CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A025300020001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: December 3, 2003
• Sequence Number: 1
• Publication Date: September 19, 1973
• Content Type: REPORT

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Central Intelligence Bulletin
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State Department review completed
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c
19 September 1973
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19 September 1973
Central Intelligence Bulletin
CHILE: Junta begins effort to restructure economy.
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ITdTERT1ATIOTdAL P4ONETARY DEVELOPMENTS : Revaluation
o Dutch gu 1 er causes some uncertainty in money
markets. (Page 3)
FOR THE RECORD: (Page 5)
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CHILE: Attacks, on security farces. appear to
be tapering off. Santiago and the provinces were
quiet yesterday although arrests of extremists and
raids in search of weapons have increased, accord-
ing to radiobroadcasts.
The regime now says that many of the 5,200 per-
sons under arrest are innocent of any wrongdoing
and will be freed after questioning. It claims the
arrests were justified by the need to prevent the
escape of those suspected of armed resistance or
sabotage. The latter will be tried by military
courts.
According to junta President Pinochet, the
courts will deal severely with foreigners who have
killed Chileans. It is still unclear what the gov-
ernment intends to do with the rest of the thousands
of foreigners who are allegedly illegal residents.
Foreign Minister Huerta has told the UN refugee com-
mission that Chile will not send political refugees
back to their own countries against their will.
Some expulsions have already taken place, however.
The junta is to begin its economic restructur-
ing effort in earnest today, the first regular work-
day since the coup. Government workers have been
told that if they do not appear today they will lose
their jobs. There may be absenteeism by the support-
ers of the previous regime.
Possibly in an effort to reduce potential labor
problems, initial government plans for the state-
owned sector of the economy may include turning over
to the workers as much as 50-percent ownership of
enterprises and selling the remainder to the public.
Such a scheme could salvage a sense of participation
for the workers. Companies taken over by the Al-
lende government but not legally owned by the state
reportedly will be returned to their owners. The
junta appears to be coordinating its economic policy
with private-sector interest groups.
19 Sep 73
Central Intelligence Bulletin
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The Europear_ ~urreney Band, 19`73
Fervent Change From-.Central Rate
The band's upper and lower limits are defiti-
ed at any one time by whichever currencies
have appreciated(or depreciated) rnost'and
least relative to their central rates.
19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17
MAR APR MAY JUN JUL AUG SEPT
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INTERNATIONAL MONETARY DEVELOPMENTS: The re-
valuation o t e Dutch guy der ast weekend reintro-
duced some uncertainty into international money
markets.
The dollar weakened somewhat on Monday and Tues-
day against the major European currencies. Traders
shifted into marks and Belgian francs in anticipation
that these currencies would appreciate--possibly even
be revalued--in the wake of The Hague's decision.
Selling pressure against the dollar generally has
been heaviest when the mark is at the top of the
European joint float band. The dollar, however, is
significantl strop er than it was in Jul and early
August,
The dollar closed at over 2. 1
in Frankfurt yesterday.
The renewed strength of the German and Belgian
currencies required increased intervention by major
European central banks to maintain the European joint
float. The French and Norwegian central banks, whose
currencies are now at the bottom of the float, are
selling the strong currencies According to some
dealers, the Bank of France sold over $100 million
worth of strong currencies yesterday. The German
and Belgian central banks have been buying French
francs and Norwegian crowns. The Bundesbank's French
franc purchases on Monday and Tuesday are estimated
at $60-80 million.
The EC Commission publicly criticized The Hague
far acting without prior EC consultation although it
recognized the domestic economic justification for
19 Sep '73
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East Germany: The East German parliament will
meet on 3 October to elect a chairman of the State
Council to replace the late Walter Ulbricht. The
leading candidates for the largely ceremonial posi-
tion are Premier Willi Stoph and 79-year-old Friedrich
Ebert, a member of the Politburo. Regardless of who
is elected, the real power will remain in the hands
of party leader Erich Honecker.
Japan - North Vietnam: Tokyo and Hanoi will
establish diplomatic relations at the ambassadorial
level on 21 September, accordin to a Japanese For-
eign Ministry official..
Indonesia - South Korea: Jakarta announced
yesterday that it will upgrade its mission in Seoul
to the ambassadorial level. Indonesia exchanged
ambassadors with North Korea in 1964.
*These items were prepared by CIA without consulta-
tion with the Departments of State and Defense.
19 Sep 7 3
Central intelligence Bulletin
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