CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A015500010001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 14, 2016
• Document Release Date: January 8, 2003
• Sequence Number: 1
• Publication Date: January 29, 1970
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
5
29 January 1970
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29 January 1970
Central Intelligence Bulletin
CONTENTS
Laos - Communist China: The Chinese are pushing road
construction north from Muong La. (Page 1)
Czechoslovakia: Party leader Husak appears to have
improved his power position. (Page 2)
Panama: The government is continuing its effort to
e~ velop a powerful labor movement. (Page 4)
Peru: The navy is having difficulty avoiding inci-
d'e'nts involving US fishing boats. (Page 5)
UN: A critical appraisal of the UN's technical as-
sistance effort has created a stir. (Page 6)
East Germany - West Berlin: Harassment (Page 7)
Cyprus: Anti-terrorist measures (Page 7)
Panama: Oil pipeline (Page 7)
Guatemala: Assassination (Page 8)
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Communist Chinese Road Construction in Northern_ Laos
AREA CHINA
OF
MAP
NORTH
VIETNAM
so.
VI ET
VIETNAM
l?, ; Muong
~.. n tru t~br Xhou i > * " "' 4Viflg ead
Na Road built "
pt. 6$-Apr, 69
Increased Co lju tong ira
military acts
,a ncrea in tlefeses
Ban
Hauei
S a i
Pak Ben&,
2
S eta ttMi6C"b
9761>b CIA
oLU ang
Prabang
Contested territory
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Laos - Communist China: The Chinese are push-
ing road construction nort from Muong La after sev-
eral months of limited activity.
I as of
24 January construction activity a ee e ded
some seven miles on a road that pre-
sumably will link Muong Sai wit Route 19. Heavy
equipment is being used to grade the road, which now
includes some drainage culverts. The rate of prog-
ress on this stretch is still well below the mile-a-
day rate achieved on the southwestern leg to Muong
Houn.
Meanwhile, in the extreme northwest corner of
Laos, the Chinese re-
cently have constructed a lmi a -weather road some
five miles across the Laotian border. The new road
is probably to help the Pathet Lap's current effort
to consolidate control over the generally hostile
populace in this area.
The primary thrust of the Pathet Lao's dry sea-
son activities in the northwest, however, is focused
south and west of Nam Tha, where a number of govern-
ment outposts have been under enemy pressure. For
the moment, government troops in this area, backed
by Lao aircraft, seem capable of meeting this threat.
(Map)
29 Jan 70 Central intelligence Bulletin
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Czechoslovakia: Party leader Gustav Husak ap-
pears to have improved his power position, but at
the cost of giving the party leadership a decidedly
more conservative complexion.
An expanded party plenum that opened yesterday
approved the promotion of a number of conservative
officials--some of whom were prominent under former
party boss Novotny--to replace the moderates who had
stayed on since participating in Dubcek's reform re-
gime in 1968.
Husak has removed from contention a potential
rival,'Lubomir Strougal, by engineering his transfer
from the head of the powerful Czech party to the
post of federal premier, replacing Oldrich Cernik.
Strougal's successor in the Czech party, Josef Kempny,
is considered a moderate-conservative likely to sup-
port Hus ak .
Three conservatives who had served in Novotny's
leadership were elected to the party presidium, and
Alois Indra, Moscow's choice to head a "collabora-
tionist" regime after the invasion in August 1968,
was granted alternate membership on the party's rul-
ing body. Indra probably is still Moscow's choice
for party leader in case of unforeseen contingencies.
The conservatives, who control the police and secur-
ity apparatus, succeeded in forcing the resignation
of moderate Interior Minister Jan Pelnar, one of the
Czechoslovak leaders who attempted to resist Soviet
pressures in the immediate post-invasion period.
Several other federal ministers and state sec-
retaries also have resigned, and more changes in key
federal and regional party and government organiza-
tions are imminent. The full significance of these
shifts cannot yet be clearly determined; some of
them appear to be an attempt to install effective
29 Jan 70 Central Intelligence Bulletin 2
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leaders who will be more responsive to the dictates
of the party hierarchy, and to the needs of the
country. Nevertheless, yesterday's changes are bas-
ically compromises, and this, as well as the promo-
tion of Indra, will make more difficult Husak's at-
tempts to grapple with the problems of aovernina.
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29 Jan 70 Central Intelligence Bulletin 3
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Panama: The government is continuing its effort
to develop a powerful labor movement and turn it into
a key pillar of support.
In two recent speeches before the Communist and
the non-Communist labor federations, Minister of La-
bor Escobar stressed that one of the primary goals
of the "revolutionary government" is to organize la-
bor to put it on a more equal footing with employers.
Last November, junta strongman General Torrijos called
for the creation by the government of a compulsory
labor organization. Stiff opposition from the demo-
cratic labor confederation and business groups side-
tracked this plan, however. Escobar's speeches rep-
resent a softening of Torrijos' earlier approach, but
they may signal the start of a new push to formalize
government-labor ties.
The labor minister's close association with the
Communist labor federation and its strong support of
the minister's policies are causing concern among
some Panamanians, who fear that the Communists will
form the core of any government-sponsored labor or-
ganization.
to have Torrijos' support. Moreover, he continues
to pack the ministry with people sympathetic to his
Escobar) Seems
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Peru: The navy is finding it difficult to avoid
incidents with US ships fishing within Peru's claimed
200-mile territorial waters.
Seizures of US tuna boats and large fines for
unauthorized fishing in Peruvian waters have been
major irritants in US-Peruvian relations in recent
years. A recurrence of such incidents during the
current fishing season would create an unfavorable
atmosphere when the US meets again with Chile, Ecua-
dor, and Peru to discuss problems arising from the
three countries' claim to exclusive fishing rights
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UN: The Jackson report, one of the first in-
depth appraisals of the UN technical assistance ef-
fort, has created a stir in UN circles.
Commissioned by the UN Development Program
(UNDP), the study was directed by Sir Robert Jackson
of Australia, a former UN undersecretary and a prin-
cipal architect of the UN Relief and Rehabilitation
Program during the late 1940s. In his report, Jack-
son claims that 20 percent of the assistance projects
undertaken in the $200-million annual effort are
"deadwood," initiated in many cases by the "sales-
manship" of the UN agencies responsible for their
management.
Jackson recommends that the responsibility for
the technical aid program be vested in a single,
powerful authority, possibly the UNDP itself. He
urges increased reliance by such an authority on
outside contractors. The recommendations, submitted
on 1 December, will be taken up by the UNDP governing
council in March.
Scandinavian representatives at the UN have
said that the Jackson report will be a crucial ele-
ment in determining their governments' future com-
mitments of foreign assistance through the UN sys-
tem. If the technical aid program is not revamped,
they would place greater emphasis on bilateral as-
sistance and other available multilateral channels.
Japan also has commented favorably on the report.
Many of the less developed countries have taken
a cautious attitude toward the Jackson report. In-
dia apparently fears that a further concentration
of authority and responsibility within the UNDP
would increase the influence of the major donors.
Another negative note has been sounded by a number
of Western delegates to the UN who doubt that the
UNDP staff has the capability to exercise the in-
creased prerogatives the Jackson proposals would
confer on it.
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East Germany - West Berlin: East German harass-
ment of West German travelers to and from West Berlin
ceased yesterday. The relatively low-key East German
actions began on 21 January to protest the West German
Bundestag committee and party meetings in West Berlin
from 22-27 January. East German harassment reached
its peak on 27 January, after West German Chancellor
Willy Brandt's return to Bonn from a one-day visit to
West Berlin. No harassment of Allied traffic was at-
tempted.
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Cyprus: President Makarios so far is backing the
anti-terrorist measures put into effect during his re-
cent absence by acting President Clerides. Despite
pressure from extremist groups on both the left and
right, Makarios has also endorsed a preventive deten-
tion law proposed by Clerides, but he has suggested a
six-month time limit for the bill. Rauf Denktash,
spokesman for the Turkish-Cypriot. community in the re-
cently resumed intercommunal talks, paid an implied
tribute to Greek-Cypriot Clerides for initiating the
anti-terrorist campaign. Denktash, however, has
warned of serious consequences if his c mmunity be-
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Panama: The government has signed an agreement
with a British - West German consortium to arrange
for financing and construction of an $80-million oil
pipeline across the isthmus, according to press re-
ports. The proposed government-owned line, which is
to have a daily capacity of 700,000 barrels, would
transport crude oil brought from Pacific Coast areas
and Alaska by tankers too large to go through the ca-
nal. Construction is expected to take 18 months and
to pay for itself in ten years through a 15-cent-per-
barrel transit charge.
(continued)
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I Guatemala: A widely known progovernment news-
paper executive was assassinated yesterday in Guate-
mala City, probably by Communist terrorists. The in-
cident broke a two-week lull in the urban terrorism
that began in mid-December when the Communists launched
their effort to disrupt the campaign for the general
elections of 1 March. This unprecedented attack on
a person connected with the public media is apparentl
29 Jan 70 Central Intelligence Bulletin
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