CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A023100040001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: October 3, 2003
• Sequence Number: 1
• Publication Date: November 1, 1972
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
D
Central Intelligence Bulletin
State Department review completed
Secret
N2 042
1 November 1972
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No. 0262/72
1 November 1972
Central Intelligence Bulletin
CHILE: Cabinet shifts and resumed talks may ease
current impasse. (Page 1)
URUGUAY: President Bordaberry under heavy pressure
from military. (Page 3)
THAILAND: Government plans new drives against in-
surgents. (Page 5)
EC: Proposal to curb major US export shelved
!Page 6)
CIVIL AVIATION: Anti-hijacking treaty faces ob-
stacles. (Page 6)
BOLIVIA: Crisis lessening (Page 7)
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CHILE: president Allende's cabinet reorganiza-
tion and offer to reopen negotiations with strike
leaders may provide ways out of the current impasse.
The cabinet resigned on 31 October to prepare
the way for reorganization, following opposition
moves toward impeaching four ministers. Allende
has accepted the resignations of two of these min-
isters who had been slated to quit this week to run
for congress. He may be less willing to lose the
technical competence of the other two presently un-
der fire, Economy Minister Matus and Agriculture
Minister Chonchol. Allende has long wanted to re-
constitute his cabinet to consist essentially of
technicians and military officers. Nevertheless,
the economic policies of both are unpalatable to
many voters and to some officers, and they may be
shifted to other jobs.
On the question of military participation in
the cabinet, the service chiefs apparently differ
over the political advantages that Allende would
gain, compared to the increased influence they could
wield. The Communists reportedly support the idea.
The Socialists have been unenthusiastic but might
find certain officers politically acceptable.
On the strike front, the government announced
on 30 October that there is room for compromise
over the prolonged shutdowns. Its spokesman told
striking truckers--whose organization the govern-
ment is trying to outlaw along with those of other
protesters--that their industry would not be nation-
alized. He reiterated, however, that a settlement
could not infringe on the president's powers.
Protest leaders are hopeful of holding out,
and airline pilots and other groups plan further
shutdowns. Leaders of the shop and bus owners'
groups appear to be weakening in their resolve, how-
ever, and the failure of the stevedores to join the
strike is a setback to their cause.
(continued)
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The effects of the shutdowns continue to be
widespread but uneven. Essential services and sup-
plies are being maintained with the aid of the
armed services and volunteers. The long-range ef-
fects, both political and economic. will be consider-
able.
Central Intelligence Bulletin
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URUGUAY: Continued pressure from military ele-
ments has forced President Bordaberry to rebuild
his cabinet and may have cost him a working majority
in the legislature.
The entire cabinet resigned this week in order
to give Bordaberry a free hand in replacing three
ministers who quit recently in protest against the
army's. arrest of political leader Jorge Batlle.
Batlle, who heads the powerful List 15 faction of
the Colorado Party, has been one of the targets of
an ongoing military investigation into economic prof-
iteering, but the push for his arrest came only after
a recent speech in which he criticized the armed
forces in strong terms. The military claim that
such criticism violates the National Security Law,
which they enforce.
Batlle's supporters in the Congress have not
yet indicated how far they will go in opposing Borda-
berry for his failure to face down army demands.
At present,. their energies seem to be directed to-
ward having their leader's case transferred from a
military tribunal to the Supreme Court.
Although Batlle's arrest confronts President
Bordaberry with the most serious political problem
of his administration, it has also created divisions
within the military high command. The navy and air
force commanders have already questioned the wisdom
of prosecuting Batlle. Within the army itself, the
high command reportedly is under relentless pressure
from the middle levels of t officer corps to main-
tain an aggressive stance.
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NORTH
VIETNAM
I A 0 Sr
}Udl
Tha
Government forces
take the offensive
Ubon
Ratthatt
Nakhon
Rschasima IN
Nakhon Si
hammarat
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THAILAND: The government is planning new moves
against Communist insurgents in two areas.
In the north the government will concentrate on
Communist insurgent redoubts in the tri-province
area. In the northeast, the government has moved
troops into position to push into Nakhon Phanom
Province, where ethnic Thai insurgents are making
headway in building a village-level political appar-
atus.
In the northeast the government appears to
have lost the element of surprise by making lengthy
preparations near the edge of the operational area.
The insurgents in this area will probably not con-
test the government move but will fall back to
nearby base camps to wait out the campaign. Unless
the army stays in the remote areas of Nakhon Phanom
Province--and there is as yet no indication that
it will--the government's chances of seriously dis-
rupting the. Communist political apparatus in the
northeast are slim.
Central Intelligence Bulletin 5
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EC: Further reflection in Brussels and Paris
apparently has stopped any early move to establish
a community policy on soybeans, which could have in-
terfered with trade in the major US agricultural ex-
port to the Common Market. An EC Commission offi-
cial responsible for foreign trade has suggested
that his intervention stopped whatever studies were
under way. A French official has said that, under
pressure from the Ministry of Agriculture and farm
interests, measures to increase domestic soybean
production have indeed been discussed within the
government. Other ministries, however, aware that
there would be a strong US reaction and also doubt-
ing the economic feasibility of a French production
effort, opposed the proposal which have now been
shelved for the time being.
CIVIL AVIATION: The council of the Interna-
tional Civil Aviation Organization (ICAO) in a spe-
cial session today will consider a US request to
schedule an international conference to complete an
air-security enforcement treaty. The US seeks a
treaty that would provide international sanctions
against countries that harbor hijackers, thus add-
ing teeth to the anti-hijacking principles already
embodied in international agreements. The council
probably will schedule a conference, but formidable
obstacles to the emergence of a treaty remain. A
number of countries fear that a new sanctions pro-
cedure would represent an erosion of national sover-
eignty and could force them to boycott states with
which they have important economic and political
ties. The Soviet Union and France, for example,
argue that joint sanctions should be imposed only
by the UN Security Council, and Paris said recently
that it has problems of a "general political nature"
with the draft the US has suggested.
(continued)
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CBOLIVIA: Troops overcame pockets of worker re-
sistance in La Paz yesterday and the city began to
function normally. Efforts to defuse the crisis
over devaluation and keep disturbances from spread-
ing continue. The government has hinted at wage-
price compromises, and it claims that negotiations
to end strikes have been successful. The army is
investigating unconfirmed reports of violence in
the tin mines near Oruro and Potosi. The military-
civilian coalition is holding together, and the im-
mediate threat to the government appears to have
passed.
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Secret
Secret
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