CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A015300090001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: December 14, 2016
• Document Release Date: December 24, 2002
• Sequence Number: 1
• Publication Date: January 9, 1970
• Content Type: REPORT

Approved For Release 2003/01/29: CIA-RDP79T00975A0153&61db*-2
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
5
9 January 1970
Approved For Release 2003/01/29 : CIA-RDP79T00975A015300090001-2
25X1
 25X1 Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
 Approved For Release 2003- ,rep-RDP79T00975A015300090001-2
No. 0008/70
9 January 1970
Central Intelligence Bulletin
CONTENTS
Laos: The Communists have launched a rocket attack
against Pakse. (Page 1)
Denmark-NATO: Copenhagen plans to withdraw from the
Allied system of issuing travel documents to East
Germans. (Page 2)
Poland-France: Poland is touting its trade agreement
with France as a model. (Page 3)
Netherlands: The economic minister's resignation
underlines the coalition's vulnerability. (Page 4)
Peru: Widespread opposition to the new press law
has provoked a strong government response. (Page 5)
International Labor: European trade union leaders
are reacting negatively to a Soviet conference pro-
posal. (Page 6)
South Vietnam: "General strike" (Page 7)
IAEA: East German safeguards request (Page 7)
Algeria-Tunisia: Relations improve (Page 8)
Chile: Political showdown (Page 8)
SECRET
Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
 Approved For Release 2003/01 CtFA LlP79T00975A015300090001-2
*Laos: Communist forces launched a limited
rocket attack on 9 January against Pakse in the
southern panhandle.
The fact that the barrage was not fol-
lowed up with a ground assault suggests that the
Communists, smarting from their loss of the Plaine
des Jarres, were more interested in the psychological
impact than further territorial inroads at this time.
The attack on a politically sensitive Mekong
Valley population center also serves as a reminder
to Vientiane of the Communists' ability to heat up
the military situation with little notice. In a
more immediate sense, the Communists may hope that
the attack will deter the government from moving
additional troops from this area to bolster the
defense of the Plaine des Jarres. A government
arms depot outside of Pakse was the target of a
Communist commando raid in late January last year.
*Because of the shortage of time for preparation of this item, the analytic
interpretation presented here has been produced by the Central Intelli-
gence Agency without the participation of the Bureau of Intelligence and
Research, Department of State.
9 Jan 70 Central Intelligence Bulletin 1
SECRET
Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
25X1
25X1
 Approved For Release 200(3j1 -RDP79T00975A015300090001-2
Denmark-NATO: In response to domestic politi-
cal pressure, the Danish Government has decided to
withdraw from the Allied system of issuing temporary
travel documents (TTDs) to East Germans wishing to
travel in NATO countries.
The TTD system was set up in 1945 as part of
the four-power administration of Germany and was re-
tained by'the US, UK, and France as a means of coun-
tering periodic Communist harassments of access to
Berlin. Although not wholly persuaded of the merits
of the system, the Danes agreed to cooperate with
the three powers on the matter. Sentiment within
Denmark for abolition of the TTDs has grown steadily
as a result of repeated circumventions of the sys-
tem by some NATO members, as well as the creation
in 1958 of a Nordic Passport Union that opened Den-
mark to East German entry via Sweden and Finland.
Tempted by government weakness arising out of
a prolonged financial crisis, the opposition parties
decided to exploit discontent within the-prime min-
ister's Radical Liberal Party over coalition poli-
cies on the TTDs as well as on other matters. Fear-
ing defections in Parliament,'the government decided
after a round of talks within the coalition as well
as with the opposition that Denmark would henceforth
set its own conditions for East German entry into
its territory.
Although the West German Government now views
the TTD system as outmoded, it nevertheless regards
it as a potential bargaining point in upcoming
Allied-Soviet talks on Berlin. It is unlikely,
however, that the East Germans would be willing to
offer any major concession in return for abolition
of the system. Bonn appears willing to propose an
early discussion within NATO of terminating the TTD
system, which perhaps could be effected in an or-
derly way by next fall.
Central Intelligence Bulletin
SECRET
25X1
Approved For Release 2003/01/29 : CIA-RDP79T00975A015300090001-2
 Approved For Release 2003,$. 1 RB.IX-RDP79T00975A015300090001-2
Poland-France: Poland is touting its recently
signe five-year trade and economic cooperation
agreement with France as a model for its other major
Western trading partners to follow.
The agreement signed in Paris in late December
is aimed at doubling the level of trade over the
next five years as well as eliminating the sizable
Polish trade deficit that has averaged about $30
million annually over the last four years. Poland's
almost stagnant export trade with France will re-
ceive a boost because France has agreed to further
liberalize imports of Polish goods produced with
French assistance. If the trade goals are fulfilled,
they would result in annual increases of roughly $30
million over the next five years. Poland's trade
last year with France, its third largest Western
trading partner, is estimated
to
have
dropped
slightly below the 1968 total
of
$130
million.
France also agreed to provide a three-year
credit of $135 million for the supply of machinery
and equipment as well as technical assistance for
the exploitation of Polish copper resources. Terms
of the credit are not known, but repayment apparently
will be made chiefly by the export of copper mined
and processed in Poland. French aid in the develop-
ment of Poland's already rapidly expanding copper
industry will not only allow Poland to meet its own
growing demand for copper, but also provide a sur-
plus for export by the late 1970s.
Poland undoubtedly will seek at least as favor-
able trade concessions and even larger credits for
industrial development in talks with its other ma-
jor Western trading partners.
9 Jan 70 Central Intelligence Bulletin
SECRET
25X1
Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
 Approved For Release 2003/0y R[R-'FDP79T00975A015300090001-2
Netherlands: The resignation on 6 January of
the embattled economics minister underlines the
continuing vulnerability of the De Jong coalition
on domestic economic issues.
Minister De Block's resignation followed the
cabinet's decision to permit the metal industry to
adopt a new wage agreement which he and other eco-
nomic experts had labeled "clearly inflationary."
A new automatic cost-of-living adjustment mechanism
is the most controversial portion of the agreement.
After an initial boost of 4.75 percent this month,
it would allow maximum semi-annual wage increases
of three percent. De Block and other critics,
pointing to the traditional pacesetting role of the
metal industry, expressed their concern that this
agreement will trigger demands for similar provi-
sions from other branches of industry.
The cabinet decided to approve the agreement
for political reasons, probably to avoid labor un-
rest in general and within the labor wings of the
coalition parties in particular. Last September,
the three major trade union federations reacted
sharply to a new law strengthening the government's
right to nullify wage agreements it judges contrary
to the national interest. The Socialist federation,
closely allied to the opposition Labor Party, de-
cided to boycott future wage negotiations at the
national level, but the Catholic and Protestant
federations, allied to the coalition parties, took
a more equivocal position.
The coalition, which narrowly averted a crisis
over tax policy in November, anticipates battles on
other economic and fiscal matters before scheduled
elections next year, and may in fact be somewhat
relieved to see De Block go. He has drawn consider-
able criticism from the press and parliament for
some seemingly inept performances during the past
two years, and he was widely regarded as the gov-
ernment's weakest link. His departure will enable
De Jong to place a less controversial individual at
the head of the sensitive Economic Ministrve I
25X1
9 Jan 70 Central Intelligence Bulletin 4
SECRET
Approved For Release 2003 /29 : - -
25X1
 Approved For Release 2003/(9 ] ] l DP79T00975A015300090001-2
Peru: Widespread opposition to the press law
promulgated last week has provoked a strong response
from the Velasco government.
The new law limits participation in the infor-
mation media to native-born Peruvians residing in
the country and restricts press freedom where state
security or the honor and privacy of individuals is
concerned. It has aroused opposition from both pro
and antigovernment publishers and politicians. El
Comercio, Lima's leading newspaper and usually a
strong backer of the government, has led the fight,
charging in a recent editorial that the law is caus-
ing a "deterioration of our image abroad" and con-
tributing to "distrust in our nation." C The govern-
ment, however, sought and has obtained a statement
of supportfor the decree from the Communist Party
and its labor confederation.
In a communique released Wednesday, the govern-
ment stated that opposition to the law is a "counter-
revolutionary maneuver" and a "conspiracy." The com-
munique goes on to defend the law's constitutional-
ity, which has been challenged in court by two jour-
nalist associations and the Lima Bar Association.
The tone of the communique suggests that con-
tinued opposition may result in arrests based on the
provision in the law establishing a one-year prison
term for media offenses "prejudicial to state secu-
rity."
9 Jan 70 Central Intelligence Bulletin 5
SECRET
Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
25X1
 Approved For Release 2003/~WFZDP79T00975A015300090001-2
International Labor: European trade union
leaders are reacting negatively to a Soviet Proposal
for a European trade union conference, but they could
be swayed if West Germany decides to support it.
The proposal was apparently made in Moscow last
fall during talks between officials of the West Ger-
man Trade Union Federation (DGB) and the Soviet All-
Union Central Council of Trade Unions. A conference
with the participation of the International Confed-
eration of Free Trade Unions (ICFTU) and the Commu-
nist-dominated World Federation of Trade Unions
(WFTU) has been a Soviet policy objective for many
years. The current initiative is probably designed
to generate pressure in the West for a European se-
curity conference.
Most key. Western labor leaders, including ICFTU
General Secretary Harm ]3uiter, are opposed to a con-
ference of such a highly political nature. Buiter
believes that the best way to sidetrack it might be
a European regional labor conference sponsored by
the International Labor Organization and concerned
simply with labor matters. A factor in the ICFTU's
reaction to the proposal is its current attempt to
obtain the reaffiliation of the AFL-CIO, which with-
drew from the ICFTU last February. Given the AFL-
CIO's strong opposition to any contact between
ICFTU and WFTU unions, acceptance of the Soviet pro-
posal probably would prevent the return of the AFL-
CIO to the ICFTU.
Despite these considerations, several labor
leaders have said that the Germans' response will
be the key. The DGB is scheduled to discuss the
matter early in February, and Chancellor Brandt's
view of the proposal in relation to his Eastern
policy will have a significant bearing on the DGB
Central Intelligence Bulletin
SECRET
25X1
Approved For Release 2003/01/29 : CIA-RDP79T00975A015300090 1-
 Approved For Release 2003/0+1i C .Ik bP79T00975A015300090001-2
South Vietnam: The one-day "general strike"
by some 15,000 workers on 7 January does not appear
to have caused any serious disruption. The strike
had been called by local elements of the Vietnamese
Confederation of Labor after they had been unable
to persuade the government to get the city's bus
company back in operation following several months'
idleness. Although the local leaders had voted
to extend the strike, the confederation's national
chairman, Tran Quoc Buu, ordered them to call it
off and resume parleys with the government. The
strike may result in some strain between the gov-
ernment and the confederation, but Buu's action
has for the time being dampened down a potentially
troublesome situation.
IAEA: East Germany has asked the International
Atomic Energy Agency (IAEA) to apply its safeguards
system to a recent shipment of 200 kilograms of
enriched uranium received from the USSR. The level
of enrichment is such that the uranium could not
be utilized in a weapons program. This is the
first instance, however, of a request for IAEA
safeguards on fissionable material shipped by the
USSR. East Germany did not raise the question of
IAEA membership in its request, but may be using
it to improve its membership prospects. Soviet
handling of the request may be an indication that
Moscow now is intent on bolstering the IAEA safe-
guards system as entry into force of the nonpro-
liferation treaty draws near. The treaty requires
the application of IAEA safeguards to adhering
nonnuclear states.
(continued)
9 Jan 70 Central Intelligence Bulletin 7
SECRET
Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
25X1
25X1
 Approved For Release 2003/SVRDP79T00975A015300090001-2
25X6
25X1
Algeria-Tunisia: Relations between Algiers
and Tunis, which have been gradually improving,
reached a new high this week when a series of ac-
cords was signed, moving virtually all outstanding
problems closer to solution. Included were a 20-
year friendship pact, as well as agreements on
various financial, commercial, and juridical mat-
ters. The new cooperation between these sometimes
antagonistic neighbors stems from the interest both
countries have in promoting greater Maghrebian
unity as a counterpoise to Egyptian influence.
impartiality of the proceedings.
create an unfavorable impression regarding the
Chile: The government is preparing for a
showdown with retired General Viaux. The defense
minister and the army commandant have publicly
refuted recent statements by Viaux that he called
off the army upraising last October only after the
government promised to raise military salaries,
make changes in the high command, and take no
reprisals against those involved in the revolt.
Although the government believes its denials will
undercut Viaux, the attack will continue to keep
his name in the news. Moreover, the dismissal of
six officers whose trials are still pending will
9 Jan 70 Central Intelligence Bulletin
SECRET
25X1
Approved For Release 2001701729 : CIA- DP79T00975A015300090 01-2
 Secreipproved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2
Secret
Approved For Release 2003/01/29 : CIA-RDP79T00975AO15300090001-2