CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A019200030001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 17
• Document Creation Date: December 14, 2016
• Document Release Date: July 31, 2003
• Sequence Number: 1
• Publication Date: June 3, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
State Department review completed
N2 040
3 June 1971
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 SECRET
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No, 0132/71
3 June 1971
Central Intelligence Bulletin
CONTENTS
CAMBODIA: The Communists are threatening positions
nearnom Penh. (Page 1)
BRAZIL: The 200-mile territorial seas claim.
Page 2)
CHILE-USSR: Soviet mining delegation. (Page 4)
JORDAN: Husayn is threatening further moves against
tie fedayeen. (Page 5)
MALAGASY REPUBLIC: President Tsiranana has arrested
is vice president. (Page 6)
USSR: Decree on a successful grain harvest. (Page 7)
NATO: Differences over how to react to recent So-
viet overtures e (Page 8)
ITALY: Parliamentary debate over a housing reform
b IIO (Page 10)
CHILE-BELGIUM: Chilean foreign currency holdings
Page 1l)
COLOMBIA: Cabinet resignations (Page 11)
CONGO (BRAZZAVILLE): Coup attempt (Page 12)
TUNISIA: President's return (Page 12)
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Phnom Penh Area
I:
PHNOM PENH
Karong Chamlang
V &ar;Suor
I f ampong Amp l
P er
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CAMBODIA: The Communists are continuing to
threaten government positions near Phnom Penh.
During the past few days, enemy forces have
carried out several sharp mortar and ground attacks
on Cambodian positions some 10 to 15 miles northeast
of the capital east of the Mekong River. Government
troops, including several elite Khmer Krom units cur-
rently engaged in clearing operations in this area,
have managed to hold their ground. Two battalions
of government reinforcements from Phnom Penh are
slowly making their way toward the embattled posi-
tions and other reinforcements apparently will be
sent shortly. The government is also waiting for
the South Vietnamese to reply to a request for as-
sistance.
Cumulative casualty reports indicate that thus
far 20 Cambodians have been killed and another 200
wounded. The Communists reportedly have suffered
heavy losses from air strikes. The Communist at-
tacks are the sharpest actions since early April,
when the enemy struck hard at government units along
Route 4.
The Communists' objectives in the current ac-
tions are not yet clear. It is possible that they
are trying to provide a screen for an infiltration
route from the north that conceivably could be
opened once the area between the Mekong River and
Prey Veng town becomes .inundated. This is the
closest to the capital any major Vietnamese Commu-
nist forces are known to have been since the war
began, but it is too early to determine whether
these developments are related to any impending ac-
tion near the capital itself.
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BRAZIL: The government apparently has begun
enforcing the fishing provisions of its 200-mile
territorial seas claim.
According to US fishing industry sources, on
1 June Brazilian officials boarded a US shrimp boat
operating 60 miles off the coast and warned the
crew to leave the area or face a penalty of five
years in prison. Foreign Minister Gibson recently
stated that strong public opinion in favor of the
200-mile claim, issued in March 1970, obliged the
government to enforce firmly the fishing regulations
starting on 1 June. He said that Brazil was ready
to discuss with other countries the possibility of
giving their boats permission to work in specified
areas within the 200-mile limit, but that the claim
of sovereignty itself was not negotiable.
The fishing provisions, published by the Medici
government in April 1971, divide the claimed area
into two zones. The first extends 100 miles out
from the coast, and the second covers the remaining
100 miles. Only Brazilian ships or foreign ships
leased to firms with a majority Brazilian interest
can operate within the first zone. Other nations'
ships that pay a registration fee and an operation
tax will be allowed to fish in the outer zone. One
regulation, however, totally bans foreign firms from
fishing for crustaceans--mainly shrimp and lobster--
as part of Brazil's claim to all resources on the
ocean floor. This regulation apparently is designed
to force firms to join with Brazilian companies if
they want to continue operating in the area.
Approximately 250-500 foreign boats, of which
about half are US-owned, usually work in the rich
beds off Brazil's northern coast. Some of the
owners claim that Brazil's regulations will make
it impossible for them to remain, and that this in
turn will adversely affect the economies of Carib-
bean countries such as Surinam and Trinidad and
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Tobago, in which the ships are based and processing
plants are located. Some governments already have
indicated to the .Medici administration that they
desire to initiate bilateral negotiations on the
fishing problem
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CHILE-USSR: A Soviet delegation led by a vice
minister of nonferrous metallurgy has arrived in
Santiago to help resolve technical problems at the
large Chilean copper mines.
Although copper production shortfalls have been
a major concern of the government, a Chilean official
said that the Soviet delegation had not come because
of an emergency. He announced that it would provide
technical assistance to "expand and rationalize"
copper production, charging that the technology and
administration made available by the US copper com-
panies was inferior.
The official also mentioned a Soviet-Chilean
"agreement in principle" to exchange small delega-
tions of high-level mining specialists. Under this
accord, the Soviet group would help to complete de-
signs for equipment to be used in converting the
workshop at the El Teniente mining complex into a
production center of spare parts and equipment for
all the large Chilean copper mines. The government
recently appointed overseers at El Teniente, which
is partially owned by the Kennecott Company.
The text of the economic agreements signed with
the USSR last week states that the unused $15-million
credit to Chile for machinery and equipment was raised
to $55 million. This amount is in addition to $42
million for industrial development projects, also
extended in 1967 and previously unused. Part of this
project assistance will be utilized to build a lubri-
cants plant and a housing construction combine as
well as for a feasibility study of a fishing port.
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JORDAN: King Husayn, accusing the fedayeen of
trying to establish their own independent state,
is threatening to take further moves against them.
The King may intend to continue the operations
against fedayeen positions--both in northwest Jor-
dan and in Amman--begun last weekend. Yesterday,
he ordered Prime Minister Tal to take "bold, deci-
sive, and tough action" against the "handful" of
"professional criminals and conspirators" who he
claims are exploiting the commando movement to
disguise their "treasonable" activity. By direct-
ing his criticism against a small number of "trai-
tors" rather than against the commandos as a whole,
the King presumably hopes to avoid charges that he
is out to liquidate the fedayeen movement.
As of yesterday, the fighting that began last
weekend had all but died down. Fedayeen radio-
broadcasts indicate that some fighting broke out
in the north on the evening of 1 June and was still
continuing yesterday, but Amman itself is appar-
ently quiet.
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MALAGASY REPUBLIC: President Tsiranana has
arrested Vice President Andre Resampa on charges of
plotting against the government.
Tsiranana has accused Resampa of conniving
with a foreign government that has "colossal eco-
nomic potential." The President did not name the
government, but he made it clear that he was re-
ferring to the US. Earlier this year, the emotional
Tsiranana seemed to believe that Resampa was not
only benefiting financially from a commercial proj-
ect backed in part by private US interests, but that
the business possibly was being used as a cover to
smuggle arms to Resampa and his followers.
The arrest marks the latest step in the polit-
ical decline of Resampa, Tsiranana's one-time heir-
apparent, who fell into disfavor early this year
when the President became convinced of his disloy-
alty. Tsiranana has gradually stripped away much
of Resampa's authority in the government and in the
ruling Social Democratic Party. Resampa appeared
to have accepted his pas
his many followers may n
t downgrading
ow be unable
quietly,
to counter
and
the
latest government move.
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USSR: Soviet intentions to ensure a substantial
level of grain production this year are indicated by
the reissuance of a party/state decree authorizing
the use of additional manpower and vehicles for the
harvest.
Although this year's crops are generally off
to a good start, the intent of the decree is to
bolster efforts on the part of those responsible
for the harvest. A similar decree was first issued
following the hard winter of 1969 and reissued last
year.
The effective period of the decree has been
lengthened to June-September, in contrast to the
June-August period covered in prior decrees. This
longer period encompasses the harvesting season more
completely. There also may be high-level concern
about the late spring this year, which is expected
to delay the harvest. Although it is early, the
harvesting season may be more difficult than last
year. The temporary diversion of resources to agri-
culture probably will not greatly hinder other sec-
tors of the economy.
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NATO: The-foreign ministers, in meetings today
and tomorrow, will have to narrow substantial dif-
ferences among them on how to deal with the current
Soviet posture on East-West questions.
The allies realize that they will have to react
favorably to the recent Soviet overtures on mutual
and balanced force reductions (MBFR). Canada has
been urging as forthcoming a response as possible,
but the US proposal for an early meeting of the al-
lied deputy foreign ministers to discuss NATO's ap-
proach has met with a mixed European reaction. The
West Germans apparently will support the US proposal;
the Italians and the Dutch, however, have misgivings
about US "haste" in following up the recent Soviet
suggestions.
The Italians say that they and other allies,
particularly the French, are worried that unless
NATO is very cautious, domestic pressures in the US
and in Europe combined with the appearance of prog-
ress in SALT and the Berlin talks could force the
West into multilateral MBFR talks before it was
ready. The European allies are also apparently con-
cerned that the current trend of the force reductions
dialogue could lead to largely bilateral negotiations
between Washington and Moscow.
The allies probably will reaffirm their desire
for a Berlin agreement prior to joining in multi-
lateral preparations for a Conference on European
Security (CES).
Most allies already
favor dropping the requirement agreed to last Decem-
ber for progress in "other ongoing talks" prior to
CES preparations.
(continued)
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However these issues are handled in Lisbon, the
impact of the Soviet overtures and domestic pres-
sures in the US appear to have jarred some of the
allies into consideration of how Europe would get
along with a reduced American presence. The minis-
terial, therefore, may be a more general review of
the state of the alliance than had earlier seemed
likely.
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ITALY: Parliamentary discussions on a housing
reform bill have strained relations among the gov-
ernment parties at a time when off-year elections
are imminent.
The Christian Democrats generally favor the
bill, but have been unable to maintain party disci-
pline. Similarly, some Social Democrats oppose the
measure. These two parties, as well as the Social-
ists who favor the bill, however, appear determined
to avoid a government crisis over the issue when the
bill goes to the Senate for final approval after the
elections of 13 June.
Meanwhile, faced with widespread economic dif-
ficulties, the government has passed an emergency
bill to aid housing. The emergency legislation in-
cludes several less controversial provisions from
the housing reform bill such as interest rate sub-
sidies for private housing mortgages. The bill
also provides simplified authorization and expendi-
ture procedures for construction of new schools,
hospitals, and other public works.
Investment in construction, particularly in
residential housing, declined last year, and the
slump continued in the first five months of 1971.
The construction recession, which already has some
secondary effects on related industries, is partic-
ularly worrisome at present because industrial out-
put growth in general has been slack.
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NOTES
CHILE-BELGIUM: Chile apparently is negotia-
ting the transfer to Belgium of all Chilean foreign
currency holdings abroad. The bulk of Chile's for-
eign currency holdings traditionally has been de-
posited in US banks. Chile may be planning to move
its reserves because it fears a possible confronta-
tion over the impending complete nationalization
of US-owned copper companies.
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COLOMBIA: The resignation of the 12 civilian
cabinet members--representing all ministries ex-
cept defense--is the culmination of profound divi-
sions in the National Front's Liberal and Conserva-
tive parties. Under the Front system, the Liberals
and Conservatives alternate in the presidency and
divide between themselves 12 of the 13 cabinet
posts. The parties' divisions leave Conservative
President Misael Pastrana with four major political
currents to choose from in constituting a new cab-
inet, rather than the usual two. He is likely to
resort to some kind of stopgap cabinet, however,
until after the Conservative Party convention in
November.
(continued)
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CONGO (BRAZZAVILLE): Tension is running high
again in t e capita o lowing President Ngouabi's
thwarting of an apparent coup attempt by a group of
paracommandos last week. Troops loyal to Ngouabi
reportedly intercepted the paracommandos as they
were deploying to seize Radio Brazzaville.
TUNISIA: President Bourguiba, who has been
under m eccTical treatment in Switzerland since early
this year, has informed Prime Minister Nouira that
he will return to Tunisia. on 19 June. His doctors
apparently consented to his return on the condition
that he avoid overexertion. It remains to be seen,
however, whether Bourguiba will in fact remain aloof
from routine governmental decisions, although he con-
tinues to express confidence in NouiraTs stewardship.
The President's return may presage some changes
within the government and may also accelerate the
jockeying for position within the ruling Destourian
Socialist Party in anticipation of a party congress
set for October.
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