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104-10302-10030 2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

27 December 1963 SC No. 00624/63 Copy

WEEKLY REVIEW OFFICE OF CURRENT INTELLIGENCE

CENTRAL INTELLIGENCE AGENCY

THIS DOCUMENT CONTAINS CODE WORD MATERIAL NO FOREIGN DISSEM

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CONTENTS (Information as of 1200 EST, 26 December 1963)

THE COMMUNIST WORLD SOVIET TRADE ACTIVITY IN THE INDUSTRIAL WEST Within a week after the central committee approved Khrushchev's plan for the chemical industry, Soviet traders apparently had their instructions and were renewing contacts in the industrial West. CHINESE COMMUNIST LEADERS' AFRICAN TOUR While Chou En-lai and Chen Yi have been able to project an aura of Afro-Asian amity during the first two weeks of their two-month tour, they have not scored-comparable successes in the political or economic fields. EAST GERMAN REACTION TO RELAXATION OF BERLIN TRAVEL The East German people, while elated over the holi- day travel arrangements in Berlin, are publicly voicing hope that they may be permitted to visit their relatives in West Berlin and West Germany. NORTH KOREA IMPROVES AIR DEFENSE CAPABILITY Pyongyang has more widely dispersed its supersonic MIG-21s, has acquired relatively sophisticated new radar, and has equipped its IL-28s with an improved blind bombing and navigational system. NORTH VIETNAM'S MILITARY ESTABLISHMENT This military force, primarily a ground army with no tactical air and little naval capability, is nevertheless the most formidable in Southeast Asia. Its most notable achievement is its highly special- ized capability to support and maintain insurgency operations in adjacent countries. (Published sep- arately as Special Report SC No. 00624/63B)

ASIA-AFRICA ENTHUSIASM FOR SOUTH VIETNAM REGIME FLAGGING LAOS The military regime is beginning to take steps to make its counterinsurgency effort more effective, but the generals still seem to have little idea of how to rally significant popular support.

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Communist forces have moved to erase recent gains by rightist units in central Laos. Neutralist and Pathet Lao representatives are continuing their efforts to ease tension between the two factions. 6

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ASIA-AFRICA (continued) FRENCH CABINET MINISTER TO VISIT CAMBODIA Armed Forces Minister Messmer's visit in early Jan- uary is designed primarily to strengthen French in- fluence in the wake of Sihanouk's call for an end to the US aid program. ARABS PLAN NO OVERT ACTION AGAINST ISRAELI PROJECT Arab military chiefs apparently feel that overt mil itary action against Israel's Jordan River diversion project is not feasible, but sabotage of its facili- ties may be attempted. CYPRUS DISPUTE FLARES AGAIN The new outbreak of fighting on Cyprus is a reaction to President Makarios' determination to change the constitution so as to limit the role of the Turkish minority. BREAKUP OF THE FEDERATION OF RHODESIA AND NYASALAND The ten-year-old federation is being dissolved on 31 December because its black African population has persistently opposed it as a device to perpet- uate white rule. Its dissolution will end London's hopes for an economically integrated, multiracial state and increase the danger of bitter clashes between white and black nationalists in its three erstwhile constituent territories. (Published sep- arately as Special Report SC No. 00624/63A) AREA NOTE Saudi Arabia

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EUROPE THE COMMON MARKET CRISIS Agreements reached on agricultural policy on 23 De cember are apparently sufficient to discourage De Gaulle from breaking up the community. The agreement on a position for the Kennedy Round is not necessarily favorable to the US. UK-US FRICTIONS OVER SHIPPING POLICY The British Government has advised shipping circles not to comply with US demands for information relat ing to rate discrimination against US exports. WEST GERMAN POLITICAL DEVELOPMENTS Willy Brandt has again taken the center of the polit- ical stage with the success of negotiations to open the Wall for the holiday season. He has been named

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EUROPE (continued) NATO and Iceland

WESTERN HEMISPHERE DOMESTIC POLITICS IN CUBA Castro has cautiously continued efforts to reduce the influence of the Moscow-oriented Cuban Com- munists, who are said to have banded together to work clandestinely against him. DOMINICAN REGIME FACES NEW POLITICAL CHALLENGES The killing of 15 guerrillas by army troops ap- parently removes the insurgent threat but could provoke dangerous political repercussions. The head of the provisional government has already re-- signed. BRAZIL Appointment of Ney Galvao as finance minister reduces the already slight prospect that Brazil's critical financial problems would be handled ef- fectively. Other cabinet changes may follow. AREA NOTE Bolivia Page 14

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13-00000 TOP SECRET DINAR The Communist World SOVIET TRADE ACTIVITY IN THE INDUSTRIAL WEST Within a week after the central committee approved Khrushchev's plan for the chem- ical industry, Soviet traders apparently had their instruc- tions and budget allocations and were renewing their activ- ity in trade circles of the in- dustrial West. Contracts for fertilizer installations, plastics and syn- thetic plants, petrochemical equipment, and mining machinery are already in various stages of negotiation. Officials in Bonn report they have under consider- ation a proposal by a West Ger- man consortium to supply the USSR with $400 million worth of petrochemical equipment. A Soviet mission is negotiating with the British Imperial Chem- ical Industry (ICI), which here- tofore has supplied the USSR with technical know-how. ICI reportedly has offered to de- liver equipment and processes for the production of fertiliz- ers, herbicides, rubber chem- icals, and plastics. Negotia- tions also are under way for large numbers of Japanese chemi- cal fertilizer plants. In Another Western consortium, involving US equipment and proc- esses, is discussing delivery of a large oil refinery. addition, contracts for a wide range of other machinery and equipment will probably soon be signed. These contracts appar- ently had been postponed until the new chemical equipment buy-

ing program was presented to the plenum and allocations for various trade corporations for next year were approved. The Soviet need for addi- tional credit to finance planned expanded purchases is crucial. The USSR presumably can generate sufficient funds to meet down payments on sizable orders. However, credit arrangements must be set now to spread out the heavy crush of payments which otherwise would fall due in 1965-66 when equipment con- tracted for next year will be delivered.. Soviet ability to increase hard-currency reserves is not likely to improve in the near future. Moscow's current grain imports will reduce its gold reserves by 25 percent. If these continue beyond mid- 1964, the Soviet hard-currency position will be under further strain. Despite the bleak foreign exchange prospects for the USSR, Soviet officials appear hopeful that Western competition for Soviet orders will be adequate to foster Western governmental and banking opinion favorable to more and longer term credit. Moscow may also hope that a continuation of its relatively restrained foreign policy will be helpful in this context. While viewing the USSR as an acceptable commercial risk, the banking community has hereto- fore been unwilling to extend credits beyond a five-year pe- riod because of uncertainty about future political develop- ments. (SECRET) 27 Dec 63 CURRENT INTELLIGENCE WEEKLY REVIEW Page 1 TOP SECRET DINAR

13-00000 TOP SECRET DINAR The Communist World CHINESE COMMUNIST LEADERS' AFRICAN TOUR With two weeks of their pro- | continent. Criticism of the jected two-month tour of Africa completed, Chou En-lai and For- eign Minister Chen Yi can claim high marks for their efforts to project an aura of Afro-Asian amity and to identify Peiping with African aspirations. There is no evidence, however, that they have scored any comparable success in the political or eco- nomic fields.

The joint communiqué issued on 21 December at the conclusion of the Chinese leaders' visit to Cairo contains few surprises, and reports from Algiers suggest that discussions with Ben Bella are following predictable lines. Thus far the Chinese have at- tempted to minimize differences, play up past contacts, and press such themes as militant struggle against colonialism and "US im- perialism."

In both Algiers and Cairo, Chou's hosts sought to demon- strate their nonalignment by actions designed to play down the impact of the Chinese lead- ers' arrival. Chou was greeted in Cairo with a 21-gun salute, but Nasir was not on hand. In Algeria, Ben Bella was on hand to greet his guests, but the top- level delegation he sent to the Soviet Union just before Chou's arrival is receiving more pub- licity than the Chinese guests.

It has become increasingly apparent that a major objective of the trip has been to undercut Soviet influence throughout the USSR was reportedly a recurrent theme in Chou's four lengthy talks with Nasir. Nasir report- edly said that Chou talked about the USSR the way the Soviets used to talk about the US. He accused the Soviets of trying to colonize China, of breaking political and economic promises, and of becoming tools of the US, and he warned that any Afro- Asian country which became de- pendent on Moscow would suffer the same fate as Peiping.

In Algeria, Chou sounded a similar note. He cited China's early support for Algerian rev- olutionaries--support which ac- tually pre-dated that of the USSR. He has also undoubtedly scored Soviet unreliability. The Chi- nese may be pressing the Algerians to use some of the $50-million credit offered in October. This offer was made to counter a $100- million Soviet credit offered earlier the same month.

Sino-Soviet rivalry for African support also flared at the UN, where Peiping outmaneu- vered Moscow on the question of enlarging the representation in principal UN organs to accommo- date the African bloc. Soviet delegate Fedorenko had attempted to make it appear that the Chi- nese were opposed to the African- sponsored expansion plan because they insisted that any change in the UN be tied to Peiping's own admission to the Security Council. The USSR found itself holding a suddenly emptied bag,

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TOP SECRET DINAR however, when Peiping loudly repudiated Fedorenko's statement and accused the Soviets of using the issue as a pretext for op- posing Afro-Asian demands.

Chou can be expected to capitalize on this during next week's visit to Morocco and in subsequent stops in Guinea, Ghana, and Mali. No details of Chou's itinerary beyond Rabat have been made public by Peiping. The Communist World |_ Such secrecy may well be prompted by security considerations. Chi- nese officials were apparently seriously shaken by the abortive plot to kill Liu Shao-chi in Cambodia last spring. The Chi- nese envoy in Cairo reportedly told Nasir of concern for Chou's safety and asked that travel plans during the Chinese leader's visit to the UAR not be made public. (SECRET NO FOREIGN DIS- SEM) EAST GERMAN REACTION TO RELAXATION OF BERLIN TRAVEL Reaction of East-Germans to the agreement to let West Berliners visit relatives in East Berlin is hopeful but still fairly cautious, judging by re- ports from local party officials.

The party central head- quarters, obviously concerned that the agreement might have domestic repercussions, ordered district officials to submit immediate reports and detailed follow-ups on reactions to this partial relaxation of travel curbs imposed in connection with the building of the Berlin Wall. Most of the responses state that the people are elated but are publicly voicing hope that they may be permitted to visit their relatives in West Berlin and West Germany. Many East Germans express hope that the present move will be followed by other relaxations--a reaction probably quite unpalatable to the regime.

Public comment--at least as reported by the various party headquarters--is-still fairly cautious: One party member in Magdeburg said: "The reason we don't let our citizens go to West Germany is that we are afraid they will defect." But he was promptly silenced by comrades who parroted the party line on "the terror against our GDR citizens in West Germany."

Public expression of dis- satisfaction with harsh travel and internal controls has been recurrent in recent months, reaching a peak prior to the 20 October parliamentary elec- tions.

The people's reaction to the pass agreement with West Berlin points up one of the re- gime's major problems: how to project an image of itself as a sovereign state and of East Ber- lin as its capital without in- creasing discontent among its population, who still risk shoot- ing if they attempt to escape to West Berlin. (SECRET KIMBO)

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CHINA

NORTH KOREA Yalu KIMCHAEK CHONG SIN SINCHANGNI NAMSI CHONGJU SAMCHAM SONDOK FUKCHANGNI PYONGNI KOREA SUNAN JIMIRIANI PyongyangPYONGYANG ONCHON HWANGJAS KOKCHONGNI YONAN SAM site Bomber elements ☑ Fighter defense elements ★Combined command headquarters • Radar station ٠٢ ▲ East coast filter center Early warning radar coverage TOP SECRET DINAR 27 DECEMBER 1963 MILES 34447 WONSAN SEA OF TAPA CHANG JON •SINGYE PYONGGANG KAESONG Seoul

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13-00000 TOP SECRET DINAR The Communist World NORTH KOREA IMPROVES AIR DEFENSE CAPABILITY North Korea has recently taken several steps which signif- icantly strengthen its air de- fenses. MIG-21 (Fishbed) jet fighters, which were first de- tected only at Pukchang-ni air- field, now are being stationed at other airfields. Pyongyang has also apparently just acquired a large number of relatively sophisticated types of radar sets. In addition, the North Korean bomber force, which has a total of about 100 IL-28 (Beagle) jet light bombers, is in part now equipped with, and has been training with, an im- proved blind bombing and naviga- tional system. Testing of and flight train- ing with the new fighters--10 to 14 of which were apparently obtained from the USSR in the fall of 1962--were first noted in communications intelligence in June 1963. Since that time the MIG-21s have been detected frequently in flight activity involving ground controlled in- tercept exercises. Beginning in October, MIG- 21s have been noted operating from Wonsan on the east coast of North Korea. Their deploy- ment to this airfield places supersonic fighters on both the east and west coasts of North Korea. The North Koreans have re- cently expanded their radar coverage. Six new types of radar, at least one of which is believed to be exclusively of Chinese Communist manufacture, have been detected. For the present these radars will ap- parently supplement rather than replace North Korea's original three types--Kniferest A, SCR- 270, and Token. The identifiable new types include Kniferest B, Spoonrest A, and a new type of Chinese Com- munist origin which is probably a substantial modification of the SCR-270. Spoonrest A is sometimes used as the acquisi- tion radar for surface-to-air missile sites, but it is also used in an early warning role and is probably intended for that use in North Korea. Acquisition of these new radars reflects North Korea's efforts to extend the range of its early warning detection system. To improve height-finding capability, Pyong- yang has also introduced more sophisticated radars such as Rockcake and Stonecake. Another improvement in North Korea's air capability is the equipment of about twenty IL-28s with an improved blind bombing and navigational radar system des- ignated Shorewalk. When properly used, this system permits preci- sion navigation and blind bombing without the use of ground communi- cations which would betray the di- rection of the flight and the tar- get designation. (TOP SECRET DINAR)

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13-00000 TOP SECRET DINAR Southeast Asia ENTHUSIASM FOR SOUTH VIETNAM REGIME FLAGGING Communist guerrilla activ- ity increased only slightly in connection with the third anni- versary, on 20 December, of the Viet Cong's Liberation Front, despite advance Communist proра- ganda exhortation for a major military effort. The Viet Cong continued to direct attacks and harassing activities primarily at strategic hamlets.

South Vietnam's new govern- ment is showing extreme sensi- tivity to discussion of a "neu- tralist solution" to its in- surgency problem. The Communists' Liberation Front has repeatedly proposed such a settlement, and the idea is gaining new advocates as a result of Cambodia's call for an international conference. Saigon's military rulers last week closed down a newspaper which was expressing interest in neutralism. However, editorials in the vernacular press, even though attacking neutralism, have kept the debate in the public eye. On 20 December, Saigon students-- possibly encouraged by the re- gime--demonstrated against neu- tralism.

On the military front, the government is beginning to take some steps to overcome the leth- argy that has affected its coun- terinsurgency effort since the coup. A long-range pacification program has been launched in one of the most troublesome provinces in the northern part of the coun- try, and broad command changes have been introduced in two prov- inces south of Saigon where security has been deteriorating.

In the political field, the government has named 60 members of the civilian advisory Council of Notables. Returned exiles apparently are not rep- resented, and there is a dearth of direct provincial represen- tation. Many appointees, how- ever, are prominent political, professional and lay religious leaders who could provide effec- tive guidance to the regime if they are given a chance.

Apathy and disenchantment over the new government are wide- spread among such key elements as middle-grade officers, stu- dents and politicians. Criti- cism centers on the lack of firm direction by the ruling gen- erals, on repeated reshuffling of local officials deemed in- competent, corrupt or close to the Diem regime, and on the rise in Viet Cong activity. There are signs that junta members themselves are beginning to share the disillusionment of some cir- cles with Premier Tho's provi- sional cabinet, which is described as ineffective and regional in outlook.

Leading generals névertheless seem to have few effective steps in mind to rally popular support. Three generals recently complained to US officials that they were hav- ing trouble finding qualified Vietnamese to fill government posi- tions and that press criticism of their efforts was unhelpful. General "Big" Minh, the chief of state, has indicated a personal distaste for a prominent role, and has asserted that the people would gradually come to appreciate the new government as problems were solved on a province-by- province-basis. (SECRET NO FOR- EIGN DISSEM/BACKGROUND USE ONLY) 27 Dec 63 CURRENT INTELLIGENCE WEEKLY REVIEW Page 5 TOP SECRET DINAR

13-00000 LAOS Ssumao CHINA Nam Phong Saly Hou Dien Bien Phu BURMA Nam Tha Muong Sai Sam Neua 34435 Ban Houei Sai Mekong Sayaboury Luang Prabang P'aine Ban Ban Xieng Jarres Khouang Vang Vieng 13 Pak Sane VIENTIANE NORTH VIETNAM Mekong Kam Keut 8 Lak Sao Nhommarath HANOI CHINA GULF OF TONKIN Vinh (12) Thakhek 12A Ichepone Savannakhet 9 SOUTH VIETNAM THAILAND Road Track or trai! Railroad STATUTE MILES 100 CAMBODIA (23) Saravane Pakse (23 CODE WORD MATERIAL ON REVERSE OF PAGE Attopeu

13-00000 LAOS TOP SECRET DINAR Asia-Africa Communist forces have moved to erase recent gains made by rightist units in cen- tral Laos. Pathet Lao troops, reportedly supported by sub- stantial numbers of North Viet- namese, on 19 December captured Kam Keut and the nearby airfield, three days after occupying the key route junction at Lak Sao. Right-wing messages have de- scribed a key rightist parabattal- ion as "completely smashed." Communist units have advanced south of Lak Sao toward neutral- ist positions along Route 8-A, but there have been no indica- tions that they intend to press their advantage by a major drive on Nhommarath, which is still held by rightist forces. In other areas, there have been reports of only limited activ- ity, involving scattered skir- mishes and artillery exchanges.

Meanwhile, neutralist and Pathet Lao representatives are continuing their efforts to negotiate an easing of tensions between the two factions. At a meeting on 20 December in the Plaine des Jarres, both sides called for an "early" meeting between Premier Souvanna and Prince Souphannouvong. They also agreed, in principle, that elements of the coalition govern- ment should be transferred from Vientiane to the royal capital at Luang Prabang, which would be neutralized and placed under tri- partite control. Both factions reiterated their support for the formation of a mixed police force in a neutralized Vientiane.

General Phoumi's right- wing faction, which was not represented at the meeting, remains skeptical of Pathet Lao intentions. Phoumi apparently believes that an agreement for the neutralization of Luang Prabang is unlikely, but he may join in talks on the subject. He has indicated, however, that the neutralization of Vientiane is contingent on the willingness of the Pathet Lao to allow free movement in areas of Laos now under their control. (TOP SE- CRET DINAR)

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13-00000 TOP SECRET DINAR Asia-Africa FRENCH CABINET MINISTER TO VISIT CAMBODIA Armed Forces Minister- Pierre Messmer's visit to Cam- bodia from 4-7 January is de- signed primarily to strengthen French influence there in the wake of Prince Sihanouk's call for an end to the US aid pro- gram. Messmer's high-level entourage, which includes the chiefs of the Foreign Ministry's Indochina and Cultural and Tech- nical divisions, will probably recommend some increases in aid, but De Gaulle apparently has no intention of taking on any large new commitments.

French-grant aid to Cam- bodia since 1956 has amounted to only $15 million. Current assistance is threefold: military training mission of at least 250 men; cultural aid in the form of a university mission and 319 teachers in Cambodian schools; and the maintenance of about 40 experts in the fields of health and public works. In addition, a number of French nationals hired by the Cambodian Government hold positions of considerable influence in the Ministry of Finance, the Treas- ury, and the premier's office, and are among Prince Sihanouk's advisers.

Paris has indicated it has no intention of equaling the US aid program. Any increase in military aid probably would be limited to reconditioned and obsolete equipment, such as trucks and light armored vehicles. Increased cultural and technical assistance probably would include further help for the French uni- versity mission, more teachers, and 30 or 40 additional technical experts, especially agricultural- ists.

The extension of French aid will be complicated by Cambodia's claims for compensation for losses incurred as a result of the 1958 devaluation of the French franc. Since 1958 France has asserted that a large-scale aid program would be impossi- ble until there is agreement on an exchange rate, but a compro- mise may now be in sight.

Sihanouk has sought French help in maintaining Cambodia's policy of neutrality, and in recent talks with the US and the UK, France has supported his call for an international con- ference on Cambodian neutral- ity, despite US objections. Indeed, De Gaulle has consist- ently sought to meet Sihanouk more than half way, and Paris may now encourage Sihanouk to press this issue. (CON- FIDENTIAL) 27 Dec 63 CURRENT INTELLIGENCE WEEKLY REVIEW TOP SECRET DINAR Page 7

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ISRAEL'S JORDAN RIVER DIVERSION PROJECT - Canal or conduit, proposed or under construction Demilitarized Zone こと LEBANON ISRAEL Haifa ¿Dead NEGEV DESERT JORDAN Mediterranean Sea Tel Aviv-Jaffa GAZA STRIP NEGEV DESERT 34446 Lituni LEBANON Pumping Station (Under Construction) Reservoirs Tunnel Tunnel Tunnel ISRAEL JORDAN Jerusalem DEAD SEA Husbani Ranivts SYRIA Yarmak STATUTE MILES 30 CODE WORD MATERIAL ON REVERSE OF PAGE

13-00000 TOP SECRET DINAR Asia-Africa ARABS PLAN NO OVERT ACTION AGAINST ISRAELI PROJECT The Arab states evidently do not plan any overt military action against Israel when in late January or early February the Israelis begin pumping tests for their Jordan River diversion project, but sabotage of the project's facilities may be at- tempted. The Arab military chiefs who met in Cairo in mid-December apparently decided that direct military attacks are not feasi- ble. The chiefs reportedly agreed, however, that the states bordering on Israel should mount independent and uncoor- dinated clandestine operations. The Arab League Defense Council, which meets in January, probably will approve this rec- ommendation, but its implementa - tion is another matter. Egyp- tian, Jordanian, and Lebanese officials have indicated pri- vately that their governments have no intention of taking aggressive action of any kind against the Israeli project. Nasir, however, told the Canadian ambassador in early December that he was worried that Syria might act unilater- ally and present the other Arab states with a dilemma. Damascus will be under strong pressure to fulfill its threats against the Israeli scheme, particularly in view of the close proximity of the Syrian border to Israel's pumping station on Lake Tiberias.

Nasir's wariness about be- coming involved in a war with Israel over Jordan waters was also evident in a speech he made on 23 December. He empha - sized that the problem is polit- ical rather than military in nature and that the chiefs of staff cannot solve it. He called for a summit meeting of Arab presidents and kings to seek a solution.

Israel, according to the chief of Israeli military in- telligence, considers there is an outside possibility that Syria might bomb or shell the pumping facility's transformer station. However, the Israelis believe the primary threat stems from former Palestinians now living in Syria, Jordan or Lebanon, who might make a dra- matic effort to sabotage the project even though they prob- ably could not cause serious damage. (SECRET NO FOREIGN DISSEM/BACKGROUND USE ONLY)

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13-00000 TOP SECRET DINAR Asia-Africa CYPRUS DISPUTE FLARES AGAIN Fighting between the Greek and Turkish Cypriot communities, which began on 21 December and was continuing on 26 December despite efforts to obtain a cease- fire, is the culmination of a steady growth of tension on the island during the past few weeks. The new tension followed Presi- dent Makarios' presentation to Turkish Cypriot leaders of propos- als for changing the Cyprus con- stitution. The proposals, which essentially involved removing the guarantees to the Turkish minor- ity that had been written into the Cyprus settlement of 1959, were rejected by the Turkish Gov- ernment even before the Turkish Cypriots had made their views known.

Most of the initial fight- ing appears to have been between Greek Cypriot police and the Turk- ish underground, and to have taken place in the Turkish areas of Nic- osia.. The situation there de- teriorated progressively during the week, as the police lost con- trol to extremist groups of ir- regulars from both communities. A cease-fire, to be supervised by the British, had not been ef- fective as of the morning of 26 December. Fighting had also con- tinued at the port city of Lar- naca; the rest of the island was quiet but tense. In the face of these de velopments, the Turkish Govern- ment threatened to exercise its right under the 1959 agreement to intervene on Cyprus. Three Turkish jet fighters flew over Nicosia on 25 December, and Turkish naval units appeared off the island. Part of the 650-man Turkish garrison on Cyprus left its barracks to move into one of the Turkish quarters of the capital. Part of the 950-man Greek contingent then moved to protect Greek areas. The situa- tion evidently prodded Athens and London into a more active role, and Greek, Turkish and British forces on Cyprus have been placed under a unified Brit- ish-led command. Britain has an- nounced it is sending 150 ad- ditional troops.

The violence may make lead- ers of both sides more cautious in pressing political demands. Soon after the outbreak, Makarios told the US ambassador he would go more slowly in pushing his con- stitutional revisions. Both eth- nic groups, however, will be fur- ther embittered--particularly the Turkish community, which is believed to have suffered much the heavier casualties. (CONFIDENTIAL) 27 Dec 63 CURRENT INTELLIGENCE WEEKLY REVIEW Page 9 TOP SECRET DINAR

13-00000 TOP SECRET DINAR Asia-Africa AREA NOTE Saudi Arabia: Crown Prince Faysal appears to have weathered his latest dispute with King Saud without making any conces- sions. The details of a new arrangement between the two are not known, but Faysal is still firmly in control of the govern- ment. Royal Guard elements which the King ordered to posi- tions around his palace at the height of the dispute have now been withdrawn.

The dispute centered on Saud's attempt to resume per- sonal control of the government, which he relinquished to Faysal a year ago when his health broke. The immediate issues were variously reported to have been the new budget, which cuts the funds allotted to the royal family, and Faysal's refusal to give cabinet posts to two of Saud's sons.

In blocking Saud's chal- lenge, Faysal apparently was supported by most of the im- portant members of the royal family. Throughout the crisis the Saudi regular army remained under the orders of the minis- ter of defense, Prince Sultan, a Faysal adherent. Some