CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A019400080002-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 14, 2016
• Document Release Date: April 16, 2003
• Sequence Number: 2
• Publication Date: July 2, 1971
• Content Type: REPORT

Approved For Release 2003/05/19 : CIA-RDP79T00975A019400080002-7
DIRECTORATE OF
INTELLIGENCE
Top Secret
Central Intelligence Bulletin
Top Secret
c 196
2 July 1971
I I 0975A019400080002-7
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2 July 1971
Central Intelligence Bulletin
CONTENTS
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SOUTHEAST ASIA: Heroin production. (Page 4)
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PANAMA: Tough position on canal treaty negotia-
tions. . (Page 9)
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SOUTHEAST ASIA: Eight new refineries exclu-
sively producing pure white heroin have gone into
operation in the Thailand-Burma-Laos border region
since the beginning of this year
Production of pure white heroin in the border
region had reached at least 7.5 metric tons by the
end of May. This figure does not include produc-
tion from the refineries that were in existence
prior to 1971. The flurry of refinery construction
apparently reflects the increased demand generated
by US servicemen in South Vietnam. The haste with
which some of the new refineries were put into oper-
ation, as well as a shortage of experienced chem-
ists, reportedly has led to quality control prob-
lems. Some initial output, judged unsuitable for
export, has been dumped in local markets.
Accelerated shipments of raw opium out of north-
east Burma into the triborder refining area also re-
flect expectations of local narcotics traffickers
that the demand for heroin is increasing. They also
reflect efforts to build up stocks in anticipation
of US pressure to suppress the trade. By the end of
June, about 300 tons of opium had been delivered to
the triborder area compared with a known total of
123 tons for all of 1970.
2 Jul 71 Central Intelligence Bulletin 4
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PANAMA: A Panamanian negotiator has reportedly
evinced pessimism. about the success of canal treaty
negotiations with. the US.
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the Panamanian policy was one of "all or
nothing- and II if the US did not accept Panama-
nian demands t e negotiators would return home with-
out a treaty.
The adoption of such an approach was partly
authenticated by the Panamanian negotiators' state-
ments at their press conference before leaving for
the US. They said that their paramount objective
was the reacquisition of jurisdiction over the Canal
Zone and emphasized that if the US would not cede
jurisdiction there would be no treaty.
Torrijos may believe that the mere threat of
breaking off negotiations will prompt the US to
make greater concessions? He may also think that
a well-publicized confrontation with the US would
ultimately yield more than quiet diplomacy. If ne-
gotiations are actually broken off, Torrijos would
attempt to arouse anti-US sentiment in Panama and
might dramatically announce Panama's unilateral re-
nunciation of the 1903 treaty. In addition, he
might seek to bring the Panamanian case before the
2 Jul 71 Central Intelligence Bulletin
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Top Secret
Top Secret
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