DIRECTORATE OF INTELLIGENCE
Central Intelligence Bulletin
South Vietnam Situation report. (Page 1)
Laos: The government has ended its campaign to recapture Muong Soui. (Page 2)
Romania-US: Bucharest's cordiality toward the USIA director reflects anticipation of President Nixon's visit. (Page 3)
WestSSR: Bonn is interested in Gromyko's suggestion that Moscow is ready for talks on easing Berlin tensions. (Page 4)
Jordan: The government fears there willead-
o'n clash with the fedayeen in the next few weeks.Page
El Salvador -Honduras: El Salvador has launched air and ground attacks against Honduras. (Page 6)
USSR-US: Strategic arms talks (Page 7)
ommunist China: Military aid (Page 7)
Israel: Termination of aircraft deal (Page 7)
L South Vietnam: Criticism of President Thieu's offer to let the Communists' National Liberation Front participate in elections is growing in South Vietnam.
Some of Thieu's political opponents, led byTran Van Don, are assailing the timing of the speech on the grounds that this made it appear that Thieu was acting on orders from Washington. Insome northern Catholics from the Greater Solidarity Force, which belongs to Thieu's newSocial Democratic Front, are breaking ranks to attack his offerign of weakness toward the Communists.
In an apparent effort to soften such criticism. Foreign Minister Thanh onulyressin which he seemed to retreat from positions taken by Thieu. For example, Thanh said that no one who actually advocates Communism would be allowed to run for office, this statement in effectThieu's offer to let the Liberation Frontin elections. The foreign minister stated, moreover, that North Vietnamese forces would have to withdraw north before elections could be conducted.
It is not clear whether Thieu authorized Thanh to make these points, or whether he merely instructed the foreign minister to blunt the critics' attacks.
* * *
Military action remained light throughout South Vietnamuly; no significant enemy mortar or rocket attacks were reported, f
Central Intelligence Bulletin
Laosi The government apparently has terminated its campaign to recapture Muong Soui.
General Vang Pao
|is withdrawing guerrilla ana regular army
troops that have been pressing toward the Muong soui complex. The two-week operation had made somebut unusually poor flying weather, theof progovernment neutralist troops to carry out their part of the offensive,ecent decline in the morale of Meo forces apparently convinced Vang Pao that the chances of taking Muong Soui were minimal. The government offensive was not vigorous enough to test Communist intentions but the enemy appeared determined to defend the base.
With the collapse of the effort Vang Paowill now turn his attention to thwarting what he believes will be an early enemy drive westward onnd then south into northern Vientiane Province.
Vang Pao calculates that the enemy willthis direction in order to isolate his basesTieng and Sam Thong. There is nothat the Communists will undertakewaambitious campaign during the current
Rortania-'JS: The Romanians have demonstrated their -ceen anticipation of President Nixon's visit by receiving USIA Director Shakespeare with unusual courtesy during his unofficialuly.
In Bucharestartet-acquainted swing through various countries of Eastern Europe, Shakespeare was treatedelebrity by theOffice, the State Committees for Art and Radio and Television, and at various social functions. First Deputy Foreign Minister Macovescu invited him back for an official visit. His presence alsodue notice in the press, in contrast7 when tho then USIA director's unofficial visit went unmentioned.
While such treatment underscores the good state of Romanian-US relations in the cultural field, it alsoart of Bucharest's preparation forNixon's visit. The Romanians even movedin substantive discussions with Shakespeare onS library in Romania and exchanging magazines. The Romanians now seem to be ready to reach an early agreement on these questions, which have been in negotiation for some time, probably in order to clear the way for signing during thevisit.
The Romanians have not been so forthcoming on other outstanding questions of interest to the US, such as the emigration of dual nationals and the reduction of the tight restrictions on US Embassy operations. As its major immediate objective,)restto get most-favored-nation tariff status
for goods exported to the US.
Jul Intelligence Bulletin
WestSSR: Foreign Minister Gromyko'. indication in his speech last week of Soviettoeduction of tensions over Berlin has aroused strong interest in Bonn.
For several months the West Germans have been urging the WesternUS, France, and thesound out the Soviets on their willingness to lessen difficulties over Berlin. Specifically, the West Germans hope to make arrangements with East Germany which would facilitate civilian access to West Berlin.
Jordan: The government fears there mayead-on clash with the fedayeen in the next few weeks.
The arrest last weekendumber of fedayeen who were responsible for the rocket shelling of an Israeli settlement may have brought mattersead.
5 rs (C) .
c Elonduras: OAS efforts are under way to halt the hostilities which broke out last night between the two countries.
An emergency session of the OAS Council agreed to the Honduran requestoreign ministersand also decided toeven-nationcommittee to work with the Central American mediators. The OAS team, headed by Nicaraguanto Washington Sevilla-Sacasa, is expected in San Salvador today.
Salvadoran aircraft bombed and strafed Honduran border positions and the airport at Tegucigalpa. Military officials of both countries reported that fighting had broken out all along their common
Salvador is expected to continue its attack
in anticipation of an early cease-firethe OAS. I
"tremendous euphoria" among oiriciais in
San Salvador. They apparently believe that the country's aggressive performance will satisfy)imestic clamoring for military action to avengesuffered during past border clashes andmistreatment of Salvadorans in Honduras. Salvador may be willing toease-fire in hopes ofonduran counterattack.
Central Intelligence Bulletin
cUSSR-US; oviet Foreign Ministry official has indicated that Moscow is ready to accept the us proposal for strategic arms limitation talks.
lthe American section
uncertain on timing.
jthought thatugust woulduitabledate. The Soviets evidently remain flexiblethe site for the talks. that Moscow favors Helsinki, Moscow andin rotation, or Vienna, in that order.
ommunist China: The Nyerereapparently intends to accept Chineseestablishing an air force. hinese surveyrecommended that an air base be built nearSalaam, and that China supply)Yrs^ I Although the type of aircraft is
tne cninese may be offering jet fighter air-
orthe Tanzanians have been seeking. The team also proposedanzanians be sent to China for up to two years of training. The Tanzanians have agreed with thein general and have asked the Chinese toore detailed study.
Israeli The recent effort to purchase
6 sabrejets reportedly lapsed. Preliminary arrangements had been made through Mercx, West Germany's largest arms agent, to
r5buy the aircraft for only
ment called for Ecuador t6 aethird country, but in spite of assurances that Ecuador would be willing tocuador's minister of defense subsequently decided not to go along with the deal.
Centra/ Intelligence Bulletin
r (C)Original document.