CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A010700050001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 14, 2016
• Document Release Date: May 1, 2003
• Sequence Number: 1
• Publication Date: January 9, 1968
• Content Type: REPORT

Approved For$elease 2003/05/19: CIA-RDP79T009 0 (F 0fi et
25X1
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
25X1
'DEPT OF STATE review(s) completed.
Top Secret
20
c `
9 January 1968
Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7
 25X1 Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7
Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7
 25X
Approved F ` (ease 2003/05/19: CIA-RDP79T00975A0107000
9 January 1968
Central Intelligence Bulletin
CONTENTS
Vietnam: Situation report. (Page 1)
Communist China: Recent statements show Peking's
cautious approach in supporting insurgency in South-
east Asia. (Page 3)
UK: Sharp cuts in defense spending will speed up
withdrawal from East of Suez. (Page 5)
Australia: John Gorton chosen as prime minister
designate. (Page 7)
Israel-Jordan: Continued tension (Page 8)
USSR: Delegation shift at UN (Page 8)
Iran: Oil consortium payments (Page 9)
Arab States: Postponed summit .(Page 9)
25X
25X
25X1
25X
Approved For R~ Iease 2003/05/19 : CIA-RDP79T00975AO10700p50001-7
 Approved Fdf
*South Vietnam: [Rumors of a possible compromise
settlement of the war are circulating in South Vietnam
where they are generating widespread uneasiness over
the firmness of US purpose
[In the northern provinces, stories are prevalent
that the US is trying to engineer either a coalition gov-
ernment or a partition of the South. They are being
given some credence by the public. In Saigon, the
press has been full of warnings of a possible US sell-
out, and the allegations are being reinforced by the
spread of charges that the US has been in touch with
the Liberation Front. There is also wide awareness
of recently captured enemy documents which cite the
goal of coalition'
I some
Catholic communities near Saigon are so fearful of
an early US move to bring about a coalition that they
have offered to support the local corps commander,
General Khang, in any move to prevent Saigon from
entering into such an arrangement. The corps com-
mander has said that, for his part, he would march
on Saigon if the Americans were to set up a coalition
involving the Front
President Thieu and both houses of the national as-
sembly have reiterated their opposition to recognition
of the Front in any form. In addition, Thieu has
played down the idea of an unconditional suspension
of the US bombing in order to open. talks with Hanoi
Year- end results reflect a substantial gain of 34
percent over the previous year in the Chieu Hbi. ("Open
Arms") program, although the total was below the
target.
The Chieu Hoi rate began to fall below the 1966 pace
in early October of 1967, The enemy's more aggres-
sive military posture and the unsettled Vietnamese
9 Jan 68
25X
25X1
Approved For Release 2003/05/19 : CIA-RDP79T00975A010700050001-7 25X1
 Approved F
political situation very likely contributed to the fall-
off. Enemy countermeasures, including terrorism
against returnees, attacks on Chieu Hai centers and
tighter control of personnel probably were also in-
volved.
Of the 27,178 persons who rallied to the govern-
ment during 1967, about 18,000 were military person-
nel and 4,700 were linked to the Viet Cong political
apparatus.
9 Jan 68
Approved For Release 2003/05/19 : CIA-RDP79T00975A01070p050001-7
25X1
25X1
25X1
 25X1
Approved F6 Release 2003/05/19: CIA-RDP79T00975A
Communist China. Recent Chinese statements re-
flect Peking's cautious approach in supporting Com-
munist insurgency in Southeast Asia,.j
The statements coincide with the apparent recov-
ery by Foreign Minister Chen Yi of much of his po-
litical importance and his control over the Ministry
of Foreign Affairs. This suggests that the advocates
in Peking of more moderate foreign policies have
managed to regain the influence in this field that they
lost to extremists during the summer. Chen Yi, sus-
pended last summer while under heavy attack by pro-
ponents of 'evolutionary" diplomacy, resumed a
busy schedule in November. On 28 December he re-
ceived the French ambassador for a relaxed and ani-
mated tour d'horizon, the first such session with a
Western diplomat in a year. 'The ambassador re-
ceived the impression that Chinese diplomacy has re-
turned to policies pursued before the Cultural Revolu-
tion.
,Year-end New China News Agency status reports
on the Communist movements in Laos, Burma, and
Thailand, while hailing a series of "'brilliant victories,"
laid heavy stress on the long-term nature of "people's
war" and underscored the virtue of "self-reliance. "
It was noted, for instance, that the Pathet Lao can win
final victory only by "arousing and relying on" their
own people and continuing to pursue a Maoist "pro-
tracted struggle."'_"
'The less advanced Thai and Burmese parties were
applauded for their efforts in building a popular poli-
tical base among the masses, cited as a necessary pre-
requisite for a successful "people's war." The Bur-
mese party in particular was lauded for its twenty-
year "revolutionary civil war,," but probably derived
9 Jan 68
Approved For Release 2003/05/19 : CIA-RDP79T00975A04700050001-7 25X1
 Approved FdIe
little comfort either from Peking's admonition that
further "protracted struggles" lie ahead or from the
Chinese inference that its bleak years of isolation
and "self-reliance" were the correct environment
for "party-building."
Peking's preoccupation with domestic affairs and
its effort to support the war in Vietnam have no doubt
reinforced its cautious attitude toward these insurgent
movements. None of the statements contained even
a pro forma pledge of immediate or future Chinese
support. The rosy picture of an "excellent revolu-
tionary situation" noted by Peking seems designed
primarily to. cloak China's current reluctance to in-
volve itself more heavily in the armed struggles in
the three countries.
9 Jan 68
25X1
25X1
25X1
25X1
Approved For RoIease 2003/05/19 : CIA-RDP79T00975A01070005g001-7
 Approved FooRelease 2003/05/19: CIA-RDP79T00975AO
UK: Sharp cuts in defense spending expected soon
will greatly accelerate Britain's military withdrawal
from East of Suez and possibly affect the F- 111 con-
tract]
According to a senior Ministry of Defense official,
London has set the end of 1971 as the date for a final
pull-out from Southeast Asia, scrapping last year's
withdrawal target date of the mid-1970s. Common-
wealth Secretary Thomson has been given six month's
leeway beyond the new deadline in discussing the with-
drawal with Britain's Commonwealth allies. Accel-
erated departure from the Persian Gulf has also been
proposed despite the vigorous objections of Foreign
Secretary Brown. The question of a reduction of
British forces in Germany will be deferred pending
talks with the US and West Germany,?
J he F- 111 contract is still under cabinet scrutiny.
Defense Minister Healey has taken the position that
the contract should be kept because, among other rea-
sons, US cancellation charges would be prohibitive.
The contract is opposed by Chancellor of the Exche-
quer Jenkins, who has disliked the F-111 program
ever since he was minister of aviation. Healey prob-
ably is working toward a compromise to cut the num-
ber of aircraft purchased from 50 to 35 aircraft.1
9 Jan 68
Approved ForiRelease 2003/05/19 : CIA-RDP79T00975AO110700050001-7
 25X1 Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7
Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7
 Approved F (ease 2003/05/19 : CIA-RDP79T00975AO1070 050001-7 25X
*Australia: L senator John Gorton will become Au-
stralia's next prime minister.,"
Gorton was chosen to succeed the late Harold Holt
as leader of the dominant Liberal Party--and automati-
cally as prime minister designate--at a party caucus
this morning. Initial reports from Canberra indicate,
that he may take office as early as 10 or 11 January.
Gorton will replace John McEwen, the leader of
the junior party in the government coalition who became
interim prime minister on Holt's death last month.
Within the next several weeks, Gorton will probably
resign from the Senate and seek election to the lower
house, from which prime ministers are traditionally
chosen.
,Although Gorton has reportedly been somewhat less
firm than was Holt in his support of US policy in Viet-
nam, his administration is not likely to introduce any
significant changes in Australian foreign or domestic
policies. He issued a statement this morning reaf-
firming Australian determination to stay in the Vietnam
war and to show the Communists that "aggression does
not pay."" 7
9 Jan 68 7
Approved For Rellase 2003/05/19 : CIA-RDP79T00975A019700050001-7
2581
25X1
 25X1 Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7
Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7
 25X1
25X1
25X1
25X1
Approved Ft
NOTES
Israel-Jordan: The level of tension along the bor-
der between the two countries remains high in the
wake of yesterday's firefight. This was the fourth
such incident this month and the first time since
21 November that the Israelis usedplanesto silence
Jordanian artillery. These clashes can be expected
to occur as long as Arab terrorists infiltrate into
Israel and the West Bank from Jordan. 1 7
case in the UN during the Middle East crisis.
USSR: Deputy Foreign Minister Yakov Malik will
replace Ambassador Fedorenko as Soviet ambassador
to the UN later this month. Malik served in the post
from 1948 to 1952, and since 1960 has been respon-
sible for African affairs in the Soviet Foreign Minis-
try. It has been rumored for some time that Fed-
orenko was to be removed because of Moscow's un-
happiness with his tactical management of the Soviet
9Jan68 8
Approved For Rele
25X1
 Approved ForikIe
Iran: LRepresentatives of the Western oil, consor-
tium have informed Tehran that they will make up
for the shortfall which resulted when they calculated
part of their last quarterly payment on the predeval-
uation value of the pound. The Shah was furious
over the resulting $12 million shortfall, and the gov-
ernment had prepared unilateral legislation designed
to ensure undepreciable payments. The consortium
still believes that its legal position was sound, but
may have decided that the money was not worth the
furor. Iranian officials had implied that resolving
the payments problem might pave the way for com-
promise on other difficult issues, such as the level
of oil ex orts.
Arab States: Postponement of the summit conference
scheduled for 17 January highlights the continuing Arab
differences over how best to deal with the Israeli prob-
lem. Syria and Saudi Arabia refused to attend. Mili-
tant Syria has refused to participate in any meeting
where the moderate view would probably prevail, while
Saudi Arabia has said that a summit now would be pre-
mature. The "unity" evidenced at the Khartoum Sum-
mit in September has somewhat dissipated and pros-
pects for an earl meeting appear dim.
25X1
25X
25X
Approved For Release 2003/05/19 : CIA-RDP79T00975AO10790050001-7
25X1
 25X1
Top ftI- For RaWase 2003/05/19 : CIA-RDP79T009755 0700050001-7 '
Top Secret
Approved For Release 2003/05/19 : CIA-RDP79T00975AO10700050001-7