CURRENT INTELLIGENCE BULLETIN - 1956/12/27

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03161779
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 8
• Document Creation Date: October 25, 2019
• Document Release Date: October 31, 2019
• Publication Date: December 27, 1956

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CURRENT
INTELLIGENCE
BULLETIN
co3161779 GL 04,0
3.3(h)(2)
3.5(c)r
74/
27 December 1956
Copy No.
DOCUMENT NO.
NO CHANGE IN CLASS.
[H DECLASSIFIED
CLASS. CHAI'F.D TO: TS S C
NEXT REVIEW DATE:
AUTH: Ff1 700t-2
DATEYV Oen REVIEWER:
a
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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Asw
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CONTENTS
1. PERVUKHIN HEADS NEW TOP-LEVEL SOVIET ECONOMIC
PLANNING GROUP (page 3).
2. INDONESIAN MOSLEM PARTIES REPORTED READY TO
DEMAND NEW CABINET UNDER HATTA (page 5).
3. LAOTIAN CABINET BALKS AT PROPOSED SETTLEMENT
WITH PATHET LAO (page 6).
4. COMMUNIST ELECTED MAYOR OF OKINAWA'S CAPITAL
(page 7),
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04.
1. PERVUKHIN HEADS NEW TOP-LEVEL SOVIET
ECONOMIC PLANNING GROUP
Comment on:
The appointment of presidium member
M. G. Pervukhin in place of 1%.0 Z.
Saburov as head of the USSR State Eco-
nomic Commission apparently signals
the beginning of strenuous efforts to ad-
just Moscow's plans to meet recently increased economic
pressures. These pressures arise from changes in eco-
nomic relationships with the Satellites, the need to maintain
large military forces, and the leadership's apprehension of
potential discontent within the USSR. In addition, the output
of basic raw materials and building materials has fallen be-
hind schedule.
The assignment of six top Soviet admin-
istrators--five of whom had been deputy premiers and who
represent all aspects of the domestic economy--as assist-
ants to Pervukhin, indicates the seriousness with which the
regime regards its economic problems.
The statement issued on 24 December by
the party central committee ignored all of these issues ex-
cept the shortages of some basic raw materials. The central
committee also apparently either rejected or postponed deci-
sion on plans for an immediate and "significant" increase in
housing construction revealed by intercepted messages earlier
in December.
The central committee statement reiterated
the main lines of Soviet policy set forth at the 20th party con-
gress. It also emphasized very strongly one of the basic poli-
cies associated with Khrushchev since he became the dominant
member of the "collective leadership"--the need for continued
primary emphasis on heavy industry in the race to compete
with leading capitalist countries in economic output.
The central committee also called for
greater economic decentralization and efficiency, in order
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to achieve the simultaneous fulfillment of all plans. Solu-
tions more far-reaching than these, however, will probably
be required to satisfy the additional demands recently placed
on the Soviet economy.
Khrushchev himself did not figure per-
sonally in the public statements emanating from. the central
committee meeting and no public mention has been made of
serious political problems which the meeting presumably
discussed. Reiteration of policies laid down at the 20th party
congress, however, and the appointment to the planning com-
mission of top-level administrators closely associated with
the Khrushchev-Bulganin program suggest that no dramatic
change in the top leadership is imminent.
Pervukhin's new appointment is in line
with earlier indications that he has been steadily improving
his position over the course of the past two years. In con-
trast, Saburov's planning organization has been directly crit-
icized by Khrushchev on several occasions.
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2. INDONESIAN MOSLEM PARTIES REPORTED READY
TO DEMAND NEW CABINET UNDER HATTA
A representative of the Masjumi, Indo-
nesia's largest Moslem party, will tell
President Sukarno on 27 December that
former vice president Hatta must be ap-
pointed prime minister to head a cabinet of experts which
Hatta would select himself,
If the president refuses, both the Masjumi and the Nandlatul
mama- the second largest Moslem party--will withdraw
from the cabinet.
Comment A cabinet crisis in Indonesia appears un-
avoidable in view of the government's
inability to influence developments in Sumatra, where the
army now controls the governments of two provinces follow-
ing a bloodless coup on 20 and 21 December. Withdrawal of
both the Masjumi and the Nandlatul mama would bring the
fall of the Ali government.
The Masjumi demand for a cabinet of ex-
perts led by Hatta is in accord with demands by Sumatran army
elements under Colonel Simbolon for the resignation of the Ali
cabinet and the return of Hatta to "unite and then lead the coun-
try and people."
President Sukarno prqbably would be reluc-
tant to entrust the cabinet to Hatta, with whom he has been in
basic disagreement.
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3. LAOTIAN CABINET BALKS AT PROPOSED SETTLEMENT
WITH PATHET LAO
Comment on:
The Laotian cabinet on 22 December re-
jected a communiqu�igned by Prime Min-
ister Souvanna Phouma and Pathet Lao
chief Souphannouvong calling for the inclu-
sion of several Pathet leaders in the cabinet
ut offering no effective safeguards concerning restoration of
government control over the disputed provinces and Pathet
forces. The cabinet wishes, however, to reach a settlement
and has agreed to give minor portfolios to two Pathets if the
Pathet Lao._ will guarantee the immediate imposition of gov-
ernment control over the disputed territory, and the dissolu-
tion of the Pathet Lao movement. Should the Pathet Lao agree
to these conditions, the government plans to turn the issue over
to the National Assembly during the first week in January.
This development forces the Pathet Lao to
choose between granting terms which would threaten its con-
tinued control of the two provinces or, by withholding agree-
ment causing the probable collapse of the Souvanna Phouma
government and with it the agreements already negotiated.
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COIVEIDEATIAL
4. COMMUNIST ELECTED MAYOR OF OKINAWA'S CAPITAL
Kamejiro Senaga, secretary general of
the Okinawa People's Party (Communist),
was elected mayor of Naha, Okinawa's
largest city, in the 25 December elec-
tions. Consul General Steeves notes that Senaga's victory
resulted from his extreme anti-American platform oppos-
ing further land acquisition for military use and favoring
reversion of Okinawa to Japan, lower taxes, and election
instead of appointment of Okinawa's chief executive.
Comment Senaga visited Japan last August to
propagandize Ryukyuan opposition to the
Price Committee's recommendation to Congress on the land
problem. His exaggerated view of the situation led to his
repudiation by groups representing Okinawan mayors and
local assemblies. Senaga's enhanced prestige as mayor of
Okinawa's capital and largest city, however, is likely to in-
crease the effectiveness of his anti-American propaganda.
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