CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A016900080001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: February 11, 2004
• Sequence Number: 1
• Publication Date: August 15, 1970
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
50
15 August 1970
State Department review completed
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No. 0195/70
15 August 1970
Central Intelligence Bulletin
CONTENTS
Laos: Fighting has dropped to a low level. (Page 1)
Korea: President Pak has moved to take the propaganda
initiative away from Pyongyang. (Page 3)
Communist China: Chou En-lai has accepted an invita-
tion to visit Southern Yemen. (Page 4)
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Panama: The government has decided not to renew the
Rio Hato agreement with the US. (Page 7)
Peru: The business sector appears united in opposing
the recently promulgated industrial reform. (Page 8)
USSR - North Korea: Party-government delegation
(Page 9)
Dominican Republic: Balaguer inauguration (Page 9)
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Laos
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Laos: Fighting has dropped off considerably
with the Communist forces adopting a defensive pos-
ture.
The relatively low level of North Vietnamese
and Pathet Lao military activity may have been
prompted in part by a desire to keep things quiet
while the possibility of peace talks is explored.
Difficulties in mounting attacks and moving supplies
in extremely poor weather are undoubtedly contribut-
ing factors. Government forces, which usually take
the offensive during the rainy season, have not been
very active.
In the north, only occasional contacts with the
enemy have been reported recently in the areas to
the north and west of the royal capital of Luang
Prabang. Southwest of the Plaine des Jarres, the
Communists have staged several attacks on forward
positions, but these apparently were intended to
frustrate government efforts to retake territory
south of the Plaine. The North Vietnamese forces
inflicted heavy casualties, but did not seek to oc-
cupy these positions. Their units in this sector
are believed to be considerably under strength as a
result of the extended ground clashes and heavy bomb-
ing.
In the panhandle, last month's occasionally
heavy fighting along Route 23 south of Muong Phine
has been slowed by heavy rains. Farther south, Com-
munist forces succeeded in eliminating the last gov-
ernment outpost near Saravane on 13 August, but
otherwise this region has been relatively quiet for
several weeks.
Along the eastern edge of the Bolovens Plateau,
Communist units continue to launch mortar attacks
and probe government positions. For the time being,
however, the Communists appear satisfied to maintain
15 Aug 70 Central Intelligence Bulletin
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their foothold on the Plateau. So far the Communists
are not making extensive logistic use of the Se Kong
River, strengthening earlier indications that the cap-
tures of Attopeu and Saravane were made primarily
for their political impact.
In the far south, the Communists have yet to
fulfill their propaganda threats against the towns
along the road and river routes leading to Cambodia.
Government patrols around Paksong have found no evi-
dence of major enemy forces. In the Khong Island
area, the Communists seem to have dispersed the
forces they rep rtedly assembled late last month.
the Communists' chief
activity in t
is region is to organize support bases
in extreme southwestern Laos for Cambodian operations.
15 Aug 70
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Korea: President Pak Chong-hui has moved to
take the propaganda initiative away from Pyongyang
on the issue of Korean reunification.
Pak in his traditional 15 August Independence
Day speech called on the North Koreans to renounce
their policy of Communizing all of Korea by force in
order that the barriers dividing the country can be
gradually lifted. In a sharp departure from former
South Korean policy, Pak said that his government
would no longer oppose North Korean participation in
the UN debate of the Korean question providing
Pyongyang accepted the competence of that body to
deal with the question.
Pak's strong condemnation of the North Korean
leadership for the continued tension in Korea and
his demand that it recognize the competency of the
UN--something Pyongyang has never been willing to do--
indicate that Pak's intention is to gain a propaganda
advantage over Pyongyang rather than materially to
advance the cause of unification. Pak has been aware
for some time that Seoul's intransigent position on
contact with the North has had less propaganda ap-
peal than Pyongyang's ostensibly more flexible ap-
proach. Pyongyang's renewed emphasis this year on
peaceful unification was undoubtedly a prime onsid-
eration in Pak's de arture from past policy.
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Communist China: Chou En-lai has accepted an
invitation to visit Southern Yemen, but he is un-
likely to do so until this fall.
Chou will almost certainly take part in the
coming National People's Congress, which appears to
be scheduled for September, and Chinese National Day
celebrations on 1 October. Yesterday's public an-
nouncement that the invitation had been accepted,
nevertheless, underlines the movement of Chinese
diplomacy into a more active phase and emphasizes
Chinese interest in the Middle East. This area has
received increasing attention in Peking in recent
weeks, largely as an attempt to counter Soviet in-
fluence in the region.
When Chou does make the trip, he probably will
fulfill a long-standing invitation to visit Pakistan
on his way to Aden; a visit to Romania and Nepal is
also possible. This would be the first time Chou
has visited non-Communist countries since the Cul-
tural Revolution began.
15 Aug 70 Central Intelligence Bulletin
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Colon Coco solo
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U S Asked to leave Rio Hato
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Panama: The government has decided not to
renew the Rio Hato agreement, which expires on
23 August.
The Panamanian ambassador to the US told As-
sistant Secretary of State Meyer yesterday that
the US would have to vacate the 19,120-acre air-
field and training area when the agreement expires.
The ambassador indicated that a low-key announce-
ment to this effect would be released shortly in
Panama. He held out, however, the possibility
of negotiating a new base agreement sometime in
the future.
Last year Torrijos had promised General West-
moreland that the base agreement would be extended
without conditions, but Torrijos recently has been
asking for something in return. His most insistent
demand has been for the return of Old France Field
for the purpose of enlarging the Colon Free Zone,
but he has also alluded to an increased sugar quota
and construction of a highway.
Torrijos, convinced that he will not be able
to obtain sufficient concessions from the US to
protect his popular image, and looking ahead to
possible canal treaty negotiations in the future,
seems to be using the base issue to test the US
resolve and at the same time demonstrate his tough-
ness in dealing with the "gringos."
15 Aug 70 Central Intelligence Bulletin
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Peru: The business sector appears united in
its opposition to the recently promulgated indus-
trial reform.
Most important Peruvian business organizations
have gone on record as opposing the industrial re-
form through a strongly worded advertisement in
Lima newspapers on 12 August. Business is princi-
pally opposed to the provision that establishes
"industrial communities" as collective organiza-
tions of workers to receive shares of ownership
in each industrial enterprise. The businessmen
claim that this collective ownership "radically
modifies the right of private property."
The Velasco government's reaction to this op-
position so far has been to say that the business-
men do not understand the law. Criticism from the
private sector has, however, prompted some clarifi-
cations from the minister of industry. He stated
that the shares allotted to the "industrial commu-
nity" would be distributed to individual workers
when the goal of 50 percent ownership was achieved.
Prior to that, workers who leave the company will
be indemnified by the "industrial community," thus
preserving the concept of private property.
The government has also announced that it will
take criticisms of the reform into consideration
when issuing the implementing regulations, but that
there will be no major changes in the original re-
form. Officials have told the US Embassy that oppo-
sition only stren thens the government's resolve.
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USSR - North Korea: Soviet First Deputy Premier
Mazurov is heading the joint party-government dele-
gation that arrived in North Korea yesterday to mark
the 25th anniversary of the defeat of Japan. Mazu-
rov's visit--the first by a politburo member since
May 1969--seems aimed at countering the recent im-
provement in Sino - North Korean relations. Mazurov
will probably reiterate Soviet support for recent
North Korean proposals for reunification and for
Pyongyang's stand on the Korean issue at the coming
session of the UN General Assembly. He may also
discuss the Soviet military aid program, which has
been virtually dormant since major deliveries ended
in early 1969.
Dominican Republic: Joaquin Balaguer begins
his second four-year term as Dominican President
tomorrow, still working to form a government of
national unity.
All non-Communist parties except Juan
Bosch 's Dominican Revolutionary Party have expressed
a limited willingness to cooperate, but the leader-
ship of opposition groups appears divided on the
issue of participation. There has been relatively
little violence in the past month, but military and
police forces are on alert to control any disorders
that might occur.
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