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Central Intelligence BulletinCONTENTS

ARAD STATES' ISRAEL: Israeli offensive regainssome terri tory. (Page 1)CAMBODIA: Mandato of the High Political Councilxt nded -indefinitely. (Page 4)

JAPAN: Japanese. Export-Import Bank to increaselanding (Page 5)

TAIWAN: Foreign investments rise. (Page 6)

APPROVED FOR RELEASEDATE: AUG 2007

FOR THE CORD: (Page 7) ,

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ARAB STAT''ES - ISRAEL: After three days of heavyfighting, Israsl has regained most of the territoryit lost to Syria in the Golan Heights, and has con-tained Egyptian forces to a narrow area along theeast bank of the Suez Canal. No otler Arab stateshave become significantly involved in the fighting.

Syrian forces dealt heavy blows to Israeli out-posts in the Golan Heights after fighting broke outin the early afternoon of 6 October. Syria breachedIsraeli lines at two points, captured the town ofQunaytirah, and for a time held considerable terri-tory in the 6entral sector.. By early this morning,Israeli forces had recaptured almost all territoryup to the previous cease-fire lines, and--accordingto Israeli accounts--had surrounded some Syrian units.Losses have been substantial on both sides. The Is-raelis have admitted losing at least 35 aircraft and150 tanks. in the Golan battle alone. Syrian tanklosses are placed at 300 by the Israelis, who claimto have destroyed 37 Syrian aircraft in yesterday'sfighting.On the Sinai front, fighting was initially lessintense. The Israelis apparently were satisfied to

contain the Egyptian thrust while dealing with themore pressing situation on the Golan Heights. TheEgyptians.succeeded in putting as many as 11 bridgesacross the canal, some of which were still in useearly this morning. As many as five Egyptian infan-try divisions and 600-700 tanks have moved into theSinai, according to Israeli accounts. The Israelisnow claim to have hemmed in this force, but acknowl-edge that removing it will be a formidable task.Contrary to their public statements, the Egyptianshave not made a concerted effort to strike into theSinai, suggesting that their strategy may be to takeand hold a relatively small area with a view to itspolitical rather than military 'advantages .

King Husayn of Jordan continues to resist thepressures of other Arab leaders, ranging from Libya'sPresident Qadhafi to Saudi Arabia's King Faysal, tenter the battle.

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Few Arab states have contributed meaningfulassistance to Syria or Egypt, although most haveplaced thoir military forces' on alert and: applaudedinitial 'Syrian and Egyptian successes. Sudan, Mo-rocco, Tunisia, Kuwait, and zraq have sent or prom-ised to send soldiers to the front, but these troopswil l not make an irmpact on th e m ilitary .s ituation.Some fedayeen forces have been active in southernLebanon, but these have been more an irritant thana threat to Israel. Zgebanon has provided token hu-manitariai assistance to Egypt, but its modest armyis concentrated around Beirut and is deployed inSuch a way as to guard against fedayeen-inspireddomestic trouble rather than an Israeli attack.

The -Soviet Union has -given political support tothe Arab cause, but has not made any moves to suggestit intends to become involved in the m ilitary act ion.In remarks yesterday, party chief Brezhnev placed theblame for the fighting on Israel, but offered only"sympathy" for the Arabs and reiterated Soviet sup-port for a political settlement.. Soviet officialshave stressed that the present situation must notjeopardize the general .improvement in US-soviet re-lations. .

The bulk of the Soviet Mediterranean squadronhas been grouped near Crete--well away from the com-bat area--and.has not been reinforced from the BlackSea Xle.et. Moscow has made fl ights toEgypt and Syria since 4 Octtrthese flig -wed.Ja. oev naval shinps--evacuated dependents of Soviet

personnel as well as some civilian and militarytechnicians.(continued)9 Oct 73 Central ntalugence Ilulkdie 2

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. Egypt and Syria have been restrained in theirpress treatment of the US, reflecting primarily of-ficial pride in the performance of their forcesduring the first days of fighting. All Arab capitalhavo been reported calm, with no serious anti-USdemonstrations. None of- the oil-producing stateshave threatened to cut off the flow of oil to theWest, although Iraq on 6 October nationalized theExxon and Mobil shares of the Basra Petroleum Com-pany.

Yesterday's Security Council meeting requestedby the US adjourned until today without taking anydecision. n the US proposal for a cease-fire, ac-companied by a return to the 1967 cease-fire line.Soviet delegate Malik Call d for a clear-cut state-n a neaps tooccup ed' err tories. C na

t a emat ims o *A;%J4-h "su er owers."e taig a ar zi0 on their possible acceptanceof a cease-fire, maintaining that any settlementmust leave their respective states in control of thedis uted '"occupied territories."

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