CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A014300090001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 14, 2016
• Document Release Date: May 5, 2003
• Sequence Number: 1
• Publication Date: August 13, 1969
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
5 D:
13 August 1969
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No. 0193/69
13 August 1969
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
Cambodia: Sihanouk may have given the new prime
minx is er a freer hand. (Page 2)
Chile-Cuba: A Chilean commercial mission reportedly
is in Cuba. (Page 3)
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Zambia: The recent mining reforms probably will have
a gradual effect on the copper companies. (Page 6)
European Communities: A compromise has been reached
on adjusting agricultural policy. (Page 7)
Romania: Party congress (Page 8)
Jordan: Cabinet change (Page 8)
Nicaragua: Students take over university (Page 8)
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.Hue
CAM
RANH
SOUTH VIETNAM
MILES
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Demilitarized Zone
AVERAGE STRENGTH
OF ENEMY UNITS
Battalion:
VC
200 400
NVA
300- 500
Regiment:
Vc
1,000-1,500
NVA
1,2002,000
Division:
vc
5,000 7,000
NVA
5,0003,000
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C South Vietnam: The latest outbreak of coordi-
nated, countrywide enemy attacks appears thus far to
represent a further refinement of the economy-of-
force tactics used by the Communists in their last
several offensives.
A review of enemy action on the night of 11-12
August indicates that 137 allied bases and towns
throughout South Vietnam were shelled by rocket and
mortar fire. The targets included nearly every large
US command center in the country as well as the major
cities of Saigon, Hue, and Da Nang and the provincial
capital of Hoi An. Few of the bombardments, however,
exceeded 20 rounds of incoming fire, and resulting
allied casualties and damages were generally light.
The conservation of munitions evident in the shellings
suggests that, like similar "high points" in the past,
they were intended primarily for their political and
psychological shock value.
In keeping with the enemy's emphasis on the con-
servation of manpower, sapper and guerrilla forces
played the major role in the several sharp ground
attacks which developed in the latest fighting. Ac-
tion by large Communist main force units has thus
far been limited to some support and follow-up moves
in northern III Corps by elements of the enemy's 1st.
5th, 7th, and 9th divisions.
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Cambodia: General Lon Nol is organizing a new
government amid signs that Sihanouk has given him a
somewhat freer hand than past prime ministers.
Lon Nol's cabinet choices thus far are for the
most part politicians and technicians who share his
conservative political outlook. The major surprise
is Prince Sirik Matak, a forceful and independent
figure who has been openly critical of Sihanouk's
economic and foreign policies. Matak's decision to
join the government as first deputy prime minister
suggests that he expects it to be more than a rubber
stamp for Sihanouk.
Lon Nol has not yet chosen ministers for the
economy, an area where Sihanouk has called for
sweeping reforms, and which he claims will be the
principal testing ground for the new government. It
is also not clear whether Lon Nol, who will hold the
Defense Ministry portfolio, will retain his post as
commander in chief of the armed forces. In any event,
Sihanouk is still likely to reserve major foreign
policy decisions to himself.
Lon Nol will probably not face any serious
political opposition from the left because its in-
fluence in national politics has diminished sharply
in the past two years. He has a reputation for
dealing firmly with antigovernment elements, partic-
ularly the insurgents now active in the countryside.
He has also advocated more aggressive military coun-
termeasures against Vietnamese Communist incursions.
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Chile-Cuba: A two-man Chilean commercial mis-
sion reportedly is in Cuba to explore trade possibil-
ities.
The government has denied that this mission is
official, but both men represent government agencies.
They are accompanied by a former independent senator
who has long advocated resumption of ties between
Cuba and Chile. It seems likely that some members
of the Christian Democratic Party plan to use calls
for closer relations with Cuba to enhance the party's
credentials with leftist voters before the presiden-
tial election next year.
Havana would see a resumption of trade with
Chile as a ma?or setback to US and OAS policy toward
Cuba.
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Zambia: The recent mining reforms announced by
Press enntt KKaunda probably will have a gradual effect
on the operations of foreign-owned copper companies.
Kaunda stated on 11 August that his government
will end mining rights held in perpetuity by the com-
panies and will institute instead a system of 25-year
leases. The companies will be "invited" to sell 51
percent of their shares to the government which will
pay the companies out of future dividends.
This action is directed mainly at the two giants
of the Zambian copper industry, the Anglo-American
Corporation, controlled by British-and South African
interests, and the Roan Selection Trust, which has a
majority of US shareholders. The companies hold be-
tween them 64,000 acres of undeveloped mining conces-
sions. Kaunda believes these should be developed,
both to diversify the country's mineral production
and to open up areas which now have no industrial
development. He hopes that the new measures will
stimulate the present companies to develop the de-
posits, or he will find other companies willing to
exploit them.
Contrary to press accounts, the Zambian Govern-
ment will probably move cautiously to implement the
reforms. Copper accounts for over 90 percent of
Zambia's export earnings and over one half of the
country's gross national product. A decline in
copper profits would seriously jeopardize the economy.
Although the government's decision to exercise a
measure of control of the companies appears firm,
the means by which this will be accomplished and the
timing are not yet clear. In any event, foreign
management of the companies is likely to continue
for some time.
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European Communities: Dutch opposition to a
Commission proposal to adjust the Common Agricultural
Policy (CAP) to the devaluation of the franc resulted
yesterday in a compromise less favorable to France.
The Commission would have removed France from
the CAP's uniform pricing system for 28 months. The
Dutch fought hard for a short-term arrangement and
the resulting compromise exempts France during the
1969-70 crop year only. The exemption means that
France can avoid an inflationary rise in farm prices
which could otherwise have resulted from the deval-
uation. France will have to keep its import and ex-
port prices on CAP products. essentially unchanged by
granting import subsidies and levying export taxes.
The Commission will report on the implementation
of these measures by 30 November and will recommend
any necessary alternative solutions at that time.
The Council will decide on the Commission's proposals
before the end of the year.
A Dutch spokesman remarked that his country's
insistence on a compromise was partly to deny the
French a definite solution in order to keep the
pressure on them. Presumably, the Dutch have in
mind bargaining France's farm problems against dis-
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Romania: Ceausescu yesterday on the closing
day of the party congress advanced a number of his
young proteges into elite bodies of the party and
downgraded a few "old guardists." Ceausescu also
slightly enlarged the Hungarian minority representa-
tion in these bodies and provided for greater partic-
ipation by individuals from the military and security
organs. These promotions as well as Ceausescu's
opening day speech were designed to drive home the
message, notably to the Soviets, that Romania is
united and determined to adhere to its independent
.Jordan: Yesterday's cabinet change appears to
be little more than a reshuffle of familiar figures
on the Jordanian political scene. Bahjat Talhuni,
the new prime minister, who has headed several pre-
vious governments, has been criticized in the past
for venality and for failing to provide strong leader-
ship. His appointment continues to leave King Husayn
free to direct the affairs of state with little in-
terference. The retention of Muhammad Rasul Kaylani
as minister of interior signifies that the effort to
bring the fedayeen under control of the Jordanian
Government will continue.
Nicaragua: Students protesting alleged govern-
ment mistreatment of political prisoners have taken
over the National University in Leon. Their action
follows widespread coverage by the opposition press
and radio of charges by a woman member of a Communist-
dominated revolutionary organization that she had
been abused by the national guard. The situation is
being aggravated by a heated campus election campaign
in which Social Christian and Communist student
parties are vying to take the most extreme position.
President Somoza has already warned that student
violence could lead to government action against the
university.
13 Aug 69 Central Intelligence Bulletin 8
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The United States Intelligence Board, on 12
August 1969, approved the following national intel-
ligence estimates:
NIE 11/13-69
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SNIE 64.2-69 "Prospects for an Embargo
on Arms to Nigeria and
Biafra" I
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13 Aug 69
Central Intelligence Bulletin
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