CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A018100080001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 14, 2016
• Document Release Date: July 15, 2003
• Sequence Number: 1
• Publication Date: January 29, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
DIA and DOS review(s) completed.
Secret
40
29 January 1971
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No. 0025/71
29 January 1971
Central Intelligence Bulletin
CAMBODIA: Government troops anticipate fresh Com-
munistattacks. (Page 1)
THAILAND: Bangkok's relations with the US are going
through another period of strain. (Page 2)
INDONESIA: A five-year military plan is being pre-
pared. (Page 4)
USSR-PHILIPPINES: Moscow wants diplomatic relations
with Manila. (Page 5)
ECUADOR: The government's OAS delegation is round-
ing up support for an anti-US resolution. (Page 6)
CHILE: Illegal land seizures by the MIR are causing
the government trouble. (Page 7)
ARGENTINA: Friction is increasing between Leving-
ston and the service commanders. (Page 8)
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PERU: Domestic investment (Page 9)
PHILIPPINES: Demonstrations (Page 9)
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COMMUNIST CHINA - LAOS: Road building (Page 11)
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CAMBODIA: Current Situation
Light enemy hauting aftcks - -ompong Seila
*Stung Chhay
Jf 4fPC,i:SOM I
Val Renh
kponQ Somf
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CAMBODIA: Fighting in the Phnom Penh area re-
mains light but government troops are anticipating
fresh Communist attacks.
Cambodian Army (FANK) forces are encountering
little enemy resistance as they continue their clear-
ing operations around the city.
In other developments, the US Embassy reports
that the airlift of diesel oil from Saigon to Phnom
Penh began yesterday. These deliveries should help
ensure the functioning of the capital's main power
and industrial facilities. The Cambodians are making
arrangements to send a convoy of tank trucks to Kom-
pong Som to load POL supplies from the refinery
there. Security conditions along Route 4 remain un-
certain, however, as light Communist harassing at-
tacks are again being reported against several gov-
ernment positions along the highway on the south
side of the Pich Nil pass
29 Jan 71 Central Intelligence Bulletin 1
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MET
THAILAND: Bangkok's relations with the US are
going tTugh another period of stress and strain.
Over the past few weeks, Thai Government lead-
ers, legislators, and journalists have voiced strong
protests over the proposed sale of PL-480 rice to
Indonesia and South Korea, arguing that the US is
dumping rice surpluses in Thailand's traditional
Asian markets and thus undermining Bangkok's eco-
nomic situation.
Foreign Minister Thanat, predictably, has been
in the forefront of those government leaders who
have criticized Washington. In a diplomatic note
of 11 January the Foreign Ministry charged the US
with responding to Thailand's "whole-hearted coopera-
tion" in Indochina with "damaging and unfriendly
treatment." Thanat also publicly accused the US of
seeking political gain from the sales at Thailand's
expense. Thanat and others, including Prime Minis-
ter Thanom, made a strong presentation concerning
this issue to Defense Secretary Laird during his re-
cent visit to Bangkok.
Rice, Thailand's chief foreign exchange earner,
has often been a source of considerable friction be-
tween Bangkok and Washington. More fuel will almost
certainly be added to the fire if US plans to resume
sales from its natural rubber stockpile become widely
known to the Thai public.
The reaction of the Thai Government to this
plan has been highly critical--rubber is its second
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most important foreign exchange earner--but the is-
sue has received only limited publicity because of
the government's concern about the adverse effect
public exposure might have on rubber prices. The
Thai have in the past relied upon Malaysia to take
the lead in dealing with the US when the natural
rubber market is threatened, but this time they have
taken their case directly to the US ambassador.
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29 Jan 71 Central Intelligence Bulletin
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E-C
INDONESIA: A five-year military plan now being
prepared calls for development of a highly mobile
internal security force and preparation for UN-
sponsored peace-keeping requirements in the Pacific
area.
According to major General Habib, Defense Min-
istry operations chief, the nation's emphasis on
economic development has necessitated a sharp cur-
tailment of military spending. Priority in planning,
therefore, is being given to reducing force levels
and to developing a small, quick reaction force ca-
pable of reinforcing territorial units.
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General Sumitro, aside from President Suharto
the most important official in Indonesia, has ap-
proved the general concept of the plan, and presum-
ably has discussed it with the President. Habib
has also described the plan to the US defense liai-
son group. He hopes the quick reaction force can
become operational by 1974 and be strengthened and
improved during the balance of the decade. Its de-
velopment, as the Indonesians conceive it, however,
will require external military assistance.
Although the Suharto government has enlarged
its area role, its preoccupation is still with do-
mestic problems. For the next few years, present
leadership will probably continue to emphasize the
chief need of strengthening the domestic economy.
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USSR-PHILIPPINES: Moscow seems increasingly
anxious to establish formal diplomatic relations
with Manila, though such a move does not yet appear
imminent.
The most recent evidence of this interest ap-
peared in a Pravda article of 27 January, which
noted approvingly Philippine President Marcos' re-
cent statement in his state of the nation address
supporting the early establishment of diplomatic
and trade ties with the "socialist" community. In
the last month or so, the Soviet central press has
on several occasions called attention to Manila's
changing attitude toward establishing ties with Mos-
cow. There have also been a number of Soviet visi-
tors to the Philippines in recent months whose chief
mission there probably was to focus favorable public
attention on the issue.
The Soviets have been seeking to establish ties
with Manila for several years as part of their ef-
fort to establish relations with countries in Asia
where they had not been active before. These efforts
have been slowed, however, by the preoccupation of
the Filipinos with their domestic problems as well
as by their innate caution.
Manila is currently considering the idea, and
it seems possible that formal relations will be es-
tablished before the year is out. Only a small,
albeit highly vocal, proportion of the populace now
favors the move, however, and Marcos will probably
try to develop more of a national consensus before
he acts.
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ECUADOR: The government's OAS delegation is
rounding p support for an anti-US resolution.
The resolution charges the US with causing
"international intranquility" and exhorts member
states to respect OAS principles and refrain from
coercive measures and threats. The 22 to 0 vote
to convoke a special meeting of foreign ministers
on Saturday overrode the US request that the dis-
pute be referred to the Inter-American Committee on
Peaceful Settlement. Consideration of that alter-
native apparently will be taken up again tomorrow.
The US Embassy in Quito comments that the gov-
ernment apparently has no interest in declaring a
truce at this time and may believe it "needs the
US less than ever." The US business community in
Ecuador is increasingly nervous over the deterio-
rating relations.
Three more tuna boats were seized Wednesday,
and the navy apparently has standing orders to cap-
ture every boat within the 200-mile limit. Seven-
teen ships have now been apprehended, fined, and
forced to take out a license.
29 Jan 71 Central Intelligence BuUetin
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CHILE: Illegal land seizures instigated by
the Movement of the Revolutionary Left (MIR) are
causing problems for President Allende's Popular
Unity coalition.
The MIR, which has recently become closely
associated with Allende but is not a member of
the coalition, is boasting of its role in the
land seizures and is using the resultant unrest
to increase its influence in the countryside.
The Communist governor of one province has been
dismissed for his association with illegal land
seizures although Communist Party policy opposes
this tactic. The position of the Radical Party
is complicated by its membership in the coalition
and its traditional constituency among the farmers.
Radical deputies have called on the party leader-
ship to prevent expropriation of farms under the
legal limit of about 200 acres. One leftist
Radical senator claims that disruptions from the
seizures have caused a serious decline in milk
production.
The government is trying to speed up the
agrarian reform process and avoid illegal seizures
by getting the farmers to sell their land volun-
tarily rather than wait for expropriation. Despite
these efforts, it seems unlikely that the MIR will
cease its activities. MIR members reportedly are
receiving key positions in the agrarian reform
corporation and can be expected to use these posts
to increase even more the organization's rural base.
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SECRET
ARGENTINA: Friction between President Levings-
ton and the service commanders is increasing.
Following a meeting with Levingston late last
week, Oscar Alende, a well known nationalist poli-
tician, charged that "foreign monopolies" were trying
to undermine the administration's nationalistic
economic policies and were involved in a plot to
divide the army and overthrow the government. He
also alleged that the monopolies were trying to
force the military to withdraw from the government
and to hold early elections so that Argentine allies
of the monopolies could return to power. Alende's
statements are significant because they were made
in the presidential offices and have received very
heavy publicity by the officially controlled com-
munications media.
officers on the staff of the air force commander
in chief cite Alende's declarations as partly re-
sponsible for the conflict between Levingston and
/the main problems
are the Alen de speec an e?g vernment's forcing
the Fiat company to rehire workers who had held
executives of the firm hostage during a wage dispute.
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PERU: Private domestic investment during 1970
fell from the 1969 level, but a slight recovery was
evident in the second half of the year. Investor
confidence was extremely low during 1970 but may be
improving because of increases in public construc-
tion, exports, and consumer demand. The slight
growth in investment during the last half of 1970
probably also indicates that the currency restric-
tions of May 1970 are forcing Peruvians to put more
of their capital in domestic operations.
PHILIPPINES: Student and labor leaders have
announced plans for demonstrations on 30 January,
the anniversary of last year's rioting in Manila
during which several students were killed. Violence
could erupt, but security authorities will probably
be able to deal quickly and harshly with an demon-
strators who try to use violent tactics. I
(continued)
29 Jan 71 Central Intelligence Bulletin
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NORTH
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COMMUNIST CHINA - LAOS: There are signs that
Chinese engineers may be preparing to resume con-
struction of Route 46 toward the Mekong. Photog-
raphy of early January indicates a buildup just
north of Muong Houn, the present terminus of the
road. Construction camps are being enlarged, new
AAA sites are being constructed, and possible radar-
directed AAA weapons are in place. So far this dry
season Chinese road builders have concentrated on
finishing Route 45,which runs northeast from Muong
Sai to Muong Khoua,and improving the surface of
Route 46 between Muong Sai and Muong Houn. Both
projects are almost finished.
29 Jan 71 Central Intelligence Bulletin
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Secret
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