WEEKLY REVIEW

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CIA-RDP85T00875R001000030003-1
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T
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40
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December 21, 2016
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April 21, 2009
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3
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Publication Date: 
February 15, 1974
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REPORT
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Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 C,/40c/ C/wR Too Secret Weekly Review LOAD! Ca-:' Return to U S11 IH 1107, 0q. State Dept. review completed Top Secret Copy No Approved For Release 2009/04/21 : CIA-RDP85T00875RO01000030003-1 425 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 flu: WEEKLY RE.VILW, issued every Friday morning by the (Jllicc of Current Intelligence? reports and analyzes si(Inif- icant devetolm ents of the week through noon on Thursday. It frequently includes inaterial coordinated with or prepared by the Office of E.conomic Research, the Office of Strategic Research, arid the Direc:loiato of Science and Technology. Topics roquirin) more comprehensive treatment and there- fore published ,eparalely as Special Reports are listed in the contents. CONTENTS (February 15, 1974) 24 American Foreign Ministers To Meet 25 Argentina: Peron and Youth 26 Colombia: Election and Beyond 27 Chile: Out in the Open SPECIAL REPORT (Published separately) Afghanistan: President Daoud's First Six Months Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 EAST ASIA PACIFIC MIDDLE EAST AFRICA 1 SALT Resumes 2 The Energy Conference 3 The Middle East 5 USSR: US Technology; Re-entry 6 EC To Discuss MBFR Issues 7 Eastern Europe - The Vatican: 9 Yugoslavia: Extremism Under Fire 10 Berlin: Back in the News Laos: Obstacles to a New Coalition Cambodia: Shell Shc .ked Philippines: Muslim Backlash Australia: Whitlam Scores 18 Jordan: Husayn Restores Order 19 Iran-Iraq: Unneighburly Neighbors 20 Cyprus: After Grivas 21 North Yemen: Out With the Old 22 South Africa: Seeking a New Mandate 23 India: Violence and Votes WESTERN HEMISPHERE 25X1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 SALT Resumes The US-Soviet negotiations on strategic arms limitations have entered a crucial phase. With the talks set to resume on February 19, both sides have made public commitments to reach a perma- nent agreement on offensive weapons this year. If even a partial agreement is to be achieved by the time of President Nixon's planned trip to Moscow in early summer, the negotiators will be under considerable pressure to find areas of accom- modation at this session. The problem facing the negotiators is both technical and political. They must find a formula to deal with existing strategic asymmetries in a wiy that preserves the national security interests of both sides. At the same time, the agreement must also be so constructed as to enable both to deal effectively with potential domestic critics. Thus far, the two sines have taken sharply diver- gent approaches to achieving their common objec- tive. The US wants to renegotiate the terms of the existing five-year agreement, adding strategic bombers to the inventory of weapons to be limited and setting equal numerical limits on the central strategic systems for both sides. Washing- ton also wants to place limits on the throw-weight of ICBMs, constrain qualitative improvements- e.g., MIRVs-and begin a program of active reduc- tions in strategic weapons. The Soviets would like to retain the nu- merical and throw-weight advantages they have under the interim agreement, although they have Page 1 expressed readiness to include heavy bombers in the systems to be limited. They justify their present advantages by arguing that what was equitable for the near term is also equitable over the longer haul, particularly if the US is unwilling to count its own forward-based nuclear systems and ;ose of its allies as strategic weapons. The negotiations have been further com- plicated by the vigorous pace of the Soviet arms buildup over the past year. The Soviets have begun testing new-generation ICBMs with greater accuracies and demonstrated MIRV capabilities. They have tested submarine-launched ballistic missiles to extended ranges and have continued to add to their submarine force. These and other less dramatic developments are consonant with the provisions of the interim agreement, but they have cast doubt on Soviet intentions at SALT nevertheless. Meanwhile, there is growing concern over the possibility that advances in weapons tech- nology may overtake efforts to impose political controls over weapons development. Whether or not the Soviets share the US concern on this score, they have continued, at least in public, to voice optimism about SALT's prospects. Writing in the latest issue of the journal USA, prominent Soviet military theoretician G. A. Trofimenko avowed that mutually satisfactory formulas could be found that would ensure the security of both sides, while taking into account existing asym- metries in the strategic relationship. Feb 15, 74 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 The Energy Conference The outcome of the Washington energy con- ference clearly highlighted France's isolated posi- tion and suggests some shift in the power relation- ships within the EC. Many of the proposed objectives of interna- tional cooperation that the conference endorsed were in the position paper approved by the EC Nine prior to the Washington meeting and were accepted by the French. France reserved its posi- tions on ` nancial measures, however, and refused to accept the establishment of a coordinating group of senior officiais to carry out energy pro- grams within existing bodies-a move endorsed by all other participants. Although ostensibly a procedural matter, the French maintained that these points raised the broad question of Europe's future relations with the US. They chose to stick to the view that acceptance of a coordinating group composed of conference participants amounted to another European capitulation to Washington's "domina- tion"-a charge to which many Europeans on occasion are sympathetic. In this instance, the French were unable to carry the other EC mem- bers with them, due in part to the Europeans' lack of confidence in their ability to cope with the energy crisis without US cooperation. The conference outcome also made clear that, with the EC's enlargement, Paris cannot in every instance call the tune. The Germans, who are in a strong position because they hold the presidency of the EC Council, would not go along with the French, particularly since Britain and the other EC members were not prepared to allow Pans to frustrate the goals of the contarence. Initial press reaction in Europe stressed con- cern over the effect that the evident disarray of the EC Nine would have or. European unity. A representative story in the Italian press criti;;ized French intransigence and noted that, one by one, the EC countries were aligning themselves with the Germans. One conservative paper commented that the European countries were torn between their desire to preserve European solidarity and the allure-which was simultaneously a threat-of the US invitation for cooperation. The prestigious Frankfurter Allge>meine commented that the meeting showed that the EC is "deeply ruptured" and that "France was prepared to allow unifica- tion of the Nine only on its own terms, the price of which would be a permanent conflict between Europe and America." A spokesman for the Organization of Petro- leum Exporting Countries picked up the French theme. He accused the US of attempting "to re-establish hegemony over Europe," adding that this was precisely why France objected to the US-initiated move. The immediate problems the community now faces are difficult. The EC governments have postponed two foreign ministers' meetings: ? One, scheduled for February 15, was to discuss the European-US declaration of princi- ples; the governments had also planned to an- riuunce after the meeting a wide-ranging offer of cooperation with the Arab states; ? The second, scheduled for February 18, was to have focused on regional policy. The French team Emphatic views 25X1 25X1 25X1 Page 2 Approved For Release 2009/04/21 CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 The Middle East Algiers Meeting The leaders of Egypt, Syria, Saudi Arabia, and Algeria met in Algiers this week to discuss Syrian-Israeli disengagement and to consider ac- tion on the oil embargo against the US. The ruler of Kuwait, who was invited but did not attend, indicated he would support the conference's de- cisions. The meeting was apparently promoted jointly by the Egyptians and the Saudis. Cairo press accounts noted that the con- ferees would discuss the possible separation of Syrian and Israeli forces, as well as "a unified formula for a plan of Arab activity in the coming stage." These vague formulations may, in fact, have covered a determination to persuade Syria's President Asad to begin disengagement negotia- tions with Israel. Asad's reluctance to open talks is not due to his own hesitation, however, but to opposition within the Syrian Army and Baath party. The other heads of state apparently hoped that pressing Asad directly and en masse would reinforce his own inclinations and strengthen his hand in dealing with doubters at home. Each of the participants has urgent reasons for wanting movement on the Syrian front. Egypt's President Sadat, to prove that he is not negotiating a unilateral settlement with israel, has publicly pledged that he will not move further until Syria also has a disengagement agreement. The longer Syria delays, the greater the danger that Sadat will be faced with discontent at home over lack of further progress. Sadat has also been urging that the oil em- bargo against the US be lifted, and Saudi Arabia and Algeria-for political reasons in the first case, economic in the other-would like to oblige. For the same reasons that hold Sadat back on further negotiations, however, neither King Faysal nor President Boumediene can afford to ease oil re- strictions until those restrictions have produced the same benefits for Syria that they appear to have yielded for Egypt. Disengagement on the Egyptian front, mean- while, is proceeding smoothly. On February 12, Israeli forces completed stage three of their four- stage withdrawal from the west bank of the Suez Canal. They now retain only the northern third of their west bank salient and are scheduled to with- draw from that portion by February 21. Disen- gagement is to be completed by March 5. UN forces have already placed boundary markers along the eastern and western limits of the UN buffer area that will separate the two sides. Along the Syrian front, by contrast, tension remained high throughout the week. Beginning on February 10, Syrian artillery shelled Israeli dosi- tions for three consecutive days. The Israeli press claims that the three-hour Syrian barrage along the entire front on February 11 was the heaviest since tha October war and that for the first time it included Israeli civilian settlements. Two civil- ians reportedly were killed. The February 11 attacks, according to the US Embassy in Tel Aviv, violated a tacit Syrian- Israeli understanding that the Israelis would re- frain from retaliatory air strikes so long as the Syrians limited their attacks to military targets. Despite this alleged violation, the Israelis are, for the present, inclined to avoid heavy retaliation that could upset current diplomatic efforts to launch Israeli-Syrian negotiations. According to Israeli Foreign Minister Eban, Tel Aviv feels that the Syrian attacks reflect Damascus' political frustrations rather than a desire for renewed hostilities. Israeli forces did step up their shelling of southern Lebanon early this week in retaliation for two recent cross-border attacks by the feda- yeen. One Israeli soldier and one civilian were killed in the attacks. Lebanese Government spokesmen have been unusually candid in acknowledging that fedayeen initiatives have prompted the Israeli shellings, but the Lebanese Army has only a limited ability to control feda- yeen activities in the border area. Page 3 WEEKLY REVIEW Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 Moscow's interest in Western, especially US, technology has flourished over the past five years or so. In pursuing trade deals, cooperation agree- ments, and bilateral technological contacts, the USSR has been more aggressive than at any time since the 1920s. Soviet leaders recognize that rapid economic growth can be achieved once again only by accelerating technological progress. The USSR has been relatively inefficient in devel- oping and applying new technology, however, forcing Moscow to turn increasingly to the West for assistance. The revival of Soviet interest in US products and technology is partly political, but it is also in line with the traditional policy of acquiring the most advanced technology available. In some areas, such as oil field equipment for Arctic ex- ploration, US firms are the only source in the eyes of the Soviets. US companies also are the preferred sources of automotive equipment, com- puter hardware and software, and civilian aircraft technology. If contracts cannot be reached with US companies, however, the Soviets recognize that other countries often can provide technology that is as good or almost so. The USSR has, for example, bought computer hardware and some kinds of automotive equipment and machine tools from Western Europe and Japan. The onset of detente has lowered some of the traditional obstacles to Soviet acquisition of US technology. The extension of medium- and long-term credits by the US ?fter May 1972 re- sulted in a large increase in Soviet imports of US equipment and technology. Relaxation of US ex- port controls has ako contributed to the rise in imports, although controls continue to limit ac- cess to very specialized and sophisticated tech- nology. The major means of acquiring technology from abroad is the outright purchase of machin- erv and equipment. Other channels used by the Soviets have included the acquisition of technical data, contacts with Western firms and scientists, and formal arrangements for joint research and exchange of scientific and technical information. None of these has lived up to Soviet expectations, however. Western equipment frequently is not as productive under Soviet conditions, and attempts to exploit foreign technical data or to copy for- eign machinery have had mixed success. Because machinery imports-especially "turn-key" plants-are expensive, the Soviet lead- ership is trying to hold down the cost of acquiring foreign technology in this manner. The most prominent innovation is a push for cooperative economic ventures that provide for the export to the USSR of equipment and technology on long- term credits, which are ?epaid by deliveries of the goods produced by the venture. As an alternative means of acquiring technol- ogy, the USSR is also pressing strongly for in- creased cooperative research with private firms. More than 20 such agreements have already been concluded with US firms. Most hold out the promise of tangible technological gains for the USSR, while Western companies hope to enhance their sales prospects in the USSR. There is little prospect that transferring tech- nology from the US to the USSR will have a substantial influence on Soviet economic devel- opment. Although machinery imports and the acquisition of technical data from the West will continue, they are likely to be too small in scale to have a substantial impact on Soviet economic and technical development. The sum total of technology acquired from the industrial west will be more impressive, but the influence of such transfers depends above all on how rapidly they can be assimilated and duplicated. Ultimately, the USSR must depend on its own applied research and development sector to close the technological gap with the West and to boost iti own Prnnnmir growth. Page 5 Feb 15, 74 Approved For Release 2009/04/21 : CIA-RDP85T00875R001000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 Bonn succeeded last week in securing French agreement to participate in an EC discussion of problems raised by proposed force reductions in Europe. The West Germans lobbied successfully for the establishment by the EC Political Commit- tee of an expert working yroup that will meet early next month to begin discussions. The main task will be to examine in deta;l the implications of the MBFR negotiations for European integration, especially in the area of defense cooperation. The working group's man- date, however, is broadly worded to include any relevant international negotiations or agreements. In endorsing the working group, the French may intend to raise issues related to SALT and the US-Soviet agreement on the prevention of nuclear war. Paris has repeatedly argued that both imply a weaker US commitment to the defense of West- ern Europe. The greatest obstacles confronting Bonn in it.; efforts to establish the working group have been the reluctance of several EC member states to debate defense questions it the EC, and France's strong opposition to MBFR. An informal caucus of EC countries emerged at the end of the last round of negotiations in Vienna, but Bonn opposes the institutionalization of this caucus b2- ca,ise it would pose a threat to allied unity and omit some community members-such as France. West German officials concede that the French, and perhaps the British, might use the new EC forum to speak out against the force reductions talks in the hope of slowing their progress. The Western participants at the negotiations in Vienna hope to postpone consideration of West European force reductions until a second, later Page 6 WEEKLY REVIEW Feb 15, 74 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 phase of the talks. Nevertheless, West German officials maintain that the time is ripe for the EC, as well cis NATO, to reach a consensus on what reductions might be compatible with Western Europe's security. In Bonn's view, the working group will not only serve this purpose but will force Paris to set forth its views more fully on issues related to MBFR. Bonn's heightened concern about the impact of force reductions on the defense of Western Europe does not necessarily mean That the Ger- mans are moving toward the generally negative British and French view. On the contrary, Bonn is seeking greater coordination so that the reduc- tions in West European forces in the second stage will not interfere with closer European defense cooperation. West German Disarmament Commissioner Roth recently expressed the view that NATO should negotiate a common ceiling or, forces and should insist that the distribution of Western reductions be determined by NATO with recom- mendations from the community. Roth stressed that the Soviet proposal for a specific ceiling on West German forces must be rejected. The policy outlined by Roth now appears to have the general support of the Defense Ministry officials who have been eager to reduce West German forces for political and financial reasons. These officials still seek US assurances that a second stage will occur and that the concept of a common ceiling will be maintained. They are also generally opposed to singling out West German forces in a second stage and are drawing up plans for a mixture of allied reductions that would meet West Germany's minimum defens ments. Eastern Europe - The Vatican GESTURES TOWARD ACCOMMODATION The enforced retirement of Jozsef Cardinal Mindszenty as primate of Hungary and Arch- bishop of Esztergom. together with the visit of Vatican "foreign minister" Casaroli to Poland last week, demonstrate the Vatican's interest in Page 7 improved relations with Eastern Europe. In each instance, the Vatican's actions also appear in- tended to signal a more pragmatic approach to church-state relations in the communist-governed countries. With apparent approval from Moscow, the East European regimes with large Roman Catholic populations are responding in kind. The Soviets probably feel that in an era of detente, with East-West contacts increasing, it is well to neutral- ize a potential source of internal discord. The 81-year-old Mindszenty, all but offi- cially retired since his departure from the US Em- bassy in Budapest in late 1971, has continued to be a symbol of resistance to the Hungarian Com- munist regime. Although his removal opens the way for improved church-state relations in Hun- gary, any real amelioration in the church's plight will come slowly. In conjunction with Mind- szenty's dismissal, the Vatican was able to fill an archbishopric that has been vacant for two years and to appoint a temporary administrator for Esztergom, the archbishopric that includes Buda- pest. A permanent successor to both of Mind- szenty's positions will probably not be selected until the Cardinal dies. The removal of Mindszenty on February 5 followed by one day Casaroli's arrival in Warsaw. The coincidence of the two events may have been intended to remind Poland's primate, the con- servative Cardinal Wyszynski, that he also may eventually have to show more flexibility toward the state in order to permit formal Vatican-Polish ties. Feb 15, 74 Approved For Release 2009/04/21 : CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 ROMANIA: MIDDLE EAST TOUR President Ceausescu's current swing through four Arab capitals marks a high point in his drive to justify Romania's neutralist Middle East policy and to head off Arab plans to boycott Romanian exports. Ceausescu will also use the tour to nur- ture the impression at home and abroad that Romanian diplomacy is facilitating the Arab- Israeli peace negotiations. Ceausescu's delegation spent February 12-13 in Tripoli, will be in Beirut until February 17, and will visit Damascus and Baghdad before returning to Bucharest on Feb- ruary 21. The Romanian press buildup for the trip suggests that Ceausescu will offer limited political and economic concessions, but will not bow to Arab demands that Romania break diplomatic relations with Israel. The Syrian and Iraqi visits could prove especially trying as the Romanians will face Arab leaders who have been particularly vociferous advocates of a boycott of Romanian goods. A preliminary recommendation for eco- nomic sanctions against Romania already awaits action by the Arab League. The Romanian Presi- dent's personal efforts to avert a boycott will probably feature attractive offers of Romanian oii-extraction equipment and technology as well as selective political support for Arab goals. in addition, Ceausescu will probably try to get more Arab oil to continue Romania's lucrative and growing exports of refined petroleum products. The Zomanians endured an Arab boycott aft-3r the 1967 Middle East war, though without serious privations, and appear determined to do so again rather than allow third parties to com- promise their bilateral relations. Moreover, a re- fusal to break ties witn Israel would probably help, as it did during the 1967 boycott, to expand Bucharest's profitable trade with Tel Aviv and West European capitals. Even if Ceausescu fails to head off economic sanctions, he hopes that his tour will still serve Romanian national interests. Bucharest was frustrated in its attempt to partici- pate in the UN Emergency Force last November, and Ceausescu can be counted on to use his current trip to show that Romania cannot be excluded from playing a role in the Middle East. Bucharest will also find ways to drive home this message in Moscow and Belgrade, which bitterly YUGOSLAVIA: EXTREMISM UNDER FIRE Yugoslav party leaders are stepping up prep- arations for republic and federal party congresses this; spring to include a drive against extremists. These efforts to achieve ideological "purification" have increasingly shifted away from attacks on liberals and nationalists, however, to focus on the threat posed by "neo-Stalinists." The most striking example of this shift oc- curred during a meeting last week of the Croat party central committee, during which veteran party leader Vladimir Bakads leveled a blast at what he called a "centralist faction." He charged that this faction is vigorously pressing for I-rge- scale personnel changes, for a radical restructuring of the party along Soviet lines, and for the total domination of society by the party. He also charged that the group is undermining Yugo- slavia's own form of socialism. Other Croat lead- ers have since joined the fray, labeling the faction "Stalinist" , nd warning that other republics face the same danger. Other republic party organizations are echo- ing these warnings. In Serbia, where there have been strong pressures for further purges of liber- als, party leaders are now cautioning against new witchhunts and against ideological fanaticism that can do more harm than good. Stane Dolanc, sec- retary of the party's powerful executive bureau, has also consistently pointed to the danger from "Stalinists." This change of focus will cause confusion in the party, particularly among middle- and low- level functionaries who will find it difficult to shift their attention suddenly from liberal to con- servative extremism. Generally, however, the party leaders' new tack may induce zealots of all Page 9 Feb 15, 74 Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 gate some form of unilateral East German action to change the status of East Berlin, but this might weaken the Soviet rationale for a continuing four- power administration in the Western sectors. Traf- fic to West Berlin might be restricted-the East Germans did, in fact, impose special traffic con- trols on January 26, possibly as a demonstration of what could happen. The East Germans were careful, however, to explain that the measures were taken in connection with a "search for wanted criminals." Selective action against en- vironmental office staffers, threatened earlier, also remains a possibility. This kind of interference, however; if carried too far, could upset Soviet - West German re- lations at a time when Moscow is interested in obtaining economic assistance from Bonn. Mos- cow may also be hesitant to take strong coun- termeasures for fear of souring the atmosphere 25X1 for Brandt's projected trip to the USSR which will probably take place this spring. Page 10 WEEKLY REVIEW Feb 15, 74 Approved For Release 2009/04/21: CIA-RDP85TOO875RO01 -- -------------- Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 stripes to lie low. As a result, intra-party faction- alism may be muted, thus permitting the leader- ship to claim that all deviationist elements have Berlin has re-emerged as a problem in recent weeks, confounding hopes that the 1971 Quadri- partite Agreement would remove it as a source of East-West contention. The current controversy centers on West Germany's decision to open a federal environmental office in West Berlin, a move the Soviets strongly oppose. Soviet Foreign Minister Gromyko took a hard line on the subject during his recent visit to Washington. In Berlin itself, French Ambassador Sauvagnargues came away from a meeting with Soviet Ambassador Yefremov on January 30 im- pressed by the latter's "firmness." Yefremov re peatedly stated that Moscow "will not accept dri increase in the federal presence and there will be a corresponding reaction." Soviet radio broadcasts to West Germany have reiterated the threat. The seeds of the dispute over the environ- mental office -vere planted at the time the Quad- ripartite Agreement was negotiated, because nei- ther side changed its fundamental approach to Berlin matters. As a result, contradictory con- cepts-and ample room for contrary interpreta- tions-were incorporated in the agreement. It was inevitable that a long process of testing and defi- nition would take place. The Soviets have persist- ently fought for a narrow interpretation of West German - West Berlin ties while seeking to expand their own presence in the Western sectors. They apparently regard the environmental office as a qualitative jump in Bunn's efforts to tighten its links with West Berlin and, therefore, as a poten- tially dangerous precedent. Despite their vociferous objections, the So- viets have so far taken no concrete action. In any event, their options are limited. They could insti- Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 Hanoi has apparently held two Central Com- mittee plenums in the past few months that, together, lay out Communist plans and strategy for the next couple of years in both North and South Vietnam. The earlier of the plenums-the party's 21st-was apparently held last fall and concen- trefed on future action in the South. The North Vietnamese have not mentioned it publicly, but recently begun to provide detailed information on the resolution that resulted: ? The Communists must be ready to go on the offensive again sometime in the future; ? such an offensive is not near at hand, and* for now the Communists are to re- strengthen their forces, defend their territory, and improve their political position; ? it may be years before these efforts bear fruit in the sense of final victory. In contrast to the 21st plenum, the 22nd was reported immediately by North Vietnamese media. It apparently was concerned mainly with the reconstruction of North Vietnam. According to initial reports, it laid down ambitious guide- lines for a five-year plan beginning in 1976. and for one-year plans in the two intervening years. 25X1 the main mes- sage of the 21st plenum is that during the next two years the party will continue to strengthen all facets of its struggle in the South. During this process, the party will carry out selective military actions along with "political violence" in order to weaken Saigon. The implication is that the time is not favorable for a general or major country-wide offensive since the "base" for such an offensive is still being built. The party's assessment of the situation in the South was that "revolution" at the grass roots is in serious disarray and needs much improve- ment before either political or military success is feasible. The Viet Cong control few people, have lost access to the bulk of the population, cannot find recruits for guerrilla units, and are experienc- ing serious economic problems. The party ac- knowledged, moreover, that the South Viet- namese Government has increased its influence in the countryside, noting that it is stronger than before "from the central level to the village and hamlet level." Saigon is also given good marks for its "well-trained and well-equipped" army, its ef- fective internal security forces, and its psychologi- cal warfare operations. On the positive side, the resolution observes that the Communists control vast areas of western South Vietnam and have free access all along its borders. In addition, the Viet Cong are to receive considerable economic help from the "socialist" and "independent" countries. All of these factors are important to building up strength in the South. One of the more revealing aspects of the document is an apparent credibility problem Page 11 WEEKLY REVIEW Approved For Release 2009/04/21 : CIA-RDP85T00875R001000030003-1 Approved For Release 2009/04/21: CIA-RDP85T00875RO01000030003-1 between lower level Communists and the party leadership. Local Communists are told explicitly that, despite their confusion and puzzlement, they must have confidence in their leaders and follow party guidance. The resolution points out that even during times when things looked bad, the party leadership ultimately developed a suc- cessful strategy. The message for local Viet Cong advocates of a major offensive is that only the leadership can determine the timing and propriety of such a policy. Page 12 WEEKLY REVIEW Feb 15, 74 Approved For Release 2009/04/21 : CIA-RDP85T00875RO01000030003-1 25X1 Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 The Lao Communists do not recognize the au- thority or legitir'acy of the National Assembly. They would prefer to bypass it completely and submit the new government directly to the King for approval. The King, however, is a strict con- stitutionalist and has consistently maintained that assembly ratification must precede royal inves- titure. LAOS: OBSTACLES TO A COALITION Prime Minister Souvanna still hopes to form, or at least name, a new coalition government by February 21, the first anniversary of the Laos peace agreement, but his self-imposed deadline may not be met. Although neutralization of the twin capitals of Vientiane and Luang Prabang is progressing smoothly and restive students have for the most part returned to classes, difficult political problems remain. Not only has the chief Pathet Lao political negotiator, Phoun Sipraseuth, failed to give Souvanna a promised list of Lao Communist candidates for cabinet positions in the new government, but a constitutional hassle over the coalition's investiture appears to be brewing. Phoun, who returned to Vientiane on Feb- ruary 9 following three weeks of "consultations" at the Lao Communist headquarters in Sam Neua, has reportedly only presented Souvanna with a new letter from his half-brother, Pathet Lao leader Prince Souphanouvong. Souvanna has in- timated to a US Embassy official that the "letter" deals with the procedures required to invest the new government. The Communists, according to Souvanna, re- main strongly opposed to submitting the mem- bers of the new coalition to the existing National Assembly for approval. They apparently also object to his scheme of merely "notifying" the assembly of the new government's composition. A joint police accord But no cabinci list Souvanna himself is reluctant to face the assembly on this matter because it is dominated by his rightist political opponents. They have expressed frequent misgivings over his handling of negotiations with the Communists, and they will almost certainly insist on having some say in the new government's formation. Page 13 WEEKLY REVIEW Feb 15, 74 Approved For Release 2009/04/21: CIA-RDP85T00875R001000030003-1 Approved For Release 2009/04/21 : CIA-RDP85T00875RO01000030003-1 r I# 6., flrilN! ' fly"~.' Aft4', 11.1) (Illy,, III rt?I,tlivr? t ahn, 1