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Appro ed Fo el
V
12 October 1962
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
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5. Germany: Bonn may make economic concessions
to East Germany in return for political concessions.
(Page i v)
6. West Germany: Bonn seeks to establish a trade mis-
sion in Budapest. (Page v)
7. France: De Gaulle studies Berlin contingency plans.
(Page vi)
8. Kenya: Increased subversion and intertribal tensions
threaten security. (Page vit)
9. Indonesia- Malaya: Indonesia may be planning to sub-
vert the projected Federation of Malaysia. (P~zge vitt)
10. Ecuador: I Two rival Communist groups are report-
ediy planning to launch campaigns. (Page ix)
11. Venezuela: Betancourt seeks to allay military's de-
mands. (Page x)
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Germany: West Germany appears to be moving
in the directio of extending economic concessions, to
East Germany in return for political concessions..
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Bonn proposes, in exchange for free movement
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ports for its imports.
of West Berliners into East Berlin and some reuni-
fication of families, to increase by $25 million the
interzonal trade "swing"--the indebtedness East
Germany can run up yithout providing matching ex-
Bonn has briefed the Ambassadorial Group in
Wa ington on draft instructions for its interzonal
trade negotiator. The US and UK representatives
agreed the proposal is consistent with Allied objec-
tives. The French representative did not comment.
(Movement across the sector border would be in
one 'direction only, since West Berlin could not co-
operate with East Ger an in ensuring that East
Berliners would return
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West Germany: The Bonn government is seeking
to establish a West Getman trade mission in Budapest.
There has been a Hungarian mission in Frankfurt
since the end of the warj
A West German foreign ministry official told
Ambassador Dowling on 9 October that the talks were
moving slowly, but that he had hopes of eventual
agreement. The main stumbling block at the moment,
he said, is Hungarian insistence that an agreement
be described publicly as a "first step toward diplo-
matic relations:'
(The Bonn government, and Foreign Minister
Schroeder in particular, have been seeking ways to
implement the June 1961 Bundestag resolution calling
for steps to normalize relations with East Europe
without sacrificing Germany's interests. Bonn is
against diplomatic relations, because it feels that
they would precipitate r cognition of East Germany 25X1
by nonaligned countries.) I
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France: De Gaulle continues to take the line
that the USSR must be made to realize that any armed
interference with Western access to Berlin would
mean nuclear war. He has been reviewing Berlin
contingen y plans and wants them to be based on this
approac9
A high French foreign ministry official report-
edly old the British Embassy that the French take
issue with Lord Home's 25 September UN speech in-
dicating that the West would seek to "isolate and
stop" accidental hostilities in Berlin. Lord Home's
implication that some Soviet military actions in Ber-
lin might not lead to general nuclear war is considered
"undesirable," by Paris, the French official said. ]
De Gaulle's personal interest in Berlin contin-
gent planning may indicate that France will renew
its arguments f a lower threshold for the use of
nuclear wea
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Kenya: (An increase in subversion and inter-
tribal tension threatens security and is likely to
cause further stress among Kenya's political factions.
(Early this month police arrested 26 members of
the I nya Land Freedom Army, a terrorist organiza-
tion within the Kikuyu, Kenya's largest tribe. The
Land Freedom Army plans to seize European-owned
land after Kenya receives its independence, and has
been collecting arms and taking oaths among the
Kikuyu.
Gmaller tribes in Kenya see these activities as
confirmation of their fears that the Kikuyu will at-
tempt to dominate the country. Anti-Kikuyu demon-
strations,, accompanied by violence, have already
occurred. 1
These tensions will aggravate difficulties be-
tween and within Kenya's two main political parties
since each party is based on tribal alliances.
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Indonesia-Malaya: Indonesia may be embarking
on a long-range progra of subversion to disrupt
the Federation of Malaysia after it is formed next
year. The Sukarno government sees a successful
federation as a threat o Indonesia's aspirations to
leadership in the area.
(Djakarta reportedly has assigned a psychological
warfare expert to exploit anti-merger sentiment,
particularly in Sarawak, Brunei, and North Borneo.
These territories, together with Malaya and Sing-
apore, are to make up the federation.
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25 1 and leaflets urging the populace to defend its free-
dom again Malayan domination are beginning to ap-
pear there.
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Gndonesia has not overtly opposed the formation
of the federation, presumably because it does not
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wish to commit its Ares i e against a development
it regards as inevitable.)
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III
Ecuador: Two rival Communist groups report-
edly plan to launch good-sized guerrilla campaigns
next month with the objective of cutting almost all
communications between the coast and the highlands
of Ecuador.
The Communist-front Revolutionary Union of
Ecuadorean Youth (URJE) reportedly has established
four camps in the northern provinces. Their loca-
tions would permit operations to block the highways
from Esmeraldas and Colombia and the railroad
from San Lorenzo, thus isolating Quito from the
north. Communists claim the URJE has received
several shipments of arms smuggled from Cuba, in-
cluding 16 machine guns and material for 15,000
"small bombs."
The regular Communist Party of Ecuador (PCE)
reportedly plans to establish its own guerrilla bases
south of Quito. The regular Communists intend to
time their own operations with those of the URJE and
to isolate Quito from the coast.
Both groups believe they will receive substantial
aid from Cuba if they can mount successful harass-
ment operations. There have been no reports of ef-
fective guerrilla activity in Ecuador thus far, and
all reports of the planned campaigns come from
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Venezuela: (President Betancourt is seeking ad-
ditional measure to allay continued demands by the
military that he outlaw the Communist Party and the
Movement of the Revolutionary Left (MIR).and arrest
their congressional leaders, or be ousted.
CThe government's success in reducing violence
has eased this pressure somewhat, but several offi-
cers have warned of a possible coup if the govern-
ment does not m ve against the extremist leaders in
the next few ys
CW.hile it remains doubtful that the Social Christian
(COPEI) members of the coalition will support Betan-
court in ignoring congressional immunity, he appar-
ently will persist in his efforts to find a solution ac-
ceptable to both the military and COPEI. The embassy
reports that Betancourt may have requested the Su-
preme Court to nullify the 1958 elections of Commu-
nist and MIR congressmen. If necessary, however,
he reportedly intends to carry out his plans even at
the risk of causing COPEI's withdrawal from the gov-
ernment
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THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Emergency Planning
The Director, National Aeronautics and Space Administration
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Assistant Secretary of Defense (International Security Affairs)
The Assistant Secretary of Defense
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Director, Defense Intelligence Agency
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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