CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A019700050001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 15, 2016
• Document Release Date: February 25, 2004
• Sequence Number: 1
• Publication Date: August 6, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N2 42
6 August 1971
State Department review completed
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No. 0187/71
6 August 1971
Central Intelligence Bulletin
CONTENTS
MALTA-NATO: Negotiations. (Page 1)
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MOROCCO: Dismissal of the cabinet. (Page 3)
CHILE: Split in the Radical Party. (Page 4)
INDIA: Call for action against foreign oil companies.
(Page 5)
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WEST PAKISTAN: Pessimism of businessmen (Page 6)
YEMEN (SANA): Return of commander in chief from
Cairo (Page 7)
TURKEY - COMMUNIST CHINA: Recognition (Page 7)
TURKEY: Concern over acts of violence (Page 8)
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MALTA-NATO: The North Atlantic Council yester-
day made s stantial progress toward putting together
a cash package for the British to offer to Malta.
Prime Minister Mintoff, meanwhile, has talked to the
Libyans about the assistance they would be willing
to offer.
Four NATO members--the UK, the US, the Nether-
lands, and Italy--have agreed to contribute a total
of $10 million toward the cash package. The British
hope that the pledges of the other members will bring
the package to.$15.6 million, and that it can be of-
fered to Mintoff next week, along with a separate
promise of development aid. Whether the cash package
reaches the desired figure largely depends on the
current maneuvering between the British and the West
Germans. Bonn has said that it is ready in principle
to pay its share of the cash contribution but it
thinks London should bear a larger part of the bur-
den. Mintoff's demands for an annual cash payment
have ranged from $48 to $72 million.
As a result of recent high-level Maltese visits
to Libya, the prospects for an imminent economic
agreement between the two countries are good.
Shortly after the return of the latest Maltese del-
egation, Mintoff himself made a surprise one-day
visit Wednesday to Tripoli. His trip doubtless was
intended to resolve problems which had prevented the
signing of an agreement by the delegation.
It he two
countries were on the verge of signing an agreement.
At the last minute, however, a dispute developed
within the Maltese delegation over an unspecified
aspect of the agreement and Mintoff ordered it to
return immediately for consultations.
Although the delegation member refused to be
drawn out on the problem, he did express concern over
the stability of. the Libyan regime. He also men-
tioned that Tripoli had requested refueling rights
in Malta for Libyan military aft and naval ves-
sels. F -1
6 Aug 71
Central Intelligence Bulletin
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MOROCCO: King Hassan has taken a first step
toward coping with the manifold economic and social
problems that underlay last month's coup attempt.
On Wednesday evening the King announced the dis-
missal of the director general of his personal staff
and the entire council of ministers, including the
prime minister. The new government, when it is
formed, will be "provisional and transitional" to
serve for about a year or 18 months. The King pledged
that he would delegate to it executive authority to
carry out a large-scale reform program, specifically
citing the reorganization of commerce, industry, ag-
riculture, and other economic activities to attain
amore equitable distribution of wealth.
It is still unclear how far the King intends to
go or whom he will tap to head this transitional gov-
ernment. Much will depend on whether he can persuade
competent but respected Moroccans untainted by cor-
ruption to take on the task. A simple reshuffling
of portfolios, such as has characterized most other
government changes during the last decade, would not
provide the impetus needed to plan or implement es-
sential reforms.
6 Aug 71 Central Intelligence Bulletin 3
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CHILE: The resignations from the Radical Party
of nearly half of its legislators will complicate
President Allende's political balancing act.
The 12 dissident deputies and senators speak
for a faction defeated at a recent convention of the
Radical Party (PR), which is the only significant
non-Marxist party in Allende's Popular Unity (UP)
coalition. At the convention the PR adopted Marxist
ideology in all but name, and the party was com-
pletely restructured to give its leftist, leadership
tight central control. Allende reportedly made a
major effort to avert the breakoff of the centrists,
who call themselves the Independent Radicals and
have fairly strong electoral bases. Despite the
PR's decline from Chile's major party to only eight
percent of the vote in April's municipal elections,
it has provided Allende with a vital electoral mar-
gin and the justification for claiming that the UP
is not strictly Marxist.
The President may try to shore up this image
of non-Marxist pluralism by soliciting support from
the Radical defectors and the leftist group that re-
cently broke from the Christian Democratic Party.
This, however, will be difficult to accomplish with-
out exacerbating internal dissensions that already
strain the six-member UP.
One of the major differences is whether to try
to force a plebiscite in order to dissolve congress
and create a unicameral "popular assembly." The In-
dependent Radical legislators reportedly oppose both
that initiative and any move to hold legislative
elections earlier than March 1973. Allende, too,
may feel the push for an early plebiscite is mis-
taken.
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6 Aug 71
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INDIA: Parliament and the press, which have re-
peatedly criticized foreign oil companies, are now
demanding government action against these companies
to counter crude oil import price increases above
the level agreed at the Tehran settlement earlier
this year.
The minister for petroleum and chemicals has
responded to the demands by noting that nationaliza-
tion of the foreign oil companies, equity participa-
tion, or a revision of existing refinery agreements
to permit the government greater latitude in import-
ing oil are all under consideration. The finance
minister is reported to have assured a government
committee studying the problem that sufficient funds
are available to finance whichever course is decided
upon.
Nevertheless, India's heavy dependence on crude
oil imports, which now amount to about $140 million
annually and are expected to more than double by
1975, as well as its current dispute with Pakistan
is likely to prevent the government from being stam-
peded into any immediate moves. The defense minis-
ter reportedly has cautioned that this is not the
time to "rock the boat" on petroleum.
6 Aug 71
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NOTES
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WEST PAKISTAN: Businessmen do not share the
government's sanguine short-run outlook for the
economy in the West wing. They are concerned about
the threat of war with India, continued instability
in East Pakistan, uncertain prospects for foreign
aid, and higher taxes. Disrupted cash inflows from
the East wing are causing financial difficulties
for them and in mid July the Karachi Stock Exchange
sensitive index was at its lowest point since Jan-
uary 1965. President Yahya Khan's chief economic
adviser, nevertheless, is encouraged because ex
port
markets have been found for a large share of th
e
goods previously sold to East Pakistan. He not
es
one element of optimism among businessmen. He
claims
they believe that by early next year they will
be
able to export elsewhere almost all such goods.
This
expectation, however, may not be fulfilled.
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(continued)
6 Aug 71 Central intelligence Bulletin
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YEMEN (SANA): Commander in chief Hasan al-Amri
may be returning tomorrow to Yemen from Cairo to form
a new government. The reported return of the oppor-
tunistic general follows apparently fruitful talks
with Yemeni officials last week in Cairo, where they
had stopped over on their way back from the recent
A
rab summit conference in Tripoli.
last week seven "left-wing army o icers
were arrested for plotting to impose military rule
in Sana. Whether al-Amri takes on the premiership
now will depend on the degree of support he can muster
from conservative lements in the army.
I
TURKEY - COMMUNIST CHINA: Turkish recognition
of the People's Republic of China (PRC) was announced
in a joint communique yesterday. Ambassadors, how-
ever, reportedly will not be exchanged until early
next year. The communique characterized the PRC as
the "sole legal government of China," a phrase used
in recognition statements by several governments.
Although Ankara indicated at the same time that it
intends to vote for the admission of the PRC to the
UN this fall, the Foreign Ministry has stated pub-
licly that Ankara will oppose any move to expel the
Chinese Nationalists. Recognition was not without
opposition in Turkey. This came too late to alter
the timetable, but the Brim government has neverthe-
I left itself, en to domestic criticism.
6 Aug 71 Central Intelligence Bulletin
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TURKEY: Martial law authorities are exercised
over recent acts of violence, including the spectac-
ular robbery of a bank truck in Izmir and an explosion
that severely damaged a student hostel in Istanbul,
which they view as a deliberate challenge to their
ability to maintain law and order. These acts have
been attributed to members of the Revolutionary Youth
Federation. The military authorities are particularly
sensitive to any suggestion that they cannot prevent
politically inspired violence, and to reduce publicity?
have ordered the press not to identify any criminal
act as politically motivated. Any increase in vio-
lence could lead to more stringent security measures
including curfews and personal document checks.
6 Aug 71
Central Intelligence Bulletin 8
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