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December 15, 2016
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October 3, 2003
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October 24, 1972
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Approved For Release 2003/10/15: CIA-RDP79T00975A0230Seff(?t-6 25X1 DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin Secret N2 42 State Department review completed Approved For Release 2003/10/15 : CIA-RDP79T00975A023000090001-6 25X1 Approved For Release 2003/10/15 : CIA-RDP79T00975AO23000090001-6 Approved For Release 2003/10/15 : CIA-RDP79T00975AO23000090001-6 Approved For Release 2003hFjGR IXRDP79T00975A023000090001-6 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) 25X6 THE YEMENS: Agreement regarding eventual unity (Page 4) VENEZUELA: Oil taxes (Page 5) SECRET Approved For Release 2003/10/15 : CIA-RDP79T00975A023000090001-6 Approved For Release 200Si L1RB3A-RDP79T00975A023000090001-6 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 SECRET Approved For Release 2003/10/15 : CIA-RDP79T00975A023000090001-6 Approved For Release 2003 RDP79T00975A023000090001-6 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 SECRET 25X1 Approve or Release - - Approved For Release 20038-RDP79T00975A023000090001-6 -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 SECRET Approved For Release 2003/10/15 : CIA-RDP79T00975A023000090001-6 25X1 25X1 25X1 Approved For Release 2003! $E($ Z 1 DP79T00975A023000090001-6 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) 24 Oct 72 Central Intelligence Bulletin SECRET 25X6 25X1 Approved For Release Approved For Release 2003/'RDP79T00975A023000090001-6 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 SECRET Approved For Release 2003/10/15 : CIA-RDP79T00975A023000090001-6 25X1 Approved For Release 2003/10/15 :. CIA-RDP79T00975AO23000090001-6 Secret Secret i - 1: Approved or a ease -