CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A011300090001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 14, 2016
• Document Release Date: April 4, 2003
• Sequence Number: 1
• Publication Date: June 4, 1968
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
50
4 June-1968
STATE review(s) completed.
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No. 0173/68
4 June 1968
Central Intelligence Bulletin
CONTENTS
Vietnam: Situation report. (Page 1)
France: Government optimistic, but climate of de--
tente may be deteriorating. (Page 2)
Japan: Student militants may storm US facilities.
(Page 3)
Indonesia:. The government is having trouble in its
fight against Communists in East Java. (Page 4)
Arab States - Israel: The anniversary of the war
last June could spark?violence in Arab states.
(Page 5)
Ecuador: Velasco is elected president for the fifth
tim err (Page 6)
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Chile: Tensions may lead to a split of the Commu-
ni- st-Socialist front. (Page 8)
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.Yugoslavia: Student riots (Page 9)
Iran - Saudi Arabia: Talks between leaders (Page 9)
Saudi Arabia - Israel: Island dispute (Page 11)
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C Vietnam:
North Vietnam: Hanoi has modified its state-
ment of I June which suggested that an agreement in
principle by the US on ending the bombing would be
sufficient to move the talks on to other issues.
on 3 June, Hanoi radio slightly rephrased the
statement. Instead of saying the US only need "ac-
knowledge its responsibility" to put a definitive
end to the bombing--as did the version of 1 June--
the amended statement says that the US must "deter-
mine" the definitive cessation of the attacks. Al-
though somewhat harder, the new version still sug-
gests an intent to establish a phase between actual
agreement to cease the attacks and implementation
of the agreement. In between, some substantive
talks presumably might take place.
South Vietnam: The Communists maintained their
military pressure against Saigon on 2-3 June when
there was sporadic ground fighting both in the Cho-
1on sector and in the northern suburbs.
In northern South Vietnam, heavy fighting
erupted between elements of the South Vietnamese 1st
Division and an estimated battalion of Communist
troops four miles northeast of Quang Tri city. The
enemy reportedly lost 107 killed in an eight-hour
battle.
Meanwhile, in western Kon,tum Province, allied
forces conducted spoiling operations to disrupt con-
centrations of North Vietnamese regulars threaten-
ing the Dak To - Ben Het Special Forces complex.
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C France: The government remains optimistic
despite signs that the climate of detente that has
characterized the last four days may be deteriorat-
ing.
Now that France's three-day Whitsunday vacation
is over, government leaders--encouraged by pro-
Gaullist demonstrations, favorable opinion polls,
and the mood of reconciliation which followed De
Gaulle's speech of 30 May--are hopeful that a mas-
sive "return-to-work" movement will begin today.
Some settlements have already been reached, and
will be voted on by the rank and file today. Never-
theless, Premier Pompidou's public appeal yesterday
for Frenchmen to join in reconstructing the economy
has received no immediate response in certain key
sectors.
Negotiations with railway unions are stalled,
two train stations cleared by police over the week-
end have been reoccupied by strikers, and Parisian
transport workers have overwhelmingly rejected a
settlement worked out by their leaders which offered
a substantial salary increase. Employees of the
government-owned radio network have rebuffed a pro-
posal by the new minister of information designed
to deal with their demands for greater autonomy,
and tension caused by this issue has led to the
resignation of three top television officials. In
addition, a number of other labor-management nego-
tiations are making only very slow progress.
. Despite the problems which have developed in
labor negotiations, the government is probably
pleased that it has managed to focus the immediate
attention of most workers on economic rather than
political goals. If the government resorts to the
use of force against strikers, however, the atten-
tion of the movement will probably shift back to
politics.
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Japan: Militant leftist students may attempt
to storm US diplomatic facilities on 7 June in re-
taliation for the crash of a US jet fighter last
weekend.
The chairman of an ultraleftist faction of the
Japanese students' confederation, Zengakuren, an-
nounced yesterday that thousands of students would
be mobilized against the US Embassy in Tokyo and
the consulates in Kobe and Fukuoka. The police are
capable of coping with the demonstrations but bloody
clashes can be expected.
This radical student faction has a long record
of initiating violent confrontations on anti-US is-
sues. The most recent were directed against a US
military field hospital in Tokyo in March and April,
and against the visit to Sasebo of the nuclear-
powered aircraft carrier Enterprise last January.
The crash of an F4C stationed in southern Ja-
pan into an unoccupied university building in Fuku-
oka on 2 June resulted in no injuries. The incident,
however, provides another exploitable issue for the
leftist opposition. In the upper house election
campaign, the leftists have been pillorying the gov-
ernment over the alleged radioactive contamination
of Sasebo harbor in early May by the nuclear-powered
submarine Swordfish.
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Indonesia: The government is encountering po-
tentially serious difficulties in its campaign
against the Communist stronghold in East Java.
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East Java is the only area in which the Com-
munists have sustained a small-scale terrorist cam-
paign, and they are receiving occasional assistance
from sympathizers in the armed forces. Military
units in East Java, significantly Communist-pene-
trated in the past, have not been screened as ef-
fectively as the army leadership had initially be-
lieved. The marine corps and the police are the
most suspect, although elements of all forces are
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Arab States - Israel: The anniversary on 5
June of the 1967 Arab-Israeli war could spark vio-
lent demonstrations in the Arab states.
The situation is particularly explosive in
Jordan. A mass rally scheduled in Amman could get
out of hand, although security forces have taken
steps to keep it in bounds. The government still
has little control over terrorist groups, which may
use the anniversary to try a dramatic attack on
Israel. The Israelis are well aware that trouble
is possible and have been tightening their security
measures.
A general strike has been called for in Israeli-
occupied Jordan, and Husayn and Nasir will deliver
speeches in their capitals to mark the anniversary.
There could be anti-American manifestations in many
parts of the Arab world. F7 I
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C Ecuador: Jose Maria Velasco has been elected
president for the fifth time, according to nearly
complete but unofficial returns.
In a close three-way race, Velasco has just
over one third of the votes in Ecuador's most
honest election in many years. Jorge Zavala
Baquerizo, dynamic and controversial running mate
of center-leftist candidate Cordova, apparently
won the vice-presidency.
Results of congressional voting are still un-
clear but it seems likely that conservative and
liberal political groups in the legislature may
combine to thwart Velasco, possibly in hopes of
forcing his fourth ouster from the presidency.
Velasco's by-passing of the more moderate leaders
of his political following, his dependence on ex-
tremist Carlos Julio Arosemena and others, as well
as his drop from 47 percent of the vote in 1960,
may encourage opposition maneuvers against him.
The new president is scheduled to take office
on 1 September.
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Chile: Rising tensions between the Communist
and Socialist parties open the possibility of a
split in their Popular Action Front (FRAP).
The Communists are increasingly upset by the
extremist policies of the pro-Castro Socialists and
are finding greater areas of cooperation with ele-
ments of President Frei's Christian Democratic Party.
During recent student disturbances, the Communists
broke with the Socialists and cooperated openly with
Christian Democratic students.
The Communists, although upset by increasing
Socialist criticism, are not closing the door to
future cooperation. A statement by the Socialist
Party secretary general that FRAP will not split was
welcomed by Victor Diaz, the principal speaker at
the Communist central committee plenum last week.
Diaz implied, however, that continued Socialist
recklessness could divide the alliance.
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NOTES
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Yugoslavia: Riots in Belgrade on the night of
2 June continued on 3 June. Students seized the
university administration building'to press demands
for reorganization of the university, as well as
improved living conditions and employment possibil-
ities. Charging police brutality, the students have
also called for the resignation of the city's secu-
rity chief and a voice in settling "open social
problems." University authorities have promised
to support "justified" student demands. The gov-
ernment probably will attempt to compromise lest
the situation take on an unwelcomp olitical tone.
I
Iran - Saudi Arabia: The Shah, en route to a
state visit in Ethiopia, stopped at Jidda airport
yesterday in response to King Faysal's request for
a brief talk. Relations between Iran and Saudi
Arabia have been strained since problems in the
Persian Gulf caused the Shah to cancel a visit to
Saudi Arabia early this year. The Shah recently
rescheduled his formal visit for this fall, but
the two leaders may have felt that an earlier
meeting could forestall new difficulties in rela-
tions between their countries.
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(continued)
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Beirut*
Al Maqnah
SAUDI
ARABIA
Israeli-occupied territory
/ Damascus
Golan Heights
SYRIA
Ras Nasrani
Sidon.
SANAFIR !' ^ "S J) ~?
Sharm ash - Shaykh (SAUDI ARABIA) ISRAEL T
Tel Aviv ; ti g nk
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Jerusalem
JORDAN
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r a r
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Sheba
Ismailia, '
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r
*Cairo Suez, ' J
Sinai Peninsula i j
Ei1at'4Agaba /?
U N I T E D A,R A B
R E P U B L I,C
Shaykh
Humayd.
SAUDI
ARABIA
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Saudi Arabia - Israel: King Faysal continues
to be embarrassed by Israeli occupation of two Saudi
islands at the mouth of the Gulf of Aqaba. The sei-
zure of a Jordanian fishing boat by an Israeli launch
near one of the islands last month has increased
friction in the area. The Israelis have occupied
Tiran and Sanafir islands since the war last June,
on the grounds that they were held by Egyptian forces
when hostilities broke.out. The Israelis have re-
sisted all suggestions that they withdraw.
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