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THE PRESIDENT'S
INTELLIGENCE REVIEW
ISSUED BY THE
CENTRAL INTELLIGENCE AGENCY
27 - 30 JUNE 1964
3
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1.
30 June 1964
Cyprus: There have been alarms in the
past few days, and a fair amount of shooting,
but this has become the normal pattern.
The flow of arms and men from the mainland
continues.
The Greeks probably have brought in sub-
stantial regular army reinforcements, although
not as many as the Turks allege. The Turkish
build-up has probably been smaller, but still
far from insignificant.
The Greeks seem to be operating on the
assumption that a Turkish invasion is still to
be feared. They are trying to create a force
quickly which could contain such an invasion
until outside help could be brought to bear.
The Greeks are also afraid that the Turks
may resort to guerrilla warfare.
For The President Only - Top Secret
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2. Congo: Kasavubu has accepted the resigna-
tion of the Adoula government. This is presum-
ably a pro forma step to clear the way for a
transitional government to run the country until
elections can be held in six to nine months.
A referendum is in progress--to be completed
by 10 July--on a new constitution to replace
the one which technically lapses today.
Apart from the foregoing, little else is
clear about the political situation. Kasavubu's
original plan apparently was to hold a conference
of the principal politicians of all the major
factions in the country and get them to support
Adoula.
Now, however, this seems less definite.
Tshombe, since his return last week, talks with
more and more assurance, as if he expects things
to break his way. His return was received with
enthusiasm in his home province of South Katanga.
The uneasy security situation in the eastern
provinces is getting worse. President Sendwe
of North Katanga is said to have been assassi-
nated, but this has not been confirmed.
The last UN troops are leaving the country
today, and the government's desultory efforts
to get replacements for them elsewhere have so
far come to nothing.
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3. Italy: The unsettling effects of the fall
of the Moro government will be felt for some
time even if efforts this week to reconstitute
it are successful.
All the coalition parties have come out
in favor of another center-left government.
Only the Christian Democrats, however, have
nominated Moro to form it.
We know that Segni would prefer to have
Moro attempt a solution, but he will probably
be compelled to hold off formally calling him
until the Socialists have held their central
committee meeting on Friday and Saturday.
The difficulty is that none of the leaders,
or their parties, were prepared for this situa-
tion, which has allowed all the old issues
between the left and right to get out in the
open again.
The Communists, as might be expected, are
jubilant. They will almost certainly heat
things,up by strikes and agitation to the best
of their considerable ability.
Extreme right-wing elements are also mov-
ing to prevent a new center-left government and
to start trouble with the Communists. Police
throughout the country are on the alert to pre-
vent disturbances by extremists on both right
and left.
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British Guiana: Jagan seems to be approach-
ing desperation in his search for some way out
of his difficulties.
Last weekend he called in Consul General
Carlson and made a pitch for US support of a
coalition government, in which his party and
that of Forbes Burnham would have rough parity.
He said he is thinking of sending an emissary
to Washington to talk things over.
The Consul general commented that Jagan
seemed to have a firm grip on himself during
their interview, and spoke quietly and reason-
ably. His hands, however, shook slightly. ."Jagan
would obviously give almost anything to obtain
US support," reported Carlson.
His associates, however, may not be with
him on this. Janet Jagan has been seen in the
countryside lately, apparently operating in
connection with the terrorist activities that
started up again last week.
The background on all this, as with all
things Guianese, is intricate. One factor that
probably has told heavily with Jagan is the
result of the recently completed voteit registra-
tion, which we hear suggests that his party
could not get a majority in an election.
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5. Cambodia: Sihanouk, who is still on a
long visit to France, is showing his customary
deviousness with regard to the question of
establishing a-UN presence in Southeast Asia.
Last week he said he would be willing to
let the UN set up permanent control points on
Cambodia's border with South Vietnam. A few
days later he gave instructions to tell the
French and the Russians that he would not mind
if they vetoed such a proposal.
Sihanouk was doubtless influenced in this
by De Gaulle
This comports with the line being followed
by Peiping and Hanoi, which have blasted the
UN mission sent out by the Security Council
last week.
Hanoi has said this mission is illegal
under the Geneva Agreements. The Pathet Lao's
political front organization has said it would
not "guarantee" the safety of UN personnel in
its "liberated areas" in South Vietnam. This
sounds as if the Communists are genuinely
worried about what the UN mission might find
out and report.
For his part, Sihanouk seems to have trumped
up a border violation for the benefit of the UN
mission, which is presently in Phnom Penh.
US officials in Saigon have found no evi-
dence that the South Vietnamese had any opera-
tion going in the border area where Cambodia
charges another violation occurred last Wednes-
day.
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6. Laos: Pathet Lao chief Souphannouvong
has reversed field and now says a meeting of
:the three Laotian factions is "a matter of
great urgency."
Souvanna Phouma has been trying to get him
to see reason on this for some time.
Souphannouvong suggests that the meeting
be held in Phnom Penh or Djakarta. Either
place presumably would suit the neutralists,
but we cannOt yet be quite so sure about the
rightists.
Souphannouvong also suggests that repre-
sentatives of the Geneva co-chairmen and of the
ICC powers be present at the meeting.
The military situation is relatively quiet.
7. Maphilindo: There is less and less chance
that there will be any follow-up on the pro-
posals mooted at the Tokyo summit.
(Cont'd)
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The Tunku has politely rejected Macapagals
proposal for a foreign ministers meeting. Suban-
drio has taken a similar line with the Austral-
ians?
Indonesian guerrilla activity in Borneo
continues.
3. Italy - Communist China: The Italians say
the Chinese have agreed to establishment of an
Italian trade mission in Peiping.
The question of a Chinese trade mission in
Rome is apparently still under discussion.
Rome says that no political implications
should be read into these developments.
9. Dominican Republic: Manuel Taveres, last
of the original triumvirate that took office
last September, has resigned, and apparently
will not be replaced.
This is another symptom of the Dominican
malaise, which grows deeper. The IMF says that
the Dominican Republic will be $56 million
behind in its external payments by the end of
the month.
10. Panama:
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11.
Germany: The West Germans are consider-
ing a goods for prisoners exchange with the
East Germans. Under the deal the West Germans
would provide $5 million worth of butter, ores,
and chemical fertilizer to ransom 500 political
prisoners in East German jails. The primary
East German interest in this deal is to demon-
strate to the West Germans the advantages of
bilateral contacts.
12. Cuba Trade:
13_ Zanzibar: The Tanganyikans have reduced
all embassies on the island to consulates.
An accredited External Affairs Ministry
official is now using ex-Zanzibari "foreign
minister" Babu's old office.
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TOP SECRET
USSR - Communist China: The first package
from Keyhole Mission 1007, 20-23 June, turned
up an electronics facility on the Kola Penin-
sula which could well have an antiballistic
missile function.
The facility, which has two partially com-
pleted 900-foot structures facing generally
northwest, bears a marked similarity to a faci-
lity at the Sary Shagan antimissile test center.
The photography shows nearly 100 submarines
in the Kola inlet. Five new cruise missile sub-
marines are included, reinforcing our opinion
that the Soviets are constructing this type of
submarine rather than ballistic missile sub-
marines.
In China, there is activity throughout the
missile assembly and checkout areas and at one
Of the launch pads at Shuangchengtzu.
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