to recon- sider the basic question of whether their combined population and resources would be adequate to organize and maintain a de- fense credible enough to deter aggression. SECRET 25X1 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Iq Next 1 Page(s) In Document Denied Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 S SECRET As preparations for the Dominican Republic's expected elections get under way, anti- Americanism is likely to grow, both as an excuse for the coun- try's problems and as an easy way to popularity. 0 Garcia Godoy will not be able to deal effectively with extreme leftist attempts to infiltrate government departments and take over various institutions. He has insisted that he could not do so until the rebel zone was disbanded. The autonomous Confedera- tion of Christian Trade Unions, for instance, reportedly plans to join the campaign against the presence of foreign troops--not because it doubts the Inter-Amer- ican Peace Force is necessary to stability in the republic, but because it feels it must do so to keep tts membership. The pro- visional government is urging the IAPF to hold on to its unpopular public-order duties rather than turn them over to the Dominican police, while at the same time the government-controlled radio station is attacking the IAPF for doing so. Important progress was made on extending government control over the rebel zone in Santo Domingo when, on 13 October, rebel military troops started moving to an IAPF camp outside the zone. This makes easier the work of government police, who began occupying the zone earlier in the week. It also raises the question as to whether President The leaders of the two main political parties--Juan Bosch of the Liberal Dominican Revo- lutionary Party (PRD) and Joaquin Balaguer of the conservative Re- formist Party--both are repre- senting themselves to the US Embassy as moderates. Balaguer apparently is using his influence with the military leadership to urge patience with Garcia Godoy in his problems with the left. Bosch claims to be shocked by the extend of Communist penetra- tion of his party. The PRD lead- ership plans to enlist the aid of a labor expert from Venezuela to regain control from the Com- munists of its own labor organi- zation, and Boscn has put out vague feelers to the US Embassy about cooperation with US offi- cials and Balaguer on "anti- Communist" strategy in the com- ing months. Bosch is, however, so embittered about the US inter- vention that more and more of his supporters say his judgment on all issues is clouded. SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0_- Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 0 SECRET 4P The country remains bitterly divided, with its basic problems far from solution. The longer it takes Garcia Godoy to put the rebels under firm government control the more difficult his job will be, and the more frus- trated and desperate right-wing "vigilante" groups are likely to grow ECUADOR'S MILITARY JUNTA REMAINS UNCHALLENGED Ecuador's military junta went unchallenged during the 9 October celebration of the 145th anniversary of Guayaquil's inde- pendence from Spain, an occasion when the boisterous regionalism of that coastal city has often found expression in antigovern- ment demonstrations. Although opportunists were prepared to exploit disturbances, the national police were ready and politicians proved unable to concert action. Despite this failure, the political parties remain deter- mined to press the regime to accelerate or otherwise alter its plan for return to constitutional rule by September 1966. Basically distrusted by the people, poli- ticians have shown no ability to arouse support since their maximum effort of July. The junta has played upon traditional religious attitudes by announc- ing that it will consider sub- sidizing parochial schools, a ploy designed to divide the anti- clerical Liberals and Socialists from the Conservatives and hinder formation of an effective anti- junta ad hoc coalition. Only repercussions of a sharply declining economy or exacerbation of the perennial boundary problem with Peru now appear able to threaten the gov- ernment's resolve to maintain the pace of its present transi- tion plan. SECRET PAGE 20 WEEKLY SUMMARY Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 0 SECRET 0 REPERCUSSIONS OF THE BRAZILIAN GUBERNATORIAL ELECTIONS President Castello Branco is attempting to ease the ten- sions caused by heated reactions of political and military leaders to results of Brazil's 3 October gubernatorial elections. The government's present difficulties stem from the strong showing made by several candidates of the So- cial Democratic Party (PSD) who are linked to opposii.ion forces. Many senior army officers have blamed Castello Branco for the outcome, charging that subver- sive and corrupt politicians will now have access to influential positions, particularly in the politically important states of Guanabara and Minas Gerais. Partly as a result of pres- sure from the military, the ad- ministration is planning to pre- sent several proposals to Con- gress designed to increase the federal government's authority, especially over security matters, at both the national and state levels. Among the measures re- portedly to be considered will be one tightening control over the activities of the several hundred persons whose political rights have been removed, in- cluding ex-presidents Kubitschek and Quadros. Governor Carlos Lacerda, a pres- presidentialctp ent has ent governor of Guanabara, added to the administration's troubles by increasing his severe attacks on Castello Branco. In several public statements during the past week, Lacerda accused the President of betraying the March 1964 revolution and fail- ing to provide effective leader- ship. Lacerda's renewed outbursts reflect his anger at the loss to his personal prestige caused by his personal candidate's defeat in the Guanabara gubernatorial race. Lacerda has announced that he may withdraw as a candidate for the presidency until his party, the National Democratic Union (UDN), has considered whether or not it wants to con- tinue with his nomination. Castello Branco, with the cooperation of War Minister Costa e Silva, seems to have succeeded, at least for the moment, in re- assuring the armed forces that the regime intends to remain firm against subversion and corruption. At the same time he has pledged to uphold the election results. Political conditions will remain unsettled, however, as the various power elements vie for advantage. The government will have to reappraise its re- lations both with the UDN, which now generally supports Castello Branco, and with the restrengthened Social Democrats. SECRET PAGE 21 WEEKLY SUMMARY 15 Oct 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 United Nations FRANCE TRIES TO CURB UN SECRETARY GENERAL'S POWERS France has seized upon the Kashmir crisis to revive issues regarding the future development of the United Nations. The main objective as in the past is to assure the maintenance of great- power predominance through the Security Council. The result will be to curb the role and influ- ence of the secretary general and his staff, particularly in peace- keeping operations. The French delegation has been vigorously maintaining that the Security Council should have complete authority over all de- tails of Secretary General Thant's actions with regard to financing and staffing the UN observer groups in Kashmir. The resolu- tion the French have proposed for Security Council approval would set budgetary limits, approve measures taken so far, and au- thorize the secretary general to recruit more personnel to a cer- tain limit. The French have always main- tained that the Security Council must approve financing as well as the initiation of peacekeeping op- erations. They have said they in- tend to produce a definitive change in the practice previously followed by the Security Council and seem unconcerned by Western warnings that such a change would enable the USSR to impose spe- cific requirements for these operations, such as troika com- position of forces. The French attitude also reflects De Gaulle's distaste for any multilateral encroach- ment on national sovereignty. According to members of the French delegation, it was France's experience with the "usurpation of power" by the EEC Commission that has influ- enced its present determination to check similar usurpation by the UN Secretariat. The controversy recalls the split over the Congo opera- tion which led to'the financial crisis of the past year. Both the Soviet Union and France then maintained that the secretary general had gone beyond his au- thority in the Congo. They now are arguing the same for Kashmir. The Soviets are probably happy to have France taking the lead in trying to limit the power of the secretary general., Soviet delegate Morozov has pro- fessed "dismay" that Thant has gone beyond his mandate and com- plained that the council in its resolutions of 20 and 27 Septem- ber did not give him "carte SECRET PAGE 22 WEEKLY SUMMARY Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 3 December 1965 OCI No. 0318/65 Copy No. WEEKLY SUMMARY 10 CENTRAL INTELLIGENCE AGENCY 25X1 OFFICE OF CURRENT INTELLIGENCE Sanitized Copy Approved for Release SECRET Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 urnN to wcaffis & 01110 COW IMMEDIATELY 15E ~aF~a 9 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET (Information as of noon EST, 2 December 1965) VIETNAM Communist-initiated incidents in South Vietnam reached a record high last week, sustaining the accelerated pace of the past few weeks. A number of unusual devel- opments suggest that additional deployments of regular North Vietnamese Army units may be under way. Asian Communist propaganda capitalized heavily on last week's protest demonstrations in the US against policy in Viet- nam. Hanoi appears to be seeking new bloc commitments of economic assistance to counter the effects of US bombings. Page The Communist World SOVIET POLITICS AND THE INDUSTRIAL REORGANIZATION 4 Political intrigue continues in the USSR. Last Septem- ber's political compromises affecting the economy appar- ently did not stabilize the political situation and par- ticularly did not settle the question of where the di- viding line lies between party and government authority --and, by extension, between that of Brezhnev and Kosygin. MOSCOW'S CALIBRATED RESPONSE TO CHINESE POLEMICAL ATTACK 6 Pravda recently responded forcefully to the latest Chi- nese anti-Soviet tirade in an effort to discredit and isolate Peking. Moscow, however, will probably continue to avoid the tit-for-tat acrimony reminiscent of the Khrushchev era. COMMUNIST CHINA PUTS POLITICAL PRESSURE ON SCIENTISTS 7 Peking's demand for more political subservience from physicists and other natural scientists could ultimately have an impact comparable to Lysenkoism, which hampered science in the USSR for many years. PEKING OUTBURST AT BOURGUIBA REFLECTS HARDER POLICY LINE 8 The Chinese Communists are annoyed by the Tunisian Pres- ident's recent outspoken criticism of China's leaders, and probably also resent Tunisia's abstention this year on the UN Chinese representation vote. SECRET Page i WEEKLY SUMMARY 3 Dec 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 ? SECRET ? Asia-Africa INDONESIAN ARMY PRESSES ANTI-COMMUNIST DRIVE 8 Communist Party branches are being dissolved piecemeal and rank and file party members slaughtered in some areas. The army frequently ignores Sukarno's moderat- ing orders. MORE CHINESE COMMUNIST MILITARY AID FOR CAMBODIA 9 Peking has agreed to increase its military aid commit- ments,while the Soviet military assistance program in Cambodia is at a standstill, probably due to Moscow's vexation with Phnom Penh's pro-Chinese attitude. SCATTERED FIGHTING CONTINUES IN LAOS 10 The Communists have lost some positions near 'ihakhek in central Laos and northwest of Luang Prabang, but are exerting pressure in other areas. ISRAEL, THE ARAB STATES, AND PALESTINE "LIBERATION" ACTIVITIES The Arab states have differing policies toward the or- ganizations dedicated to the "liberation" of Palestine. Jordan, the haven for most of the Palestine Arab refu- gees, keeps a damper on both their political and terror- ist activities because it is the Arab state most suscep- tible to Israeli reprisals and is vulnerable to Nasirite subversion among the Palestinians. Syria, far less ex- posed to Israeli retaliation, encourages the Palestinian refugee raids into Israel. Egypt is cautious in support- ing the Arab-Palestine cause because a wrong move could, with little warning, provoke the worst Arab-Israeli con- 25X1 CONGO QUIET AFTER MOBUTU TAKE-OVER Congolese politics seem headed for a period of relative calm following the coup on 25 November, but difficul- ties may arise from civilian and military political jockeying. DAHOMEY REGIME OVERTURNED When a political stalemate seemed threatened, the army ousted the country's two top officials and installed a provisional regime. SECRET Page ii WEEKLY SUMMARY 3 Dec 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 ? SECRET 0 BRITISH POLICY ON RHODESIA TOUGHENING London is imposing stricter economic sanctions, sending air force units to Zambia, and threatening to use force to protect the Kariba dam. Inside Rhodesia, only iso- ated incidents of violence have occurred. Europe FRANCE LAUNCHES ITS FIRST SATELLITE France's space goals are not yet defined and are still limited by a launch vehicle capable of only light pay- loads. One early objective may be to orbit communica- tions satellites, for which a larger booster is planned. FINNISH COMMUNIST PARTY UNDER PRESSURE TO LIBERALIZE The party congress next month may produce a fight that could cost the Communists votes in next year's national elections. Western Hemisphere PEARSON FORMING NEW CANADIAN CABINET The Canadian prime minister may be too optimistic in feeling he is in a stronger position now than before the election. He may have problems, in any case, bal- ancing the various power blocs in the cabinet he expects to announce after 16 December. BRITISH GUIANA TO BECOME INDEPENDENT NEXT MAY Premier Burnham and his coalition partner seem to have reached substantial agreement on constitutional provi- sions, and chances appear to be declining that opposi- tion leader Cheddi Jagan will rouse his followers to effective violence against the Burnham government. RESULTS OF THE OAS CONFERENCE IN RIO DE JANEIRO The foreign ministers approved resolutions calling for study of political and economic measures to amend the OAS charter and strengthen the inter-American system. GENERAL STRIKE FAILS IN PANAMA Determined action by President Marco Robles prevented Communist and opposition elements from exploiting a 72- hour general strike which began on 23 November. SECRET Page iii WEEKLY SUMMARY 3 Dec 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 SECRET Page iv WEEKLY SUMMARY 3 Dec 65 ? SECRET 0 DOMINICAN PRESIDENT'S POSITION GROWING STRONGER Despite agitation and plotting by politicians on the left and right, Garcia Godoy's position appears stronger than at any time since he took office in September. importance Moscow attaches to good relations with Cuba. The Castro delegation probably concentrated on military and political subjects during its lengthy stay in the USSR. SIGNIFICANCE OF RAUL CASTRO'S VISIT TO USSR The deference accorded the younger Castro reflects the FRICTION AMONG BRAZIL'S LEADERS A serious rift seems to be developing between President Castello Branco and War Minister Costa e Silva, who has long been a mediating influence between the President and his critics among the military hard-liners. Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 0 Communist-initiated inci- dents in South Vietnam last week reached a record high, sustain- ing the accelerated pace of Viet Cong activity during the past few weeks. One of the most damaging large-scale actions of the war occurred on 27 November, when a Viet Cong force of at least regimental strength launched a dawn attack on the Vietnamese 7th Regiment in Binh Duong Province. Although the 7th had beaten off an attack in the same area five days before, enemy forces this time achieved complete surprise, overran two battalions, and inflicted 600- 700 casualties in four hours of severe fighting. Allied rein- forcements searching the area afterward failed to make contact with the enemy force. The Viet Cong also attacked several gov- ernment outposts and positions in the coastal provinces of I and II Corps. Incidents of terrorism, also at record levels last week, were concentrated in government- controlled areas in the delta region and near Saigon where seven hamlet chiefs and one dis- trict official have been killed in the past three months. confirmed two new Viet Cong regiments in Phuoc Tuy Province and list a probable additional SECRET 0 enemy regiment near Saigon. Confirmed enemy regiments in South Vietnam now amber 18, in- cluding seven North Vietnamese regiments. Confirmed enemy strength now totals 68,000 main force troops. In addition there are some 39,000 political cadres, 17,000 combat support troops, and over 100,000 guerrillas. Intelligence gathered dur- ing the fighting around Plei Me has led to a re-evaluation of the role of the PAVN 325th Di- vision. All three organic regi- ments of this unit were accepted as being in South Vietnam as of early 1965. The garrison head- quarters of this unit, how- ever, apparently remained at Dong Hoi in North Vietnam serv- ing as a base where composite units are formed, trained, and then infiltrated to the South. Best that in the past year the -325th has rebuilt at least three ad- ditional regiments and infiltrated at least one of them into the South. A possible reflection that new and heavier infiltration is planned or is under way are the attempts the Communists are making to camouflage the newly SECRET WEEKLY SUMMARY 3 Dec 65 Sanitized Copy Approved for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 25X1 25X1 Sanitized Co for Release 2011/04/13: CIA-RDP87-00181 R000200450008-0 ? V SECRET In/I Kuel-yan 1 io ng?yang i i Lei?yang H I N ei?IinA Pet un '1' un?ming Airfield under ~Lithia?tsun construction Shao?kuan /) i Liu?chpu ~., :~; P'ing?YUan '~~