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December 14, 2016
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February 21, 2003
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March 4, 1969
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Approved For Release 2003/03/28: CIA-RDP79T00975A013200 %W4 25X1 DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin Secret 5 E?n Approved For Release 2003/03/28 : CIA-RDP79T00975A013200060001-8 25X1 Approved For Release 2003/03/28 : CIA-RDP79T00975AO13200060001-8 Approved For Release 2003/03/28 : CIA-RDP79T00975AO13200060001-8 Approved For Release 2003/0:1 VJK'bP79T00975A013200060001-8 No. 0054/69 4 March 1969 Central Intelligence Bulletin CONTENTS Vietnam: Situation report. (Page 1) Communist China - USSR: Peking has reacted angrily to Moscow's public protest over the latest border clash. (Page 3) Berlin: The Communists are continuing sporadic harassment as West German delegates arrive in Berlin. (Page 4) Central America: Nicaragua's new restrictive trade measures are a backward step in the process of regional economic integration. (Page 5) Chile: President Frei's party lost its majority in last Sunday's congressional elections. (Page 7) Costa Rica: A bitter political campaign is taking shape for the general elections next February. (Page 8) Malawi: The influx of whites from southern Africa has strained race relations. (Page 9) USSR-Algeria-Morocco: Podgorny visit (Page 10) Hungary-USSR: Economic consultations (Page 10) Approved For Release 2003/0~Va lt-F P79T00975A013200060001-8 Approved For Release 200?43gN4-RDP79T00975A013200060001-8 Vietnam: South Vietnam: Enemy military activity on 3 March remained down nearly to the pre-offensive level for the fourth straight day. No major ground assaults were reported, and most mortar and rocket attacks occurred in the out-- lying areas, where they were directed against al- lied forces and installations. At Ben Het, the allied Special Forces camp lo- cated in west-central Kontum Province, defending forces observed at least five enemy tanks and de- stroyed one. West of Kontum City, a US company took heavy casualties during an engagement with enemy forces. North Vietnam: The most impressive delegation ever sent by the National Liberation Front is re- ceiving an effusive reception from Hanoi's top lead- ership. The first such high-level delegation to visit North Vietnam in six years, it includes four members of the Front's central committee as well as lower ranking officials drawn from many of South Vietnam's major religious, ethnic, and geographical groups. This visit appears to be part of the continu- ing Communist effort to portray the Front as inde- pendent from Hanoi and to strengthen its prestige. The delegation's tour in North Vietnam could fore- shadow some new political move in connection with the Paris talks, where the Communists clearly hope the Front will play a leading role. F7 I 4 Mar. 69 Central Intelligence Bulletin 25X1 Approved For Release 20TIA-RDP79T00975A013200060001-8 Approved For Release 2093'A-RDP79T00975A013200060001-8 ocation of Sino-Soviet i'- Chia MU Szu Border Clash on 2 March Chi s en 0 Si: }?, 9 ' Hua nan an CHINA P'ch ?~ Ch'i t'ainc M 'ier g! 4t t?r ~? en t~c Pe;ryr cF'~YS ' $Rassk-Da1'~'`l ~Va~rcrlrmeyewka `i r govka Approved For Release 2003 RDP79T00975A013200060001.8 Approved For Release 2003/OD;jt1'DP79T00975A013200060001-8 Communist China - USSR: Peking has reacted an- grily to the public Soviet protest over a border clash on 2 March. In a sharply worded note delivered to the Rus- sians on 2 March the Chinese rejected the Soviet version of the incident and asserted that Soviet troops had "openly intruded into Chinese territory killing and wounding many Chinese." They followed up this blast with a massive Red Guard demonstra- tion outside the Soviet Embassy in Peking, the first such incident in two years. Available information does not permit a judg- ment of the validity of conflicting claims regard- ing responsibility for this incident. The versions of both sides, however, convey the impression that this could have been the most serious border clash in the past two decades. The Ussuri River frontier, where the clash oc- curred, has been the scene of continuing friction. On 3 March the Chinese official news service charged the Soviets with more than 35 border violations dur- ing the past two years. Likewise, the Russians have periodically accused the Chinese of border viola-, tions in the area. This latest clash comes at a time when Peking is increasingly sensitive to Soviet activity along the frontier. Last September the Chinese charged the Soviets with numerous violations of Chinese air space and Premier Chou En-lai asserted publicly that the Russians were conducting a major military buildup in the border region. (Map) 4 Mar 69 Central Intelligence Bulletin 25X1 Approved For Release 2003/0q 2CJfr[2DP79T00975A013200060001-8 Approved For Release 2003/d C1 ' DP79T00975A013200060001-8 Berlin: There have been sporadic incidents of Communist harassment of traffic to and from Berlin during the last 24 hours. One section of a five-section US convoy en route from West Berlin to West Germany was delayed for just under an hour yesterday morning when the Berlin-Helmstedt autobahn was closed, ostensibly because of Soviet - East German maneuvers. The convoy was otherwise unhampered; French and Brit- ish military convoys used the autobahn without incident. Some West German civilian traffic was subjected to short delays by the East Germans and there was a second closure of the autobahn for about an hour in the afternoon. Air traffic moved normally. Soviet represent- atives were on duty throughout the day at the Ber- lin Air Safety Center. A majority of the delegates to the West German Federal Assembly were expected to have flown into West Berlin by last night. Meanwhile, the West Germans have announced that several Bundestag committees will hold ses- sions in Berlin prior to and after the Federal As.- sembly meeting this week. Both Moscow and Pankow presumably will describe this as another provoca- tion. The East Germans have thus far failed to reply formally to the West Berlin Senat's latest proposal for further discussions, but Pankow's response was probably contained in a very negative article in the authoritative Neues Deutschland on 3 March. Commenting on alleged provocations by Bonn and West Berlin, the paper stated that "there is no way out other than cancelling the provocation ula ned for 5 March." F_ I Central Intelligence Bulletin 25X1 Approved For Release 20031V]RgRF]7fRDP79T00975A013200060001-8 Approved For Release 2003/0?1 :* rRDP79T00975A013200060001-8 Central America: Nicaragua's unilateral de- cision to impose restrictive trade measures is a backward step in the process of Central American economic integration. President Somoza announced on 28 February the immediate imposition of taxes on certain imports from other Central American Common Market coun- tries. His decision is primarily a reaction to a recent study by the International Monetary Fund, which concluded that the Nicaraguan Government could not further reduce current expenditures and could solve its economic problems only by reducing development outlays or finding new sources of rev- enue. Unwilling to reduce the level of public investment, the President has instead taken the difficult step of raising additional revenue. Somoza, who believes that his country's cur- rent economic problems have resulted in large part from unfair trading practices of the other Common Market countries, was also motivated by a desire to put pressure on them to ratify and deposit out- standing protocols. The Nicaraguan Government has threatened further unilateral acts if its Common Market partners do not speed economic integration. These measures may include taxes on presently ex- empt industrial products which are only assembled in Central America and which are not considered by Somoza to be crucial to Central American economic development. 4 Mar 69 Central Intelligence Bulletin 25X1 Approved For Release 2003/0:I 3DRUP79T00975A013200060001-8 Approved For Release 20c 4 1E&A-RDP79T00975AO13200060001-8 SENATE ilea n a press (PDC) ChristianDemocralic (PS) Socialist (PCCh) Communist (PR) Radical (PN) National Approved For Release 20Q 3 E IA-RDP79T00975AO13200060001-8 Approved For Release 20(03128 . A-RDP79T00975A013200060001-8 Chile: Congressional elections last Sunday cost President Frei's Christian Democratic Party its majority in the Chamber of Deputies, although it remains the largest party in Chile. With 31 percent of the vote--far below the 42 percent it obtained in 1965---it now holds only 56 seats of 150 in the lower house. In the Senate it gained, but is still three seats short of con- trolling that body. The biggest gainer was the conservative Na- tional Party, which emerged as the second largest party in Chile. This outcome was due in part to the party's effectiveness in associating itself with former president Jorge Alessandri and in part to a general disenchantment with reform on the part of Frei's middle class and conservative con- stituency. This disenchantment may also have been a major factor in the high level of abstentions-- over 26 percent--despite penalties for not voting. The Communist and Socialist parties together polled about 30 percent of the vote--an eight per- cent increase over the 1965 congressional elections. Pro-Castro Socialist Salvador Allende got the highest vote in his district, giving him an impor- tant push toward nomination by the Communists and Socialists for president in 1970. (Chart) 4 Mar 69 Central Intelligence Bulletin 7 25X1 Approved For Release 20]R(I) E.'ILIA-RDP79T00975A013200060001-8 Approved For Release 2?Al0 TCIA-RDP79TO0975AO13200060001-8 Costa Rica: A bitter and vindictive politi- cal campaign is taking shape for the general elec- tions next February. The parties of the incumbent coalition Na- tional Unification (UN) have chosen Mario Echandi as their standard bearer against his longtime po- litical enemy, Jose Figueres of the opposition National Liberation Party (PLN). The personal an- tagonism between the chief candidates, both of them ex-presidents, adds to the sharpness between the political groups. The UN and PLN have engaged in unrelenting political warfare since the 1966 elec- tions gave the executive branch to the UN and the legislature to the PLN. The tone of the forthcoming campaign was set by Echandi's immediate reference to the "menace that Figueres represents" and his promise to save Costa Rica from "a new and ominous PLN administra- tion." Adding to the heat of the political scene is the increasingly evident gap between political generations. Both parties have been racked by abortive youthful revolts against the long-dominant personalities. F7 I Central Intelligence Bulletin 8 25X1 Approved For Release 29 R2J'JCIA-RDP79T00975A013200060001-8 Approved For Release 2003/ & RDP79T00975A013200060001-8 Malawi: The influx of whites from southern Africa has strained race relations, raising the chances for eventual violence. President Banda's policy of encouraging invest- ment from white-ruled southern African countries, which have responded most positively to his program for economic development, has led to a disturbing racial by-product. The initial wave of white pro- fessionals and businessmen is being followed by openly prejudiced skilled and semiskilled laborers-- particularly from South Africa and Rhodesia--who will man a number of new development projects and commercial schemes. Growing disgruntlement among Malawi's African elite has resulted. As long as Banda rules the country, racial ten- sions are unlikely to produce serious political con- sequences. Banda is too well entrenched for any action to be taken against him. Although the possibility of his assassination as "a stooge of white racists" cannot be ruled out, the competence of the apolitical security forces, led by British expatriates, and the President's immense popular- ity among the uneducated masses in the bush have precluded any anti-Banda movement. 4 Mar 69 Central Intelligence Bulletin 25X1 25X1 Approved For Release 2003@]ffgRplf-RDP79T00975A013200060001-8 Approved For Release 2003/RDP79T00975A013200060001-8 USSR-Algeria-Morocco: Soviet President Pod- gorny is scheduled to arrive in Algeria late in March and to go on to Morocco on 1 April for five days. This will be the first visit by a Soviet chief of state to these two countries and drama- tizes the growing Soviet interest in the Maghreb. Soviet military and economic aid to North Africa is concentrated in Algeria, but Moscow is probably anxious to respond to King Hassan's recent willing- ness to increase contacts with the Soviet Union and repay the visit he made to Moscow in 1966. The Soviets concluded their most recent military and economic aid agreements with Morocco in October 1966. Soviet naval ships visited there for the Hungary-USSR: Hungarian economic leaders, in Moscow from 26 February to 1 March, have returned to Budapest apparently without having reached full agreement with their Soviet counterparts. TASS announced that the talks centered on "the further development of economic cooperation," but spoke only of a "friendly exchange of opinions." This cautious phraseology may reflect either some dis- agreement over proposed reforms within the Council for Mutual Economic Assistance or Soviet hesitance to endorse any proposals before completio of other bilateral talks. 4 Mar 69 Central Intelligence Bulletin 25X1 25X1 Approved For Release 2008/P A-RDP79T00975A013200060001-8 SecretApproved For Release 2003/03/28: CIA-RDP79T00975AO13200060001-8 Secret Approved For Release 2003/03/28 : CIA-RDP79T00975AO13200060001-8