CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A019600090001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: February 19, 2004
• Sequence Number: 1
• Publication Date: July 30, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
State Department review completed
30 July 1971
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No. 0181/71
30 July 1971
Central Intelligence Bulletin
CONTENTS
CAMBODIA: Lon Nol has moved to strengthen the gov-
ern menus hand. (Page 1)
INDIA: Foreign nationals in West Bengal are being
ordered to leave. (Page 2)
AFGHANISTAN: The new cabinet is confirmed by-an
overw a ming majority. (Page 4)
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ISRAEL - OCCUPIED TERRITORIES: Program to limit ter-
rorism. (Page
6)
CHILE: Altamirano has called for the dissolution of
Congress. (Page 7)
NATO-MALTA: Payment to Malta (Page 8)
YUGOSLAVIA: Attempt to stem trade imbalance (Page 8)
COMMUNIST CHINA - CANADA: Wheat ('?age 9)
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YEMEN (ADEN) - ROMANIA - BULGARIA: Economic assist-
ance (Page 10)
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ANDEAN GROUP: Attempt to increase capital resources
(Page 10
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CAMBODIA: Lon Nol has moved quickly to
strengthen the government's hand against its critics.
On 28 July he announced the creation of a "Cen-
tral Committee for Economic Warfare" and named the
ambitious Son Ngoc Thanh as its chief. In giving
Thanh the responsibility for putting the country's
economic house in order, Lon Nol evidently hopes to
trade effectively on Thanh's reputation for incorrupt-
ibility and his high standing with groups in the Na-
?tional Assembly who have been most critical of the
government.
At the same time, Lora Nol has saddled a poten-
tial rival with one of the government's thorniest
problems. This is the most important post Thanh has
held; if the economy shows noticeable improvement
under his aegis, Thanh may improve his over-all po-
litical position.
Lon Nol may be prepared to sacrifice Deputy
Prime Minister Sok Chhong as a symbol of Lon Nol's
desire to improve the economic situation. Sok Chhang,
who has been in charge of economic affairs, was not
assigned a special role within the new committee.
He has indicated that he is considering resigning.
Lon Nol's move also raises fresh questions con-
cerning his relationship with acting government head
Sirik Matak. The latter was not present at the meet-
ing in which Lon Nol announced the new changes and,
while a change in the subordination of the military
police was described as having been "concerted" with
Sirik Matak, there was no reference to his role in
the important economic shake-up.
30 Jul 71
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VET
INDIA: The state government of West Bengal is
ordering"oreign nationals serving in the East Pak-
istani refugee areas in the state to leave as soon
as possible--preferably "within two days.-'
A letter to this effect has been sent to the
British and West German relief organizations. The
state official who signed the letter said that sim-
ilar messages are going out to all foreign organi-
zations working in the camp areas. The ban applies
not only to foreigners who have come recently in
response to the refugee situation, but to other for-
eigners, including missionaries, who were working in
the area well before the outbreak of civil war in
East Pakistan. It is unclear whether the ban will
affect UN personnel working in the refugee areas.
Although foreign "administrative" personnel
will be allowed to remain in Calcutta, they will
need permission to visit the refugee camps, and
travel permits may be difficult to obtain. On 28
July, for example, a US CARE official was denied
permission to visit refugee centers in the strate-
gically sensitive border area north of the Ganges
River.
The central government assumed direct control
of West Bengal last month, and the state government's
action presumably was taken at New Delhi's direction.
It appears to represent a further hardening of the
government's position, and may presage an extension
of the ban on foreigners in refugee areas to other
border states. Taken in conjunction with India's
refusal to permit UN personnel to be stationed along
the border with East Pakistan, it reflects New Del-
hi's sensitivity to the presence of foreign observ-
ers in an area where sizable numbers of troops are
stationed and where future military operations might
be mounted.
30 Jul 71
Central Intelligence Bulletin
(continued)
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WEY
Should West Bengal actually ban foreign and UN
personnel from the refugee areas the international
community may become less hesitant than it has been
about convening a Security Council meeting on the
South Asian crisis.
Centraa Intelligence Bulletin
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AFGHANISTAN: The recently formed cabinet
headed by Dr. Abdul Zahir was confirmed by an over-
whelming majority in the lower house of parliament
on 26 July.
The house had been debating a confidence motion
since early July but there was little doubt that
Zahir, the King's choice, would be confirmed as the
next prime minister. Zahir's predecessor, Nur Ahmad
Etemadi, resigned under parliamentary pressures in
May.
An Afghan official indicated that the King does
not expect the competent but unambitious Zahir to
provide strong leadership. He anticipates, however,
that the prime minister will serve as a figurehead
while stronger men in the cabinet carry out the King's
programs.
As Afghanistan embarks on the seventh year of
its "experiment in democracy," a sense of pessimism
and apathy pervades all levels of society. A gen-
eral lack of public confidence is fostered by the
previous administration's weak record. Parliament
will recess from 13 August to 14 October, giving
the new government a brief period to formulate pro-
grams to deal with the critical shortages of food
and animal forage brought on by one of the worst
droughts in many years. At present, there is little
evidence of urban or rural unrest, but this could
be generated quickly if food deficits are I I
not filled
before late fall.
30 Jul 71
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ISRAEL - OCCUPIED TERRITORIES: Israel has em-
barked on a new program designed to limit terrorism
in Gaza.
Despite the Israelis' efforts to improve and
tighten security in the Gaza refugee camps, they have
been unable to reduce terrorist activity. Thus far
in 1971, the terrorists, in attempting to prevent
refugee cooperation with the Israeli authorities,
have killed 91 persons, including seven Israelis,
and wounded 400, 73 of them Israelis.
To provide better access to the interior of
the sprawling, densely built camps, the Israelis
in the past two years have cut wide, well-lighted
security roads through some camps, replacing the
houses thus destroyed with new dwellings on the out-
skirts. They have also reportedly begun a policy
of thinning out the Palestinian population, moving
some refugees to a workers' village in the center
of the Gaza Strip and others to Al Arish, some 30
miles away from Gaza.
(refugees will
also be moved to northern Sinai and the West Bank,
although only on a voluntary basis. Press reports
indicate that the terrorists are already inciting
the local population to oppose the plan.
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CHILE: The leader of the extremist Socialist
Party (PS) has called for the dissolution of Con-
gress.
PS Secretary General Carlos Altamirano said in
a speech this week that recent elections show that
opposition control of both legislative houses does
not reflect accurately the division between Chileans
who support or oppose the Allende administration.
He claimed that a "political stalemate" between the
government and the opposition existed. Altamirano
proposed that President Allende be empowered to clear
the way for creation of a unicameral "popular assem-
bly" and that the law be changed to permit political
parties to unite behind a single slate. Under
Chile's proportional representational system, the
latter move would benefit the governing Popular Unity
(UP) coalition and increase the difficulties of the
opposition parties in reconciling their differences.
The UP's inability to push past the 50-percent
mark in municipal elections in April and in a legis-
lative by-election this month may influence Allende
to decide on new initiatives in order to strengthen
UP political control before economic problems can
erode the coalition's vote.
30 Jul 71 Ce .tral xnte&N4'gence E^.illeti:
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SECRET
NATO-MALTA: Britain's suggestion that an
annual cash payment of $15.6 million be made to
Malta from the NATO military budget met with a
cold reception in the North Atlantic Council on
Wednesday. Only Italy supported this idea in
principle. However, representatives of other
countries mentioned the possibility of extending
technical and economic aid to Malta through the
European Communities or even on a bilateral basis.
Prime Minister Mintoff is demanding both a cash
payment ranging from $42-$72 million plus aid,
in return for continuing the British presence
on Malta. He would be unlikely to accept aid
alone or a cash payment which fell far below his
wishes.
YUGOSLAVIA: Belgrade is slashing funds avail-
able for imports in another effort to stem a rapidly
growing trade imbalance. A sharp rise in imports
during the first five months of this year caused
the trade deficit to reach nearly $700 million--
twice that of the same period in 1970. Consumer
goods will be particularly hard hit by the new
restrictions which slash import permits by 50 per-
cent. New controls on foreign travel by Yugoslavs
also are designed to cut the outflow of foreign
exchange. Despite recent tax concessions to stim-
ulate exports they are not expected to rise until
late in the year, and Yugoslavia probably will only
be able to stem marginally the deterioration of its
balance of payments. High-level concern with the
economy has lately increased and was highlighted
on 28 July by President Tito's insistence that next
November's party conference add economic problems
to its agenda.
Central Inted.'gence Bulletin
(continued)
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COMMUNIST CHINA - CANADA: Wheat bound for
China is being loaded in Vancouver at an acceler-
ated rate which could complete delivery of this
year's 2.7 million-ton Canadian sale by early Sep-
tember, three months ahead of schedule. More than
400,000 tons a month were loaded in May and June
compared to 200,000 tons or less in previous months.
The step-up may result from Chinese uncertainty
over the summer crops. Preliminary Chinese report-
ing suggests the harvest is not particularly good.
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(continued)
Ceatral Intelligence Bulletin
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SECRET
YEMEN (ADEN) - ROMANIA - BULGARIA: Bucharest
and Sofia agreed to provide economic assistance to
Aden during recent visits by the Yemeni minister of
financial and economic affairs. Bulgaria will pro-
vide $5 million in credit for a number of industrial
and agricultural projects. Romania's $5-million
credit will be used for agricultural and irrigation
projects. In addition, Romania also confirmed its
intention to participate in establishment of a ce-
ment industry and construction of an $8.5-million
cement plant, and in conducting a mineral survey.
Other, larger credits have also been extended by
Communist China and East Germany.
ANDEAN GROUP: Officials of the Andean Develop-
ment Corporation are trying to secure funds abroad
to increase the organization's capital resources.
They intend to visit Ottawa, Tokyo, and several.
West European capitals in August, as well as Moscow,
Warsaw, and Prague. In operation since June 1970,
the corporation's main objective is to promote re-
gional integration among the group's members by
various means, including investment in industrial
and infrastructure projects. Thus far, its capital
resources are limited to $25 million subscribed by
member countries, but officials hope to increase
them to $150 million by 1974.
30 Jul 71 Ce-itral Intelligcn o Bulletin 10
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