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DIRECTORATE OF
INTELLIGENCE
cret
D
Central Intelligence Bulletin
Secret
51
State Department review completed
14 May 1969
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No. 0115/69
14 May 1969
Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
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European Communities: Further steps have been taken
toward strengthening the trade union movement. (Page 3)
Malaysia: Postelection developments threaten a
seriously weakened government. (Page 4)
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Nigeria: Oil production reached a record high in
April, but the Biafrans still threaten oil installa-
tions. (Page 9)
Angola: Portugal is using pressure tactics on the
Congo (Kinshasa) and Zambia to keep insurgency in
Angola at a low level. (Page 11)
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Haiti: Communists (Page 12)
Pakistan: Food grains at record high (Page 12)
West Germany: Revaluation speculation (Page 13)
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NORTH
VIETNAM
A Shau
'Valley
~I P~fi
! IInN~-~
AVERAGE STRENGTH
OF ENEMY UNITS
Battalion: VC 200- 400
NVA 300- 500
Regiment: VC 1,000-1,500
NVA 1,200-2,000
Division: VC 5,000-7,000
NVA 5,000-8,000
SOUTH VIETNAM
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CAM BODhIA
I
MILES
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C South Vietnam: Communist shelling attacks have
fallen off sharply but some main force enemy units
are on the move toward provincial towns.
Since the recent upsurge in shellings began
during the night of 11-12 May, heavy enemy ground
assaults have hit allied field positions in I Corps,
the central highlands, and in the provinces around
Saigon.
The most severe allied casualties in a single
attack came in the A Shau Valley during the night
of 12-13 May when enemy fire set off an ammunition
dump, killing 25 US troops and wounding 51. Enemy
actions in the delta have been limited to harassing
attacks for the most part.
Saigon was harassed by two Communist rocket
rounds again on 13 May but the attack caused little
dama e.
14 May 69 Central Intelligence Bulletin
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European Communities: The European organiza-
tion of the WormsConfederation of Labor (WCL-EO)
has taken steps toward strengthening the trade union
movement in the communities.
During a congress in Brussels from 7-9 May,
the WCL-EO--until recently the Christian Interna-
tional---agreed to limit the veto power of its na-
tional affiliates. The WCL-EO also transferred from
the executive committee to periodic congresses the
right to define basic goals.
These decisions are similar to actions taken
by the general assembly of the European Trade Union
Secretariat in April, but not as far-reaching. The
secretariat--which is composed of ICFTU-affiliated
trade unions of the Six--transformed itself into a
"confederation"' and denied veto power over decisions
to its national. affiliates. This new confederation
also extended an invitation to the WCL to forge
closer ties with it, which the WCL-EO congress ac-
cepted at its recent meeting. The executive commit-
tees of the two organizations are expected to meet
shortly to begin work on a common European program.
In taking these recent actions to strengthen
the European trade union movement, the ICFTU and
the WCL have been motivated by a wish to revitalize
the European communities and to enable the unions
to deal more effectively with multinational corpo-
14 May 69 Central Intelligence Bulletin
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Malaysia: Communal violence erupted in Kuala
Lumpur yesterday in the aftermath of the elections
on 10 May. A curfew was ordered and army units
called up in an effort to contain the situation
which resulted in a number of deaths and considerable
property damage.
The triparty Alliance, composed of Malay, Chi-
nese, and Indian parties, which has governed Malay-
sia in the 12 years since independence may be in
danger of dissolution. The Chinese component--the
Malaysian Chinese Association--suffered the greatest
proportional loss of Alliance seats in the election
on 10 May. It has announced that it will withdraw
from the cabinet. It will continue to support the
government in parliament, however, thereby ensuring
for the time being the Alliance's slim parliamentary
majority.
Discontent within the Chinese community with
Alliance policies has been accumulating for some
time. Chinese resent the government's preferential
treatment of the Malays and what they regard as the
imposition of a Malay cultural and political he-
gemony.
The Chinese community views the Chinese Associa-
tion as needlessly conciliatory to the Malays and as
ineffective in defending Chinese interests. The as-
sociation's present strategy of withdrawing from the
cabinet is not only an acknowledgment of its unpop-
ular position but probably is a first step in an
attempt to retrieve respect within its own community.
As the situation now stands, the next government
will be based largely, if not entirely, on the United
Malays Nationalist Organization, the major component
of the Alliance.. It represents the larger part of
the nation's Malay community, which constitutes about
14 May 69 Central Intelligence .Bulletin 4
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half the population. The Chinese community, 37 per-
cent of the population and economically the most im-
portant element, apparently will be unrepresented
in the cabinet, but will have an increased represen-
tation in parliament because of gains made by op-
position parties. The opposition, although divided,
promises to be an energetic one. The government's
entire program of balancing communal interests,
pushing economic development, and forging a national
identity would appear to be in jeopardy.
14 May 69
Central Intelligence .Bulletin
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Biafrans Still Pose Threat to Record Nigerian Oil Production
BIAFRA
Onitsh
Biafran force raided nearby
drilling camps on 8 May
Oilfield
(Gulf) Kwale
Oilfield
(Shell-8P)
R1kof Ekpene
Port Harcourt:
rans Niger Pipeline
)Oilfield
(9ell-BP)
Bonny Oil Evacuation Terminal
EQUATORIAL GUINEA
FERNANDO f101
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Nigeria: Oil production reached a record high
in April, but Biafran Army units still pose a seri-
ous threat to petroleum installations.
Nigeria's two producing companies, Shell-BP and
Gulf, pumped nearly 600,000 barrels per day last
month, making Nigeria the 11th largest oil produc-
ing country. Other companies are expected to start
producing soon, raising output to some 700,000 bar-
rels per day by the end of the year and to around
one million barrels per day in 1970.
Biafran forces are within striking distance
of several oilfields and the strategic Trans-Niger
Pipeline. On 9 May a secessionist raiding party
overran two drilling camps near Kwale and more raids
may follow. Although the secessionists would like
to disrupt Nigerian oil production, they have not
sabotaged any of the very vulnerable oilfields or
pipelines in federal hands, perhaps in the hope of
eventually recapturin them intact.
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Recent Sabotage Leads Portuguese to Suspend International Rail Traffic
CONGO
Brazzaville
Luanda"
Lohito,c1
Benguela`
Railroad cut by insurgents
operating from Congo and Zambia
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Angola: Sabotage by African nationalist insur-
gents in eastern Angola has moved the Portuguese to
put pressure on Congo (Kinshasa) and Zambia.
Insurgents destroyed a small section of track
along the Benguela Railroad on 2 May in what was
at least the fourth act of sabotage on the line
since 19 April. Two trains were derailed, killing
six people, injuring several. others, and damaging
rolling stock and goods. The railroad is the only
target of strategic importance to the Portuguese in
the remote eastern region that is vulnerable to in-
surgent attack.
The Zambia-based Popular Movement for the Lib-
eration of Angola is suspected of instigating all
but the attack of 2 May, which is believed to be
the work of the Congo-based Angolan Revolutionary
Government in Exile.
Following the last incident, the Portuguese
suspended international traffic over the line "in-
definitely" in an attempt to force the Congo and
Zambia to restrain the insurgents. Both are depen-
dent on the railroad for exporting minerals. Clos-
ure of the line, accompanied by private represen-
tations to the Congolese and Zambian governments,
has proven successful at least twice in the past,
and probably will be effective this time.
The Congo and Zambia will begin to feel the
economic pinch if the Portuguese do not lift the
ban later this month
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NOTES
Haiti: Communists are planning attacks on US
installations and embassy personnel, including the
ambassador, according to Foreign Minister Chalmers.
This warning follows an increase in Communist propa-
ganda earlier this year in support of the "anti-im-
perialist struggle"--in the past, Haitian Communists
concentrated on the Duvalier government. It also
coincides with President Duvalier's widespread
crackdown on known and suspected Communists. The
US Embassy believes it possible, however, that the
Duvalier government has fabricated the report to
impress the US with the seriousness of the Commu-
nist threat. Some Cuban-trained Communists have
been captured in recent government raids, but those
still at large are probably able to carry out lim-
ited and isolated terrorist actions.
Pakistan: The availability of food grains has
reached a record high despite an earlier threat of
extreme shortages in East Pakistan. Shortfalls had
been predicted there because of lower per-capita
production of rice, reduced imports, and distribu-
tion problems. West Pakistan's rice and wheat crops,
however, are 42 and 12 percent greater respectively
than was the case a year ago. Rawalpindi plans to
ship grain to meet any shortages that develop in
East- Pakistan-1 -I
(continued)
Central Intelligence Bulletin 12
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C West Germar: Initial policy statements by the
West German Government will be only a weak deterrent
to renewed speculation on revaluation of the mark.
The policy package agreed to suggests the difficul-
ties in accommodating divergent views within the
economic committee of the cabinet. The proposals,
to be approved by the full cabinet today, contain
essentially nothing new, except for a reference
to unexplained "'machinery to make speculation more
expensive." This package was accompanied by a num-
ber of anti-inflationary domestic policies which
also appear to be weak in their potential impact.
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