CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A017100010001-0
• 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: September 4, 1970
• Content Type: REPORT

Approved For Release 2004/03/16: CIA-RDP79T00975A01710cSe et
25X1
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
,, .. 50
4 September 1970
State Department review completed
Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0
 25X1 Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0
Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0
 Approved For Release 2004/S RDP79T00975A017100010001-0
No. 0212/70
4 September 1970
Central Intelligence Bulletin
CONTENTS
USSR - Middle East: The Soviets appear to be lay-
ing the group work to blame the US and Israel if
the cease-fire breaks down. (Page 1)
Japan - Nationalist China: A dispute over oil rights
is heating up. (Page 3
West Germany - USSR: The two countries are pursuing
technical, economic, and political contacts. (Page 4)
25X1
India: Mrs. Gandhi again has demonstrated her polit-
ical skill. (Page 7)
Ceylon: Colombo is seeking increased trade and aid
from Communist countries. (Page 8)
Cambodia: Military situation (Page 9)
USSR-Indonesia: Economic aid (Page 9)
Chile: Violence possible (Page 9)
Ivory Coast: "African Riviera" (Page 10)
Approved For Release 2004/18 kT f DP79T00975A017100010001-0
 Approved For Release 2004/03/$F'6P79T00975A017100010001-0
USSR - Middle East: The Soviets appear to be
laying the groundwork for focusing blame on the US
and Israel in the event the Middle East cease-fire
breaks down.
After soft-pedaling criticism of US support
for Israel after the cease-fire began on 7 August,
Pravda on Wednesday accused Washington of encourag-
ing Israeli intransigence by continuing to supply
weapons during the cease-fire and quoted US offi-
cials on the US' determination to maintain a mili-
tary balance favorable to Israel. At the same
time, Moscow has maintained its criticism against
Israeli "stalling" and has charged Tel Aviv with
using threats and saber-rattling to improve its
position.
Despite continued urging by Soviet commenta-
tors that the negotiations in New York move forward,
this slight shift in emphasis suggests that in the
light of recent events, Moscow sees prospects dim-
ming for both the cease-fire and negotiations.
4 Sep 70 Central Intelligence Bulletin
Approved For Release 2004/0 W2RIE'bP79T00975A017100010001-0
 Approved For Release 2004 4Q6 RDP79T00975A017100010001-0
Tokyo and Taipei Dispute Oil Rights
NORTH
KOREA
JAPAN
CH:IN}A
S' Taipei,
Sonkaku Islands
Dispute brewing over
R
TAIWAN oil discovery on
continental shelf
OCEAN
25X1
Approved For Release 2004/Q.I KWDP79T00975AO17100010001-0
 Approved For Release 2004/0S/ 1 ii-kDP79T00975A017100010001-0
Japan - Nationalist China: The dispute between
Tokyo and Taipei over rights to oil discovered off
the Senkaku Islands is heating up.
Japanese Foreign Minister Aichi earlier this
week asked the US to reaffirm Japan's claim to the
area, which the US will administer as part of the
Ryukyu Islands until their reversion to Japan in
1972. Last July Tokyo lodged an official protest
with Taipei over Nationalist claims that the islands
are part of the Chinese continental shelf.
The Japanese announced discovery of the oil
deposit, which they believe may be one of the ten
largest in the world, in August 1969. Soon after-
wards Taiwan granted a major US oil company permis-
sion to prospect in the area, despite Japanese ob-
jections. US authorities in the Ryukyus have also
been under pressure from US oil companies for ex-
ploratory rights in the area. So far no develop-
ment of the oil resources has taken place.
This sensitivity over the Nationalist Chinese
claims reflects Japan's strong desire to reduce its
extreme dependence on foreign sources of petroleum.
Tokyo may shortly propose that the dispute with
Taipei be solved through diplomatic channels.
Taipei, however, is reacting strongly to the Japa-
nese claim; the Nationalists recently ratified the
Continental Shelf Convention of 1958 in order to
strengthen their legal position. The dis ute could
be complicated later by Communist Chinal
Peking's position in the contro-
versy has not e? been made clear.
I(Map)
4 Sep 70
Central Intelligence Bulletin
25X1
25X1
Approved For Release 2004/0S/gC.jn-fDP79T00975A017100010001-0
 Approved For Release 2004/~WRCLAfRDP79T00975A017100010001-0
West Germany - USSR: The two countries are
following up their recent treaty signature with
technical, economic, and political contacts.
West German Minister of Economics Schiller is
planning a short visit to Moscow, to begin on 24
September. He will probably discuss sympathetically
the projected agreement to build a truck plant for
the Soviets at Kama, although the actual negotiations
are principally between Daimler-Benz and the Soviets.
The Soviet Minister of Automobile Industry, A.M.
Tarasov, intends in the near future to lead a delega-
tion to visit the Daimler-Benz plant near Stuttgart.
Following a scientific-technical agreement con-
cluded at the time of the signature of the West
German - Soviet treaty, Bonn's Minister of Science
Leussink will visit Soviet scientific and nuclear
energy facilities from 17 to 29 September. A top
Soviet nuclear energy official is to return this
visit.
Yuri Zhukov, an authoritative Soviet commen-
tator, will lecture in Bonn and Munich during a ten-
day trip in late September. Zhukov is a member of
the Supreme Soviet and will doubtless try to use his
position to facilitate wide contacts with West German
parliamentarians.
Expectations of a possible commercial agreement
between Bonn and Moscow are spurring other European
Community countries to seek: bilateral agreements with
the Soviets. Belgian officials state that Benelux
will send a delegation to Moscow in October "to pro-
tect its own interests." They note that the compe-
tition for bilateral agreements may create diffi-
culties in the next few years for the development of
a common Community commercial policy toward Eastern
Europe. As one official points out, however, East-
West trade will still be inhibited by the difficulty
of finding markets for Eastern products in Western
Europe.
4 Sep 70
Central Intelligence Bulletin 4
Approved For Release 2004//~ CffDP79T00975A017100010001-0
 25X1 Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0
Next 1 Page(s) In Document Exempt
Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0
 Approved For Release 2004/05HC1tU&--DP79T00975A017100010001-0
India: Prime Minister Gandhi has again demon-
strated her ability to secure support when needed
from non-Congress groups in parliament.
On 2 September, she was able to obtain the re-
quired two-thirds majority in the lower house for a
bill divesting India's former princely rulers of
their constitutionally guaranteed privileges and
monetary subsidies. She had threatened to dissolve
parliament and call new elections if she lost. To
become law, the bill must still be passed by the
upper house but the measure has popular appeal and
is expected to be approved within a few days.
Mrs. Gandhi's ruling Congress Party, although
it has only a minority in both houses of parliament,
was in little real danger of being brought down dur-
ing the current parliamentary session, which is sched-
uled to recess this month. She had been finding it
increasingly difficult, however, to keep her diverse
collection of non-Congress supporters with her. The
issue of abolishing the princes' privileges gave her
a good opportunity to reinforce her image as the
champion of economic and social justice. Moreover,
it tended to strengthen her position by bringing in
to her camp politicians who wished to identify them-
selves with "progressive" goals while tarring with
a "reactionary" brush those who refused to back her.
Mrs. Gandhi is likely to get an indication of
the success of this "polarization" strategy on 17
September when local elections are held in the
southwestern state of Kerala, where she intends to
campaign actively. Leaders of the other political
parties, however, will resist having their identities
submerged beneath Mrs. Gandhi's popularity. With
the approach of national elections, which must take
place by February 1972, these leaders probably will
try harder to project an independent image. Forth-
coming parliamentary sessions, therefore, are likely
to be acrimonious and even more difficult for Mrs.
Gandhi's minority government.
4 Sep 70
Central Intelligence Bulletin
25X1
Approved For Release 2004/tjDP79T00975A017100010001-0
 Approved For Release 2004/09VQ."-fDP79T00975A017100010001-0
Ceylon: A trade delegation is scheduled to
visit several Communist countries in a quest for in-
creased trade and aid.
In Peking, the delegation is expected to wrap
up an agreement for a long-term, interest-free loan
to finance the purchase of 100,000 tons of rice.
Ceylon's rice imports will rise substantially as the
new Bandaranaike government begins this month to
implement a campaign pledge to double the weekly
rice ration. Under a barter agreement concluded in
late 1969, Colombo already is importing 200,000 tons
of Chinese rice annually.
At the next stop in North Korea, the group re-
portedly will seek to exchange Ceylonese rubber and
coconut for iron, steel, and chemicals. At present,
the two countries have no trade agreement. Recent
unspecified Korean aid offers also will. be discussed.
In addition, the delegation will seek a liberal
short-term credit to finance commodity purchases in
the USSR. Ceylon intends to request a hard currency
loan. Moscow undoubtedly will refuse this sort of
assistance but probably will provide some credits.
4 Sep 70
Central Intelligence Bulletin
Approved For Release 2004/0 t ETDP79T00975A017100010001-0
 Approved For Release 20041bkGR(biDP79T00975AO17100010001-0
Cambodia: Government forces reportedly have
reoccupiedthe town of Srang, southwest of Phnom
Penh, after five days of fighting. They encoun-
tered only light resistance, as the main body of
Communist troops apparently retreated before their
arrival. There is no new information on the situa-
tion at Tram Khnar, east of Srang, which has been
under heavy enemy pressure. A government sweep in
eastern Kampot Province, where large numbers of en-
emy troops reportedly are operating, netted ten
prisoners.
USSR-Indonesia: Moscow agreed "in principle"
to consider extending new economic aid during re-
cent negotiations in which Indonesia's approximately
$800 million debt to the USSR was rescheduled. A
Soviet mission will travel to Djakarta next month,
according to an Indonesian press release. They will
explore resumption of assistance to complete eco-
nomic projects--including a steel mill, a fertilizer
factory, and an atomic energy reactor--suspended
following the Indonesian cou of 1965, and to con-
sider other economic aid.
Chile: Marxist presidential candidate Salvador
Allen e has set the stage for violence after the
election today. Allende told a rally of more than
200,000 people on 2 September that although he was
confident that the armed forces would respect his
victory, he was "reserving the right on the evening
of 4 September to call the people to defend their
legitimate majority." The Communist and Socialist
parties will have members standing by for possible
demonstrations when the polls close at 4:00 this
afternoon. Some extremist Socialists and other ter-
rorists reportedly plan to unleash a campaign of
violence a vocation in the event Allende is
defeated. 1 -71
(continued)
4 Sep 70 Central Intelligence Bulletin 9
25X1
Approved For Release 2004/ftl" ISE t DP79T00975A017100010001-0
 Approved For Release 2004/1C:DP79T00975A017100010001-0
25X1
Ivory Coast: The cornerstone of a $2-billion
"African Riviera" development in the Ivory Coast
will be laid on 8 September by President Houphouet-
Eoigny. The complex will include light industry,
hotels, casinos, and housing for 120,000 people and
is expected to be built over a 15-year period. In-
ternationally known financiers, including the Roths-
childs, Swiss and German bankers, Israeli officials,
and American businessmen will attend. Financing re-
portedly is in sight for the $50-million first phase
of the project, which is one of the most ambitious
ever undertaken on the African continent.
4 Sep 70 Central Intelligence Bulletin 10
25X1
Approved For Release 2004 ,.` ft_RDP79T00975A017100010001-0
 25X1 Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0
Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0
 $eeroved For Release 2004/03/16: CIA-RDP79T00975A017100010001-0
Secret
Approved For Release 2004/03/16 : CIA-RDP79T00975A017100010001-0