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December 14, 2016
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July 15, 2003
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January 6, 1971
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Approved For Release 2003/08/18: CIA-RDP79T00975A01790(swepet DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin State Department review completed Secret 40 6 January 1971 25X1 Approved For Release 2003/08/18 : CIA-RDP79T00975A017900100001-2 25X1 Approved For Release 2003/08/18 : CIA-RDP79T00975AO17900100001-2 Approved For Release 2003/08/18 : CIA-RDP79T00975AO17900100001-2 Approved For Release 2003/whfff DP79T00975A017900100001-2 No. 0005/71 6 January 1971 Central Intelligence Bulletin CONTENTS USSR: The Soviets have announced a record grain crop in 1970. (Page 1) POLAND-USSR: The new Polish leaders held their first in Moscow yesterday. (Page 2) ALGERIA: Boumediene's visit to Libya did little to end Algeria's isolation from other radical Arab states. (Page 3) HAITI: President Duvalier's recent speech rein- forced earlier indications that his son will succeed him. (Page 4) CEYLON: The take-over of foreign-owned bunkering fa ities will increase the government's foreign exchange earnings. (Page 5) CHILE - COMMUNIST CHINA: Diplomatic relations Page JAMAICA-GUYANA: Bauxite (Page 6) Approved For Release 2003/00~ kDP79T00975A017900100001-2 Approved For Release 2003/08/W.`&1 P79T00975A017900100001-2 USSR: Moscow's announcement that last year's grain crop amounted to about 185 million metric tons confirms previous claims by the leadership that 1970 would be a record year. The previous high was 171 million tons har- vested in 1966. The 1970 harvest probably will yield a net usable output of about 150 million tons, approximately 15 percent above the average level achieved in 1966-69 and ample to meet do- mestic needs and foreign commitments. So far only 38 percent of the 1970 crop has been procured by the state, compared with 44 per- cent in 1966. If no more levies are made, this should allow a further improvement in feed supplies on the farms that should temporarily alleviate the general meat shortage of the past two years. The failure to announce the record grain figure at the Supreme Soviet meeting in December was highly unusual, especially because party theoretician Suslov had publicly claimed a record in November. A fear of losing the increased resources allocated to the agricultural sector in 1971-75 could have been one of the major causes for soft-pedaling the successful harvest. 6 Jan 71 Central Intelligence Bulletin 1 25X1 SECRET Approved For Release 2003/08/18 : CIA-RDP79T00975AO17900100001-2 Approved For Release 2003/08/19E?R POLAND-USSR: The new Polish leaders held their first talks in Moscow yesterday, even as their sub- ordinates were dealing with some of the economic grievances that precipitated the change of regime in Warsaw on 20 December. A press statement issued after the Moscow meet- ing suggests that it served chiefly as a formal ex- pression of Soviet support for the new Polish lead- ership and of Warsaw's pledge to continue close co- operation with the USSR. Both Brezhnev and Kosygin conferred with Polish party leader Edward Gierek and Premier Piotr Jaroszewicz. Economic relations were almost certainly discussed; among other Soviet officials present were those in charge of economic planning and CEMA matters. On Monday, an unusual nationwide conference of party secretaries decided in Warsaw to introduce, before the end of the month, more flexibility into Gomulka's recently-adopted system of material in- centives, which was so unpopular with skilled workers. A few days earlier, the government ear- marked funds to increase family allowances and to raise earnings of workers and pensioners in the lowest income groups. Planning Commission chief Majewski has also indicated that the plan for 1971 is being revised to provide more consumer goods and increased funds for housing construction. 25X1 6 Jan 71 Central Intelligence Bulletin SECRET Approved For Release 2003/08/18 : CIA-RDP79T00975A017900100001-2 Approved For Release 2003/08/18 :,DP79T00975A017900100001-2 ALGERIA: Boumediene's visit to Libya late last mondid little to end Algeria's isolation from other radical Arab states and may even have compounded it. In a lengthy editorial that appeared shortly after the visit, Revolution Africaine, the weekly published by Algeria's only political party, the National Liberation Front, castigated the Arab "pro- gressive bloc," In essence, the authoritative pe- riodical accused---without naming--Egypt, Libya, Syria, and Sudan of a triple plot aimed at isolating Algeria, liquidating Palestinian resistance, and compromising the true unity of the Arab world. The purpose of the plot, the weekly said, was to elim- inate Algeria as a main obstacle to a peace settle- ment. The communique issued at the end of Boumediene's visit to Libya in late December implicitly confirmed, by its omissions, that the policy gap between the Algerian and Libyan leaders was unaffected by his visit. Having apparently failed to weaken Libya's allegiance to Egyptian leadership or to win Libyan understanding of Algiers' aloof position, Boumediene may have decided that the best tactic is to attack the quadripartite bloc, meanwhile emphasizing Al- geria's role as champion of the Palestinians and implacable enemy of Israel. Ever since the Libyan coup of September 1969, the Algerian leadership has taken an ambivalent view of the revolutionary regime in Tripoli. Al- giers would like to wean Libya away from Egyptian influence and induce the Libyans to play an active role in the Maghreb, where they would serve as a counterweight to Western-oriented Tunisia and Mo- rocco. At the same time, the Algerians distrust Libyan Prime Minister Qadhafi and are wary of being drawn into "pan-Arab arrangements" in which Egypt has a major voice and in which Syria is embroiled. 25X1 Central Intelligence Bulletin SECRET Approved For Release 2003/08/18 : CIA-RDP79T00975AO17900100001-2 Approved For Release 2003/08/1'S EiA`U79T00975A017900100001-2 HAITI: President Duvalier's speech on Ances- tors' Day, 2 January, reinforces earlier indica- tions that he has chosen his only son Jean-Claude to succeed him. Noting that his November illness and Jean- Claude's assumption at that time of certain offi- cial duties had prompted planning to fill the presidency should it become vacant, Duvalier said that it has long been his intention to transmit power to "the young." He said he plans to select, groom, and guide a leader capable of continuing the revolution, and that he is contemplating taking legal steps to ensure that his chosen successor cannot be prevented from taking office "when the time comes." Although Duvalier did not specifically name Jean-Claude as his political heir, his remarks as reported in the government-controlled press are clearly intended to notify politicians of his de- cision and to condition the public to accept it. 25X1 6 Jan 71 Central Intelligence Bulletin SECRET Approved For Release 2003/08/18 : CIA-RDP79T00975AO17900100001-2 SECRET Approved For Release 2003/08/18 : IA-RD 79T00975A017900100001-2 CEYLON: The recent take-over of foreign-owned bunkers g facilities will increase the government's foreign exchange earnings. The government has acted to ensure cooperation of the major oil companies, which now hold contracts with shipping companies for their fuel, by paying compensation for the assets taken over. The govern- ment'also is offering generous terms for bunkering service contracts with the oil companies. An Esso official states that a draft agreement providing Esso with substantial tax-free profits on future bunkering is advantageous to Esso. Similar agree- ments are likely to be signed with Shell and Caltex. Ship owners, however, are apprehensive about possible labor disputes and inefficient management, which are characteristic of Ceylon's state enter- prises. These concerns, coupled with recent in- creases in port charges, may cause some ships to seek alternate sources of fuel. Thus, Ceylon's an- nual earnings could be less than the $3.4 million anticipated. Central Intelligence Bulletin 25X1 SECRET Approved For Release 2003/08/18 : CIA-RDP79T00975A017900100001-2 Approved For Release 2003/08/tVgY--DP79T00975A017900100001-2 CHILE - COMMUNIST CHINA: The two countries have established diplomatic relations. According to a communique issued yesterday, relations were effective 15 December, and ambassadors are to be exchanged as soon as possible. Chile "took note" of the Communist claim to Taiwan, and Nationalist China promptly broke relations. Communist China has had a trade mission in Santiago since 1965, and North Korea opened one in November. Cuba is the only other Latin American country with diplo- matic ties to Peking. JAMAICA-GUYANA: Prime Minister Shearer and other leaders have told the US ambassador that do- mestic political pressure will force Jamaica, al- beit reluctantly, to seek majority control over the foreign-owned bauxite industry if Guyanese Prime Minister Burnham's current efforts in the same direction are successful. Guyana resumed negotiations yesterday with the Demerara Bauxite Company, a local subsidiary of the Aluminum Com- pany of Canada. Guyana is seeking 70-percent con- trol and has threatened to nationalize the indus- try unless it meets the government's terms. Ja- maica is the world's leading exporter of bauxite. US investment totals about $700 million in Jamaica and nearly $150 million in Guyana. 6 Jan '71 Central Intelligence Bulletin 25X1 25X1 SECRET Approved For Release 2003/08/18 : CIA-RDP79T00975A017900100001-2 Secretproved For Release 2003/08/18 : CIA-RDP79T00975AO17900100001-2 Secret Approved For Release 2003/08/18 : CIA-RDP79T00975AO17900100001-2