CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A012900110001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: December 2, 2003
• Sequence Number: 1
• Publication Date: January 17, 1969
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
50
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State Dept. review completed 17 January 1969
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No. 0015/69
17 January 1969
Central Intelligence Bulletin
CONTENTS
Vietnam: Situation report. (Page 1)
Noneroliferation Treaty: Italy claims some success
in inducing of er countries to sign. (Page 2)
Poland: One of Gomulka's leading rivals may be in
trouble. (Page 3)
Peru: The government may be preparing to expropri-
ate the International Petroleum Company's remain-
ing assets. (Page 4)
Ira Arrests of US citizens are under way.
Page 5)
Mexico: Two Soviets expelled (Page 7)
Communist China: Patrol boats (Page 7)
Communist China: Cloth shortage (Page 8)
Chile: Foreign Communists (Page 8)
Anguilla: Independence (Page 8)
Brazil: Purge (Page 9)
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SOUTH VIETNAM
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C Vietnam: The Communists intend to step up the
pace of small-scale terrorist attacks in urban areas
within the next few
t e Communists wi main ain mi i ar
y
pressure on the allies with small urban guerrilla
squads which can be successfully infiltrated into
populated areas.
moving their large m
South Vietnamese urb
positions because th
frequently hit befor
target.
the Communists have had trouble
ain force units back toward
an areas from Cambodian border
e units are easily detected and
e they can reach their intended
The Communists have now decided
to h
ld th
o
ese
main force units in reserve or use them a ainst
outlying objectives,
and
only :sapper and terrorist units will
attempt to
penetrate urban defenses.
fairl
w
id
y
espread terrorist
attacks
roug out II
I
Corps in
i
the near future without any
serious Com-
mun
st e
ffort to seize and hold territory.
On 15-16 January, the Communists fired mortars
at a network of bases in northwestern Pleiku Prov-
ince and in the delta. Ground attacks were con-
fined to two company-sized probes against South
Vietnamese pacification forces near Da Lat and
against US forces in the An Khe area.
Hanoi has given only routine propaganda cover-
age to the agreement reached in on procedural
matters. (Map)
17 Jan 69
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Nonproliferation Treaty: Italy, which re-
gards itself as a leader of the nonnuclear powers,
claims some success in inducing several holdout
countries to sign the treaty when it does.
According to an official of the Italian For-
eign Ministry, Turkey has agreed to sign about the
same time, which may be before the end of January.
The Indonesians also gave a positive response to
the Italians but were not precise on when they
would sign. Australia and Japan apparently will
sign after US ratification.
Switzerland will consider the matter again in
the spring, according to the Italians. Spain wants
to link its signature with the Gibraltar issue,
and is not expected to sign immediately. The West
Germans are awaiting further discussions with and
clarification from the US, and are still uneasy
about the problems raised by some recent Soviet
statements.
The Israelis have said they are not yet ready
to sign in view of the still unresolved problem of
"American security guarantees." This is the first
time the Israelis have explicitly connected their
willingness to sign the treaty with their desire
for security assurances from the US, but they have
hinted at the connection efore. 25X1
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Poland: One of Gomulka's leading rivals, hard-
line nationalist Mieczyslaw Moczar, a party secre-
tary and candidate politburo member, may be in
trouble.
Some recent shifts in provincial leaderships,
probably made with Gomulka's acquiescence, may have
weakened the former interior minister's position.
According to rumors, several "Moczar men" have been
removed from the Ministry of Internal Affairs, once
a stronghold of Moczar supporters. All of the men
mentioned in the "purge" thus far are reputedly
tough anti-Semites who want to oust all Jews from
the party.
. Moczar's position as head of the Polish vet-
erans' organization, from which he draws his pop-
ular support, also is rumored to be in jeopardy.
In addition, he has not been noted in public for
more than two weeks and this absence has fed rumors
still unverified, that he is under house arrest.
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Peru: The Velasco government has placed an em-
bargo on the International Petroleum Company's (IPC)
remaining assets and may be preparing to expropriate
them.
Pressure for further action against the Amer-
ican-owned IPC has grown out of a dispute over the
price the company is to pay for oil products it has
drawn from the already expropriated Talara refinery.
IPC, which handles roughly half of the oil and fuel
distribution in Peru, has refused to recognize
state ownership of the refinery and says that it
will pay only the "direct costs of production." IPC
yesterday refused to accept shipping orders desig-
nating the state oil company as the owner of the
petroleum products being shipped from the Talara
refinery to IPC's distribution outlets.
A source close to President Velasco told the
US Embassy on 15 January that IPC's remaining assets
would be expropriated "within a few days," and the
announced embargo on these assets, presumably in-
cluding bank accounts, could be the first move ?n
that direction. 25X1
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Iraq: A wave of arbitrary arrests and expul-
sions of US citizens is under way.
On 30 December an American employee of the
Iraq Petroleum Company was arrested after having
been called in by police to explain the functioning
of a radio receiver. His wife was picked up a few
days later. Officials of the Belgian Embassy,
which has been in charge of US interests since
mid-1967, have been unable to visit the couple,
find out the charges, or obtain a lawyer.
On 9 January five more US citizens were ar-
rested, four of them American wives of Iraqis "and
one the wife of a British UN official. All but
one of these have been released. Two days ago,
however, the government ordered the expulsion of
some 20 American refinery workers without giving
any grounds.
Inasmuch as none of the arrests has been made
public, the anti-American campaign is presumably
not an attempt to find a scapegoat for the failings
of the shaky Baath regime. The Iraqis may be
genuinely convinced that localAmericans represent
a danger to them. The uncovering of an Israeli
s rin was recentl iven wide publicity.
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NOTES
Mexico: Two Soviet officials have been ex-
pelled for meddling in Mexican affairs. The So-
viets, who had valid Mexican visas, arrived from.
Cuba last week at the invitation of the Communist
General Union of Mexican Workers and Peasants,
which had recently aroused government suspicion by
calling for drastic action on agrarian problems.
After being warned by the government against med-
dling, the Soviets visited another labor union,
and were summarily deported. This is the first
such case since three Soviets were expelled in
1959, also for labor agitation. The Mexican Gov-
ernment has not publicized the incident.
Communist China: Peking's success in building
hydrofoil naval craft of unique Chinese design is
providing the coastal defense forces with high-
speed patrol craft capable of operating in rough
seas. Production of a hydrofoil motor gunboat--
designated the Shan-tung class--is under way in
China, and some probably will be deployed with
coastal defense forces later this year. The Shan-
tung may have a top speed of about 50 knots and
probably will gradually replace the slower Swatow
motor gunboats built until the early 1960s. China
began producing Hu-chwan - class hydrofoil torpedo
boats several years ago, and about 65 are now dis-
tributed among the thrp. areas.
(continued)
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Communist China: The customary January dis-
tribution of the annual cloth ration coupons ma
be as much as six months late this year 25X1
To cover the delay,
Cloth coupons are being extended to mid-year,
suggesting that the actual distribution of cloth
may also be delayed. The government probably has
been unable to restore cloth production suffi-
ciently in the face of disruptions from the Cul-
tural Revolution, although the supply of raw cotton
seems to have been adequate during the past two
years. Continued depressed production would sig-
nificantly affect the morale of the population,
which is already inadequate) clothed because of
past shortages of cloth. 25X1
Chile: The government is moving against for-
eign Communists who hold responsible positions in
Chilean universities. Minister of Education Maximo
Pacheco, supported by President Frei, has abrogated
the contracts of 60 leftist Argentine professors
at two Chilean universities, using as an excuse the
fact that the Argentines receive twice the salary
the Chilean professors do. Pacheco told the US
ambassador that his action has caused an "uproar"
among Chilean Communists and Socialists. President
Frei may hope that by removing foreign Communists
he can strengthen moderate influence in the Chilean
universities.
Anguilla: The moderate leaders of this Car-
ibbean island have reaffirmed their independence
from the Associated State of St. Kitts, despite
the refusal of the UK to accept the declaration of
last May as legal. The premier of St. Kitts had
insisted that London take strong measures to block
Anguilla's independence. The British responded by
recalling their representative and cutting off all
economic aid. The main problem for Anguilla is to
find other sources of outside assistance to permit
its economic survival.
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Brazil: The government yesterday stripped more
prominent Brazilians of their political rights. The
group included three members of the supreme court,
a number of congressmen, and a prominent publisher.
Additional purges may well be in the offing. This
step, especially the action against the judiciary,
is primarily a victory for those hard-line elements
in the government who have demanded that President
Costa e Silva use his dictatorial powers to "clean
out subversives." it points up the President's in-
abi'lity to withstand pressures from the hard-line
military officers, and seems to weaken the hand of
those close to the President who have counseled
moderation. 17
17 Jan 69 Central Intelligence Bulletin
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Secret
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