CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A017900100001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 14, 2016
• Document Release Date: July 15, 2003
• Sequence Number: 1
• Publication Date: January 6, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Department review completed
Secret
40
6 January 1971
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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)
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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
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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.
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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.
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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.
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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.
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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
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