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December 19, 2016
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January 22, 2002
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September 23, 1972
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`'rI I #`' f TL. .I. Of I I., #,,, Approved A'or Ftelease.2p S!A 39? GIA R P85TOQ875R,000800020216-9. Approved For Release 2005/06/09: CIA-RDP85T00875R000800 a 42 No Foreign Dissem DIRECTORATE OF INTELLIGENCE Central intelligence 0 ulletin State Dept. declassification & release instructions on file Secret 23 September 1972 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Approved For Release 2005/0 8&DP85T00875R000800020216-9 The CENTRAL INTELLIGENCE BULLETIN is produced by the Director of Central Intelligence to meet his responsibilities for providing current intelligence bearing on issues of national security to the President, the National Security Council, and other senior government officials. It is produced in consultation with the Departments of State and Defense. When, because of the time factor, adequate consultation with the depart- ment 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 immediate and preliminary views which are subject to modification in the 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 defense of the United States, within the meaning of Title 18, sections 793 and 794, of the US Code, as amended. Its transmission cr revelation of its contents to or re- ceipt by an unauthorized person is prohibited by law. I..c mpl In 4U 4encl.il Ilci b.abub~in a ImJule of l U IIo42 ?Uin~gn~n utlCC~T 4444 I LI II,I ~) cl.~.ilir?I ICI 4,2(((((44 Jr.l.i?~ilicll IInN' ~I nI'I`I'ir.il ..I Ilil? nII~~.Ii.r ail (.?IIII "MA 11,11111g, "I I Warning: Sensitive Sources and Methods Involved Secret Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Approved For Release 2005/06/0~P85T00875R000800020216-9 No. 0229/72 23 September 1972 Central Intelligence bulletin 25X6 VENEZUELA-COLOMBIA: Boundary dispute in the oil- rich Gulf of Venezuela. (Page 5) 25X6 THE NETHERLANDS: Prime Minister Biesheuvel is in political trouble. (Page 7) 25X6 25X6 USSR: Soviet gold sales continue apace (Page 10) CHILE: Consumer price index jumps (Page 11) CHILE: Beef imports banned (Page 11) Approved For Release 2005/06/1 IUIX91 85T00875R000800020216-9 25X6 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Next 2 Page(s) In Document Exempt Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Approved For Release 2005/0N? _k. RIf4DP85T00875R000800020216-9 Mort ern Segment of the COLOMBIA-VENEZUELA Boundary vcnvv.uclan NETHERLANDS claim Columbian ; '. AI LJOA ANTILLES Clain) ' CURACW, ?Riuhactia ~` tlalcoe 0 ' 1 t lIamslad? f r "`~ uasdualilo f a uisIm Buquislm Approved For Release 2005/Ofd// RIDP85T00875R000800020216-9 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 SECRET VENEZUELA-COLOMBIA: Talks will resume in Rome on 4 October on the boundary dispute in the oil-rich Gulf of Venezuela. The major stumbling block is the definition of the territorial sea and coi:tinental shelf boundaries. Caracas maiatains the entire gulf is its own inland water, and that the boundary line should be a pro- jection of the land border. Bogota takes the posi- tion that the boundary should be drawn into the gulf at a right angle to the northern shore. Both sides believe that the seabed in the disputed area. contains substantial oil deposits. Other irritants on the agenda include the il- legal immigration cf hundreds of thousands of Colom- bians whom Venezuela considers a potential, fifth column, and substantial contraband operations along the border. One of the Venezuelan negotiators told a'US Embassy official recently that Caracas views this session as crucial because failure now would delay agreement for years because of the coming elections in both countries. During previous sessions, both sides held rigidly to their positions and chances of a settlement this time appear slight. President Caldera is under heavy pressure from nationalist and military groups to maintain a hard line. A concerted media campaign reportedly will be launched soon to head off any agreement that would give up any of Venezuela's territory or its potential petroleum resources. In this pre-election period, it will be extremely difficult for Caldera to soften Venezuela's position to the extent necessary for agreement with Colombia and, at the same time, re- tain the military support on which his government depends. (SECRET) 23 Sep 72 Central Intelligence Bulletin Approved For Release 2005/06/0 eft85T00875R000800020216-9 25X6 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Approved For Release 2005/06/0 ek 85T00875R000800020216-9 THE NETHERLANDS: With elections only two months off the prospects of Prime Minister Biesheu- vel's coalition are increasingly gloomy. On the labor front, several hundred Dutch work- ers have seized a factory in Breda to protest manage- ment plans to close several plants and dismiss some 2,200 employees. The workers' unprecedented action won the immediate backing of three national unions and sparked a sympathy strike in a German subsidiary of the same multi-national corporation. The government, having failed in desultory ef- forts to head off this long-brewing crisis, has not yet decided on a suitable response. The Liberal (conservative) minister of economic affairs has criticized the workers' action, while the Anti- Revolutionary Party (ARP) minister of social affairs has termed the union position regrettable but under- standable. The ARP and the two additional confes- sional parties, which together with the Liberals comprise the governing coalition, will be hesitant to accede to anticipated Liberal demands for fu:ither government intervention. The confessionals are mindful of the possibility of a post-election coal- ition with the Labor Party and are thus reluctant to antagonize the left. Meanwhile, a dispute in the Defense Ministry has provided the opposition with additional ammuni- tion should they choose to exploit it. Defense State Secr-.:'-z7.ry Van Es resigned on 15 September in a disagreement with Defense Minister De Koster over organizational matters. Although the controversy primarily reflects personal rather than party dif- ferences, it further tarnishes the government's image and makes the controversial subject of de- fense policy increasingly vulnerable to politically inspired forays. Both incidents point up the increasing dis- array within Biesheuvel's coalition. In its weak- ened condition the government can expect to achieve 23 Sep 72 Central Intelligence Bulletin 7 Approved For Release 2005/06/0P& O 8 5T00875R000800020216-9 X Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 SECRET little more than the caretaker status the opposition demanded it assume last month. The price of gov- ernment impotence, however, is continued economic malaise and the consequent disaffection of more T.u.tch voters. Barring an uncharacteristically adroit performance'by Biesheuvel during the coming months, the widely anticipated turn to the left in November could prove still sharper. (CONFIDENTIAL) 23 Sep 72 Central Intelligence Bulletin Approved For Release 2005/06/0CDb'85T00875R000800020216-9 25X6 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020216-9 Approved For Release 2005/06/0 E?IA1 85T00875R000800020216-9 25X6 25X1 C 25X1 C USSR: Soviet gold sales on the international market are continuing apace. 25X1C Russian o i.- cials have stated procee s rrom the sales help defray the cost of grain and other purchases from the West. Reports this week of Soviet gold ship- ments to Zurich probably represent delivery of gold sold recently and were responsible for sortie fluctua- tion in gold prices. The Soviets are reported to have sold some 30 to 35 tons in the first quarter of this year, and sales probably have continued at least at this level. Discreet handling by the USSR and by bankers probably will continue to prevent any sharp reaction in the gold market. (SECRET NO FOREIGN DISSEM) (continued) 23 Sep 72 Central Intelligence Bulletin 10 Approved For Release 2005/06/OESPFJ5T00875R000800020216-9 Approved For Release 2005/081 i ' DP85T00875R000800020216-9 CHILE: The 23-percent jump in the consumer price index in August was higher than expected, and brings the total price rise for the first eight months of the year to almost 64 percent. The August increase, which was larger than the rise during all of 1971, was due largely to higher food costs, al- though prices of most other items also increased. Because prices are continuing to rise rapidly this month, the cost-of-living wage adjustment promised by Allende for October could be as high as 80 per- cent. This will further boost the government's enormous budget deficit, which is financed almost entirely by printing new money. This deficit fi- nancing, together with refueled consumer demand, will result in formidable inflationary pressures in the months ahead. (CONFIDENTIAL) CHILE: The government is banning beef imports until C r stmas because of a severe shortage of foreign exchange. The economics minister has stated that Chile cannot afford further beef imports, which have cost the country more than $90 million so far this year. Imports of all agricultural products during 1972 are expected to absorb almost one half of Chile's export earnings. Foreign reserves have continued to decline this year, following a $304- million drop in 1971, and by June were $80 million in the red. The beef ban will fuel consumer dis- content, already high because of spiraling prices and spreading shortages. President Allende can be expected, however, to apply whatever cosmetic meas- ures he can to improve consumption just prior to the important congressional elections scheduled for March. (CONFIDENTIAL) 23 Sep 72 Central Intelligence Bulletin Approved For Release 2005/( ,WRCWDP85TOO875ROO0800020216-9