WEEKLY SUMMARY

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CIA-RDP79-00927A004800070001-4
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RIPPUB
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S
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37
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December 21, 2016
Document Release Date: 
June 2, 2008
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1
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Publication Date: 
March 26, 1965
Content Type: 
SUMMARY
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GROUP I Excluded from automatic downgrading and declassification Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 25X1 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET (Information as of 1200 EST, 25 March 1965) Page VIETNAM Despite last week's step-up in air strikes against the North, Communist reaction remained confined to relative- ly pro forma denunciations. More heated was the reaction to US activity against the Viet gong in the South, and the bloc is acting in unison in condemning use of non- lethal gas there. Peiping gave prompt propaganda support to the Viet Cong call for foreign assistance, but hedged somewhat over sending troops by tying such a move to a bid from the "South Vietnamese." Peiping continues to take a hard line on negotiations. The current lull in Viet Cong activity is reminiscent of those noted before the battles of An Lao and Binh Gia and the raid on US forces at Pleiku. PROGRESS ON ECONOMIC REFORM IN THE USSR Continuing public discussion shows that many fundamen- tal disagreements remain and suggests that reforms will be made gradually and with considerable opposition and revision. RUMANIAN LEADERSHIP CHANGES Following the death of party first secretary and State Council president Gheorghiu-Dej, key posts were quickly filled--apparently Moscow was not consulted--by men gen- erally considered to have been among the architects of Rumania's independent course in the Communist world. 26 Mar 65 CURRENT INTEf Gc#&~EEKLY SUMMARY Page i Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SECRET THE COMMUNIST WORLD (continued) Page EFFECTS OF MOSCOW CONSULTATIVE CONFERENCE IN EASTERN EUROPE 8 East European leaders now believe more strongly that the determination of future policies affecting their countries rests primarily with themselves, rather than with some new international Communist organizational mechanism. CHINESE COMMUNISTS STEP UP WAR OF WORDS WITH MOSCOW Their vituperative attack in the 23 March issues of People's Daily and Red Flag--their first extensive commenf-o the recent "'consultative"" conference in Moscow--makes it clear they intend to press forward with a no-holds-barred polemical assault on the new Soviet leadership. AS IA-AFRICA ANTI-AMERICAN CAMPAIGN CONTINUES IN INDONESIA In addition to taking control of American-owned oil companies, the Indonesian Government has permitted in- creasing harassment of the local American colony. MODERATES WIN ELECTIONS IN CEYLON Prime Minister Bandaranaike's leftist coalition was defeated in the voting on 22 March,, and moderate for- mer prime minister Dudley Senanayake will form a new government. NEW THREAT OF TURKISH MILITARY INTERVENTION IN CYPRUS Ankara's armed forces remain in a high state of readi- ness, and Cypriot President Makarios has refused to stop importing heavy military equipment. Athens has rejected the idea of negotiations until after the UN mediator issues his report, probably next week. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page ii Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SE CW~,T ASIA-AFRICA (continued) Page DEVELOPMENTS IN THE CONGO Leopoldville's military operations are meeting little resistance at the moment, although trouble may be build- ing up in the eastern Congo near Lake Tanganyika. Mean- while, national provincial elections, scheduled to last until 30 April, have begun. SOMALI-ETHIOPIAN HOSTILITY FLARES AGAIN Although the Somali Government charges that Ethiopia is moving troops and creating incidents in disputed areas, the Somalis themselves seem to be stirring up most of the trouble, partly for domestic reasons. EUROPE FRENCH ELECTIONS CONFIRM LOCAL APATHY TOWARD GAULLIST PARTY 16 Even on the Paris city council, where they scored rela- tively well, the Gaullists just barely outnumber the Communists and will have to work with an anti-Gaullist "center" group in order to elect a council president and administer the city. ATLANTIC NUCLEAR FORCE DISCUSSIONS In response to British efforts to get ANF talks started again in a multilateral forum, Bonn, Rome, and The Hague have agreed such talks could be held in the existing Paris MLF Working Group--probably not before May. EUROPEAN POLITICAL UNITY TALKS IN PROSPECT EEC members generally welcome Italy's invitation to hold foreign ministers' discussions in Venice this spring on European political unity, but there is some concern over possible French tactics. SPANISH GOVERNMENT RISKS FURTHER STUDENT UNREST Student demonstrations are likely to resume following a virtual turndown by the Council of Ministers of de- mands for democratic reforms in the Spanish University Syndicate. WESTERN HEMISPHERE ECUADOR ATTEMPTING TO REVIVE BORDER DISPUTE WITH PERU 19 Ecuador has been preparing diplomatically to try to bring before the Extraordinary Inter-American Confer- ence scheduled to open on 20 May its claim that the Rio Protocol is void. This 19,62 protocol established boundaries between Ecuador and Peru, disputed since 1822. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page iii Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 N%W "%.W SECRET WESTERN HEMISPHERE (continued) Page HONDURAN ASSEMBLY MAKES LOPEZ "CONSTITUTIONAL PRESIDENT" 20 Even moderate factions of the Liberal Party, whose del- egates had boycotted the first several sessions of the government-rigged assembly, may now feel compelled to join Communists and opposition labor elements in at- tempts to overthrow the Lopez regime. TRINIDADIAN GOVERNMENT MOVES AGAINST LABOR AGITATORS 20 It has introduced a bill--which seems certain of early passage--designed to reduce the power of leftist union leaders who have plunged Trinidad into a lengthy period of labor unrest. SAO PAULO MAYORALTY ELECTION ENCOURAGES BRAZILIAN GOVERNMENT 21 The Castello Branco administration, confident that the mayoralty outcome reflects public acquiescence in its basic programs, will apparently resist further hard- line pressure to postpone all state elections. BOLIVIAN POWER STRUGGLE THREATENS NEW VIOLENCE 22 The clandestine rivalry between junta president Barri- entos and armed forces commander Ovando burst into the open this week and is threatening to resolve itself by violence. Barrientos? position seems to be the strong- er at the moment. SE CRE T 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page iv Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Swo, *0 CHIN:A HANOI A O S Phu Van upply i and`ammodepot ,V.inh..Son radar..... NORTH VIETNAM RECENT US AND SOUTH VIETNAMESE STRIKE TARGETS ,Dong Hoi radar Vinh Linh radar Vu Con ba,r ckks , DEMARCATION LINE r5 BOOTH 26 MARCH 1965 47100 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET The pace of the air war against North Vietnam quickened this week as five strikes against DRV military targets were con- ducted by US and South Vietnam- ese planes. The large ammunition and supply depot at Phu Van was hit first on 19 March with excel- lent results. Nearly half the 75 buildings in the target areas were destroyed, and many more heavily damaged. The next strike was conducted against the Vu Con barracks on the 21st. This tar- get is believed to be a staging site for the Viet Cong infiltra- tion network. Following the Vu Con at- tack, US and South Vietnamese strike aircraft were directed against DRV radar stations. Three sites were hit Poststrike photo- graphs show that considerable damage was done to the radar in- stallations at Vinh Son and Vinh Linh, although both radar towers remain intact. Results of the strike against the Dong Hai radar site are not yet available. Af- ter the Vinh Linh and Dong Hoi attacks, the strike aircraft ranged north along Route 1, us- ing their remaining ordnance on targets of opportunity. Despite the step-up in the air strikes, Communist politi- cal reaction continued to be con- fined to relatively proforma de- nunciations. Hanoi propaganda in part stressed the theme that normal economic effort in the DRV should be disrupted as lit- tle as possible by civil defense preparations in connection with the strikes. Much more heated was the Communist political reaction to US activity against the Viet Cong in South Vietnam. In a ma- jor pronouncement on 22 March, the president of the Viet Cong's Liberation Front denounced the US bombing of insurgent concentra- tions and the landing of US com- bat forces in South Vietnam. The expanded US role in the war, according to the pronouncement, justified a Viet Cong call for foreign assistance in the form of weapons and other war ma- terials. The front spokesman also warned that the Viet Cong will ask for "troops and youths" from abroad if the US continues to send forces to South Vietnam and further expands the war. Peiping gave prompt propa- ganda support to the Viet Cong's open call for foreign assist- ance. The People's Daily edi- torial on march 1she most explicit warning thus far con- cerning possible Chinese mili- tary intervention. People's Daily declared that a inese people" will jo:Ln in sending "all necessary material aid, including arms and all other war material, to the Viet Cong." The editorial took a more cautious line on the question of sending Chinese SE CRET Page 1 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET troops, however, by asserting that Peiping was ready for this step "whenever the South Viet- namese people want them." The most recent Viet Cong statement implied that such a call for as- sistance would come only if the US continues to send its own forces to Vietnam and "expands" the war further. The Chinese editorial quoted the Liberation Front statement that "all negotiations with the US imperialists at this moment are utterly useless if they still refuse to withdraw from South Vietnam all their troops and all kinds of war material and means and those of their satellite countries ...11 and endorsed, it as a "clear and definite answer" to US "war blackmail." Although this still leaves Peiping room for maneuver on the conference question, it moves the Chinese closer to a public commitment on preconditions for talks. According to press reports from Peiping on 24 March, a sen- ior Chinese official told Japa- nese correspondents that negotia- tions were impossible as long as the US bombing attacks against the DRV continued and US troops remained in South Vietnam. This statement, if correctly quoted, goes beyond the more ambiguous Chinese position in earlier com- ments that "peace" in Vietnam is out of the question prior to a US withdrawal. 26 Mar 65 Hanoi has rebroadcast the Viet Cong appeal, but has of- fered no substantive response of its own as yet. Earlier in the week the North Koreans had reiterated their willingness to send "all types of material aid." Pyongyang has not hinted, how- ever, that it plans to send men to fight in Vietnam. For the first time, a So- viet leader has hinted at the possibility of Soviet "volun- teers." In a 23 March speech, one of the USSR's toughest on Vietnam, party leader Brezhnev also attacked US "acts of ag- gression" against the DRV and again intimated that Soviet-US relations will suffer a further deterioration if the US main- tains its present policy in Vietnam. He maintained that al- though the USSR is not against "good relations" with the US, it will not tolerate any en- croachment on its legitimate interests or on the security of its friends and allies. In an oblique reaction to recent Chinese charges of a Soviet SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 2 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 N.r SECRET sellout on Vietnam, Brezhnev concluded that "we shall never make these interests the sub- ject of a deal with anyone." The bloc states are acting in unison on the use of non- lethal gas against the Viet Cong. Editorials and commentaries from Hanoi, Peiping, and Moscow have depicted the gas as "poisonous," and have assailed its use as "inhuman" and a "monstrous crime" against all the Vietnamese people. Their goal is appar- ently to generate as much anti- US sentiment as was sparked by Communist "germ-warfare" charges during the Korean war. Communist Military Developments There is as yet no evidence to confirm an assertion by So- viet leader Brezhnev on 23 March that the USSR is "already" as- sisting the DRV in building its defense potential. E2evelopments in South Vietnam The political situation remains outwardly quiet in Saigon. However, friction and rivalries persist among top military and civilian officials and Buddhists and Catholics continue to view each other with distrust. Premier Quat, SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 3 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET vftw now on his first major provin- cial tour in the northern prov- inces,,continues to have at least the current support of the Buddhists as well as the cooperation of the military. Some generals are grumbling quietly, however, over the lack of dynamic action by the govern- ment so far. Concern among the military over an early challenge to the position of General "Little" Minh as armed forces commander appears to have diminished fol- lowing confirmation of his status by a meeting of the Armed Forces Council on 20 March. The meeting may have the effect of exacerbating religious frictions in view of the fact that the three top military positions now are held by Catholics, while an allegedly pro-Buddhist gen- eral has been put in charge of personnel on the Joint General Staff. Buddhist leaders, how- ever, continue to give the im- pression that they intend to avoid any major political in- volvement unless their organiza- tion is threatened Viet Cong armed attacks, terrorism, and sabotage declined considerably during the past week, as Communist forces throughout South Vietnam appeared to be avoiding contact with major government units. Similar lulls have been noted periodi- cally in the past. The Viet Cong may be holding their forces in check to consolidate recent gains, to resupply and replace combat losses, to assess re- cently increased American and Vietnamese air operations di- rected against concentrations of their forces, and to plan new attacks. The current rela- tive inactivity is reminiscent of the lulls noted before the battles of An Lao and Binh Gia and the raid on US forces at P:leiku. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SECRET The Communist World PROGRESS ON ECONOMIC REFORM IN THE Since the change of Soviet leadership last fall there has been an acceleration in discus- sions that may lead to signifi- cant changes in the economic management of the USSR. As many fundamental disagreements remain, however, whatever changes take place will prob- ably be introduced only grad- ually, and with considerable opposition and revision. As of mid-February, Pravda claimed to have received a ou 600 responses to a proposal made last August that an enter- prise's performance should be judged by profit, not output. Pravda's account of these re- plies indicated that the major- ity of the correspondents be- lieved that production could improve if managers were given more autonomy and were judged by the profits they earned. The opponents--those who fa- vored continued central direc- tion and retention of volume of production as the major suc- cess indicator--were clearly in the minority. The strength of this op- position, however, is apparent in the recently published rec- ommendations of a commission appointed by the Academy of Sciences. This commission specifically noted that profit is only one of the important success indicators which must be used along with other cri- teria to measure the total value of production. The report omit- ted any reference to wider use of volume of sales, which has been; paired with profitability as the basis for judging the success of a current experi- ment in the textile industry. Regime support for this experi- ment is indicated by plans to extend it to more than 500 light industrial plants this year. In calling for additional studies and experimentation as we'Ll as for research on the pri- ority ranking of performance in- dicators, the recommendations of the commission reveal an in- ability to reach agreement on how to implement the various suggestions that have been made in recent months. Consequently, any decisions to go beyond the innovations of the textile ex- periment would be premature until these questions have been more fully resolved. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 1%w "W I I VICE MAURER FIRST VICE FIRST SECRETARY: CEAUSESCU PRESIDENTS: BUNACIL PRESIDENT: APOSTOL PRESIDENT: VOITEC NINE VOITEC SECRETARIES: MEMBERS EIGHT TWO VICE PRESIDENTS CHIVU STOICA SECRETARY: GEAMANU VICE PRESIDENTS DALEA FOUR 465 DEPUTIES RAUTU ALTERNATE EIGHTEEN NICULESCU-MIZIL MEMBERS MINISTERS VERDET Names in red indica-e changes resulting from death of Gheorghiu-Dej Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET The Communist World RUMANIAN LEADERSHIP CHANGES The new Rumanian regime will probably continue the independent policies inaugurated under the late party first secretary and State Coun- cil president, Gheorghe Gheorghiu- Dej. Following his death, the key posts were quickly filled, appar- ently without consultation with Mos- cow, by men generally considered to have been among the architects of Rumania's new course. The new party first secretary, Nicolae Ceausescu, who was probably hand picked by Dej, is a 47-year-old former central committee secretary. He reportedly exercised considerable control in the party as Dej's chief of personnel and organization. He is a totally committed and national- istic Communist, but it is question- able whether he has Dej's political ability to concentrate power in his hands and gain the unconditional sup- port of the party hierarchy. In internal affairs, Ceausescu apparently will support the current thaw in regime control over the in- tellectuals. All indications are that the first secretary, along with the new State Council president, 56-year-old Chivu Stoica, will pursue Rumania's independent line in foreign affairs. Stoica, like Ceausescu, is a central committee secretary. Both are veterans of international Communist gatherings, and both went to Pei- ping last March with Council of Min- isters President Ion Gheorghe Maurer for talks with top Chinese Communists on the Sino-Soviet dis- pute. With his appointment to what Is largely a ceremonial job, Stoica, whose importance has been waning in recent years. may suffer a fur- ther diminution of his power. Maurer, 63, is considered to have been the regime spokesman dur- i.ng the past two years. An able administrator, he was re-elected premier last week and will retain his responsibilities-as head of gov- ernment. Listings of party lead- ers during Dej's funeral rites place him second behind Ceausescu in or- der of importance. The party also elevated Alex- andru Birladeanu to full politburo status and chose three new central committee secretaries. Birladeanu, an economist in whom Dej placed a great deal of trust, represented Ru- mania at meetings of the bloc's Council for Mutual Economic Assist- ance (CEMA) where Bucharest's in- dependent policies were first mani- fested. The net effect of these changes appears to be to emphasize the technical-administrative character of the party secretariat25X1 The strength of the Rumanian :Leadership during the past decade-- and in particular as it has estab- 7Lished its independence from Moscow ---has stemmed from its unusual unity and relative stability. The new :Leadership appears to reflect a ju- dicious effort to continue in power those elements that have contributed to the evolution of the Rumanian position in the bloc. In speeches during the 24 March funeral pro- 25X1 ceedings, both Ceausescu and Maurer emphasized "collective leadership." SECRET Page 7 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 i%ftw SECRET The Communist World Eastern European leaders apparently have concluded that a break with the past took place at the 1-5 March "con- sultative meeting" of 19 Commu- nist parties in Moscow. They now believe more strongly that they themselves rather than some new international Commu- nist organizational mechanism, must determine future policies affecting their countries. Marked by dissension and lacking any meaningful com- mon ground, the meeting pro- duced a communiqud pointedly designed to be broadly inter- preted by the Ea.stern European parties. The differences in interpretation already apparent suggest that the document it- self contains the seeds of fur- ther discord. The diverse reactions of the East Europea.n leaders to the conference reflect their na.tiona.l interests. Polish politburo member Zenon Kliszko made the most explicit state- ment on the meeting. He told a plenary session of the party central committee on 17 March that "uniform interna.tiona.l organization of the Communist movement, with an international center of lea.dership, does not exist, and...its existence is out of the question." Kliszko made clear that the future "unity" of the Com- munist parties could not be won with "oinding resolutions" drawn up at international meet- ings. In effect, he urged a new style of relations among Communists based on a. voluntary association of parties. They could hold international meet- ings, but only to set the broadest common policies such as "coordinating strategy (not ta.ctics)in the struggle against imperialism." By implication at least, a.Lthough for different reasons, the East German regime has a similar view to that of the Poles which, in turn, approaches that of the uninvited Yugoslavs. Czechoslovak reaction to the meeting heavily stressed its negative a.spects, suggesting that the Prague regime agrees with these positions. Rumania's party--which along with Albania's declined to attend--barely men- tioned that the meeting was held. The Hungarian regime has reacted cautiously so far and issued no original commentary. Failure to do so suggests that Budapest is examining again the import for itself of the evolv- ing state of relations within the Soviet bloc. In contrast to other East Europeans, the Bulgarians chose to re-emphasize their "undying loyalty" to_the Soviet party and a world-wide need to strug- gle for "purity," that is, uni- formity, in ideology. This probably reflects the belief of the Bulgarian leadership-- deeply dependent on Soviet sup- port--that this line is what Moscow still wants to hear. SECRET!' Page Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SECRET CHINESE COMMUNISTS STEP UP WAR OF WORDS WITH MOSCOW Neither Kosygin's Consulta- tions in Peiping last month nor the confrontation between US and Communist forces in Vietnam has brought Communist China and the USSR any closer together. The vi- tuperative anti-Soviet attack in the People's Daily and Red Flag issues of -a-rrch makes_1t-cTear that Peiping has every intention of pressing forward with a.no-holds- barred polemical assault on the new Soviet leadership--a.n assault which the Chinese now claim could last "10,000 years." In its first extensive commen- ta.ry on the recent "consultative" conference in Moscow, Peiping flatly rejects the Soviet plea for an end to polemics. The Chinese claim that by the very act of con- vening the Moscow meeting the So- viets have made it necessary for Peiping to "openly" criticize the "'more cunning" revisionism of Mos- cow's new leaders. They contend that preparations for "a success- ful meeting for unity," which at one time might have required four or five years, now will require "twice as long, or even longer." The latest Chinese blast de- mands that the Soviets capitulate on all major issues in dispute and publicly admit that the recent Moscow meeting was "wrong and il- legal." It rings all the changes on the theme "Khrushchevism with- out Khrushchev," alleging that Mos- cow's leaders have taken over Khru- shchev's revisionism "lock, stock, and barrel" and that the "consulta- tive" gathering was in fact the "self-same illegal and schismatic meeting ordered by Khrushchev." The Chinese clearly view the new Soviet leaders' efforts at bloc unity and the decision to hold the March meeting as oblique thrusts at Peiping itself and im- plicit challenges to China's pre- tensions as the leader of mili- tant revolution in the Communist world. The Chinese also appear seri- ously concerned over the possibil- ity of Soviet-US collusion in reaching a. Vietnamese settlement which not only might save face for Washington but avert the major po- litical and military defeat which Chinese leaders contend is inevi- table in the long run. The Peo- ple's Daily - Red Flag commentary bitterly attacks'-"fraudulent" So- viet policy, castigating Moscow for "sham" support on Vietnam and for "plotting peace talks." It belittles the statement on Vietnam issued during the Moscow meeting and again berates the USSR for al- leged brutality against Chinese students who participated in the 4 March anti-American demonstra- tion in Moscow. The harshness of Peiping's tone suggests that even if Sino- US relations deteriorate sharply in the months ahead because of Vietnam, there is little likeli- hood of any real Sino-Soviet rap- prochement. China's leaders are probably now convinced that the basic attitudes of Khrushchev's heirs have not and will not change and that any hardening in Moscow's relations with Washington as a 25X1 result of the crisis in Vietnam will be only a. temporary tactic. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 9 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SECRET ANTI-AMERICAN CAMPAIGN CONTINUES IN Largely as the result of Com- munist pressures, the Indonesian Government on 19 March placed all foreign-owned oil companies under its control. These include the three American-owned companies-- Caltex, Stanvac, and Pan-American --and a Dutch subsidiary of Shell. The government has appointed cus- tody-control teams for each com- pany, and has stated that manage- ment is obliged to "assist" these teams. The actual role of manage- ment, however, has yet to be de- termined. The government ministers im- mediately concerned in the take- overs appear anxious to continue operations with as little inter- ruption as possible, because oil is a major source of foreign ex- change. The Communists, on the other hand, are pushing for a complete take-over and expulsion of all non-Indonesians from the companies' administrations. Other harassment of Americans also continues. Gas and electric- ity were cut off at selected Amer- ican homes and offices on 18 March; electricity has been restored, but not the gas. The teletype service between the US Consulate in Sura- baya and the US Embassy in Dja- karta was discontinued for a time, and the telecommunications center in Djakarta refused to handle dis- patches for American news corre- spondents. A small American-owned rubber factory in Java, which had been placed under government super- vision in February with minimum obstruction to its activities, now has been seized by Communist-led workers, and the American manager has been barred from his office. The Communists continue to de- mand action against remaining do- mestic anti-Communist newspapers and organizations. On 2 March, the government banned six weeklies and two dailies that had supported the anti-Communist "Sukarnoist" move- ment last fall. These are in ad- dition to 21 non-Communist news- papers banned in mid-February. Sukarno has ordered that no further demonstrations be held from now until the end of April. This may be an effort to muzzle both the Communists and the Moslems, but it looks more like a device to dampen the Moslems' current anti- Communist campaign without requir- ing actual repressive action. The agitation among the Moslems appears to have been largely channeled into the press during the past week. MODERATES WIN ELECTIONS IN CEYLON As a result of the defeat of Prime Minister Bandaranaike's party in Ceylon's 22 March general elec- tions, her leftist regime has been replaced with a government headed by Dudley Senanayake, a former prime minister and head of the conservative United National SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 11 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET Party (UNP). Senanayake's govern- ment will be more sympathetic to- ward Western interests, but will maintain Ceylon's nonaligned pos- ture. Senanayake has emerged with enough parliamentary strength to win a confidence vote when Parlia- ment convenes early next month. The UNP itself won 66 seats in the 157-member House of Representatives, and Senanayake, as prime minister - designate, is entitled to fill six appointive seats. In addition, at least ten independents and members of minor parties will vote with the UNP government. These include sev- eral whose defection from Mrs. Bandaranaike's party last December helped topple her government. The 14 legislators belonging to the Feder- al Party, which represents Cey- lon's Hindu Tamil minority, have also agreed to support Senaua- ya ke. Senanayake's victory augurs well for an early settlement with US oil companies whose properties were seized three years ago. This resulted in the suspension of US aid to Ceylon. Senanayake will fall heir to serious economic troubles--nearly exhausted foreign reserves, wide- spread unemployment, industrial stagnation, and probably leftist labor unrest--that will severely test the administrative compe- tence of a party that has not held office for nine years. The new government probably will seek 25X1 emergency Western financial assist- ance to help it past the critical SECRET Page 12 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 h } xx I" RN?~L rasa ,~ o PT CYPRUS Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 N"001 V-0w S$ CRET Asia-Africa 25X1 ,NEW THREAT OF TURKISH MILITARY INTERVENTION IN CYPRUS There was less military activ- ity on Cyprus during the past week and diplomatic efforts continued in an effort to prevent a new collision between Ankara and Athens. The Turkish press states that Premier Urguplu will present an ultimatum to Athens before Turkey moves. Pres- ent Turkish intransigence over Cy- prus may have been strengthened by a growing belief in Ankara that the USSR will not interfere if the Turks decide on military intervention. The Turks are maintaining their armed forces in a high state of readiness and are currently engaged in large-scale amphibious "training The Greek Government is fully aware of the danger of Greek-Turkish hostilities growing out of the pres- ent C rus situation. Greek attempts to secure a promise from the Greek Cypriots to avoid further provocations to the. Turks for the next six months appear to have failed. Makarios, at Greek and UN urging, has agreed, however, not to oppose the rotation of the Turkish Army contingent on 28-29 March. He has refused to end the im- portation of heavy military equip- ment or permit the UN troops to re- assume their positions between Greek and Turkish Cypriot forces in tense areas such as the one near Lefka. Re- ports from US and UN officials in Nicosia tend to discount Turkish claims that the Turkish Cypriots are starving and suffering "inhuman" treatment. Informal Turkish suggestions that Athens agree to begin immediate bilateral negotiations have been re- jected by the Greeks. There is some hope, however, that the new Turkish ambassador in Athens and a proposed change of Greek ambassadors in Ankara will permit easier relations to de- velop. Much will depend on the pro- posals contained in the UN mediator's report, scheduled to be presented to U Thant this week. The Greeks have indicated a willingness to begin ne- gottiations with Ankara after the re- port is issued, apparently on the as- sumption that it will support Greek demands. Greek Cypriot leaders have indicated that if the mediator re- 25X1 commends negotiations, they too will be willing to enter into direct con- versations. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 13 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 DEMOCRATIC REPUBLIC OF THE CONGO International boundary Province boundary 0 National capital * Province capital Areas outside government control GABON Banzyvil le Gemena Lisala Bumb * - ..ems 4unia/ Coqullhatville ? Boende r1 ;*Inongo ? Bolobo BRAZZAVILLE LEOPOLDVILLE Ken-ge -- Boma= ?1 Pow nqui Kindu~ 1Ct4XItA~! (j) KIGALI i RtJND!) BUJUMBURA (U61, NI )A i Fort Portal ? . KAMPALA" I. ~~a eale?,'Con 1 Kongolo Bakwanga 1~ F y>__ *1 * *Kabittda Albertville ,~ms A Baudoul~Ile Kabongo. ... _ _ri ManOpo,g Kernina ? ANGOLA (Port.) ties bane bccn anterpoiazcd from earning 'flee reports, and are not definitive Kolwezi*t Jadotvilie ' Elisabetvhvilte ZAMBIA Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 vkw~ SECRET Vapi DEVL,,OPMENTS IN THE CONGO The Congolese Government's offensive to seal the northeast borders has so far met little resistance, but rebel activity is increasing north of Albert- ville. Meanwhile national and provincial elections have begun. A government force of 250 mercenaries and 500 Congolese is moving rapidly along the Ugandan border. At last report, the column had captured Aru, the principal point of entry from Uganda. The rebels are said to be fleeing to the north. In other sections of the northeast, government forces patrolling from Paulis are meet- ing little resistance and are generally well received by local tribes. Government patrols from Stanleyville have also been ac- tive and have penetrated rebel- controlled areas on several oc- casions recently. In the eastern Congo south of Bukavu, the rebel build-up continues around Fizi, near Lake Tanganyika. Several thousand insurgents equipped with arms smuggled across the lake from Kigoma, in Tanzania, are re- ported to be in the area, threat- ening to move south into north- ern Katanga. In this region, there are few effective merce- naries, and government units are reported to be unreliable. A Congolese lake patrol appears to have been mounted, however, and should reduce considerably the arms smuggling across the lake. The Congolese national and provincial elections began on :L8 March. The three Katangan provinces are leading off. The elections--to select the 166- member Chamber of Deputies-- will continue province by prov- ince until 30 April. Provin- cial assemblies are also being chosen, and the national Senate will be chosen by the provincial :assemblies when they meet. The president will be chosen later this year. The elections in Katanga have thus far progressed smoothly and with little violence, al- though there is considerable evidence of irregularities. The results will not be known for several days, but these three provinces will probably rally to Tshombd, no matter which parties or individuals actually win the provincial or national positions. Tshomb4's recently formed national political cartel, CONACO (Convention Nationale Congolaise), is having a slow start, but it 25X1 is currently the largest politi- cal combination in the Congo. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 14 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 40 i0 l\ lei;') SAUDI ARABIA S U D``A N ~^- 'F'~ ~F (''',? 4 staua ^ a KHARTOUM Agordat SAN'A Kass a ' ma As ia 1 ERnT R ~^ YEMEN R A:osab ? L r ADEN - m \/F \ Gondar L k a e FRENCH ' 4i I- , / 'DJIBOUTI' Er Roseires 1T?rzn- SOMALILAND, o rpder ' NO ~~ ass4er } Berbera w 10 10 Dir?da a Hargeisa BenderEell~ - Harar ADDIS -. ' ABABA A .r.. _ 1 ~\ 1 Jim; J} , A! T H I 0 P LA SUDAN ti Juba Nagele' yefetDen Iscia ? uke Baia 08 Ru Io1C MOGADISCIO Wajir ~' NH ~ ~ , S roti . K E N Y A ` Lake / I - K yoga 0 KAf~IPAL 1 I T Luke *Chisimaio Vi'ctori'a ~?. NAIROBI -VAN TANZANIA Arusha M b om asa BOUNDARY REPRESENTATION IS { 1 NOT NECESSARILY AUTHORITATIVE I 50 THE HORN OF AFRICA Area inhabited by Somali people International boundary 1 11 Selected railroad National or colonial capital 0 200 400 47092 Miles Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET Friction between Ethiopia and Somalia has increased again following persistent charges by Somali radio of Ethiopian viola- tions of the agreement they reached after last year's seri- ous border clashes. The Somalis say Ethiopian forces have killed Somali nomads and moved troops into the demilitarized zone along their disputed border. The Ethiopians counter that the So- malis themselves, by their false allegations, are violating a provision in the agreement call- ing for cessation of hostile propaganda. The Somalis insist they are merely reporting the facts. The level of dissident ac- tivity in the chronically dis- turbed Ethiopia-Kenya-Somalia border areas generally has re- mained at a low level during the past year, although in recent weeks unusually severe drought and famine conditions have in- tensified frictions. At this time of year, Somali nomads are deep in Ethiopian and Kenyan ter- ritory, and it is not unusual for them to clash with bandits or Ethiopian troops, often with human casualties as well as losses of cattle or goods. L___J Somali radio early this week was silent on the subject of clashes in the bor- der area. Last week the Ethiopian am- bassador to Mogadiscio was re- called "for consultations as a. result of deteriorating relations.`" Before leaving Somalia he told a US Embassy official that he would return within a week and urge the Ethiopian Government to set an April date for the bi- lateral foreign ministers' meet- ing sought by Somalia's Prime Minister Abdirazak. If, as seems likely, the Somalis are exaggerating the seriousness of recent border area clashes, they probably have a variety of objectives. They hope first of all to persuade the Ethiopians to negotiate. Also, the Somali Government needs to divert attention from the drought and famine and is seeking a means of sidestepping political difficulties when parliament convenes in April. Moreover, Mogadiscio's anger is currently stirred by what it re- gards as inequities in Western aid policies toward Ethiopia and Somalia. Ethiopian fears, meanwhile, have been magnified by Somali- Sudanese-Egyptian collusion in support of dissidence in Ethio- pia's northern province of Eri- trea and by Somalia's interest in pan-Islamic movements, as well as by continuing Soviet arms deliveries to Somalia SECRET Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SECRET FRENCH ELECTIONS CONFIRM LOCAL APATHY TOWARD GAULLIST PARTY The 21 March runoff ballot in France's nationwide municipal elec- tions confirms the failure of the Gaullist Union for the New Repub- lic (UNR) to make headway against the firmly entrenched traditional parties. The UNR remains in a rel- atively weak position, having won only 25 of the larger cities--a net increase of 1. Only the Commu- nists have clearly gained, winning control of 34 of the larger cities --9 more than in the last municipal elections in 1959. The Socialists won 32--a net loss of 9, princi- pally to the Communists. In Paris, where the Gaullists had expected to obtain a majority of the 90-member municipal council, they won only 39 seats. Anti-Gaull- ATLANTIC NUCLEAR FORCE DISCUSSIONS Bonn, Rome, and The Hague, in response to British efforts to get ANF discussions started again in a multilateral forum, have agreed such talks could be held in the ex- isting Paris MLF Working Group. London has accepted this and is pushing for the talks to begin next month, but they will probably not start until after Prime Minister Wilson's visit to Rome from 27 to 29 April. The UK, which has been seek- ing as broad a forum as possible among the NATO members for the ANF talks, is proposing expanding the group from its seven present mem- bers and adding an observer cate- gory. To get around a possible French veto and avoid pre-emptive ist "center" lists would not with- draw in favor of the better placed UNR, thus throwing several dis- tricts to the "popular front." Nevertheless the UNR did increase its strength in the capital, where in 1959 it had won only 23 seats. The remainder of the council now consists of 38 Communists and 13 "center" members, obliging the UNR to work with the "center" in order to elect a council president and administer the city. In Marseille, Socialist Mayor Gaston Defferre, in alliance with the "center" elements, scored a resounding victory over both the Communists and the UNR, thus re- 25X1 inforcing his base to challenge the Gaullists in the presidential elections in December. idebate in the North Atlantic Coun- cil, the British Foreign Office proposes that a simple announce- group sessions are being resumed. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SECRET EUROPEAN POLITICAL UNITY TALKS IN PROSPECT The EEC foreign ministers have apparently accepted Italy's invitation to hold discussions in Venice this spring on Euro- pean political unity. Italy's move is welcomed as affording the first opportunity in three years for even a modest degree of progress. At the same time, however, officials are con- cerned over possible French tactics in a new round of talks. Prior to Italian Foreign Minister Fanfani's invitation last week, nothing specific had come of De Gaulle's and Erhard's agreement in January at Ram- bouillet to try to relaunch political unity talks. In superseding the lower key bi- lateral approaches made in re- cent weeks by Rome Foreign Min- istry Secretary General Cattani, Fanfani now has taken the more direct--but substantively vague --approach favored by the French, who object to the proposals in both the Italian and German po- litical unity plans of last year for a "first step" in- volving the setting up of an independent study commission. The French, although favor- able to Italy's intiatives, have been reluctant to push the matter publicly for fear of raising suspicions of their intentions. German Foreign Minister Schroeder, for example, probably suspects --and fears--that talks on po- litical unity could force a discussion of Germany's defense commitments. This may explain Europe Bonn's earlier expressed pref- erence for starting the unity talks at the working-group level. Erhard himself admitted this week that defense ques- tions would "ultimately" have to be part of any political union, but added they did not have to be discussed, initially. Similarly Belgian Foreign Min- ister Spaak, who reportedly understands that Fanfani wishes to introduce the MLF/ANF issue into the talks, believes the injection of nuclear defense matters would be "most unfor- tunate." If the Venice meeting takes place on 10 May, as originally proposed by Fanfani, it would immediately precede a scheduled NATO ministerial council meeting in London. Despite German reserva- tions on procedure, Erhard is anxious to have something con- crete to show before the fall German elections as a result of his unity proposals. In Feb- ruary he reportedly appealed to :Dutch Foreign Minister Luns to help him "in the pre-electoral period with some kind of for- ward movement in the European political field." There has been speculation, as well, that the French are not in- different to Erhard's electoral concerns. Spaak's hesita- tion about a formal meeting-- riow apparently overcome at Erhard's urging--also derived less from a lack of desire for movement than from concern over the adverse feeling which could SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET Europe result from a "failure." France's desires at least to commit its EEC partners to regular political discussions are probably increased now by its suspicions of recent British diplomatic maneuvers in Bonn and The Hague which the Quai probably views as partially intended to obstruct progress on European unity. The intensive bilateral contacts which can be expected before the Venice meeting and the extraordinary nature of the meet- ing itself will probably make the discussions a major focus of European attention during the coming weeks. Student demonstrations are likely to resume following a vir- tual turndown by the Council of Ministers of demands for democratic reforms in the Spanish University Syndicate (SEU). Following a cab- inet meeting on 18 March it was officially announced that a study of reforms must await a "normal situation" and be carried on within the existing syndicate structure. Students will consider this a disavowal of the commitment which they felt they received from Herrero Tejedor, under secretary of the movement (the parent body of the syndicates), on 7 March. A further hint of some uncertainty within the regime over the ques- tion was the tone of editorial comments in the controlled press. The support it evidenced for re- forms in the university syndicate had suggested that some accommoda- tion of student demands would be forthcoming. Police action against demon- strators was mild when the current round of student demonstrations against the SEU first began in Madrid on 29 January. A protest march on 24 February was roughly broken up, however, and the faculties of medicine and of philosophy in Madrid were closed for several days and five profes- sors who participated in a student meeting were suspended. Herrero Tejedor met with student leaders and quieted the situation with promises of reform. Students in- dicated that a lull in demonstra- tions would depend on the way the government acted on Herrero's promises and on the treatment ac- corded to the five suspended pro- fessors. Demonstrations at Bar- celona and Bilbao led to closings of faculties there. The reversal of Herrero Tejedor's commitment is not sur- prising. While some elements within the regime are sympathetic to the students' demands, they are much more responsive to the dangers inherent in any liberal- ization in the monolithic syndi- cate organization. Any reforms granted to students would quickly bring new demands by workers for reform of their syndicates. This would undermine the government's rigid control of labor, with at- tendant political repercussions. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 18 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 ECUADOR dSan~?. Loren.,' O Esmeraldas OIbairra Bahia de ~ Caraquez ?Papallacta OO Guaranda _ O Babahoyo Riobamba 9Daule Guayaquil 1 Alfaro Santa Elena OP Salinas -- 0 ISI.A PUNAj 1y Santo ? Domingo Azogue (9 Cuenca O Machala o LAST 2 MARKERS*-,. Pasale 'iedraos O I I Lola Zamora [ ? ECUADOR ASPIRES TO AN OUTLET TO AMAZON SYSTEM=..I Rocafuerte?Fs... r1. :aCl- FR. GUIANA Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Nwo~ 1140 SECRET Western Hemisphere Ecuador has been preparing diplomatically to try to bring be- fore the Extraordinary Inter-Amer- ican Conference scheduled to open on 20 May its claim that the Rio Protocol is void. The Rio Protocol of 29 Janu- ary 1942 established in detail the boundaries between Ecuador and Peru, disputed since 1822. These reflected Peru's de facto control of most of the upper Amazon basin, its victory in a 1941 border war, and its strong colonial titles. Ecuadorean public opinion has been so intensely committed for genera- tions to unattainable aspirations for territory on the Amazon-Mara- non river system that the protocol has been exploited by the politi- cal opposition to embarrass suc- cessive Ecuadorean governments. frontier remaining open between the last two border markers em- placed, but President Belaunde opposes this. The agenda of the OAS meet- ing was approved before the Ecua- dorean junta was driven to action. Should it belatedly raise the mat- ter there as it has promised, Peru would leave the meeting. Further- more, the quarantors of the execu- tion of the 1942 protocol--Chile, Brazil, Argentina, and the US-- have no wish to permit the open- ing of a Pandora's box of demands for boundary revisions. Most gov- ernments are unwilling to touch this hot potato, and consequently Ecuador has little hope of obtain- ing the necessary two-thirds vote to introduce its pleas at the OAS meeting. Impotent to loosen the rul- ing military junta's grip on power or to speed up its plans for tran- sition to civilian rule, Ecuador's political parties demanded in Feb- ruary that the government use the forthcoming OAS meeting to present "just grievances." Ecuador has claimed since 1960 that the jurid- ical background of the protocol, and a minor flaw in geographical terms of reference of the stipu- lated boundary, nullify the in- strument. Peru adamantly maintains that the protocol is a valid, freely ratified, unalterable instrument whose execution should be com- pleted. The Peruvian opposition, which controls congress, has re- peatedly demanded unilateral de- marcation of the 78 kilometers of If the junta and Belaunde are able to resist political and public pressures, this episode in the long dispute will probably pass without diplomatic or fron- tier incidents. The basically friendly relations between the two governments favor gradual dis- sipation of the current storm. Nevertheless, Ecuador reportedly has added 90 days to draftees' military service, and if nation- alistic pressures in either na- tion force strong actions, a critical situation could develop rapidly. The affair carries the potential for wrecking the OAS conference and, if the Ecuadorean junta does not do enough to placa125X1 its people, conceivably could be the issue to bring about its fall. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 19 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 w Nicaragua MANAGU* J, Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 SECRET HONDURAN ASSEMBLY MAKES LOPEZ "CONSTITUTIONAL PRESIDENT" 25X1 The Honduran political situ- opposition labor elements in st- ation was aggravated on 23 March tempts to overthrow the regime. by the Constituent Assembly's "election" of Chief of Government guerrilla bands are Lopez as "constitutional presi- already active in the departments dent." On 22 March a majority of Atlantida, Yoro, Olancho, and of Liberal deputies attended the El Paraiso. In fact, the moder- assembly which they had boycotted ate Liberals too may feel com- since its opening session on 16 pelled to join an antiregime March, but walked out prior to movement, in which case, with Lopez' "election." They sub- its factions united, the Liberal sequently charged that the Na- Party might replace Communists tionalists broke a tacit under- as the pacer of the revolution- standing to draft a constitution ary movement. before taking up the presidential question. At this time, there In the coming weeks, the seems to be little chance that purely Nationalist assembly plans 25X1 the Liberals will participate in to draft a new constitution and further assembly sessions or in then set the length of Lo ez' the formation of any new govern- presidential term. ment. The Liberal Party's radical faction, which has been more ag- gressive than the moderate wing in its attitude toward the gov- ernment, has opposed party par- ticipation in the assembly. It now may join with Communists and TRINIDADIAN GOVERNMENT MOVES AGAINST LABOR AGITATORS The Trinidadian Government has introduced legislation de- signed to reduce the power of leftist union leaders who have plunged Trinidad into a lengthy period of labor unrest. Strong criticism from the opposition party is not expected to halt early passage of the bill, which appears to have wide popular sup- port. It would establish an industrial court with sweeping powers and no appeal, provide stiff penalties for lockouts and wildcat strikes, and re- strict the right to strike of civil servants and workers in "essential" services. SECRET Page 20 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 SECRET Western Hemisphere George Weekes, pro-Commu- nist president of the Trades Union Congress (TUC)--one of the island's two major labor confederations--had encouraged sugar workers affiliated with the other confederation--the progovernment National Federa- tion of Labor--to rebel against their union leadership. Wild- cat strikes in the island's sugar-growing belt closed several large mills and forced the gov- ernment to declare a state of emergency on 9 March. The strong government action has weakened the TUC, from which several un- ions have withdrawn to protest Weekes' leftist policies and his unauthorized interference in the sugar unions. An announced strike of Weekes' important Oilfield Workers' Trade Union failed dismally, and a protest demon- stration against the labor bill gained no significant support. The government presently seems to have the upper hand, and an uneasy peace has been restored to the sugar centers. Weekes still controls nearly half of Trinidad's organized labor, how- ever, and may be merely waiting for action on the labor bill be- fore making another move. brazil's leaders are encour- I The only openly prorevolution aged by results of the 21 March Sao Paulo mayoralty election, the first major election in Brazil since President Castello Branco took office nearly a year ago. Although the revolution was not a, key campaign issue, the winner, air force Brigadier Jose Fa.ria. Lima., is likely to support the government's basic programs and provide the coun- try's largest city with respon- sible leadership. Faria Lima. ran well ahead of the other seven candidates with approxi- mately 40 percent of the valid votes. As the personal choice of ex-President Ja.nio Quadros, whose political rights have been canceled for 10 years, Faria Lima is not politically popular among the backers of the April 1964 revolution, but he has a reputation for honesty and ef- ficiency even among hard-liners. candidate, political unknown Egydio Martins, failed to place among the top runners in heavy balloting which saw 85 percent of Sao Paulo's 1.5 million voters go to the polls. The results are a decided defeat for Sao Paulo State Governor Adhemar de Ba.rros, a. presidential hopeful, whose candidate ran a weak third. With added confidence from the Sao Paulo election, Presi- dent Castello Branco has announced that the administration now be- lieves that gubernatorial elec- tions should be held in half of Brazil's 22 states in October according to schedule. As with the Sao Paulo mayoralty, mili- tary and civilian hard-liners have been pressing to postpone all state elections on grounds that the revolution "is not ready for them." SECRET Page 21 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 Vw0f SECRET Western Hemisphere BOLIVIAN POWER STRUGGLE THREATENS NEW VIOLENCE The clandestine rivalry between Bolivian junta presi- dent Barrientos and the commander of the armed forces, General Ovando, has burst into the open this week and is threatening to resolve itself by violence. Barrientos' position seems to be the stronger at the moment as recent events have worked to his advantage, while Ovando has apparently made some seri- ous miscalculations. Until the assassination attempt against him on 21 March, Barrientos was losing support, and his efforts to force polit- ical parties into a coalition behind him had foundered. Furthermore, the prevailing opinion within the cabinet and the military was that Barrien- tos had to resign from the junta if he wished to campaign for the presidency. News of the shooting however, immediately rallied civilian and military sympathy for him. Ovando's attempt to dis- place Barrientos as junta presi- dent on 22 March, plus his flirtation with the offer of a presidential nomination by center and rightist political parties, has revealed his hos- tility to Barrientos, and is forcing all political parties to define their positions. Barrientos' peasant supporters in Cochabamba and the Nationalist Revolutionary Movement (MNR) are calling for Ovand MNR leader H Zuazo has propose tion plan which i tions that electi the cabinet be pu supporters, and high command be r Siles has also re Barrientos resign at a later date a government to a t o's dismiss ernan Siles d a pacific ncludes sug ons be post rged of Ova the armed f eorganized. commended t from the j nd entrust riumvirate al. a- ges- poned ndo orces hat unta 2 the of solid Barrientos supporters. The MNR has called out its armed militants to demonstrate on behalf of Barrientos when he returns to La Paz from Cochabamba. The demonstrations are aimed at pressuring Barrien- tos into accepting the peace- keeping formula and at securing a promise of substantial MNR :representation in a future gov- ernment. The US Embassy con- siders violence in La Paz likely as a result of the demonstra- tions. SECRET 26 Mar 65 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 22 Approved For Release 2008/06/02 : CIA-RDP79-00927A004800070001-4 25X1 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4 V NW SECRET Approved For Release 2008/06/02 : CIA-RDP79-00927AO04800070001-4