CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A013700120001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: May 16, 2003
• Sequence Number: 1
• Publication Date: May 20, 1969
• Content Type: REPORT

Approved For$alease 2003/06/11 : CIA-RDP79T00971370012 01-6
secret
25X1
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
1'.
20 May 1969
Approved For Release 2003/06/11 : CIA-RDP79T00975A013700120001-6
 25X1 Approved For Release 2003/06/11 : CIA-RDP79T00975AO13700120001-6
Approved For Release 2003/06/11 : CIA-RDP79T00975AO13700120001-6
 Approved For Wease 2003/06/ffGA- P79T00975*13700120001-6
No. 0120/69
20 May 1969
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
Peru: US and European banks intend to increase sub-
stantially their lines of credit to Peru. (Page 2)
Brazil: Tension continues to build between the gov-
ernment and opposition forces. (Page 3)
Cuba-Chile: Castro seems to be trying to improve re-
lations with Chile's left. (Page 5)
Turkey: An attempt to restore political rights to
some former political leaders has strained military-
civilian relations. (Page 6)
Burma: The security situation along the northeast
Sino-Burmese border has deteriorated. (Page 9)
Rumania-Poland: Ceausescu visit (Page 10)
25X1
Argentina: Student demonstrations (Page 10)
Approved For Release 2003/06/8]L(WLfZFP79T00975A013700120001-6
 Approved For Releas V003/06/11SEa-R&W 00975A013709420001-6
25X1
Approved For Release 2003/06/11 : CIA-RDP79T00975AO13700120001-6
SECRET
 Approved For$g1ease 2003/06/1 $ 4 79T009754813700120001-6
C South Vietnam: Communist-initiated military
activity remained generally light throughout South
Vietnam on 18-19 May, but several large battles were
reported in scattered sections of the country.
The A Shau 'Valley continues to be the scene of
intense and bloody combat. A total of 125 enemy
troops, possibly from the North Vietnamese 29th
Regiment which has recently moved back into South
Vietnam from Laos, were killed by US forces on 18
May. Another 125 Communist troops were killed during
the course of two separate battles in Kontum Prov-
ince, also on 18 May. Enemy military pressure was
maintained in the Xuan Loc area on 19 May; a South
Vietnamese position there was struck by 60 rounds
of mortar and rocket fire.
I F7
20 May 69 Central Intelligence Bulletin
25X1
Approved For Release 2003/06/13 9T00975A013700120001-6
 Approved For Releaftd003/06/1 '~1i~-R0 79T00975A0137E1 420001-6
Peru: US and European banks intend to increase
substantially their lines of credit to Peru.
A group of US banks is about to sign a standby
credit package that will make $65 million available
to the Peruvian. Central Bank; a number of European
banks probably will sign similar agreements for
$25 million soon. The Peruvian Central Bank has
agreed not to draw on these credits for six months,
and the total $90 million would thus be available
to meet heavy debt repayment obligations of about
$100 million next year. Two US banks, moreover,
are reported to be willing to extend new loans to
Peruvian businessmen.
Signature of the new credit offers would im-
prove considerably both domestic and forei n confi-
dence in Peru's business prospects,
20 May 69 Central Intelligence Bulletin
25X1
Approved For Release 2003/06/1'YF&F-AW79T00975A013700120001-6
 SECRET
Approved For lease 2003/06/11 : CIA-RDP79T009754013700120001-6
Brazil: Political tension continues to build
between the government and disparate opposition
forces.
A student strike is in progress in Rio de
Janeiro, and police have arrested the presidents
of several student councils. On 16 May student pro-
testers took to the streets, despite police efforts
to block them, to denounce the government's forced
retirement of numerous popular professors. The gov-
ernment reportedly intends to retire another group
of professors within a few days, and this may add
fuel to the protests. In the northeastern city of
Recife, the army's continuing repression of "subver-
sive" students has angered many moderates who pre-
viously had supported the government.
Adding to the unsettled atmosphere is an affair
in which a military court sentenced a northeastern
priest to a year in prison for making "critical and
offensive" statements about the armed forces. This
is the first action against a priest since last De-
cember, when the government assumed broader powers.
The sentence seems likely to alienate even further
progressive churchmen such as Archbishop Dom Helder
Camara, who is already heavily involved in defending
the Recife students.
Undeterred by the signs of growing disaffection,
the Costa e Silva government issued Institutional
Act 10 on 16 May. The act extends and amplifies the
government's power to punish persons who lose their
political rights. The terms are so broad that if
vigorously applied they could bar such persons from
practically any gainful employment.
The government is also undertaking steps aimed
at a major restructuring of the political system--
specifically, measures designed to increase control
over elections, politicians, and parties prior to
20 May 69 Central Intelligence Bulletin 3
Approved For Release 2003/06AVCtP79T00975A013700120001-6
 Approved For Releas"003/06/1 ACris!`-R8PA79T00975A0137Q9120001-6
the reopening of congress, which may be announced
for 1 August.
The pattern of protest and reaction is not yet
broad enough to threaten the government's stability,
but it could lead to an increase in the tensions be-
tween hard-liners and moderates in the Costa e Silva
regime.
20 May 69 Central Intelligence Bulletin
Approved For Release 2003/06/' 6 . ?'79T00975A013700120001-6
 Approved For lease 2003/06/1 qI RDP79T0097h..O13700120001-6
Cuba-Chile: The termination of Havana's re-
gular propaganda broadcasts against the Frei admin-
istration suggests that Castro is attempting to im-
prove relations with Chile's left.
On 8 May Radio Havana dropped a program that
had been beamed to Chile six times weekly since
March 1966. The program, which was sharply criti-
cal of Frei and the Christian Democratic Party,
ended without explanation and was replaced by a
newscast.
A left-wing Christian Democrat senator who
visited Cuba in April may have influenced Havana
to end the program. Castro probably looks favor-
ably on the efforts by leftist members of the party
to reorient it and to promote re-establishment of
diplomatic relations between Chile and Cuba. The
move may be another sign of Havana's reappraisal
of the aggressive policies of 1966-67, and of an
interest in presenting a more respectable image in
Latin America.
20 May 69 Central Intelligence Bulletin
25X1
Approved For Release 2003/06/IE1] P79T00975A013700120001-6
 Approved For Releasar2003/06/1$ 79T00975AO137# 120001-6
Turkey: An attempt to restore full political
rights to individuals ousted by the military coup
nine years ago has reated a substantial threat to
political stabil:Ltyy
A government-sponsored bill to amend the con-
stitu ion to permit full amnesty for former political
prisoners, including former president Bayar, has
become the subject of widespread and heated debate
in both political and military circles, and has re-
vived the long-standing schism between the two. I
President Suna
as publicly claimed in a
ra io a ress a t ere is :no need for a change in
the constitution at this time. There is also spec-
ulation that Sunay may try to forestall the Senate
vote on the measure `b_y_ dissolving Parliament and
ordering new elections.
Major Opposition leader Ismet Inonu forced the
issue -days ago when he publicly announced his
party's support for a move to restore the political
rights of former Democrats. Inonu probably hoped
to be able to drive a new wedge between present gov-
ernment leaders and the military, and thus increase
the chances of his own Republican Peoples' Party
20 May 69
Central Intelligence Bulletin
25X1
25X1
25X1
Approved For Release 2003/06/8E? j 79T00975A013700120001-6
 Approved For$ (ease 2003/06IE3E 'EP79T00975,Q813700120001-6
coming to power with military sanction. Thus far,
however, Inonu has been sharply criticized by mili-
tary spokesmen for opening the controversy.\
Prime Minister Demirel has for some time faced
pressure from a pro-Bayar group within his Justice
Party, the successor to the banned Democratic Party.
He almost certainly initiated the bill in Parliament
with great reluctance and with full knowledge of the
rancor it would arouse in military circles. Having
protected his position within the party, however,
Demirel may now move to short-circuit final approval
of the bill by the Senate rather than chance military
intervention. A major exodus of senators from Ankara
apparently is under way in a probable effort to
prevent a quorum.
20 May 69 Central Intelligence Bulletin
25X1
Approved For Release 2003/06~t pP79T00975A013700120001-6
 SECRET
S .Jpp,fgveiLFor elea ~3/06/11 :CIA-RDP79T00975A0137Q 20001-6
U L U i ua ion on Ino- urmese Border Deteriorates
SIN IA
.Homafin
Lund ling
' A/on
hewbo
SHAi1`i
Taunggyi STATE
Loi ?'! Chiang Rai'
Nan.hti
fiNan
SECRET
 Approved For f Jease 2003/06/11SWA 9T00975 13700120001-6
Burma: The security situation along the north-
east Sino-Burmese border has deteriorated.
o~mmunist insurgents have forced governmen
troops to abandon a lengthy strip along the border,
where the Burmese military have sustained heavy
losses since March. The Burmese Government has
never exercised firm control in this area because
of the army's caution about approaching the Chinese
border and the difficult terrain.
25X1
A government-owned newspaper alluded to the
situation for the first time on 15 May by reprinting
without comment foreign news; accounts of alleged
Chinese Communist incursions in northeast Burma.
Such oblique presentation is often used by the
heavily restricted Burmese press to inform the pub-
lic of sensitive news.
Burmese Army discounts the presence of
Chinese Communist troops in Burma, although it
recognizes that Peking provides some training and
equipment to the insurgents. Reports of the pres-
ence of Chinese Communist troops appear to stem
from the fact that the rebels in Burma include
ethnic Chinese who have long been resident in Burma.
There may also be some ebel recru' from the Ch'-
se side of the bord
20 May 69
Central Intelligence Bulletin
25X1
Approved For Release 2003/06/1SE 79T00975A013700120001-6
 Approved For Releases003/06/11SXCAMPT79T00975A0137QW20001-6
Rumania-Poland: Rumanian party leader Ceausescu
arrived in Warsaw yesterday for a "friendly" visit
in what is apparently another round--Ceausescu went
to Moscow last week--in Bucharest's politicking in
advance of the International Communist Conference.
This is Ceausescu's first visit to Poland since he
took over as head of the party in 1965. The Ruman-
ians apparently want to smooth over differences they
have had with the Poles on a variety of international
and bilateral issues. Warsaw's irritation at Bucha-
rest's recognition of Bonn in 1967 and at the Ruman-
ians' negative attitude toward the occupation of
Czechoslovakia has been played down recently.
Argentina: State universities in five provin-
cial cities closed yesterday as authorities prepared
for a wave of antigovernment student demonstrations
precipitated by the death of at least one student
who was shot by police during a protest meeting last
week. This was the first serious university fracas
since soon after President Ongania came to power
in 1966. His government is prepared to deal firmly
with further outbursts, and the students do not ap-
pear ready for a showdown with the government at
Central Intelligence Bufiet-in
25X1
25X1
Approved For Release 2003/06/1'3 9T00975A013700120001-6
 25X1 Approved For Release 2003/06/11 : CIA-RDP79T00975AO13700120001-6
Approved For Release 2003/06/11 : CIA-RDP79T00975AO13700120001-6
 Semoved For Releas9003/06/11 : CIA-RDP79T00975AO137-W20001-6
Secret
Approved For Release 2003/06/11 : CIA-RDP79T00975AO13700120001-6