WEEKLY SUMMARY

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CIA-RDP79-00927A009200060001-6
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S
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26
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December 21, 2016
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May 15, 2008
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1
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Publication Date: 
November 26, 1971
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SUMMARY
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Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Secret DIRECTORATE OF INTELLIGENCE MEEKLY SUMMARY Secret State Dept. review completed 26 November 1971 No. 0398/71 Copy Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 25X1 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 i CONTENTS (Information as of 1200 EST, 24 November 1971) India-Pakistan: Fighting in the East . . . . . . . . . . . . . . . . . . . . . 1 Egypt: More Talk of War . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Indochina: Cambodia; South Vietnam; Laos; North Vietnam . . . . . . . . . . 5 Thailand: Tying Up Loose Ends . . . . . . . . . . . . . . . . . . . . . . 8 South Korea Charts a New Course . . . . . . . . . . . . . . . . . . . . . 9 Communist China: Shipping Expands . . . . . . . . . . . . . . . . 10 Communist China's Educational Policies . . . . . . . . . . . . . . . . . . 11 Meetings in Moscow . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Portugal: Terrorist Bombings Trouble Regime . . . . . . . . . . . . . . . . 14 Warsaw Pact Ministers Meet . . . . . . . . . . . . . . . . . . . . . . . . 15 Yugoslavia: Unrealistic Planning . . . . . . . . . . . . . . . . . . . 15 Problems Mount for International Labor . 16 MIDDLE EAST - AFRICA Burundi: More Loose Ends . . . . . . . . . . . . . . . . . . . . . . . . 17 WESTERN HEMISPHERE Political Stirrings in Panama . . . . . . . . . . . . . . . . . . . . . . . . 19 20 Honduras: Cruz' Problems Grow . . . . . . . . . . . . . . . . . . . . . NOTES: Japan; Iceland; Cuba SECRET Page i WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET India-Pakistan: Fighting in the East The largest and most costly military clashes in the eight-month-old Indo-Pakistani conflict erupted inside East Pakistan on 21 November. Mukti Bahini guerrillas, apparently supported by Indian air and ground forces including armor, fought Pakistani troops in a region between the West Bengal/East Pakistan border and Jessore town, some 20 miles inside East Pakistan. Con- firmation of widespread Indian military involve- men-: at Jessore is not available, but it is likely that Indian regulars, perhaps up to two 3,000- man brigades, participated in the operation, and that they penetrated some eight miles into East Pakistan. Indian officials at first maintained that the offensive was solely the action of Bengali insur- gents, but on 24 November, an Indian govern- ment spokesman admitted that Indian tanks had crossed the border three days earlier in what he described as a defensive action in which 13 Paki- stani tanks were destroyed. Also on 24 Novem- ber, !'rime Minister Gandhi told Parliament that Indian troops were instructed not to cross the borders "except in self-defense." Indian Army EASTERN COMMAND Page 1 The fighting was heaviest in the Jessore area, but incursions were also reported into the dis- tricts of Sylhet, Comilla, and Chittagong, as well as in the Chittagong Hills. Pakistan claims Indian troops were fighting in five places on East Paki- stani territory. In the first report of aerial losses, the Indians claim to have downed three Pakistani F-86s over Indian territory and to have captured two Paki- stani pilots. The Pakistanis admit losing two air- craft and claim they downed two Indian fighter jets. The View from Islamabad Shortly after the fighting broke out, Islama- bad accused India of instigating an "all-out offen- sive" and later threatened to request an emer- gency meeting of the UN Security Council to consider the alleged Indian incursion. On 23 November, President Yahya Khan declared a state of emergency, citing the "threat of external ag- gression" as the cause. The next day he called up the Pakistani reserves. These moves were taken primarily to dramatize the situation at home and abroad. In fact, Pakistan has been under martial law since March 1969, and the country has almost no reserve system. The Jessore clash followed closely on the heels of several conciliatory gestures by the Paki- stani President. In his message marking the Muslim holiday last weekend, Yahya offered a "hand of friendship" to India, his most con- ciliatory language in recent months. The message followed a cordial meeting between Yahya and the newly designated Indian high commissioner to Pakistan, J. K. Atal. There have also been indications that Yahya is becoming somewhat more receptive to the pos- sibility of negotiating with the disaffected SECRET WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET B H U T A N E of P 9 $stani F- b Jessor r p )r edit' s low , C1-,(7 T _,G SECRET Page 2 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET Bengalis, as it becomes more apparent that a move in this direction may be the price he will have to pay for preserving the nation. Yahya appears to be trying to gain enough time to trans- fer power to a civilian government, which accord- ing to his plans will be established in early January. Indira Gandhi's negative response to Yahya's holiday message and the escalating border clashes Indian Army 4TH MOUNTAIN DIVISION providE, little hope for an early political settle- ment of the crisis. Mrs. Gandhi publicly stated that if Yahya is sincere, he must release Bengali leader Mujibur Rahman, forgo the "farce" of by-elections in East Pakistan next month, and negotiate a political accommodation with the East Bengalis. Moreover, New Delhi still shuns international initiatives which it considers would only delay progress toward establishing virtual independence in East Pakistan. Thus, India ap- pears increasingly willing to risk a major war with Pakistan in order to force Islamabad toward a political settlement that would enable a sub- stantial number of the 10 million Pakistani refugees to return home. In addition, India is adding substantially to its support of the Mukti Bahini and broadening its press coverage of guerrilla successes. The Mukti Bahini- Growing Audacity The guerrillas are estimated to be in control of almost a third of rural East Pakistan, and the Pakistani Army and volunteer militia apparently provide little more than a facade of law and order in the remainder of the province. In Dacca, the army's search operation for Mukti Bahini ele- ments last week resulted in some 500 arrests and netted leaflets and a small number of weapons. The continuing wave of incidents in the capital demonstrates that insurgent activity has not been effectively reduced. There is also evidence that the guerrillas have decided that UN relief efforts will no longer be exempted from sabotage operations. On 23 November, two UN-marked coastal vessels berthed at Narayanganj-about 20 miles from Dacca-were mined. In addition, several UN trucks were reportedly commandeered by the Pakistani Army. The guerrillas have long held that UN operations support the Pakistani military. Fear for the safety of UN personnel led to the evacuation to Bangkok of about 40 nonessential staff and dependents on Tuesday. The accom- panying recall of UN workers from outlying posts to Dacca and Chittagong brings the 85-man relief operation to a virtual halt, at least temporar- ily. SECRET Page 3 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Z!ir,l..11C.L" I Egypt: More Talk of War President Sadat capped the bellicose rhetoric coming out of Cairo recently with two tough speeches last weekend. Speaking to military units, the Egyptian leader 'declared that "the time for battle has come" because there was no longer any hope for a peaceful solution. He claimed the US does not want serious N-peace negotiations and charged that Washington' S procrastination was designed to give Israel whatjt could not obtain by fighting in 1967. Sadat said the negotiations Israel had been seeking in the cotjtext of Secretary Roger's initiative would have one on endlessly, allowing Tel Aviv's occupationCof the Sinai to become a fait accompli. Sadat's remarks may have been ntended convey the impression that he had r the "decision" promised before the end o A decision to resume fighting, however, likely not been made. "The order t Sadat's words, "is still to come nd mu preceded by strenuous and fier training. any case, Sadat implied fur er political neuvering was possible if I el would respon positively to UN envoy Ja ng's initiative of last February and commit elf to complete with- drawal from territories ccupied during the June Sadat dou3tless also hoped his remarks would bring a _ increase in international pressure on Israel. Neweek, Egypt is expected to seek a resolution i the UN General Assembly calling on Israel to rypond positively to Jarring's initiative. Cairo is y fso likely to test the atmosphere in New York toward sanctions and an arms embargo against Tel Aviv. Meanwhile, public apprehension is growing in Israel, and governmpnt officials have accused Sadat of heightening Aar hysteria and of boxing himself in. Foreigl Minister Eban called upon Sadaf o "stop the public bombast" and to nego- tiate a ttlement. Declaring that Israel would not yield to ilitary intimidation or political pres- sure, Eban- aid that Tel Aviv must take Sadat's remarks Seri ysly. On Tuesday, military officials conducted the- first nationwide air raid warning test in six month', Page 4 SECRET Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET Indochina Cambodia: To the Rescue Again The South Vietnamese have responded to Cambodian requests for help with a new dry- season campaign against Communist main-force units, in eastern Kompong Cham Province. Ele- ments of a large South Vietnamese task force crossed the border on 22 November and have moved virtually unopposed along Route 7 in the initial phase of the operation. I-amiodi-ans obviously were reluctant to .be. South Vietnamese troops return, especially in view of their past-reco'rd of misconduct. Con- cer,r7.:-_over the Communist offerisjXe around Porn Penh and in the Route 6 area, apparently ,Ln ,d 1 L,_;possi_bility of rekindling anti-Vietnam- ese sentiment worth the risk. It seems doubtful that the movement of South Vietnamese units into eastern Kompong Cham Province will by itself relieve the pressure around the Cambodian capital, since the Communist units there are not responsible for defending the plantations in Kom- pong Cham. It is possible that the South Vietnam- ese drive will force the Communists to pull their 9th Division regiments away from operations against Cambodian troops in the Chenla II area along Route 6. The So V -l ve--i feel- ings about incursions into Cambodia. ey would like to see Cambodian forces do the fighting on the Cambodian side of the b `rder, but Saigon recognizes that the Cambo _'ar ns are no match for Communist main forces d that the continued presence of large eny units just over the border constitutes a threat: The South Vietnamese see it as in their owpj ffi terest to carry out limited cross- border oper1ions, but they will ensure that such forays,,d6 not cut into defenses at home. This cautious approach stems from earlier dry-season campaigns and is likely to be the basis for South V %thisyear. The proximity--(if the Communists -..Q-,- the capital, following hard on last month's con- troversial political changes, has made some resi- dents apprehensive about the depth of the govern- ment's concern for them arfd about the army's ability to defend Ptntm Penh. No major attacks have been mounted ie g,nmur ists-dur'rrV'Tfl f st'few days, and SECRET 25X1 Page 5 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Pehe`rTtriri"ie bias not been liit by rockets' siV nce ? ;, ,,.GI.eve7 fiber. A government task force, twice reorganized, recaptured the village of Tuol Leap unopposed, but it has made little progress in driving the Communists from this area. Major elements of the enemy's Phuoc Long Front remain within striking distance of the capital. Several additional bat- talions from the Chenla II area have been airlifted to Phnom Penh by South Vietnamese helicopters and are scheduled to join renewed clearing opera- tions at week's end South Vietnam: The-Opposition Lies Low ._, The- strtvtt?"- ?o fftic~`f-pdsition of .the Thieu government is attributable in part to the weakness and division of the opposition. Radical student and veterans groups, which were in the forefront of anti-government demonstrations q&ring the presidential election campaign, have Aden quiet in recent weeks. Their leaders are cplaining pri- vately that they have been una a to get much support for agitation either fry~ their own fol- lowers or from other anti-government leaders. One veterans' faction is evp said to be looking for ways to cooperate witn'1resident Thieu. ill Other influentialppposition groups also have indicated that they will keep a low profile for the time being. The .ter Quang Buddhists, the one group capable of osing a serious threat to gov- ernment stability ,apparently will stick to a mod- erate policy o seeking to improve their position by working within the system. Tri Quang, the leading poljic:al voice among the Buddhists, be- lieves tha'An Quang should accept the fact that they cantot force Thieu out of office. Tri Quang was a rti otivating force behind An Quang's partici- pation" in the recent legislative elections, and he apparently intends to rely heavily on representa- tives in the National Assembly to advance Bud- dhist"interes"'f's. He' has-no-strong challengers for power--=within-.the An Quang move.merA_4, his views probably will predominate. Some other fn- Quang leaders favor a more active 4nti-govern- ment policy, however, and they will continue to look for opportunities to promote' their views. There are indications that the Progressive Nationalist Movenr nt-one of the country's strongest politip& parties-may abandon its pos- ture of mo4ate opposition and join the govern- ment mp. Some of the party's leaders have been ne rating with presidential aides, but they pri- ville y acknowledge that other elements of the party favor a- continued opposition TS000P . Reaction to the economic reform package announced by the government last week has been surprisingly mild thus far. Some critics of the government have attacked the reforms, but their protests have looked pro forma. Many people have adopted a wait-and-see attitude, and if prices continue to rise as a result of the measures, the protests are certain to increase in intensity. For its part, the government is strengthening its position in the newly elected Lower House, and it now appears to have a majority of the deputies firmly in its camp. At the urging of presidential aides, pro-government deputies are taking a tough line and are refusing to com- promise with the opposition. Although these tactics will help assure majority support for the government, they could alienate some inde- pendent and moderate opposition deputies whose backing may be needed in the future. In the past, the government has been able to secure passage of high-priority legislation by mustering a two-thirds majority in the Lower House to override less desirable Upper House versions. It now is ques- tionable whether the government's tactics will deliver a consistent two-thirds vote in the new house. Page 6 SECRET Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET ? Government-held location 0 Communist-held location was airlifted into an area north of Ban Phone, a North Vietnamese logistic center northeast of the Bolovens Plateau. The irregulars captured the vil- lage without a fight on 21 November. Three other irregular battalions are moving overland from Saravane to strike at transportation routes at Thateng. Neither of the operations has yet en- countered significant enemy resistance, but the Communists presumably will react strongly to these threats to their supply network. The North Vietnamese are known to have six battalions in the northern Bolovens area, most of which have been concentrating on rice collection rather than military operations for the past few weeks. In the central panhandle, the Communists may be ready for dry season action. After several weeks of relative inactivity, North Vietnamese units attacked government forces near Muong Phalane and drove them back more than 12 miles. The pace of military activity is increasing as both sides prepare for the North Vietnamese dry-season offensive. Premier Pham Van Dong arrived in Peking on 20 November for an official visit that has been marked by effusive protestations of Sino - North Vietnamese solidarit . In southern Laos, the government has launched operations to keep Communist forces off balance and to disrupt supply and troop con- centrations. A four-battalion irregular task force SECRET Page 7 WEEKLY SUMMARY Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 SECRET JAPAN: The Liberal Democratic Party clea ed a major hurdle on 24 November when the Lower House ratified the controvers;j T Okinaya Rever- sion Agreement. Passed 285=73, the loor vote was boycotted by the Communists and Socialists. The Democratic Socialist- and Komeito represent- atives voted against rification but were per- suaded to take part )in the proceedings after the ruling party agreed to support a resolution calling for a nuclear-freekinawa and a reduction of US bases on the isl~hds. The treaty now goes to the Upper House where approval is a procedural formality. . ShortlyIafter the vote, radical student vio- lence in T yo erupted and large-scale labor ral- lies drew veral hundred thousand demonstrators through t the nation. The protests will continue as the to government attempts to push through seven elated packages of implementing legisla- tion. here is considerable doubt that these meas- ures ill reach a floor vote before the Diet re- ces s on 24 December, and debate may extend w ll into the new year. Thailand: Tying Up Loose Ends It was scarcely a revolution or even a coup, but the military leaders who were quick to apply those labels to the abrogation of the constitution last week have had to make changes in the admin- istrative machinery that rules Thailand. Although not significant in themselves, the changes have given rise to some maneuvering among second and third echelons in the military establishment and have provided some indications about the future fortunes of some of the principal military leaders. A new 16-man National Executive Council, with Field Marshal Thanom as chairman, will ex- ercise authority for an interim period of three or four months until a new cabinet is set up under a provisional constitution. The day-to-day conduct of affairs will be under the jurisdiction of military and civilian "divisions." The military division is headed by General Praphat, and the civilian by General Prasert. This could be a step up for Labor Demonstration in Tokyo on the 18th Prasert, but it seems likely that Thanom and Praphat will keep him on a short leash. Q-t g finer _, in the new setup is General Krit who, in addition to being deputy commander of therrrr forces, now acts as secretary gene al of 15e -ruling revolu- tionary party. Thereis`some speculation in Bang- kok that Krit riow is the number-three man in the rulirig, hierarchy. The--pr+ne-ipal -losers in the shuffle appear to be Thanom's brother, Sanga Kittika xn, whose assertiveness annoyed-.-.the -other leaders, and Sawaeng_..Senanorong, the only top leader who opposed the scuttling of parliament. Former for- eign minister Thanat has still not been given a position in the new administrative machinery, but the fact that he was selected to represent Thai- land at the ASEAN meeting suggests that he still has a future. SECRET Page 8 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 SECRET Thanom has publicly promised a return to con- stitutional rule, but this is probably for foreign consumption. The ease with which the military lead- ers have made the change-over is reflected in the commentary in the Bangkok press, which has blamed the "irresponsible" parliament for the de- mise of Thailand's two-year experiment with govern- ment. Now, however, with no parliament to blame for Thailand's difficulties, the burden will fall Sout)i, Korea Charts a New Course Sout orea's leaders have set the country on a more flexible nurse in foreign affairs in an effort to avoid becoming lated by changing power relation- ships in east Asia. The government is making a serious effort to shak off its rigid anti-Communist image and an equally a est attempt to compete with North Korea for intern Tonal acceptance. Officials close to Preside Pak, including Prime Minister Kim Chong-pil an Central Intelli- gence Agency Director Yi Hu-rak, h 3v led the de- velopment of this new policy. Spurre by uncer- tainty about the long-term implication of the Nixon doctrine for Korean security, the\ have 25X1 sought to develop relations with Eastern Euro nd p to arrange contacts with the Soviet Union an The most 1 por- ant development, however, has been the opening of a dialogue with North Korea on the reucation of divided families. This move, more thart- any other, has reflected the South Korean leadglship's sense of confidence that the country had advanced to the point where it is more than a ri tch for the North. Seoul, sparked by Pe.('et`ng's entry into the UN, has also undertaken a _l se review of its standing with that internationa Jrganization. Acknowledging that support for it,ithe UN vis-a-vis North Korea had slipped somivhat, South Korea was prepared this year to accept some form of UN recognition of the two Koreat While the issue has not come up for debate in the current General Assembly session, Seoul is anticipating pressure from Peking in the 1972 session for an end of UN support for South Korea and is taking a fresh look at its approach to the whole problem. squarely on Thanom and Praphat to deal effectively with the country's economic problems, its growing insurgency, and the security menace near its bor- ders. The government's threats to bear down hard on any show of defiance should prevent public dis- plays of disaffection, but Thanom will run into difficulty within the ruling group if his policies prove ineffective or his leadership irreso- China's emergence in the UIJ'and in interna- tional affairs generally has, also 4 ompted Seoul to lessen its traditional hostility. Toward Peking. The South Koreans do not anticipate that their attempts to open a dialogue wills ceive a positive response over the short term, bO, they feel it useful to dem- onstrate their reasQf ableness to the Chinese who, over the longer pull, might be influenced to restrain Pyongyang. W~ire China looms large in South Korea's fu- ture,..Seoul's close ties with Japan are a major ele- mrit in current foreign policy decisions. Japan's economic involvement in recent years has been an "important factor in South Korea's growth, but this has not eliminated the deep resentment and distrust of Japan stemming from the Japanese occupation. though this suspicion militates strongly against an significant Japanese political or military role in the untry, Seoul realizes that Japan's economic predo ' ance may perforce bring a greater Japanese security r e in the region-a role the South Koreans would like see balanced by US involvement in some Asian setirity arrangement. In their eager rents in east Asia, e South Korean leaders recog- nize that their room hostile northern neighb maneuver is limited by a , and they accordingly in- their policies on their alliance with the US. Neve? heless, because in their view the role of the US in Aa is diminishing while China and Japan are becomir g more important, the South Koreans will attempt to broaden the range of their policy o tions. SECRET Page 9 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET Communist China's Educational Policies Several key elements in Mao Tse-Tung's radical reform of higher education may be modi- fied as China's universities open for their second year of operation since the Cultural Revolution. The treatment given higher education in domestic propaganda suggests that a number of problems remain, but a major article in Red Flag, the authoritative party journal, earlier this fall does indicate that a more moderate approach is likely to prevail in many places. The article reviewed the difficulties in- volved in "revolutionizing" scientific and tech- nical training at Tsinghua University, China's fore- most engineering school. When Tsinghua resumed full-time classes last fall, it introduced several Maoist innovations, but they sparked considerable debate, precipitated serious conflicts over enroll- ment policy and the curriculum, and damaged teacher morale and student discipline. Red Flag's candid description of the problems encountered at Tsinghua probably reflects guidelines formu- lated at a lengthy national education conference concluded in September in Peking-guidelines which are still apparently being debated at other colleges and universities. The lengthy delay in developing a program for higher education in China clearly is the result of the inherent difficulties involved in maintaining academic quality while responding to Mao's call in July 1968 to break the intellectuals' stranglehold on the education system. Mao or- dered that university schooling be shortened and that curricula be oriented away from theoretical studies toward political and vocational training. Students were to be drawn primarily from among workers, peasants, and soldiers. Former faculty members were to undergo rigorous political re- education, and universities were to be placed under the control of worker-soldier propaganda teams which were to carry some of the instruc- tional load. While the Red Flag article reaffirms these prescriptions, it stresses their negative impact and suggests they should be modified substantially in practice. It argues, for example, that time-con- suming political re-education and labor require- ments have curbed the enthusiasm of many faculty members and disrupted their "personal SECRET Page 11 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 RET 1ourtn joint stock company sched- ,tablished with Ceylon in January China's intr rational fleet makes up about a quarter of its t( ii merchant fleet, which ranks 20th in the wor As its seaborne foreign trade increases, China robably intends to expand this freer principally -rom domestic resources, thus t olcinq down h. :i-currency outlays for the our- chase and chartei )f foreign ships. Hekinq is c. show the f!aq. r tries Newer and tioriai routes, w orr(.uasta; merchant ships cuercy at third American ports flag visits contrv" t;-)reign polu;y. nq its small merchant fleet to !rticularly in developinq coun- 3rger ships are used on interna- ie older ships are relegated to ade. Chinese Communist - flag re calling with increasing fre- iorld ports, landing at South r the first time this year. Such ite to Peking's current activist Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 n ;;t China: Shipping L pands rr; to handle over 90 percer- of its :jr;r- Chinese merchant ships in n:erna- ro produce ocean-going Fier t . nas t;rst 20,000-ton dry-ca co ship. icr runt fleet, first established ir 1961. phi be in service soon. Pekin-'s inter- 03 69 ships totaling nearly x,00.000 -:nee.=Iinr_ Irns. t= using ships flying the Chinese anew by 26 percent last y-~ar_ The t t tapered oft this yr=n:3r. but.. Purchase new and used ton- ships- China currentiy parr,cipates Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET ease of mind." It recommends they be given more say in determining course content and more time to prepare lectures and engage in professional research, including the "discriminating" study of foreign scientific and technical journals. The pragmatism of Red Flag was also under- scored by its proposals for sharp limitations on student power, at its zenith during the Red Guard phase of the Cultural Revolution. According to Red Flag, activist students should no longer be allowed to interrupt lectures when they spot po- litical errors, and propaganda teams are to refrain from differing with the teacher's professional judgment. Although these concessions hardly presage complete academic freedom, they attest not only to the renewed concern for the quality of higher education, but also to the tenacious resistance of teachers to the Maoist anti-intel- lectual bias. Indeed, many have refused to return to teaching because of persistent political intimidation. Red Flag had some critical comments on the program for recruiting worker-peasant-soldier stu- dents into the university. Recruits from this group caused serious difficulties when they were thrust into classes alongside more qualified former students who returned to school last year after performing manual labor on farms and in factories since 1968. Red Flag admits that at- tempts to treat all students in the prescribed Maoist egalitarian fashion proved so demoralizing that the worker-peasant-soldier students ulti- mately had to be given "supplemental" academic work. The Tsinghua solution suggests that Peking is attempting to return to a more demanding educa- tional curriculum-a proposal that has been cas- tigated by radicals as an attempt to "dish out a capitalist double-track system." If widely copied, it would mean that programs not currently availa- ble on a broad scale would be offered to capable students in an effort to remedy the serious short- comings caused by the cessation of higher educa- tion during the Cultural Revolution. The moderate thrust of Red Flag has been echoed in other articles in recent weeks. These, include a frank admission by the directors of one engineering college that they had been remiss in neglecting basic theoretical course work. The admission stands in sharp contrast with a number of articles by other university authorities stressing only practical course content. Sentiment for a change is not only limited to course content, however; controversies also exist over other as- pects of the Maoist reforms-the university-spon- sored factory system, the attenuated period of schooling at both lower and higher levels, and the banning of a wide range of sociological and tech- nical books formerly used in the schools. The present debate by no means signals a complete departure from the broader Maoist goal of providing university students a mix of basic formal training and practical labor. Peking, in fact, remains committed to the retention of propaganda teams as permanent ideological watchdogs in the colleges, and to linking ad- vanced theoretical research to the solution of practical agricultural and industrial problems. Nevertheless, the general trend appears to be toward providing a differentiated education for qualified students, particularly those with an aptitude for high-priority technical fields such as science, engineering, medicine, and foreign lan- guages. SECRET Page 12 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 SECRET Meetings in Moscow The Soviet party central committee met for two days this week in Moscow to review the five-year plan before its final formal adoption by the Supreme Soviet. In addition, the central com- mittee heard a report by General Secretary Brezhnev on the conduct of foreign policy since the 24th Party Congress and made some changes in the composition of the party's ruling bodies. The plenum went only part way in this regard, however, leaving a number of loose ends hanging. Most importantly, Gennady Voronov re- tained his seat on the politburo, where he has been a lame duck since July when he lost his job as premier of the Russian Republic and was re- assigned to a relatively insignificant post. Mikhail Solomentsev, who replaced Voronov as the Rus- sian premier, was elevated by the plenum only to candidate membership, probably because the plenum failed to remove Voronov. Solomentsev was also released from the party secretariat, but no one was named to assume his responsibilities for heavy industry on that body. Voronov may owe his reprieve partly to the efforts of his politburo colleagues to prevent Brezhnev from completely dominating the deci- sion-making process. Over the years, Brezhnev has been able to place a number of supporters in the politburo and secretariat, and has suc- ceeded in maneuvering such critics as Voronov and Shelepin into positions of lesser power. Despite obvious gains in Brezhnev's authority, however, there have been no departures from the politburo since the retirements of Mikoyan and Shvernik in 1966. On outward appearance, Brezhnev dominated the plenum. Not only did he speak on foreign policy, but he summed up the "debate" on the economic plan and budget. The foreign policy address has not been published, but the plenum issued a communique approving it. At the Supreme Soviet, which convened on 24 November, Kosygin took the spotlight by de- livering the report on the five-year plan instead of planning chief Baybakov. The Supreme Soviet, which may last through the 27th, is also expected to adopt the annual plan and budget for 1972. SECRET Page 13 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SEG1U T Portugal: Terrorist Bombings Trouble Regime Prime Minister Caetano has received Na- tional Assembly approval of special powers to combat subversion following recent terrorist bombings in the Lisbon area. The police have so far failed to apprehend those responsible, and the government believes special powers are needed because of the difficulty of monitoring and rounding up suspected terrorists. Under a new amendment to the constitu- tion, Caetano could have assumed special powers without recourse to the as?embly, but he wants to bolster the moderate imagge of his regime. By moving quickly Caetano will undercut right-wing criticism of police failu1p to prevent the bombings. In communiques to the fo illegal revolutionary groups hav credit for one of the three recent ign press, t each cl;i1ned s fsspected Armed Revolutionary Action, whit of links with the Portuguese Com took responsibility for the explosion ber at the new headquarters of the NA Atlantic Command. This self-pro , ime anti dictatorship rganiz anti-colonialist , been involved in several bombjf g incide the past year. The targets a chosen to symbolize its op pear to hav st Party, 27 Octo- radical, on has s over ties with the US and NAftO, the governm effort to put down the revolts in Portugu been al's is Africa, and the tactics~of the Portuguese Secr ICELAND: Rey 4,avik's negotiat earlier this mo . when attempti and West Geran agreement to Iceland's ter torial waters from Bonn and London did agree to servation easures, and Reykjavi rs got nowhere g to win British 2 to 50 miles. consider con- 's inability to enforce s will would seem to erf ourage com- promis 'In fact, however, the centr-left govern- ment as little flexibility in its position, which is the major plank of its foreign pol'cy program. Moreover, the fisheries minister, a member of the Communist-dominated labor alliance, remains Police. Although the secret ,police arrested 29 suspected ARA members:Ist September, the bombing of NATO headquarters a month later showed that the group's leaders are still at large. Although most political observers have con- cluded that there is a strong link between the ARA and the orthodox Portuguese Communist Party, their relationship to the revolutionary brigades is difficult to determine. There are dif- ferences and similarities in the rhetoric of the ARA and brigade communiques, but their bomb- ing techniques are identical. Thus, the possibility exists that the orthodox Communists have sponsored the brigades to divert police attention from the ARA. The obvious expertise and su- perior organization of ARA and the brigades are a striking contrast to the crude efforts of several minor terrorist groups that the police have uncovered and suppressed in the year. e UK and West Int cy doesn't carry ate Iceland's agreements with rmany by 1 March if diplo- e day, and to ignore the pstice if, as seems likely, it is uled f jurisdict is to mov Reykjavik in Jan ound of talks is sched- ry, and the longer the n fight drags on, otiating a phase pledges-n SECRET e less likely Iceland f its foreign policy 25X1 Force. past Page 14 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 SECRET Warsaw Pact Ministers Meet A meeting of the pact foreign ministers or their deputies is expected to take place in Warsaw on X10 November. The possibility of the imminent conclusion of the inter-German negotiations on Berlin makes such a gathering timely. The-Era GermaaaJ yq. acknowledged -privately. that they are under -con- si.derable -pressure to wind up the talks, and Pravda on 18 November went so far as to mis- quote East German party chief Honecker to the effect that the German talks "can and must be successfully concluded in November." Pravda further argued that it is necessary to begin prep- arations in the "very nearest future" for a Confer- ence on European Security and Cooperation. The Yugoslavia: Unrealistic Planning Belgrade's development plan for 1971-75 is designed to promote long-run stability, but attain- ment of several of its targets is in doubt. The plan envisions a reduction in the growth rate (7.5 percent in real output) and less rapid price and wage increases than in recent years. The republics and the trade unions will inevitably resist slower growth because personal incomes and consump- tion Will be affected, while the proposal to limit price increases to five percent seems optimistic in light of the 14-percent increase so far in 1971. Further efforts to retard an increase in the rate of domestic consumption will be handicapped not only by the indecision of the federal government but also by the new governmental structure that gives :he republics more independence. USSR will probably try to use the expected pact meeting to issue a fresh appeal for such prepara- tions, in the hope of influencing the NATO minis- terial scheduled for 9-10 December. The pact foreign ministers may also take up the question of mutual force reductions, but Mos- cow has thus far attributed little urgency to this question. There is no sign that the Soviets and their allies have done much work to develop a common position. The specter of Romania-hangs over any attempt to come to a common bloc position. Bucharest has frequently been a thorn in the side of its allies at pact conclaves and Ceau- sescu's views on mutual force reductions are known to be at variance with those of his more orthodox colleagues. Planners hope to reduce the balance-of-pay- ments deficit by stimulating the growth of both exports and invisible earnings-particularly from tourism and workers' remittances-while restrain- ing growth in imports. Although the planned in- crease in exports of 11 to 13 percent is not unreasonable, much of this increase will probably be with CEMA countries, which will not redress the large imbalance with hard-currency countries. The expected increase in imports of 9 to 11 percent is far below increments of the past several years, except for the recessionary period of 1966-67. Meanwhile, continued growth in invisi- ble earnings is dependent upon a prosperous West- ern Europe inasmuch as an economic downturn there would reduce the flow of worker remit- SECRET 25X1 Page 15 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 OL Li1[ L, 1 Problems Mount for International Labor he coming enlargement of the European Commllties along with movement toward East- West detent and international economic develop- ments are c .sing considerable ferment in the European and 'nternational trade union move- ments. European affiliates of the International Confederation of F"r e Trade Unions met in Oslo on 5-6 November an set up a working party to suggest approaches to t ese problems. The work- ing party will concentra on how labor should deal with an enlarged E and the growth of multinational corporations i promoting labor's goals of full employment and constantly rising standard of living. Working pa proposals, if adopted, would be put into force \y 1 January The Oslo meeting reflects a growing'ware- ness on the part of European trade unions their response to the development of the E so far been grossly inadequate. While t unions have long had offices in Bru s, their influence on EC policies has been. mited and coordinated collective bargaini on a com- munity-wide basis is a long way- f. There are, nevertl Tess, tentative signs that some labor unions rye ognize the problems posed by such developrnerts as the multinational cor- poration. The auto-producing sector of the Inter- national eta workers' Federation, in which the American W participates, some months ago singled ox the Ford Motor Company for com- mon action in extracting benefits on a world-wide scale. ?he aim is to press for labor contracts that all t rminate at the same time so as to enable unions to try to force coordinated collective bar- gaining with Ford as a whole instead of wi hif its separate enterprises. This procedure, if suc ssful, may serve as a model for dealing w) other multinational corporations. The development of a r Are effective Euro- pean labor organization w. P obviously be a long and arduous process, no ly because of the dif- ficulties posed by the ntinued Communist dom- rade unions in France and ina/e Italowever, may in the future be moontacts with the Communist unimeeting, Nordic delegations prent in this direction and, sub- seqands union reversed 40 years offs that it now favors increased ntacts with the Communists. Meanwhile, in Italy the negotiations toward a merger of Com- munist and non-Communist unions drag on to- ward a still elusive accord. The movement of European unions both oward greater unity on a regional basis and to- d a relaxation of their traditional anti-Com- st stance will further weaken the over-all struc ? re of ICFTU. Non-European affiliates have steppe p their attacks on the European dom- inance o ICFTU leadership positions and have called for re equal representation. The possi- bility of coo eration with the Communists will likely doom a' possible reconciliation between the ICFTU and -e powerful AFL-CIO. The lat- ter's withdrawal frd'- the ICFTU in 1969 was in part caused by this ist~e. Thus, as European Iabor25X1 addresses its most pressing problems, the status of ICFTU as a global organisation will suffer further decline. SECRET Page 16 WEEKLY SUMMARY Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 SJ (iKr;t Burundi: More Loose Ends President Micombero has survived a power play designed to tie his hands and on 28 Novem- ber celebrates his fifth anniversary in power. The President may use the occasion to make some changes in his government. Late last month, Micombero established a Supreme Council composed of himself and 27 army officers in order to meet a challenge from a radical faction in the government, which was in- tent on isolating him and assuming power. The radicals, led by Foreign Minister Simbananiyeand Justice Minister Shibura, managed to discredit their moderate opponents, charging them with plotting against the government and bringing them to trial. The radicals' influence crested in mid-October when Simbananiye brought about a resumption of diplomatic relations with Peking, which had been suspended for six years. Since the establishment of the Supreme Council, the radicals have been lying low. Led by the army commander and chaired by the Presi- dent, the council is a throwback to the revolu- tionary council that supported Micombero when he seized power from Burundi's failing monarchy in 1966. The new council has authority over a broad range of political and administrative mat- ters, includin the selection of senior government officials Thus far, Micombero has not moved against the radical leaders themselves. Moreover, the trial of moderate officials is still going on, although the prosecution has failed to come up with per- suasive evidence against them and the army is skeptical of the charge. Micombero may take the opportunity of the celebration of his accession to power to announce a cabinet shuffle and perhaps even reinstate the moderates. Micombero may also announce plans, - ed~~ araJ weeksr, to draw up a new constitution to replace the one scrapped when he took power and to prepare for national elections. For these tasks, Micombero will probably rely mainly on the Supreme Council rather than on civilian officials, who are badly factionalized and incorrigibly addicted to political intrigue. SECRET Page 17 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET LIBERIA: The Tolbert administration is review- eral years, foreigners have repatriated about $50 ing concession agreements with foreign investors, million annually in investment income. beginning with the largest iron mining firm in the country, the Liberian-American-Swedish Mining Company. The company has $275 million in- vested in Liberia and appears willing to accede to most of the government's demands. It challenges, however, the government's charge that the com- pany has understated profits to avoid taxation. Like the other three firms in the industry, the company pays one half of its net profit in taxes. Nevertheless, government revenue from iron mining profits is only 16 percent of total revenue even though iron ore accounts for 70 percent of export earnings. Since taking office, President Tolbert has carefully stated that his predecessor's open door investment policy would continue but that investors would have to provide more jobs for Liberians, and Liberia must receive a greater share of protits. Employment opportunities for Libe- rians have stagnated, and the need for more jobs may be a major motive for Tolbert. He also recognizes that there is considerable scope for increasing government revenue. For the past sev- SECRET Page 18 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 S;EUX ; l Political Stirrings in Panama Now that celebrations marking the third an- niversary of the coup which put General Torrijos in power and the 68th anniversary of Panamanian independence are out of The way, the rhetoric and patriotic posturing of October and early Novem- ber is giving way to a period of reassessment. The focus of government attention remains on the canal negotiations, but the regime is also begin- ning to work out the mechanics of next year's assembly elections. Various pre'sure groups are attempting to ascertain the thrusf?pf government policy so as to formulate their in positions. Aside from the Communist Party, h-cwever, most groups have scant expectation that they will bene- fit from any relaxation in the current D on political activity. Although Panamanian negotiators in Wth;, ington last week publicly expressed optimism t work on a new treaty could be completed b end of the year, at home the government seoFns to be hedging its bets, utilizing the media tqy- dimin- ish public expectations that agreeme can be won quickly or painlessly. The goviment has not begun to stir up anti-US sentim t or prepare the people for the possibility of monstrations. But in a press interview, which s not circulated in Panama, Torrijos warned t t force might be- come necessary to recover th Canal Zone. Panama is makinliplomatic efforts to gain support for its negoyating position on the canal, and its election toAhe UN Security Council will facilitate these ef?Ybrts. Thus far, the Panamanians have obtained Xrong public backing from Costa Rica and a promise of support from El Salvador, but efforts%o gain dramatic public statements of support t(om Spain and Mexico have been less successful. News services in Communist countries have begun to focus on the canal issue and are encouraging Panama to be firm. On the domest;t front, the government once again appears to be experiencing a shortage of funds. Efforts t9 advance the "revolution" will accordingly reLf; at least in the short run, on bureaucratic reforms rather than bold new spend- ing program': The regime, for example, is getting ready to{.Sromulgate a new labor code. It will extend overnment support for collective bargain- ing anprovide for compulsory union dues check- off.oth labor and business are watching very carefully to see whether the new code will include fday raise provisions. The business community `strongly opposes provisions for payment of an extra day's salary each week. Its inclusion would signal Torrijos' readiness to move ahead with rather sweeping social reforms. Its exclusion would indicate a continued interest in wooing the usiness community. kfter three years with virtually no political activit; a good deal of interest is being given to the government's promise of legislative elections next year>; Traditional political groups, however, probably wijl find themselves frozen out of the process. The`,- oting districts are expected to be heavily weighfed in favor of small rural constitu- encies easily cort`'lolled by the government, which will probably organize an official party or elec- toral front. The Communist Party, the only polit- ical organization thAt Torrijos has allowed to function, probably hopes that it can parley its informal relationship with the government into a more open and structured relationship in the new legislature. SECRET Page 19 WEEKLY SUMMARY Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 SJ XJKET Honduras: Cruz'Problems Grow The stability of the lackluster Cruz admin- istration is deteriorating because of a lack of leadership and the strain of competing political ambitions. A deepening fiscal crisis may be the final straw, and the government could be toppled, perhaps in a matter of weeks. Since Cruz took office last June, practically nothing has been done toward implementing even the "minimum plan of government" recom- mended by business and labor to stimulate invest- ment and foreign commerce and to improve the planning process. Businessmen gave the first ma- jor public indication of dissatisfaction by sending a large delegation to Cruz on 11 November to protest his inaction on Honduras' many pressing problems. Cruz, however, claims that he inherited an almost empty treasury and that heavy spend- ing by the outgoing government left him only 30 percent of the budgeted funds to cover seven months of the fiscal year. The deficit in 1971 is expected to reach some $18 million. The Presi- dent has asked congress to approve moderate tax increases, but the measure is likely to be watered down. In addition to the fiscal and economic prob- lems, Cruz, who spent his first six months in office refereeing a scramble for political jobs, now proposes to rock his administrative boat by dis- missing three cabinet ministers. One is the min- ister of labor, and the fairly strong trade union movement is threatening strikes if he goes. Also rumored to be on the way out are the ministers of finance and economy, both initially forced on Cruz by the party machinery. Cruz may decide to follow through on these dismissals as a means of testing his own strength. He is sure to emerge the loser, as he has no power base apart from a waning national commitment to the "unity pact" that placed him in office. His government has also been weakened by the machinations of several would-be successors, notably General Oswaldo Lopez the chief of the armed forces and a former president, and Minister of Government Ricardo Zuniga. If the Cruz government is not brought down by these domestic problems, it is only a matter of time before the President's intransigence on for- eign policy will necessitate his removal. Honduras' most urgent foreign policy need is a settlement with El Salvador, and Cruz has curtly rebuffed several Salvadoran overtures for negotiation. He believes that Honduras has the stronger claim to the disputed territory and has stated categorically that adjudication by the World Court is the only acceptable avenue for settlement. 25X1 The most obvious successor to Cruz is Gen- eral Lopez, whose eight years of inaction in office look good only by comparison with Cruz. ~ SECRET Page 20 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927A009200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 SECRET SECRET CUBA: The touring Fidel Cas- tro has been successfully dem- onstrating Cuba's solidarity with Chile and improving his international image. Although he has been re- ceived cautiously by a number of Chileans, particularly the Communists, the Cuban prime minister continues to speak at mass meetings, chat with uni- versity students, and meet with local workers. He has been circumspect in his re- marks, however, lest he be ac- cused of meddling in Chilean domestic affairs. Castro has re- peatedly stressed the impor- tance of unity between Latin American countries and the strengthening of brotherhood and friendship between Cuba and Chile. He was even less bitter than usual about the US base at Guantanamo, saying only that Cuba "one day" would recover it without a shot being fired. Castro has been so pleased with his sojourn in Chile that he reportedly plans to extend his visit for a few days. His heavy schedule has thus far allowed little time for him to confer with Allende other than on the two-day cruise to Punta Arenas last week. Castro may wish to talk at length with Allende before returning to Cuba, possibly with stops in Peru and Ecua- dor. Page 21 WEEKLY SUMMARY 26 Nov 71 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Next 1 Page(s) In Document Denied Iq Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6 Secret Secret Approved For Release 2008/05/16: CIA-RDP79-00927AO09200060001-6