DIRECTORATE OF INTELLIGENCE
Central Intelligence Bulletin
lSouth Vietnam: Communist forcesumber of small-scale strikesuly, but activity fell far short ofew
In the Hue area, the enemyeries of raids against South Vietnamese regular andpositions, suffering considerably heavier losses than the government troops. Twom* rockets hit the outskirts of Hue yesterday, causing noor damage. Two additional ground attacks against an allied convoy in Binh Long Province and against an outpost near Dak To in the highlands were largely ineffective.
There continue to be indications that theplan to cap their "July action phase" with Acfinal round of offensive actions which could be-
Laos: There are signs that Communist forces may be moving to expand their holdings in the Plaine des Jarres area.
the past few days the Communists havetried toumber of progovern-ment guerrilla outposts south of the Plaine. InCommunist forces appear to be moving to clear the remaining government elements which threaten their supply lines south of Muong Soui.
Although there has been no new fighting west of Muong Soui, there is increasing evidence of an enemy
roop buildup along Route 7.
reported tnat-in- eany
July large numbers of enemy troops moving westMuong Soui [ " '" ' |they intended to attack Phou Khoun, Muong Kassy, Vang Vieng, and Sam Thong.
Government units operating in the Muong Soui area themselvesarge number of trucksew miles west of Muong Soui in mid-July.
Japan-US: The Japanese Government has askedull explanation of press reports thatSwere treated last week for exposure to nerve gasS military base in Okinawa.
The government may be unable to prevent thefrom sparking demonstrations against the visit of Secretary of State Rogers to Japan late this month. The incident could seriously complicate negotiations on the status of US bases in Okinawa and Japan and could intensify popular pressure for the immediate and unconditional return of the island. The left-ists, in particular, have been searching for someto revive their lagging campaign against the Sato government's handling of the Okinawan and US-Japan Security Treaty issues.
Reaction is likely to be particularly strongwhere there is still tension over aUS soldiers and Okinawans during astrike, as well as over the presence2
bombers and nuclear submarine visits. The chief executive of the Ryukyuan Government, Chobyo Yara, reportedly told the press that if the reports of nerve gas leakage are true, "it would create chaos on the island." eading Japanese newspaper has
)Vr.'irePor*:e^ass campaign would beon Okinawa to demand the immediate removal
of all "secret weapons" from Okinawa.
LEIonduras: The cease-fire which was implemented by both sides at midnight last night was still in effect0 EDT today.
It is uncertain, however, whether El Salvador will keep its side of the bargain. The OAS mission has been outraged at Salvadoran backsliding onpromises of compliance. Salvadoran President Sanchez' speech to the nation last night sounded no note of compromise and will add to Honduran skepti-cism of Salvadoran intentions. I
Honduras is concerned over the effect ofpropaganda, particularly exhortations toresidents in Honduras toifth column and stand by for orders to sabotage. The Honduran foreign minister fears this propagandawill stimulate widespread vigilante violence^ against Salvadorans in Honduras,
personal commitment, has given further encouragementovement that seeks to remove the constitutional bar to his runninghird term. t anniversary of the South Korean constitution onuly, Pak pointedly reminded his countrymen that social systems and constitutions are subject to "constant reforms" to meet changing.
Bolivia: onfrontation between GeneralPresident Siles was averted, at leastthe mayor of La Paz, retired General Armando Es-
cobar, banned political demonstrations favoringin next year's presidential elections. Re-
ports that demonstrations were planned foruly had angered Ovando, who believes that Siles isEscobar's candidacy. Escobar probably realized)he wasarticularly vulnerable position because
of the Ovando-Siles feud and decided on awithdrawal rather than hurt his chancesOvando at this time.
Central Intelligence BulletinOriginal document.