CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A024600120001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 14, 2016
• Document Release Date: August 12, 2003
• Sequence Number: 1
• Publication Date: June 14, 1973
• Content Type: REPORT

Approved For Release 2003/08/27 : CIA-RDP79T00975AO246OW00011-5
25X1
Central Intelligence Bulletin
Secret
N2 040
14 June 1973
Approved For Release 2003/08/27 : CIA-RDP79T00975AO24600120001-5
 25X1 Approved For Release 2003/08/27 : CIA-RDP79T00975AO24600120001-5
Approved For Release 2003/08/27 : CIA-RDP79T00975AO24600120001-5
 Approved For Release 2005 BffA-RDP79T00975A024600120001-5
No. 0142/73
14 June 1973
Central Intelligence Bulletin
CONTENTS
NATO: Ministerial meeting starting today may gener-
ate considerable friction. (Page 1)
WEST GERMANY : The mark moves up,. (Page 3)
Approved For Release 200?08TZ7-'CI'A-RDP79T00975A024600120001-5
 Approved For Release AA/U~>~`/27'CIA-RDP79T00975A024600120001-5
NATO: The difficult questions the NATO minis-
terial meeting will be dealing with starting today
could generate considerable friction.
Of most pressing concern will be a review of the
results of the CSCE and MBFR preliminary talks and
the efforts to untangle the dispute over their schedul-
ing. The allies seem reasonably happy with the sub-
stance of these negotiations and may approve MBFR
guidelines that closely follow the US position paper.
Some of them, however, have reservations about the
procedures that have been followed and feel that the
US is not being tough enough. Canada, Holland, and
Belgium may continue to insist that confirmation of
a 3 July opening date for CSCE--agreed upon in Hel-
sinki last week--be withheld until the Soviets consent
to a definite starting date for MBFR.
Late last week, Belgium took the unprecedented
step of boycotting an alliance meeting in Vienna to
protest the failure to obtain a date, and to show
displeasure with East-West consultative procedures
that it feels do not adequately involve all the
allies. Since then, Brussels has informed the press
of its boycott and suspicions of superpower col-
lusion.
The ministers will also take up the perennial
question of burden-sharing. Although Europeans
anticipate that they will be under exceptionally
strong pressure from Washington, they seem unlikely
to agree to anything stronger than a commitment to
study the problem. Initial reactions to US sugges-
tions that new cost-sharing arrangements be worked
out have been cool. A number of allies have ques-
tioned the dimensions of US balance-of-payments
problems and have suggested that other countries
also incur costs in stationing forces elsewhere in
Europe. Some believe any new arrangements to help
the US will compete with efforts to maintain Western
Europe's own forces.
(continued)
Central Intelligence Bulletin
SECRET
Approved For Release 2003/08/27 : CIA-RDP79T00975A024600120001-5
 Approved For Release 2003/0bY* A DP79T00975A024600120001-5
The NATO ministers are expected to discuss ex-
tensively--both in the meeting and in the corridors--
the recent US request that a. new "declaration of
principles" on US-European relations be drafted.
No definite conclusions are likely to be reached.
Some of the ministers may feel that the effort to
draft such a general declaration at this time would
aggravate rather than ease the specific problems
the alliance now faces.
Central Intelligence Bulletin
25X1
SECRET
Approved For Release 2003/08/27 : CIA-RDP79T00975A024600120001-5
 Approved For Release 2003/g t7R(pPfRDP79T00975A024600120001-5
WEST GERMANY: The mark, which had been at or
near the bottom of the joint European float, moved
to the top on 12 June. The recent tightening of
fiscal and monetary restraints, including the setting
of the Bundesbank's rediscount rate at a near record
high, probably contributed to the rise of the mark.
The mark's upward movement, although not unex-
pected, points up a possible dilemma for German
policymakers between moderating inflation and co-
operating with Bonn's partners in the joint float.
If the new measures appear to be easing inflation,
the mark could appreciate further and raise the
entire floating band to a level unacceptable to the
other members, particularly France. On the other
hand, if the anti-inflation measures prove inade-
quate, Germany probably will be forced to consider
stronger restraints, even at the risk of jeopardiz-
ing the joint float.
14 Jun 73 Central Intelligence Bulletin 3
25X1
Approved For Release 2003E RDP79T00975A024600120001-5
 Approved For Release 2003/08/27 : CIA-RDP79T00975AO24600120001-5
Secret
Secret
Approved For Release 2003/08/27 : CIA-RDP79T00975AO24600120001-5