CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A023000020001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 14, 2016
• Document Release Date: June 30, 2003
• Sequence Number: 1
• Publication Date: October 14, 1972
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N?_ 42
14 October 1972
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 Approved For Release 2003/(? ] DP79T00975A023000020001-3
No. 0247/72
14 October 1972
Central Intelligence Bulletin
SOUTH VIETNAM: Communists step up attacks in the
highlands. Page 1)
CHILE: Commercial and transportation strike spread-
ing (Page 2)
EUROPEAN COMMUNITIES: EC attacks US export-subsidy
device (Page 2)
UK: Exchange rate (Page 3)
INDIA: Inflation (Page 3)
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C SOUTH VIETNAM: The Communists have seized the
Ben Het border ranger camp and are threatening
other isolated government strongpoints in the west-
ern highlands. Two days of shellings, totaling more
than 1,750 rounds, destroyed the base which had
stubbornly resisted several other Communist cam-
paigns to capture it. No information is available
as to the fate of the several hundred men--many with
their families--in the camp, but the battalion com-
mander is reported to have been captured. Elements
of the North Vietnamese 40th Artillery Regiment com-
bined with the 66th Infantry Regiment for the attack.
Two other border outposts are in immediate dan-
ger. The Dak Seang ranger camp, nine miles north of
Ben Het, has been the target of enemy mortar bom-
bardments during the past several days and a ground
attack could come at any time. In Pleiku Province,
enemy pressure against the Duc Co border camp has
sharply increased with new attacks on outlying
field positions. Contrary to some press reports,
the camp has not been overrun, but at least one
nearby outpost has been lost to the Communists.
The principal military actions elsewhere in
the country resulted largely from South Vietnamese
clearing operations. Nevertheless, a Communist
threat persists on the major battlefronts, and there
are many signs of enemy preparations for further
offensive action, including shellings of some key
targets such as Da_Nang and possibly'Saigon.
14 Oct 72 Central Intelligence Bulletin
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C CHILE: Supplies of food, fuel, and other ne-
cessities were rapidly depleted in urban areas on
13 October, despite the government's tough response
to the extensive commercial and transportation strike.
President Allende reversed an order to force small
shops to open, probably to avert stirring up violence,
but told the nation that in the face of a "fascist ef-
fort to paralyze it" nothing would keep him from
maintaining public order and implementing his pro-
gram. His hand is strengthened by strict enforce-
ment of state of emergency restrictions, including
government control of all radio programming and
quick measures of retribution and intimidation that
have been taken a ainst truck o ers and some other
strike leaders.
EUROPEAN COMMUNITIES: The EC Commission has
prepared a detailed re uttal to the US defense of
the Domestic International Sales Corporation (DISC),
a US tax device intended to stimulate exports. The
French are pushing hardest to have the measure de-
clared an illegal export subsidy under GATT. The
other EC member states also oppose the DISC device,
but are still unwilling to request formal consider-
ation in GATT and thus add another open dispute with
the US on commercial policy. Meanwhile the French
reportedly plan to adjust their own export-subsidy
practices to make them less vulnerable to US criti-
cism. The British, who have registered their own
objections to DISC, have apparently been waiting to
see what action the EC would take before deciding
on a further approach.
(continued)
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UK: Chancellor of the Exchequer Barber, care-
fully keeping his options open, has expressed hope
that circumstances will permit a re-pegging of ster-
ling prior to Britain's entry into the EC on 1 Janu-
ary. Britain is under pressure, especially from
France, to return to a fixed parity before entering
the enlarged EC. The pound's new exchange rate is
likely to be well below its Smithsonian rate of
$2.61; the price of sterling yesterday on foreign
exchange markets was $2.42. A formal devaluation
will eventually be necessary in view of the lower
market price as well as accelerating inflation, un-
certainties concerning wage- rice controls, and slu -
ish industrial production.
INDIA: Wholesale price increases are continu-
ing and may accelerate. Most of the recent increase
is due to higher food prices, reflecting reduced out-
put of foodgrains. Additional pressure on prices
has been generated by a substantial retroactive wage
increase to lower level government workers and some
industrial employees, the continuing shortages of
industrial raw materials and electric power, and
anticipated declines in the production of most
agricultural commodities. New Delhi has not yet
evolved a policy that is likely to dampen inflation.
14 Oct 72 Central Intelligence Bulletin
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