CAMBODIA- -FRENCH-KHMER COMMUNIST RUBBER TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78S01932A000100190031-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: March 24, 1999
• Sequence Number: 31
• Publication Date: December 16, 1974
• Content Type: CABLE

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TO: IMMEDIATE WHITE HOUSE//SITUATION ROOM FOR MR FAZIO.Y
WARNING NOTICE SENSITIVE INTELLIGENCE SOURCES AND METHODS
INVOLVED
ITEM NO: WH- DATE: 16 DECEMBER 1974
SUBJECT: CAMBODIA---FRENCH-KHMER COMMUNIST RUBBER TRADE
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DURING THE
PAST THREE YEARS, THE KHMER COMMUNISTS HAVE ALLOWED RAW RUBBER
TO BE BOUGHT AND TRANSPORTED FROM PLANTATIONS LOCATED IN INSURGENT-
HELD TERRITORY TO KOMPONG CHAM FOR DELIVERY TO PHNOM PENH FOR
PROCESSING AND EXPORT BY THE FRENCH RUBBER COMPANIES. THIS
ARRANGEMENT HAS PROVIDED REVENUES NOT ONLY TO THE COMMUNISTS AND
THE FRENCH, BUT ALSO TO THE PHNOM PENH GOVERNMENT. RUBBER EXPORTS
ACCOUNT FOR MORE THAN 60% OF THE GKRPS FOREIGN EXCHANGE EARNINGS.
PERHAPS PROMPTED BY HIGH WORLD RUBBER PRICES AND THEIR OWN
TIGHT ECONOMIC POSITION, THE KHMER COMMUNISTS ANNOUNCED LAST
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CLASSIFICATION
S NF:D/CD
JULY 20 THAT ALL FOREIGN--OWNED {FRENCH} RUBBER PLANTATIONS LOCATED
IN INSURGENT TERRITORY WOULD EE NATIONALIZED EFFECTIVE IMMEDIATELY.
SUBSEQUENT NEGOTIATIONMrS WERE CARRIED OUT WITH THE FRENCH RUBBER
COMPANIES HEADQUARTERED IN PHNOM PENN THAT BUY THE RUBBER. UNDER
THE NEW ARRANGEMENTS, THE COMPANIES PURCHASE SPECIFIED AMOUNTS OF
RAW RUBBER FROM THE COMMUNeISTS IN EXCHANGE FOR STIPULATED COMMOD-
ITIES--GENERALLY FOOD AND FUEL--AND SMALL AMOUNTS OF CASH.
IT IS NOT KNOWN HOW MUCH RUBBER HAS BEEN DELIVERED TO PHNOM
PENH SINCE NATIONALIZATION. EXPORTS WERE HALTED DURING AUGUST
AND SEPTEMBER AND WILL ALMOST CERTAINLY BE BELOW THE 20,000
TONS SHIPPED OUT LAST YEAR. E-2 IMPDET.H
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16 DEC 74
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CIA OPS CTR
9340
E`EAAp~V Yed For Release? ~~ 41 iFE I ~~ Q~+(~ OO~I 1TI 019FF:CFH
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