CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A010800040001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: September 5, 2002
• Sequence Number: 1
• Publication Date: February 7, 1968
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Top Secret
r ; r
$ C
7 February 1968
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 Approved For Release
17 February 1968
Central Intelligence Bulletin
CONTENTS
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Chile: President Frei's political isolation is
frustrating attempts to deal with chronic economic
problems. (Page 5)
Latin America - USSR: Four more nations may estab-
lish diplomatic and commercial relations with the USSR.
(Page 6)
Laos: Military situation (Page 7)
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Chile: President Frei's increasing political iso-
lation is frustrating his efforts to deal with the coun-
try's economic and political problems.
Last week, unable to rally support outside his
own party, Frei withdrew his crucial wage readjust-
ment bill, which would have provided for needed de-
velopment projects. Opposition parties, including
the strong Communist Party, refuse to deal with the
country's serious economic problems because such
action might strengthen Frei's party in the 1970 presi-
dential election. In addition, Frei is faced with open
rebellion by the far left wing of his own party and may
have to make extensive changes to strengthen the cabi-
net within a few months.
As the government searches for a new way to
stop Chile's chronic inflation, pressure will build up
to tap the profits of the US-based copper companies.
Such action would violate present investment a ree-
ments and discourage new foreign investment.
7 Feb 68 5
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Latin America - USSR: Four more countries
may establish diplomatic and formal commercial re-
lations with the USSR during 1968.
Venezuela, Ecuador, Peru, and Bolivia are influenced
by the reasoning of the other members of the regional
economic "Andean group." Chile and Colombia re-
stored relations with the USSR in November 1964 and
January 1968 respectively. All these countries are
seeking, perhaps with undue optimism, expanded mar-
kets for hard-to-sell commodities in order to ease
growing economic difficulties.
Several believe that expanding relations with the
USSR will further strain the Soviet-Cuban relationship.
the Andean countries may
also have the naive hope that through recognition of
the USSR as a group they could persuade the USSR to
put pressure on Cuba to halt intervention in South
America.
7 Feb 68
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NOTE
Laos: The Communists appear to be preparing for
a new offensive in the northern portion of the Bolovens
Plateau, North Vietnamese troops have reduced the
government's defensive perimeter around the provin-
cial capital of Saravane and have seized a number of
villages astride Route 16, the key overland route into
the lightly defended town. A ONorth Vietnamese
deserter claims the Communists intend to occupy
Saravane before moving on to :hit more important
government base camps at Lao Ngam and Ban Thateng.
Although Saravane does not play an important mili-
tary role in the area, its loss would have a serious
psychological impact on an already nervous leader-
ship in Vientiane.
7 Feb 68
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