CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A010800070001-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: September 5, 2002
• Sequence Number: 1
• Publication Date: February 10, 1968
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Top Secret
c114
10 February 1968
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10 February 1968
Central Intelligence Bulletin
CONTENTS
North Korea: Pyongyang's public attitude toward
settlement of the Pueblo affair has not changed.
(Page 3)
Communist China - Hong Kong: Peking is pushing
a long-range political struggle. (Page 4)
Indonesia: The government continues its piecemeal
efforts to improve the economy. (Page 5)
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North Korea. Official statements during this week's
20th anniversary of the "Korean People's Army" show
no change in Pyongyang's attitude toward the Pueblo
case.
Premier Kim Il- song called the Pueblo "intrusion"
a "gangster-like piratic act" which shows that "US ma-
neuverings" for a new war in Korea have reached a
"grave stage." Defense Minister Kim Chang-pong is-
sued a five-point order urging the army to build "full
combat readiness."
Soviet party secretary Ponomarev arrived in
Pyongyang yesterday for a visit which will probably
be devoted in the first place to briefing North Korea,
which has shown little interest so far, on the interna-
tional Communists' consultative meeting set for Buda-
pest later this month. Ponomarev is the CPSU secre-
tary in charge of relations with nongoverning parties
and had just returned to the USSR from Japan, where
he and politburo member Suslov failed to persuade the
Japanese Communist Party to attend the meeting.
Ponomarev will also have a chance to test the pres-
ent mood in Pyongyang regarding the Pueblo affair. His
visit will symbolize Soviet "fraternal" solidarity with
the North Koreans. It is doubtful, however, that Mos-
cow is ready to depart from its policy of minimal in-
volvement in the Pueblo affair, and this issue is likely
to figure in the discussion in only a general way.
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Communist China - Hong Kongo Peking's latest
gestures of support for the Hong Kong Communists
reflect the long-range nature of its strategy toward
the colony.
In an apparent effort to embarrass the Hong Kong
Government, the Chinese are complaining loudly
about the "plight" of imprisoned "compatriots" and
other "victimized" workers. A shipment of winter
clothing donated by the Kwangtung provincial author-
ities for "needy compatriots" in the colony arrived
this week and occasioned a full- scale propaganda
campaign by Hong Kong Communists. Peking has also.
offered 5,000 tons of rice, and Communist officials
in the colony. are attacking the British for attempting
to turn the proferred donation into a "commercial
transaction. "
These initiatives are consistent with Peking's
emphasis on the long-term political nature of the con-
frontation.
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mmunists indeed have been stressing social and
economic grievances against the British, and there
have been virtually no terrorist incidents in the colony
since late last ear.
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Indonesia: The Suharto government, faced with
continuing economic problems, is undertaking a new
round of political improvisations.
Acting President Suharto on 9 February announced
the appointment of 67 new members and 119 replace-
ments to the 414- seat parliament where major elements
have been vacillating in their support of the govern-
ment. This was particularly true of the two largest
parties, the National Party and the Nahdatul Ulama,
but members of Suharto's "new order" itself were also
being recalcitrant.
The regime's main objective in "refreshing" par-
liament apparently is to create a body more amenable
to Suharto's direction. Among those dropped from
parliament were prominent Moslem and "new order"
activists, including members of the military, who
have criticized the government and warned of the
danger of militarism.
The fact that parliamentary representations of the
two big parties were not drastically changed, however,
points toward possible compromise with these parties
on a plan now being pressed by the regime. This is
proposed congressional endorsement this spring of
Suharto as full president for the constitutionally pro-
vided five-year term.
These political moves are motivated by govern-
ment concern over economic prospects, particularly
for 1968, and awareness that economic difficulties
are exploitable politically. Sharp increases in rice
prices in January have already forced living costs
higher than anticipated for the entire year. The re-
gime also fears that its request for $325 'million in
economic assistance will not be met by Western donors
when those nations meet at a pledging session in April.
(continued)
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Revisions in government plans are inevitable and
probably will include postponement of several de-
velopment projects. Despite government apprehen-
sions, some economic progress, however unspec-
tacular, appears likely this year.
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