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CENTRAL INTELLIGENCE AGENCY
THE PRESIDENT'S
.DAILY BRIEF
11 OCTOBER 1965
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DAILY BRIEF
11 OCTOBER 1965
1. Indonesia
Sukarno's return to Djakarta has
yet to slow the army drive against the
Communists.
numerous
anti-Communist demonstrators con-
tinue to attack and burn Communist of-
fices, bookstores, and homes.
Theituation could change 1'a-di-
cally should Sukarno decide forcefully
to reassert his authority and thereby
force a confrontation.
The confrontation may come over
the naming of a successor to the mur-
dered army commander. Army generals
are reported unanimously agreed to sub-
mit only one name--that of General
Suharto--as their choice. It remains
to be seen whether they will stick with
this position or whether Sukarno will
maneuver them into accepting someone
more amenable to his own will.
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2: India-Pakistan
3. Congo
Tanzania
There have been no reports today
of any incidents along the line of
military confrontation.
The Indians are continuing to
have trouble with pro-Pakistan ele-
ments in Kashmir. They claim to have
killed or captured some 30 Pakistani
infiltrators there during the past few
days and several pro-Pakistan political
leaders in Kashmir have been arrested.
Portions of the principal city in Indian
held Kashmir were placed under curfew
last night after a weekend of rioting.
The fragile political structure
is threatened again.
President Kasavubu is under strong
pressure to drop Tshombe as premier
shortly after parliament reopens on
Wednesday. He suspects Tshombe of ma-
neuvering to replace him as president.
Interior Minister Nendaka, for his own
reasons, is urging Tshombe's ouster.
The ambitious Nendaka, who recently
formed an anti-Tshombe political alli-
ance, is seeking support from the radical
African states which have been aiding
the Congolese rebels. His goal seems to
be to get them to stop supporting the
rebels so that Tshombe's mainstay, the
white soldiers, can be removed.
Congo Army Chief Mobutu is worried
and fears that the excitable Nendaka
is "on the brink of committing grave er-
rors."
President Nyerere is cutting off
support for the Congolese rebels.
He told Ambassador Leonhart last
weekend that he still regards Tshombe
as a traitor to the African cause. How-
ever, he said, he now realizes that the
rebels are a "worthless and corrupt lot"
Nyerere added that he had informed
the Soviet and Chinese ambassadors that
arms shipments to the rebels through
Tanzania must cease at once.
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5.
Dominican
Republic
Uruguay
The long-delayed process of re-
integrating the rebel zone into the
rest of the city got off to a cautious
start today.
Elements of the National Police
moved into a corner of the zone this
morning and occupied a building that
is to serve as their temporary head?
-
quarters. They were greeted with
handshakes by the rebels.
If all goes reasonably well, the
police will expand their area of con-
trol to include the whole zone and then,
in a few days, the Inter-American
Peace Force is to remove its check-
points and perimetercontrols.
Only a token quantity of weap-
ons has been collected from the
rebels, however, and military and
police officers are jumpy.
Ambassador Bunker, who toured
the zone yesterday, found rebel mili-
tary officers and men anxious for a
speedy reintegration. Armed extremists,
however, could easily upset the pro-
cedures,and in the present climate a.
resumption of violence is always a
possibility.
The government has imposed strict
security measures on the eve of a poten-
tially serious Communist-led strike set
for Wednesday. Today's Annex reviews
the prospects for Uruguay in the face
of a badly deteriorating economic and
political situation.
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7. North Vietnam
8. South Vietnam
The Liberation Front has called
for a month of "hatred of the US,"
beginning on 15 October. The Viet Cong
radio is currently putting out an extra-
ordinarily high volume of material on
this subject--including an appeal for
a general strike and stepped-up sabotage
activity.
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ANNEX
The Situation in Uruguay
Uruguay for many years was outstanding in Latin
America for its political stability. General eco-
nomic well-being, a high literacy rate, a two-party
system, and an advanced social welfare program have
facilitated the maintenance of representative gov-
ernment and democratic institutions.
For the past decade, however, there has been
a slow decline in the country's fortunes. This stems
in large part from the awkward administrative system
at the top. Instead of having a single president,
Uruguay is governed by a nine-man National Council
with six representatives from the majority party
and three from the minority. This device has been
successful in preventing one-man rule, but it has
led gradually to a paralysis in decision making.
At the same time, there has been a steady de-
cline in the Uruguayan economy. Agriculture has
stagnated and an industrial recession has set in.
Unemployment has risen to about 12 percent of the
labor force and the cost of living is likely to in-
crease more than 60 percent this year. The gov-
ernment can no longer support its extensive wel-
fare system. Uruguay also faces a balance of pay-
ments crisis.
? This pattern of economic deterioration has
intensified dissatisfaction among almost all elements
of the population. This dissatisfaction is being
directed increasingly against the government system
itself. There have been numerous proposals for
change, but no agreement on what form the changes
should take. The possibility of a rightist coup
has increased materially as chances of reform have
receded.
At this point, however, the immediate problem
lies with the large and legal Communist Party. With
some 15,000 members, it either controls or influences
most labor unions as well as student groups and in-
tellectuals. Until recently the Communists have
(Cont' d)
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ANNEX (Cont'd)
been careful to keep strikes and demonstrations
within acceptable bounds. Their aim has been to
prevent any right-wing group from getting an ex-
cuse to seize power.
In recent weeks, however, the Communists have
gone on the offensive. Late last month they began
a new wave of :harassments to protest; their economic
grievances. Now they have called for a 72-hour
strike of government workers beginning on Wednesday.
Their aim is to force a 50-percent wage increase be-
fore a year-long wage freeze takes effect in Novem-
ber. The Communists have no illusions that they
could overthrow the government. Their armed strength
is essentially defensive--a contingent of 300-400
Men organized specifically to oppose a military take-
over.
The government at this point is refusing to
meet the workers' demands. The regime in fact now
seems determined for once to stop further inflation
and move ahead with long overdue economic austerity
measures.
In the past, however, the government has backed
down in the face of this kind of pressure. If it
does this time, it will quash any hope for economic
reform and increase the chance of a rightist coup.
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