CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A022900010001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: March 9, 2004
• Sequence Number: 1
• Publication Date: September 28, 1972
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Department review completed
Secret
N2 41
28 September 1972
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No. 0233/72
28 September 1972
Central Intelligence Bulletin
VIETNAM: Situation report. (Page 1)
USSR: Exodus of Soviet Jews continues despite
education fees. (Page 2)
AUSTRALIA: Government aims to curb foreign take-
overs. (Page 3)
COLOMBIA-NICARAGUA: Island dispute. (Page 5)
CHILE: Inflation (Page 6)
JAPAN: Resumption of US wheat purchases (Page 6)
TOGO-CHINA: Diplomatic relations established
(Page 7)
AFGHANISTAN: Prime minister offers resignation
(Page 7)
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VL.ETNAM: There has been no substantial change
in Ace military situation in the past few days.
Communist pressure has slackened in some areas, but
has increased in others.
In the Quang Tri area, the communists have
resumed heavy shelling, firing several thousand
rounds of mortar and artillery rounds into govern-
ment positions in and around the provincial capi-
tal during the past few days. The barrages are
probably intended to help pin government units in
their positions while the enemy forces regroup and
form new defensive lines.
Communist pressure against threatened govern-
ment positions along the central coast has lightened
in the past few days, but several district capitals
are still largely surrounded by enemy elements.
A sharp drop in enemy-initiated actions has
occurred in Military Regions 3 and 4 during the
last few days. There are continued indications,
however, that Communist elements are moving supplies
and possibly small detachments of troops into posi-
tions in these military regions from which an in-
tensifi ation of military operations could be sup-
ported in mid-Septem-
ber a enemy was moving tan s and supplies
into the border area west of Tay Ninh. 1 -1
la heavily armed 500-man enemy
unit accompani c five tanks inside the border
in this area.
the enemy is moving supplies by all
available means, including porters and trucks, into
areas along the northern and western bor ers of
MRs 3 and 4.
28 Sep 72
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USSR: The exodus of Soviet Jews continues at
a siflnificant rate, despite last month's decree re-
quiring emigrants to reimburse the state for their
educations. It is still too early, however, to
determine the decree's overall effect on emigration.
in Moscow state that roughly
10 to 20 Jews a day are paying the new levy, and
guess that 20 percent of all working males who re-
ceive exit visas for Israel are affected. .25X1
also told US officials that 2,000 Jews emigrated
both in August and in September--a decrease of about
500 each month from the January-July average that
may in part be due to the summer vacation period.
The exit fee requirement is reportedly being
enforced uniformly throughout the Soviet Union.
Although the burden of the new law falls most
heavily on the Jews, other nationalities, including
Russians, have been affected. Furthermore, caprice
and arbitrariness in enforcement seem to have been
limited by the use of a written schedule of fees
applicable to specific types of diplomas. The
Soviets have not published the decree and refuse
to make the text available to foreign officials on
grounds that it is purely an internal matter.
Nevertheless, a purported text of the decree, re-
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agrees with earlier reports that the tees range
from 3,600 to more than 12,000 rubles, exclusive
of other fees. The fees are levied regardless of
age, sex, or ability to pay.
The Soviets have shown some sensitivity to
Western charges that the new law is discriminatory
and violates human rights, but there are no indica-
tions that Moscow is prepared to retreat on the issue.
The refusal to publish the decree or to bring it be-
fore the recent session of the Supreme Soviet--actions
which do not affect the validity of the law--raises
the possibility that if Moscow finds the pressure too
great, the law can be amended and published to refute
such allegations.
28 Sep 72
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AUSTRALIA: The government's newly announced
polity concerning the flow of investment into and
out of Australia is aimed at slowing the rapid
buildup of foreign exchange reserves and curbing
foreign take-overs of domestically owned firms.
Most restrictions on Australian investment
overseas--which has averaged less than $100 million
annually during the past several years--have been
removed. At the same time, foreign-owned companies
in Australia will be permitted to borrow there,
while Australian borrowing overseas will be limited.
Canberra hopes that these measures will ease pres-
sures for revaluation of the Australian dollar by
slowing the rapid accumulation of foreign exchange
reserves.
Attempts by foreign companies to gain control
of Australian firms will be screened by a new com-
mission until formal legislation on take-overs is
enacted. The problem of foreign control of Austra-
lian resources is still under review, but Canberra
probably will not significantly limit the inflow
of private capital. The government realizes that
this capital is essential to the nation's economic
development.
The McMahon government found it necessary to
take some action on these problems--particularly
that of foreign investment--prior to elections later
this year, probably in November. Foreign domina-
tion of Australian enterprises is an :issue that
has aroused considerable popular concern and which
the opposition Labo Part hopes to exploit in the
upcoming campaign.
28 Sep 72 Central Intelligence Bulletin
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Colombia and Nicaragua Dispute Reefs in the Caribbean
JAMAICA
Quita Sueno
Serrana
Roncador
i Isla de
an Andres
rase
BRAZIL
ILLEGIB
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COLOMBIA-NICARAGUA: Despite objections by
Nicer ag , Colombia has pointedly exercised its
claim to sovereignty over three tiny reefs in the
San Andres Archipelago.
- Although a visit this week by naval vessels
carrying the minister of defense and members of
the military high command to the Quita Sueno,
Serrana, and Roncador reefs has been termed "rou-
tine," the Nicaraguan Government and press see it
as provocative. Colombia's claim of sovereignty
dates from the early 19th century and was rein-
forced in 1928, when Colombia and the US signed a
treaty agreeing to joint sovereignty in the area
and Nicaragua signed a separate-protocol granting
Colombia sovereignty over the area. A new Colombia-
US treaty signed two weeks ago in which the United
States renounces its sovereignty--combined with
the belief currently held by both Colombia and
Nicaragua that there is oil in the disputed area--
has reopened the issue.
Ignoring the 1928 protocol with Colombia, the
Nicaraguan Government insists that it will defend
its sovereign rights by all means at its disposal.
Because Colombia refuses even to acknowledge the
existence of a problem, Nicaragua has been unsuc-
cessful in efforts to discuss the matter and is
-?
now preparing to turn to the Organization of Amer
ican States or the United Nations.
28 Sep 72
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)CHILE: Prices for basic foods and other es-
sential goods will be frozen on 1 October to slow
inflation. The government also has announced that
workers will receive a second wage bonus this month.
Combined with an anticipated cost-of-living wage
adjustment of about 80 percent in October, this
will greatly increase workers' purchasing power at
a time when supplies of goods are already inadequate.
The combination of higher wages and frozen prices
will widen the already sizable gap between supply
and demand and further undermine the market system
in Chile.
JAPAN: Tokyo, disturbed over the sharp rise
in US wheat prices, stayed completely out of the
market for about a month between mid-August and
mid-September. The Japanese, who usually make
weekly purchases in the US market, apparently hoped
the price would fall and initially considered sus-
pending purchases until January. With world wheat
prices still going up, however, and domestic stocks
equal to about a two-month supply, the government
purchasing agency has decided to resume purchases.
The Japanese buy about one half of their five-
million-ton annual import requirements from the US;
Japan has been the largest overseas market for US
wheat in recent years. Over the past year, however,
the Japanese have been turning increasin 1 to
Canada and ustralia.
(continued)
28 Sep 72
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TOGO-CHINA: An agreement was reached between
Togo and China to establish diplomatic relations
during the Togolese foreign minister's visit to
Peking in mid-September. Togo took the first step
a year ago when it announced its intention to rec-
(ognize Peking and voted for its admission to the
~ ,UN. The foreign minister admitted to the Nationalist
Chinese ambassador that an offer by Peking of a $45-
million interest-free loan was the determining in-
ducement for establishing relations. The loan
agreement presumably will provide credits to finance
projects. Although the Nationalist Chinese ambassador
has not yet been told to leave, Togo is not attempting
to follow the Senegalese formula of maintaining both
a PRC embassy and a Nationalist commercial office.
In the last two years, Peking has offered loans to
nearly a dozen African states to encoura e diploma-tic
k.recognition and support in the UN. L_ I
AFGHANISTAN: The King has rejected Prime Min-
ister Zahir's resignation submitted 24 September,
but reportedly will reconsider the matter next month
and may then replace Zahir with Foreign Minister
Shafiq. Zahir has been ineffective and frustrated
as prime minister and clearly has no desire to con-
tinue in office, having attempted to resign on
previous occasions. The ambitious Shafiq would
face many of the same problems--including an un-
clear grant of authority from the King and an un-
cooperative parliament--and might well. do no better
over the long run than his predecessor.
28 Sep 72
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