CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A009400280001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 15, 2016
• Document Release Date: November 25, 2002
• Sequence Number: 1
• Publication Date: December 12, 1966
• Content Type: REPORT

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Approver Release 2003/01/29: CIA-RDP79T 5 0940 Icret
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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Top Secret
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State Dept., JCS rev" s pWglease 2003/01/29: CIA-RDP79T00975A009400280001-7 A59
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12 December 1966
Central Intelligence Bulletin
CONTENTS
1. Vietnam: Current situation report. (Page 1)
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3. Communist China - Macao: Peking puts new
pressure on Portuguese to meet demands of
Macao Chinese. (Page 5)
4. Communist China: Food situation forces Pe-
king to purchase more foreign grain. (Page 6)
5. Communist China: Red Guards again attack
chief of state Liu Shao-chi. (Page 7)
6. Indonesia: Renewed campaign to discredit
Sukarno seems likely. (Page 9)
7. West Germany: Move to extend full voting
rights to West Berlin members of Bundestag
is under way. (Page 10)
8. Note: Bolivia. (Page 11)
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12 Dec 66 CENTRAL INTELLIGENCE BULLETIN Map
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`Vietnam: (Information as of 4:30 AM EST)
Communist Political Developments: The Com-
munists have rejected suggestions that the Christ-
mas truce be extended to Tet, the lunar new year
which will be celebrated between 8 and 12 February.
A 10 December Liberation Front broadcast as-
serts that recent calls for an extension of the truce
were inspired by the US to detract from the signifi-
cance of the Viet Cong's "humanitarian" gesture in
announcing the cease-fire. The broadcast also de-
nounced world figures who speak about peace in Viet-
nam as supporters of US "aggression."
The Military Situation in South Vietnam: US com-
bat forces participated in 12 of the 26 battalion- size
or larger operations conducted throughout South Viet-
nam during the weekend.
The most significant contact occurred yesterday
in Tay Ninh Province where a US platoon engaged a
Communist force about ten miles northeast of Tay
Ninh city. Both sides suffered heavy casualties--18
Americans killed and 10 wounded, and 26 enemy
soldiers reported killed.
Twenty-four South Vietnamese Army soldiers
were killed and 85 wounded on 10 December when
their positions, ten miles northwest of Hue, were at-
tacked by a Communist force of unknown size. The
South Vietnamese also lost more than 100 weapons.
Six enemy soldiers were reported killed.
(continued)
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Viet Cong sabotage activity was high over the
weekend. Two explosions at the Long Binh ammuni-
tion depot, 13 miles northeast of Saigon, destroyed
nearly two tons of ammunition in the third such at-
tack in six weeks. Viet Cong frogmen failed in four
attempts to blow up strategic bridges in the Saigon
area. However, interdiction efforts along Route 1
in the three northern provinces have blocked road and
rail transport connecting Thua Thien with Quang Tri
and Quang Nam.
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Communist China - Macao: Communist China has
increased its pressure on the Portuguese authorities
in an apparent effort to force full capitulation to the
demands of Chinese Communist elements in Macao.
On 11 December an authoritative People's Daily
article asserted that the Macao authorities had only
"superficially" accepted demands by the Chinese in
Macao for an apology and for compensation for damage
caused during the recent riots. The article warned
that the "Chinese people" would not "tolerate" the '.'rtith-
less persecution" of the Chinese in the Portuguese col-
ony. It repeated a 9 December statement of support
for the Chinese Communists in Macao by Kwangtung
provincial authorities which demanded that the Portu-
guese unconditionally accept all demands of the Chinese
Communists in Macao and take steps to prevent Chinese
Nationalist operations there.
Communist China's continuing propaganda cam-
paign against the Macao authorities appears aimed at
forcing the Portuguese into a public display of sub-
servience showing that the colony exists only at Peking's
sufferance. However, the Chinese Communists are
unlikely to move directly against Macao unless any fur-
ther demonstrations in the colony get out of hand or un-
less the Portuguese refuse to satisfy most of the Chinese
demands.
The situation in Macao itself has been returning
to normal and the Macao authorities appear to be
anxious to reach a compromise solution on the issue.
In Lisbon, the Portuguese foreign minister has evi-
denced a resigned and restrained attitude toward the
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Communist China: Facing a worsening food situ-
ation, China has bought an additional 914, 000 tons of
wheat from Canada.
With this latest purchase, China has contracted
for the maximum annual amount of grain provided for
in the three-year wheat agreement signed with Canada
in the fall of 1965--2. 5 million tons--and has bought
a total of five million tons from all sources for delivery
during the year ending 30 June 1967. The prospects are
that still more purchases will be sought in Canada and
elsewhere, perhaps bringing the total delivery for the
year ending 30 June 1967 to more than the 6. 3 million
tons China procured in the 12-month period endin
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China wants to buy "any quantity
of wheat Argentina will be able to spare. " Argentina
has supplied China with more than a million tons annu-
ally during the past three years.
China's need for food imports is greater now than
at any time since 1962, when grain production was re-
stored to the 1957 level of about 180 million tons follow-
ing three calamity food years.
in many urban areas and in wi esprea
rural areas where early 1966 crops were reduced by
bad weather, rations have been cut, in most cases to
an inadequate 20-25 pounds of grain per month per adult.
This is down a third or more from the estimated level
of recent years.
Present indications, moreover, are that the late
harvest--now in progress--will bring a below-average
yield insufficient to reverse the deterioration in ration
levels. The authorities in one province have felt com-
pelled to call on peasants to "practice the spirit of a
10-month grain allotment to last through 13 months, "
while authorities in another province have warned local
cadres that enforcement of distribution plans "correct"
for this harvest "will encounter resistance. "
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Communist China: Red Guards have renewed
demands for the dismissal of chief of state Liu
Shao- chi.
A wall newspaper displayed on 8 December by
a Red Guard unit at Peking University charged that
Liu is the "Khrushchev of China" and must be com-
pletely overthrown. It said that now that former
Peking mayor Peng Chen, former propaganda chief
Lu Ting-i, and others have been "exposed," it is
time to go after their "big boss" Liu Shao-chi and
his chief supporter, party general secretary Teng
Hsiao-ping. According to the poster, Liu has been
opposed to Mao Tse-tung and Lin Piao for many
years. It charged that Liu began to create a faction
within the party as long ago as 1936, a few months
after Mao became party chairman, and named more
than a dozen individuals said to be "devoted retainers"
of Liu.
Red Guard demands to dismiss Liu and Teng have
not yet been endorsed in regime pronouncements. In
speeches released on 3 December, Madame Mao and
other officials indicated that the already disgraced
Peng and former propaganda chief Lu will be further
"exposed," but said that other unspecified individuals
should be allowed to correct their mistakes. Since
3 December Peking newspapers have been focusing at-
tacks against literary figures who were denounced last
spring. This suggests that for the moment the regime
wants to concentrate on cultural targets, rather than
on senior party leaders.
The new Red Guard charges against Liu Shao-
chi, like those made in November, presumably have
high- level backing, since they contain information
available only to senior party leaders. The language
of the 8 December charges implies that one such leader
is Kang Sheng, a long-time intelligence specialist who
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was promoted into the politburo standing committee
last August and is a key member of the party's cul-
tural revolution group. He was demoted in 1956
from a full to an 'alternate member of the politburo.
The reasons for this were never made public, but the
latest charges now claim that he was one of those Liu
was "keeping down."
A few days after a similar attack in November,
Liu and Teng showed up at a Red Guard rally with
Mao, as if nothing had happened. It would appear
either that the regime is engaged in a slow, devious
process to bring them and their supporters down in
disgrace, or that a faction at the top which is press-
ing the charges has been successfully resisted by an-
other group.
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Indonesia: General Suharto, under pressure from
various quarters, is considering more decisive moves
against President Sukarno.
Suharto
was appointing a special committee
to work toward toppling Sukarno. At the same time he
remains committed to the strict observance of legal
processes, and apparently he has designated General
Nasution, the chairman of congress, to plan and lead
the necessary political action.
Action would be based on evidence of Sukarno's
involvement in the antiarmy move of 1 October 1965
which has been revealed and repeatedly corroborated
in the current trial of former air force chief Omar
Dani. Sukarno's own evasive deposition on his role
in the events described by Dani, which was read in
court on 10 December, is likely to be regarded by
Suharto and others as inadequate and in some in-
stances untrue.
Heavy press coverage of the trial already em-
phasizes Sukarno': foreknowledge of the action and
his involvement. Nasution and his advisers believe
that after the trial anti- Sukarno demonstrations by
students and other groups can be renewed. These
will be used to develop public receptivity for an emer-
gency session of congress, Indonesia's highest policy-
making body. Congress could then vote to depose
Sukarno as president.
The plan of action being considered may_encoun-
ter obstacles and delays, but at the least a consid-
erably expanded anti-Sukarno campaign seems likely.
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West Germany: The Bundestag is moving to
extend full voting rights to its West Berlin mem-
bers despite Allied warnings that such a move
could threaten Allied rights in Berlin.
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West German political leaders have long been
restive over Allied insistence that, because Berlin
remains under four-power rule, the votes of the 22
West Berlin representatives in the federal parlia-
ment should be limited to procedural matters only.
Popular interest in this problem was heightened when
the question of counting Berlin votes figured promi-
nently in the recent Bonn government crisis.
new Foreign Minister Willy Brandt, formerly Ber-
lin's mayor, strongly favors removing all Berlin
voting restrictions and has bitterly criticized the
Allies for what he terms their "legal sterility and
political malice" in connection with this issue.
Ambassador McGhee in Bonn observes that in
view of the actions already taken, it may be too late
to dissuade the Germans from going ahead. Bonn's
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Bolivia: The threat of violence appears to have
lessened in the confrontation between the striking
miners of Huanuni and the national guardsmen bivou-
acked nearby. President Barrientos' personal inter-
vention on Friday seems to have convinced the major-
ity of the strikers that the government would negotiate
in good faith and that nothing would be gained by vio-
lence at this time. Barrientos said later in La Paz
that he recognized the need to improve industrial re-
lations and social conditions at Huanuni. and that.
security forces would not enter the area as long as
negotiations are in progress.
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