CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A026100080001-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: December 21, 2016
• Document Release Date: October 18, 2007
• Sequence Number: 1
• Publication Date: February 5, 1974
• Content Type: REPORT

Approved For Release 2007/10/19: CIA-RDP79T00975A026100080001-3
Top Secret
Central Intelligence Bulletin
DOE review completed.
Top Secret
C 30 0
February 5, 1974
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February 5, 1974
Central Intelligence Bulletin
CONTENTS
ITALY - MIDDLE EAST: Foreign Minister's visit to
Jidda reportedly results in understanding on future
supply of oil. (Page 2)
VENEZUELA: Government may again raise proportion
of petroleum royalties paid in crude oil. (Page 5)
ARGENTINA-USSR: Talks on trade expansion begin.
(Page 6)
SOUTH AFRICA: New uranium-enrichment process claimed
to be economically competitive. (Page 7)
FOR THE RECORD: (Page 8)
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ITALY - MIDDLE EAST: The most successful stop
on. Foreign Minister Moro's tour of the Middle East
was his visit last weekend to Saudi Arabia. Accord-
in.g to press reports, the Saudis agreed in principle
to supply Rome with an additional 20-30 million tons
of crude oil over the next three years. The details
are to be worked out between the two countries' state
oil companies. The deal apparently envisions coopera-
.tion in the agricultural and industrial fields, in-
cluding the possibility of an eventual exchange of
Saudi oil for Italian industrial plants.
Moro's talks in Kuwait and Iran do not appear
to have resulted in any new oil deals. In both coun-
tries, however, the Foreign Minister probably sought
support for the inclusion of Italy on the Arab list
of "friendly" nations by emphasizing Rome's recent
public shift toward a more pro-Arab position. Before
leaving for the Middle East, Moro said Israeli with-
drawal from the occupied territories was the most
important element in any Middle East settlement.
Moro also used his brief visit to Cairo to lobby
for better treatment of Rome by the Arab oil producers.
Although Egyptian Foreign Minister Fahmi made no
strong commitment to intercede with the oil states
regarding either a production increase or a price
rollback, Moro reportedly came away with the impres-
sion that Cairo would recommend Rome's addition to
the "friendly" list.
The positive aspects of Moro's tour--especially
the Saudi deal--should go far to cool the debate in
Rome over the country's Middle East policy. The
government has been under sharp attack from business
and political circles for following a policy calcu-
lated to offend no one in the Middle East while other
West Europeans were arranging bilateral oil deals.
Feb 5, 1974
Central Intelligence Bulletin
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VENEZUELA: The Venezuelan Government may be
preparing to raise to 36 percent the proportion of
petroleum royalties paid in crude oil0 This would
be double the recently announced figure of 18 per-
cent, which is not scheduled to go into effect until
early April.
Such a move would reflect Venezuela's current
petroleum dilemma. On the one hand, the government
wants to reap as much benefit as possible from the
worldwide oil crisis; on the other hand, it wants to
conserve its oil resources, Ly increasing the amount
of royalty payments made in oil, Venezuela increases
its control over oil sales without increasing produc-
tion.
In addition, Venezuelan leaders are very inter-
ested in building an image of leadership in Latin
America. Last weekend the Caldera government, which
leaves office in early March, pledged to help several
oil-short Central American countries. Venezuela
probably will provide preferential cash loans to
finance sales of oil supplies to these countries, but
outright preferential treatment on prices is unlikely.
Such an arrangement could be made at current prices,
although delivery may not be made until April or
later, when supplies are available.
Feb 5, 1974 Central Intelligence Bulletin
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ARGENTINA-USSR: A large Soviet economic and
commercial delegation arrived in Buenos Aires last
week to begin discussions on trade expansion. The
Soviet mission will discuss the sale of equipment
for electric power projects, offshore oil exploration,
coal mining, petrochemicals, and fishing. In addi-
tion, the delegation will discuss the Soviet bid to
provide equipment for the large Salto Grande hydro-
electric project.
Argentina is anxious to sign a long-term agree-
ment for exports of beef and consumer goods to the
USSR. Moscow, however, will insist on an expansion
of Argentine purchases of Soviet goods in an effort
to correct the persistent imbalance in its trade with
Argentina. In 1972, the USSR exported less than $5
million worth of goods to Argentina but imported
almost $30 million.
Feb 5, 1974
Central Intelligence Bulletin 6
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developed by t e South Africans probably uses an
the process uses a large quantity of helium, which
serves as either a diluent or a carrier gas for the
uranium.
aerodynamic process.
The South Africans have not provided much infor-
mation on the enrichment method. They claim, however,
that the new process will be economically competitive
with those used by other countries. Claims of eco-
nomic advantages are based primarily on lower capital
costs, maintenance, and operating costs. If the
operation of the pilot plant demonstrates that the
process is economical, the South Africans may become
an important supplier of enriched uranium on the
world market when a full-scale production plant is
built.
The pilot plant to test the new process has been
under construction near Pretoria since 1970 and is
expected to go into operation later this year. The
South Africans say the process is to be used for the
production of slightly enriched uranium for reactor
fuel. Like any isotope separation process, however,
it: could be adapted to the production of weapons-
Feb 5, 1974 Central Intelligence Bulletin
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USSR-MBFR: Chief Soviet MBFR delegate Khlestov
has agreed to an informal meeting of six delegations
on February 7 and has said he might not take a planned
ten-day sightseeing trip. This modifies :Khlestov's
tactical approach of January 29 when he pressed for
US-Soviet bilateral meetings and mentioned the pro-
posed trip, apparently as a gesture of displeasure
over NATO's negotiating posture.
Argentina: The government has issued an official
announcement that President Juan Peron will leave soon
for Europe where he reportedly is to hold talks with
heads of state. A visit to Spain may be intended for
surgery to remove bladder polyps. Peron underwent a
similar operation in June .1973.
Costa Rica: The ruling National Liberation Party
candidate, Daniel Oduber, has been declared the winner
of Sunday's presidential election, thereby eliminating
a need for a run-off in April. Oduber's party appar-
ently will lose its traditional legislative majority
and will have to seek stronger cooperation from oppo-
sition parties. The direction of Oduber's administra-
tion is unlikely to differ substantially from his
predecessor, Jose Figueres.
*These items were prepared by CIA without consulta-
tion with the Departments of State and Defense.
Feb 5, 1974 Central Intelligence Bulletin
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