CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A012300050002-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: August 7, 2003
• Sequence Number: 2
• Publication Date: October 11, 1968
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Department review completed
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Top Secret
C 196
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Central Intelligence Bulletin
CONTENTS
Chile: President Frei is concerned over implications
of the Peruvian coup. (Page 3)
Panama: Plotting by disgruntled military officers
may diminish. (Page 5)
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Chile: President Frei is deeply concerned about
the impact of the Peruvian coup on Chilean politics
and military attitudes.
In a talk with the US ambassador on 8 October,
Frei said that with the military in power in Peru
and Argentina and a military supported government in
Bolivia, Chileans believe that their democracy is
isolated. Because of this, Frei thinks the Chilean
military and police will probably press for more
modern equipment in order to provide for defenses
against Peru and Argentina and to improve their ca-
pability to deal with urban terrorism. Although the
Chilean military is strongly committed to the mainte-
nance of democratic institutions, Frei believes that
they would not accept a government that included Com-
munist participation or overt control.
Frei also believes that the public is badly
disillusioned with the present political parties in
Chile, and that the violent tactics of leftist ex-
tremists contribute to this disillusionment. The
terrorism has increased in recent months, giving an
impression that the government is not in control.
Should the feelings of disillusionment increase, Frei
believes that it would benefit aged former president
Jorge Alessandri, a prospective candidate as an in-
dependent rightist in the 1970 presidential election.
I
11 Oct 68 Central Intelligence Bulletin
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C Panama: A deal concluded on 9 October between
President Arias and a leader of the national guard
will probably diminish, but not end, the plotting
by disgruntled military officers.
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Lt. Col. Urrutia, who made the deal with Arias,
is to take command of the guard today--several weeks
earlier than expected--and most of the young commanders
will be transferred as previously planned. Guard Com-
mandant Vallarino and his deputy are also to be re-
tired today.
These new assignments by the President may not
satisfy the younger officers.
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The other officers probably feel that they have
been abandoned. They can be expected to continue
to watch the President very closely. Should it ap-
pear that Arias is about to reorganize the guard,
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11 Oct 68
Central Intelligence Bulletin
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