CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A025000060001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: October 29, 2003
• Sequence Number: 1
• Publication Date: August 7, 1973
• Content Type: REPORT

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Top Secret
Central Intelligence Bulletin
Top Secret
7 August 1973
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7 August 1973
Central Intelligence Bulletin
CONTENTS
USSR-IRAN: Mode high-level contar!s. (Page 1)
CHILE: No progress in talks pith government opponents.
(Page 3)
INDONESIA: Minor incide develops into anti-Chinese
rioting. (Page 4)
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USSR-IRAN: Prime Minister Hoveyda's current
trip to the Soviet Union is the latest in a series
of high-level visits aimed essentially at reviewing
regional and bilateral relations.
The Shah's visit to the Soviet Union last Octo-
ber was followed by Premier Kosygin's attendance in
March at the opening of the Isfahan steel mill built
by the Soviets. In June Iranian War Minister Azimi
met in Moscow with Soviet Defense Minister Grechko
and presumably reiterated Iran's interest in acquiring
Soviet weapons.
2
3
This visit--like other recent Soviet-Iranian
contacts--is not likely to remove the mutual suspi-
cions that exist between Moscow and Tehran. Iran
remains deeply troubled over Moscow's close relations
with Iran's traditional enemy Iraq and concerned over
Soviet intentions in the Persian Gulf. Iran's close
ties with the West, particularly the US, bother the
7 Aug 73 Central Intelligence Bulletin
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Soviets who are also distressed by the improvement
in Iran's relations with China. Nevertheless, each
country recognizes that the other is a force to con-
3 tend with in the Persian Gulf - Indian Ocean area.
Recognition of this, plus the extensive economic
cooperation between the two countries, should make
their political problems manageable over the near
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CHILE: The country's chronic political prob-
lems took another turn for the worse when President
Allende's "dialogue" with the Christian Democrats
5 reached a stalemate. Military leaders feel more
~-" strongly than ever that they must do something to
ease the situation, but are not agreed on any course
of action.
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4
Allende's talks with the Christian Democrats
and his efforts to placate the military are an ex-
pression of his normal. practice of oiling the
squeakiest wheel, a practice that has contributed
a great deal to Chile's political and economic
4 dilemma. On the other hand, the practice has en-
abled him to hold on to the presidency, keep his
coalition from splitting, and expand his socialist
program. He has also kept his opponents off base
and the military indecisive. Still, his room for
maneuver is being slowly circumscribed, and each
new problem, such as growing military concern and
the present transportation strike, seems more likely
to break up his coalition.
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INDONESIA: Large-scale anti-Chinese disturbances
broke out on 5 August in the West Java capital of
Bandung. The trouble was touched off by a minor
traffic incident that quickly developed into a full-
fledged riot against rising rice prices, Chinese
ry dominance of commercial activity, and corrupt deal-
ings between Chinese merchants and government offi-
cials. The rioting subsided after considerable
property damag had been done and a number of people
were injured. On 7 August, however, disturbances
apparently resume in Bandung, and reportedly have
spread to several other cities J
The right wing of the military leadership,
strongly suspicious of Indonesia's Chinese commu-
nity, will probably use the riots as an argument
for further delay in the restoration of diplomatic
I relations with Peking. The Chinese have for some
time taken the position that overseas Chinese com-
munities are the responsibility of governments in
Southeast Asia, and Peking is unlikel t react to
the d.ia.urbances in West Java.
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FOR THE RECORD*
Argentina: Argentina has announced a $200-
million line of credit to Cuba to finance exports
of food and industrial products. The loan, similar
to one for $100 million granted to Chile earlier
this year, will permit larger exports of Argentine
transportation and agricultural equipment. This
latest move by Buenos Aires reaffirms the non-aligned
"third position" advocated by Peron and is in line
..,. 4-1, - ,+-;,- -, ,- 1 i rij +-n ou.sh industrial exports .
India: Rising world cottee prices an a planned
30-percent increase in exports will increase sharply
India's export earnings from coffee this year. New
Delhi's annual earnings from coffee sales abroad
have averaged about $35 million per year during the
past several years--less than 2 percent of total
export earnings. India, however, plans to increase
coffee production and hopes to capture more of the
world market by obtaining a larger export quota,
if and when the International Coffee Board renego-
fiai-p-q new
*These items were prepared by CIA without consulta-
tion with the Departments of State and Defense.
7 Aug 73
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