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CIA-RDP79T00975A009600060001-9
Body:
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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
DEPT OF STATE review(s) completed.
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Top Secret
c 160
24 January 1967
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Central Intelligence Bulletin
CONTENTS
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Nicaragua: Opposition group ends struggle. (Page 7)
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EEC: European community administrative groups
may be reorganized. (Page 10)
Dominican Republic: Arrests of alleged plotters sure
to draw criticism. (Page 11)
25
Finland- USSR: Relations
USSR-Italy: Podgorny's visit
Chile: Frei visit
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24 January
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*Nicaragua: Opposition leader Aguero and his
followers released all of their hostages, including
US citizens, and peacefully ended their struggle in
Managua last night.
The opposition group, after reaching an agree-
ment with the government, evacuated the hotel in
which they had been besieged. The government
agreed to provide safe conduct for the rebels and
to proceed with the elections scheduled for 5 Feb-
ruary.
Tension in downtown Managua relaxed consid-
erably, and both government and opposition leaders
appeared anxious to bring the ugly episode to an end.
It is still not clear what effect the recent events
will have on the elections. The government's can-
didate, General Somoza, was favored to win before
the outbreak and will probably insist on keeping to
the election timetable, Aguero, on the other hand,
may withdraw from the running, charging that the
balloting would be rigged, as he has done on two pre-
vious occasions.
If Aguero does not run, Somoza will still have
nominal opposition from Abaunza, leader of a small
dissident conservative party. Abaunza's party pro-
vided the government machine with its only legal o -
osition in the 1963 elections. r- I
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EEC: The recent De Gaulle - Kiesinger talks in
Paris may have paved the way for a long-discussed
reorganization of European community executive
bodies.
According to German officials, agreement was
reached on a way to avoid some of the difficulties
that have held up the plan to unite the EEC and
EURATOM commissions and the Coal- Steel High
Authority into one body. One of the main difficulties
hitherto has been France's opposition to appointing
EEC commission president Hallstein to the new execu-
tive body, because Paris has believed he is committed
to an unacceptable "supranational" philosophy of Euro-
pean integration. The French now are said to be
willing to accept Hallstein, provided his tenure is
short. France apparently also has dropped its in-
sistence on automatic rotation in the presidency and
vice-presidency.
Bonn now will seek Hallstein's agreement to re-
sign the new post at some not too distant date, and if
he concurs, the agreement of the other EEC members
will be sought. Last year, Italy, Belgium, and Luxem-
bourg indicated that they might go along with a "resig-
nation" approach. The Dutch, however, were strongly
opposed, and Hallstein himself may be difficult to
persuade.
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Dominican Republic: Numerous arrests made by
the Balaguer government to foil an alleged conspiracy
against the regime seem sure to draw strong opposi-
tion criticism.
Those arrested include leaders of the left-of-cen-
ter Dominican Revolutionary Party (PRD) as well as
Communists and right-wing extremists. Those de-
tained are being interrogated and apparently will be
quickly released.
Balaguer authorized the arrests on the basis of
vague reports of joint antigovernment -plotting b left-
ists and rightists
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plotting does not appear to have gone beyond the talk-
ing stage.
The indiscriminate nature of the arrests seems
sure to provoke intensified opposition attacks on
Balaguer for his arbitrary action and the adoption of
"neo-Trujillo" policies. PRD leader Antonio Guzman
has termed the round-up a "stupidity" and warned that
a sharp response from his party could be expected.
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NOTES
Finland-USSR: Soviet pressures on Prime Min-
ister Paasio and his governing Social Democratic
Party (SDP) appear to have subsided. Some of the
Soviet dissatisfaction with Paasio probably resulted
from efforts by the SDP's left-wing elements to dis-
credit him. The US Embassy in Helsinki notes, how-
ever, that Paasio continues to enjoy the solid support
of the SDP rank and file. The anticipated announce-
ment of SDP support for President Kekkonen's re-
election in 1968 should be helpful in reassuring
Moscow that the party backs Kekkonen's policy of
cooperation.
USSR-Italy: President Podgorny's official trip
is part of Moscow's effort to promote a "normaliza-
tion" of relations with countries of Western Europe.
The eight-day visit, which starts today, will under-
score the continuing growth of Soviet-Italian eco-
nomic exchanges and may conclude with the signing
of a consular convention. No political surprises
are likely to come from Podgorny's talk with Pre-
mier Saragat tomorrow, or his audience with the
Pope on Sunday.
Chile: President Frei's visit to the US scheduled
for next week has been canceled, according to the
Chilean Foreign Minister. If Frei subsequently ob-
tains the permission of the Chilean congress, he may
possibly reschedule his visit for a later date. By not
defying the senate at this time, Frei may be able to
exploit the political issue, particularly in the upcom-
ing municipal election.
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