CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A024700060001-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 14, 2016
• Document Release Date: August 18, 2003
• Sequence Number: 1
• Publication Date: June 23, 1973
• Content Type: REPORT

Approved For Release 2003/08/27 : CIA-RDP79T00975A024700~ecret
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Central Intelligence Bulletin
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No. 0150/73
23 June 1973
Central Intelligence Bulletin
CONTENTS
INTERNATIONAL MONETARY DEVELOPMENTS: Dollar hits
record lows in Europe in light trading. (Page 1)
WORLD RICE SITUATION: World rice stocks at low
ebb. (Page 2)
CHINA-THAILAND: Chinese Foreign Ministry official
accompanies ping-pong team. (Page 4)
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INTERNATIONAL MONETARY DEVELOPMENTS: The dol-
lar fell to record lows in Frankfurt, Amsterdam, and
Copenhagen yesterday and weakened in other major
European centers in light trading. The first quar-
ter improvement in the US balance of payments had
little impact on foreign exchange markets. Despite
the dollar's recent downward drift in Europe, gains
have been registered against the Japanese and Cana-
dian currencies; these two countries account for
40 percent of US trade.
The Bank of France announced yesterday that it
and the West German Bundesbank are jointly extending
a $1-billion credit to the Bank of Italy to help
support the lira, currently the weakest major cur-
rency. In addition, all EC central banks, including
those of France and West Germany, will provide up
to another $1.9 billion in short-term support under
EC monetary arrangements. These credits will ease
pressures on the Bank of Italy, whose intervention
in late May and early June reportedly amounted to
almost $500 million.
Although there is concern in Switzerland at
the continued weakness of the dollar in relation
to the Swiss franc, the President of the Swiss Na-
tional Bank reportedly feels that the floating of
the franc has worked "amazingly" well. The central
bank has made no attempt to control the franc-
dollar exchange rate. Since sales are booming, ex-
porters have not exerted pressure on the government
to support the franc.
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23 Jun 73 Central Intelligence Bulletin
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WORLD RICE SITUATION: World rice stocks have
dwindled and only sporadic sales have been regis-
tered in recent months. A number of rice-consuming
countries--including Indonesia, the Philippines,
Singapore, Cambodia, and South Vietnam--have been
unable to buy rice on the world market to meet im-
mediate import needs.
In early June, Thailand banned further rice
export commitments until at least August. Thailand
had earlier ceased quoting prices for high-quality
white rice, and since March exports have been at
record low levels--at prices nearly three times
those of a year earlier.
In contrast to the 500,000 tons exported in
1972, Burma's exports this year may be limited to
the 100,000 tons of rice it sold early this year,
largely to fulfill commitments made in 1972. Gov-
ernment reserves--reportedly only 350,000 tons--
are being held to meet domestic needs until the
next harvest begins in December.
Japan's rice exports may fall short of last
year's 400,000 tons if Tokyo reserves rice stocks
for use as domestic feedgrains. China has little
if any rice available now for export from previous
crops. Some rice probably can be exported, how-
ever, from the early harvest that begins next month.
The US harvest--normally the earliest fall
harvest of the major exporters--has been delayed
and trimmed down by heavy rains. Rice acreage al-
lotments for 1973 were increased by 20 percent,
and the total harvest probably will exceed last
year's by about 12 percent. Nonetheless, the late
harvest and lack of carry-over stocks will hold down
exports for the remainder of the year, and total US
rice exports this year probably will be less than
last year's 2 million tons.
(continued)
Central Intelligence Bulletin
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World rice exports in 1973 may be as low as 6
million tons, compared with 8 million tons in 1972.
Exports of rice normally amount to less than five
percent of world production. The decline in exports
is traceable principally to last year's reduced mon-
soon rainfall and the subsequent poor rice harvests
in Thailand, Burma, and other exporting countries.
Rice importing countries are turning increasingly
to wheat and coarse grains as substitutes, further
reinforcing rising price trends for these commodi-
ties.
23 Jun 73 Central Intelligence Bulletin
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CHINA-THAILAND: A Foreign ministry official
is accompanying a touring Chinese ping-pong team,
appareritly to discuss political matters with some
of China's neighbors. Cheng Jui-sheng, who heads
the Southeast Asian Affairs section, reportedly had
several meetings with Thai officials this week in
Bangkok. Cheng may discuss Peking's position on
Chinese material and propaganda support for Thai
insurgents. Thai leaders indicated publicly this
week that assurance on this score is a major pre-
condition to normal Sino-Thai relations. The ping-
pong team visited Malaysia last week and will go
on to Burma, where Cheng's political task probably
will be to ease Rangoon's growing concern over
Chinese-supported insurgency in Burma's far north-
Central Intelligence Bulletin
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