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December 19, 2016
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October 23, 2000
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September 14, 1971
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A~pr~vd Fol7ase ?~00~/0.~/j09 : C q-RQP85T 0875R0008000ftC'-et / (-_ ..~ /"7 / No Foreign Dissem DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin Secret N2 602 Approved For Release 2005/06/09: CIA-RDP85T00875R000801)(11( tmber 1971 State Dept. declassification & release instructions on file Approved For Release 2005/060.fDP85T00875R000800010019-9 The CIiVTIIAI, INTELLIGENCE I3t7LLIs;f'IN is produced by the Director of Central Intelligence to meet his responsibilities for providing current intelligence bearing oil issues of national security to the President, the National Security Council, and otiu'r senior government officials. It is produced in consultation with the Departments of Statc and Defense. When, because of the time factor, adequate consultation v'ith the depart- rrent of primary concern is not feasible, items or portions thereof are pro- duced by CIA and enclosed in brackets. Interpretations of intelligence information in this publication represent innneuu-te and preliminary views which are, subject to modification in tl-e light of further information and more complete analysis. Certain intelligence items in this publication may be designated specifically for no further dissemination. Other intelligence items may be disseminated further, but only on a need-to-know basis. WARNING This document contains information affecting the national defee';e of the United States, within the meaning of Title 18, sections 793 and 794, of the US Code, as amended. Its transmission or revelation of its contents to or re- ceipt by an unauthorized person is prohibited by law. GROUP 1 Excluded from automatic downgrading and declassification Approved For Release 2005/06/ ~~!A- DP85T00875R000800010019-9 Approved For Release 2005/06/09$i 6 WRP185T00875R000800010019-9 No. 0220/71 14 September 1971 Central Intelligence Bulletin JORDAN-UN: Amman requests urgent Security Council consideration of Jerusalem question. (Page 1) INTERNATIONAL MONETARY DEVELOPMENTS: European m5.n- i.sters agree on proposals for monetary reform. (Page 2) URUGUAY: Military given extraordinary powers to combat terrorism. (Page 3) CHILE: Allende faces tough decision over rising, consumer demands. (Page 4) Approved For Release 2005/06/09 : CIA-RDP85T00875R000800010019-9 SECRET Approved For Release 2005/06/09 : CIA-RDP85T00875R000800010019-9 SECRET JORDAN-UN: Jordan has called for an urgent meeting of the Security Council--which may convene today--to discuss Israeli activity in Jerusalem. Amman now has a draft that is acceptable to the US. The Japanese delegate, this month's Council president, is thinking of scheduling the meeting for this afternoon. The Japanese hope to limit debate to the subject of Jerusalem by having Jordan's res- olution adopted by consensus at the outset and by restricting each delegate's remarks to an explanation of his country's vote or to a statement by nonmembers, especially those Arab states concerned. Despite these tactics, discussion may well stray into the entire Middle East problc.n; some Arab states may attempt to obtain a stronger resolution. The Egyptians, for example, may be planning to raise other subjects as well. In addition, the Syrians are miffed at Jordan's failure to consult them in advance and may be less than fully cooperative, but probably would follow Egypt's line. The Israelis, for their part, will do all in their power to encourage centrifugal tendencies among the Arabs. (SECRET) 14 Sep 71 Central Intelligence Bulletin Approved For Release 2005/06/09 : CIA-RDP85T00875R000800010019-9 SECRET Approved For Release 2005/06/09 SV - f l ',,$5T00875R000800010019-9 INTERNATIONAL MONETARY DEVELOPMENTS: The EC finance ministers agreed yesterday on a set of recom- mendations for international monetary reform for to- morrow's Group of Ten meeting in London. The recommendations appear close to suggestions made last week by the EC Commission. They include a return to fixed parities, although with greater mar- gins of flexibility; a devaluation of the dollar as part of general currency realignr;.ant and a signifi- cant revaluation of the Japanese yen. They also call for a greater role for Special Drawing Rights in the creation of new international reserves. The Six decided to stand pat for now on main- taining their present national exchange-rate schemes. The French finance minister claimed that present arrangements have proven workable. It remains to be seen how long the Six can proceed without resolving their internal differences before pressures result- ing from disruption of Community economic life in- cline them toward compromise. The Commission on Fri- day had sent a private letter to government heads of member states warning of the dangerous conse- quences of continued divergent national policies in response to US economic measures. The Commission clearly is hoping that a strengthened Community will emerge out of the current situation. * * The General Agreement on Tariffs and Trade (GATT) Council will consider on Thursday a working party re- port which notes that the US surcharge "was inappro- priate," despite a serious balance-of-payments prob- lem. The report includes the conclusions of a sup- porting IMF study, which found that, although "the im- port surcharge does not go beyond the extent necessary to stop a serious deterioration of the US balance-of- payments position," changes in exchange rates are a preferred means for achieving balance in interna- tional payments. GATT contracting parties are un- likely in the foreseeable future to exercise their right to retaliate by withdrawing equivalent tariff concessions. (CONFIDENTIAL) 14 Sep 71 Central Intelligence Bulletin Approved For Release 2005/06/0 FMT5T00875R000800010019-9 Approved For Release 2005/06/09 5 ; I ST00875R000800010019-9 URUGUAY: President Pacheco has assigned the military the primary responsibility for combating terrorism in the wake of the Tupamaros' major prison break last week. The presidential order appears to place the country in a state of semimartial law. Military leaders reportedly believe that they will not be impeded by constitutional restrictions in dealing with the Tupamaros, who heretofore have operated with relative freedom. The military apparently ex- pects they will be permitted to conduct search and seizures without warrants and circumvent legal pro- cedures in investigations and interrogations. Cap- tured terrorists will apparently be tried by mili- tary courts and imprisoned under military guard not subject to civil penal regulations. The Pacheco government asserts that these meas- ures are being taken to assure that the national elections can be held as scheduled in November. if the military operates extralegally, however, it will give substance to the Tupamaros' charge that govern- ment repression will make the elections meaningless. A recent Tupamaro communique announced support for the leftist Frente Amplio in the coming elections, but claimed that the elections would be a fraud under the present conditions of press censorship and repression of individual liberties. Success in recapturing the escaped terrorists and, frustrating Tupamaro activities will bolster the law-and-order presidential can:'.idates, including the incumbent Pacheco. Failure, or even limited success, will strengthen those--principally the Frente Amplio--who criticize the repression and in- eptness of the Pacheco administration. (CONFIDEN- TIAL) 14 Sep 71 Central Intelligence Bulletin Approved For Release 2005/06/053 R:85T00875R000800010019-9 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800010019-9 SECRET CHILE: President Allende and other top govern- ment officials may face a need to place unpopular restraints on consumer demand for agricultural prod- ucts in the coining year. The US Embassy estimates that dislocations and uncertainties caused by government policies will bring at least a ten-percent drop in agricultural output and may result in even higher import require- ments than now planned. Because declining foreign exchange reserves will limit Chile's ability to in- crease imports sufficiently, food shortages may become more widespread. Agriculture Minister Jacques Chonchol, a key leader in agrarian reform under both the Frei and Allende administrations, contends that output will be normal and that the sharp rise in agricultural import requirements to some $250-300 million an- nually is due to increased consumption among lower income groups. Other government spokesmen have been more candid about the production problems being encountered on both newly expropriated farms and those still in private hands. They appear willing, however, to pay this price for sweeping agricultural change. Recent official statements point to an acceleration in the pace of land reform; they indicate that all large farms will be expropriated by mid-1972. (CONFIDENTIAL) 14 Sep 71 Central Intelligence Bulletin Approved For Release 2005/06/0KLQ85T00875R000800010019-9 'FT