CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A007000170001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 15, 2016
• Document Release Date: February 12, 2003
• Sequence Number: 1
• Publication Date: May 14, 1963
• Content Type: REPORT

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14 May 1963
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
25
Laos: Kong Le apparently plans major offensive
on 16 May. (Page 4)
3. Common Market-. EEC Council makes only limited
progress toward accommodation with US over tariff
negotiations. (Page 5)
2.
4. Syria-Iraq: Cabinet changes fail to ease tensions.
(Page 6)
5. Cyprus: Turkish Foreign Ministry says situation
on island is worsening. (Page 7)
6. Indonesia: Government will impose new regula-
tions on foreign oil companies. (Page 8)
7. British Guiana: Situation report. (Page 9)
8. Chile: Commercial mission will discuss trade ex-
pansion with USSR, Poland, and Czechoslovakia.
(Page 10)
9. Notes: Rumania; Brazil. (Page 11)
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Laos: ((Kong Le apparently plans to launch a major
offensive in the Plaine des Jarre on 16 May, despite
opposition by Premier Souvanna)
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~On 11 May Kong Les chief of staff, Meo leader
Van Pao and a Lao army representative reportedly
agreed on a plan to retake lost neutralist positions.
Primary targets are Xieng Khouang, Lat Houang, and
Sala Nong Pet, with Khang Khay and Ban Ban second-
ary targets. The attacking units will be mixed neu-
trali*t, Meo, and Lao army units.))
a return to a daily-visit basis.
pressure by the Polish ICC re resentative to agree to
(The US army attachd in Vientiane believes such
an attack would probably fail for lack of necessary co-
ordination, timing, and mobility. It might in fact trig-
ger a sharp Communist countermove, possibly involv-
ing use of North Vietnamese forces, and result in a
rout of Kong Le's troops)
'ouvanna's opposition reportedly is based on his
desire to continue diplomatic and political moves for
the time being. He told Kong Le on 9 May he still had
"a couple of cards to play:' The premier apparently
intends to maintain the ICC team in the Plaine des
Jarres on a. "temporary but continuing" basis, despite
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Common Market: (The Common Market's Council
appears to have made only limited progress. at its 8 9
May meeting toward resolving differences with the US
over the tariff negotiations to be held at the. GATT min-
isterial meeting opening in Geneva on 16 May.
Although the Council is prepared to take an active
part in the Trade Expansion Act negotiations and agreed
to engage in automatic and general linear tariff reduc-
tions, it avoided endorsement of the US proposal for a
50 percent across-the-board reduction in tariffs. It
proposed instead that the GATT ministers establish a
working party to evaluate both the US and any other pro-
posals for conducting the negotiations. Considerable
backing was evident at the Council meeting for the French
plan for "harmonizing" tariffs among the major indus-
trial nations. The EEC Council chairman has said the
EEC now expects the US to make a real effort to find
some compromise.
The Council. agreed in principle that agricultural
trade should be included in the GATT talks as the US
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the EEC's resolving its internal differences over imple-
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 *Syria-Iraq.- The 13 May reshuffle of the cabinets
in Syria and Iraq has failed to ease the tensions between
Baathists and Nasir.
E
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Syria's new cabinet appears to be even more Baathist-
dominated than its predecessor and pro-Nasirist elements
have been largely replaced by nonpolitical civil servants.
Baathist leader Salah al-Din Bitar remains as prime min-
ister, while Army Chief of Staff Hariri has moved into
the Defense Ministry post in addition to his previous
duties. Hariri, who opposes union with the UAR, seems
to be on the way to becoming Syria's strong man,
The Iraqi cabinet is essentially unchanged, except
that Baathist leader Ali Salih al-Sadi has been dropped
from the Interior Ministry, while retaining the title of
deputy prime minister and minister of guidance. Two
non-Baath critics of the regime were dropped from their
posts. One was replaced by a non-Baathist civil ser-
vant and the other by a strong Baathist former general.
An innovation in both cabinets is the appointment of
ministers of state for "unity affairs"--an attempt to con-
tinue the fiction that progress is desired toward union
of the two countries with Egypt.
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of control:'
Cyprus o The Turkish Foreign Ministry says the
situation on Cyprus is worsening and "could get out
v
(A court ruling late last month left the five major
towns on the island without local administration, and
Greek and Turkish leaders have publicly acknowledged
failure to reach agreement in talks designed to resolve
the impasse. This acknowledgment is likely to harden
opposing positions still more and thereby make fur-
ther attempts to reach a compromise more difficult)
(President Makarios, probably in an effort to en-
sure continuity of essential services, has stated that
the Cyprus Government will rule the towns directly
until appropriate legislation is enacted; however, the
Cypriot Turks are certain to regard this move as un-
constitutional and to insist that Turkish communal
councils continue to function until the issue is solved.
The Turkish Foreign Ministry claims that Makarios
is moving toward unifying the municipal administra-
tions unilaterally- -an action that would be unaccept-
able to the Cypriot Turkso j
(The Turks state they "cannot be sure" of the be-
havior of Turkish Cypriots under these circumstances;
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munal clash. Turks on Cyprus still remai hi hl
responsive to Ankara's influence, however
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 Indonesia: The Indonesian Government has in-
formed the three large Western oil companies operat-
ing in Indonesia- -Caltex, Standard Vacuum, and Shell
--that it will impose new regulations to govern their
activities effective 16 June.
ZDA I they nave five months in which
Presumably these regulations will approximate
terms which the companies have previously rejected.
According to the companies, the terms have the ef -
fect of reducing their share in the proposed formal
60-40 profit split to less than 40 percent,
The companies have been told that they may re-
sume negotiations --apparently before 16 June--if
they wish. Should they decide against either resum-
ing negotiations or accepting the new regulations,
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violence could erupt.
*British Guiana: (poradic disturbances are pos-
sible in the next few days unless Premier Jagan makes
some conciliatory move towar settling the general
strike now on its fourth weeks
(Supplies of food and fuel in the colony will not
last much longer. Moreover, resupply via Port of
Spain will be blocked if dockworkers there join the
walkout as their leader is urging. The government
has only just begun to use its emergency powers to
requisition and distribute existing supplies J.
~Jagan told the legislature again on 10 May that
he would not withdraw the controversial labor bill
which touched off the strike. Should the government
try to break the strike with its East Indian political
supporters, as it is t~inking of doing, interracial
Jagan may face a no-confidence vote on 16 May
when the legislature reconvenes, unless he chooses
to side-step the issue by prolonging the state of
emergency another two weeks through another guber-
natorial proclamation. In any early confidence vote,
Jagar~?s shaky legislative majority probably would
hold. )y
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Chile: A Chilean commercial mission will visit the
Soviet Union, Poland, and Czechoslovakia to discuss
trade expansion in late May or early June.
The mission was originally to visit only Western
European countries, where it was to discuss financial
problems and explore the possibility of concluding com-
mercial agreements. Its itinerary was expanded to in-
clude the bloc following recent trade approaches by the
Soviet representatives in Santiago.
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Chile reportedly hopes to sell its products to the
bloc for hard currency, but may conclude barter agree-
ments. The US Embassy in Santiago has been informed
that the mission hopes to sell the Soviets 20,000 to 25,,-
000 tons of copper. In 1962, the bloc bought about 4,000
tons of Chilean copper directly; bloc imports of Chilean
copper, however, have been as high as 40,000 tons a
year through West Germany.
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Rumania: Rumania's differences with the USSR over
certain CEMA policies remain unresolved. Some Ru-
manian officials have openly admitted that Bucharest is
having difficulty with CEMA, while others have told
Western diplomats and newsmen that the regime favors
closer cooperation within CEMA but only on the basis
of coordination of national economic plans. The Ruma-
nian regime published an editorial on May Day that
pointedly stressed the need to base intrabloc relations
on "full equal rights" and "strict respect of national in-
dependence:'
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tsrd.zu: i ne smoiaering miiuary crisis tnreatens
to revive again as a result of last week's scurrilous pub-
lic attack by President Goulart's brother-in-law, Leonel
Brizola, on. an army division commander. Several hun-
dred officers have indicated their support of the com-
mander, and War Minister Amaury Kruel reportedly
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protested Brizola's action directly to Goulart on 11 May.
Goulart, who so far has kept silent, appears to be meas-
uring the, force of pressure from both left and right
rior to taking a
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 Approved F
THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, National Aeronautics and Space Administration
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Assistant Secretary of Defense (International Security Affairs)
The Assistant Secretary of Defense
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
Commander in Chief, Atlantic
The Director, Defense Intelligence Agency
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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