CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R000800020267-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 19, 2016
• Document Release Date: January 4, 2002
• Sequence Number: 267
• Publication Date: November 28, 1972
• Content Type: BULL

t _ tt 1.4 I... E.:: 1...1 I_ E: I. f.)
, ,
? ? ? '1' ? ,
It
Approved For Release 2005/06/09 : CIA-RDP85T00875R0008000
DIRECTORATE OF
INTELLIGENCE
rat
No Foreign Dirsem
Central Intelligence tulletin
State Dept. declassification 8, release instructions on file
Secret
N2 582
28 November 1972
Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
Approved For Release 2005/06/03C M-RAP85T00875R000800020267-3
1 he 1.LN 1 f?/\I 11`1.11 LI I(.I.Nr:1- I 11..11.1 I 1 IN it; pinduce)I 1)y the Dintcliii Ill Central
lo meet his i,2%polvabilitii", 101 fil0V111111(.1 1.1l1.1 0111 ill1.01ilfe111..e 1)11,10111A ".7 7(15
11,111110,11 )1?i:111 liy 1.0 11147 11117 1\1,11100,11!;(...;1111ity (.01111Cll, 1111(1 other ?atitioi
iiiivoinmen1 ode 1 e, vvilli 1)epai !merit% II ;tate .111(1
L)elein,c. When, becoirai ()I the time oclequate c(nualltailon with the ttepot linen! of
II ((Jill',' concein ic not featahle, ileint, (it poi lion', thereof .11.3 produced 1)y the Central
hireltigence aml enclotaid in brackets.
ItI7owleldliGr6 of intelligence infounalinn in the; publiciali)ri iripiettent ininwcliate and
view; ('/1 iii dUl` Slit/jet:1 11101.1i1i1.,11i011 ill thia light of Mifflin infoun.itirgi
and mine complete anal./.tr).
If 'tem!, ill tIll, )1111111111011 indy derogridted .21)(i).ilically for no further
(1Ilw) item!. may II).' rlita.,einindterl fig (her, 1t it C.J11
11(.`0,1?10 k:10?.^./
WARNING
Mit, document contains information affecting the ti,-;dortal defense of the United States,
within the mcdning of 'Idle lb, sect.ont, /93 mid Of the US Code, in, amended. Its
tiontruiYaon or revelation of its contents to or rct:eitit by an unatithoriz.ed person is
pinhibited by I, w.
I';1,11
r,f711?1 1,1
itd.1\1111.,01,1 I 111,1;
on!,
Ihr 1,11r, !, I ..,1,[311:1(rIlw.rt,,
Approved For Release 2005/060VQ:friFRIP85T00875R000800020267-3
SECRET
Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
No. 285/72
28 November 1972
Central Intelligence ulletin
CONTENTS
CHILE: Allende's plan to bargain copper for Soviet
aid provokes military cabinet officer. (Page 1)
PANAMA: Labor dispute in Canal Zone complicates
relations with US. (Page 2)
ECUADOR-US: Quito will take hard line on "tuna
war." (Page 4)
USSR-GREECE: Moscow to finance large Greek devel-
opment project. (Page 5)
THE NETHERLANDS: Minority coalition likely to re-
tain power in election. (Page 6)
CYPRUS: makarios seems sure to win a third term.
(1-15-g-T-8)
US-CHINA: Trade relations move ahead at Canton
Fair. (Page 9)
USSR-CUBA: Soviet combatants enter Caribbean
(Page 10)
UN: Tough bargaining on anti-terrorism resolution
'Wage 10)
Approved For Release 2005/0Mcc.MIDP85T00875R000800020267-3
25X6
SECRET
Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
CHILE: President Allende's plan to bargain
copper for new Soviet economic aid has provoked the
air force general who was recently named minister
of mining.
25X1 C
General Sepulveda objected
that he had been kept in the dark on the plan and
in any case could not approve a matter with such
great national and international ramifications
without consulting the other two military cabinet
ministers. Allende later warned his political ad-
visers that the armed forces might veto the entire
plan--a convenient excuse if it does not prosper.
The arrangement reportedly was worked out by
a group of Allende's close associates, when he
concluded that only the USSR might help him out of
his massive economic difficulties and that Chilean
copper would serve as useful payment. Despite the
storm signal from Sepulveda, Allende still plans
to visit the USSR from 5 to 9 December and report-
edly hopes to obtain some further economic commit-
ment. (SECRET NO FOREIGN DISSEM)
28 Nov 72 Central Intelligence Bulletin
SECRET
Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
Approved For Release 2005/06/09 .-"ali1405T00875R000800020267-3
PANAMA: A labor dispute in the Canal Zone has
complicated US-1)anamanian relations.
In the past week, striking Panamanian bus
drivers have seized 17 buses belonging to an Amer-
ican-owned company serving the Canal Zone, driven
them into Panama, and turned them over to the Pan-
amanian National Guard.
The government sympathizes with the strikers,
who have been demanding coverage under Panamanian
social security and payment of the Christmas bonus
that is standard in Panama. The Foreign Ministry,
moreover, has taken the position that services such
as the bus company have nothing to do with the op-
eration, maintenance, or defense of the Canal and
are illegal under the 1903 treaty.
The government initially adopted a low key
approach to the problem and it was given relatively
little publicity in Panama. Panamanian officials
assured the US Embassy last Tuesday that the vehi-
cles would be returned promptly, but the matter has
been allowed to drag on for a week without resolu-
tion. Panama has taken no steps to discourage the
bus seizures and, indeed, has sought assurances
that there would be no reprisals against the drivers
involved.
In the past, the Torrijos government has at-
tempted to differentiate between its relations with
the US Government and its dealings with Canal Zone
authorities. Torrijos has tried to portray the
latter in the worst possible light in order to
demonstrate the need for a new treaty relationship.
Torrijos is apparently enjoying the discomfiture
of Zone officials. Although he will probably liq-
uidate the problem gracefully, as times goes on he
could be tempted to raise the banner of nationalism,
and further harass the bus company. (CONFIDENTIAL
NO FOREIGN DISSEM)
28 Nov 72
Centre:. Intelligence Bulletin 2
SECRET
Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
25X6 Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
Approved For Release 2005/06/0$B3I1y85T00875R000800020267-3
ECUADOR-US: The cabinet and military high
command have apparently voted to reject a US pro-
posal to negotiate a settlement of the tuna fishing
problem.
The government has yet to notify the US, but
25X1C I ithe leadership
is agreed that resumption of suspended US military
aid should be a prerequisite to negotiations. Ec-
uador appears to be in no hurry to end the "tuna
war," possibly because income from fines levied
against US tuna boats seized within the claimed
200-mile territorial sea now exceeds the benefits
anticipated from a resumption of US military as-
sistance. The navy--which receives about 70 per-
cent of fines, as opposed to about 25 percent of
military assistance funds--has fined and quickly
released seized vessels in the apparent hope that
they would resume fishing and be caught again.
Multiple offenders, a class into which many US
boats are now falling, are subject to double fines.
In addition, a proposal to raise fines by 60 per-
cent is under consideration.
As long as the navy, al-
reacty,in control ot the Ministry of Natural Re-
sources, continues to show strength and Rodriguez
shows weakness, the impasse over negotiations is
unlikely to be resolved. In any event, the navy
probably will oppose any settlement before the
current tuna season ends in March or April. (SE-
CRET NO FOREIGN DISSEM)
28 Nov 72
Centr7l Intelligence Bulletin
Approved For Release 2005/06/(5kCiaaP85T00875R000800020267-3
4
25X6
Approved For Release 2005/06/09 SIIA4RIPIST00875R000800020267-3
USSR-GREECE: Moscow has agreed to finance a
large peat development project in northeastern
Greece.
Under the preliminary agreement signed earlier
this month, the USSR will supply about $51 million
of the $89-million complex. The project includes
the construction of three peat-fueled power plants,
a dam, pumping station, and a water purification
plant. Payment is to be largely in the form of
Greek exports of agricultural products, with only
17 percent being made in hard currency.
Final approval from the Greek Government is
expected within two months. The agreement could
lead to an expansion of Greek-Soviet trade during
tho next several years by as much as 35 percent
annually. Nevertheless, the Soviet share in Greece's
total trade is likely to remain small,
Greek businessmen also are negotiating for the
purchase of Soviet equipment for a 450,000-ton
aluminum plant. They hope to pay for the plant in
commodities. Moscow previously had extended medium-
term credits totaling $88 million to a private Greek
firm for the purchase of ships, and a 1966 commer-
cial accord called for the Soviets to supply a $16-
million thermal power plant. Because of the sh.p-
ping company's financial setbacks, however, onl a
small part of the ship deal was consummated. (SL-
CRET NO FOREIGN DISSEM)
28 Nov 72
Central Intelligence Bulletin
Approved For Release 2005/06/09WCAPR-b5T00875R000800020267-3
5
Approved For Release 2005/06/0116)/M4185T00875R000800020267-3
THE NETHERLANDS: The government's inability
to deal effectively with pressing economic problems
will cost it votes in tomorrow's national elections,
but the minority center-right coalition is likely
to remain in power.
Prime Minister Biesheuvel has been vulnerable
to criticism that he has followed short-sighted
economic policies primarily designed to preserve
the fragile unity of his government. The four-
party coalition has long disagrecd over the need
for wage and price controls to combat inflation.
The opposition Progressive Bloc, led by the Labor
Party, hopes that voter dissatisfaction, and a
longer term trend toward the left, will give it
enough seats in the next parliament to form a mi-
nority government of its own.
The opposition, however, has had little success
in exploiting the economic issue. When the Labor
Party, supported by the trade unions, threatened
last week to call a full parliamentary debate un-
less the government imposed a price freeze, Bie-
sheuvel undercut the eleventh-hour challenge by
announcing selective price controls. The restraints
may temporarily slow inflation but are unlikely to
have any long-run effect. The consumer price index
rose over two percent in the past two months.
Biesheuvel's decision endangered a recent wage-
price guidelines agreement that had improved the
coalition's electoral prospects. The trade unions,
however, supported the government's decision. Al-
though employers claim that price controls will
upset the prior agreement on the 1973 guidelines,
they are willing to sign the accord after the elec-
tions. This support enabled the government in
parliament last week to rebuff the opposition's
demand for a full price freeze.
28 Nov 72
Central Intelligence Bulletin
(continued)
SECRET
Approved For Release 2005/06/09 : CIA-RDP85T00875R000800020267-3
6
Approved For Release 2005/06/098EMRP/15T00875R000800020267-3
Although the business-oriented coalition Lib-
erals may lose some snpport as a result of the price
restraints, the govermient parties together with
their one-time coalition partner, the Democratic
Socialists, should win close to half the vote, ac-
cording to recent polls. The Democratic Socialists,
who bolted the coalition last July when Biesheuvel
refused to adopt measures against inflation i prob-
ably believe his latest move will facilitate a
restoration of the five-party government. (CONFI-
DENTIAL)
28 Nov 72
Central Intelligence Bulletin
Approved For Release 2005/06/003BORIE5F85T00875R000800020267-3
7
Approved For Release 2005/06/0ffe2R9M5T00875R000800020267-3
.YPRUS: Campaigning for the presidential and
vice-presidential elections in February is already
under way.
President Makarios' second five-year term of
office ends in February, and he now appears assured
of a third term. He has outmaneuvered the island's
three Greek Orthodox bishops who had earlier th.,eat-
ened to defrock him if he ran. To avoid additional
moves by the bishops and to prevent his archenemy,
General Grivas, from mounting a major campaign for
his own candidate, Makarios intends to delay an-
nouncing his candidacy until the last moment.
Rauf Denktash, the Turkish Cypriot participant
in the intercommunal talks, is in an all-out fight
for the vice-presidency with Fazil Kuchuk, the in-
cumbent. Kuchuk has held the post--which constitu-
tionally goes to a Turkish Cypriot--since Cyprus'
independence. Denktash, who seems to have Ankara's
support, is favored to win, but the bitter contest
that appears to be developing may shatter the Turkish
community's traditional unii:y.
Meanwhile, with all eyes focnsed on the elec-
tions, prospects for early progress in the inter-
communal talks have disappeared. Both the Greek
and Turkish Cypriots believe that compromises in
the talks now would cost votes, and neither side
foresees any progress until after the elections.
(SECRET)
28 Nov 72 Central Intelligence Bulletin
Approved For Release 2005/06/0gtektEr5T00875R000800020267-3
8
Approved For Release 2005/06/0gEORlipp5T00875R000800020267-3
US-CHINA: Initial reports from the 1972 Fall
Canton Fair indicate a step forward in Sino-US trade
relations. Over 75 US firms attended the fair and
negotiated contracts in excess of $20 million.
Sales of.: US goods are estimated at about $13
million, hishlighted py a $10-nillion sale of syn-
thetic fibers by Monbanto. Some US firms were in-
vited to Peking for further business discussions
and others obtained interviews with Bank of China
officials. Additional US sales may result from
contacts made at the fair by such major US indus-
trial corporations as Alcoa, Dupont, and Uniroyal.
Total US purchases of Chinese goods reacted
at least $9 million, about double the transactions
at the spring fair. Chemicals accounted for about
$3.5 million, while other purchases included bris-
tles, nonferrous metals, firewcrks, handicrafts,
and light manufactures. Some buyers were disap-
pointed over high Chinese prices and shortages of
many goods. Lack of most-favored-nation tariff
status raised the price of some Chinese goods to
unprofitable levels. US importez3 reported the
Chinese willing to meet US administrative procedures
such as labeling requirements, el/en though they
have resisted such a practice with other traders.
US participation, however, remains comparatively
small. Total two-way transactions will probably ton
the $1 billion rung up at the spring fair. As usual,
the Japanese contingent was the largest and wrote the
most business. China continued the recent trend of
using the lairs primarily to promote export sales.
(CONFIDFNTIAL NO FOREIGN DISSEM)
28 Nov 72
Central Intelligence Bulletin 9
Approved For Release 2005/06/Rtntrr85T00875R000800020267-3
Approved For Release 2005/06/0-,? CM1g0P85T00875R000800020267-3
NOTES
USSR-CUBA: Two Soviet surface combatants and
a diesel attack submarine entered the Caribbean on
26 November. These ships, accompanied by a tanker
and an intelligence collection ship, are currently
south of Haiti and could arrive in Cuba W, Ln the
next two days. Soviet warships have madr iriodic
visits to Cuba since 1969, and if the un.,cs now en
route follow earlier patterns, they will conduct
antisubmarine operations with Cuban naval units.
(SECRET)
UN: As formal discussion of terrorism in the
General Assembly's legal committee draws to a close,
tough bargaining continues on the content of an anti-
terrorism resolution. The Arabs are still pressing
for a study of the causes of terrorism, not measures
to prevent it. The Arabs and Africans want the
resolution to protect "national liberation move-
ments" from condemnation. While the US still sup-
ports its original call for a diplomatic conference,
it considers w-.Iceptable a European resolution which
instead would ask the International Law Commission
to draft an anti-terrorism convention with a view
to its adoption in 1973. The European resolution
also reaffirms the right of self-determination as
outlined in the UN Charter and calls for the estab-
lishment of a committee to look into the causes of
terrorism. Any resolution, if it is to be adopted
by the legal committee, will have to contain at
least these minimal nods to Arab and Nfrican con-
cerns. (CONFIOENTIAL)
28 Nov 72
Central Intelligence Bulletin
10
Approved For Release 2005/069eRtilIDP85T00875R000800020267-3