CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A012700130001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: December 15, 2016
• Document Release Date: June 2, 2003
• Sequence Number: 1
• Publication Date: December 16, 1968
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
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No. 0340/68
16 December 1968
Central Intelligence Bulletin
CONTENTS
Vietnam: Situation report. (Page 1)
Laos: The North Vietnamese have been badly mauled
at Ban Thateng, but the struggle may not be over.
(Page 3)
Brazil: Most Brazilians seem to feel powerless in
the face of the government's severe new repressive
measures. (Page 4)
East Germany - Rumania: Foreign Minister Manescu's
visit reflects new efforts by both countries to im-
prove relations. (Page 5)
Philippines-Malaysia: Sabah moratorium possible
(Page 6)
Chile: Student victory (Page 6)
Canada: Defense policy (Page 6)
Panama: University seized (Page 7)
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IV CORPS
F N
SOUTH VIETNAM
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C Vietnam: No major Communist actions developed
over the weekend, but there were continuing indica-
tions that a new offensive targeted primarily against
the III Corps - Saigon area might soon unfold.
Enemy military activity in the III Corps - Saigon
area during 13-15 December was limited to small-scale
ground probes and attacks-by-fire against allied posi-
tions astride known infiltration corridors to Saigon.
The pattern of these actions in recent days suggests
an effort by the Communists to screen the southward
deployment of main force units from remote base areas
and border sanctuaries to forward staging areas flank-
ing Saigon.
Elsewhere in this sector, the Communists heavily
shelled a refugee hamlet near Loc Ninh--killing one
Vietnamese civilian and wounding 72--and also inten-
sified their terrorist activities within Saigon proper.
prisoners also continue to report the
strong probability of forthcoming attacks in this area,
unless pre-empted by allied spoiling operations and
B-52 strikes.
In the northern provinces of South Vietnam, mean-
while, Communist attack preparations continue to be
reported in the Da Nang area, and a recent defector
claims that North Vietnamese forces will attack Hue
"during the general offensive in late December."
(Map) I
Central Intelligence Bulletin
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Southern Laos: Ban Thateng Threat Continues
Savannak`het
Moung
Nang
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ViO
BOLOVENS
akse
PLATEAU
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CJ Communist-controlled territory
C] Contested territory
? Government-held town
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Laos: Government troops supported by heavy air-
strikes have given a mauling to North Vietnamese
forces near Ban Thateng, but the two-week struggle
for this strategic village may not be over.
Government positions just south of Ban Thateng
have been strengthened after two days of bitter
fighting. Fresh troops and supplies have been flown
in and reconnaissance teams are setting up defensive
positions along routes leading into the area.
The village itself is being held by an estimated
battalion of North Vietnamese that has been dug in
there since the initial assault on the government
positions faltered. Laotian Army patrols have skir-
mished with the enemy in the village, but there are
still not enough government troops in the area to
drive out the well-entrenched Vietnamese. Substan-
tial numbers of civilians in the village, most of
them dependents of the Laotian troops, preclude air-
strikes against enemy positions there.
Remnants of two other North Vietnamese battal-
ions that are believed to have made up the attacking
force have withdrawn under the cover of darkness.
There are some indications, however, that the North
Vietnamese are bringing up reinforcements from other
areas of the Bolovens Plateau to renew the battle.
Although an accurate count of enemy casualties
is not possible, reportsl indicate
that the North Vietnamese have lost as many as 200
to 300 killed. If these figures are correct, the
assault may be the costliest engagement the North
Vietnamese have ever fought in Laos.
(Map)
16 Dec 68 Central Intelligence Bulletin
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Brazil: Most Brazilians seem to feel power-
less in the face of severe repressive measures in-
stituted Friday by the Costa e Silva government.
The army has arrested many of its former crit-
ics, and the government intends to strip many of
them of their political rights. Prominent persons
picked up thus far include former president Kub-
itschek, opposition spokesman Carlos Lacerda, a
number of state and federal deputies, and several
highly respected journalists. Others reportedly have
gone into hiding or sought asylum. Strict censor-
ship has been imposed on all communications media,
including the international wire services.
The President's own position is not completely
clear as he is known to have opposed any departure
from constitutional procedures. He clearly had
little choice but to accept the military's demands
if he wished to remain in office.
The government will have little support except
from the military establishment, but active resist-
ance will probably be slow to develop. Church, stu-
dent, and labor groups as well as other elements
will eventually make efforts to restore normal po-
litical life. For example, the conservative cardi-
nal of Rio de Janeiro has reacted with uncharacter-
istic vigor in angrily defending priests and students
who have been arrested.
Leading army generals are presumably running
the government, and they can count on solid support
from hard-line officers. The military's violent
reaction to criticism indicates a basic failure to
understand the forces working for social and economic
reform in Brazil, which does not bode well for a re-
turn to constitutional government in the foreseeable
future.
16 Dec 68 Central Intelligence Bulletin 4
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East Germany - Rumania: Foreign Minister Man-
escu's recent visit to East Germany reflects new ef-
forts by both sides to improve relations.
The communique after the five-day visit called
for negotiations on a bilateral treaty of friendship
and mutual assistance, something Bucharest had pre-
viously avoided despite the conclusion of similar
treaties between Pankow and other Eastern European
countries. Both sides advocated a conference on
European security and stressed cooperation between
"all European states" and "peaceful coexistence be-
tween states with different social orders."
A compromise statement regarding West Germany
declared that both sides believed the establishment
of relations between Bonn and Pankow would "facili-
tate progress toward achieving European security."
Manescu concluded his visit yesterday by inviting
East German Foreign Minister Winzer to visit Bucha-
. rest next year.
16 Dec 68 Central Intelligence Bulletin 5
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Philippines-Malaysia: An informal Philippine-
Malaysian understanding over the Philippine claim to
Sabah probably foreshadows a moratorium on the issue
rather than early discussions toward a solution.
The understanding, reportedly reached on 15 December
by Philippine and Malaysian officials attending an
international conference in Thailand, must be approved
by their governments. Tensions may be eased by the
Philippine foreign secretary's statement recognizing
current Malaysian sovereignty over Sabah.
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Chile: The government has knuckled under to
demands of students at the Communist-dominated State
Technical University following violent demonstrations
last week. It will provide a supplemental appropria-
tion to help cover the university's budget deficit.
The government offer has been accepted by the Commu-
nist rector, but the Socialists at the university
have embarrassed the Communists by refusing to resume
classes. This division within the university move-
ment could provoke further demonstrations. 25X1
Canada: In public statements on 13 December,
Prime Minister Trudeau took a more positive view of
NATO than he has in the past. He said that any
acceptable defense posture for Canada would require
continuing expenditures at least on the present
level. Trudeau made it clear, however, that a re-
view of defense policy is still under way, with no
final decisions having been made.
(continued)
16 Dec 68 Central Intelligence Bulletin
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I Panama: The national guard seizure of the
University of Panama on 14 December appeared to have
been planned well in advance. The post-midnight raid
encountered no resistance, and the government decreed
the campus will remain closed, perhaps for six months,
until sweeping reforms permit the university "to ac-
complish its lofty social commitments." Members of
the ruling junta, which overthrew the Arias adminis-
tration two months ago, had indicated that university
corruption was to be a prime target for reform. The
students' continued political opposition to the gov-
ernment probably provided further incentive.
16 Dec 68 Central Intelligence Bulletin 7
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