CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A019900010002-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 14, 2016
• Document Release Date: June 13, 2003
• Sequence Number: 2
• Publication Date: August 27, 1971
• Content Type: REPORT

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Top Secret
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Top Secret
c 196
27 August 1971
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INDONESIA-CHINA: Djakarta is moving toward a more
flexible position on Communist China. (Page 7)
JAPAN - COMMUNIST CHINA: Agreement on trade offices
(Page 14 )
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INDONESIA-CHINA: Indonesia is moving toward
a more flexible position on Communist China.
Djakarta, which suspended relations with Peking
in 1967, has been divided on the wisdom of resuming
ties. The Foreign Department has favored resumption
while the army, which is the dominant force in the
government, has been opposed. This year, however,
President Suharto has permitted intermittent and in-
direct probing of China's attitude, and within re-
cent months, a highly influential group of generals
has begun to favor a foreign policy that would bal-
ance Western financial assistance by an improvement
in relations with Communist.countries including
China.
Despite this shift, resistance toward full nor-
malization of relations with Peking has continued.
Following a policy review of the China question con-
ducted immediately after President Nixon's announce-
ment of his intended visit, Suharto reiterated that
he would not move toward normalizing relations with
Peking until the latter ceased its support of sub-
version in Indonesia and stopped its vituperation
against the Indonesian Government.
n in in attitude in
e ch
Djakarta is accelerating and the Foreign Depart-
ment now feels secure in pressing its arguments for
more flexibility within government circles. With
Suharto's permission, the Department is apparently
preparing, and may already have taken, further ex-
ploratory steps toward establishing direct commu-
nication with Peking. The full normalization of
relations, however, rprobably will remain a slow
r ss
27 Aug 71
Central Intelligence Bulletin
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JAPAN - COMMUNIST CHINA: Agreement has been
reached to double the size of the Japan-China trade
offices in Tok o and Peking. Announcement of the
a reement
came on. e
eve of the arrival in Japan of a prominent Chinese
official who will attend the funeral of Matsumura,
dean of the pro-Peking wing of the ruling conserva-
tive party. The timing of the announcement may have
been intended to coincide with the visit of the Chi-
nese official. In any case, it will have the effect
of tantalizing the Japanese over the prospects for
increased trade and contacts with China once Tokyo
takes a more "progressive" attitude toward Peking.
The Sato government, for its part, will no doubt
cite this development as evidence of its willingness
to enlarge contacts with China.
27 Aug 71
Central Intelligence Bulletin
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Approved For Release 2003/06/25 : CIA-RDP79T00975AO19900010002-9