CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A022800100001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 14, 2016
• Document Release Date: June 27, 2003
• Sequence Number: 1
• Publication Date: September 26, 1972
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N2 42
25X1
26 September 1972
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No. 0231/72
26 September 1972
Central Intelligence Bulletin
PHILIPPINES: President Marcos moves to gain support.
(Page 1)
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EGYPT: Prospects for improved financial relations
with Western Europe in doubt. (Page 3)
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MOROCCO: Trial of suspected plotters may involve
up to 600 people. (Page 5)
CONGO-FRANCE: President Ngouabi moves to reduce
French influence. (Page 6)
BURMA: Cabinet officials dismissed '(Page 7)
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PHILIPPINES: President Marcos has taken addi-
tional stes to gain acceptance for martial law and
re-enforce his political position.
With his first decree under martial law, Marcos
has enacted a reorganization plan for the executive
branch which he has long wanted but which had been
stalled in Congress. The plan streamlines the bu-
reaucracy by consolidating many of the more than
100 executive offices, creates a public information
department, and establishes 11 regional organizations
between cabinet level officials and the 66 provincial
governments.
Although billed as a decentralization of gov-
ernment, the reorganization will give the central
government and Marcos greater opportunity to in-
fluence local administration, because it eliminates
the necessity for dealing through numerous national
and province-level officials. Marcos apparently
has decided that the shortcomings of his administra-
tion and his own loss of popularity are the result
of bureaucratic ineptness and that if he takes firm
personal control and pushes strongly for his "New
Society" reforms, he can regain public confidence.
26 Sep 72 Central Intelligence Bulletin
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EGYPT: Unless Cairo takes positive action soon
on the economic front, prospects for improved finan-
cial relations with the West may evaporate.
A chronic shortage of funds and
I lare the chief causes of Egypt's
current difficulties., Failure to meet three scheduled
debt repayments to British suppliers may cause the
British Government to cancel a recently extended
$50-million export credit. Political differences
with West Germany following the Munich terrorist
incident are delaying renegotiation of Egypt's debt
repayment schedule and, consequently, any new German
aid.
The complex financial arrangements for the
SUMED pipeline also are in danger. All European
governments involved, except Italy, have refused to
guarantee the loans arranged by a consortium of
Western banks unless repayment terms are hardened.
Icon-
tracts for the use o: the pipe ine may not De forth-
coming unless proposed fees are lowered to compete
more favorably with :Falling tanker rates. In view
of these delays, at :Least one firm has threatened
to pull out of the construction consortium formed
several years ago. If this occurs' a new consortium
must be formed and a complete new set of agreements
negotiated.
26 Sep 72 Central Intelligence Bulletin
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MOROCCO: The trial of suspected plotters in
last month's coup attempt may involve as many as
600 people.
the
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trial--scheduled to begin this week--wil judge all
officers and men stationed at the Moroccan air base
at Kenitra, the home base of the rebel F-5 squadron.
King Hassan is suspicious of almost everyone and
will probably use these judicial proceedings to
discredit any individual even remotely associated
with General Oufkir and the other conspirators.
Moreover, the King is planning a substantial reduc-
tion of the armed forces and the trial may be used
as a tool for dismissing many air force personnel.
26 Sep 72
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CONGO-FRANCE: President Ngouabi's latest steps
to reduce French influence in the Congo imply no
sharp break with previous policy, but will irritate
Paris anew.
The Ngouabi regime announced last week several
new measures in the Congo's "neo-colonialist"
struggle. The Congolese facilities of two French
telecommunications companies, including a powerful
French radio relay station, have been nationalized.
In addition, foreign-owned businesses must now re-
invest an unspecified portion of profits in the
Congo, and Brazzaville has left the Afro-Malagasy
and Mauritian Common. Organization, (OCAM), a Paris-
backed economic grouping composed mostly of former
French colonies.
Since 1964 the Congolese have moved cautiously
to lessen the country's dependence on French aid
and investment. Ngouabi's latest actions follow a
national conference which explored means of rein-
vigorating the Congo's lagging socialist revolution.
The reinvestment of profits law may not prove
as burdensome as implied. Another recent decree
requiring foreign businessmen to purchase identity
cards actually involved only a small annual payment.
The Congo's withdrawal from OCAM is largely symbolic
inasmuch as Brazzaville still wishes to participate
in its technical organs as non-member Mauritania
does. France will insist on compensation for the
nationalized companies. Agreement has yet to be
reached on those French businesses seized in 1970.
Until this issue is resolved, Paris may well delay
acting on the revisions sought by the Congo in
their basic cooperation accords.
26 Sep 72 Central Intelligence Bulletin
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BURMA: The abrupt dismissal of two cabinet of-
ficials on 22 September appears to revolve around
charges of bribery and corruption. Factional con-
flicts and inner-circle intrigue also may have played
a part, in view of the tensions that have built up
during the ten years of rule under the autocratic
Ne Win regime. The replacement of one of the ousted
officials by a trusted confidant of Ne Win has raised
apprehension in the Burmese Government that the mer-
curial prime minister may soon move to rid the ad-
ministration of other individuals who have incurred
his displeasure.
26 Sep 72 Central Intelligence Bulletin
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