1973-10-15 Central Intelligence Bulletin: Arab States-Israel

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    EO 13526 3.3(b)(1 )>25Yrs Approved for Release: 2012/09/04EO 13526 3.3(b)(6)>25YrsEO 13526 3.5(c) TOP

    APPROVED FOR RELEASE - CIA INFOO DATE: 29-Aug-2012

    C ARAB STATES - ISRAEL: Egyptian forces made somegains in intense fighting in the Sinai Sunday. In-Syria, the Israelis extended their narrow salient,but continued to meet determined resistance.

    Egyptian forces launched a general attack alongthe entire canal front at dawn yesterday. Fightingwas particularly heavy in the Mitla Pass area, andthe Bir Jifjafah'air command center was knocked outof service for three hours by Egyptian air attacks.When the fighting died down last night, there wereconflicting reports of what the Egyptians had achieved.the three main prongsof the offensive were extended an average of six miles,with a maximum penetration into the Sinai of nearly19. miles; Tel Aviv claims to have held the Egyptiansto maximum gains of six miles. The Israelis reportthat they destroyed 280 Egyptian tanks, while losing30-40 of their own. The Egyptians admit to losing100 tanks, but say that 150 Israeli tanks were de-stroyed.

    The Israeli Air Force shifted the bulk of itsoperations from the Syrian front to the Sinai yes-terday to counter the Egyptian attack.|

    This suggests that the Egyptians havemoved mobile SA-6 launchers to the east bank, prob-ably- to provide cover to their troops advancing intothe Sinai. According to press reports, the Israelisare also moving additional troops to the Sinai.

    On the Syrian front, Israeli forces now controlSasa, .22 miles from Damascus, and small units havedriven to within 16 miles of the capital. Israeliattempts yesterday to push toward Damascus and to

    v envelop substantial Syrian and Iraqi units on theirsouthern flank, however, were met by determinedsmall unit counterattacks. The front from theDamascus-Qunaytirah road; south to the Jordanianborder, continues to approximate the 1967 cease-fire line. In the north, Arab forces--possibly )15 Oct 73 Central Intelligence Bulletin

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    Approved for Release: 2012/09/04APPROVED FOR RELEASE - CIA INFOO DATE: 29-Aug-2012

    CMoroccan--continue to hold a salient west of the 1967cease-fire line. Air activity over the Golan Heights,heavy 'for the past week, virtually ceased late yester-day as the Israelis moved their aircraft to the Sinaifront. Despite the general lack of progress by eitherside, both continue to issue reassuring public state-ments. Israeli Defense Minister Dayan claimed yester-day that the Syrian Army, although not annihilated,was badly beaten and defeated; the Syrian InformationMinister countered that Syria's position on the battle-field "is a good one."

    Jordan announced on 13 October that its troopswere fighting on the Syrian front, but early thismorning there still was .no independent evidence thatthey have entered hostilities. The single Jordanianarmored brigade known to be in Syria moved yesterdayfrom an area east of Dar'a to a position west ofShaykh Miskin and south of Nawa. Although this shiftbrought the force closer to the fighting, the brigadeencountered no resistance or air strikes. Two Is-eli aircraft overflew the unit,

    but were driven off by Syrian anti-aircraft missiles. The deployment of this Jordanianunit to Syria has considerably reduced Arab pressureson King Husayn, but high-level officials of the Jor-danian Government are still believed to be pressingthe King to allow the force to join the fighting. Inthe view of such officials, the heavy losses sufferedby Syria and. Iraq demand that Jordan, too, must "havesome martyrs."

    Saudi Arabian domestic radio announced lastnight that Saudi troops have begun arriving in theGolan Heights. This claim is undoubtedly designedto gain King Faysal the same good publicity that isbeing given King Husayn for Jordan's token involve-ment. In reality, the Saudi brigade closest to thefighting was still in eastern Jordan yesterday, farfrom the Syrian front with difficult terrain stillto cross.

    (continued)

    15 Oct 73 Central Intelligence Bulletin , 2

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    Approved for Release: 2012/09/04FOR RELEASE - CIA INFOO DATE: 29-Aug-2012

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    Approved for Release: 2012/09/04FOR RELEASE - CIA INFOO DATE: 29-Au -2012

    CLibya is moving elements of its 3rd MechanizedInfantry Brigade to Tobruk, the largest Libyan citynear the Egyptian border. Although it is not clearthat these units will proceed to Egypt, there havebeen reports that President Qadhafi is planning tocommit Libyan troops to the battle. According tothe most recent of these reports, preparations wereunder way yesterday for the transfer of troops andequipment from Libya by sea to an Egyptian port,possibly Mersa Matruh. A Soviet vessel reportedlywill be used for this transfer.

    The French Government last night asked Libyato explain reports that French-built Libyan Mirageswere taking part in the war,

    The French action followedan IsraeLi protest to France that the Arabs were- using French-supplied aircraft to attack Israeli

    positions in the'Sinai.two Mirages shot down yesterday"presumably" were part of a consignment transferredby Libya to Egypt.The number of fedayeen attacks on Israel from

    southern Lebanon dropped sharply over the weekend.The Lebanese Army has advised the US Embassy inBeirut that it detected only one instance of artilleryfire across the border on the night of 13 October.This reduction in fedayeen activity apparently is theresult of appeals made to Syria and to fedayeenleaders by Kuwait and Saudi Arabia. Acting at therequest of the Lebanese, who are fearful that thefedayeen's cross-border shelling will prompt Israelireprisal attacks against Lebanon, the Kuwaitis andSaudis asked the fedayeen to shift their militaryinitiatives from the border area.to the Golan Heights.Much of the current fedayeen posturing and theireagerness to shell Israel directly is a result of apower struggle between the two largest fedayeen or-ganizations, Fatah and Saiqa. Each is trying tooutdo the other without taking serious risks.

    15 Oct 73 Central Intelligence Bulletin 3

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    Approved for Release: 2012/09/04FOR RELEASE - CIA INFOO DATE: 29-Aug-2012

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    Approved for Release: 2012/09/04FOR RELEASE - CIA INFOO DATE: 29-Au -2012

    CUSSR - MIDDLE EAST: The airlift of Soviet sup-plies to Arab combatants is accelerating, but Sovietmedia coverage of the US role in the crisis has beenkept within bounds that are intended to preserve thefoundations of detente.. Soviet media have replayed foreign press re-ports of US military assistance to Israel, but haveyet to offer a comment of their own on allegedAmerican involvement. There are no indications fromthese relatively straightforward press accounts thatSoviet audiences are being prepared for Moscow'sdirect participation. Yesterday's issue of Pravda,for example, printed the US State Department's de-nial of a Spanish press item which reported 150 USpilots en route to Israel.Israeli actions against civilian populationcenters are the main targets of Soviet propaganda.The Soviet news agency TASS issued a stiff protestover Israeli raids on Soviet facilities in Syriawhich was printed in Pravda on-13 October. It saidthat "continuation of criminal acts by Israel willlead to grave consequences for Israel itself." Whilethis is the harshest Soviet commentary on the war todate, the threat is sufficiently vague to avoid com-mitting the Soviets to a specific response.Other-Soviet priorities also were evident in thesame issue of Pravda. In an article on PresidentNixon's meeting with business leaders, the newspapergave particular emphasis to the free trade aspects ofthe President's remarks. In addition, Moscow con-tinues, as of 12 October, to process emigrants to

    Israel.

    15 Oct 73 Central Intelligence Bulletin 4

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    INTERNATIONAL MONETARY DEVELOPMENTS: The MiddleEast war caused only minor fluctuations on interna-tional currency markets last week. The dollar lostsome ground against most major currencies, but itrecouped part of its losses by week's end.

    There was light switching of Arab dollar balancesinto sterling and the French franc. The action wasprobably a precaution, in the event that an escala-tion of the war prompted the Arab states to cut off,oil supplies and the US to freeze oil royalty dollarbalances.|

    The Arabs hold enough dollar reserves to putpressure on the dollar. Arab sales could, moreover,spark liquidation by other dollar holders. The Arabsare at least in part constrained by the lack of suit-able alternatives. Sterling--the major currencyleast encumbered by foreign exchange controls--hasapparently received the bulk of Arab funds. The in-stability of sterling, however, and possible Britishire over oil shortages, make that currency a poorharbor for Arab money. The exchange controls sur-rounding the stronger European currencies--theyminimize earnings on foreign-owned deposits--maketransfer of funds into these currencies extremelyexpensive.

    15 Oct 73 Central Intelligence Bulletin 8

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