Document Number (FOIA) /ESDN (CREST):
CIA-RDP79T00975A022400010002-0
Body:
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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
N?_ 042
21 July 1972
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Approved For Release 200 ?Ofg5.` ' -RDP79T00975A022400010002-0
No. 0174/72
21 July 1972
Central Intelligence Bulletin
SOUTH VIETNAM: Situation report. (Page 1)
ASEAN: The five nations hold political talks.
Page 2)
THE NETHERLANDS: The prime minister and his cabinet
resign. (Page 3)
BURMA: Stricken leader (Page 4).
PHILIPPINES: Floods damage rice crops (Page 4)
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THAILAND
0610
.' VIET
My Chgnh
!efense fine
Reopened
Gulf o f
Thailand
SOUTH VIETNAM
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CSOUTH VIETNAM: South Vietnamese forces have
registers gains north of Saigon and along the coast.
Fighting throughout most of the country remains rela-
tively light.
Elements of Saigon's 25th Division cleared the
last of the Communist blocking forces from Route 13
south of An Loc on 20 July. The government plans
to send a convoy up the road today. Route 13 had
been closed since 5 April, when the siege of An Loc
began, and efforts to open it had been repeatedly
frustrated by well-entrenched enemy troops.
In coastal military Region 2, the government
counteroffensive into the northern districts of Binh
Dinh Province is proceeding against only light enemy
resistance. South Vietnamese Army troops and tanks
moved through the Bong Son Pass and reached a point
about one mile south of enemy-held Hoai Nhon district
town.
Fighting around Quang Tri City remains at a re-
duced level, although government units in the area
continue to come under frequent enemy shelling. Just
to the south, an enemy battalion is reported to have
attacked government troops near Route 1 along the My
Chanh defense line, the jumping-off point for the
government drive into Quang Tri Province. This area
had seen little combat since the offensive began on
28 June. Recently, however, there have been indica-
tions of a Communist intention to attack South Viet-
namese forces in Quang Tri from the rear, cut them
off, and take advantage of the thinned-out govern-
ment defenses farther south.
Elsewhere, South Vietnamese Army troops patrol-
ling northwest of Kontum City were attacked and suf-
fered losses of more than 100 killed, wounded, and
missing. This is the second such attack in this
area in three days by an enemy unit believed to be
screening the withdrawal of other Communist forces
from the Kontum battlefield. In the delta, the Com-
munists are continuing to harass isolated government
positions.
21 Jul 72 Central Intelligence Bulletin 1
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ASEAN: The first informal political consulta-
tions of the Association of Southeast Asian Nations
(ASEAN) produced no tangible results, but were
another halting step toward more meaningful regional
cooperation.
The session held on 13-14 July will help rein-
force the idea that ASEAN is a proper forum for the
discussion of political affairs. The ministers
agreed that periodic "informal consultations" are a
useful way in which the five members--Thailand,
Malaysia, Singapore, Indonesia, and the Philippines?
can work together to safeguard the interests of the
region.
On substantive matters, the foreign ministers
agreed on a proposal for ending the Indochina war
(which Indonesia is to present to the protagonists.)
The most heated discussions centered on the two key
issues over which the partners have had serious
differences--neutralization of Southeast Asia and
the convening of an ASEAN heads-of-state meeting.
A joint statement pays lip service to the idea of
neutralization, but Malaysia's sponsorship of the
idearan into strong opposition, particularly from
the Thais who are reluctant to support at this time
anything that might encourage a US withdrawal from
Thai bases.
The participants postponed a Philippine offer
to host a heads-of-state meeting in Manila by re-
ferring it to a technical committee. The other
four members are reluctant to risk their prestige
in what would be a well-publicized summit until
they are sure that such a meeting would accomplish
something concrete.
21 Jul 72 Central Iritelli;ence Bulletin
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THE NETHERLANDS: Prime Minister Biesheuvel
and his ca inet resigned yesterday. Queen Juliana
probably will ask Biesheuvel to form an interim
government pending new elections.
Differences over how to deal with inflation
and the expectation of a billion-dollar deficit in
next year's budget brought an early end to the one-
year-old government. Biesheuvel failed to save his
fragile five-party coalition after two cabinet min-
isters representing the Democratic Socialist Party
resigned on 17 July.
Biesheuvel probably will try to govern without
the Democratic Socialists, and without changes in
domestic and foreign policy, for as long as possible.
This will be difficult because there are many issues
creating discord among the remaining coalition par-
ties, and a four-party arrangement would be a minor-
ity government. Nevertheless, Biesheuvel could rely
on the tacit support of a handful of ultraconserva-
tive Calvinists in parliament until he decides to
call elections. The government parties generally
agree that scheduling elections as late as possible,
preferably for the spring of 1973, would be in their
interest.
21 Jul 72 Central Intelligence Bulletin
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BURMA: Deputy Prime Minister San Yu has re-
portedly suffered a heart attack or stroke. if
true, his illness will reopen the succession prob-
lem in Burma. Prime Minister Ne Win, who has led
Burma's military government since 1962 and is him-
self in uncertain health, established San Yu as his
successor during the government reorganization of
last April. No individual below San Yu has the in-
side track to succeed Ne Win. It is even unclear
who will act as prime minister until Ne Win, who i
now in London, ret to Burma.
PHILIPPINES: The country's worst floods in
more than a quarter of a century will cut into its
already inadequate rice supplies. Damage to a re-
cently planted crop in a major rice producing area
is likely to be extensive. Moreover, rice stock-
piled also may have been damaged. Manila required
large imports in 1971, and record purchases already
were planned for 1972. Thus far this year the gov-
ernment has contracted for 300,000 tons of milled
rice from abroad and was searching for an additional
200,000 tons before the recent floods struck. Now,
even 500,000 tons of imported rice will not
enough to meet the country's requirements.
21 Jul 72 Central Intelligence Bulletin
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