CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A024400090002-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 14, 2016
• Document Release Date: August 6, 2003
• Sequence Number: 2
• Publication Date: May 12, 1973
• Content Type: REPORT

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Ton Secret
Central Intelligence Bulletin
Top Secret
C.
12 May 1973
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12 May
Central Intelligence Bulletin
CONTENTS
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FRANCE: Proffered resignation of key aide widens
gap between Pompidou. and orthodox Gaullists. (Page 6)
LIBYA: Oil companies given another stiff ultimatum.
Page 7)
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FOR THE RECORD: (Page 10)
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FRANCE: The proffered resignation of Pompidou's
closest political adviser, Pierre Juillet, is another
symptom of the widening gap between the President and
the orthodox Gaullists.
Juillet, a conserv-
ative Gaullist, submitted his resignation after the
elections in March, but Pompidou has refused to ac-
cept it. Juillet reportedly thinks Pompidou has
gone too far in showing favor to the Independent Re-
publicans and Centrists within the government. He
believes that Prime Minister Messmer made poor choices
in forming his government, and he may particularly
resent the appointment of his former rival in the
Elysee, Michel Jobert, as foreign minister.
Although Pompidou has not abandoned the basic
tenets of Gaullism, he has become more independent
and obviously intends to continue in that direction.
Examples of this are the departure of some of the
more orthodox Gaullists from the cabinet, efforts
to include Centrist leader Lecanuet in it, and the
proposal for a broad domestic reform program.
12 May 73
Central Intelligence Bulletin
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LIBYA: The government has given Western oil
companies until 17 May to accept its demand for com-
plete control or be nationalized. The companies may
counter by offering to participate with Tripoli in a
50-50 joint operating company. They are also offer-
ing substantial financial support for new explora-
tion activities. These proposals probably will not
satisfy Tripoli's goal of achieving a better settle-
ment than the Persian Gulf countries, but they may
buy more negotiating time. The Libyans are probably
not prepared for a total nationalization of the in-
dustry, but could take over one company at a time.
The companies' prospects in the coming nego
tiations will depend in part on their ability to
present a unified position. Several of the com-
panies--Continental, Marathon, Occidental, and Bunker-
Hunt--have little or no foreign oil production out-
side of Libya and are likely to bend to Libyan de-
mands. Other companies with significant foreign
holdings, such as Exxon, Texaco, and Standard Oil
(California), will be reluctant to allow Libyan
gains to set a precedent that might prompt the Per-
sian Gulf oil producers to demand renegotiation of
their agreements.
Libyan oil minister Mabruk said he was making
no new demands on the Bunker-Hunt oil company be-
cause "we're taking them over anyway." The decision
to nationalize Bunker-Hunt may be a concession to
the recent fedayeen challenge to Qadhafi that he
nationalize the entire oil industry. Although Qa-
dhafi in an interview this week stated that he will
not take such action unless other Arab oil producers
follow suit, he probably is willing to nationalize
Bunker-Hunt since such a move would enhance his revo-
lutionary image and would not be a serious economic
burden. Bunker-Hunt has been operating without a for-
mal agreement since its former partner, British
Petroleum, was nationalized in late 1971. The com-
pany is attempting to pursue its case through arbi-
tration, but is unlikely to be successful
12 May 73 Central Intelligence Bulletin 7
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Chile: The government has hardened its stand
against strikers who have paralyzed the giant El
Teniente copper complex for nearly four weeks in a
demand for wages that Allende considers excessive.
A state of emergency was imposed in the area on 10
May after police and pro-government workers clashed
with the largely opposition-led strikers.
Chile: The crackdown on the extremist Patria
y Libertad group ordered on 11 May will worsen an
already tense situation, but few Allende government
opponents, either civilian or military, will want
to take act' support of this ultra-right or-
ganization.
China-Japan: Japanese business leaders re-
portedly will ask Peking to consider the ossibil-
ity of exporting natural gas to Japan.
Sierra Leone - China: The Chinese have de-
livered two gunboats promised by Peking when dip-
lomatic relations were established in July 1971.
0
*These items are prepared overnight by CIA without
coordination.
12 May 73
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