A. PUBLIC REACTION KHRUSHCHEV SPEECH NOV 10.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01634R000100130014-2
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: November 17, 2016
• Document Release Date: April 11, 2000
• Sequence Number: 14
• Publication Date: November 15, 1958
• Content Type: TELEGRAM

Approved For Release 2000/08/27 : CIA-RDP78-01634R000100130014-2
INCOMING TELEGRAM Department of State
32
Action
EUR
FROM: BE RL I N
VAR
CONFIDENTIAL
Classification Control: 8604
Rec'd: NOVEMBER 15, 1958
6058 PM
TO: Secretary of State
SS
w NO: 341, NOVEMBER 15, 11 PM
G
SP SENT BONN 294, DEPARTMENT 341 REPEATED INFORMATION MOSCOW 91,
C POLAD USAREUR 96, LONDON, PARES UNNUMBERED
INR
H A. PUBLIC REACTION KHRUSHCHEV SPEECH NOV 100
P
uOP WEST BERLIN POPULATION WELL AWARE OF SPEECH BUT DO NOT APPEAR
E UNDULY PERTURBED. ALTHOUGH UNEASINESS UNDOUBTEDLY EXISTS
DCL AMONG CERTAIN GROUPS SUCH AS BUSINESSMEN, THERE NO EVIDENCE
DC
THAT KHRUSHCHEV SPEECH CONSIDERED DIFFERENT FROM PREVIOUS
OCB THREATS. OPINION APPEARS TO BE WIDESPREAD THAT SOVS WOULD NOT
USIA RPT NOT GO TO WAR OVER BERLIN AND MUCH OF SPEECH THEREFORE
CIA A BLUFF. ALLIED STATEMENTS, ESPECIALLY ANNOUNCEMENT boo
OSD PLANES READY FOR AIRLIFT, REGARDED AS EVIDENCE CONCRETE
ARMY ALERT MEASURES UNDER ACTIVE CONSIDERATION TO CALL HIS BLUFF.
NAVY WITH MEMORY OF BLOCKADE PEOPLE GENERALLY SEEM TO FEEL THAT
AIR WESTERN FIRMNESS IN FACE OF THREATS IMPLIED BY KHRUSHCHEV
NIC IS WHAT IS NEEDED IN PRESENT SITUATION, AND IN ALL LIKE-
LIHOOD ALL THAT EVER WILL BE NEEDED. ALL OF OUR CONTACTS
REPORT POPULATION'S CONFIDENCE IN WESTERN ESPECIALLY U.S.
STEADFASTNESS, BUT THEY CAUTION THAT ANY SIGN OF ALLIED
IRRESOLUTENESS COULD SIGNIFICANTLY CHANGE PUBLIC TEMPER.
ACCORDING B~RLRFCK DECN# LABOR LEADERS, A LARGE PERCENTAGE OF
POPULATION BELIEVES CURRENT COMMUNIST PROPAGANDA OFFENSIVE
CONNECTED WITH WEST BERLIN ELECTIONS, COMMUNIST OBJECTIVE
BEING TO CREATE CONFUSION AND PREVENT FORMATION UNITED FRONT
AGAINST SED AT TIME WHEN PARTIES HAVE TO BATTLE EACH OTHER
FOR VOTES. SEALING OFF EAST FROM WEST BERLIN (AS DISTINGUISHED
FROM OUTRIGHT BLOCKADE) GENERALLY THOUGHT IMPROBABLE.
B. OFFICIAL REACTION
WEST BERLIN
REPRODUCTION FROM THIS
IS PROIBITED.
Approved For Release 20 0 F I DENT I AL 0010013IOP -2JNCLASSIFIIED"
State Dept. declassification & releasA1 tWai'b1i's on file
 Approved For Release 2000/08/27 : CIA-RDP78-01634R000100130014-2
CONFIDENTIAL,
-2- 341, NOVEMBER 15, 11 PM FROM BERLIN
WEST BERLIN:OFFICIALS PRIVATELY EXPRESS CONCERN WHILE PUBLICLY
POOH-POOHING COMMUNIST THREAT. ELECTION ATTACKS OF CDU, SPD
AND FDP ON EACH OTHER NOW TONED DOWN AND SENATOR FOR INTERIOR
LIPSCHITZ TOLD MISSION OFFICER HE WOULD RECOMMEND CALLING
OFF PRE ELECTION CAMPAIGN ENTIRELY IF SITUATION SHOULD WORSEN.
LONG RANGE CONCERN OF WEST BER's_..IN OFFICIALS FOCUSSED
ON FOLLOWING POINTS: (1) WHILE NO SIGNS OF WEAKNESS DETECTABLE
IN POPULATION IN GENERAL, BUSINESS CIRCLES APPREHENSIVE
RE POSSIBILITY SUBSEQUENT DECLINE FEDREP ORDERS WITH WEST
BERLIN INDUSTRY. AMREHN MENTIONED THERE ISOLATED INSTANCES
WEST BERLIN MANUFACTURERS READ;! SELL TO EAST BERLIN TO
INCREASE SALES, IMPLYING CONCERN THIS TENDENCY MIGHT INCREASE
IN EVENT SIGNIFICANT DECLINE FEDREP ORDERS. (2) WEST BERLIN
PROSPERITY MAY HAVE IMPAIRED WILL TO RESIST AS COMPARED
WITH 19+8 WHEN PEOPLE HAD NOTHING TO LOSE. STRANGULATION OF
FLOURISHING ECONOMY WOULD OBVIOUSLY HAVE STRONG ADVERSE
PSYCHOLOGICAL EFFECT. IN THIS CONNECTION FEDERAL REPRESENTATIVE
VOCKEL TOLD MISSION OFFICER THAT HIS EFFORTS MAINTAIN INTER-
ZONAL TRADE AND RECENTLY ANNOUNCED INCREASE COAL SHIPMENTS
TO EAST GERMANY MOTIVATED BY CONVICTION THIS NECESSARY PRICE
TO KEEP OPEN TRANSIT ROUTE FOR WEST BERLIN TRADE. HE SAID
THAT WHILE AIRLIFT ABLE MAINTAIN ESSENTIAL SUPPLIES, IT
OBVIOUSLY INCAPABLE TRANSPORT ;100,000 TONS MONTHLY WHICH NOW
RECEIVED IN TOTAL, IMPORTS NOR COULD 100,000 TONS FINISHED
PRODUCTS BE FERRIED OUT. (3) ALTHOUGH BERLIN OFFICIALS HAVE
NO DOUBT WE WILL STAND BY OUR COMMITMENTS THEY CONCERNED THAT
GRADUAL INTRODUCTION VOPO CONTROL OF ACCESS MIGHT RESULT IN
SLOW BLOCKADE, PARTICULARLY IF EACH STEP APPEARS RELATIVELY
INCONSEQUENTIAL AND WOULD NOT WARRANT STRONG WESTERN REACTION
IN PUBLIC EYE. CERTAIN OFFICIALS SUCH AS AMREHN AND VOCKEL
FEEL THAT ALLIED SUBMISSION VOPO CONTROLS WOULD START DANGEROUS
WHITTLING DOWN PROCESS AND BC INTERPRETED AS SIGN OF WEAKNESS,
THEREFORE CAUSING PUBLIC UNEASINESS. VOCKEL SAID WESTERN
POWERS MUST BE PREPARED RUN THROUGH VOPO BARRIER AND THAT
SUCH ACTION NOT LIKELY LEAD '"0 ARMED ENGAGEMENT WITH EAST
GERMAN FORCES. MAYOR BRANDT' EXPRESSED DIFFERENT VIEW (SEE
OURTEL 290 TO BONN, 337 DEPT, 93 USAREUR, 88 MOSCOW). LIPSCHITZ
THOUGHT USE OF FORCE WOULD HAVE TO BE CAREFULLY CONSIDEREC)
IN VIEW
CONE- I DENT I AL
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 -Approved For Release000/08/27 : CIA-RDP78-01634R000100130014-2
CONFIDENTIAL
-3- 34+1, NOVEMBER 15, 11 PM FROM BERLIN
IN VIEW KHRUSHCHEV STATEMENT SOVIETS WOULD STAND BY WARSAW
PACT COMMITMENTS TO GDR. HE VAGUELY SUGGESTED POSSIBLE FREE
WORLD COUNTERMEASURES IN OTHER PARTS OF GLOBE. BERLIN
DG CHAIRMAN SCHARNOWSKI TOLD US HE HAD REPLIED TO WEST GERMAN
QUERY "DID HE BELIEVE U.S. WOULD GO TO WAR FOR BERLIN" BY
SAYING "DO YOU THINK SOVIETS WOULD?".
C. ECONOMIC EFFECT.
ALTHOUGH THERE HAVE BEEN INDICATIONS OF UNEASINESS IN BUSINESS-
FINANCIAL CIRCLES, REPERCUSSIONS KHRUSHCHEV SPEECH ON BERLIN
ECONOMY HAVE IN GENERAL BEEN MILD.
1. STOCK EXCHANGE PRICES OF SHARES OF COMPANIES OPERATING
IN BERLIN DECLINED NOV 11 AND 12 PRIMARILY BECAUSE OF PRESSURE
OF SALES BY FOREIGN HOLDER, PRINCIPALLY SWISS. DOWNWARD
TREND HALTED NOV 13 AS RESULT CONFIRMATION STRONG ALLIED
POSITION ON BERLIN, GROTEWOHL PRESS CONFERENCE, AND ENTRANCE
INTO MARKET OF INVESTMENT TRUSTS BUYING AT MORE ATTRACTIVE
PRICES. BERLIN EXCHANGE REPORTED LESS "NERVOUS" THAN WEST GERMAN
EXCHANGES.
2. NO UNUSUAL VOLUME OF BANK TRANSFERS OR SIGNIFICANT FLOW
OF CAPITAL FROM BERLIN REPORTED, OTHER THAN SOME TRANSFERS
OF FOREIGN-HELD CONVERTIBLE DM. (SEE ALSO OURTEL 290 TO BONN
337 TO DEPT.)
3. MAYOR BRANDT MADE STRONG PUBLIC STATEMENT THAT ANYONE
CANCELLING ORDERS OR WITHDRAWING FUNDS SERVING COMMUNIST
ENDS. CANCELLATION OF ORDERS NOT SIGNIFICANT TO DATE, BUT
BRANDT STATEMENT PROMPTED BY RUMORED PENDING CANCELLATION
TWO IMPORTANT ORDERS.
4. SO FAR NO INDICATION ANY CHANGE IN INVESTMENT PLANS, THOUGH
IT WOULD BE DIFFICULT DETECT CHANGE SUCH EARLY STAGE.
5. NO EVIDENCE SCARE BUYING.
PK
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CONFIDE NCI