CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A018900040001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: December 14, 2016
• Document Release Date: May 2, 2003
• Sequence Number: 1
• Publication Date: April 28, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N2 040
28 April 1971
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No. 0101/71
28 April 1971
Central Intelligence Bulletin
CONTENTS
SOUTH KOREA: President Pak's re-election (Page 1)
SOUTH VIETNAM: Thieu's policy on income tax stirs
opposition (Page 2)
INDIA-PAKISTAN: Increasingly serious border inci-
dents Page 3)
ISRAEL: Coastal patrol capability (Page 5)
SOUTH VIETNAM: Spring campaign (Page 7)
MALAYSIA-SINGAPORE: Relations (Page 7)
CHILE - EAST GERMANY: Economic mission from Pankow
(Page 8)
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C SOUTH KOREA: President Pak Chong-hui's elec-
tion victory yesterday assures a continuation of
strong central leadership with emphasis on economic
development.
position victory. Throughout the campaign the
gov-
ernment encouraged the belief that the military
would not accept Kim as president. Pak, in
his last acts of the campaign, took to the
decry the opposition's unfitness to govern
one
air
and
of
to
omi-
nously warn that "the ruling party for its
part
is_
not prepared to turn over power."
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The President led his popular opponent Kim Tae-
chung by about 1,300,000 votes, according to nearly
complete returns. Despite early indications of a
close race, Kim carried only Seoul, a traditional
opposition stronghold, and his home region, the
country's populous southwestern ride-basket. Never-
theless, persistent public suspicion of government
vote-tampering is likely to produce opposition
charges of fraud, raising the prospect of renewed
and possibly more violent student protest.
The relatively low voter turnout, an estimated
80 percent of those eligible compared with about 85
percent in the last two presidential elections, sug-
gests a growing weariness with Pak's leadership.
Some voters may have chosen to show opposition to
the administration by abstaining and thus avoid the
instability they may have feared would follow an op-
28 Apr, 71 Central Intelligence Bulletin 1
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SOUTH VIETNAM: President Thieu's political
decision to exempt civil servants and the military
from the income tax has stirred unexpectedly strong
opposition.
Labor unions and employees in the private sec-
tor have been complaining since Thieu announced his
decision in February. Last Saturday some workers
in Saigon staged a one-day sitdown strike to demand
that they too be exempted from paying income tax.
I his action
was a political measure designed to ensure the sup-
port of the bureaucracy and the army--groups which
had been hit hard by inflation--in the election next
October. He had not anticipated such a strong re-
action from the private sector, however. 25X1
strikes
by private sector employees over the tax issue could
gain substantial public support.
The income tax has provided only a small per-
centage of government revenues in the past, and
exempting government employees alone would not have
much of an effect on revenues. Because domestic
tax reform measures had been planned to increase
such revenues and to place the tax burden more
heavily on the rich, a decision to abolish the tax
across the board would be a setback to any movement
for reform.
Government officials have met with representa-
tives of the workers and told them that the tax
issue is scheduled for debate in the National As-
sembly. The government reportedly hopes that pro-
tests can be calmed and that the passage of tax
legislation can be delayed until after the presi-
dential election. If the strikes continue, how-
ever, Thieu might again decide that political con-
siderations outweigh economic factors and take
28 Apr 71
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INDIA-PAKISTAN: C Incidents along the India -
East Pakistan border appear to be increasing in se-
riousness.
Yesterday, according to Indian press sources,
Pakistani troops raided two Indian villages. In one
they killed five persons; in another--an enclave
surrounded by Pakistani territory--25 Indians died.
Pakistan has not yet released its version of the in-
cidents.
Usually the two countries' reports of such
clashes have largely agreed on the seriousness of
the incidents, although each always tries to place
all blame on the other. The two latest clashes
could have resulted from overzealous Pakistani pur-
suit of refugees crossing into India, or from Indian
infiltration into Pakistan. The Pakistanis claim
to have wiped out a band of infiltrators--and cap-
tured two of them--in another part of East Pakistan. ,
The influx of refugees from East Pakistan is
also contributing to the strains in Indo-Pakistani
relations. According to official Indian estimates,
over 600,000 East Bengalis--about half of them Hin-
dus--are now in India. Indian officials are pri-
marily concerned that resources will be overtaxed
in coping with problems of disease, food, and housing,
and they hope for international help. There is some
official Indian concern that the refugees will be
exploited by leftist extremists, or that violence
may break out between Hindu refugees and local and
refugee Moslems.
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Israeli
"Swift" Patrol Boat
Length ............... 60 feet
Maximum speed ........ 20 knots
Crew ................ 8
Armament ............ 3 twin 50-caliber
machine guns
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ISRAEL: The Israeli Navy continues to expand
its coastal patrol capability.
Israel recently received the last two of ten
Swift patrol boats purchased in the US. Six of the
60-foot boats are expected to remain in the Mediter-
ranean and the other four are to patrol the Gulf of
Aqaba and the Red Sea. Recently, two of the boats
assigned to the Navy's Southern Command were seen
being transported by truck to the port at Elat.
The Israelis reportedly also have negotiated
a deal with the Swift Company for a joint venture
that calls for the fitting out in Israel of larger
Swift boats produced in the US. These boats are to
be equipped with gas turbine engines manufactured
in Israel and armed with two Gabriel missiles as
well as smaller weapons. In addition to increasing
Israel's naval inventory, some of these boats will
probably be sold to other countries.
Several years ago, the :Esraelis purchased 12
small Bertram boats from a Florida shipyard. These
31-foot fiberglass pleasure boats were converted by
the Israelis into patrol craft for coastal surveil-
lance, but they are often down for maintenance. The
Swift boats, on the other hand, are built to US Navy
specifications and will give the Israelis both a
neater patrol capability and improved service.
I (Map/Photo)
28 Apr 71 Central Intelligence Bulletin
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epone
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NOTES
SOUTH VIETNAM: The current phase of the enemy's
spring campaign continues, but has yet to reach the
scope and intensity of the :Late March offensive. Al-
though several shellings have achieved spectacular
results--the destruction of an ammunition dump in
Qui Khan and a fuel depot in Da Nang--there have
been no large-scale ground attacks similar to the
over-running of Duc Duc and Fire Support Base Mary
Ann late last month. Furthermore, there is no sus-
tained enemy ground effort similar to the recent
action in the Dak To region of western Kontum Prov-
ince. Map)
MALAYSIA-SINGAPORE: The prospect of better re-
lations between the two countries has improved as a
result of Malaysian Deputy Prime Minister Ismail's
visit to Singapore last weekend. Full of praise for
the island state's accomplishments in public housing
and other fields, Ismail suggested that further con-
sultations on a variety of subjects would help widen
the dialogue between the two countries. Although
Ismail's trip, which was given warm coverage by the
Singapore press, is a good beginning, considerably
more spadework will be necessary before the ill will
and suspicions that have built up over the years can
be dissipated. Among bilateral problems yet to be
solved is Singapore's request for expanded water
supplies from the southern Malaysian ,state of Johore.
(continued)
28 Apr 71 Central Intelligence Bulletin 7
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CHILE EAST GERMANY: Pankow has followed up
the establishment of diplomatic relations with Chile
last month by sending a 34-man economic mission to
Santiago. The group, headed by Deputy Minister of
Economic and Technical Cooperation Kattner, will
study the development of industries related to min-
erals, fuels, and chemicals and advise on agricul-
tural matters. The East Germans also will consider
the feasibility of joint projects with the Chileans.
Although the major purpose of the visit is to en-
large Pankow's presence in Chile, a subsidiary aim
probably is to press for observer status at the
current meeting in Santiago of the UN's Economic
Commission for Latin America. For its part, Bonn
has already decided not to extend any new economic
aid to Chile.
2 8 Apr 71 Central Intelligence Bulletin
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