CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A025000030001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: November 26, 2003
• Sequence Number: 1
• Publication Date: August 3, 1973
• Content Type: REPORT

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Top Secret
Central Intelligence Bulletin
State Department review completed
Top Secret
3 August 1973
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3 August
A
Central Intelligence Bulletin
CONTENTS
Phnom Penh's outer defenses. (Page )'
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INTERNATIONAL MONETA DEVELOPMENTS: Dollar scores
modest advance in E ~pe. (Page 5)
ITALY: New capit l controls. (Page 6)
FOR TI RECORD: (Page 7)
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Phnom Penh
554497 8-73 CIA
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CAMBODIA: Khmer Communist forces continue to
test Phnom Penh's outer defenses.
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In an apparent effort to divert Cambodian Army
units from the defense line south of Phnom Penh, in-
surgent units in the past several days have stepped
up attacks between the Bassac and Mekong rivers. A
small insurgent force in this area is now operating
within two miles of Takhmau, the capital's largest
suburb. Other Communist units have cut Route 1
twelve miles from the capital. Army commanders,
in response to these threats, are planning to shift
the lst Division from the Route 3 front where a new
government counterattack has met stiff resistance.
Northwest of Phnom Penh, government sweep op-
erations are putting pressure on small insurgent
elements that have infiltrated into an area three
to five miles from Pochentong Airport.
the Communist offensive against nom..en
has not gone as well as expected. I
a group of :Local insurgent offigi'&ls from
the Phnom 'Penh region met in mid-July anH`conceded
that the offensive had been ineffectuland had
fallen short of the goal of influe`ng the collapse
of the Lon Nol government. The fficials reportedly
agreed that the offensive h,d oundered because
heavy air strikes had c aged substantial casualties
and hindered tacticvement and supply activity.
They noted, however, that they were under orders to
continue the "stggle" and that they would do so.
Their immediate-tactical goal was to increase pres-
sure on Phnom enh's outskirts. The officials also
indicated t no direct action to capture the capi-
tal itse):` was being planned,
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L INTERNATIONAL MONETARY DEVELOPMENTS: The dollar
scorecla-modest advance yesterday on European money
markets. Since 26 July it has gained slightly more
than 2 percent against the mark and the French franc,
but has lost a little ground vis-a-vis the British
pound. Pressures on the EC joint float have also
eased as the mark has dropped more than the other
participating currencies. The dollar's recovery and
the mark's fall are largely attributable to the
easing of credit conditions in Germany, but few ob-
servers believe that the problems arising from the
Bundesbank's tight money policy are over.
The dollar dropped slightly against the yen
this week, indicating that the demand for the dollar
stimulated by exporters' repayment of debts has
largely dissipated.
Japanese monetary officials are in general
agreement that the yen should be allowed to appre-
ciate another 5-6 percent in the coming months.
They expect upward pressure on the yen because Japan
usually runs a very large trade surplus during the
third and fourth quarters and because Tokyo is con-
sidering easing controls on foreign investment in
Japan. Monetary officials feel that a further yen
appreciation would help slow inflation in Japan by
reducing the prices of imported food and raw mate-
rials. It would also help ease the way for a new
international monetary agreement. Some major Japa-
nese exporters are already writing long-term con-
tracts that Provide for a substantial yen apprecia-
tion.
3 Aug 73
Central Intelligence Bulletin
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ITALY: The Rumor government last week insti-
tuted a new set of capital controls, which it hopes
will reduce the scope for speculative maneuvers by
commercial interests and banks and make investment
abroad by Italians more costly. Because a large
part of the capital leaving Italy passes through
well-developed illegal and semilegal channels, the
effectiveness of the new measures in shoring up the
lira and in bringing about a significant shift of
resources into domestic investment will be limited.
3 Aug 73
Central Intelligence Bulletin 6
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he Indian Supply Mission in Washington in-
orme US officials on 31 July that it has tempo-
rarily halted purchases of US grain to assess the
price situation. India has purchased only 1.8 mil--
lion tons of foodgrain since mid-June, mainly from
the US, out of its goal of 4.5 million tons.
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Singapore: Singapore recognized Hanoi on 1
August. In an effort to be even-handed, Singapor
announced that the South Vietnamese accreditation
in Singapore was simultaneously being changed from
a consulate to an embassy. All the ambassadors to
be exchanged under these arrangements will probabl
be non-resident.
Burma-Thailand: The major opium smuggler,
Lo Hsing-han, who was recently captured by Thai
authorities, was handed over to Burma on 2 August.
It is not yet clear whether the Burmese will charge
him with insurgent activity against the government
or narcotics trafficking, but the odds are good
that he will be given a long jail sentence.
'These items were prepared by CIA without consulta-
tion with the Departments of State and Defense.
3 Aug 73 Central Intelligence Bulletin 7
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The United States Intelligence Board on 2 August
1973 approved the following national intelligence
estimate:
NIE 11-10-73 Soviet Military Posture and
Policies in the Third World
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3 Aug 73
Central Intelligence Bulletin 8
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