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December 20, 2016
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October 3, 2006
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September 13, 1976
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. 0 pprR IeG a ease UU 17070 :1 FROM: NAME, ADDRESS, AND PHONE NO. DATE 1 Access to this document will be restricted to those approved for the following specific activities: NATIONAL INTELLIGENCE DAILY CABLE 0 1 1 Monday September 13, 1976 w 2 01 NATIONAL SECURITY INFORMATION Unauthorized Disclosure Subject to Criminal Sanctions 0 db=mm& DIA review(s) completed. Top Secret 0 1 State Dept. re A o ed pk llease 2007/03/06 : CIA-RDP79T00975A02'318t t 0 CIA-RDP79T00975A029300J8V cret (Security Classification) 0 25X1 CONTROL NO. 0 CI NIDC 76-215C 0 0 25X1 Approved For Release 2007/03/06 : CIA-RDP79T00975AO29300010020-4 Approved For Release 2007/03/06 : CIA-RDP79T00975AO29300010020-4 Approved For 4elease 2007/03/06 : CIA-RDP79T00975A02 300010020-4 25X1 National Intelligence Daily Cable for Monday, September 13, 1976. The NID Cable is tor the purpose ot intorming CONTENTS LEBANON: Situation Report JAPAN: Political Compromise ANGOLA: Neto's Status Page 1 Page 2 Page 3 CHINA: Mourning Ceremonies CHILE: Anniversary Page 5 Page 6 SOUTH AFRICA: Rioting Page 6 USSR: Promotions Page 8 GREECE-TURKEY: Aegean Page 9 EC: IMF Gold Sales Page 10 SOUTH KOREA - INDONESIA: Arms Agreement Page 11 Approved For Pelease 2007/03/06 : CIA-RDP79T00975A029100010020-4 Approved For LEBANON: Situation Report Syrian officials held further discussions in Damascus I is wee end with Lebanese and other Arab emissaries. The on- going talks are intended to facilitate the transfer of power to Lebanese president-elect Sarkis on September 23 and to pre- pare for an Arab summit on Lebanon that is scheduled for late October. I Lebanese Prime Minister Karami arrived in Damascus yesterday, presumably to learn Syria's views of his future role once Sarkis is inaugurated. Retention of Karami as prime minis- ter would be strongly opposed by right-wing Christian leaders such as President Franjiyah and Interior Minister Shamun. I Although the Syrians probably would prefer that Ka- on, they may not want to risk undermining efforts by Sarkis to secure the cooperation of the more extreme Christian leaders. I IKarami is also likely to discuss Muslim views on how to reso ve the Lebanese crisis. He is a prominent leader of the National Unity Front, a grouping of traditional Muslim and Christian leaders formed last June to strengthen the hand of old-line Lebanese politicians in future peace negotiations. Arab League mediator Hassan Sabri a7,-Khuli, who was expected to return to Beirut on Saturday, remained in Damascus until yesterday. I Various press reports have speculated that al-Khuli Lnrurn= from consultations in Cairo with new proposals to end the fighting when Sarkis takes office. His immediate concern, however, probably is preventing further attacks by the various warring factions against Arab League troops stationed in Leba- non. Other Arab envoys were in Damascus this weekend to iscuss preparations for the Arab summit on Lebanon. Tunisian Foreign Minister Chatti, the current chairman of the Arab League Council, conferred with Syrian Foreign Minister Khaddam on Saturday; yesterday, Saudi Foreign Minister Prince Saud held talks with Syrian President Asad. Approved Forl Release 2007/03/06 : CIA-RDP79T00975A0;9300010020-4 Approved For 9 Fighting remained at a low level throughout Lebanon this weekend. Sporadic shelling occurred in Beirut and its suburbs and in central and northern Lebanon JAPAN: Political Compromise Prime Minister Miki and his opponents in the ruling Liberal Democratic Party averted a showdown Saturday when the cabinet agreed to convene an extraordinary Diet session this Thursday. I The decision followed a day of intensive bargaining which resulted in a three-point compromise. It essentially in- volves: --Miki's appearance before a party caucus tomorrow, at which the Prime Minister will publicly pledge not to dis- solve the Diet precipitously and call a general election. --Convening the Diet on Thursday to pass a number of pending fiscal bills. Approved ForiRelease 2007/03/06 : CIA-RDP79T00975AO29400010020-4 Approved For --Calling a special party convention in October at which Miki almost certainly will be removed as party president. Both sides gave ground in working out the compromise. ici won his opponent's agreement to drop their demand for his resignation prior to the opening of the Diet. I To do so, he apparently threatened Saturday to re- place e dissenting Cabinet ministers with his own loyalists, convene the Diet, and then dissolve it and call elections if the impasse continued. His opponents clearly preferred to make some concessions to the Prime Minister rather than provoke an open party split. Even so, the compromise has significantly limited 1 i s room for maneuver by requiring him to publicly state that he will not suddenly dissolve the Diet and call general elections. Miki's rivals will certainly publicize his pledge tomorrow to help ensure against any dissolution before the convention is held. I I Meanwhile--as another part of the deal--Miki is re- portedly preparing to reshuffle cabinet and party posts, possib- ly sometime this week. I Notwithstanding the party's attention to legislative business, Miki's respite is likely to be brief. His opponents will almost certainly press for rapid action on the pending bills, and with elections now only three months away, for hold- ing the party convention--and replacing Miki--earlier rather than later next month. I n another weekend development, the Soviets seized three small Japanese fishing boats off the disputed, Soviet-held islands near Hokkaido. Although such seizures are routine, the Japanese press is noting that these took place at about the same time that Foreign Minister Miyazawa was on an inspection cruise near the islands. AAngolan President Agostinho Neto appears to have made gains in is power struggle with radical groups within the rul- ing Popular Movement. Approved ForlRelease 2007/03/06 : CIA-RDP79T00975A029300P10020-4 Approved For In the months immediately following the Popular Move- men s military victory, Neto and other mulatto political leaders have been restricted in their efforts to establish na- tional policies by black radicals within the party's military hierarchy. Flushed with victory and backed by the Cuban and So- viet presence, these radical military leaders opposed broad- ening Angola's economic and political ties, reconciling with former rivals, and establishing a multiracial state. I I Neto is on record in favor of nonalignment and a mu iracial state. he also favors a reconciliation with the two rival nationalist groups that would allow their members--but not their top leaders--to participate in the new Angolan government. I I During recent months, Neto visible and vocal than he was earlier many speeches and interviews in which racialism, denounced party disunity, ment. I Within the past two weeks, has been considerably more in the year. He has given he has stressed multi- and supported nonalign- Neto has moved to broaden Angola's foreign ties, suggesting that his authority within the Popular Movement has been strengthened. He recently accepted an ambassador from Sweden and is pushing to resume relations with Lisbon. He apparently hopes that ties with Portugal will help build bridges to other Western European countries and facili- tate Angola's admission to the United Nations. I Portuguese Socialist Party officials who recently visited uanda--at Neto's invitation--came away with the im- pression that Neto's political strength and personal self- confidence are growing. I Since the end of the civil war, Angola has been al- most o ally dependent on Cuban and Soviet assistance. The Cu- bans are helping government counterinsurgency operations, re- building transportation facilities, providing social services, and training the Angolan army. The Soviets have provided some military advisers and civilian technical assistants. Angola's economy needs Western technology and markets, however, if it is to revive quickly. The country's lucrative 25X1 25X1 Approved For Approved Fc commercial agriculture and diamond mining operations, for exam- ple, need access to the West before they can return to normal operations. Efforts by Neto to put some distance between his gov- ernment and Moscow and Havana will not go unchallenged by the military radicals of the Popular Movement who owe their strength to Communist assistance. CHINA: Mourning Ceremonies All active members of the Chinese Politburo, includ- ing those based in the provinces, have stood vigil over the body of Mao Tse-tung in the official mourning ceremonies that began Saturday. The leaders were listed in order of political rank, revealing no changes thus far in the pecking order. The official news agency made special mention of a wreath from Mao's wife, Chiang Ching, signed also by other members of his family. The wreath was given pride of place be- side the bier. Despite her general lack of political popularity, Chiang Ching will evidently be accorded all the honors due the widow of the chairman, at least during the mourning period. Leaders from 15 of China's 21 provinces have also been present during the lying-in-state ceremonies, including several province chiefs linked to the ousted Teng Hsiao-ping who have appeared infrequently. Missing from the group, however, are three government officials also associated with Teng. Peking has published condolence messages from 10 provinces and from five of China's 11 military regions. The most important of these during the succession period is the Peking Military Region, which sent a long message pledging loyalty to the party Central Committee. Approved Fo Approved Foil CHILE: Anniversary The Pinochet government, which marked its third anni- versary on Saturday, shows no signs of moderating its tough in- ternal security practices or making any substantial concessions in the area of human rights. In his anniversary speech, President Pinochet reiter- ated the regime's hard-line views and indicated that new decrees would soon be issued further restricting political activity. The crackdown is aimed at the Christian Democrats and the church-- the government's principal domestic critics. The junta's promulgation of several acts to be in- cluded in a new constitution apparently will institutionalize the authoritarian practices now being followed. The expansive guarantees of human rights promised by Pinochet at the OAS meet- ing in Santiago last June are still largely being ignored by the security forces. The Interior Ministry has announced that 205 political prisoners were being released, but the state-of- siege has been extended for another six months. I I Pinochet gave no hint on Saturday that changes in economic policies are planned, Despite some improvements economic conditions, ere a n no overall recovery, ac- cording to the US.embassy. SOUTH AFRICA: Rioting Rioting by "coloreds" in the Cape Town area peaked late as week and has now generally subsided. The death toll reached more than 30, and in several instances the rioting spilled over into adjacent white communities with much property damage. I I The recent disturbances in Cape Town have apparently genera e a confrontation psychology on the part of the whites, who are reported to be rapidly arming themselves. In two sep- arate incidents around Cape Town, white civilians shot and killed two "coloreds" and wounded several others--the first re- corded incidents of this nature since the rioting began last 25X1 25X1 Approved For Approved For 4elease 2007/03/06 : CIA-RDP79T00975A 29300010020-4 25X1 June. Recurrences are likely because whites and "coloreds" still live side by side in some residential sections of Cape Town. I IElsewhere in the country, there was a minor riot in a acc township near Pretoria on Saturday. Although there have been no major riots since last Thursday, continuing outbreaks of sporadic violence in widely separated parts of the country make it difficult to predict where and when disturbances may next occur. I Rhodesian Prime Minister Ian Smith and two cabinet 25X1 ministers reportedly were to arrive in Pretoria yesterday for talks with Prime Minister Vorster. F7 I 25X1 25X1 Approved Fqr Release 2007/03/06 : CIA-RDP79T00975AO293OP0010020-4 25X1 Approved For 25X1 KGB Chairman Yury Andropov and Minister of Internal Affairs Nikolay Shchelokov have each been promoted one grade to the rank of General of the Army, according to a decree of the Supreme Soviet. I uIn both cases, the promotions mean that the political figure eading the government agency is now one grade higher than the professional soldier commanding the militarized units subordinate to that agency. 25X1 Andropov, a Politburo member, now outranks Colonel Genera . A. Matrosov, chief of the KGB's Border Troops, as well as all other KGB officials. Shchelokov, a full member of Approved ForiRelease 2007/03/06 : CIA-RDP79T00975AO29P00010020-4 Approved For the Central Committee, similarly outranks Colonel General I. K. Yakovlev, Chief of the MVD's Internal Troops, and all other MVD officials. I IThe promotions for Andropov and Shchelokov are the irs or any Soviet leaders since late July, when Defense Min- ister Dmitry Ustinov became a Marshal of the Soviet Union. Coming on the heels of Ustinov's promotion and the earlier elevation of General Secretary Brezhnev to Marshal of the Soviet Union, they may produce some agitation from the professional military for promotions for themselves if they are not already in train. It is conceivable that military promotions are being saved or a major announcement in early November at the cere- monies marking the anniversary of the Bolshevik Revolution. GREECE-TURKEY: Aegean I The rejection by the international Court of Justice on a ur ay of the Greek appeal for a temporary ban on Turkish oil exploration in disputed Aegean waters will probably cause the Greeks to negotiate seriously with the Turks. The Court also rejected the Turkish request to drop the case altogether, but the Turks may now feel confident enough to stick to their maximum demands. This would limit the pros- pects for progress if the meeting between the Greek and Turkish foreign. ministers takes place as scheduled in New York later this month. The Greek government has tried to put the best face on I e our 's decision. The government-run television service quoted unnamed "legal circles" on Saturday as saying that the decision had been expected in light of the earlier UN Security Council resolution urging restraint and bilateral talks before resorting to the Court. As "positive" points, the unspecified sources noted that the Court's action leaves open the possibility of a ruling 25X1 Approved For Approved Fo on the substance of the dispute and that Turkey is now bound by its statement that its oil exploration does not prejudice Greek rights. I IThe Caramanlis government doubtless is concerned that its policy of countering Turkish moves only by diplomatic and other peaceful means will prompt more criticism from parts of the opposition and the military as well as the public. Caramanlis doubtless will be hoping that the Turks will not be emboldened by the Court's decision to test Greek resolve further. The EC monetary committee agreed Friday to back Italy's proposal to seek a change in International Monetary Fund gold sales policy, but refused to ask for a postponement of the auction scheduled for September 15. I IMF directors from EC countries will ask the Fund executive committee to consider possibilities for "being more flexible in techniques of selling gold." Changes might involve Approved Forj Release 2007/03/06 : CIA-RDP79T00975Ag29300010020-4 Approved For delaying the scheduling of future auctions, increasing the time between auctions, or reducing the amount of gold offered per auction. I //Italy, which still has relatively large gold re- serves, con irmed on Thursday that it is asking the IMF to hold gold auctions less frequently because of the depressing effects they have on world gold prices. The Italians have just completed a renegotiation of their gold-backed loan from West Germany and, because of past declines in the price of gold, took the option of reducing the amount of their loan rather than increasing their gold collateral.// //Changes in the gold price could necessitate either a further alteration of the credit or an increase in the amount of gold pledged as collateral.// //France, with the second largest gold reserve in the EC, and e UK were Italy's strongest supporters at the committee meeting. West Germany, which has the largest gold holdings in Europe, has expressed little concern about the fall in gold prices.// //The gold issue will be discussed at the IMF meeting in Manila early next month. If the EC receives support from some industrial and developing countries, it will increase the pressure on the US to agree to a more flexible scheduling of future IMF gold sales.// The EC monetary committee announcement had an almost immediate effect on the price of gold. The London afternoon fixing was $115.70 per ounce, up from $114.00 on Friday morn- ing. SOUTH KOREA - INDONESIA: Arms Agreement Indonesia concluded a $35-million military sales agreement with South Korea early this month. According to the US defense attache in Seoul, South Korea has agreed to construct four guided-missile patrol boats for the Indonesian navy at a. shipyard near Pusan. South Korea extended credit to the Indone- sians to close the deal, and the first patrol boat is scheduled for delivery in three years. Approved Fot Release 2007/03/06 : CIA-RDP79T00975A029300010020-4 Approved For I I Under the terms of the arms agreement--the first be- tween the two countries--South Korea will build the ships and Indonesia will provide the weapons and surveillance systems. 25X1< //The Indonesian Ministry of Defense has been seek- ing to diversify and upgrade the navy's inventory. The South Korean boat will give the Indonesians the fast patrol boat that they have wanted to improve the navy's capability to monitor ships entering Indonesian waters.// 25X1- Approved ForiRelease 2007/03/06 : CIA-RDP79T00975Ap29300010020-4 AAMW Approved For Release 2007/03/06 : CIA-RDP79T00975AO29300010020-4 Top Secret (Security Classification) AOF 0 0 0 Top Secret se 2007/03/06 : CIA-RDP79T00975A029300010020-4 (Security Classification