CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R000800020216-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 19, 2016
• Document Release Date: January 22, 2002
• Sequence Number: 216
• Publication Date: September 23, 1972
• Content Type: BULL

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No Foreign Dissem
DIRECTORATE OF
INTELLIGENCE
Central intelligence
0
ulletin
State Dept. declassification & release instructions on file
Secret
23 September 1972
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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.
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Secret
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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)
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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
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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
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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
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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)
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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
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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
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