CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A020000050001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 14, 2016
• Document Release Date: June 11, 2003
• Sequence Number: 1
• Publication Date: September 14, 1971
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Dept. review completed
Secret
No 41
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No. 0220/71
14 September 1971
Central Intelligence Bulletin
JORDAN-UN: Amman requests urgent Security Council
consideration of Jerusalem question. (Page 1)
INTERNATIONAL MONETARY DEVELOPMENTS: European min-
isters agree on proposals for monetary reform.
(Page 2)
URUGUAY: Military given extraordinary powers to
combat terrorism. (Page .3)
CHILE: Allende faces tough decision over rising.;
consumer demands. (Page 4)
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JORDAN-UN: Jordan has called for an urgent
meeting of the Security Council--which may convene
today--to discuss Israeli activity in Jerusalem.
Amman now has a draft that is acceptable to
the US. The Japanese delegate, this month's Council
president, is thinking of scheduling the meeting for
this afternoon. The Japanese hope to limit debate
to the subject of Jerusalem by having Jordan's res-
olution adopted by consensus at the outset and by
restricting each delegate's remarks to an explanation
of his country's vote or to a statement by nonmembers,
especially those Arab states concerned.
Despite these tactics, discussion may well stray
into the entire Middle East problem; some Arab states
may attempt to obtain a stronger resolution. The
:Egyptians, for example, may be planning to raise other
subjects as well. In addition, the Syrians are miffed
at Jordan's failure to consult them in advance and may
be less than fully cooperative, but probably would
follow Egypt's line. The Israelis, for their part,
will do all in their power to encourage centrifugal
tendencies among the Arabs.
14 Sep 71 Central Intelligence Bulletin
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INTERNATIONAL MONETARY DEVELOPMENTS: The EC
finance ministers agreed yesterday on a set of recom-
mendations for international monetary reform for to-
morrow's Group of Ten meeting in London.
The recommendations appear close to suggestions
made last week by the EC Commission. They include a
return to fixed parities, although with greater mar-
gins of flexibility; a devaluation of the dollar as
part of general currency realignment and a signifi-
cant revaluation of the Japanese yen. They also
call for a greater role for Special Drawing Rights
in the creation of new international reserves.
The Six decided to stand pat for now on main-
taining their present national exchange-rate schemes.
The French finance minister claimed that present
arrangements have proven workable. It remains to be
seen how long the Six can proceed without resolving
their internal differences before pressures result-
ing from disruption of Community economic life in-
cline them toward compromise. The Commission on Fri-
day had sent a private letter to government heads
of member states warning of the dangerous conse-
quences of continued divergent national policies in
response to US economic measures. The Commission
clearly is hoping that a strengthened Community will
emerge out of the current situation.
The General Agreement on Tariffs and Trade (GATT)
Council will consider on Thursday a working party re-
port which notes that the US surcharge "was inappro-
pria
te," despite a serious balance-of-payments prob-
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GATT contracting parties are un-
likely in the foreseeable future to exercise their
right to retaliate by withdrawing equivalent tariff
concessions .
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URUGUAY: President Pacheco has assigned the
military the primary responsibility for combating
terrorism in the wake of the Tupamaros' major prison
break last week.
The presidential order appears to place the
country in a state of semimartial law. Military
leaders reportedly believe that they will not be
impeded by constitutional restrictions in dealing
with the Tupamaros, who heretofore have operated
with relative freedom. The military apparently ex-
pects they will be permitted to conduct search and
seizures without warrants and circumvent legal pro-
cedures in investigations and interrogations. Cap-
tured terrorists will apparently be tried by mili-
tary courts and imprisoned under military guard not
subject to civil penal regulations.
The Pacheco government asserts that these meas-
ures are being taken to assure that the national
elections can be held as scheduled in November. If
the military operates extralegally, however, it will
give substance to the Tupamaros' charge that govern-
ment repression will make the elections meaningless.
A recent Tupamaro communique announced support for
the leftist Frente Amplio in the coming elections,
but claimed that the elections would be a fraud
under the present conditions of press censorship
and repression of individual liberties.
Success in recapturing the escaped terrorists
and, frustrating Tupamaro activities will bolster
the law-and-order presidential candidates, including
the incumbent Pacheco. Failure, or even limited
success, will strengthen those--principally the
Frente Amplio--who criticize the repression and in-
14 Sep 71
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SECRET
CHILE: President Allende and other top govern-
ment officials may face a need to place unpopular
restraints on consumer demand for agricultural prod-
ucts in the coming year.
The US Embassy estimates that dislocations and
uncertainties caused by government policies will
bring at least a ten-percent drop in agricultural
output and may result in even higher import require-
ments than now planned. Because declining foreign
exchange reserves will limit Chile's ability to in-
crease imports sufficiently, food shortages may
become more widespread.
Agriculture Minister Jacques Chonchol, a key
leader in agrarian reform under both the Frei and
Allende administrations, contends that output will
be normal and that the sharp rise in agricultural
import requirements to some $250-300 million an-
nually is due to increased consumption among lower
income groups. Other government spokesmen have
been more candid about the production problems
being encountered on both newly expropriated farms
and those still in private hands. They appear
willing, however, to pay this price for sweeping
agricultural change. Recent official statements
point to an acceleration in the pace of land
reform; they indicate that all large farms will
be expropriated by mid-1972.
14 Sep 71 Central Intelligence Bulletin
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