WEEKLY SUMMARY

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CIA-RDP79-00927A009100010001-2
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RIPPUB
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S
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41
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December 21, 2016
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May 7, 2008
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1
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Publication Date: 
September 10, 1971
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SUMMARY
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Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY State Dept. review completed DIA review(s) completed. Secret 10 September 1977. No. 0387/71 Copy N2 51 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 SECRET CONTENTS (Information as of 1200 EDT, 9 September 1971 ) Indochina Vietnam: Saigon Government on the Defensive . . . . . . . . . . . . . . . 1 Laos: One Step Backward in the South . . . . . . . . . . . . . . . . . . . 2 Cambodia: Artful Political Dodging . . . . . . . . . . . . . . . . . . . . 4 Japan: The China Problem . . . . . . . . . . . . . . . . . . . . . . . . . 5 Communist China: Leftists Down, But Are They Out? . . . . . . . . . . . . . 6 Soviet Smiles for Washington, Brickbats for Peking . . . . . . . . . . . . . . . 7 International Economic Developments . . . . . . . . . . . . . . . . . . . . 9 NATO Plans Closer Look at Mutual Force Reductions . . . . . . . . . . . . . 11 Romania Solicits Diplomatic Backing . . . . . . . . . . . . . . . . . . . . 11 Yugoslavs Dig in for Brezhnev Visit . . . . . . . . . . . . . . . . . . . . 12 Mixed Prospects for East European Harvests . . . . . . . . . . . . . . . . . 13 PEKING'S DRIVE TO OFFSET SOVIET AND US INFLUENCE IN EUROPE (Published separately as Special Report No. 0387/71 A) Pakistan: An Excess of Problems . . . . . . . . . . . . . . . . . . . . . 14 Persian Gulf Developments . . . . . . . . . . . . . . . . . . . . . . . . 17 Halcones Haunt Mexican Government . . . . . . . . . . . . . . . . . . . 19 Uruguay: The Great Escape . . . . . . . . . . . . . . . . . . . . . . . 20 Chile: Allende's Tour de Force . . 21 Violence Threatens Honduran Government . . . . . . . . . . . . . . . . . 22 NOTES: Arms Control; International Aviation; Cyprus; Latin America; Ecuador; Bolivia SECRET Page i WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 2-1 SECRET IF" FAR EAST Indochina Vietnam: Saigon Government on the Defensive An increasing number of political elements seem to have concluded that the Thieu govern- ment has been hurt as a result of the recent turn of events. The opposition still appears highly frag- mented and incapable of effective, coordinated action, but many opposition leaders and some rejected political suitors clearly believe that now is a good time to get in a few blows against the government. Even the usually proadministration Saigon newspaper, Chinh Luan, has commented that Thieu has damaged his ability to lead the people. So far, antagonism against the regime does not seem particularly intense among the people, and there have only been a few small demonstrations that have been easily contained. Antiregime sentiment, however, may well gather more momentum during the remaining three weeks before the presidential election-or refer- endum-on 3 October. Vice President Ky's efforts to change Presi- dent Thieu's plans for the presidential election and to capture the leadership of the opposition are taking the spotlight for the moment. Ky's threats in his remarks to foreign newsmen last week went considerably beyond his earlier attacks on the President. Ky, possibly prompted by the realization that his threats might force Thieu to take countermeasures, later issued a denial that he had said he would destroy Thieu. Nevertheless, Ky allowed an impression to remain that a coup is a real possibility, in the apparent belief that this will win him some points in the opposition groups. Ky's camp probably has encouraged some of the recent protests by militant disabled veterans. The vice president may have had prior knowledge of plans for a protest suicide attempt in Nha Trang last weekend. He arrived shortly before it occurred and has received considerable publicity because of his presence at this incident. Some militant students and other political factions are also protesting Thieu's election policy. Although the President has remained unmoved by pressure for a postponement of the presidential election, there are signs that he is becoming nervous about the situation.F Thieu appears uncertain about how to handle the inflammatory Ky, but any steps against the vice president almost certainly would make the situation worse. SECRET 25X1 Page 1 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 SECRET nam panhandle have been cut by flooding; but logistics preparations under way in the southern provinces for the movement of supplies and men through the Laos panhandle during the coming dry season probably have been affected only marginally. Hanoi faces a major clean-up job in the wake of serious flooding, but assistance from China and the USSR will replace agricultural losses. North Vietnamese weather broadcasts indicate that rain- fall in 1971 has been generally double the amount of last year, ranking with the highest ever re- corded. Aerial photography shows extensive flooding in the delta surrounding Hanoi. The heaviest rainfall in the Red River Delta, the country's principal population and agricultural region, took place during 13 to 19 August. Higher than average rains in the extreme northwest in- creased the flow down the Black, Clear, and Red rivers, adding to the delta's flood stage at Viet Tri, where the three rivers converge some 30 miles northwest of Hanoi. North Vietnamese papers report that many locations in the delta were "sub- merged for several weeks" and that dikes and dams which had been improved and strengthened in recent years were "greatly damaged." Premier Pham Van Dong's statement that the current floods are worse than in 1945, when hundreds of thousands died in an ensuing famine, suggests that there has been considerable human suffering, although Hanoi has not yet released casualty figures. Presumably reserves of food and other daily necessities have been drawn down to provide relief to flood victims. Looters and specu- lators seeking to profit from disorder are being given stern warnings of prosecution. Agriculture will suffer severely from the flood. The tenth-month rice crop, usually pro- ducing about 2.5 million tons, already had been planted. Losses, however, are expected to be made up by increased food shipments from China and the USSR. Both Peking and Moscow have pledged relief assistance. The main rail lines between Hanoi and China, the port of Haiphong and the North Viet- Page 2 Laos: One Step Backward in the South The Communists on 4 September inflicted another setback on government forces attempting to recapture Paksong on the Bolovens Plateau. The North Vietnamese used a coordinated ground and mortar attack to drive three Lao Army bat- talions from positions on Route 23 west of the town. The government front line is now held by irregular battalions at Ban Phak Kout, six miles from Paksong. Although there is no evidence of the extent of North Vietnamese casualties, the enemy was subjected to heavy air strikes and artillery shell- ings in the Paksong area. Nonetheless, they have thwarted every government attempt to recapture the town. Lao Army battalions, despite relatively heavy casualties, have fought their way through heavily fortified enemy positions, once to within two miles of their objective, only to be driven back by counterattacks. The Communists have quickly shifted their forces to meet government thrusts from the northwest, the south, and the west. The 9th NVA Regiment, with a total strength of about 1,400, is responsible for the security of Paksong. Although the 9th has prob- ably suffered significant casualties, it presumably continues to maintain a tactical capability be- cause of a steady stream of replacements. On the northwest edge of the Plateau, the four-battalion irregular task force that occupied Ban Lao Ngam on 2 September continues to be the target of Communist shelling attacks and SECRET WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 AMWI SECRET probes. This task force is patrolling in the area as locate enemy positions and supply caches targets for air strikes. Since the beginning of the government's south Laos offensive on 28 July, the Communists have shown more determination to defend the F- olovens Plateau itself than the area to the north. fA government task force recaptured Saravane town on 28 July without a fight, andto the has government battalion occupying the since been subjected to only minor harassing at- tacks. Other government units searching for ,;apply storage areas west and southwest of aravane have encountered only light enemy resistance. These searches did not turn up many large supply caches, suggesting that the enemy r~ither did not have as many storage sites in the area as had been believed or that the stores had been moved or concealed. Some Action in the North in north Laos, the Communists continue to concentrate on defending the hills on the SECRET WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Government-held location Communist-held location Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 UL tJl\.U 1 northern and eastern edges of the Plaine des Jarres. Vang Pao's irregulars last week were forced to abandon outposts northeast and southeast of the Plaine, although no major positions changed hands. The North Vietnamese used shelling at- tacks and ground probes to harass other govern- ment positions. Cambodia: Artful Political Dodging After some delicate negotiations, the govern- ment appears to have worked its way around a potential confrontation with the National As- sembly. Although the uneasy truce with the Assembly could break down in short order, the government apparently has persuaded the leg- islature to postpone its interpellation of Finance Minister Sok Chhong until the Assembly approves the regime's projected economic reforms and the multinational Exchange Support Fund (ESF) is established. The latter is likely to take some time, and Chhong could have a lengthy grace period. Chief of State Cheng Heng was largely re- sponsible for bringing the Assembly around, as Lon Nol and Sirik Matak evidently prevailed upon the harassed Chhong to pigeonhole his oft- tendered resignation. In doing so, they probably have also calmed down some members of the cabinet who were vowing to quit if Chhong fell victim to the Assembly or if his resignation was accepted. It is likely that the leadership's efforts were helped along considerably by a general recognition in the capital that a serious political crisis could discourage foreign backing for the ESF and could also endanger the possibility of obtaining additional economic assistance from Washington. Little Military Movement Communist forces continue to lay low throughout the country, leaving the military initiative to the government. Cambodian Army (FAN K) units in clearing operations along Route 6 in Kompong Thorn Province met only light enemy resistance during the week and continued to consolidate their positions around Kompong Thmar. Despite the relative ease with which FANK troops have moved up Route 6, Prime Minister Lon Nol apparently has decided that the drive will not be extended any farther north along the highway toward Kompong Thom town. The Cambodians reportedly are considering a push southeastward from Kompong Thmar along Route 21, however, aimed at clearing crack Communist forces from their strongholds in the rubber plantations that line that highway. But for the moment, FANK troops on Route 6 are to concentrate on pacification operations from Tang Kouk to Kompong Thmar. In line with this, First Deputy Prime Minister In Tam has visited re- cently liberated villagers in areas between those two towns to assure them that they can count on the continuing protection of FANK. Two FANK battalions from Kompong Thom have begun a second clearing operation along Route 6, south of that town. The small size of this operation suggests that it is primarily local in nature, and that it is not destined to link up with the FANK units at Kompong Thmar. Although elements of the Communist VC/KC 201st Regi- ment apparently are located within striking dis- tance of the battalions, they have not yet seri- ously challenged the slow and cautious FANK SECRET Page 4 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 ~rAj1cr, 1 Japan: The China Problem. Some leaders of the ruling Liberal Demo- cratic Party (LDP) have dissociated themselves from Prime Minister Sato on the China represen- tation issue. These leaders-including former de- fense chief Yasuhiro Nakasone, who otherwise supports Sato-are opposing a decision to co- sponsor US-proposed resolutions on the issue, although the government has promised to support them. Two major party leaders-former foreign ministers Miki and Ohira-have publicly objected even to supporting the resolutions, advocating instead all possible encouragement for Peking's admission. Ohira's stand has been seconded by Justice Minister Maeo and Agriculture Minister Akagi. At a weekend meeting of the top ruling party leaders, no consensus on the question of cosponsorship could be reached on the eve of Foreign Minister Fukuda's departure to head Japan's delegation to the joint economic con- ference in Washington on 9-10 September. ARMS CONTROL: The USSR has submitted a proposal for the provisional agenda of the up- coming UN General Assembly calling for a world disarmament conference. Although the proposal indicated that the conference could consider both nuclear and conventional weapons, it stressed the nuclear aspect. Support for a world conference was contained in Brezhnev's "peace program" last March but had not been pushed by the Soviets prior to this week. China's recent torpedoing of Moscow's proposed Five Power Nuclear Con- ference as well as Moscow's desire to dramatize its present peace program probably contributed to the Soviet initiative. In refusing to consider the Five Power plan Peking reiterated its support for a world conference to discuss abolition of nuclear weapons. The Soviets may intend their initiative to place Moscow firmly on record as support- ing-even championing-a world conference, and at the same time to put China on the spot by testing Peking's willingness to respond to the proposal. SECRET Page 5 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 -Ow bhUXET Communist China: Leftists Down, But Are They Out? The appearance in domestic propaganda last week of the first open denunciation of the ex- tremist May 16 Corps further attests to the grow- ing strength of moderate forces in China's leader- ship coalition. The criticism was a brief allegation that May 16 elements were behind factional dis- orders at one of Peking's leading universities in 1968. The article in Red Flag, the authoritative party journal, called for more moderation in educational reform. Its publication, as well as several other recent articles by foreign journal- ists-officially inspired-discussing the "May 16 plot," suggests that moderate elements in the regime are cautiously laying the groundwork for an open repudiation of the more extreme phases of the Cultural Revolution. Eventually, there may also be some public explanation of the kaleido- scopic changes that have been precipitated within the leadership by the investigation, which began nearly two years ago, into the activities of the May 16 extremists and their high-level backers. Although the full ramifications of the in- vestigation are by no means clear, it apparently was meant to counter the efforts of Cultural Revolution Group (CRG) leaders on the politburo to broaden their influence in regime councils, apparently at the expense of Premier Chou En-lai. Ultimately, the investigation led to the purge of CRG head Chen Po-ta-who was charged with organizing the May 16 Corps-and has cast a pall over the political future of Chen's closest col- leagues, Madame Mao and Kang Sheng. Chou's personal position correspondingly appears to have been strengthened, and the ascendancy of Chou and his more moderate colleagues has been further affirmed by the latest Red Flag article. Given wide dissemination on 3 September, the article apparently is intended to signal that efforts are now under way to curb further the residual influence of ultraleftist politburo members in the educational sphere, where their influence had been considerable owing to Mao Tse-tung's de- termination to radicalize the university system. Despite the continuing setbacks to the leftist forces, the May 16 investigation does not appear to have reached its climax, nor has the political pendulum in Peking swung completely to the right. The regime has yet to take the final step of publicly denouncing Chen Po-ta, even though it is widely known among party cadres that the nu- merous press articles that have appeared since last May excoriating "sham Marxists" and "political swindlers" have been directed implicitly at Chen. Furthermore, Peking city party chief Hsieh Fu-chih, who seems to have cast his lot with the -4,,....t _ e has appeare publicly on y once in the past 18 months and apparently has been dropped from his post as public security minister. There also are tenuous indications that the wholesale turnover among top military and civil- ian leaders in the sensitive Peking Military Region is in some way associated with the infighting within the politburo over the May 16 investiga- tion. During the past year, the commanders of the Peking garrisons and the Peking Military Region, as well as the regional political commissar, have dropped from public view. No explanation has been offered for their disappearance and no re- placements have been named, but both regional commander Cheng Wei-shan and political com- missar Li Hsueh-feng, an alternate politburo member, were directly criticized by CRG leaders during the Cultural Revolution. Because they dropped from view at a time when Chen Po-ta's case was coming to a head, their apparent ouster probably means that the influence leftist forces at the top have exercised over important personnel assignments has not been entirely vitiated. SECRET Page 6 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 SECRET EUROPE Soviet Smiles tor Washington, Brickbats for Peking Soviet reaction to the recent movement in Sino-US relations has followed very different courses toward China and the US respectively. Moscow has intensified its hostile attitude toward Peking, but has provided a moderate and balanced public assessment of US motives. It has also taken actions designed to underscore the necessity and importance of US-Soviet relations and negotia- tions. In many respects, the Sino-US activity seems to have given added impetus to Moscow's desire for productive dealings with the US, while it has encouraged the Soviets to take an unyield- inq line toward the Chinese with whom they have little fruitful contact and who they feel are med- dling in their East European empire. Triggered by the invitation to President Nixon, Moscow on 4 September made its sharpest authoritative attack on China in more than a year. The lengthy Pravda article by "I. Alexandrov"a pseudonym indicating high-level party endorse- ment-minced no words that Moscow sees mali- cious intent in Peking's invitation. The bid to the President was placed in the context of Peking's new, more flexible foreign policy, which Pravda branded as primarily motivated by "anti-So- vietism." The article appeared to rationalize recent Soviet calls for greater Communist unity in the face of improving Chinese-American relations. It attacked Chinese efforts to undermine Soviet in- fluence in Eastern Europe, warning that Peking would be pleased "by a crack, if only a small one" in relations between socialist countries. The article restated Soviet intentions to seek better relations with China, but unlike some pro- nouncements prior to word of the President's impending visit, it contained no conciliatory passages. Terming as "mythical" China's con- tention that it faces "a threat from the North," Pravda did net level some of the emotional charges that the Soviets have made against the Chinese in the past. Indeed, the tone of recent Soviet comments public and private suggests that Moscow, while deeply disturbed by the implica- tions of improving Chinese-American relations, does not want Sino-Soviet relations to slip back to the nadir of the 1969 border fighting. . And Maintains Moderate Stance Toward US Alexandr:;v's treatment of China stands in marked contrast to recent Soviet handling of US reasons for improving relations with China. A lengthy Pravda article on 10 August presented an unusually balanced assessment of US motivation and reserved final judgment on the US-Soviet implications o' the cominc presidential visit until events develo further. Most recently, Pravda on 2 eptember presented a relatively balanced ac- count of Secretary Rogers' speech to the Ameri- :an Legion, specifically noting his assurance that Washington's China policy does not mean any lessening of interest in serious negotiations with the USSR. The Alexandrov article appeared the same day as Soviet publication of the new agree- ment on Berl n, thus implicitly contrasting Mos- cow's ability to deal with the West with the intractable differences with China. This treatment SECRET Page 7 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 .7LV1tL' 1 suggests that not only does Moscow want to avoid damage to its wide-ranging contacts with Washing- ton through harsh polemics, but at the same time may be employing the China problem to justify internally its pursuit of detente tactics in Europe. Soviets Intensify Bilateral Contacts In addition, the Soviets have moved recently to intensify their bilateral relations with the US. This has been particularly noticeable in the area of cultural exchange, a field in which Soviet performance has generally tended to be somewhat perfunctory. On 24 August, the chief of the Cultural Relations Division of the Soviet Ministry of For- eign Affairs, Sofinsky, expressed interest in nego- tiating a new cultural exchange agreement before expiration of the current one, which covers 1970-71. If the Soviets follow through, it would mark the first time since 1959 that they have agreed to negotiate a new agreement before expiration of the old one. In a visit to Soviet Minister of Culture Furtseva on 3 September, the US ambassador found her attitude much more forthcoming than usual as she stressed the importance of cultural relations in paving the way for better political relations. Sofinsky told a new US cultural coun- selor on the same day that he "was lucky to arrive at a time when his work was going to be much easier than had been the case in the past." Both Sofinsky and Furtseva offered assurances that sev- eral problems in current cultural exchange pro- grams would be ironed out. In addition, a high official of the Soviet Chamber of Commerce recently made a plea for closer cooperation with the US Embassy. In a meeting requested with some urgency, he urged greater US participation in Soviet exhibitions next year, and even suggested a comprehensive exhibit of US products, lamenting that the last such US exhibit in Moscow was in 1957. The comments of these Soviet officials mark a striking change in tone and attitude and suggest that they have received their marching orders to encourage more active and visible US contacts. Moscow may hope to demonstrate to Washington that it is more profitable to deal with Moscow than with the "intractable" Chinese, and may also wish to counter the publicity being given to Sino-US developments. In addition, the Soviets doubtless want reassurance that US interest in bilateral contacts has not waned. The newest round of US-Soviet bilateral talks will get under way in Moscow on 12 Octo- ber, dealing with US-Soviet naval incidents. In addition Ambassador Dobrynin has informed Secretary Rogers that Moscow is prepared to begin talks on outstanding bilateral maritime issues this fall-a move which was preceded by US relaxation of port restrictions against Soviet vessels. It would not be surprising if Moscow should also seek additional discussions on such subjects as bilateral trade. This would be con- sistent with Premier Kosygin's comments to US representatives to the "Dartmouth Conference" in Kiev in July, when he lamented the low level of US-Soviet commerce. SECRET Page 8 WEEKLY SUMMARY 1U Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 International Economic Developments Four weeks after President Nixon's an- nouncements the international financial markets have settled into a relatively stable, although tem- porary, pattern that is unlikely to be altered be- fore the IMF meeting in late September. Tokyo remains determined to minimize the yen's revaluation. New restrictions have been placed on capital flows and on the freedom of Japanese banks to buy and sell foreign currencies. Moreover, the Bank of Japan has been intervening directly in the market. As a result, the yen has floated in a relatively narrow band at about six percent above parity. European currencies are fluctuating within a narrow band, established soon after the 23 Au- gust reopening of currency markets. The markets have remained relatively inactive, as many specu- lators apparently are remaining on the sidelines. The pound has appreciated about 2.5 percent against the dollar, while the mark's value has deviated about one percentage point from its pre - 15 August value-eight percent above nominal parity. The French "financial" franc has ap- preciated by four percent, while the "commer- cial" franc has hovered near its ceiling, at times requiring official intervention. French and German differences are still pre- venting the establishment of a common EC posi- tion. In a number of bilateral meetings, in the EC monetary comn ittee meeting at Brussels, and in a Group of Ten deputy finance ministers meeting at Paris, the maj,ar European countries, except France, agreed that a realignment of their cur- rencies is neces ary. Nevertheless, there is uncer- tainty over ultimate US objectives and con- siderable resentrient of US methods. European discussions of a possible dollar devaluation-primarily as a concession to France-reversed the earlier decline in gold prices. Between the Prasident's 15 August speech and 1 September, gold prices on the London market fell from $43.00 per fine ounce to $40.65. This drop reflected the a[ ,parent acceptance by speculators that the official price of gold would not be in- creased. In reaction to the recent suggestions that the dollar be devalued, however, the price of gold rose to $41.40 t:.y 8 September. Canada is especially concerned about the impact of the import surcharge, and is the first country to take special measures to assist indus- tries that would be hurt. Early economic indica- tors show the Canadian economy to be experi- encing an upturn, and Ottawa fears that the surcharge would dampen the recovery. On 7 Sep- tember, legislat on designed to maintain employ- ment in industries affected by the surcharge was introduced. In doing so, the Trudeau.government rejected actions that could lead to a trade INTERNATIONAL AVIATION: Delegates from around the world gathered in Montreal this week to begin drafting the "unlawful interference" con- vention that probably will call for the suspension of air services to nations that tolerate air piracy. This drafting session may also be capped by the entry into force of the complementary "unlawful seizure" convention opened for signature last De- cember. That document, inspired by the US and Canada, has already achieved nearly the requisite ten ratifications. It would require adhering states in which a hijacked plane lands either to extradite or prosecute the aerial irates. SECRET Page 9 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927A009100010001-2 25X1 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 SECRET NATO Plans Closer Look at Mutual Force Reductions The Western allies are in the midst of prepa- rations for a special high-level session of the North Atlantic Council (NAC) on 5-6 October. This meeting will decide how to move beyond the bilateral soundings that have been taken with the Warsaw Pact allies this summer regarding mutual and balanced force reductions (MBFR). The prep- arations to date have been marked by the cau- tious and skeptical approach of the European allies, based on their feeling that American sup- port for MBFR is dictated essentially by domestic US pressures. The Europeans are fretting-in private con- versations with US officials as well as in the press-about the dependability of the US commit- ment to the defense of Europe over the long term. Despite reassurances from the US, the con- vergence of recent events-particularly those as- sociated with the financial crisis-has fed suspi- cions that MBFR could turn out to be mainly a cover for the large reductions in US forces. The NAC session in October will probably designate retiring Secretary General Brosio to explore, in talks with Moscow and its Warsaw Pact allies, the prospects for MBFR negotiations. In recent discussions at NATO, the West Germans have reiterated their support for MBFR but have continued to urge a slow, orderly approach, recommending initially limited and verifiable reductions in order to build confidence in the good intentions of both sides. Although the UK still doubts that any reductions would be com- patible with Western security, both Bonn and London are prepared to begin a long and difficult negotiating prccess. The French, however, remain opposed to MBFR talks. Paris believes that the West should make no cuts in its military forces in Europe until the East-West political climate has vastly improvec. Some of he smaller allies are now assessing more thoroughly the potential impact of MBFR on their interests. A coalition of southern allies- Greece, Turkey, Italy, and Portugal-is emerging, in opposition to any expansion of the geographi- cal coverage of MBFR to include their territory. Their concern is not so much that their forces would be included, but that limitations might be placed on the JS presence in the Mediterranean. Norway and Denmark, on the other hand, appar- ently are not opposed to an eventual extension of MBFR coverage to include their territory. The allies are likely to continue to look to the US for leadership on NATO's MBFR position. In spite of their hopes for detente and their support for a Conference on European Security, however, the a lies will continue to be tormented with uncertainty about how Western Europe's defense would be managed with a reduced US presence. Romania Solicits Diplomatic Backing Although Soviet-inspired criticism of Romania and Yugoslavia in bloc media has sig- nificantly subsided in the last few weeks, covert pressure on Bucharest apparently still continues. The Ceausescu regime has recently made dip- lomatic demarches in Paris, London, and Wash- ington to obtain support, but it has not conveyed any urgent concern. Meantime, Ceausescu used recent trips to Romania by high-level representa- tives of the Japanese and Spanish Communist parties to enlarge on his adherence to an inde- pendent course SECRET Page 11 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 SECRET The three Romanian demarches were made in Paris on 30 August, in London on 1 September, and in Washington on 3 September. The ap- proaches had a common theme: Soviet pressure on Bucharest is incompatible with major trends toward detente as exemplified by Sino-US rap- prochement, the Berlin draft agreement, and widespread interest in a conference on European security. In each instance, however, the Romanian diplomats did not contribute much in the way of specifics about Soviet pressure tactics. Instead, they cited official anti-Romanian utterances in Soviet bloc media which have included fabrica- tions about an "anti-Soviet axis" in the Balkans under Chinese sponsorship. Speaking with Secre- tary of State Rogers in Washington, Ambassador Bogdan also claimed that Moscow had exerted economic pressure, but he added that this has been "subtle and difficult to distinguish from hard bargaining." Bucharest undoubtedly is experiencing pres- sure from Moscow and its allies. This could easily occur in the economic sector; the Romanians have obstructed Soviet aims but are dependent on the USSR for some key raw materials. At the same time, however, Bogdan invited Secretary Rogers to visit Romania in the spring of 1972, an indication that Soviet pressure is not yet intolera- ble. Indeed, Bogdan described the demarches as reflecting his government's view that not enough has been done to make other governments aware not only of Soviet pressure on Romania but also of the threat such pressure poses to detente in general. The communique" summarizing the visit of the Japanese party delegation amplified the theme of a new Communist unity in which "there is no need for any center of leadership in the Communist movement in any part of the world." Similarly, the Romanian-Japanese and the Ro- manian-Spanish communique's denounced med- dling in the affairs of another party, "including support of factions of another party." Each of these formulations could be con- strued as being implicitly critical of Moscow and to a lesser extent of Peking. Ceausescu, however, probably sees them as serving to strengthen Romania's claims that its policy toward the Com- munist movement is impartial, aimed at real socialist unity, and based on correct relations between all parties. Yugoslavs Dig in for Brezhnev Visit This week Tito took his case for national solidarity to the people in preparation for Soviet leader Brezhnev's visit in late September. Stump- ing Croatia and Bosnia-Hercegovina, he made impassioned pleas for unity and the rejection of nationalist excesses. Tito clearly wants to produce a convincing display of domestic cohesion as a base for his negotiations with the Soviets, and from first indications, he is succeeding. Tito's success in past dealings with Soviet leaders has been closely linked to his reliance on firm domestic support against both implied and actual Soviet threats. The internal upheaval caused by the current political reform and con- tinuing economic problems, however, might ap- pear to Moscow as a rare opportunity to increase Soviet influence in Yugoslavia. This summer Tito has been unflinching in his resistance to subtle Soviet pressures, but Brezhnev's presence in Bel- grade will place a premium on domestic order and unity. Croatia presents the greatest potential for embarrassment; nationalism flared there early last spring. Tito, recognizing the possibility of a re- vival, arrived in Zagreb last Monday to a tumul- tuous-and carefully arranged-welcome. He conducted an energetic round of personal politics in the republic, bestowing his favor on moderates SECRET Page 12 WEEKLY SUMMARY 10 Sep 71 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 Approved For Release 2008/05/07: CIA-RDP79-00927AO09100010001-2 SECRET like Vladimir Bakaric and Mrs. Savka Uabcevic- Kucar, and ignoring Croat leaders who waver in facing down nationalist demands. Tito's strategy seems to be aimed at encouraging the moderate wing to take even stronger measures in defense of Belgrade's policies. Prior to visiting Croatia, the President stopped off in Bosnia-Hercegovina, which has also been troubled by nationalist agitation within its Croatian minority. In speeches there, Tito stressed the theme of national cooperation in the partisan war against the Germans and condemned those Yugoslavs who in the past cooperated with foreign enemies because of national animosities. Meanwhile Belgrade's media have been lay- ing down a steacy barrage of complaints regarding Soviet pressure. against the Balkan mavericks. The latest salvo was directed against the Pravda Alexandrov arti ae's criticism of China's improved relations in the Balkans. Belgrade is, in effect, warning Brezhr :v not to come in expectation of Yugoslav concessions, and reassuring the Yugo- slavs that the regime is willing to reject any Soviet pressures. Mixed Prospects for East European Harvests Eastern Europe's total grain harvest has re- bounded from a 1970 setback and may nearly equal the record of 1969. This, however, is in sharp contrast to the unfavorable prospects for most other crops in the northern countries and in Hungary. East Germany is in the worst position of all the East European countries and for the third straight year may have to increase imports of all agricultural products. Grain production for this year is estimated tc be 12 percent above 1970, and in all countries except East Germany almost certainly will exceed the 1966-70 average level. Production of bread grains is expected to increase 19 percent. The picture is less clear for grains for livestock feed; coarse grain (barley, oats, and corn) may increase as much as six percent. However, the full impact of unfavorable weather conditions on yields, especially in East Germany, Poland and Hungary, is not yet known. Nongrain crops have not fared as well-ex- cept in Bulgaria and Romania-because of poor planting conditions and a summer drought. Im- portant fall-harvest crops like potatoes, sugar beets, late vegetables, and hay are expected to fall below the 1966-70 average level of production. East Germany and Poland will have an especially acute shortage of roughage for feeding livestock this winter. Tt e only major nongrain crops for which a good t arvest is forecast for all countries is oilseed. East Eurc pe's demand for imported grain through June cf next year will drop an estimated 1.5 million tons below the record level of 9.1 million tons imported last year. Good bread grain harvests in the northern countries will lessen im- imort requirements for milling-quality wheat, but a shortage of fodder supplies will increase the demand there or feed grain imports. If the USSR agrees to provide as much grain to the deficit northern area as the estimated 5.5 million tons delivered in the year which ended last June, imports of free world grain by the northern countries are unlikely to exceed two million tons this year. Western sales of grain to southern East Europe are unlikely, unless Hun- gary's corn cop turns out to be smaller than :,urrently forecast. In fact, southern countries may improve their export earnings from agricultural products over the next 12 months. Romania and Bulgaria will be net e.