CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A000600070001-0
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S
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January 11, 2005
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1
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September 1, 1955
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SUMMARY
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Approved For Rele 2005/02/10: CIA-RDP79-00927A0 046 0070001-0 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY COPY NO. 20 OCR NO. 7426/55 1 September 1955 DMV%Wgr' NO. NO CHANGE IN CLASS. Q 13 DEC1.ASSf IEE) CLASS, CHANGE T4: 1S S , - NEXTREVIEW DATE: AUTH: 7t3.2 CENTRAL INTELLIGENCE AGENCY 111 OFFICE OF CURRENT INTELLIGENCE DIA and DOS review(s) completed. CONFIDENTIAL 25X1 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 Approved For Release 2005/02/10 : CIA-RDP79-0 7A000600070001-0 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 Approved For Release`Y00 P79-00927A00P00070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 T H E W E E K I N B R I E F PART I OF IMMEDIATE INTEREST EGYPTIAN-ISRAELI SITUATION . . . . . . . . . . . . . . . . . . Page 1 The Israeli attack late on 31 August against an Egyptian military host at Khan Yunis in the Gaza strip underlines the danger that the situation may get out of control. 25X1 NOTES AND COMMENTS Soviet Approach to UN Disarmament Talks: In the first meetings o the five-nation sarmamen,E-'subcommittee talks, Soviet delegate Sobolev has?adopted.the patient and tolerant manner that Moscow refers to as "the Geneva spirit." Sobolev has reiterated Moscow's willingness to consider the disarmament plans of Western nations--especially the President's plan for blueprint exchange and aerial inspection--as well as its own. I I . .. . . . . . . . . . Guided Missile Sites in the Moscow Area: Moscow's air defense has been strengthened over the past two years by instal- lations which r b bl 1 a :e pro a aunchin sites for round-toy air guided missiles. 25X1 Page 1 25X1 Page 1 Withdrawal of Soviet Forces from Austria Nearly Completed: The withdrawal of-Soviet group orces an tactical air units from Austria was nearly completed by 29 August. Rail ship- ments indicated that the bulk of the tactical forces were being withdrawn to the USSR. Page 3 Air-raid Shelter Program in Satellites: Numerous reports indi- cate that several of the uropeari Satellites, following the leadership of the USSR, have made it compulsory to include air-raid shelters in new public buildings, factories, stores, and masonry apartments. 25X1 25X1 Page 4 Murmansk-Pechenga Railroad: A new railway line running from urmans to ec enga is now in operation. It provides the first rail transportation to the port of Pechenga, to the nickel mining and smelting facilities in the area, and to one of the six potential medium or heavy bomber staging bases in the Kola Peninsula. It will permit greater dis- persal of air units in the area. Page 4 CONLWWRAL ENT1AL 25X1 Approved For Release 2005/02/10 : 6IA-RDP79-00927A000600070001-0 THE WEEK IN BRIEF .Approved For Release 2005/02/10: CIA-RDP79-00927AO 00070001-0 SECRET 1 September 1955 USSR Shows Interest in Aircraft Carriers: Although there is no evidence that a ov e n on possesses or is con-r structing an aircraft carrier or that any Soviet air, craft are specifically designed for operating from a carrier, Soviet military attaches are reportedly show- ing increasing interest in British carriers. Poop 6 25X1 Sino-Egyptian Trade Agreement May Lead to Recognition: The signing on 22 August of a three-year Sino-Boyptian' trade agreement, the first Chinese Communist trade agreement with a country in the Year East, seems to move Peiping closer toward gaining recognition from a country in that area. Fulfillment of the agreement, by which China undertakes to exchange annually 60,000 tons of steel products for cotton, will further Peip- ing's claim that.its rapid industrialization is permit- ting exports of industrial goods to meet the import needs of underdeveloped countries. Page 7 25X1 American-Chinese Talk$,:. The Chinese Communists at Geneva continue to reuse .to commit themselves to an early deadline for the release of all Americans still de- tained in China. It still seems a toss-up whether Peiping will agree to"such a deadline if the alterna- tive is termination of the talks and public awareness of the positions taken.. PagP Q 25X1 French North Africa: The French cabinet's acpeptance of the "package ea " whereby both Resident General Gra.ndval and Sultan Mohamed ben Arafa are to be removed is not likely to relieve the serious tension in Morocco. Ia Algeria, rebel activities continue despite strong French countermeasures. Instruments of ratification of the French-Tunisian conventions have been exchanged in Paris and the conventions are expected to become effective in mid-September: . . . Page d 25X1 Afghan-Pakistani Dispute: A new Turkish offer to mediate thq Afghan-Pakistani dispute is endorsed by Pakistan and may be accepted by Afghanistan, . . Page 0 25X1 Yugoslav Attitude Toward Foreign Aid: The Yugoslavs last week made an effort to explain away Vice President Vukmanovic-Tempo's 20 August denunciation of Battle Act restrictions and adopted a more co-operative at- titude regarding-the "technical questions" connected with US inspection of the military aid program in Yugoslavia. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 THE WEEK IN 13R IEF 25X1 . P4ge 10 Approved For Release 2005102/?,~DP79-00927AO 00070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Widespread Strikes Anticipated in France: The most exten- sive ren.c stri essince t He nationwide outbreak of August 1953-,are.-.expected this fall unless large wage concessions are forthcoming soon. The Communist- controlled General Labor Confederation is making a strenuous effort to force the Socialist-oriented Force Ouvriere and the Christian Workers Confedera- tion to co-operate with it in a drive for wage nego- tiations`at the .national level. Page 11 Communist-led Strike. May be Imminent in Costa Rica: A Com- 25X1 mun s,.--le strike Ine United Fruit Company's Laurel District in Costa Rica is threatened for 14 September. A strike in this area could spread to the company's other banana-workers in Costa Rica and Panama, and might result:. in :increased.Communil.st-led labor strength in. both countries.Page 12 Labor Unrest.Mounts;;:in Chile: The current strike of some 50,000 can civil servants for a 60-percent wage increase-reflects labor's.growing unrest as a result of the steady. depreciation of real wages over the past several years:., Inflation in Chile continues un- controlled. :.Labor leaders of the non-Communist left apparently are trying to force the creation of a left- wing cabinet'or-to force President Ibanez out of of- 25X1 Tice. . . . Page 12 25X1 Argentine Political Situation: The dramatic staging of President erons resignation offer and its firm rejection,`by Peronista organizations on 31 August has ; probably achieved the. obvious objective of strengthening,.the_president's position by demonstrat- ing his strong popular support. Peron's declared in- tent to impose "pacification" will mean that arrests and tension will continue at least until there is a decline in. antigovernment attacks and plotting.. . ... . . . . . . . . . Page 13 SECRET Approved For Release 2005/02/10 : CL4RDP79-00927A000600070001-0 THE WEEK IN BRIEF Approved For Rjase 2005/0 .?A;k4,A RDP79-00927AOW00070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 PATTERNS AND PERSPECTIVES THE SOVIET DISARMAMENT POSITION . . . . . . . . . . . . . Page 1 In the crowded schedule of international negotiations set for the next few months, the USSR seems likely to give high priority to the disarmament problem. Soviet agreement to concrete steps in this field could persuade the NATO na- tions of the political and financial advantages of "peaceful coexistence"--without materially reducing Soviet military strength in the process. The USSR probably hopes that if it appears reasonable and offers dramatic "deeds" like the recent demobilization of part of its armed personnel, Western resolve to maintain the strength of the Atlantic coalition will gradu- ally diminish. 25X1 TRENDS IN BRITISH COLONIAL POLICY . . . . . . . . . . . . . Page 5 In response to the accelerated pace of political development in many of its overseas dependencies, Britain is considering momentous adjustments in its colonial policies. In full awareness of its diminishing means of direct control, London is now seeking a way to advance the colonies toward autonomy while trying to assure that the remain stable in the process. IX1 6 SECCRE ;f Approved For Release 2005/02/10 : 6X-RDP79-00927A000600070001-0 THE WEEK IN BRIEF Approved For Release 2005/02/-10 : QA-RDP79-00927A0QW00070001-0 CR 1 September 1955 The Israeli attack late on 31 August against an Egyp- tian military post at Khan Yunis.in the Gaza strip under- lines the danger that the sit- uation may get out of control. This "large- scale" attack, accord- ing to an Israeli army spokesman, was in retaliation for the destruction of a village 25 miles from Tel Aviv by Egyptian raiders during the night of 30-31 Aug- ust, or only a few hours after Egypt had accepted UN Truce Supervisor Burns' proposals for a cease- fire agreement. Israel had made no further reply to 'Burns' proposals for a cease-fire since its letter of 30 Aug- ust stating that it cannot accept them until Egypt admits responsibility for starting the recent series of raids. fr., _JERUSALEM NIR GALIM MIGDAL KHAN YUNIS GAZA STRIP r~ar are ` S R A E L I }E=OTR L EN AUJA ZONE ARMISTICE LINE (1949). 0 25 25X1 25X1 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART I OF IMMEDIATE INTEREST Page 1 of 1 Approved For Release 2005/02/10 : CIA-RDP79-00927AQQ 600070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 NOTES AND COMMENTS Soviet Approach to Disarmament a s In the first meetings of the five-nation UN disarmament subcommittee talks, Soviet dele- gate Sobolev has adopted the patient and tolerant manner that Moscow refers to as "the Geneva spirit." While Sobolev has not yet entered into substantive dis- cussions on any point, he has reiterated Moscow's willingness to consider the disarmament plans of Western nations--es- pecially the President's plan for a blueprint exchange and aerial inspection--as well as its own. Sobolev has made it clear, however, that the USSR considers that its 10 May pro- posals "remain the most effec- tive and realistic" of all the plans. The Soviet proposals and the President's plan prob- ably will occupy the major por- tion of the subcommittee's work during the coming weeks. Guided Missile Sites n the Moscow Area Moscow's air defense has been strengthened over the past two years by the construction of installations which are probably launching sites for ground-to- air guided missiles. Approximately 60 of these installations in a belt 25 miles deep which extends three fourths of the way around Moscow. When duplications are eliminated and the sites in the remaining fourth of the belt are located, it is estimated that there will be approximately 40 such installations ringing Moscow at an average distance of While most Communist com- mentaries have reported the subcommittee talks with an air of optimism, the Czech radio on 30 August expressed some doubt that the work of the sub- committee would be easy. The broadcast insisted that "ruling circles in the West" would try to "disturb" the atmosphere of international relaxation achieved at Geneva, and for this purpose would undoubtedly make full use of the President's 24 August Philadelphia speech. This speech, it said, "considerably departed from the spirit of Geneva." Moscow has refrained from linking the President's speech with the subcommittee talks and has thus far avoided any comment on it. TASS re- porting of the speech covered only the points most in harmony with "the Geneva spirit." 30 miles from the center of the city. At present, four of the sites, under construction since June 1953, appear to have been completed, and another eight are probably capable'of limited use. Ninety percent of all ob- served installations are of the same general configuration, which consists of three characteristic and interconnected facilities: a herringbone layout of road- ways, a large bunker which may serve as a control and communi- cations center, and a domestic area of permanent buildings which could house more than 400 men., SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 NOTES AND COMMENTS Page 1 of 14 25X1 Approved For Re e,se c'A-RDP79-00927AOW00070001-0 1 September 19515 POSSIBLE GUIDED MISSILE SITES IN THE MOSCOW AREA CURRENT INTELLIGENCE WEEKLY SUMMARY 25X1 ?Medyn ? Kondrova 14837 ?Salnechnogorskiy p MILES 50 L- ~ushkino\ Mytishchi? L Shchelkovo Gorodishchi ? ' Noginsk Babushkin ? Pavlovskiy i Ozery Kashira The herringbone road com- plex, which is approximately one mile long and a half mile wide, consists of three longi- tudinal and 10 to 12 transverse roadways, with the spine of the system aligned with the center of the city. The missiles apparently are launched from saw-tooth recesses or bays PART II along each end of the transverse roads. Each installation has approximately 60 of these bays. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 NOTES AND COMMENTS Page 2 of 14 Mon no Posad 0 ? MOSCOW Elektrostal DZuyevoo 25X1 - V-1 Approved For Rele ,e 2005/O9 ,I-DP79-00927A00 070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 19'55 25X1 area o Assuming that each saw- tooth bay contains one launcher with two reloads, 180 weapons would be required for each installation--7,200 for the 40 estimated sites in the Moscow (Concurred in by 031) Withdrawal of Soviet Forces From Austria Nearly Completed The withdrawal of Soviet ground forces and tactical air units from Austria was nearly completed by 29 August. Rail shipments indicated that the tactical forces were being with- drawn to the USSR. Preparations for the air movement observed during the first half of the month in- cluded the removal of radar, antiaircraft artillery, and oil storage tanks from airfields. The first movement of air force personnel was noted on 11 August, when headquarters and support personnel departed by rail. The evacuation of Soviet aircraft from Austria apparently began on 19 August, with the departure of a reconnaissance regiment from Vienna-Aspern air- field, and continued through 24 August. The movement involved six Soviet regiments equipped with a total of approximately 190 ;FAGOTS (MIG-15's). The withdrawal of Soviet ground forces, beginning 4 August, was also nearly completed by 29 August. A maximum of 30,000 Soviet personnel of an estimated 35,000 total have now been withdrawn from Austria via Higyesholom, Hungary. The rail route of these departing forces indicates that the bulk are moving back to the USSR, al- though small ground force ele- ments were reported moving to Germany early in August. SECRET 25X1 25X1 25X1 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENTS Page 3 of 14 Approved For Relee 2005/02/10 : CIA-RDP79-00927A00QP0070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Air-raid Shelter Program in satellites Numerous reports indicate that several of the European Satellites, following the leadership of the USSR, have made it compulsory to include air-raid shelters in new build- ings. A program incorporating air-raid shelters in public buildings, factories, stores, and masonry apartments was in operation in many areas of the .USSR by 1952, and a similar pro- gram began in the Satellites in 1953. A recent report from Bul- garia states that the building regulations introduced on 1 Jan- uary 1955 specify construction of underground shelters in new apartment houses, with multistory dwellings to have shelters two stories below ground. Czech- oslovakia has a general policy requiring the inclusion of shel- ters in plans drawn for all government buildings, apartments, and factories. While there is not enough information available on Czechoslovakia to document complete implementation, there Murmansk-Pechenga Railroad A new railway line running from Murmansk to Pechenga is now in operation. It provides the first rail transportation to the port of Pechenga, to the important nickel deposits near Nikel, and to one of the six potential medium or heavy bomber staging bases on the Kola Penin- sula. It will permit greater dispersal of air units in the area. is evidence of shelters in at least some new construction. Reports from Hungary indi- cate that in 1954 .air-raid shelters in factories were con- structed in accordance with "gen- eral regulations," and that each industrial enterprise was ordered to recondition old shelters or build new ones. Building plans furnished Poland by the USSR are reported to include heavy foundations and air-raid shel- ters for all new housing blocks in Warsaw. The American air attache in Warsaw has also re- ceived a report from a fairly reliable source that bomb shel- ters have been included In all new buildings in Warsaw. The short time this pro- gram has been in operation has enabled it to provide for only a small proportion of Satellite requirements. It does, however, indicate the existence of a co- ordinated Soviet bloc civil defense system odeled on the Soviet pattern. (Prepared by OR line passes near or through Luostori (Pechenga airfield) and possibly terminates eight miles north of Pechenga at the port of Pechenga (Linakhamari), which is open all year to ships of all sizes. Besides the further de- velopment of the port of Pechenga, one of the principal economic reasons for the construction of this railroad was to improve access to the Pechenga nickel deposit--one of the most 25X1 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENT'S Page 4 of 14 Approved For Rele ,e 20051~QRCLA?RDP79-00927A00 64070001-0 1 September 1955 important in the USSR. At- present Nikel has a smelting plant producing 10,000 tons of nickel annually which is trans- ported to a refinery at Mon- chegorsk, south of Murmansk, where approximately 25 percent of the USSR's refined nickel is produced. That a sizable expansion of nickel production is con- templated is seen in the con- struction of three power plants in the Pechenga area by a Finnish company. The second plant was put into operation on 10 August 1955, and the Finnish press has reported that construction of the third may begin soon. These three plants will provide a three- fold increase in the electric supply of the area. Extension of the railroad system to Pechenga, location of a potential medium or heavy bomber staging base, has in- creased the importance of the Kola Peninsula as a staging area. The logistical support provided by the new railroad would permit air units to be MURMANSK-PECHENGA RAILROAD N O ` F~; W A Klrkenes S E A (Severomorsk MURMANSK 0 VAYENGA SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 NOTES AND COMMENTS Page 5 of 14 S POLUDSTROV RYEACHIY ? Potential Medium Bomber Staging Base A Nickel Mining and Smelter Murmansk-Pechenga Railroad 25X1 Approved For Rel a 2005/02/10 : CIA-RDP79-00927AO 0070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 dispersed along the northern rim of the Kola Peninsula in- stead of concentrated in the Murmansk area. This in turn would facilitate effective em- ployment of naval jet light bombers and provide greater USSR Shows Interest In rcra t Carriers The USSR has reached a stage in its postwar naval ex- pansion program at which it would be logical for it to build an aircraft carrier. Soviet naval regulations pro- mulgated in 1948 assigned a predominantly offensive role to the Soviet navy in marked contrast.to the defensive role played by Soviet naval forces in World War II. Since 1948, the USSR has created a powerful naval striking force, consist- ing of large numbers of long- range cruisers, destroyers and submarines, which may indicate an intention to operate beyond the range of land-based.air- craft. Although there is no evi- dence that the Soviet Union possesses or is constructing an aircraft carrier, or that any Soviet aircraft are specifically designed for-operating from a carrier,.Soviet military at- tachds are showing increasing interest in British carriers. In May 1955 the Soviet naval attachd in London visited the British carrier Albion. Subsequently, the Soviet naval attache in London wrote protection for the six airfields in this area which would be logical choices for staging medium or heavy bomber opera- tions against North America. Prepared jointly with ORR to the British Admiralty sug- gesting an exchange of visits aboard a modern British carrier and a modern Soviet naval ves- sel. It is probably this pro- posal which led to the recently announced British plans to send two carriers and four destroyers to visit the USSR this October. The American naval attachd in London reported on 8 July that the Soviet naval attachd and two assistants had again visited'a British carrier, this time the Centaur, at Portsmouth. The visitors went directly to the normal location of the mir- ror landing sight, a new type of landing aid developed by the British and being installed on some; American carriers, and ex- pressed disappointment when in- formed that this was not fitted on the Centaur. The Russians asked numerous questions on carrier design, covering the speed of the bomb hoist, the speed of the plane elevator, and the thickness of the hangar deck armor. these developments might reflect nothing more than Soviet interest in collecting intelligence on the British navy. On the other hand, there are fragments of information which suggest the possibility that a carrier is being constructed in the USSR. Barriers were recently erected around a large hull which has 25X1 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENT:; Page 6 of 14 Approved For Re a ,se 2005/02/10: CIA-RDP79-00927AO 0070001-0 SECRET 1 September 19:55 been under construction on the battleship slip of the Baltic Shipyard in Leningrad since 1953, obviously in an attempt to prevent further scrutiny of this hull by Western attaches. The Russians have the cap- ability to build aircraft Sino-Egyptian Trade Agreement May Lead to Recognition The signing on 22 August of a three-year Sino-Egyptian trade agreement, the first which Peiping has concluded with a country in the Near East, seems to move Peiping closer toward gaining recognition from a country in that area. Ful- fillment of the agreement, by which China undertakes to ex- change annually 60,000 tons of steel products for cotton, will also further Peiping's claim that its rapid industrialization is permitting exports of indus- trial goods to meet the import needs of underdeveloped countries. Preliminary negotiations which led to these formal trade relations were probably insti- tuted shortly after the Bandung conference of April 1955 where Chou En-lai and Egyptian premier Nasr indicated an interest in the development of official contacts. Cairo undoubtedly is attempting to maintain its an- nounced neutralist position as well as to find a market for cotton surpluses. That political goals are primary in Peiping's mind is borne out by the conclusion of the first annual protocol to the three-year agreement, where- by Communist China will export carriers. Following World War II, the USSR obtained original German plans for an aircraft carrier and probably acquired a complete propulsion plant suitable for installation in such a vessel. 60,000 tons of domestically scarce steel products for 15,000 tons of Egyptian cotton. This protocol accounts for only about one half of the $56,000,000 trade goal for the first year under the trade agreement. Sup- plementary cotton-steel con- tracts during the effective period of the first protocol will probably fulfill the an- nounced trade goal. Communist China's export of steel products--of prime necessity to its planned indus- trial expansion--indicates the importance which Peiping places on the establishment of relations with Egypt. Until the conclusion of the present trade agreement, imports of cotton from Egypt, which are required by China's textile industry, have been paid for in cash. In 1954 China imported about 10,000 tons of Egyptian cotton and imports dur- ing 1955 reached about 20,000 tons,, because of China's poor domestic crop in 1954. The trade agreement pro- vides, in addition to barter terms of trade, that commer- cial representatives are to be SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 NOTES AND COMMENTS Page 7 of 14 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927AO W0070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 exchanged. This is probably the key provision in an effort to secure Egyptian recognition, which Peiping undoubtedly hopes will set a precedent for other states of the Arab bloc. American-Chinese Talks The Chinese Communists at Geneva continue to refuse to commit themselves to an early deadline for the release of all Americans still detained in China. It still seems a toss-up whether Peiping will agree to such a deadline if the alternative is termination of the talks and public aware- ness of the positions taken. Chinese Communist repre- sentative Wang Ping-nan this week confirmed that Peiping has dropped its request for the names of all Chinese nationals in the United States. Moreover, Ambassador Johnson believes that Wang has accepted an American formula under which the Indian embassy would be restricted to investigating the cases only of those Chi= nese who feel they are being prevented from returning. French North Africa The French cabinet's ac- ceptance of the "package deal" whereby both Resident General Grandval and Sultan Mohamed ben Arafa are to be removed is not likely to relieve the tension in Morocco. In Algeria, rebel activities continue despite strong French countermeasures. Instruments of ratification of the French-Tunisian conventions have been exchanged in Paris, Chou En-lai reportedly plans to visit Egypt before the end of the year, at which time Egypt may agree to recognize Peiping and exchange diplomatic representatives. There has been no further progress, however, on the issue of the 40 or more Ameri- cans still detained. Wang has been careful not to encourage any belief that he will eventually agree to a definite deadline, such as three months. On the contrary, he has insisted that Peiping can "never" so agree. Wang's arguments continue to suggest that Peiping has several reasons for wishing to hold back some of the Americans indefinitely. Among them are a desire to save face, to en- sure satisfactory action on Chinese in the United States, and to secure additional con- cessions as the Geneva talks develop. and the conventions are expected to become effective in mid- September. French Morocco: The French cabinet has re uctantly approved the removal of Moroccan sultan Mohamed ben Arafa and accepted Resident General Grandval's resignation. Popular feeling among Moroccans in support of SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 NOTES AND COMMENTS Page 8 of 14 25X1 25X1 Approved For Reel se 2005/02/10 : CIA-RDP79-00927AW600070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Grandval is so high that the delay in Ben Arafa's departure envisaged by the French cabinet may have to be abandoned in order to avert fresh violence. French settlers who were primarily responsible for forc- ing Grandval's resignation con- tinue to support Ben Arafa and may attempt to prevent his de- parture. The settlers are unlikely to welcome General Pierre Boyer de Latour, who is slated to succeed Grandval. Boyer de Latour's recent firm- ness in dealing with the re- actionaries among French set- tlers in Tunisia makes him unwelcome to the settlers in Morocco. Isolated terrorism and sabotage, particularly of tele- phone and telegraph lines, continue. Algeria: The state of emergency, which was demanded by the French settlers, has now been extended to all Alge- rian departments. Guerrillas continue their activities in eastern Algeria. Meanwhile, the settlers are seeking to block the re- forms proposed by Governor General Soustelle, which are Afghan-Pakistani Dispute Turkey has again offered to mediate the Afghan-Pakistani dispute. Turkey's original offer to mediate the quarrel only if Af- ghanistan would renounce Push- toonistan propaganda completely was rejected by Kabul early in August. After consultation with Pakistan, the Turks have now indicated their willingness to mediate if propaganda is limited to "cultural and scheduled for discussion by the Algerian Assembly in late Sep- tembeer. Extremist settler groups are also seeking to dis- credit Soustelle, probably hop- ing to force his recall or resignation. Tunisia: The formal ex- change of instruments of rati- fication in Paris on 31 August was the final step prior to implementation of the French- Tunisian conventions. The agreements apparently are scheduled to be operative begin- ning in mid-September, but the entire process of putting them into effect is expected to take at least 20 years. Habib Bourghiba, Nationalist Neo-I)estour leader, is reported to be planning for Tunisian elections at the end of Septem- ber. Since both the Tunisian bey and the French community ob- ject to the principle of direct popular election ofa parlia- mentary body, any early elections are most likely to be limited and local in nature. Widespread unemployment and the serious economic dislo- cation which resulted from the recent drought are becoming the most pressing problems in the area, scientific" discussion of Push- toonistan. The Pakistani gov- ernment has urged the United States to give strong support to the Turkish effort. Although generally considered to be "pro- Pakistani," the Turks command respect in Afghanistan, which may, therefore, accept the new offer. Turkey has been reluc- tant to re-enter the confused situation and is likely to withdraw if either side shows signs; of further intransigence. 25X1 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENTS Page 9 of 14 Approved For Relee 2005/02/10 : CIA-RDP79-00927A000070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Yugoslav Attitude Towarcff-'or`e[gn Aid The Yugoslavs last week made an effort to explain away Vice President Vukmanovic- Tempo's 20 August denunciation of Battle Act restrictions and adopted a more co-operative attitude' regarding the "techni- cal questions" connected with US inspection of the military aid program in Yugoslavia. Yugoslav ambassador Vidic told Ambassador Bohlen in Moscow on 28 August that Vukmanovic, in his attack on the Battle Act, did not mean to imply that the Yugoslavs could no longer accept the terms of the act. Instead, he merely had been putting forth his government's view that the improved international situation made trade restrictions no longer necessary. In a conciliatory tone, Vidic said that his gov- ernment fully understood the Battle Act and that he realized the executive branch of the American government must abide by the laws connected with for- eign aid. He reiterated strongly his government's desire for con- tinued economic aid from the United States. On 27 August Yugoslav for- eign secretary Popovic, taking the initiative in a conversa- tion with Ambassador Riddleber- ger, emphasized how necessary he felt it was to settle the questions concerned with the US military aid program which were threatening US-Yugoslav rela- tions. He agreed that there was much logic in the American position and said that he him- self would discuss the points involved with Yugoslav military officials. It was agreed that Yugoslav and American military officials would take up the problems in September, follow- ing which Popovic and Ambassador Riddleberger would examine un- resolved difficulties. Riddleberger found Popovic's conciliatory attitude in marked contrast to his previous approach to this issue. The ambassador also noted that the Yugoslav government has recently made a slight concession by permitting a small increase in the size of the US military assistance staff. Belgrade apparently wants to avert a crisis in its re- lations with the United States, wishing to avoid termination of American economic aid at least until it knows what the USSR will offer in the economic ne- gotiations now going on in Mos- cow. In any event, the Yugo- slav government is not likely to choose voluntarily a course that would make it dependent on the 1JSSR alone for economic assistance. supplying equipment. According to Ambassador Vidic, his government is seeking through the Vukmanovic visit to Moscow to expand the basis for Yugoslav-Soviet trade; it is par- ticularly desirous of getting wheat, cotton, and oil. One Yugoslav official has said he hopes to get the latter two items on five-year credit terms at 1--percent interest. Vidic has confirmed that the USSR has of- fered a gold loan at 2 percent, and he considers it probable that the USSR would agree to financing in their entirety individual Yugoslav enterprises as well as 25X1 Approved For Release 2005 /0/c0 :~TA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENTS Page 10 of 14 Approved For R se 2005/02/10 : CIA-RDP79-00927AOQW00070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Widespread Strikes Anticipated in France The most extensive French strikes since the nationwide outbreak of August 1953 are ex- pected this fall unless large wage concessions are forthcom- ing soon. The Communist-con- trolled General Labor Confedera- tion (CGT) is making a strenuous effort to force the Socialist- oriented Force Ouvriere and the Christian Workers Confederation (CFTC) to co-operate with it in a drive for wage negotiations at the national level. The seriousness with which the government views the labor situation was apparent on 25 August when Premier Faure found time during his brief return to Paris from the negotiations at Aix-les-Bains on Morocco to call a meeting of his labor, finance, and interior ministers to discuss the problem. The government plans to facilitate labor-employer negotiations, and hopes that increased pro- ductivity will allow wage hikes without price rises. The labor agitation which flared up in June and July was probably checked only because many plants close or sharply reduce operations during the paid vacation period from mid- July through August. Near in- surrectional strikes broke out in the St. Nazaire and Nantes shipyards during this period. During these strikes the CGT undertook to train militants in leadership and unity-of- action tactics. Non-Communist unions have traditionally co- operated with the CGT in the shipyards, and the CGT has play- ed up the results there as an example of what unity of action could lead to on a national scale. The secretary general of the CGT, Benoit Frachon, pub- licly asked the president of the employers' association on 22 August to,begin wage negotia- tions at the national level "with the labor confederations." This was evidently aimed at forestalling any move by the government and management to negotiate with the non-Communist unions only. Frachon implied that there would be agitation in the fall by the Paris region metalworkers, the -traditional shock troops of large-scale labor action. On 23 August the CGT metalworkers union denounced as "nonexistent" the agreements concluded in July with the CFTC and Force Ouvriere, and called for "tight- ly controlled unity-of-action demands." On 25 August the CGT civil servants union renewed demands which had supposedly been set- tled, and this move has been interpreted as evidence that the CGT will unleash a general strike movement in the fall. In their efforts to counter the Communists' bids for labor power, the non-Communist unions are handicapped by inadequate leadership and organization and by management's attitude. Man- agement is absolutely opposed to a general rise in wages and recently expressed alarm at the "unexpected trend"' toward sup- port by conservative governments of labor's demands. Moreover, prospects for collaboration between the non- Communist labor organizations have been reduced since July when the government settled the civil servants' strike threat through an agreement with Force Ouvriere. This enhanced chances for the CGT to win support from the CFTC, which has always been more inclined than the Force Ouvrere to unity of action with the Communists. SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENTS Page 11 of 14 Approved For Rele a 2005/02/10 : CIA-RDP79-00927A00{p0070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Communist-led Strike ay Be Imminent n costa Rica A Communist-led strike in the United Fruit Company's small Laurel District in Costa Rica is threatened for 14 September. A strike in this area might spread to the company's 18,000 other banana workers in Costa Rica, and possibly to its 12,- 000 workers iu Panama. The end result may be an increase in Communist-led labor strength in both countries. The leader of the current strike agitation,is Isaias Marchena, Communist labor boss in the banana zone on Costa Rica's Pacific coast. Marchena, who returned in September 1954 from three months of training at the Communist World Federation of Trade Unions school in Buda- pest, has thus far carefully observed Costa Rica's complex labor laws. After a second balloting of the Laurel workers showed over 60 percent in favor of a strike, the govern- ment's labor court-was obliged on 25 August to declare that a strike, after a 20-day period for further negotiations, would be legal. In concentrating on the 1,500 workers at Laurel, the Communists have struck at the company's weakest point in Costa Rica. Unlike the major company divisions in Costa Rica, the Laurel District, located on the Panamanian bor- der, is administered by the Labor Unrest Mounts in Chile The current strike of some 50,000 Chilean civil ser- vants for 'a 60-percent wage increase reflects labor's grow- ing unrest as a result of the steady depreciation of real company's subsidiary in Panama, and the Laurel workers have not been treated as well as the company's other Costa Rican workers. A strike by the Laurel workers might well lead to a sympathy walkout by the easily aroused labor force of the company's larger divisions in Costa Rica. It could also spread to the company's planta- tions in Panama, which have heretofore been relatively free of Communist agitation. Such a general walkout by workers of the largest private employer in both countries might lead to increased Commu- nist strength within Costa Rican and Panamanian labor. In an attempt to prevent a strike, company and govern- ment officials plan to try to conclude two- or three-year contracts with representatives of a majority of the workers, but not with the Communist leaders, in'each of the com- pany's divisions in Costa Rica. These contracts would presumably offer the workers some- con-cessions. The American embassy in San close believes a frank policy by the company of promoting democratic unions among its employees would do much to end the present situation in which the Communists in Costa Rica have "virtuall.y'.a free hand" among the banana workers. I wages over the past several .years. Since President Ibanez was inaugurated in November 1952, the cost of living in Santiago has increased about 270 percent, and wage increases have failed to keep pace. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENTS Page 12 of 14 25X1 Approved For Re a 2005/02/10: CIA-RDP79-00927AOQW0070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Political considerations also are involved. Left-wing non-Communist groups in CUTCH, the labor confederation which claims to represent all-organ- ized labor in Chile, apparently are trying to force the creation of a left-wing government. The Communists, however, have re- mained relatively quiet thus far; their party is outlawed and they evidently fear that in the event of demonstrations the government would single them out for reprisals. . The government has an- nounced that it will not nego- tiate with the strikers until they return to work, and several hundred leaders of the striking workers have been arrested. The government's vigorous action is reported to have cowed the unions, and CUTCN has voted against calling a general strike. Argentine Political Situation The dramatic staging of President Peron's resignation offer and its firm rejection by Peronista organizations on 31 August has probably achieved the obvious objective of strengthening the president's position by demonstrating his strong popular support. A near-record crowd re- portedly responded to the Peronista Party's call for mem- bers to assemble and remain in front of Peron's office until he withdrew his offer. The general strike called by the General Confederation of Labor in support of Peron was reported effective- throughout the country. On 29 August President Ibanez asked congress for extensive special powers for a six-month period to deal with the strikes. The initial re- action of congressional leaders to this request was not favora- ble, however, and previous such requests by Ibanez have been turned down. The American embassy in Santiago estimated on 30 August that congress would refuse to grant the spe- cial powers on the ground that the emergency was not suffi- ciently grave. 25X1 coalition controls anything near a majority. Even granting all of the strikers'. demands probably would not have any lasting settling effect so long as inflation continues uncontrolled. To date no one has been able to produce an economic stabili- zation plan acceptable to the badly split Chilean congress, in which no single party or Peron's address to the crowd made clear that the government's peaceful "pacifi- cation" tactics will be changed and that "pacification" will be imposed if necessary, This probably means that arrests and tension will continue, at least until there is a decline in antigovernment attacks, which have been continuing on a small scale. The army, which has held the dominant power position in the government since the 16 June revolt and which also reportedly believes firm measures are necessary for the regime's security, may try to SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 NOTES AND COMMENTS Page 13 of 14 Approved For Re,se 2005/02/10: CIA-RDP79-00927A0(00070001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 dissuade Peron from extreme repressive measures. The army's position was strengthened re- cently by the consolidation of virtually all of the country's internal security forces under an army general. The violent tone of Peron's speech, which was probably stronger than the army expected, may make it difficult for the army to continue its moderate "pacification" efforts while at the same time supporting Peron. Nevertheless, the top military leadership will prob- ably continue to support Peron as long as he co-operates in suppressing controversial figures and policies, especially those responsible for the former attacks on the church. Anti-Peron sentiment re- mains strong, however, in the lover military echelons, par- ticularly in the provinces. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART II NOTES AND COMMENTS Page 14 of 14 25X1 Approved For ReJse 2005/CcB6 i DP79-00927A0 00070001-0 1 September 1955 In the crowded schedule of international negotiations set for the next few months, the USSR seems likely to give high priority to disarmament. Concrete achievements in this field could demonstrate to the NATO nations the political and financial advantages of "peace- ful coexistence"--without materially reducing Soviet mili- tary strength in the process. The USSR's disarmament position undoubtedly will be based on its 10 May omnibus proposal for relaxing inter- national tension. The disarma- ment section of the 10 May pronouncement seems to be a serious counterproposal to the plans previously advanced by the Test. The USSR probably hopes that if it appears reasonable and offers dramatic "deeds" like the recent demobi- lization of part of its armed personnel, Western resolve to maintain the strength of the Atlantic coalition will gradu- ally diminish. Moscow may seek to avoid the complex questions at issue by pressing for specific numerical limitations of armed personnel, which it probably regards as reasonable, mutually advantageous, and possible to effect. Moscow may be willing to make substantial reductions in its conventional military strength in order to achieve political objectives, but probably intends to maintain its nuclear strength. The diver- gence of views on the crucial matter of inspection and con- trol. makes an early agreement on this issue unlikely. Basically, the Soviet pro- posa.l of 10 May would establish limitations on the troop strength of the five major powers, reduce overt military expenditures, and prohibit the use of nuclear weapons. The principal loop- holes appear to be the lack of provisions for an adequate system of inspection and con- trol and the lack of a specific limitation on conventional armaments. Conventional Arms and Expendi- ures The two-year disarmament plan would first freeze the PROPOSED REDUCTION OF MILITARY MANPOWER Present Strength United States 3,304,001 (Unofficial) USSR 3,991,000 China 2,624,000 France 810,000 United Kingdom 834,000 Interim Level 2,152,000-2,402,000 4000P000-1,500,000 2,496,000-2,716,000 1,000,000-1,500,000 1,812,000 -2,062,000 1,000,000 -1,500,000 730,000 742,000 SECRET 650,000 050,000 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART III PATTERNS AND PERSPECTIVES Page 1 of 12 Approved For Release 2005/M'C0RB1''RDP79-00927A000070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 military manpower of each of the major powers at its 1954 level and then reduce this fig- ure during the first year by half the amount required to reach the proposed ultimate level. Military expenditures would be reduced accordingly. Reduction of manpower and ex- penditures would be completed during the second year of the plan. The apparent balance of armed personnel strength which would result from the proposal may be misleading. The develop- ment of nuclear weapons, togeth- er with the ability to deliver such weapons, probably will continue to be the most decisive factor determining relative military strengths. The Soviet switch to a willingness to abandon some of the USSR's conventional strength as a first step in the disarma- ment schedule may represent no more than a recognition of the realities of nuclear warfare. Furthermore, aside from the gap that may exist between overt and covert military expenditures there remains the important question of conventional equipment and materi- el. The Soviet pro- posal calls for a re- duction of armaments paralleling personnel and expenditure cuts, but nothing is said with regard to the number of such items as jet bombers, sub- marines or tanks. Achieve half of planned reduction during first year Completed reduction of forces and expenditures by end of second year Moscow has stipu- lated that a world disarmament confer- ence should beheld to fix arms and manpower limitations for the other nations of the" orld--at levels to be determined by economic and political factors, but not to exceed 200,000 men for each nation. This figure was enun- ciated by Bulganin at Geneva. The recent Soviet and Satellite announcements on re- duction`'?bf military manpower probably are intended, in part, to give additional prop- aganda. impetus to the man- power aspect of the Soviet proposal. Nuclear Weapons With respect to nuclear weapons, during the first year SOVIET DISARMAMENT PROPOSAL 444444444 SECRET Freeze manpower at 1954 level Manpower to be equalized in 2 years 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 25X1 PART III PATTERNS AND PERSPECTIVES Page 2 of 12 Approved For Reese 2005/09E?RE41:,-DP79-00927AO 00070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 FRANCE UK- the Soviet proposal calls for a moratorium on test explosions and agreement by the five major powers not to be the first to employ nuclear weapons. At the beginning of the second year,the production of nuclear weapons would be stopped and there would be a complete pro- hibition of their use after the armed forces were reduced by 75 percent of the total reduction. By this proposal, Moscow reiterates its earlier insistence that the disarmament program must be completed in such a way that conventional and nuclear disarmament are completed simultaneously. Control and Inspection The Soviet disarmament plan substantially follows Western proposals, but the Soviet provision for control and inspection moves away from the framework within which control usually has been discussed. The Soviet statement asserted that under current conditions of inter- national distrust the types of disarmament control hitherto pro- posed would be unreliable and un- realistice The proposal urged that conditions of trust must first be created among nations by means of a broad political settlement and a system of warnings and guarantees against sudden aggression. The Soviet plan contained a provision for setting up a permanent control organiza- tion, which would be allowed during the first phase of the plan to establish control posts at "big ports, railway junctions, motor roads, and airdromes." i USE OF NUC LEAAA' APONS SECRET (BILLIONS OF DOLLARS) An approximation. Value data do not necessarily reflect the volume of armaments production. WE . S AND IEtITIO SE 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART III PATTERNS AND PERSPECTIVES Page 3 of12 Approved For Release 2005~&&-RDP79-00927A600070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 It would be entitled to "de- mand and receive" information from states regarding implemen- tation of the cuts in armed forces and armaments, although there is no provision for verifying this information. The control organization would, when the second phase of the plan came into effect, have a staff of inspectors who "with- in the bounds of the control functions they exercise would have unhindered access at any time to all objects of control.,, This phrasing suggests that the 'USSR still adheres to its position of strictly limiting inspection to specifically designated establishments. The Soviet proposal dis- misses the crucial matter of nuclear inspection, saying it is an insoluble problem because of the difficulty in detecting whether atomic energy installa- tions permitted for peaceful purposes were in fact being used for the production of stocks of fissionable material for weapons. It asserts that there are "possibilities beyond the reach of international con- trol" for "organizing the secret manufacturing of atomic and hy- drogen weapons." Physical inspection of plants producing fissionable materials, however, and a close audit of the records of these plants, if this were allowed, would of course make more diffi- cult the clandestine accumula- tion of a large stockpile of fissionable material for nuclear weapons. While there could not be complete confidence that the inventory of Soviet nuclear weapons or the clandestine pro- duction of fissionable material could be determined, there could be fairly effective inspection of weapons delivery systems. The preparation necessary for launching a co-ordinated air attack on the United States would, at the present time, be difficult to conceal from inspection agents, given facilities for unhindered travel. Similarly, the devel- opment and production of long- range ? guided missiles-would prob- ably be impossible to hide from inspectors because of the scale and extreme complexity of the undertaking required for such projects. Under the broad terms of the current Soviet disarmament proposals, however, the possi- bilities for evasion of inspec- tion of disarmament measures are almost unlimited. The USSR's reluctance to commit itself to an effective inspec- tion system is suggested by the fact that the USSR has so far temporized with the recip- rocal aerial inspection plan advanced by President Eisenhower at Geneva. Related Aspects of the Omnibus Proposal The disarmament plan was a major part of the Soviet proposal of 10 May. Also in- cluded were proposals for the discontinuation of war propa- ganda, the withdrawal of forces from Germany, the dismantling of extraterritorial bases, the settlement of Far Eastern prob- lems, and economic and cultural exchanges. It was not clear from the language of the pro- posal whether Western acceptance of some or all of these other provisions was expected to pre- cede agreement on the disarma- ment plan. While the Soviet Union will probably continue to publicize these issues for propaganda pur- poses during forthcoming dis- armament discussions, the issues themselves are not likely to become major bones of contention in the discussions. Soviet propaganda on dis- armament has continued to em- phasize the 10 May proposals SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART III PATTERNS AND PERSPECTIVES Page 4 of 12 Approved For Ruse 2005/Q$IRDP79-00927A0,00070001-0 3 September 1955 suggesting that they would pro- vide a realistic basis for UN discussions. A recent Pravda article stressed that thepos- sibilities for an agreement TRENDS IN BRITISH COLONIAL POLICY In response to the accel- erated pace of political de- velopment in many of its over- seas dependencies, London is considering momentous adjust- ments in its colonial policies. British official thinking has, recently shown a growing aware- ness both of the constitutional problems and of the -immediate risks in Britain's policy of encouraging political ambi- tions in its colonies. In full awareness of its diminishing means of direct control, London is now seeking a way to make the colonies autonomous while trying to assure that they re- main stable in the process. Practically all of Brit- ain's 35 colonies scattered around the globe have made im- portant constitutional progress in the ten years since the war. Eleven of the 35 now have full adult suffrage. In the legis- latures of 17, at least a ma- jority of the members are elected by popular vote. In the past two years, constitu- tional development has been especially rapid in 11 of the 12 colonies with populations exceeding 1,000,000. Nigeria, for example, with a population of 31.5 million, is approaching almost complete local autonomy, and with British advice will undertake a further examination of constitutional arrangements and the question of self-government next year. Singapore in effect has had two are infinitely better since the Geneva conference and main- tained that a new "vital force" is apparent in the current move for disarmament. new constitutions since 1953. Despite the continuance of emergency conditions, important changes have been instituted in both Kenya and the Federation of Malaya. The Trend Toward Autonomy As a result of increasingly insistent demands for local autonomy and a concurrent re- duction in Bri-Cain's capabili- ties for direct control, ad- ministrative ties between London and the colonies have steadily loosened. American observers note that the Colonial Office refers even minor decisions to the colonial administrations, even if it means months, of delay. According to the parliamentary under secretary for colonial affairs, the Colonial Office no longer considers it desirable or possible for colonial gov- ernors to-"thrust advice" on ministers in constitutionally advanced territories such as Nigeria and the Gold Coast, vhere autonomy is virtually complete. In practice, this also applies even in less advanced colonies. London's?most serious prob- lem in arranging for the changed status of Britain's colonies concerns those territories which are undergoing rapid political development but which lack the resources for achieving full Commonwealth membership. Britain evidently still regards the attainment of equal and inde- pendent status within the SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART III PATTERNS AND PERSPECTIVES Page 5 of 12 Approved For Re,.se 2005/0ff'FtP'CFTRDP79-00927AOQ00070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 Commonwealth as dependent on a territory's ability to be eco- nomically viable and to make some contribution to Common- wealth defense. The wealth and size of Nigeria and the Gold Coast-provide for their becoming Commonwealth members relatively soon. Barbados or Jamaica, on the other hand, can scarcely ever hope to meet these criteria. In an effort to deal with the constitutional problems of COMMONWEALTH OF NATIONS* :UNITED KINGDOM JAMAICA .,BAHAMAS IiR. HOND./ -LEEWARD IS WINDWARD 15~.;-BARBADOS ^AMBIA TRINIDAD and TORAI:O't na SIERRA LEONE A Commonwealth Approaching Commonwealth status ^ Federation ^ Colony Some members of the Commonwealth are not shown on this map I SEPTEMBER 1955 N. RHODESIA ST HELENA inclines to the view that all colonies should henceforth be regarded as potentially inde- pendent members of the Common- wealth. In what appear to be officially inspired trial bal- loons, commentators close to the Colonial Office have re- cently suggested that its functions and personnel be transferred to the Commonwealth Relations Office. In similar vein, a Colo- nial. Office official on 27 June ADEN JNL.IA BRUNEI FE D. OF N. BORNEO ':. MALAYA` E IYA SEYCHELLES f SARAWAK NYASALAND MAURITIUS r FALKLAND IS. the far more numerous weaker dependencies, Britain seems to be considering two main ap- proaches. One is the adoption of a changed terminology which would blur even further the distinction between the depend- ent empire and independent members of the Commonwealth and in effect establish an inter- mediate Commonwealth status. The other approach is the for- mation of stronger constitu- tional units through regional associations of the smaller colonies. Intermediate Commonwealth Status There are several indica- tions that London's thinking discussed with American offi- cials the "new status" of British colonies. He noted that "commonwealth" already had a fixed usage and that the Colonial Office has long sought a substitute for "colony," a term with "so many unpleasant connotations." He said that Britain is considering the adoption of the term "state." The establishment of an intermediate Commonwealth mem- bership would antagonize some influential British elements. On the other hand, London may calculate that any such action would be well received by colonial peoples as an earnest of Britain's sincerity, and that the resulting good will SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART I I I PATTERNS AND PERSPECTIVES Page 6 of 12 Approved For ReJse 2005/0SCR19DP79-00927A0Q00070001-0 CURRENT INTELLIGENCE WEEKLY S 1 September 19115 would be conducive to orderly political development. In addition to these benefits, conferring a new status would presumably broaden the juridi- cal and political framework within which many colonial problems could be handled. Regional Federations Britain is making an effort to enhance the political and economic viability of some of its colonies by promoting the development of regional fed- erations with common judicial, financial, and legislative in- stitutions. London's policy is to encourage such associa- tions among members not strong enough to stand alone, or those which would draw essential sup- port from a more powerful neigh- bor. The Central African Fed- eration was formally established in 1953, and federations are now being actively considered for the West Indies and South- east Asia. Britain apparently. intends to work toward an East African Federation also. Regional association is most advanced among the seven small West Indian colonies, which are expected to reach final agreement on a federal constitution at a conference next January. The federation is expected to be in operation by 1957. Some British officials re- portedly hope that establish- ment of a West Indies federa- tion will promote political development in British Guiana, where no progress has been made toward restoration of responsi- ble government since the Com- munist-induced crisis of Octo- ber 1953. These officials reason that in the wider federal political arena, responsible political leaders.in other ter- ritories may organize moderate political parties in British Guiana in the hope of gaining support from them in the fed- eral legislature. The establishment of such a federation evidently will not result in,its immediate admission to Commonwealth mem- bership. Colonial leaders themselves have expressed the view that this will not be feasible until both British Guiana and British Honduras have achieved a stage of polit- ical development more like that of Jamaica and Trinidad. In Southeast Asia, Britain is reported as now definitely planning to complete federation of the colony of Singapore and the Federation of Malaya within five years. Britain would for a time retain authority in mat- ters of finance, defense, and foreign affairs, but the fed- eration would ultimately be offered independence with the option of joining the Common- wealth. According to a 19 August statement by Colonial Secretary Lennox-Boyd, this federation would eventually be expanded to include the British territories of Sarawak, Brunei, and North Borneo. The principal obstacles to orderly political development in Malaya and Singapore con- tinue to be the Communist threat to internal security and the rivalry between the Malayan and Chinese communities. Al- though it is generally agreed that Britain will not relinquish final control in the area until the Communist problem is greatly reduced, London apparently in- tends to continue pushing the development of federal parlia- mentary institutions, and ap- parently considers their es- tablishment the prerequisite to independence for either terri- tory? SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART III PATTERNS AND PERSPECTIVES Page 7 of 12 Approved For Re Use 2005/0~ fit fDP79-00927AOO00070001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1955 In East Africa, Britain apparently sees in federation a means of breaking through the ethnic rivalries and economic obstacles which have greatly complicated political development there. Publicly, however, Britain has allowed the idea of an East African federation to recede into the background. This has been partially because of the opposi- tion of_ Uganda--which teas strong indigenous institutions and few white settler groups--to possible association with Kenya and Tanganyika, where the European minorities exer- cise considerable power. The recent report of the East Africa Royal Commission, how- ever, which will form the basis for new policy developments affecting the region, strongly implies the necessity of a federal political solution. Although many of the commission's recommendations are provoking controversy both in London and among European settlers in Kenya, the Colo- nial Office can be expected to move ahead with arrange- ments already projected for closer association of Kenya and Tanganyika. An approach to Uganda, however, would pre- sumably remain a more distant prospect. Prospects The prospects are for the continuation of a relatively rapid devolution of political power to local authorities. Despite,, warnings by many British observers that "fail- ure" may wreak permanent damage on a colony, its in- habitants, and perhaps Brit- ish and Western interests, London evidently has no in- tention of changing its ob- jective. Unsatisfactory con- ditions in such territories as Cyprus and British Guiana have led to a heightened aware- ness of the risks involved, but have not deterred Britain from its general ,approach. 25X1 SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 PART III PATTERNS AND PERSPECTIVES Page 8 of 12 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0 Next 3 Page(s) In Document Exempt Approved For Release 2005/02/10 : CIA-RDP79-00927A000600070001-0