Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 14, 2016
Document Release Date: 
May 6, 2003
Sequence Number: 
Case Number: 
Publication Date: 
March 11, 1971
Content Type: 
PDF icon CIA-RDP79T00975A018500030001-3.pdf592.47 KB
Approved For Release 2003/05/19 : CIA-RDP79T00975A01850003cS et DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin Secret N2 40 11 March 1971 Approved For Release 2003/05/19 : CIA-RDP79T00975AO18500030001-3 25X1 25X1 Approved For Release 2003/05/19 : CIA-RDP79T00975AO18500030001-3 Approved For Release 2003/05/19 : CIA-RDP79T00975AO18500030001-3 Approved For Release 2003/05/1 P14 f 79T00975A018500030001-3 No. 0060/71 11 March 1971 Central Intelligence Bulletin CONTENTS ARGENTINA: Resignations could threaten President Levingston's position. (Page 1) URUGUAY: The Tupamaros' kidnaping of the attorney general was a counterattack on the administration. (Page 2) NORWAY: The Labor Party leader is to form a minor- ity government. (Page 3) INDIA: Mrs. Gandhi has the assurance of parliamentary support. (Page 5) CEYLON: New attacks on US personnel and property may be imminent. (Page 6) JAPAN: The Communist Party is taking a somewhat more flexible attitude toward Moscow. (Page 7) GUINEA: The development of the bauxite industry has been adversely affected. (Page 8) EGYPT-USSR: Economic delegation (Page 9) USSR: Gold sales (Page 9) BRAZIL: 200-mile territorial sea claim (Page 10) JAPAN: West European textile trade (Page 10) TURKEY: Military intervention (Page 11) CHILE - EAST GERMANY: Diplomatic relations (Page 11) Approved For Release 2003/05/195 2`9T00975A018500030001-3 Approved For Release 2003/05/1 XUM 79T00975A018500030001-3 ARGENTINA: Recent government resignations could threaten President Levingston's position. The resignation on 8 March of Hugo Taboada, the undersecretary for political affairs in the Interior Ministry, is the latest in a series of dismissals and resignations of high-level and popular officials in the past month. Taboada cited disagreement with Levingston's handling of affairs in Cordoba, particularly the naming of an unpopular replacement for the popular Cordoba governor who resigned last month over a budgetary dispute with Levingston. The effect of these continuing changes in the government is to create a public image of a president faced with growing strains within the country as well as serious political problems. This picture gives credibility to the rumors of a power struggle between Levingston and army com- mander Lanusse. Compounding the growing uncer- tainty in the country is the deteriorating economic situation, which has prompted the government to announce new price controls and a ceiling on wage raises currently being negotiated. General Lanusse reiterated his support for Levingston in a speech on 2 March, but the prob- lems caused by the new economic controls and the government changes could cause him to re-examine this position. The military cannot tolerate a serious breakdown of social order, and fear that this may be in the offing could bring increasing pressure on Lanusse to take corrective action. Any decision on this matter, however, would prob- ably await the return from the US next Sunday of Air Force commander Rey, a member of the three- man junta that named Levingston president last June. Central Intelligence Bulletin 25X1 Approved For Release 2003/05/1~F&Ib'79T00975A018500030001-3 Approved For Release 2003/05/19SEtE-1V9T00975A018500030001-3 URUGUAY: The Tupamaros' kidnaping of the coun- try's attorney general yesterday was a direct coun- terattack on the Pacheco administration. The terrorists have recently freed two kidnap victims after failing to gain any concessions from the government. Administration officials hoped that government operations might soon lead to the release of British Ambassador Jackson, kidnaped in January. The police, especially while operating under the emergency security measures imposed immediately after the abduction of Jackson, have been able to apprehend terrorists and uncover planned operations. On 9 March, the interior minister announced that a guer- rilla plan to kidnap two of the President's children had been foiled. The administration also has been pressing for more effective court action against imprisoned ter- rorists. Thus, the pickup of the nation's chief prosecuting attorney was not only a rebuttal of the administration's rising optimism but also, like sev- eral Tupamaro gambits in the past, seems intended as a warning to the judiciary and police to deal lightly with captured guerrillas. A relative of the attor- ney general was told that the prosecutor would be released today after "interrogation." The adminis- tration's response to the abduction will be to press even harder for the reimposition of tough security measures--a request the legislature has twice refused. The kidnaping, the Tupamaros' eighth,. occurred only a few days before the scheduled opening of a hemispheric trade meeting in Punta del Este and guarantees the terrorists another flood of public- ity. The slap at the government also occurs as a movement to amend the constitution and allow Pacheco to run for a second term is gathering some strength. If Pacheco persists in a re-election bid, the possi- bility increases that the terrorists will use kid- napings to attempt to embarrass the government and discredit the President's hard-line approach. I Central Intelligence Bulletin 25X1 Approved For Release 2003/05/1 95 1 . BPl79T00975A018500030001-3 Approved For Release 2003/05/19 : ! '' 00975A018500030001-3 NORWAY: Labor Party leader Trygve Bratteli has been given the mandate to form a minority gov- ernment following the failure of the four center- right parties to reconstitute their coalition. Bratteli, 61, has led the Labor Party since 1965, after more than 25 years in apprenticeship as secretary and vice chairman. His prominence in the party was sufficient ground for the Nazis to imprison him in con- centration camps from 1942 to 1945. Elected to Parliament in 1949, Bratteli resigned in 1951 to become minister of finance and later minister of communications. In 1964 he resigned from the cab- inet to re-enter Parliament. The new government, whose membership will be made known on Monday, can count on only 74 of the 150 votes in Parliament. It can therefore be expected to fol- low a cautious course in its do- mestic and foreign policies. The Labor Party leadership is commit- ted to Norwegian entry into the European Communities (EC), but stiff opposition among the party's youth and left wings will oblige Bratteli to move care- fully. To conciliate these groups Bratteli may make such gestures as proposing recognition of North Vietnam, encouraging detente in Norway's relations with Eastern Europe, and adopting a more restrictive national policy in regard to the newly tapped oil fields in Norway's sector of the North Sea. A reformation of the four-party bourgeois bloc is not expected soon, because of the bitterness en- gendered by the EC accession debate and the circum- stances surrounding the fall of the Borten govern- ment. Borten's Center Party has already taken 11 Mar 71 Central Intelligence Bulletin Approved For Release 2003/05/19 :$7VT00975A018500030001-3 Approved For Release 2003/05/19 : S]'00975A018500030001-3 advantage of the breakup of the coalition to an- nounce its opposition to EC entry, a policy flatly contradicting the stand taken by the Conservative and Liberal parties. The Christian People's Party, while not openly announcing its position, is sym- pathetic to the Center view. If as few as four Labor members of Parliament decide to join the Center and Christian People's parties on this is- sue, the necessary number to block EC entry will be attained, and the Bratteli government could be toppled. 11 Mar 71 Central Intelligence Bulletin 25X1 Approved For Release 2003/05/19 : -RBI 'TT00975AO18500030001-3 Approved For Release 2003/05/1 1 9h 1 1- 9T00975A018500030001-3 I INDIA: Prime Minister Indira Gandhi's appar- ent win of a parliamentary majority has vindicated her gamble in calling national elections a year be- fore they were constitutionally required. Incomplete and unofficial electoral returns have already given the 53?-year old prime minister an impressively strong mandate to continue her of forts toward social and economic development. Mrs. Gandhi campaigned vigorously against a four-party opposition alliance whose challenge was seriously weakened by internal bickering and by its failure in numerous constituencies to back only a single candidate. To secure a majority in the lower house, Lok Sabha, Mrs. Gandhi's Ruling Congress Party needed 261 seats--an increase of 33 over the number held when Parliament was dissolved last December. Mrs. Gandhi was particulary anxious to free herself from the need for support of various minority parties-- a dependency necessitated by the split in the Con- gress Party in late 1969. She now has the assurance of parliamentary sup- port for the programs she is expected to propose for dealing with India's monumental problems. In es- sence, her campaign focused on the need for a more equitable distribution of wealth and a generally better deal for the poverty-stricken masses who com- prise the majority of India's 560 million population. Beyond this, however, she failed to outline the spe- cific programs she planned to pursue. The vote can be read as a strong vote of confi- dence by the young, the poor, and the minorities in Mrs. Gandhi's leadership. It is most significant as a personal victory for her, but it also endorses the Ruling Congress as India's only truly national party. The prospect is for a stronger, more stable central government with enhanced power to develop policies of moderate socialism at home while maintaining In- dia's traditional independent foreign policy. I 11 Mar 71 Central Intelligence Bulletin Approved For Release 2003/05/1 9cxJ Al B 9T00975A018500030001-3 Approved For Release 2003/05/19 : CIA-RDP79T00975A018500030001-3 SECRET CEYLON: New attacks against US personnel and property by dissident Communist revolutionaries may be imminent. The Ceylonese Navy, which is considered a more disciplined force than the army or police, has as- sumed responsibility for guarding some of the US property in Colombo. The Ceylonese Government, now apparently concerned over the implications for its own security, has invoked emergency powers. I 25X1 a group within the Ceylon Communist Party Peking (CCP/P) was to meet yesterday to discuss possible attacks on homes of US Embassy personnel. This group has a layout of the residence of the US ambassador, who is currently in Washington. a rebel group within the CCP/P was responsible for the attack on 6 March, but it is not clear whether the two groups are identical. Other revolutionary groups, which make up an amorphous "Che Guevarist movement" on the island, may try to stage incidents in attempts to outdo each other. 11 Mar 71 Central Intelligence Bulletin 25X1 25X1 Approved For Release 2003/05/19 gPC6k 9T00975A018500030001-3 Approved For Release 2003/05/19$1siAIFPP9T00975A018500030001-3 JAPAN: The Japan Communist Party (JCP) is taking a somewhat more flexible attitude in its re- lations with Moscow. The JCP announced that a delegation was sched- uled to depart for Moscow on 10 March to discuss the many basic ideological differences dividing the two, ending a three-year break in interparty con- tacts. At the same time, the JCP issued a sharp attack on Peking for "intolerable" meddling in in- ternal Japanese politics, and specifically for try- ing to "destroy" the JCP. This is in line with the highly independent and nationalistic course the JCP has been pursuing, which has resulted in strained relations with both Moscow and Peking but has in- creased the party's popularity at home. Moscow has invited the JCP to attend the up- coming 24th party congress, but the Japanese have reserved judgment pending the outcome of their planned preliminary talks. In view of the impor- tant domestic benefits inherent in the JCP's pres- ent independent policy, the Japanese Communists probably will be unwilling to forgo their frequent criticism of the Soviets on such issues as Japan's former northern territories. Thus, a significant improvement in relations between the JCP and Moscow Central intelligence Bulletin 25X1 Approved For Release 2003/05/1: cc -1 '79T00975A018500030001-3 Approved For Release 2003/05/1 % d9T00975A018500030001-3 GUINEA: Development of the important bauxite industry has been adversely affected by events since the Portuguese-directed attacks against Guinea last November. Progress on the new $185-million Boke bauxite project has been hampered by the government's tight- ened security measures and by its heightened suspi- cion of foreigners operating in Guinea. Guinean charges of West German complicity in the invasion led to a diplomatic break and expulsion of the Ger- man aid team, including four men who worked at Boke. Much of Boke's equipment is of German manufacture, and German technicians are needed to install it prop- erly. These developments have contributed to. low morale among foreign workers throughout the bauxite industry. President Toure regards the smooth de- velopment of Boke as crucial to Guinea's economic future and probably will take steps to correct the situation. In January he intervened personally to obtain the release of expatriate workers arrested and summarily sentenced by overzealous party mili- tants. More recently, he ordered approval of entry visas for all waiting technicians except the Germans. The general climate of suspicion remains, however, and undoubtedly will continue to cause problems be- tween Western technicians and Guinean officials. 25X1 11 Mar 71 Central Intelligence Bulletin 8 SECRET Approved For Release 2003/05/19 : CIA-RDP79T00975AO18500030001-3 Approved For Release 2003/05/19 SRi&ft[ 9T00975A018500030001-3 NOTES EGYPT-USSR: The current visit of a high-level Egyptian economic delegation to Moscow may result in the first new Soviet economic aid in almost seven years. In addition to signing the customary exten- sion of the long-term Soviet-Egyptian trade agree- ment, the Soviets may follow through on an earlier offer to support additional projects associated with the Aswan High Dam. During inauguration ceremonies in January the USSR.offered to provide technical as- sistance for and the foreign exchange costs of a rural electrification program using power from Aswan. Moscow also offered aid for reclamation of an addi- tional 100,000 acres of land using water stored in Lake Nasir, the Aswan reservoir. According to press reports, the delegation also will discuss various in- dustrial projects with the Soviets. USSR: Moscow has recently been selling to million of gold per week in Basel. Although the reason for these small sales is not clear, they will offset the re- cent decline in hard currency earnings from sales of diamonds and platinum. By selling gold in these quantities, the Soviets have not disturbed the price of gold on the free market, which in recent weeks has been more than ten percent above the official price of $35 per ounce. It is unlikely that Moscow intends to resume substantial sales like those that last took place in 1966. Since that time Moscow has made sporadic sales of the same magnitude as the re- 25X1 25X1 25X1 cent transactions. (continued) Central Intelligence Bulletin Approved For Release 2003/05/19' 4Fi4MP79T00975A018500030001-3 Approved For Release 2003/05/19 : CIA-RDP79T00975AO18500030001-3 SECRET BRAZIL: The government is preparing to imple- ment its year-old claim to a 200-mile territorial sea. A Foreign Ministry official has confirmed that a decree regulating fishing rights in the claimed area has been completed and sent to President Medici for his approval. The decree would reserve some areas basically for Brazilian fishing boats, although limited fishing in these areas would be permitted to countries willing to negotiate special arrangements with Brazil. It would open other areas to foreign fishermen who purchase relatively low-cost licenses. The official stated that Brazil hopes to avoid fric- tion with countries not recognizing broad territorial waters claims. A formula is being sought whereby the governments of those countries that decided to nego- tiate fishing rights could reserve their positions on the territorial seas issue. JAPAN: Several West European countries, in- cluding West Germany, France, and the UK, have asked Tokyo to hold talks on textile trade problems, ac- cording to press accounts from Japanese Government sources. These countries, relieved that Japan has offered to resolve the textile impasse with the US, are concerned that Japan's unilateral restraints on textile exports to the US will cause increased flows of textiles into Western Europe. They probably are anxious to receive similar guarantees. In the past several years, Japan's textile exports to Western Europe have been only about one third as large as those to the US, which amounted to $600 million last year. Tokyo reportedly is reacting cautiously to these requests and probably will defer action until its program with the US begins. (continued) Central Intelligence Bulletin 25X1 25X1 SECRET Approved For Release 2003/05/19 : CIA-RDP79T00975AO18500030001-3 Approved For Release 2003/05 9 A-'RDP79T00975A018500030001-3 C TURKEY: The military high command may inter- vene in the deteriorating political situation either directly or behind a facade of civilian rule, pos- sibly within the next 24 hours. There is no longer any question of whether the military will intervene, but merely what form the intervention will take The deci- sion on what specific measures the armed forces should take was to be made at a meeting of the Com- mand Council of the Armed Forces in Ankara vester- day. CHILE - EAST GERMANY: The Allende government reportedly will establish diplomatic relations with East Germany within a week. A high-ranking Chilean delegation now attending the Leipzig Trade Fair will sign the agreement, and a leader of the pro-Moscow Chilean Communist Party will. be sador to Pankow Presi- dent Allende lacceded to domestic and East German pressure to advance the date of recognition because he believes that his non-Communist emissary currently in Bonn can reassure West German officials 11 Mar 71 Central Intelligence Bulletin 11 25X1 25X1 Approved For Release 2003/0?-RDP79T00975A018500030001-3 Sec roved For Release 2003/05/19: CIA-RDP79T00975AO18500030001-3 Secret Approved For Release 2003/05/19 : CIA-RDP79T00975AO18500030001-3