CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A015800090001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 14, 2016
• Document Release Date: April 30, 2003
• Sequence Number: 1
• Publication Date: March 23, 1970
• Content Type: REPORT

Approved Folease 2003/05/29: CIA-RDP79T00971580SUp64
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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
STATE review(s) completed.
Secret
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No. 0070/70
23 March 1970
Central Intelligence Bulletin
CONTENTS
Cambodia: The Communists are taking a tough line
with the new leadership in Phnom Penh. (Page 1)
Islamic Conference: Little of significance is ex-
pected from the meeting of Islamic foreign ministers.
(Page 3)
USSR: Industrial. enterprises are to be transferred
to the reformed system of planning and incentives
by the end of the year. (Page 4)
Singapore: Attack on community center (Page 5)
NATO: Discussion of Sino-Soviet dispute (Page 5)
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Fedayeen - Communist China: Arafat's visit (Page 6)
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Cambodia: The Communists are taking a tough
line wit the new leadership in Phnom Penh.
After avoiding direct comment on events in Cam-
bodia for three days, North Vietnam labeled Carnbo-
.dia's new leaders as a "pro-American ultrarightist
group" in an authoritative'Nhan'D'an statement on 22
March. Arguing thatSihanouk's ouster had been en-
gineered by the US, Nhan'D'an stated that "our people
fully support" the struggle of the Cambodian people
against the US and, the new leadership. This state-
ment and a reference to "stepping up the fight"
against the US "lackeys" may be meant as a warning
to the Lon Nol - Sirik Matak government that the Com-
munists are prepared to fight unless the new leaders
are accommodating. The Communists did not specifi-
cally state that they would back Sihanouk, however.
The Chinese Communists, for their part, appear
to be sticking with Sihanouk, at least for the pres-
ent. They continue to refer to him as chief of state
and they have broadcast Sihanouk's lengthy apologia
and attack on the new regime.
Although his specific intentions are still far
from clear, Sihanouk's statements in Peking this
weekend suggest that, in his present state of mind,
he is susceptible to whatever plans the Communists
may have to overthrow the new Phnom Penh leadership.
Sihanouk has counted himself out as a prominent fig-
ure in Cambodia's future, but he also stated that
his "duty" was to aid the "struggle... from the in-
side and from the outside to erase this coup." He
has stated, moreover, that Communist China and the
Soviet Union have agreed to support him during the
period he is in exile. Sihanouk is not likely to
play the role of a Communist stooge, however, and
his statements may be partially designed to bluff
jittery opponents in the Cambodian capital.
(continued)
23 Mar 70 Central Intelligence Bulletin
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The government, meanwhile, has called on the
Geneva cochairmen to "reconstitute" the Interna-
tional Control Commission to meet the threat of
foreign troops on Cambodian soil. It has also
called for "official negotiations" with the Viet-
namese Communists to "demand" the withdrawal of
their troops.
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Islamic Conference: Little of significance is
expected from the conference of Islamic foreign min-
isters opening today in Jidda.
The meeting, set up by the Islamic summit in
Rabat last Septerrber, is intended to improve coop-
eration among Muslim states on issues of common con-
cern. Most Muslim countries plan to attend, but
among the exceptions will be Iraq and.Syria. No
formal agenda for the conference has been announced,
but the establishment of a permanent Islamic secre-
tariat will be a major subject. Opposition to such
a body can be expected from the more "progressive"
Arab states like Egypt which fear that their strong
influence in the Arab world would be weakened in a
larger Islamic context. There will also be some
discussion of the general Arab-Israeli problem.
Although the meeting is likely to have few pos-
itive results, it will afford an opportunity for
some participants to tackle bilateral problems pri-
vately. Saudi Arabia and Yemen, for example, could
take advantage of the occasion to examine their mu-
tual. problems, specifically the civil war in Yemen.
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USSR: The transfer of industrial enterprises
5Lo the reformed system of planning and incentives
is to be completed before the end of this year, ac-
cording to the deputy chairman of the State Planning
Commission.
The reform, which represents a very limited at-
tempt to increase the autonomy of Soviet enterprises,
stresses economic guideposts such as profitability.
The deputy chairman's statement, however, emphasizes
that market principles will not be allowed to super-
sede centralized planning and management in Soviet
-industry.
The transfer of enterprises to the system began
in 1966 and originally was to have been completed
by the end of 1968. This schedule has not been met.
By 1 March 1970, "over 38,000" industrial enterprises,
accounting for more than 85 percent of production,
had been transferred. The some 11,000 enterprises
still on the old system are generally the smaller
and less efficient units. Although they account for
15 percent of industrial output, they earn only seven
percent of the profit.
The reform provides modified rules to govern
the operation of enterprises of consistently low or
negative profitability. The Soviets, however, seem
to have found the reformed system to be suitable
only for the operation of more profitable units.
There is still no indication that this difficulty
is being resolved. Moreover, even if the new dead-
line for completing transfers is met, the impact on
Soviet industrial output will be slight.
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NOTES
Singapore: The destruction of a government-
sponsored community center on 20 March is the most
serious ideologically motivated incident in Singapore
in some years, but it does not presage large-scale
or sustained violence. The target is one of several
centers established to counter Communist influence
and to serve as an effective liaison between the gov-
ernment and the public. The seven attackers--none
of whom has been reported apprehended--could be from
any one of a number of small groups of Maoist-ori-
ented youth in Singapore who advocate "armed strug-
gle." They may have been incited to such action by
a clandestine China-based radio, which since mid-No-
vember has been broadcasting calls for the overthrow
of both the Malaysian and Singaporean governments.
The chief result of their attack may be to offer the
government new justification for placing further re-
strictions on leftist and Communist elements.
b
NATO: In a recent four-day meeting at NATO
headquarters, high-level delegations from all of the
Allied countries discussed the current status of the
Sino?-Soviet dispute and its implications for NATO
states. This session of the Atlantic Policy Advisory
Group was held under new guidelines designed to im-
prove Alliance consultation procedures on major pol-
icy questions. The US NATO Mission reports that the
broad consensus achieved on the nature of the Sino-
Soviet dispute should be useful if the situation
develops into a crisis demanding intensive consulta-
tion and harmonization of the Western position.
(continued)
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Fedayeen - Communist China: Fatah leader Yasir
Arafat is paying his first visit to Peking in search
of weapons and more formal political recognition for
the Palestine liberation movement. The Chinese have
given him a warm welcome and are likely to offer ver-
bal encouragement and some arms. During Arafat's re-
cent visit to Moscow, he also probably received a
promise for some additional aid, but obtained little
else
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