(ESTIMATED PUB DATE) STATUS REPORT OF THE TASK FORCE SOUTHEAST ASIA COVERT ANNE

Created: 8/8/1962

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STATUS REPORT OF THE TASK FORCE SOUTHEAST ASIA

COVERTUGUST)

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Minority Insurgency 1.

Tho Kachin State Supreme Council apparently recognizing the fact that military means alone will not eliminate tbe KIA Insurgency problem, baa reportedlyolitical action plan to cause dissension among tbe KIA forces and to lessen tbe influence of the KIA within the Kachin State, if successful, the KSSC will notinal military solution on the KIA, but willolicy of "live and let live". Tha KSSC plans to allow the KIA to retain their arms and la prepared to assist the KIA to develop economically areas by which the KIA have established headquarters or outposts.

JFK LIBRARY MANDATORY REVIEWLK- Zf

APPROVED FOP RELEASE

4, During the first week of August the Burma Army dealt the Communist Party of Burma (CPB)evere blow by the capture of Underground Red Flag Central Committee member NAY DUN and General MYTNT AUNG, and large quantities of food, arms and supplies. The loss of supplies is of importance in that it may force the remainder of the organized underground group to disperse in order to survive. Thakin PE HTAY, who actediaison capacity between the underground Red Flag groups, and the Red Flag Front groups in Rangoon was also arrested by the Burmese Army- It Is expected that the Burma Army will carryimilar operation against the White Flag insurgents.

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