CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A023000090001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: October 3, 2003
• Sequence Number: 1
• Publication Date: October 24, 1972
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N2 42
State Department review completed
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No. 0255/72
24 October 1972
Central Intelligence Bulletin
EUROPEAN COMMUNITIES: The nine-nation summit in
Paris went further than had been expected in com-
mitting the members to both economic and political
integration. (Page 1)
CHILE: Strikes continue (Page 3)
USSR-IRAN: Communique on talks (Page 3)
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THE YEMENS: Agreement regarding eventual unity
(Page 4)
VENEZUELA: Oil taxes (Page 5)
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EUROPEAN COMMUNITIES: Despite lack of agree-
ment on immediate institutional reforms, the nine-
nation summit in Paris last week went further than
had been expected in committing the members to both
economic and political integration.
The summit participants explicitly called for
transforming the present amorphous relationship
among the member-states into a "European Union" be-
fore the end of the decade. Although such a union
remains carefully undefined, a date--1975--has now
been set for a summit debate on the issues involved.
The commitment shows some movement on France's part,
away from rigid insistence that economic and polit-
ical integration be kept on separate tracks. More-
over, Paris' continued opposition to the Dutch de.-
mand for popular election of the European Parlia-
ment is partially offset by its willingness to in-
crease the Parliament's role in decision making and
by its agreement to extend the community's juris-
diction into areas not specifically mentioned in
the EC treaties.
The summit set new deadlines for establishing
a number of EC policies within the next two years.
Several of these--notably regional and social pol-
icies--will entail the use of community financing,
probably at the expense of expenditures on agricul-
tural support.
Relations with the US were considered at some
length at the summit conference. Although the Ger-
man proposal for an institutionalized dialogue was
not accepted, no participant disputed that it was
important for the US and the EC to hold common
views. The Nine agreed to decide by 1 July 1973
on what approach to take to the trade negotiations
the US has been pushing for and expressed the hope
that these negotiations might be completed in 1975.
According to a high German Foreign Ministry
official, the communique's section on external re-
lations is a balance between the global emphasis
24 Oct 72 Central Intelligence Bulletin
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of The Hague and Bonn, and Paris' emphasis on the
importance of Africa to Europe. The official claims
that the community's Mediterranean policy, to which
the US has raised strong objections, will now be
considered "in a broader context." On relations
with Eastern Europe, the summit reaffirmed the EC's
determination to put a common commercial policy into
effect on 1 January 1973.
Although a squabble pver an alleged leak to the
press of a French draft for a preamble to the com-
munique' had little effect on the siimmit outcome,
French Foreign Minister Schumann's apology to the
British for the incident may be indicative of the
less influential role that France will play in the
enlarged community. According to a German official,
Prime Minister Heath was "a commanding personality"--
insisting that since everything about the EC is po-
litical, the community must deal with the political
implications of its actions.
24 Oct 72 Central Intelligence Bulletin
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-CHILE: Strikes by various commercial and
professional groups continue, with no significant
change in the pattern established over the past
ten days. No major demonstrations have occurred
since 20 October, and some strikers in the trans-
portation field have resumed operations. Opposi-
tion party leaders, who have called for a "day of
silence" today, maintain that the protest effort
will continue until their demands are met. Com-
munist and Socialist party leaders, for their part,
are showing increasing confidence that the Allende
government will succeed in riding out the current
crisis,
They point to the government's ability to maintain
adequate food supplies in the Santiago area and to
the continued support of the armed forces as the
main reasons for their confidence.
USSR-IRAN: The Shah's recent 11-day trip to
the Soviet Union apparently went fairly smoothly.
Both sides accentuated the positive--especially
economic relations--and agreed to disagree on
various political issues. Each pointed to the
15-year economic cooperation agreement as the
principal accomplishment. The official communique
describes the top-level talks as "frank." Moscow
once again appears to have attempted to lessen
Iranian concern over Soviet policy by agreeing to
call for a settlement of Gulf questions "by coun-
tries of the area themselves and without outside
interference." Despite President Podgorny's broad
public hint that Moscow wanted an endorsement of
its Asian collective security idea the communi u6
is noncommittal on that subject.
(continued)
24 Oct 72 Central Intelligence Bulletin 3
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C THE YEMENS: Delegations of Sana and Aden, meet-
ing in Cairo under Arab League auspices, reached
agreement yesterday on broad terms for the eventual
unity of the two countries, according to a press re-
port. A fourth round of talks between the two Yem-
ens will be held today, with the prime ministers
of the two countries reportedly scheduled to meet
in Cairo on 26 October. The unity agreement, which
will not become effective until approved by the
presidents of the two countries at a later summit
conference, provides for the formation of eight
specialized committees to make concrete plans within
one year for unification. The delegations have ap-
parently not dealt with such thorny questions as
the repatriation of Adeni exiles or compensation for
nationalized property. Neither the National Unity
Front, the anti-Aden dissident organization, nor
its supporters in Sana or Saudi Arabia can be ex-
pected to be pleased with the agreement, but they
probably feel that much can happen during-f he plan-
ning period. F7
(continued)
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VENEZUELA: The Venezuelan Government has an-
nounced only a modest increase in tax reference
values--the basis for estimating oil company taxes--
for next year. The increase, which averages about
10-12 cents per barrel, is within acceptable limits
for the foreign-owned oil companies, and is consider-
ably less than some opposition congressmen had ad-
vocated in recent weeks. By its action, the Caldera
administration is showing a degree of moderation
that has been absent from its petroleum policy in
recent years. The government evidently intends to
improve the atmosphere for the talks that will soon
begin between th US and Venezuela on a longiterm
energy treaty.
24 Oct 72 Central Intelligence Bulletin
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