CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A014100010001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 15, 2016
• Document Release Date: January 28, 2004
• Sequence Number: 1
• Publication Date: July 3, 1969
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
50
3 July 1969
State Department review completed
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No. 0158/69
3 July 1969
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
East Germany: Pankow will pay heavily in foreign aid
for its recent recognition by several countries. (Page 2)
East Germany: Application of border controls to all
crossers is dismaying Pankow's eastern neighbors. (Page 3)
Hungary: The party has issued new guidelines easing
some restrictions on scientific research but tight-
ening ideological orthodoxy. (Page 5)
Western Europe: The Dutch parliament opposes the
tripartite gas centrifuge agreement. (Page 6)
Western Europe - Africa: The European Communities
have agreed to extend their link with Africa for
another five years. (Page 7)
Egypt-India: A project of the two countries jointly
to produce fighter planes has been ended. (Page 8)
West Germany: Relations with Southern Yemen (Page 9)
Venezuela: Student unrest (Page 9)
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C South Vietnam: Military activity remained light
and scattered. Communist overnight shellings were at
their lowest ebb in a month.
Communist espionage and commando-terrorist ef-
forts in Saigon have run into hard times.
During the past several months, government se-
curity services have uncovered several Communist in-
telligence networks in the capital city area. They
had provided the enemy with a broad range of infor-
mation on military operations and South Vietnamese
politics. One such network-, uncovered in April, had
reached into South Vietnam's Lower House, National
Police headquarters, the Joint General Staff, and the
Ministry of Revolutionary Development. The Communists
may have other assets at this level, but the extent
of their collection capability is not known.
A prisoner has reported that heavy casualties
during last year's fighting in Saigon crippled Com-
munist terrorist capabilities there. The Communists
have been forced to fill their commando ranks with
infiltrators from North Vietnam whose unfamiliarity
with cities in the South diminished their effective-
ness in Saigon. Although urban disruption remains a
high priority enemy aim, available evidence suggests
the Communists have been unable to place sufficient
assets in Saigon to meet their objectives.
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East Germany: Pankow probably will pay heavily
in foreign aid for its recent diplomatic recognition
by Iraq and several other less developed countries.
East Germany has agreed to provide Baghdad with
an $84-million credit to finance the import of in-
dustrial equipment and the cost of technical experts.
Although specific projects have not yet been announced,
some may have been agreed upon during the recent visit
to East Germany by the Iraqi minister for industry.
East Germany also signed economic aid agreements
of unknown magnitude with Syria and the Sudan follow-
ing their recognition. A similar agreement may be
concluded soon with Southern Yemen, which announced
its diplomatic recognition of East Germany on 30 June.
One East German spokesman recently told a US of-
ficial that his country could no longer afford "sig-
nificant recognitions" in the near future in view of
its extensive financial commitments to Iraq, Syria,
Cambodia, and the Sudan. Despite this claim, however,
East Germany probably would be willing to extend aid
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East Germany: Pankow's stringent application
of border controls to all crossers is dismaying its
eastern neighbors and is a minor harassment for West-
erners as well.
Polish, Czechoslovak, and Hungarian nondiplo-
matic travelers have been subjected to rigorous
searches and delays. Members of the Czechoslovak
and Polish military missions in West Berlin suffered
similar delays,
US and Hungarian journalists posted in West
Berlin have also experienced border delays, and in
some cases US newsmen have been denied entry to East
Berlin.
New taxes have been imposed on goods crossing
the border from both east and west. On 4 June, af-
ter the Poles had refused to pay transit tax on the
cargo, the East Germans refused passage to a truck
loaded with goods destined for the Polish Military
Mission in West Berlin.
The East Germans continue to reject those West
German goods that they deem an affront to East Ger-
man sovereignty. On 15 June, 5,000 copies of a West
German legal gazette were turned back at the border.
Some West German citizens and a West Berlin boatman
were stopped at the border on 28 June because of
alleged affiliation with the National Democratic
Party.
While the restrictions against the West are not
particularly new, those against East Europeans are.
In addition to emphasizing their sovereignty through
increased border controls, the East Germans may be
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attempting to correct real deficiencies in border pro-
cedures with the East. They are known, for example,
to be concerned about widespread smuggling. Their
tough treatment of East European travelers and
diplomatic personnel, however, may also be intended
to show East German pique over political and eco-
nomic differences within the bloc, particularly
with the Poles who currently are engaged in a dia-
logue with Bonn.
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Hungary: The party has issued new guidelines
for the nation's scientific effort that loosens some
bureaucratic restrictions on objective scientific
research and on Western contacts, but that further
restrict deviation from ideological orthodoxy.
The Hungarian party central committee on 27 June
approved a politburo program that is designed to
correct bureaucratic malpractices and to. reduce waste
and factionalism. The program calls for greater free-
dom to express scientific opinions in "suitable forums"
(i.e., not in the open press) and more official sup-
port for scientific exchanges with capitalist coun-
tries. These provisions are balanced, however, by
greater control by the party over the direction and
ideological content of scientific research. The pro-
gram also includes a 15-year research plan (1970-
1985), the establishment of a Committee on Science
Policy under the Council of Ministers, and a reform
of the Hungarian Academy of Sciences.
The guidelines will probably meet mixed reactions
from the scientific community. The prospect of more
open contacts with Western counterparts and the re-
gime's promise to "fight against subjectivism, nar-
row interests, and scientific monopolies" offers
some hope of reducing bureaucratic obstruction of
the research effort. On the other hand, the party's
insistence on ideological conformity and its reas-
sertion of absolute authority over scientific re-
search will cause much unease among researchers in
politically sensitive areas, such as the social
sciences.
The new program takes account of objections the
Soviets made to a revised science policy in Czecho-
slovakia last year and it may even have been cleared
last May by visiting Soviet party secretary Demichev.
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Western Europe: The Dutch Government is under
increasing pressure from parliament not to sign the
tripartite gas centrifuge agreement with the UK and
West Germany.
The legislators are concerned that the UK might
use enriched uranium from the centrifuge for weapons
purposes. They do not want the British to take the
slightly enriched uranium--about three percent U-235--
from the tripartite plants and feed it into their own
gaseous diffusion plant to bring it up to the high
enrichment necessary for a weapons program. The
Dutch may also be uneasy lest the British later ap-
ply the technology developed during the cooperative
venture to set up a gas centrifuge plant of their
own that would produce weapons-grade material.
The Hague will not permit any Dutch-sponsored
research to be involved in nuclear weapons production.
This is one of the reasons that the UK and the Nether-
lands have not been able to agree on the terms of the
tripartite treaty. The Hague has now suggested that
London come up with a compromise proposal that would
isolate the centrifuge process and product from any
British nuclear weapons program.
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Western Europe - Africa: A new version of the
Yaounde Convention, continuing the economic link be-
tween the European Communities (EC) and 18 African
states for another five years, has been initialed in
Luxembourg.
Under the new convention, the European Develop-
ment Fund will consist of $1 billion in aid, $200
million more than under the previous one. France
and Germany will make the largest contributions, with
the Benelux countries, Italy, and the European Invest-
ment Bank contributing lesser amounts.
Other issues, including the complex one of trade
preferences, were settled in secret negotiating ses-
sions. The Dutch and the West Germans had been press-
ing for a scheme of preferences for all less developed
countries, but the new convention will continue the
present preference arrangements with the African
states involved. The net trade advantage to these
states may now be less, however.
The African states were pressing for additional
trade advantages from the community. Their exports
to the EC have grown very slowly in recent years and
they hoped that improved preferences for their com-
modities would increase their sales. The offer of
additional aid was probably designed to mollify them.
France is pleased with the terms of the new con-
vention, particularly the size of the development
fund. The French consider the maintenance of the
EC-Africa link to be essential to
the African countries involved and
the stability of
to the reserva-
tion of Western influence there.
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Egypt-India: Egypt's abandonment of its E-300
aircraftengine program has effectively terminated
the project of the two countries jointly to produce
fighter planes.
The project, which got under way in June 1966,
was designed to join India's HF-24 airframe with
Egypt's E-300 engine. The UK has since supplied
the Indians with a better engine for the HF-24, and
the Indian Government reportedly has now offered the
test airframe to the Egyptians as a gift.
Egypt's development of the E-300 engine has en-
countered numerous problems. The Egyptians have spent
several hundred million dollars on the project, but
the engine was never effectively teamed with the
airframe.
Egypt's Council of Ministers reportedly decided
in September 1968 to use some aircraft plants built
for this project to manufacture consumer products.
It also called for termination of the fighter plane
project unless a successful flight were made by the
end of March 1969. In view of the delays, economic
and technical difficulties, and Soviet pressure to
terminate the project, Egypt reportedly will now
limit its efforts to the continuation of some basic
engine research and development work by a small group
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NOTES
West Germany: Bonn's decision yesterday to sus-
pend relations with Southern Yemen in retaliation for
its recognition of East Germany repeats the action
taken against Cambodia last month. As in the Cambo-
dian case, the suspension cif diplomatic ties repre-
sents a cabinet-level compromise. Christian Demo-
cratic ministers have argued for the traditional
complete break, whereas Social Democrats have ar-
gued for maintaining ties. Working-level officials
in the Bonn Foreign Ministry have shown concern over
the number of states recognizing East Germany--five
in two months--and have been pessimistic that West
Germany has any good way of stopping this trend.
Venezuela: Student unrest continues to disrupt
most of e country's universities. Left-wing student
extremists are demanding greater participation in
school administration, have seized buildings, and
have forced the suspension of classes, but there
has been no violence of the magnitude that occurred
last May. Student unrest will probably diminish
over the next few weeks as the academic year draws
Central Intelligence Bulletin
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