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Central Intelligence Bulletin
CONTENTS
South Vietnam: Situation report. (Page 1)
Laos: The government is acting to blunt further Conur.unistn north Laos. (Page 2}
Elonduras: The OAS Council haseeting of foreign ministers onuly to deal with El Salvador's failure toits troops from Honduras. (Page 4)
USSR-Asia: Collective security appeal (Page 51
l South Vietnam: Criticism of President Thieu continues to fester at home over his invitation to the Communists to participate in national elections
Knowledgeable South Vietnamese politicalclaim thatpeech sowed confusion and disarray among the population, and that many persons are losing confidence in the President. Some of these sources say there are real popular fears that further concessions will be made to the Communists.
Possibly to allay such doubts, both houses of the National Assembly recently expressedwith Thieu's actions and enjoined him against any further concessions.
Thieu, sensing the backlash to his speech,to be backing off somewhat on his proposal. In remarks prepared for domestic audiences, he has asserted that Communists will continue to beand jailed. Thieu further denied that he meant any approval of Communism, or disrespect for the constitution, and stated that it would take two years before elections including Communistcould be held*
The controversy over his early July speechThieu is moving ahead with plans to revamp the cabinet and to broaden his political base in the National Assembly. There are reports that each party, in his National Social Democratic Front will beabinet post, and that other progovernment groups outside thiswill also be represented*
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On the military scene, there continues to be no ground action of major significance, andallied cities and installations were free of VrJnemy mortar and rocket attacksuly.
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Laos: The government is taking steps to blunt further Communist encroachments in north Laos while enemy forces continue to mop up around Muong Soui.
eeting in Vientiane onuly, Laotian military leaders drew up plans to strengthen the government's hold over the portion ofientiane and the royal capital of Luang Prabang. Additional troops are being moved into the areaSala Phou Khoun and Vang Vieng,weep operation is planned to clear Routeouth of Luang Prabang. The recent lossmall governmentastride Routend an enemy attack against Sala Phou Khoun itself are fresh evidence of the government's vulnerability in the area.
in the Muong Souiultibattalionforceumber of government forward positions onuly, forcing the government troops to pull back to the San Luang support bi
North of Muong soui, enemy troopsovernment refugee center and placed heavy mortar fire on the government outpost at Phou So.
Communist intentions to the west of Muong Soui are less clear.
r5 North Vietnamese
attalion has recently moved into an area some three miles northeast of the junction of These troops may havein the recent attack against Sala Phou Khoun.
Central Intelligence Bulletin
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onduras:eeting
The OAS Council has
of foreign ministers onuly in Washington to deal with El Salvador's failure to withdraw its troops from Honduras.
There is widespread concern among OAS members over the future of the organization if El Salvador is permitted to flout the OAS authority. Salvadoran troops remain in place on Honduran territory despite OAS orders to withdraw by midnightuly.
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that the
cease-tire remains in effect, but there is deepin Central America that it can last through the week. Guatemala and Nicaraguaewattack on Honduras at any time, and they are ready to assist Honduras if an attack materializes.
Nationalistic feelings, fueled by news media, are strong in both El Salvador and Honduras. Hon-durans resent OAS failure to force the withdrawal of Salvadoran troops and are angry at the US for its refusal to give military assistance. El Salvador continues to charge Honduras with "genocide" andthat the OAS has been partial to Honduras.
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Intelligence Bulletin
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USSR-Asia: Moscow may plan to give moresoon to the appeal Brezhnev made last month forystem of collective security in Asia."
jttiat soviet ambassadors in Asia
will shortly be making presentations on theof an Asian security arrangement. jto Moscowd-juneeneralSoviet ambassadors in Asia have been taking
the line that Moscow's thinking on Asian security is similar to its thinking on Europeanthat is, that Asian nations should guarantee each others' borders and not join military pacts. They should also resolve their differences peacefully, cooperate in economic matters, and work toward
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