CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A021300090001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 21, 2016
• Document Release Date: January 23, 2009
• Sequence Number: 1
• Publication Date: March 4, 1972
• Content Type: REPORT

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*me Secret
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
DHS Review
Completed.
Secret
N? 41
ON FILE TREASURY DEPARTMENT RELEASE
INSTRUCTIONS APPLY
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No. 0055/72
4 March 1972
Central Intelligence Bulletin
CYPRUS: Makarios is relying on public support to
counter bishops' call for his resignation. (Page 1)
PAKISTAN: Western aid donors agree on debt relief.
(Page 3)
HONDURAS: President Cruz' position weakened by
protests over peasant incident. (Page 4)
USSR: Sale of magnesium at rates below world mar-
ket price. (Page 5)
MOROCCO: King Hassan's speech (Page 6)
UGANDA: Effects of rift with Israel (Page 6)
NIGERIA: "Nigerianization" decree (Page 7)
FRANCE-US-DRUGS: French seize record heroin
shipment (Page 7)
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CYPRUS: President Makarios appears for the
moment to be relying on public indignation to coun-
ter the recent call by the three bishops of the Cyp-
riot Church for his resignation as President.
The House of Representatives gave a solid en-
dorsement to Makarios yesterday. Massive demonstra-
tions in favor of the Archbishop are being held and
pro-Makarios elements have threatened the bishops
with bodily harm. The bishops reportedly are under
protective guard, and one of them has been advised
not to return to his district.
The greatest danger is that the demonstrations
will get out of control, giving Athens an excuse to
intervene to restore order.
the Greek military contingent on the island is in "a
high state of readiness."
4 Mar 72 Central Intelligence Bulletin
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PAKISTAN: Western aid donors tentatively have
agreed to provide debt relief to Pakistan.
The 11 members of the Aid-to-Pakistan Consortium
reportedly will permit Islamabad to defer a total of
$235 million through 30 June 1973, if certain eco-
nomic reforms are introduced. The relief would re-
duce Pakistan's debt service obligations over this
period by roughly 50 percent. It also would give
tacit consent to the unilateral moratorium that Pak-
istan declared last April. Since then, Pakistan has
withheld approximately $100 million on debts to for-
eign governments.
The Western donors are demanding that Pakistan
agree to devalue before they give official approval
to the debt relief. The International Monetary Fund
also is requiring, the same commitment before it pro-
vides standby credits. Rumors of devaluation have
been circulating throughout Pakistan for weeks, but
this step probably will not be taken before April,
when Islamabad hopes that the political situation
will be more stable. In addition, the Consortium is
encouraging Islamabad to tighten government spending
and simplify foreign trade regulations. The Consor-
tium indicated that once Islamabad introduces the
reforms and prepares a realistic program for eco-
nomic development, it can look forward to renewed
aid and lon -term debt r lief
4 Mar 72 Central Intelligence Bulletin
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HONDURAS: A nationwide wave of protests over
a peasant massacre two weeks ago threatens to in-
tensify, and President Cruz' already weak position
is being further eroded.
The incompetence of the Cruz administration,
particularly of the National Agrarian Institute, is
being blamed for the expulsion order that initiated
police action and caused the loss of seven lives.
Among those who believe the peasants were being un-
justly ordered to leave land they had legally pur-
chased are campesino groups, violence-prone stu-
dents, and the major labor organizations, especially
the powerful north coast federation.
This is the most recent example, and the first
tragic result, of the confusion and lack of direc-
tion that exists throughout the Cruz government.
Cruz, moreover, has done nothing to calm the na-
tional outrage; he has not even named the members
of his promised official investigating commission.
If the unrest increases, the pressure on Chief-of
the Armed Forces General Lopez to lead a coup will
become seater.
4 Mar 72 Central Intelligence Bulletin
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)USSR: The Soviets have sold magnesium to the
UK aiff West Germany at rates substantially below
the world market price.
A British magnesium producer recently filed
dumping charges against the USSR with the UK Depart-
ment of Trade and Industry, which reportedly is
considering imposing a punitive tariff on future
Soviet shipments.
The Soviets have sold magnesium to Volkswagen,
the world's largest single consumer of that commod-
ity, at an even lower price than to the UK. This
is the first time Volkswagen is known to have
bought Soviet magnesium directly. US industry of-
ficials are concerned that the Soviets could cut
into Volkswagen's purchases from the US. The
German firm currently accounts for more than half
of US magnesium sales abroad.
Soviet willingness to sell magnesium at low
prices reflects Moscow's desire to dispose of a
surplus of magnesium stocks that cannot be absorbed
in the domestic economy. Moscow recently admitted
that a glut had developed in the economy and that
there is no coordinated program to correct the Prob-
lem.
4 Mar 72 Central Intelligence Bulletin 5
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MOROCCO: King Hassan announced yesterday that
he will dissolve the present government soon and
appoint a caretaker regime. In his annual Speech
from the Throne, delivered on the llth anniversary
of his accession to power, he also invited the op-
position to participate in the new "government of
national reconciliation" but apparently warned them
that, at best, they would get only a few portfolios.
For several months the King and the opposition have
been discussing a reform program; the opposition
abstained in the constitutional referendum on Wednes-
day because Hassan had not acceded to their time-
table for reforms. The initial tasks of the new
administration, whose powers are somewhat enhanced
by the now amended constitution, will be to prepare
for regional and local elections, followed by the
selection of a new parliament on or about 1 June.
Two thirds of the new parliament will be directly
elected and the remainder chosen by the new regional
and local assemblies and professional organizations
Central Intelligence Bulletin
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(continued)
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NIGERIA: The long-awaited "Nigerianization"
decree, wh ch the government issued this week, ap-
pears to be more moderate than was expected. Al-
though 22 sectors of the economy are reserved ex-
clusively for Nigerians and Nigerian participation
will be required in 33 others, only about $10 mil-
lion of the $800 million in foreign investment out-
side the oil industry appears to be affected. Most
American investments are not affected. While all
retail trade and some service and manufacturing in-
dustries are covered by the decree, much modern in-
dustry is not included and will presumably be left
open to foreign ownership. Furthermore, even enter-
prises affected will have two years in which to ar-
range for Nigerian participation, and there is pro-
vision for exemptions, flexibl administration and
lief.
FRANCE-US-DRUGS: The seizure of 439 kilo-
grams of pure heroin by French customs officials on
1 March is the largest ever reported. The heroin
was concealed in a 65-foot ocean-going fishing ves-
sel operated by Louis Marcel Boucan, a 57-year-old
French citizen. According to the press, the vessel
had left Villefranche near the Italian border and
was halted near Toulon. The US Bureau of Customs
has confirmed that the ship had sailed to Miami
at least twice since 1970; there are indications
it was destined for Florida. The sale of this ship-
ment in the US would have earned the French traf-
fickers about 4.5 million.
4 Mar 72 Central Intelligence Bulletin 7
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