CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A015700110001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 14, 2016
• Document Release Date: January 14, 2003
• Sequence Number: 1
• Publication Date: March 11, 1970
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
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No. 0060/70
11 March 1970
Central Intelligence Bulletin
CONTENTS
South Vietnam: The Communists seem to be offering
an increasingly stiff challenge to pacification.
(Page 1)
Communist China - Nepal: Peking's program to finance
Nepalese constructia projects is in trouble. (Page 2)
Trinidad: Black power demonstrations are indicative
of the explosive potential in the Caribbean. (Page 3)
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West Germany - Yugoslavia: Bonn has offered Belgrade
a su stantial economic package. (Page 5)
Malawi: Terrorism (Page 6)
UN - South-West Africa: Security Council proposal
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South Vietnam: The Communists seem to be of-
fering an increasingly stiff challenge to the paci-
fication program.
Enemy forces struck hard at three government
outposts on 9-10 March, over--running on:e positi6n
in Phu Yen Province on the central coast and another
near Can Tho in the delta. A second outpost in Phu
Yen came under heavy Communist pressure but held
out. The government's Territorial Forces lost 35
dead and 42 wounded in the actions; there were no
reports of any enemy losses, Last week a number of
other government outposts in the delta and south of
Da Nang in I Corps were hit hard.
Attacks such as these cause local setbacks to
the pacification program even though the general
level of fighting countrywide remains low and most
of the enemy's big units remain in rear base areas.
The assaults are also calculated to remind a signif-
icant part of the rural population that the Commu-
nists are still a force to reckon with,
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Communist China - Nil: Peking's program to
finance Nepalese construction projects through the
local sale of Chinese commodities reportedly is run-
ning into difficulties
The Chinese have recently made an additional
$960,000 cash grant for road construction projects
because proceeds from commodity sales have not gen-
erated enough funds to cover local construction
costs- The Chinese blame insufficient sales on
Kathmandu's practice of overpricing Chinese goods
in deference to India; Nepal's largest trading part-
ner. The Indians, who sell similar commodities in
Nepal. could not compete with the Chinese products
if they were put at the low prices the Chinese have
suggested..
This apparently is the first time that Peking
has had to extend additional foreign exchange to
prevent the possible cancellation of an aid project
in Nepal- Previous aid agreements, however, have in-
cluded cash as well as commodity assistance, Since
1956, Peking has provided grants totaling $65 million
to Nepal for road construction projects, a hydroelec-
tric plant, and a variety of light industrial projects.
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Trinidad: The recent black power demonstrations
in Trinidad are indicative of the explosive potential
that exists in the Caribbean.
The demonstrations, which were built around a
core of about 1,000 demonstrators but attracted as
many as 14,000 people at times, have continued since
26 February. The demonstrations have been characterized
by a significant degree of leadership and coordination,
in contrast to previous ineffective efforts. Radicals
are probably still far from threatening the existing
order, although a potential exists for leaders who can
link black power themes with popular issues or with
economic discontent caused by the dominant position
of whites in the economies of the area.
The demonstrations in Trinidad grew out of a
sympathy march for West Indian students currently on
trial in Canada for their part in the costly student
riots in Montreal last year. Black power themes
quickly dominated the protests, however. As a result,
the violent aspects of the demonstrations, including
the firebombing of a US Embassy official's home, were
heavily overplayed in the press.
The crowd of about 200 at the protest on Monday
suggests that the current wave of enthusiasm is waning.
Any new incident, however, such as the harsh sentencing
of the students in Montreal, police overreaction, or
planned violence by demonstrators could lead to serious
unrest both in Trinidad and elsewhere.
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West Germany - Yugoslavia: Economics Minister
Schiller unwrapped a substantial economic package for
Belgrade during his recent visit.
The major gain was a $27-million government-
guaranteed credit that carries terms more favorable
than commercial credits and is unrestricted as to
use. Arrangements also were concluded for the dis-
bursement over the next three years of some $38 mil-
lion remaining from a $75-million commercial credit
extended in 1969.
Bonn also agreed to increase to $11 million its
guaranteed purchases of Yugoslav textiles manufac-
tured from German raw materials. This will permit
Yugoslav re-export earnings to increase five to six
times over the level previously allowed. Bonn, how-
ever, was unable to grant additional liberalization
on imports of Yugoslav wine, because such an action
requires approval by the European Economic Community.
A new "cooperation committee" was established
which will include representatives from both govern-
ments as well as from industry. It will discuss ways
to expand German investment in Yugoslavia.
The new package, while not providing all the Yu-
goslavs would like, will help to ease Belgrade's
large trade deficit with Bonn.
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NOTES
Malawi: The Banda government is again concerned
over acts of terrorism. Five more people were mur-
dered in suburban Blantyre by ax-wielding terrorists
on 8 March, bringing to nearly 40 the number of un-
solved similar murders in the area since late August.
Residents are in an ugly mood, and President Banda
has made an appearance at the scene of violence in
an attempt to allay public fears. The government,
which has forbidden news media to report the inci-
dents, is obviously fearful of civilian riots such
as those that erupted in January.
UN - South-West Africa: The special UN Security
Council subcommittee on South-West Africa has decided
to request of all governments and specialized agen-
cies concerned "as full and detailed information
as possible" on business, military, and diplomatic
relations with South Africa involving the territory.
This proposal was originated by the Finns, who hope
to forestall pressure from the African states for
more radical measures. The Soviets objected to lim-
iting the request to activities in South-West Africa,
but did not oppose adoption of the proposal. The
subcommittee is to report to the Council by 30 April
its recommendations for dealing with Pretoria's re-
fusal to withdraw from the territory.
Central Intelligence Bulletin 6
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