Document Number (FOIA) /ESDN (CREST):
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EM3 !MEI EMI EMI
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THE PRESIDENT'S
INTELLIGENCE CHECKLIST
ISSUED BYTHE
CENTRAL INTELLIGENCE AGENCY
11 DECEMBER 1962
-ref-SEC.REL___
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1, India-China
2. Congo
a. Galbraith reports that Nehru
was in a tough and angry mood when he
saw him Sunday night. He questioned
whether Peiping was serious about pull-
ing back and saw signs in the latest
demands by the Chinese Communists that
they were preparing to hit the Indians
again.
c. The Indians admit that they
are forced to play for time. They would
like to keep public excitement at a manage-
able level but also need to maintain
enough tension to support their mili-
tary buildup.
a. Adoula told Gullion yesterday
that there would probably be dramatic
developments within 24 hours.
be.
that within Adoula's entourage support
for the idea ofa military,coup, intended
to forestall leftist gains, is gaining
ground.
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3. Soviet economy
a. Khrushchev's avowal
that he would'
find the wherewithal to expand agri-
cultural output does not come out in
the economic plan for the coming year.
The plan, as outlined to the Supreme
Soviet now meeting in Moscow, does not
foresee any appreciable increase in
government investment in agriculture.
b. The planners have lowered
their sights in the industrial sphere
as well. The hoped-for increase in
gross industrial production has been
set at only 8 percent--the lowest rate
since the Seven-Year Plan was inaugurated
in 1959. Investment in this area is
scheduled to increase by 9.9 percent,
not a great deal above the low 8.1 per-
cent increase which seems to have been
accomplished this year.
c. Outlays for light industry
and housing construction are scheduled
to go up,but at modest rates. This in
sectors of the economy where performance
perennially falls short of plan.
d. Overt military expenditures:
are up by 4 percent in the budget for
,next year, while outlays for science,
much of which goes into missile and
space research, are to increase by 9
percent.
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4. Brazil
a. Ex-President Kubitschek fore-
casts Collapse in his country "within
six months" unless Goulart goes on
from the presidential plebescite in
January to make the hard economic de-
cisions facing him. As of now, Goulart
is evading these decisions in pursuit
of a "fleeting" popularity.
b. Kubitschek, on the eve of his
departure for Washington to talk about
the Alliance for Progress, said there
were two main problems--the Program's
mechanism . is too bureaucratic and
there is a need for greater mutual con-
fidence between the US and Latin Amer-
icanA?
c. Kubitschek said he was not in-
terested in seeing AFP economists on
this trip--they do not have the authority
to get the program moving. He wants to
hit at the highest level of the govern-
ment and may even propose that the Presi-
dent personally direct the entire pro-
gram.
.17
For The President Only?Top Secret
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SOUTH CHINA
JESSELTON
SEA
BRUNEI
BRUNEI
SERIA?Th
KUALA BELA1T
Statute Miles
PULAU
BUTUNG
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5. Brunei
The attempt to drive the
rebels from ground held in and around
the oil-producing center of Seria seems
to be making steady headway.
C. Manila is reacting gingerly.
For the public record, the Filipino gov-
ernment is taking a neutral stance, but
it is making no secret of the fact that
it welcomes disruption of plans for the
Malaysian Federation.. There is no good
evidence of Filipino ;implication in
the rebellion,
For The President Only?Top Secret
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NOTES
A. India-Pakistan Cabinet-level talks on Kashmir are
due to get under way during the last week of Decem-
ber. The delegation heads have been named--Railways
Minister Swaran Singh for India, and Minister of
Natural Resources Bhutto for Pakistan--neither of
them of enough stature to be given much of a free
rein in the negotiations.
B. US-UK Macmillan has indicated to Bruce that he re-
11FUN the Indian question as foremost on the Nassau
agenda and suggests that the President and he hear
reports there from Harriman and Sandys.
C.
USSR-UAR Three Soviet Komar-class motor torpedo
boats have just been delivered to the UAR--the first
delivery of the kid outside the Bloc and Cuba.
D. Saudi Arabia - UK A resumption of British-Saudi dip-
lomatic relations, broken at the time of Suez, is
close at hand. Mutual concern over developments in
Yemen has given impetus to the negotiations.
E. Yugoslavia-EEC The West Germans, who say they want
to study the direction of Yugoslav foreign policy,
have persuaded the EEC to pigeon-hole discussions on
an EEC-Yugoslav economic arrangement until next spring.
Belgrade, which is also contemplating renewed ties
with the Bloc's joint economic agency, now has 30 per-
cent of its trade with EEC members and is heavily de-
pendent on them for foreign exchange.
501
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For The President Only?Top Secret
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F. Turkey-USSR The Turks, reporting a recent rash of
Soviet overflights of their territory, conjecture
that Moscow wants to make the point that its air-
craft have as much business over Turkey as the US
does over Cuba.
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DOCUMENT OF INTEREST
For The President Only?Top Secret
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