CENTRAL INTELLIGENCE BULLETIN

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79T00975A019300040003-1
Release Decision: 
RIPPUB
Original Classification: 
T
Document Page Count: 
8
Document Creation Date: 
December 14, 2016
Document Release Date: 
June 10, 2003
Sequence Number: 
3
Case Number: 
Publication Date: 
June 16, 1971
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP79T00975A019300040003-1.pdf106.03 KB
Body: 
Approved For Release 2003/08/08 : CIA-RDP79T00975A019303dret DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin State Dept. review completed Top Secret T 16 June 1971 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975A019300040003-1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Central Intelligence Bulletin CONTENTS CHILE: Foreign exchange reserves are falling rapidly. USSR - OUTER SPACE: Space liability convention 25X1 25X1 25X1 25X1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Next 7 Page(s) In Document Exempt Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 CHILE:, FOREIGN EXCHANGE RESERVES ARE FALLING RAPIDALLENDE PROBABLY WILL FACE A SEVERE BALANCE- OF-PAYMENTS CRISIS BY EARLY 1972 UNLESS POLITICALLY DIFFICULT REMEDIAL STEPS ARE TAKEN. ioF- FICIAL NET RESERVES HAVE FALLEN - CENT SINCE ALLENDE CAME INTO OFFICE, AND THE EMBASSY ESTIMATES THEY ARE LIKELY TO BE ONLY ABOUT $100 MIL- LION BY THE END OF THE YEAR. BECAUSE OF DECLINING EXPORT EARNINGS AND SHARPLY RISING IMPORTS, THE EM- BASSY IS PREDICTING A TRADE DEFICIT OF ABOUT $180 MILLION AND A CURRENT ACCOUNT DEFICIT OF ABOUT $350 MILLION IN 1971, UNLESS THERE IS A DRAMATIC AND UN- FORESEEN REINVIGORATION OF COPPER OUTPUT OR A SHARP JUMP IN WORLD COPPER PRICES. ALLENDE COULD PARTIALLY IMPROVE THE SITUATION BY TAKING POLITICALLY UNPOPULAR STEPS TO REDUCE IM- PORT DEMAND. SUCH MOVES AS CONSUMER GOODS RATIONING, CURRENCY DEVALUATION, AND REDUCED EMPHASIS ON INCOME REDISTRIBUTION ARE NOT LIKELY TO OCCUR DURING 19?11 HOWEVER, BECAUSE THEY WOULD FALL HARDEST ON THOSE GROUPS THAT PROVIDE ALLENDE WITH THE BULK OF HIS POLITICAL SUPPORT. Central Intelligence Bulletin 25X1 25X1 25X1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 NOTES 25X1 25X1 25X1 USSR - OUTER SPACE: I MOSCOW HAS ACCEPTED - BELGIAN PROPOSALS ED TO RESOLVE THE'LENGTHY IMPASSE OVER THE CONVENTION. ON LIABILITY FOR DAMAGE CAUSED BY ERRANT SPACE VEHICLES. THE COMPROMISE PROVIDES FOR AN INTERNATIONAL CLAIMS COMMISSION, BUT ITS RECOMMENDATIONS WOULD NOT BE BINDING ON THE OFFENDING PARTY. THOUGH THE LACK OF SUCH ASSURANCES MAY PROVE UNPALATABLE TO A NUMBER OF COUNTRIES, THEY ARE UNLIKELY TO BLOCK COMPLETION OF THE CONVENTION WHICH THEY HAVE STRONGLY DESIRED FOR SEVERAL YEARS. THE SOVIET MOVE WILL ENABLE IT TO POINT AGAIN TO ITS INTEREST IN REACHING AGREEMENTS WITH THE WEST 25X1 25X1 IN SENSITIVE AREAS. Central Intelligence Bulletin 25X1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1 Top Secret Top Secret Approved For Release 2003/08/08 : CIA-RDP79T00975AO19300040003-1