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December 19, 2016
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May 5, 2005
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July 21, 1973
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Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 25X1 Top Secret Central Intelligence Bulletin State Department review completed NAVY review(s) completed. Top Secret C Ad U 4: 21 July 1973 Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 25X1 Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 Appro~ 21 July 1.973 Central Intelligence Bulletin CONTENTS LIBYA-EGYPT: 'march on Cairo. (Page EGYPT - ARAB STATES: Cairo moving to improve ties with broader range of Arab states. (Page 3) CHILE: Allende finds his supporters nearly as troublesome as his opposition. (Page 5) SPAIN: New Foreign Minister wants early discussion of terms for renewal of US treaty. (Page 6) 25X1 25X1 25X1 25X1 ALGERIA: Surge of foreign borrowing to help finance development. (Page 8) JAPAN: Prices continue to rise despite curbs. (Page 9) FOR THE RECORD: (Page 10) 25X1 Approvedi For Release 2005/06/01 : CIA-RDP79T00975AO24900060000 -9 Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 I 25X1 LIBYA-EGYPT: cision to make public is resignation--w is a sal Sadat already knew about--is further indication that he fully intends to place his prestige and leadership behind his own concept of the union. Qadhafi may reason that by relinquishing his leadership of Libya as a separate state, he has in the most dramatic way demonstrated his dedication to creating a larger Arab republic. Far from weakening the drive toward full union, his latest action is intended to make it more irresistible. Qadhafi's announcement is a complication for Sadat, but it should not significantly magnify the problems he already has in working out a formula for 3 Central Intelligence Bulletin 25X1 25X1 Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 I 25X1 Approved For Re *Tripoli Al BaydaDarnah Bengazi g obruk Mersa Matruh Alexandria Fukah 'Al Alamayn Cairo* ISRAEL (JORDAN 1 i Sinai t (ISRAELI- OCCUPIED) Approved For Rel+ase 2005/06/01 : CIA-RDP79T00975A02490006g001-9 25X1 25X1 25X1 Approved For Re tunion that meets Egyptian needs for a very gradual and cautious approach. No matter how determined Qadhafi may be, Sadat is unlikely to give in to the Libyan's demands for full. and immediate union, and the general Libyan performance--from the march to Qadhafi's dramatics--could if anything intensify Sadat's negativism on the entire union project. The. Egyptians published what is probably their minimum position on merger two days ago when the march began. It involves a formula that has all the outward trap- pings of full unity but allows a year's grace period for preparations and consultations before the proj- ect is completed and referred to a plebiscite in September 1974. It is doubtful that Sadat would go much further to satisfy Qadhafi. Egypt is currently confronted with the more im- mediate problem of holding back the procession of determined Libyan seekers after union. 25X1 25X1 21 Jul 73 Central Intelligence Bulletin 25X1 Approved For Rele*se 2005/06/01 : CIA-RDP79T00975A0249000?0001-9 Approved ~ EGYPT ARAB 'STATES: Egypt is improving its relations with Sudan in the latest of several Egyp- tian moves to better its t:Les with a broad range of Arab states. 25X1 25X1 The new warmth in the Egyptian-Sudanese rela- tionship accompanies a corresponding improvement in Egyptian relations with other Arab states, partic- ularly conservative states on the Arabian Peninsula. Arab solidarity--however elusive--is always a goal of Arab leaders, and this objective took on added urgency earlier this year when Sadat put re- newed emphasis on his preparations for military action against Israel. Central Intelligence Bulletin Approved F r Release 2005/06/01 : CIA-RDP79T00975A02490006 001-9 25X1 25X1 Approv 25X1 25X1 Sadat has more immediate concerns as well. Egypt desperately and perennially needs economic assistance, and the oil-rich states have it in abundance to give. In this connection, Egypt's ef- forts to better its ties with its wealthy neighbors have probably been accelerated in recent weeks by the diminishing prospects for an effective merger with Libya, whose own wealth was the primary induce- ment for Cairo's participation in the union project. 25X1 21 Jul 73 Central Intelligence Bulletin 4 25X1 Approved F - 01-9 Approved for Release 2005/06/01 : CIA-RDP79T00975A024900060 01-9 25X1 CHILE: President Allende is finding his sup- porters nearly as troublesome and intractable as his opposition. Workers in some of Santiago's industrial dis- tricts clashed with the carabineros on Thursday af- ter barricading the streets near the factories they have held since 29 June. The workers, apparently led by the extreme leftist Movement of the Revolu- tionary Left (MIR), demanded that the government an- nounce the immediate nationalization of all the in- dustries they have seized. The regime's position is that each case will be studied individually and that only "monopolistic" or "strategic" firms will be taken over by the state. The Communists and Socialists, who reportedly have agreed to try to increase their influence over government policy vis-a-vis Allende, appear to be opposing the President's hope of returning some in- dustries to their owners. The Communist-dominated Chilean Trade Union Confederation, however, is con- cerned that MIR-organized "people's power" groups are undercutting its influence in the factories and it appears to be looking for a middle ground. The Communists, Socialists, and the MIR may hold Allende personally responsible for the cara- bineros' use of force against the workers. The in- cident will not help the President in his effort to convince the Popular Unity parties to support an easing of tensions by talks with the opposition Christian Democrats. 25X1 Central Intelligence Bulletin Approved F r Release 2005/06/01 : CIA-RDP79T00975A024900060 01-9 25X1 Approve - 001-9 1 U"7 SPAIN: The new Foreign Minister, Lopez Rodo, has already begun to define Madrid's terms for re- newal of the agreement of friendship and cooperation with the US. The agreement permits the US to use several military bases constructed on Spanish soil under the terms of the original 1953 pact. Although the agreement does not come up for re- newal until 1975, the Spaniards want to start nego- tiations early to avoid the last-minute rush to set- tie terms that characterized previous renewals. Lopez Rodo told Secretary Rogers in Helsinki and the US ambassador in Madrid that he wants to discuss the negotiations when he comes to the UN in October. He stressed that, instead of another agreement, Spain wants a formal treaty which would broaden the areas of cooperation. In more categorical terms than he used with the Secretary, Lopez Rodo told the ambassador that the US could stay in the naval base at Rota only if the Gibraltar question were settled. There is no justi- fication, he argued, for two bases in the area. The Foreign Minister urged the US to use its good offices to change the intransigent stand of the British against returning Gibraltar to Spain. Since 1963, Spain has conducted an often vigor- ous campaign to wrest Gibraltar from the British. Madrid succeeded in getting a UN resolution direct- ing Spain and the UK to negotiate the matter, and another resolution calling on the UK to terminate its occupation of Gibraltar by 1969. Spain has tried to negotiate, resorted to harassment of UK communications with Gibraltar, and cut off direct access from the Spanish mainland. London has ig- nored the UN resolution to get out, and the numerous meetings between the foreign ministers have failed because of UK insistence that it cannot give up the island without the consent of the inhabitants. The latest series of talks broke off in May when, ac- cording to Lopez Rodo, the British bluntly told the Spaniards that they might as well get used to a separate Gibraltar. 21 Jul 73 Central Intelligence Bulletin 6 Approved For Release 2005/06/01 : CIA-RDP79T00975A02490000001-9 25X1 25X1 25X1 25X1 Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 Approved F ALGERIA: A recent $50-million loan from Japa- nese banks is the latest installment in a surge of foreign borrowing-by President Boumedienne. So far this year, Algeria has borrowed $1.6 billion, five times last year's total. The increased borrowing is intended primarily to finance the 1974-77 plan, which calls for investment of $11.5 billion. The new loans, having a grace period, also will help Algeria service its large foreign debt; annual re- payments during the next several years amount to roughly one fifth of the country's foreign exchange earnings. All of Algeria's loans this year have come from non-Communist countries. A $557-million US loan in March, the largest single credit, is for development of Algerian natural gas, most of which will be sup- plied to the US. Many of the loans are for the ac- quisition of advanced technology and equipment-- in line with Boumedienne's desire to stimulate in- dustrial development. Other large lenders are Japan, Canada, West Germany, the UK, and some Arab coun- tries. The increased credits in turn will stimulate Algerian trade with non-Communist countries, in- cluding the US. Central Intelligence Bulletin 25X1 25X1 25X1 Approved F4 Release 2005/06/01 : CIA-RDP79T00975A0249000600 1-9 Approved JAPAN: Prices continue to rise despite progres- sive tig th ening of monetary controls and the post- ponement of spending on some public works. The wholesale price index for the first ten days of July was nearly 15 percent higher than a year ago. Limit- ing the availability and raising the cost of bank credit have not yielded the desired spending slow- down because businesses have been able to finance an exceptionally large amount of investment from their internal funds. The government is press firms to scale down their investment plans. 21 Jul 73 Central Intelligence Bulletin 25X1 25X1 Approved or Release 2005/06/01 : CIA-RDP79T00975A0249000600 1-9 25X1 Approlved For Release 2005/06/01 : CIA-RDP79T00975A024900060001-9 25X1 FOR THE RECORD* 25X1 Cambodia: Sihanouk left Peking by train yester- day for a three-week visit to North Korea. He was accompanied by members of his family and by s pro- Communist "minister of economy and finance."I Thailand: The government has revalued the baht upward by 3.8 percent, the first adjustment in the dollar-baht exchange rate since 1963. Bangkok hopes that the new rate will help ease pressure on the domestic price level. The new rate, however, will not satisfy many critics who, placing a large part of the blame for rising domestic prices on the dol- lar crisis, have urged a revaluation of at least 10 percent. F7 I *These items were prepared by CIA without consulta- tion with the Departments of State and Defense. Central Intelligence Bulletin 25X1 25X1 Approv0d For Release 2005/06/01 : CIA-RDP79T00975A024900069001-9 25X1 Top Secret Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9 Top Secret Approved For Release 2005/06/01 : CIA-RDP79T00975AO24900060001-9