YEARS OF CRISIS

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CIA-RDP67-00318R000100240001-1
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December 29, 1957
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Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 CrieTISION Diviulon YEARs OF CRISIS Sunflal_pecombor_224 1957 47)0 - 3100 P.M.. AUNOUNCERI CBS. News invites you to spend the next hour with Edward B. Murrow:and eight members of .broadcastingts most distinguished staff of news correspondents. This is the ninth edition of 1VARS OF CRISIS for Which CBS News has once again called in its correspondents from the important news centers of the world.. Here now is Edward R. Narrow. =ROW* Each year for nine years, CBS correspondents have come home at about this time to try to cast up a sort of national balance sheet. Met even ve.have always been right. We sat around here a couple of years ago discussing whether the title of this program, Years of crisis, was really appropriate. Well, this year, it may be inadequate, because we CertainLy have no shortage of crises. However, we will now attempt to unleaSh, a not too agonized reappraisal of where we stand as the Now Year is about to begin Welcome home, gentlemen. I suggest, that first of all, you answer for me a very simple question briefly as possible, and that is, what in your area happened that was basic, that was .pivotal, in the course of the last :year.. Letts Start with Howard IC. Smith, who was for ten years our chief European correspondent, and is now stationed in Washington. Upward. sturs4 wouviAlmrope in 2957,, 'I mafraid that neutralism became a -doctrine vith a future. . =nowt Devid,Sehoenbrun based =Paris, spends a lot: of time in North Africa. SCHOENBRUNI I think the initiative in NATO passed out of Americats bands into the bands of our allies. MORROW: Alex Nendrick, from London,. , KENDRICK* In Britain,, Ed, we look like the second-class Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001_1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 .ie YEARS OF CRISIS: 12/29/57 power that we have been saying the British look like. NaRROW8 Winston Burdett, based on Rome, spends a' lot of time in the Middle East. EMMETT t In the Middle East, the Eisenhower Doctrine collided with the iihrudichav Doctrine. NURROWI Ernie Leiser, from West Germany. =ISM: in mid-Europe, P4, this was the year that the Soviets put a couple of satellites up into orbit and pulled the rest of their satellites back into orbit. NORROW2 Pete Kalischer, based on Tokyo, just back from a trip through Southeast Asia, KALISCIIER In 1957, Ed, was the year that Asian astrologers cast their horoscopes by the light of two Russian moons. NURROW: Dan Schorr, from lioscow, SCHORR* In Russia, Ed, I think this was the year when, a dangerous inferiority complex was replaced by a possibly more dangerous superiority complex. .11URROWs Eric Sevareid, chief of our Washington Bureau. ?SEVAREIDs Ed, / think this year Americans lost considera'bli faith both in their fighting apparatus and in their high command. MURROWs Wells, gentlemen, this is not a very optimistic opening, / would say, but let's examine now a little - how did it happen,* how did we get ourselves In this fix? Schoenbrun. SCROENBRUNI The world's balance of power changed very drastically this year. Russia outflanked us in the Middle East, out- produced us militarily, and our country, unfortunately, became vulnerable to atomic attack. Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 11 TEARS OF CRISIS: 12/29/57 .3. sow, as all of you gentlemen know, this situation. is very different from that which existed when NATO was first created h4ck in 194 and it might be worthwhile looking backwards a little briefly to find out how we got hero. Dank then, we had an atomic monopoly and America was the Invulnerable fortress of democracy, living pretty safely behind our wide ocean moats. Then everything began to change at about that time. We had a highly successful foreign policy, the Truman. Doctrine and the Marshall Plan, the Russians couldntt attack us, they didn't dare attack our allies because of fear of instant atomic retaliation and I think we probably just fell asleep. We woke up pretty rapidly however, Ed. In the Fall of 1949, the Soviets exploded an atom bomb, in lp - a hydrogen bomb, and then this year for the first time our one sale moats can now be spanned by missiles and our skies by Sputniks. That whole situation was so very different - today for example. ? , that Ameriban leadership of SATO, which was once willingly given to us in return fort our Proteetion, has n been challenged. I4ORR0113 Row Id we lose it? iscnolarrauzi weal, ,probably we lost it because we thought , that a baliinced budget was more important than a balance of power - and a direct result of that was I flit* one of the most significant .facts of this post-war era. President Eisenhower went to Paris as the first American statesman seeking security for our country, instead of offering it to our allies. We vent there, Ed, you were with me in Paris, we went there to arm, to get missile bases. We were told instead to parley with the Russians. Now, East-West talks were not on the agenda of the Imo conference, not at least in the American plan., It was forced upon us. We did not lead; we were led. Why did this happen? Well I think we Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 SEARS OF CRISIS: 12/29/57 chanced or failed,to change with a changing world. And I think the man who told us why it happened was President Eisenhower himself at that same conference. He said we Ivo been guilty of false habits of thought. We thought that the free system was inherently stronger at all times, and in all fields, to the ?Communist system. We thought we didn't have to work or pay for freedom. Gentlemen, I would suggest that this is what it Ds brought us to, the brink of the gravest threat to our freedom in our history. ? ,IvraRROWs Winston Burdett, how do you think we got into this fix? DIZIDETT: Well, Ed, I think that it- the past year has proven anything in rq area; the Middle East, it is that Something was bandamentally wrong somewheire In our mid-East policy. he Eisenhower Doctrine has not worked out. We wont ahead on the premise that we Could sot. up some kind of Amoric4i protectorate over theleiiddle East by . . miii- tary moans, that we could Tice anti-Communist allies of the Arab States , and in this way exclude the Russians from the area. Ite proposed to extend the cold war .to the Arab world and we ignored both the inherent weakness of the Arab States and the emotional backfire of Arab nationalism. Lfe asked the Arabs to line up .on :our side,. :against 0.,(..6nd in effect, we told thorn that they ten142 get economic aid.frOm us $4.:,they did. And this antaged then. And trap, ,ti.ce, W,,..e..-::".0nVince41,thel4 :that our only desire *was'?deminate....4,;hem Instead of lotting the Russians ' dominate them. In p'.?:a:etride, I thM.ak we made one fatal mistake. failed to keep calm .4..,n;..a.erisis.;..;:tdrien the Syrian Loft-Wing rogine0:,:took :" .?? over our 6th Fleet sail:ea out en,:pStentatiaus:'inanenvers. A special ? =Vey from 'Washington:11ov out On emergency. mission.::. And this proved.. Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 ?. TEAM OF CRISIS: 12/29/57 to the Arabs that we were more alarmed by what happened in Syila than they were and they took this as a sign of fear and weakness. They took it also as attempted interference in their affairs and even friendly Arab governments had to come out and disavow us publicly on the ground that what happened in Syria was Syriats business. Itts'Irue of course that we face many psychological ItaPdicaps in the Arab world that the Russians dont have to face. Israel is the overriding issue of Arab nationalism and the Arabs look on us as Israel's champion. The won... ? word 'imperialist' which both the Arabs and the Russians pin on us, still has a high emotional content in that part of the world. But for this reason, / think, we can't go on under-estimating the Arab capacity for violent emotional reactions. Our 12andling of the Syrian crisis, .certain- 1Y, Convinced the Syrians that their deal with Russia was a great 'victory ? for Arab nationalism and independence and a' great defeat for noisy Western diplomacy. VITIRROW: Prom Pete Kalischer, as viewed from the Far East, how do ,we look? KALISCHER:? Well, when we lost our military pre eminence Ed, cur bases there became more of a liability than an asset. ?Wetre net a member of the faiiily in Asia, 'wore an alien Occidental nation and our leadership there has always been based primarily on power. We beat the Zapanese, Asia's first. team, during World. War II, We kept a an edge, a military edge, thereafter, and then we lost -our atomic monopoly. the first big crack came, in Or military reputation, when we didn't win the 'Korean war decisively. This enormously enhanced Red Chines reputa- tio? and it put us in, the position of not knowing exactly What to do. tie didn't lick tem, we didntt join tem, and we certainly pretended more or less that they 'weren't there. Now, this was supposed to isolate our Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 NEARS OF CRISIS: 12/29/57 isolate Red Red China from the rest of the non-Camauznist world, but ac- tually, all it did was isolate us. It made the Araerican eagle look like an ostrich. Now, Asians are perfectly willing to go along with an eccentric eagle, as long as it is an eagle and it can lick anything In the sir. Lit when the Spat/men went up, the Asians decided that our military leadership had vanished. =ROW: Mat did it feel like working in tb.e Far East when you were not permitted to go to Communist China? KALISCRER: Zell, sir, pretty much like a fool. / mean - we sat there and watched our colleagues from Australia and Britain and Canada and Zapan go in and out and we kept our noses pressed to the window. IMIMOIJa Alright, let's find out from Dan Schorr what the view is from Moscow. Dan. SCHORR: The view, Ed, from the to of the Kremlin, where I spent so much time in the past year, has been somewhat dim and clouded though one thing has become clear. The Sputnik vilich has been mentioned Before was a symbol, a very great symbol although not the complete sum of what happened in Russiats devil Ines with the world this year. The Sputnik and of course the missile that made it possible to launch these two Sputniks, changed the power balance between Russia and the United States, if not actually then at least In their own minds, but had effects elsewhere as well. It had an effect on. their control of the satellites. At the Kremlin Communist summit conference last month, the Sputnik was used as a symbol to cow the satellites and get them back into orbit, as Ernie Leiser mentioned. That they, in effect, hitched their wagon to this satellite up in the sky and used it to cow their earthbound satel- lites. And there Ire other effects in other areas. To the uncommitted Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 t. YEARS OF CRISIS:. 12/29/57 .7- nations they took this satellite and said 'we are now the country to VIMO to for aid not the United States.' And even internally it had very im, portant effects, because in a in a country like Russia,. which had two purges in the past year, and Where Ithrudhchevls regime had a great many other troubles. He vas able to use the Sputnik as a great attention distracter. He was able to tell the people Montt look down here 'where me have troubles with crops, with our industrial reorganization and one thing or another, look up there in the sky and see our great achievements., =mow: Dan, did the Sputniks distract attention from Marshal Zliukov s removal? SCHOR: Well, In the first place there was .considerably loss attention. given to Zhukvt's removal in Russia than in the United , States. But the second Sputnik, coming as it did the day after Zhukovis complete ouster, completely erased any idea of Zhukov from the minds of the Russians even if they were disposed to discuss anything quite as dangerous as that, In effect, 'what Ihrushchev has begun practicing is something that me might call Srutnilomanship and hets,practised it very succosSfully. That tms Russia this past year. =nous Well, Eric Sevareid, as viewed from 'Washington, bow do me find ourselves in this position and posture? SEVARBIDI Well, Ed, me all get obsessed with, government and I'm not willing to blame government for everything that goes wrong in afro? democratic representative type of society. But 'we have to begin with government policy. It seems to me that waive seen over the years here a kind of a. gradual, almost unconscious substitution of the word for the deed. Nom, we have made rather binding verbal commitments all over this globe without really providing the flexible military Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS: l2/29/57 .8- policy that would make them good in a pinch. I think we tve suffered from a paralysis, at the base, a paralysis of both our military structure and organization and our strategic thinking by reason of the Dulles massive retaliation doctrine 'wedded to the Iii3.Son-liumphrey econ.amy42rst I think people have quite obviously been lulled almost asleep over the years with endless assurances of peace and prosperity and a normalcy which we shall aertairly not see- in our generation: The strange thing is that the government seems to have lulled itself with the same 5in6 of wishful non-thinking? Atter all, it was just this Spring that the president was assuring us - an I tm, sure he believed this quite sincerely - that NATO had never boon stronger, and this symmer - that we could have a perfectly adequate defense for the 08-billion ceiling. It Was just this August that Secretary Nilson actually reduced the .monoys for missile development,' And all this in the teeth of what seems to most of us to have boon very apparent Intelligence information available to them as ? to everybody else. I have a feeling there has been a response here not to objective facts enough but too much to subjective illuSions. For example, that public opinion and the supply of Money in this Country are fixed ceilings under which ..* determine really what Government does instead of the other way around. And Diaybe more than; jUdi a tech-. nological lag, maybe a considerable breakdown, at least for .a time, in .** in the great art of leading a great people. uUatOUs Well, gentlemen, we certainly have not a problem but a vb.ole covey or clutch of problems. Letts see if we can define at least one or two of them. Alex Xendrick, you've spent the last two or three months studying the whole missile and weapons program, just how serious is our technological lag? Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEAR'S OF CRISIS: 12129,457 ICEITDRICKI Zi1442 AAeserious, Ed, as Dan Saban' made it quite plain. The two Soviet Sputniks were not accidental, they were - planned that way. They show Vast geience and technology and. perhaps even in their educational sp.**, which backs up science and technology, the Russians are our equal in some respects and perhaps even ahead of us. Of course, in military terms - everybody' should know by now - that the two Soviet Sputniks mean that the Russians can send a ballistic missile five thousand miles from their country to our country In less than a half hour. They can put a hydrogen warhead on this missile and It can cause wide- spread. death and destruction. its true that they cant do this accurately enough yet - and our experts tell Us that the Soviet ICBM is not yet operational. But the potential is there. And strategy is 'measured in terms of potential. And strategically, possession of the ICBM by the Russians would cancel out our strategic advantage, that is, our advantage up to this point, on? long distance Air Force, SAC. Now, its true that the Russians have a long distance air force too, their SAC, but with our warning system and our defense system we would have some protection against an attack by their long distance air force. If they attacked us with missiles we wouldr.lt have that protection. Vow* it ts also true that the missiles without a. defense - we can retaliate' with SAC still. We can ?build up inter-continental missiles the vay they are doing and the way we are doing and we may also be able to develop anti-missile missiles. But this doesntt remove that potential / was talking about, the potential that they have of In*Tring a direct strike against our cities. I4EMR011: Isn't it true also iaex, that they lead us in intermediate range missiles? Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF mums 12/29/57 -10- Emma Yes, they do s. in two respects, because they are also building submarines :which will be able to fire missiles and. those subma.rines can come rather close to our shores and. they can bring American cities under attack from short range distances. rather than from long range distances. smorambals Alex,, they can also..cancel put. with their 311E1ts our European bases (inter.) 'fps =WICK: lieu, exactly - what Ed said - they are ahead of us in intermediate range missiles as wen and this gives them the pa-s tential of attacking the cities of Western Europe, the cities of our allies, as well as our OM cities. SCIIONIMUITs That's what made them so nervous, at 'the' Paris .summit conference and so reluctant to give us la,unching pads in Europe itself. ?IMIDRICKs Our allies you mean. exactra -mug: Yes. Well, now gentlemen,, we went to Paris hoping that we cold get permission from our allies to plant these 'intermediate range missiles on their territory, but they seemed to be -somewhat reluctant. ,Leiser, as -viewed from G.ermanyt?iwhat do you think our chances. are :o -getting -permission to place these missiles on the continent? .? LEISERs, ? Iglu not so sure ie will, Ed.', :14 of course, extracted in Paris an agreement in principle to put. those bases on :the continent, but aetually in practice a good many of, our allies, only ware ? willing to have those _bases on .s.ogebody else's part of the continent. The tiest German newspapers for example have been busily printing maps to show that it really -doesn't Make much:sense to have the bases on Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 ,yEARbUIY I z.71 .01 German soil. They say that the only additional area brought into target mice is a slice of 'tundra some place northeast of Leningrad. The idea seems to be 'put the bases in Turkey or in Greece t any place but on our. soil. Well, of course, this is quite a change :rom a couple of years ago %then our allies were clamoring that we were depriving them of the modern weapons that ;they needed to protect their territories. - Now for the first time we we-ittAo. Paris and ye asked them to accept the mi.ssiles, or at least give us ?the real estate to put them on in order to help protect A:aerie= toil. An, actually, there ts another very remarkable change of scene from my point of view, the man who seemed to focus the reluctance to accept the missile was old lainrad Adenauer, who up to now has been our most obedient airs I think, you might say... (inter.) SCH9 oi ? LEISER: Unquestioning. who has - spy (laughter) - anyhow, he car- tainly has been a rook of support for the Dulles doctrine, of positions of strength. Well, at this meeting* the Europeans and particularly the Germans felt that he was the leader of opposition to Dulles. In fact, in Bonn after the Paris conference, the ;joke was that the German national anthem should be changed from "Deutschland Veber Alles" to ',Deutschland ?Ueber Dulles." Well, it's true that Adenauer led the procession, demaoling new parleys with tha Russians but he was almost ,trampled by our other allies who were equally eager. Howard Smith., one of the great advantages of being a chief correspondent is that you can wander about anywhere you like and you've been doing that for the last ten years, why don't you stun up now the political repercussions of Sputnik? Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 ,Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 'MRS OF CRISIS: 12/29/57 -12- Wells I thirk the problem that Sputnik creates for us outside our own borders has to be divided into two, the un.tom-' Bitted world - about two-thirds of the worlds and the 'Western allied nations. To take ,the =committed countries firsts we tire always suffered . frost an advantage in dealing with them because Rulsia has no history in Asia and .11frie4 and the Riddle East while the Western white man does. Until recently,- most or these peoples were subjects of Western empires aad so their resentment and suspiclon are fresh and sharp and so and also they don't distinguish between 'Europeans, who live in Europe, and Europeans, who over the centuries ham emigrated and call themselves Americrms. We're all tlt 83gssk teva? So in arc?* competition for their favor we're like a mile runner who's forced to start every raOe a quarter pile behind the Russian oppanent. Wells now since Sputnik I think our disadvantage has become greater because the main material aspiration of these people is to industrialize their countrie's rk.lpidly and here ? they zee the ??? to thetas hopeful image of a country, Russia, almost as der-'developed as they were a short while ago, is today able to beat the most advanced Western white nation at putting an earth satellite Into orbit, This is just bound to make them more receptive tap- preaches from the Russians and less receptive to approaches from us. jartROW: One of ?our major mis??? miscalculatio.uos wasn't it, that we assumed that a batkward people oomid not skip tslhole generations or eenturies in technological development and progress. I think the floor is lit??? littered with fragments of that ii... (laughter) ??? nous' in the (inter?) ??? sorry ??? SCHOMMUN's Howard, wouldn't you agree that the Cairo conference this week is a particular example of Russiats ,political and Declassified and Approved For Release 2013/04/30 : CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS t 12/29/57 economic appeal to the uncommitted nations, that they now can at least promise to export aid and technology to those (inter.) SUITE: .Absolutely. I think its a perfect example of the way they're trying to eloit Sputnik. But now about the Ifestern European allied countries, the problemts somewliat different. They Ire not so interested in the Sputnik as they are in the mighty missile that put a half ton Sputnik in the air. An Alex Kendrick said - that implies that Russia is now ahead of us in a new field of weapons whereby the Russians can destroy Western Europe much more efficiently than ever before and America is less able to protect Europe than ever before. This is almost found to Induce then to start thinking in terms of possibly becoming neutral in this battle - and I think that desire is increased by the fact that the Russians have or will soon have this inter-continental missile whereby they can hit America directly without even going over Western Europe. This is abound to bring about the thought in Western opt Europe that perhaps they might (up) out of the next war and 4ust leave it to the two giants. So, SI think the whole thing creates a trend towards neutral.... (inter.) Kr1011n as the of defense. MURROIit Yes. LE1SEat Well, Ed, I think that right now it makes them op* want to negotiate, not necessarily to (up) out, but to find some way to negotiate out of the dilemma that they fool that they're in. UMW: Well, Sevareid, since weir? talking about allies, and having allies is a relatively new experience for us, they revzosont a problem too, dontt they? Declassified and Approved For Release 2013/04/30 : CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS: 12/29/57 SEITAREID: Yes, I% afraid Howard has stolen a little of my proposed thunder here but (laughter) we talk all the time and the press is full of talk about the allied crisis of cenfidence in us. You can tura this around too. There tre? a let ot =Tried people. In Washington., about their etintidence in' Europe. Lots of Asians, who used to criticize.'us for concentrating too mumh, on military powc..,r, -JIM criticize .us for not con- centratin,g enough and letting the RUssianS get 'ahead of. us. 'There are Europeans who seen to want a doublv-standard alliances one that will protect them, and also give them an out if necessary. The words in the alliance, if they read its says in effects one for all and all for one. We have not yet sought it out; some of then are. ME:ROW: gentlomenk let's 'look briefly at the immediate and crucial hazards that confront usk the things that represent ? an immediate danger. itendrick., Ed, from the military point "otws Vas: shazards are very simple. They are the hazards. of sudden, death and with no place to hide. Because even,thO\ugh it is fantastic to conceive of such a thing, a Surprise attack by the Russians cannot be ruled out by our military planners. Every military man must have that as .one of. the - possibilities 023, iliS drafting board. The possibility of athreaturisra, ? let us say, iri the Tura:Ain, may not be a political factor. but it cer- tainly must be reekoned.as ?litary factor .or a pessible:militarY' factors Then -tiaras the second :type. of sudden death, let us- say eq.-. didenta3. death.- Somebody will push: the 'wrong button and put.. us into war. And then there's the possibility that ono ef our allies e' inadvertently 6.? advertently start a scrape somewhere that would in- volve us in Var. Those are the hazards that we face. Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS: 12/29/57 NUMMI viewed from Noscow? SCHORR: Dan Schorr, what's the immediate danger as Well; I would tend to discount the Immediate danger of any calculated surprise attack that Alex mentioned, but I go along -with him on then possibility of adveaturism in Russia, but only under certain conditions. Looking at it: from the Soviet internal point of view, I think there is a possibility of a.dventurism arising if the Squeeze is put too heavily on the present Ithrushohov regime, if they're put into the kind of a corner vthere they feel it necessary to take certain chances as a diversion. I think one 0. eza,mple of that was the trumped up crisis over Syria and Turkey, which happened to come around a time they were having trouble over liarshal Zhukov. I think that kind of danger does exist and perhapse might have to do something about it. IltEROWI Sevarcid, whatts the immediate danger as you view it from Washington? SEVAREIDI Well, I. think the great thing is that this government may not have grasped and may not help the people to grasp the full implications of this profound crisis, which is going to go on for a long time. .1 think there is another specific thing, Ed, relating to economies. I don't iiritni if there'll he an economic depression, in this country at all but we could do things that would produce overseas some of the effects of a depression, that is, -? and, that concerns this new Congress more than the Administration. We might even put ? up some tariffs. We nay considerably cut the amount and scope of foreign aid spending and technieal help and so on. This could have rather serious effects and this would split the present foreign policy down the middle. There was one witness, Ed, at a Rouse sub-committee last week on. this Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS: 22/29/57 .16. subject who said if we do this tthis is like asking one Siamese twin to play the Noonlight Sonata on a ukelele while the other does a jailhoUse rock withIltx..-nilya Lionroe., Yon can't yrm can't do it that way. WflROU:ICallscher, what's the immediate hazard viewed from the Far East? KALISCIUlts The immediate hazard, of course, is the acci- dental war, the adventurism which might occur say in the rormosa Straits or in a divided Korea. nut X think really the great hazard is the fact that weal lose the uncommitted nations like Japan and India to com- munism. If me do we could lose the whole shooting match with a whimpe'r not a bang. India mould tip the scales, I tin, out of sheer numbers, 360.m5llion people, Japan, because it's got the biggest industrial complex in the Par East, and when you've got that tied up with Siberia and China you have a very formidable complex indeed. And Japan is particularly vulnerable because it's' in an export-or-die race for survival. If we raise tariffs, if we cut down. J'apants free world market through a recession, Japan must look elsewhere for trade. .And I say that we very possibly we can create the biggest ringtailed economic. and political crisis in Japan by creating that kind of a crisis. NORM Leiser, what ts the view in Germany? LRISMI Well, Japants not the only. place,. Ed, where a depression could bring catastrophe. The Germans are seriously worried about a danger of a depression and they think that the principal. likely source of that danger might be the United States. A depression here would infect all of the European economies. The democracy in West Germany has been growing surprisingly strongly in the .4.. with its roots in the fertile soil of prosperity. But if the economy went bust, I think Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISISt l2/2?/57 ?As 4.tat all the-6reats. about the future of democracy in West Germany vould have rto. be oft!, Schoeribruns :what Xs Vur view ..on the Immediate . ard? SOHOENBEVONs I see' two shoed:, Mt .On?e saw at the Paris conference . tegethers :that:lac:the state of :leadership of "tlup., 'WeStern mad is extremely precarious. ?; Tho- liealth., of ther:AmericanIPresidents of courses is', ISI pride-14)6.1T Owls. at: cencein:-. As tor the German Chandellors heist I thinks 82i#yrosiiiold,-.next weeks .and-:the old French Premier is not like3,7 to grOV -ca.& itcyffice.. If there:::vero.,:tv::::ohange,:of ?regime Fritnost*, and;* Germatii:. that could z wreck NATO tenil- such a crisis indeed . is ahead.* In i9&. France , is facing in the Algerian 'war a arias -that 1 could. - bring': abogt aight. or" a Leftoqing,- Oottp letat:?.: ;lows gentlemen, dontt:holdTme..?to.:this?* I don't ea its going_-te:happen:'.:,-:37pr:.:- the first times -howevers it is, .possible. ;.: And !Matto the .second :hazard,. the war in: ?,?Algeria-s,:wh.ich is spreading its flames throughout north:Africa and Which tight well. provOko?.en-.anti-Christians: enti?Dastern- bloc from the :DardaN. ? miles- to ? Gibraltar:"- --trortawa;. Ami?stipii.ott as viewed. trom. the Biddle.:-Basts what ts the Immediatei'hatard:to:jil? -- 33131=1"21 1l, there are?.immediate-haterdss ., ? ? ,almost every step," that :we:, take . there.. One Western diplomat in lordan told *.te recently that the two worst calamities he could Imagine happening would be the death of Icing Eussein and a revival of.. the ,ArabIsraeli disputer over the Gulf of _Aqaba. 1114sein alone holds Jordan together and his death would bring down the ?pro?ritigg,:tzfa govornment of t Couatiril, Noiri, noboal4nOI;is: when or *tether :the Bent/4ns or .t4e-Saudi Arabians a.re geing to tr.r.: tio 'close' :the aciaba GaITtoisraols ; :But lie Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS* I2/29/57 do know that neither Nasser nor King Saud has forgotten that issue. it they revive it we will be caught again right in the middle of an Arab- Israeli dispute. There's always tb.e hazard ?or new outbreaks on the borders of Israel. If there is serious trouble, even trouble short of war, on the Israeli border with Jordan, it will not :be long before jordan slides into chaos. Hussein woad find impossible to keep the Syrian Army from rushing to 'his aid in the' name of Arab unity... And in that event it seems certain that the Syrians. would not get out again. Finally, there's the danger that if?Jerdan?falls, AITIMArt will then become the base of operations for the,Dgyptians and the Syrians against their next target; Iraq. ?17ot a very pleasing prospect,is it? Howard Smith, what's the immediate hazard as you view it? ? SII=Ht -'tiell, with some reluctance, I must recall that before we got' into the Sputnik cloud me were suffering from a black eye called Little Reck. The ugly photographs a white mobs beating up Negroes appeared on tb,e front page of almost every newspaper on earth and I don't think the press abroad was very fair to tes. I don't think they noted the fact that in fact we've teed? a great deal of progress on this problem and I think 1:e still are. They- just noticed that the mob did this. And in a world which we have to Court for our own survival and a world which is two-thirds colored, I don't think we can afford any more Little Racks. KURROWI ? Well, gentlemen, we've drawn up something of a list of our liabilities and a rather formidable one it is, too., which certainly leaves no room for complacency but after all our posture is not prone, we have very considerable =sets and I think it might be useful at this point to ,try to total up a few of the assets. Ilby don't you start- Sehooribrusi? ? Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 iwin5 or CRISIS: 12/29/57 SCHOEITEMP: I think that one of our liabilities is still our greatest asset and that is NATO. NATO is still the richest, strongest, voluntary coalition of free nations in the world and that's' tut enormous asset if we can hold it. NATO. conducts some two-thirds of the world I's trade. Its mines produce More Coal than the rest of the world together. Its furnaces pour more steel. Unfortunately, the rest of the world, the Communist world, .is using more and thore of its steel to build rschools. And, for example, although Russia has half as much steel is the United States its turning out twice as many scientistt. That's a very real danger to us. I think that our basic health is sound. I think our assets are very great. The problem is how do we make the best use of them. MORROW: Kalischer. KAMMER: Well, I think Japan, the ,innate conservatism of Japan. in Asia is one of our biggest assets, because they-Ivo got a high standard of living, which we helped them get, and they want to keep it. Surprisingly enough, our big asset in India is Prime sinister Nehru. Now, ,Americans often feel that Nehru is splitting hairs when the Indian shotild be out splitting logs. But he is a working democrat who wants to make a modified form of socialism work. I think we have an aatet in South Vietnam, which is a little country, but symbolically twenty-two Vietnamese offered to man the first American space rocket once we got it up. And, finally, I think we've got an asset in the fact that China, Red China, is feeling the pinch of paying for the Soviet technical aid program. MORROW: in the Middle East? MENET s Winston Burdett, what are our assets as viewed Well, Ed, I think we have one big immediate Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 !EARS OF CRISIS% 4.2/29/57 asset in in the Kiddie East, the United Nations, and that means two thingst the personal diplomacy of Dag liammarskjold and the united Nations Emergency Force, which stands guard at the mouth of the Gulf of A aba and in the Gaza Strip. I tMnir that very few people realized last month that for a few days at least, we were at the edge of something very deep Miring the latest border dispute between 'Israel and Jordan. Dag liammarskaold flew out there himself and by that diplomats on-the-scene thought must have ? been Seale Ida of wizardry, he cleared up the trouble. Nets an invaluable asset. Also, thorets veri little attention given to the job done by the UN Emergency Force. A year ago, I remember, the 1lsraeUs were saying. that the UN would be Powerless in Gaza, it would not be able, they pre - dieted, it would be unable to curb Egyptian raids across the border into , Israel. And many diplomats and mem* correspondents, including me, were almost equally pessimistic. So, I -think it's worth recording, a year later that we were wrong and that the tome has been with every dollar, - that's been spent on it. N'ORROLT:? Of course, it doesntt have enough dollars for its support at the moment because some nations have refused to pay their appropriations. Dan Schorr, as viewed, from Moscow, what assets do we have? ? SCHORR: I thin, Ed, the greatest asset that we have in Russia is the growing desire of the Soviet people for something that I would call normalcy ezeept that it is--not normal, at least for some kind of a decent or better life =rimy. Forty years after the revolution, I think the flaws a fanaticism have damped down and the people are just in a state where they want something a little better and a little re- laxation. I tbinIt they would like to bet as we are accused of being Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS 01? CRISIS* 12/29/57 ? co.mplacent. They'd like their chance at complacency too* nit. this represents a pressure on. the regiMe.* ?Ur* One of the ,reatenzt.whar .1thraehthev feels somewhat oversscemmittedlin promises of .4,14 to un committed countries,: promises of aid. to :the ,Satellites. ''X think be es .been forced to promise some. 44 to his own people . .404 ths.a: represents a. pressure forreduction of the. arms burden*: It ?doesn't . . _ . :operate :as directly as 1.1,?? uould. In. this ,e0ortti7 The seat of ?Over' remains in the Xrenain, they're awfully far from the people, but in- , , directly it's increasing. And one of the reasons it's increasing is that the people aren't so numb or daub any more* There's been a lot of educa- tion* And the education that its taken to make Sputniks has also produced a lot of thinking* And as the people think they _aren't pushed around quite so easily any more. You feel it. You feel it as you travel through Russia* Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 TEARS OF CRISIS: 12/29/57 munowi , Are you Suggesting that there might be a mite-. ititioa of, the 'Sputnik makers sometime? SCHORR: Well,: I don't want to play :with the -word revo Iution, I wouldn't wait to suggest that this Ru.sala is going to go up. in flames of 'revolution or counter.revolution very Soon.. I think in the ? terms whicb you mean it revolution asa kind of a mental and spiritual revolution - yea, I think that ti*. Sputnik 'yokel* don't like the. Oeanuuli t? gobbledygook, I think they will rebel in their ova vay in time. . MORROW: Leiser, what are our assets as viewed from Germany? 1.1DISIUtt Well, in Central Europe F4., a Very strong asset , is a Germany .. at leaat a West Germany that for the first time in this Century is not seeking military Or political adventure. The Russians may as Dan has just said be lookt.ng ?ior a better life ...,the West Germans have got it and they want to keep it. They have a Standard of living that IS not beginning to approximate ours ,and they like it. They have an economic tlay of life that is nou beginning to approximate ours and they like it. Thay are not in a mood. to tintrar recklessly with events. MORROW:, Kendrick, what are our assets as viewed from London? KENDRICK: From missile Ituul? ? 1113RROW: Missile land, alright. : KEIMRICK: I'm with. Dave Schoenbrun in believing tb.at a liability and even a hazard can also be an asset. Nov, missile warfare is still in the future and potentially Soviet missile might could cancel out ,our SAC forces but right now, we still possess the power of deterrents. We have airbases at home:and overseas, we have _allies, we have a long distance airforce, we have carrier fleets and all these, I think serve Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEZIAAncW Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 ?I NO.Lilib.04.1.0 ? ??? I -23- to remind the Russians, that -whatever war may do to us, it webld be suicidal for then. Nows this is a grim and a most horrible asset, but. it's still art asset even though it may only be temporary. MUErtOlit Dan Schorr, is there much 'wide spread fear of war in the Soviet Union, would you say? SCHORR: There is a great deal of fear of war in the Soviet Union, It goes up and down. It reached a new peak just around the time of the Turkish-Syrian crisis, Ah? they are constantly being told that the Russian Government doesn't want war but constantly being told also that we do, and they always interpret that in terms of the intentions of their awn Government, MORROW: Eric Sevareid, -why don't you sum up o.ur assets as viewed from Washington. SEVAREIDs Well Ed? ... since time and apace our co.equal, so the scientists tell us, that with the loss of the, protecting oceans we have lost the asset of time, but that's about all, I think. This country is by no means a push over. We have everything else if we use it. We've got the greatest industrial plant in the world and the greatest industrial leaders. We have a wonderful pool of scientists and engineers if their energies are channeled. We have unlimited money though we act as though- we're almost broke half the time and I think we have a -world record a generokkity and good will toward other parts of the world and of non aggression, that honest men cannot really doubt. We have a President that people will still most illingly follow if he cart summon the personal strength and the personal will to give them the lead. We have a great deal. MORROW: Well gentlemen, ye have now at least tried to lay out in general terms our liabilities and our assets. Now, 'let's go Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 raRs a_Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 to the simple problem, something must be, done. What should us ,402 Kendrick. KENDRICKs Bd., I thirsk the first thing to do and I don't naan the only thing, but the first thing to do is to catch qpimith the Russians in missiles. This may not change the fact that the Russians still have or /All have the ability to bring our cities under their missiles, but it might at least give us a stalemate in this field of intercontinental missiles end certainly it mould do much to restore our confidence and our psychology of leadership. And even though ve started five years behind the Russians in the big mivsiles? a lot of people here believe that me can catch up mith them in tuo or to and a half years, provided of course, they don't step up their pace to much. Bbm, another thing me must do is remember that a missile* test is also a test of nerves and mo should not magnify the natural misfires and normal failures that you get in testing. Thirdly, I think me should lift the veil of atomic aecrecy that still exiats betmoen this country and our allies, because only in this may can me further instead of hindering =clear progress and anyway me don't have secrets from the Russians. But, moot of all, I think that me have to change the climate in this country. I think me have to stop being anti- intellectual, wive got to recognize that an egg that an egghead MY be abetter inve tment then a blockhead. Remover, I mouldutt put all our egg beads in one basket (LAUGUIvA) a basket of science, I thirer they should. be spread around in the general field of education. HURROW: SCHORRt Dan Schorr, vhat do you think we must do? Well, I've been listening to Alex Kendrick, and I'll admit that I'm comouhat depressed. Not so much by uhat he has said, Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 TEAR& Ur C.ILLO.LCIS W I as by the emphasis that it seems to indicate. Of eeeXee we have to try .94 (voice in background) 0** and your lucky, (LOOTER) although, I 4=4- knov, maybe before these miseiles start to fly it would be luckier to be in Moscow! Of course, we have to try to catch up Ifit# Russia ,in the field of missilee that sort of goes almost without saying, but even if we do, and I assume we can in proper time, . I'm not quite sure 'where that leaves us and I think that it omits one opportunity that there is to find some kind of a better and more real solution then just catching up and then keeping pace in means a destruotion* Ton remember a year ago we discussed just after the Hungarian rebellion, the possibilities that existed then for e0X8 kind of a deal with Rusti& to use a crude term. They seemed to be ready then for disengagement and had offered us some kind of.a zone *6* deneutralixed zone in Europe extending five hundred miles both sides of the Elba. They were then off balance and I think the terms for such a deal were pretty good. Nov, they've subdued Hungary, again,. now they have their Sputniks up in the sky' and the terms are less good, but / still think there are possibilities for dealing with the Russians and for getting 130Me kind of disengagement in Central Europe. The reason I think so, that the pressures are still strong in Russia* I think they need very badly dis- armament agreement, I think this vas indicated by the way only this past. week Khrushchev announced a out in the armed forces manpower based on nothing more substantial. then NATO's statement that we didn't vent to ' use force a statement that NATO had made many many times before. I would like to see those opportunities explored. If not, I don't know ? what's going to happen. But even after veva explored those opportunities and assuming - which I do not assume, that we could get some kind of disengagement, then we really go in for the .long haul race - the big competitive co-existance and there it seems to me, we have to catch up Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 - =as AV CRISIS; l2/29/57 'with Russia in those fields of ecienci 'and education ,here at 'the Moment they are ahead.. And .theres / just vent to make one brief, remark based on observations recently in,talking to the Soviet professors arid science students. Celan; homeS:-It seems to ime that many americans put to much emphauls on the price. 4g attaehed. to catching up with Russia in. sciences - . . and it seems to me from dealing 'with them, looking at and listening to Soviet scientists, that their Ilona.* the compensation that they gets haw veil off they are ptirsonai4 isn't the rain point, The main point for them is they have the laboratories and the facilities and the opportunity.. to do the kind of vurX they love to do and that this vork is valued in their society, 8CROEN3RUNI Anil they have a status in their society. SCHORR: Yet,. it Is status a sense of of role of function 'which everybody values, partly this is I think, because science is a kind of a(v/ho'ainy)vord in a'Communist states but I think science can 6td . be a yenough 'word hero even ladle preserving _other tka:4.1y)thinge. SOMME:Rh Irou'd say they were pro...egghead In other 'words?: SCHORR: Yes, they are pro-eggheads, StriTlit . I've heard it six141 that part of -the incentive to being a scientist in Russia is the disincentive of being anything else in Russia. (LOOTER) SCHORR* There Is some trath. in that but I. don't Oink it tells the vhole stery., MURROUt Smith? *filet do you think we must do and urgently? SNIT& Veils 1 am certainly in agreement with thoee 'who think that our diplomacy Ought to be much more affirmative where it has been negative and Should, be more "nipple 'where its been rigid. In fact, I don't think were going to keep our alliance with us unload it becomes Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS ? OF CRISIS; .27.? more affirmative and supple, but ha,vinz said that I would Ii.ke to agree With. Alex Kendrick that our top priority has to be making those new weapons. IA. respect to getting a disarmament 'agreement Vve covered almost every disarm* ament conference thee r has been and I think its going to be extremely difficult without those weapons :This is a.,Very complicated thought, can I pursue it a little !MEOW: SMITH: Please dc. The thing that most disarmament talks rum up against and stop at is.., the fact that Russia has one built in advantage over us I. she she ,can launch a surprise attack on us 'whereas we cannot ialmok a surprise attack On Russia. ?Paassia can keep secret all the move- ments it -takes to prepare a surprise attack but we cant. They would read about movements in allou.r newspapers and hear it on the radio and possibly see a little of it on television, so it's very hard for t1,0 to do it, Now . any disarmament agreement row:liras a good degree of Inspection of each Country to make 'sure the agreement is being kept, and it Russia agreed to that she could no longer launch these surprise attacks, She could lose her greatest advantage! SCHORR: U 2 could interrupt you for one minute here, I think as long as we concentrate on this question of inspection, the possibil- ity of a disarmament agreement is going to be very slim indeed. The kind of Inspection we want is a.. kind of inspection that Russians vonit let .11u.ssians do in their am country and with the underground launching pads and and the missiles on stibmarines,, it does seen to me that this question of inspection is getting a bit outdated. MUMIOW: Well then you are saying that there is no real chance. SCHORR: _I -M. what the Russians want is a lot of things, Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 4 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS: 12/29/57 -28- mht0h I don't hope that ge sill give theip,.but"X do. -think the approach to the problem inAtead of an overe.11 disarmament agreement with inspection .instead of trying to decide to aVoill surprise attacks in a clinch,: Is to try and break out of . the:. clinch to try to disengage, to try,:to..... , It tame- :tide to try and ..break out of la clinch.. SCHORR: --Yes.' (severet sleeking simultaneously) ICALISCIER: Once you have inspection, Ban., how do, You know that any agreement .14.g log to .be .kept? SCHORR: . You can Start with a partial agreement TeMb. of Europe iwhere you Can inspect, but an overall disarmament agreement with inspection in Russia ic just unpalatable to that regime as long as it is Communist and Its afraid ittcgoing to remain Ciimmunist for still a littiv time PITIRROW: Leiser, vhat what do you think lie ought to do as viewed from Germann LEISERt . Well, Ed., our European allies emphatically think that *we should .start to negotiate and start now. Th.eir attitude ? seems to be, donn just stzu3d there say something., Well, if vette to say anything and find out what the Russians real answers are, I think that we're going to have to aal, it quietly behind closed doora, using the- techniques of old faShioned diplomacy.. I think 'we've had enough of _ Summit meetings, beating of the propaganda. *Immo and the clinking of the 'martini glasses. I think perhaps an example offers itself in 'what happened 'when Russia's Malik and America's Jessup go together and settled the Berlin blockade an agreement by the way that has stuck. NENDRICICI (inter.) What do you mean that the Russians vented to settle the Berlin blockade, how do you know that they really want to engage in disengagement? _ _ -? - ? rat %elm+ vie try. LExa Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS. OI' CRISIS: -? AzizY/Pi .29. KENDRICK: LEISER: SCRGENBRUN: Ales yoa used to be in and the Iluesiauis? disengaged from Austria. KENDRICK: Well, they proposed it. (several speaking 41111ultaxteously) We can only find out by negotiating.. 14URROW: LEISER: 'That se Go:ehead -tail, I uas'go to ' eay, ,that the the technique of negotiation must be the .614 fashioned diplomatic kind. The substance of negotiation I think, must startModestly. .We: start :email, Ita: dozist try and agattie all. the. issuea that els take one on -disengagements Jaime 4, a relatively small: issue, Ise disease tho- - poseibility.of oar: vithdrawing our troops or at least our atomic %leap= to the Rhine and find out how far the'SOviets'are. prepared to 'withdraw ? their i?apons. I uggesit that thie le an, area in Uhich- tha.Rtissians be milling to permit inepection.- 14.1RROWs - ?eU11 Winston, uthat d? o yon think ve Must do immediately, uthat is the urgent thing e mast.aCComplish In the East if Ue can? 249, zthink :that fret^ priority'. In the Middle East-must go to achieving or at any rate trying to achieve a settlement ?of the biggest single. problem'- the "Arab,aeraeli conflict. There 14j11 be Profound instability :in the Middle East as long US that conflict goes on and as long as there is this instabilitY. there Will' be no **eat :the. Cold Warbetueen the.. Rai:Sian:4 and ourselves in the area. leiRRQW: Bpi do: you think .it teal& be settled? BURDETT:, Well,. we- cannot get that settlement certainly without doing some unpopular things. I think it ulU take time and that Declassified and Approved For Release 2013/04/30 : CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS: 12/29/57 a. year will not be ?enough.. But certainly we will get no here if lee go, on treating this, as the 'untouchable problem, valve got to make ..a start .and ,a try. The end purpose of any settlement of course, must be to get full Arab recognition that Israel is here to stay. ,But, the Israeli's, I.think,, must, J 0 ? face up to the fact that, they bear a`tmajor responsibi4ty, for. the nine, hundred and twenty7seVen thousand Arab refugees. PAY have to make an unconditional offer to take the, refugees, badk, pew,.I do not believe that such an offer. would Cost Israel a great deal,. the refugees like other_ Arabs have come to especially since the Israeli invasion of ,? . . ? ? . Egypt that. Israel, is, strong and .cannot be 'wiped out4,1 I, think that only .a small portion of .them even those who .awvad property in Palestine woulit want to return to. Israel, in order to become ,second-elwss Israeli citizens. Most of them -would probably accept compensation which:will have to be - proylded and would be willing to seek a new life elsewhere. EENDRICItt kia.7 I ask you something. Why don't the Arab states take back the Arab refugees since they're the ones who caused them . . ? . ? ? to be refugees in the first place. BITADETT Whether they cause d them to be refugees in the first place Alex., is a matter of great historical clispute.,. I think my-. , self, that the Arabs and the Israeli's share a responsibility there. They do not take them back to? a political 'reason. Namely, to perpetuate their ?. .? . , . ? ? . grievance against Israel and thereby to perpetuate their .argUment against them. .6CHOENBRUN. t 'Alright Vinson,. why don't, these Arab states use some of their billions - and billions, of dollar" s Of 'oil. Money to do somethine " ^ ? ? . . about taking care of Arab refugees?. Why does Israel have to put up all tk , . money? irlvim OnnA i* A billiOnair g n Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS: 12/29/57 but he's a broke billionaire. Bele always running out of funds. SCHOMBRUN: You should be so broke! (LAUGHTER) BURDETT: But, I think secondly as part of a general settlement, Israel must give up.land -not a great deal of land, but enough to return to Arab rule the Arab villages and farms along the borders and also to end the absurdity of Arab comMunities,baing -split down the middle by a demarcation-line, MURRO4 Don't you think that any Israeli Government that accepted that proposal mould be outof office in 214-hours? BURDETT: .fio, I believe the opposite Ed, I believe' that such territorial concessions are a political necessity.' I believe that no Arab Government could risk a settlement that did not involve such concessions I believe that an leraeii Government could., There would . be a crisis in Israel the Government might fall, but I donit believe that "this .mould affect the ultimate stability of Government itself in Israel., whereas, I believe it Would follow it would lead to a ..? a series of breakdomne in the Arab.states. KELTRICK: Winston .., your say your saying the -same thing that Dan says, that it only take one to unclinch. BURDETT: There is a difference .04 there is a, great difference. Ab, the. Arabs are acting various things of the Israeli's, various relatively email practical concessions, I think they mould settle. For Israel is asking only one thing of the Arabs, and that is, peace on ? her borders and full:Arab recognition.. This, she mould have to get out of any settlement. She could not be asked to make these secrificee in Order to get an impermanent settlement thd in order for this settlement to be accepted, as permanent, there woUld'have to be absolute guarantees. of ArabIsraeli borders, in the first Instance by the United States and . ? Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 IRARS Or CRISIS: 12/29/57 ..32.. certainly also by the United Rations. Now, I don't vish to imply, I think it would be absurd and dishonest to imply that there are no political risks involved in seeking a settlement of this kind, I think there are risks, there are great risks, for example, badly handled, this 'whole. project could set off now dissentious among the Arab 'states," each of which is only to ready to duap on its neighbor with accusations of sell-out to Israel.- I think also, that there :would be stiff resistance and possibly serious political repercussions in Israel itself., I think though," that Israel could stand up to those repercussioni# and the essential political fact here, is that the United States is the only country in a position to bring pressure and to induce the Israeli" 'to give up come of their fixed old emotional positions. =MOW: ?Of course, the Russians are also in a position to encourage the Arabs in their ambition to wipe Israel off the map. BURDDTT: This is true, and all. the More reason it seems to me that we should try to meet this problem before the Russians try to exploit it. =MOW: ralischer, what do you think we should do in the rar East? NALISCIIER: Well, we've got to do something that I think is a thousand times harder then the crash missiles program. We've got to revamp our thinking .entirely in regard-to about half- the world's population, maybe more, the semi-colonial and colonial, and former colonial peoples. While we're staring hypnotized at Russia across Western Europe, we're being out flanked in Asia In Africa even in, the South Pacific. Now, the present Afroasian Conference is a sort of thing that points this up.. The ,Indonesians have a dispute with the Dutch, they asked us to mediate tie refused, now, they're getting the sort of support that they vaant, from Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF , '12/29/57 ? 43.3.. the Communist coun.tries. SCHORRt KALISCHMizWell, Not yet. They just ?asked for it. -tb.ey've asked for it, but you well, they've gotten moral...support and this is exactly ohat President Sukarno .said to a visiting Congressman lii.:?Jakarta:.?? (inter) No 'Wit President , . Sukarno asked Our Congressman Sauna, he stacit "I don't just want American military and economie..aidt. I vent American political aid," and that, is what he is getting from th.e Commulilst countries. Welvc also got to: do something else. We've also got to admit that our Cana policy is bank.- =pt. I don't think, ttiere is a General in the Pentagon lib.? honestly believes that Chiang4fal-shek has a China mandarin's chance of fighting his 'way back to the mainland or that he'd be able to remain on Formosa unless 'we kept him there. I don't, think there is a diplomat in the Far East that thinks that our policy of non?recognition in seven years of economic sanctions is going to, bring down the Communist Governm.ent. I think.velve got to admit vhat veva got to do 'what our major allies in Europe and Asia have admitted and do - and that is, recognise the Policing regime for 'what: it is 7. the unfriendly, but existing Government of mainland China. We should recognize the Chiang regime for 'what it ler. the friendly and existing Government of Formosa, and then I think, possibly we might try something ratherunorthodox like, offering farm products aitt to Red China the next tiMe there is a flood ,or famine.-- They ... if they .accepted? it mould mean that Russia could not or mould not help, if they refused, it would mean that they 'would have to explain this to their oun people. In either ease, ve"4 get out from behind this 'wall laestre building around'. China -which is really a Vail ve're building around ourselves. MUREOW: Schoenbrun, that do you think is urgent to be accomplished? Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 ? Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 VARS'OF 12/29/57 .34. SCHOEMBRIINit , Well, I thin4c. we might begin Irj trying to correct those false habits of thought that the President talked about. It our free, system is not inherently stronger then the Communist system, then it follow logically that lie must vork harder, pay more taxes and have more respect for learning: I think tat lee should give up some of our OM self deluding Eqths, for example, the illusion that Russia is going to come unstuffed because of internal pressures: Dan Schorr has told as that Russia is likely to evolve, but no revolution in sight. If that's so, veva got . to start living 'with the idea that Russia is going to be around for a very long time, that the competition is not going to end, it's going to groti more intense. I think that's uhy our allies have asked us to negotiate. Not necessarily a global settlement Ed, personaly, I don't believe that disarmament can be brought about over night I am more inclined to agree with those uf rgsr colleagues 4sho said, that vie ought to try to have a series of disentanglomente at the pressure points, in the Middle East, in middle Europe in any specific area or on any specific issue, 'where. ve can seek the chances of agreements through n6rtal diplomatic channels, And, finally Ed, if I may say so very briefly, I think me fve got to be true to our own faith. We cannot support colonial pouers vith.out weakening the moral posture of uhat tie call the 117ree World. And, 'then Mr. Dulles tells the American people as he did recently, that our ties of friendship vith Spain are symbolic of the links in the _Free World, I. think he's mis- , using the Tr3 o rcl Free World. Let us by all means ,have alliances with Spain and 'with 'Yugoslavia, let's adnat, hovever, that they are alliances of mutual self. interest ?e not of mutual ideology, let's. not misabuse and abuse that precious 'word FreedOm. , President Eisenhouer said, that this is a time for greatness. I 'would suggest it is also a time for facing up to the full truth. Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OF CRISIS:. 1g/29/57 ??35-? NURROW: Eric Sevareld, what do you think Ye must do? , ? 3EVA1EEDt Well, Rd, to put it very briefly, I am assuming that a control of space over, this ... I am assuming that the 'world leader.. ship and the very fundamental scientific revolution is at stake a revo- lution is going to change manta life enormously. Therefore, I believe, so far as this country is concerned, tie have to try to go all out.; I think there will have to be .. lothether vie like it or not, some Government hand directly on the economy. I think ye must get some better control of our *dwindling natural resources, some better control of our rather scattered and somewhat misused scientists and engineers., Surely, %delve got to get at this shockingly delayed problem of an obsolescent educational system, ye may even need a bigger Army for more flexible military policy around the vorld. if all this means higher taxes, then so be it. 1 think most of us would rather be broke then dead - though sometimes the Government seems to have some doubts about it. 1.1URROWt Well gentlemen yould any of you like to sum up this discussien, (LAUGHTER) SEYAREID: Would you? =ROW: Well, VII try and if you have disagreement at ? any point by all means speak up. it seems to ,me there are certain things upon leach you gentlemen are in complete agreement. First of all, you all agree that our lack of leadership le shoving. That some of our illusions have been shattered and that many of our allies have become disillusioned. You agree that our allies are determined, one, to talk 'with the Russians and tuo, perhaps to do business with them.. That they are not impressed !with our belief - yidly held,that the Russians are going to collapse from internal pressures. You also appear to believe that if 1.tle persist in our self right-. Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 ?Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 YEARS OP CRISIS:. 12/29/57 -36-; eons, inflexible policy -matching.bothvith bomb, MIssailanhasslles threat ylth threat, that theniaithinmeastrable course, we in this country may find ourselvesi merely a great continental inland cif the coast of Kamchatka 'kith the resit ..of the .00rld 'either united against us orIaholly Indifferent to our fate, :it seems that you also agree that we must somehow disenthrall ourselves and learn not only to till* anew, but to act : ? . and I have also the Impressionthat none of yeu,belipve,,that death In ? defense of a balanced budget lt.a proper.7eay for free nen to die You all seem to feel that the President posed .the question properly' in Paris lthen he sal4nuhatIall,Vve pay in freedom for freedom," butl.that.he has not yet made much progress in answering that question. You've cast up, vhat vould call &rather ominous balance sheet, yet somehou? 1 find Your &is-. course rather optimistic. None of yen suggests, that humans having devised 3_1:method of destroying humanity will no proceed to use it. None of you mention the phrase, preventive var. Several of you stressed the fact, that the free morld is richly endoued with men, metal, machines and moriof and that what is required is a call to sacrificet which according to Sevareld, uould.be promptly answered by the people of this country. Dan. Schorr certainly made it abundantly clear, that the Russians have their own problems frequently well concealed, but they are certainly not nine. feet tall. Most of you, I have the feeling although syou didnit say it,. have rather the sense :that this is, the best of all possible times to be alives.because never before have the stakes been so high.: never before have the actions and the decisions of this country been so Important. ? ? And, I think you also A!'most of you had the.. feeling, that if we spend to much time debating the past we Any lose the future. Thank you very much gentlemen, and good health and good neva. Good night and Good luck. Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001_1 Declassified and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1 ANNOUNCM: This has been the, nInth ?edition of YEARS OP CRISIS, an annual report .by Edvard R. Nurrov and other CBS NEWS correspondentsfrom the Inrportzuit news centers of the vorlit directed by Don Hewitt. Ed Trans. NON. 4 Declassified and and Approved For Release 2013/04/30: CIA-RDP67-00318R000100240001-1