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December 14, 2016
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March 5, 2003
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August 7, 1969
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Approved For Release 2003/03/28: CIA-RDP79T00975A014300Sw6mt 25X1 DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin Secret 50 7 August 1969 Approved For Release 2003/03/28 : CIA-RDP79T00975A014300040001-8 25X1 Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 Approved For Release 2003/0$fEC;REUP79T00975A014300040001-8 No. 0188/69 7 August 1969 Central Intelligence Bulletin CONTENTS Vietnam: Situation report. (Page 1) Communist China: Peking has underscored its deter- mination to end local disorders. (Page 2) Cambodia: Sihanouk is having difficulty finding a new prime minister. (Page 3) Argentina: The government is increasingly concerned about reports of unrest within the armed forces. (Page 4) Chile: An ongoing power struggle threatens to split the Socialist Party. (Page 5) USSR-Czechoslovakia: Anniversary preparations (Page 6) 25X1 Italy: New government (Page 6) Yugoslavia: Trade deficit up (Page 7) SECRET Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 Approved For Release 20RM8E'PA-RDP79T00975A014300040001-8 cAM RANF7 SOUTH VIETNAM 95759 8-69-CIA Approved For Release 2003/03/28 : CIA-RDP79T00975A014300040001-8 SECRET 25X1 Approved For Release 2003/03I lt- 3P79T00975A014300040001-8 C Vietnam: South Vietnam: Military action throughout the country on 6 August continued to reflect the low level of fighting of the past two months. The only significant contact with enemy forces was made southeast of Tay Ninh city where allied troops killed 35 Communist regulars while suffering only a few casualties. On 7 August, the Communists launched a rocket attack against the US base at Cam Ranh Bay. Preliminary reports indicate that two Americans were killed and 98 injured. Since late June, the South Vietnamese Government has received a considerable number of armed non- Communist dissidents and guerrillas who have not been under the discipline of the Communists. Some of these bands have been operating in the Mekong Delta for years. The ralliers, numbering well over 1,000, repre- sent a mixed ethnic and politico-religious sect. Many claim to have been fighting the Communists for years, but dared only to attack small Viet Cong units. The group now hopes to be formed into a territorial security force, and to continue to fight the enemy in the delta. 7 Aug 69 Central Intelligence Bulletin 25X1 Approved For Release 2003/039&0 1 P79T00975A014300040001-8 Approved For Release 2003&E8RE1IW-RDP79T00975A014300040001-8 Communist China: Prolonged factional fighting in some provinces has prompted Peking to issue a new directive underscoring its determination to end local disorders. A central committee directive dated 23 July calls on factionalists to cease fighting and to sur- render their firearms within one month or be treated as "counterrevolutionaries." this order is now being circulated in the capital o Shansi Province, where "bitter armed factional fighting" is taking place. Shansi is among more than a dozen areas where armed fighting has been reported since June. Even though the level of disorder remains far below that reached during the height of the Cultural Revolution, it still poses serious obstacles to Peking's current drive to restore political unity. The directive of 23 July, recent propaganda assailing provincial "anarchism," and the appearance in Peking of top leaders from some of the more troubled provinces all suggest that efforts to untangle regional political problems are being intensified. It is doubtful, however, that these latest efforts will be any more successful than previous attempts to end factional fighting. 7 Aug 69 Central Intelligence Bulletin 25X1 25X1 Approved For Release 2003/03 CR4 RJDP79T00975A014300040001-8 Approved For Release 2003/03/2ES.lAf79T00975A014300040001-8 Cambodia: Chief of State Sihanouk is having some difficulty in finding a new prime minister. General Lon Nol's abrupt decision to withdraw his pledge to form a government suggests that despite protestations to the contrary, Sihanouk is still re- luctant to delegate real authority. Lon Nol ran afoul of Sihanouk during an earlier stint as prime minister, and the general. presumably sought assurances that this time he would enjoy a relatively free hand in making certain administrative and policy changes. Prince Norodom Kantol, a former prime minister whose chief asset is his unquestioning loyalty, is now trying to form a government. It is not clear whether he is doing so at: Sihanouk's behest, however. Although Kantol's malleability would be a plus factor, Sihanouk also realizes that a Kantol government would not provide the kind of leadership he claims Cambodia needs to cove with mestic problems. 7 Aug 69 Central Intelligence Bulletin Approved For Release 2003/03/AEC..1R- 79T00975A014300040001-8 Approved For Release 2003w EIK-RDP79T00975A014300040001-8 Argentina: The Ongania government is increas- ingly concerned about reports of unrest within the armed forces. On 5 August the government closed for an inde- finite period Primera Plana, one of the most widely circulated weekly news magazines in Latin America, and confiscated its current edition. No official explanation for the action was given, but the mag- azine had recently published reports alleging mili- tary dissatisfaction with the government. The ul- tranationalist periodical Azul y Blanco and the or- gan of the antigovernment bloc of unions within the General Labor Confederation had been closed recently, probably also because of reporting about military unrest. The cause of the government's increasing nerv- ousness appears to be a series of events--not neces- sarily related--that have occurred during the past five months. These have included numerous terrorist attacks, worker and student violence that has claimed more than 20 lives, an abortive antigovernment plot in Cordoba, and the arrest of three senior colonels and forced retirement of an ultranationalist general for fomenting discontent with the government. These incidents have resulted in a measurable decline in military confidence in the government. un ess the administration moves rape y o resolve socio-economic problems, further unrest is likely. Troops would probably then have to be used to quell the disturbances, and the wedge between the military and the rest of the county would be driven deeper. 7 Aug 69 Central Intelligence Bulletin 4 25X1 25X1 25X.1 Approved For Release 2003/OR-DP79T00975A014300040001-8 Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 SECRET Chile: The power struggle within the Socialist Party threatens to split the party and end the pos- sibility of a.leftist unity front in the presidential ,election next year. The latest development--a decision that the can- didate will be named by the central committee rather than by the party congress--undercuts Senator Salva- dor Allende, who has Communist backing for nomination by the Communist-Socialist Popular Action Front. All- ende has considerable grass-roots strength and would probably draw support from a broad group of voters. The central committee, however, would be likely to name a candidate less committed to nonviolence, such as the party's secretary general, Aniceto Rodriguez. If Rodriguez is nominated, Allende may launch his own candidacy,, possibly with the support of the Communist Party, some dissident Socialists, and a break-away group of leftist Christian Democrats. He probably believes that such a maneuver could thwart the efforts of Radomiro Tomic, the probable Christian Democratic candidate, to gain support from rank-and- file Socialists and Communists even though the lead- ership of both parties has rebuffed his approaches. 7 Aug 69 Central Intelligence Bulletin 5 SECRET Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 SECRET USSR-Czechoslovakia: Soviet leaders are giving priority attention to Czechoslovakia as the anniver- sary of the invasion approaches. Czechoslovak party chief Husak and President Svoboda have been meeting with Soviet leaders in the USSR since last weekend. The press blackout of their activities suggests that major issues are being decided--including political and security preparations for the anniversary and possibly an official Czechoslovak justification of the invasion. Yesterday, General Yepishev, the po- litical chief of the Soviet armed forces, arrived in Prague for "mutual consultations" with Czechoslovak military leaders. Italy: Premier Rumor's new minority Christian Democratic government is expected to adopt the do- mestic program of the preceding center-left govern- ment. Foreign Minister Aldo Moro is likely to main- tain Italian foreign policy along present lines. Po- litical leaders plan to try to re-establish a center- left government after public opinion is measured in local elections, either late this year or next spring. In the meantime, the inclusion of a broad spectrum of Christian Democrats in the cabinet may give the party more cohesion. (continued) 7 Aug 69 Central Intelligence Bulletin 25X1 25X1 SECRET Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 Approved For Release 2003/03(o2(5MftP79T00975A014300040001-8 Yugoslavia: Yugoslavia's trade deficit for the first seven months of 1969 has almost reached the total for all of 1968. This deficit, nearly $450 million, is due primarily to the high level of im- ports from convertible currency areas. Although in- creased net earnings from tourism, transport, and other services will partially offset the trade def- icit, the current account deficit with convertible currency areas probably still will exceed that of 1968. Yugoslav officials want to avoid imposing fur- ther import restrictions, which would run counter to the economic reform now being implemented. Moreover, Tito recently urged a prompt revision of foreign ex- change regulations to encourage expansion of exports. 7 Aug 69 Central Intelligence Bulletin 7 SECRET Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 Secf Loved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8 Secret Approved For Release 2003/03/28 : CIA-RDP79T00975AO14300040001-8