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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Department review completed
Secret
N2 41
7 April 1973
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No. 0084/73
7 April 1973
Central Intelligence Bulletin
CONTENTS
AUSTRALIA: Outspoken anti-US Senator could further
complicate US-Australian relations. (Page 1)
LIBYA: Libyans acquire French air-to-air missiles.
Page 3)
NATO: Europeans reluctant to endorse collective
anti-terrorism measures. (Page 4)
INDIA: Government more forthcoming on private in-
vestment. (Page 5)
INDIA: Mission to Dacca fails (Page 6)
TURKEY: Election of Koruturk to presidency ends
long delay (Page 6)
EC-USSR: Soviets make large agricultural purchase
Page 7)
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AUSTRALIA: The election of an outspoken,
anti-US Labor senator as chairman of the key par-
liamentary committee on foreign affairs and defense
could further complicate US-Australian relations.
It will not, however, endanger continued control
by moderates over the Australian Labor Party and
government.
Senator John Wheeldon has been a sharp critic
of US Indochina policy and of American defense and
scientific installations in Australia. His election
will ensure that the future of these installations
will continue to be sharply debated within the party.
Most immediately, Wheeldon's concern can be expected
to focus on the proposal for the construction of an
OMEGA navigational aid station in Australia. Al-
though both Whitlam and Defense Minister Barnard
are in favor of this project, they have to maneuver
OMEGA around this and other left-wing roadblocks
before parliamentary approval can be nailed down
and the proposal submitted for cabinet approval.
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Matra Air-to-Air Missiles
Length
Weight
Maximum speed
Range
Guidance
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LIBYA: Some aircraft in the Libyan Air Force
are now equipped with French-built air-to-air mis-
siles.
According to the French military counselor in
Tripoli, Libya has been provided with Matra R530
missiles, and Libyan Mirage aircraft on strip alert
at Uqba bin Nafi Airbase near Tripoli are armed with
them. The counselor further stated that Libya prob-
ably also would receive the Matra R550 missile in
the near future.
aerospace industry and access to Libyan oil are ad-
ditional factors motivating France's willingness to
The Matra R530 will significantly improve the
defensive capabilities of the Libyan Air Force.
Until now, the only known armament on the Libyan
Mirages was 30-mm. cannons. Acquisition of the
Matra R550 will further upgrade these capabilities.
The R550 is France's newest air-to-air missile and
is scheduled to replace the US-built Sidewinder on
French interceptors during 1973.
The French view the sale of arms to Libya as
a logical continuation of France's policy of main-
taining and developing close ties with the Arab
states. Such sales to Libya do not contradict
France's Middle East embargo policy, which is di-
rected only at those states defined by Paris as
belligerents in the 1967 war. Income for the French
satisfy some of Tripoli's military requests.
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NATO: The reluctance of the European members
of the lliance to endorse collective measures to
deal with terrorism was confirmed in the North At-
lantic Council meeting this week.
They agreed that diplomatic representations
to the Arab governments should be made by individ-
ual countries, that any other anti-terrorist activ-
ities undertaken by member states should not carry
a NATO label, and that NATO should not duplicate
the efforts of other organizations. The members
also agreed to press for the completion at the next
UN General Assembly of a convention on the protec-
tion of diplomats and to coordinate their strategy
in the ad hoc committee on terrorism.
The foreign ministers of the European Commu-
nity, who discussed terrorism last month, were sim-
ilarly reluctant to take meaningful collective ac-
tion. They agreed only to reactivate two committees
that have been studying, among other things, ways
of increasing the exchange of information on ter-
rorist activities.
Most of the West Europeans feel that making
concerted demarches to Arab governments would be
unproductive at this point, several weeks after the
Khartoum murders, and might cause substantial resent-
ment. At the NATO meeting, the Belgian representa-
tive said that the NATO countries should not seem
to be "ganging up" on the Arabs. At the EC meeting,
several countries that had not been hard hit by ter-
rorism expressed the fear that if they took part in
collective action, they might become future targets.
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INDIA: The government's attitude toward pri-
vate foreign investment appears to be softening.
Senior Indian officials, who met recently with rep-
resentatives of a US pharmaceutical firm, agreed
to consider the 61-percent equity holding demanded
by the US firm for its proposed expanded operations
in India. The officials also promised a prompt de-
cision. Previously, the government has tried to
reduce foreign equity in Indian firms to no more
than 40 percent.
Indian officials have indicated privately that
New Delhi also intends to increase sharply minerals
development, and to invite foreigners--including
Americans--to invest in construction, design, and
supply of equipment. New Delhi's existing policies
have deterred foreign investors, and virtually no
new net investment flowed into India last year.
A more flexible government policy resulting in
increased private foreign investment may stimulate
some growth in the industrial sector, which remains
in the doldrums. This would be particularly impor-
tant in view of recent government measures restrict-
ing domestic credit, which probably will have
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INDIA: P. N. Haksar, Prime Minister Gandhi's
special envoy to Bangladesh, apparently has failed
to persuade the Bengalis to drop their demand that
Pakistani recognition of Bangladesh must precede
the release of any of the 90,000 Pakistani POWs
held in India. Moreover, the Bengalis, according
to Bangladesh Foreign Minister Hossain, still plan
to try some of the POWs for war crimes. Haksar ap-
parently will not go to Islamabad, as earlier re-
ported in the press, in light of his failure to
achieve a breakthrough in Dacca. Mrs. Gandhi is
concerned over growing foreign and domestic criti-
cism that she is holding the POWs illegally, but
she appears reluctant to put undue strain on New
Delhi's good relations with Dacca by using the
considerable leverage India could em to on Bengali
leaders.
TURKEY: The 25-day deadlock over the presi-
dency ended yesterday with the election of Senator
Fahri Koruturk. The 70-year-old former admiral
received the necessary majority vote in the legis-
lature on the 15th ballot, after Turkey's three
largest parties agreed on him as a compromise can-
didate. He is reported to be a moderate who has
avoided close contact with political parties since
he was appointed to the Senate in 1968. Koruturk
was commander of naval forces when the military
overthrew the government in May 1960. Although not
a member of the coup group--in fact he left the navy
shortly after the revolution--he was named by the
ruling junta to be ambassador to the Soviet Union
in June 1960 and rved there four years.
(continued)
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EC-USSR:. The EC Commission has approved the
sale to the Soviet Union of 200,000 metric tons of
butter from community stockpiles. The EC's growing
butter stocks, now over 400,000 metric tons, were
likely to exceed storage capacity by the end of the
year, and the Commission argued that it was cheaper
to sell butter at give-away prices than to stockpile
it. The sale price, at $400 a metric ton, is nearly
$370 million less than what the community paid for
the butter, at $2,244 a metric ton. This will likely
further arouse the critics of the common agricul-
tural policy. Still reluctant to deal directly with
the Commission, the Soviets contracted for the butter
through a French cooperative reportedly controlled
by the Communist Party. As one condition for the
sale, however, the Commission is stipulating that
packaging clearly show the EC origin.
7 Apr 73 Central Intelligence Bulletin
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