The CIA’s National Intelligence Daily for Thursday, 27 June describes the latest developments in Yugoslavia, USSR, Cambodia, Philippines and India.

Zhou Enlai and E.G. Whitlam discuss Sino-Australian relations, the Overseas Chinese in Southeast Asia, the Indo-Pak conflict, Great Power relations, Taiwan's international status, and other issues.

Stern reported that acting Foreign Minister Yoon was aware of NK-Pakistani-US communications. He reassured Yoon that the president policy of not holding discussions with North Koreans without participation of ROK had not changed.

Stern reported that Ambassador provided President Park substance of US-Pakistani-North Korea communication.

Young Kee Kim briefs Syngman Rhee on the Baguio military staff conference and labor recruitment of Filipino workers to California.

This CIA report on India, “India’s Nuclear Procurement Strategy: Implications for the United States,” has comparatively few excisions. It discusses in some detail Indian efforts to support its nuclear power and nuclear weapons development program by circumventing international controls through purchases of sensitive technology on “gray markets.” The report depicts a “growing crisis in the Indian civil nuclear program,” which combined with meeting nuclear weapons development goals, was forcing India to expand imports of nuclear-related supplies. The purchasing activities posed a “direct challenge to longstanding US efforts to work with other supplier nations … for tighter export controls.”

State Department talking points for analyzing the issue of a potential Indian Nuclear Test. These talking points review the state of play after Ambassador Wisner’s demarche to the Indian Foreign Ministry. Recognizing Prime Minister Rao’s cautiousness, US government officials did not believe that he had made a decision to test, but they were aware that he was under great pressure to do so. Therefore, the U.S. government was working with allies, encouraging them “to urge India not to test.” Parallel discussions were taking place with the Pakistanis over the production of enriched uranium over above the 3 to five 5 percent level that could be used to fuel nuclear reactors. The Pakistanis were denying that they were producing highly enriched uranium but intelligence reports suggested that they were contemplating such action or had already begun the process.

The State Department writes to Islamabad urging Pakistan to not react if in fact India chooses to launch a nuclear test. On 15 December the New York Times published a story by Tim Weiner, under the headline “US Suspects India Prepares to Conduct Nuclear Test.” While some Indian journalists and policy experts were convinced that the story was a US government plant, Weiner had simply used due diligence in pursuing a lead from a non-government expert on nuclear proliferation issues. Worried that the story would exacerbate regional tensions by encouraging Pakistan to “act in a manner that jeopardizes our nonproliferation efforts in South Asia,” the Department wanted to enlist the Chinese to encourage the Pakistanis to “exercise restraint in response to these reports.”

A cable detailing a possible plan of action regarding Pakistani nuclear and security concerns. The document includes a brief background on the situation and a three phased strategy with responses on the international stage, the establishment of a Presidential emissary and a “game plan” for Capitol Hill.

A State Department Cable detailing the visit of Pakistani Prime Minister Mohammad Khan Junejo to Washington D.C. According to administration officials, Junejo was “astute and well briefed” and professed to be responsive to the U.S. emphasis on the “absolute criticality” of “restraint” in Pakistani nuclear activities. In meetings with the press, Junejo “specifically affirmed” commitment not to enrich uranium above the five percent level.