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December 14, 2016
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June 30, 2003
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October 14, 1972
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Approved For Release 2003/08/05 : CIA-RDP79T00975AO230 DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin Secret N?_ 42 14 October 1972 25X1 Approved For Release 2003/08/05 : CIA-RDP79T00975AO23000020001-3 25X1 Approved For Release 2003/08/05 : CIA-RDP79T00975AO23000020001-3 Approved For Release 2003/08/05 : CIA-RDP79T00975AO23000020001-3 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) SECRET Approved For Release 2003/08/05 : CIA-RDP79T00975A023000020001-3 Approved For Release 2003/(@ 1CNJ A'PDP79T00975AO23000020001-3 SECRET pprov or Release ~i'11(11'11'11 -111,11 - - Approved For Release 2003/0S/CI&II-DP79T00975A023000020001-3 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 SECRET Approved For Release 2003/08/05 : CIA-RDP79T00975A023000020001-3 25X1 Approved For Release 200$1 EXk-RDP79T00975A023000020001-3 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) 14 Oct 72 Central Intelligence Bulletin SECRET 25X1 Approvqa or Release 97 A - Approved For Release 2003/08/05 : CIA-RDP79T00975A023000020001-3 SECRET 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 SECRET 25X1 Approved For Release 2003/08/05 : CIA-RDP79T00975A023000020001-3 Approved For Release 2003/08/05 : CIA-RDP79T00975AO23000020001-3 Secret Secret