CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A019900040001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 14, 2016
• Document Release Date: August 21, 2003
• Sequence Number: 1
• Publication Date: August 31, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N?_ 42
31 August 1971
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No. 0208/71
31 August 1971
Central Intelligence Bulletin
SOUTH VIETNAM: Misgivings about Thieu's election
policy. Page 1)
INTERNATIONAL ECONOMIC DEVELOPMENTS: The British
Treasury has impose new restrictions on foreign
accounts. (Page 2)
MALTA.-NATO: Current offer stands (Page 3)
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SECRET
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SOUTH VIETNAM: Military and government leaders
reportedly are less than unanimous in their support
of President Thieu's election policy.
T.hieu met
witn senior South Vietnamese Army generals last week
to seek assurances that they would back his plan to
go ahead with the presidential election on 3 October
as scheduled. Although most of the generals readily
pledged their support, some were noncommital. A
number of generals asserted that they were military
men, not politicians, but would carry out Thieu's
orders. Several felt Vice President Ky's exclusion
from the race had been unfair, and at least one--
Military Region I Commanding General Lam--asserted
that senior military men should be allowed to meet
with Ky, who also was a military colleague. Lam did
express full agreement with Thieu's policy, however.
Thus far, Thieu has given no indication that
he is considering a change in policy. On 29 August,
in fact, he publicly reiterated his intention to
hold the election on schedule.
Ky has also been meeting with some of the gen-
erals, and he might be encouraged to oppose Thieu
more vigorously if he saw cracks in the President's
military support. Ky, who has shown a tendency to
overrate his own support in the past, met recently
with the chief of the Joint General Staff, General
Vien, and came away optimistic that Vien would sup-
port him in any future political moves. Vien, how-
ever, told Ky the army's job was to stay out of
politics.
Progovernment candidates are winning the bulk
of the seats in Sunday's Lower House elections. Un-
official returns indicate that a majority of the
deputies in the new 159-member House will be respon-
sive to Thieu. Candidates backed by the opposition
An Quang Buddhists did well in the northern provinces--
their main center of strength. F_ I
31 Aug 71
Central Intelligence Bulletin 1
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SECRET
INTERNATIONAL ECONOMIC DEVELOPMENTS: The
British Treasury has imposed new-re estrirtions on
foreign accounts to inhibit the possible inflow
of speculative funds.
Starting today, British banks will stop paying
interest on additional deposits in sterling accounts
of nonresidents, and other financial institutions
are prohibited from accepting further nonresident
deposits. The extent to which authorized banks
may convert foreign currency deposits into sterling
is also being restricted and permission is being
withdrawn for the sale to nonresidents of certain
sterling assets.
The new restrictions, which took currency
dealers by surprise, reflect London's unwillingness
to see any further substantial appreciation of the
pound, now trading at a premium of about three per-
cent, or to risk stimulating domestic inflation by
lowering the bank rate, which is six percent.
Meanwhile, on the Tokyo foreign exchange market
yesterday the dollar held relatively steady and the
yen has appreciated 5.5 percent since it was floated
on Saturday.
31 Aug 71
Central Intelligence Bulletin
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MALTA-NATO: The North Atlantic Council, meeting
yesterday, failed to come up with additional contri-
butions to the UK-NATO offer to Malta for continued
British base rights on the island. 'Italy was pre-
pared to raise its pledge if others--including the
UK--did likewise, but the British said they were
"irrevocably" opposed to offering more themselves
and would not press their NATO partners for an in-
crease in the present offer of $20.4 million in cash
and aid. The UK-NATO offer, plus prospective bi-
lateral aid packages from some NATO members, still
falls short of Valletta's expectations. Prime Min-
ister Mintoff, however, apparently still desires to
reach an accord with the British in order to avoid
entanglements with either Libya or the USSR that
would compromise Malta's independence.
31 Aug 71 Central Intelligence Bulletin 3
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Secret
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