CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A000700170001-8
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January 21, 2005
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March 8, 1956
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SUMMARY
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Approved Forease 2005/02/10 CIA-RDP79-009270700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY DOCUNENTNO. NO CHANGE IN CLASS. ^ CLASS. CHANGED TO: TS COPY NO. 19 OCI NO. 1772/56 8 March 1956 DATJFf E`JIEWER:. CENTRAL INTELLIGENCE AGENCY III OFFICE OF CURRENT INTELLIGENCE State Department review completed S RET 25X1 25X1 Approved For. Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 CONFIDENTIAL;, Approved Forease 2005/02/10: CIA-RDP79-009270700170001-8 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-RDP79-00927A000700170001-8 DP79-009200700170001-8 OF IMMEDIATE INTEREST ARAB-ISRAELI SITUATION . . . . . . . . . . . . . . . . . Page 1 The rapid succession of incidents on Israel's borders with Syria, Jordan and Egypt is evidence of increasing confidence on the part of the Arabs and of Israel's deter- mination to maintain an unyielding position. These factors, the weakening of restraints in Jordan implicit in the dis- missal of British officers from the Arab Legion, and Israel's apparently increasing fears of Arab intentions have materially increased the danger that war could break out as a result of miscalculation on either side. _ - F 1 THE THREAT TO BRITISH INTERESTS IN THE MIDDLE EAST . . . . . . . . . . . . . . . . . . Page King Hussain's abrupt dismissal of General Glubb is symptomatic of the decline in British influence in the Middle East generally. The Foreign Office has indicated to the American embassy in London that it.believes closer support from the United States is essentials FURTHER SOVIET MOVES IN THE NEAR EAST . . . . . A delegation of Soviet engineers, authorized to make new offers and negotiate on the spot, is traveling through the Arab states. The Soviet ambassador in Egypt has re- emphasized the USSR's official interest in Middle Eastern affairs,and Moscow has saluted Jordan's dismissal of General Glubb as "a sound patriotic Arab decision." Moscow apparently intends to maintain a polite diplomatic pose with the Israelis while continuing to support Arab asni- FRANCE AND THE ALGERIAN CRISIS . . . . . . . . . The Mollet cabinet is facing its first major test in the current National Assembly debate on its request for extraordinary powers for Algeria. The government still lacks a really effective policy for Algeria. French military leaders incline to the view that Algeria will be lost unless extensive military action is taken soon. Page Page 5 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 THE WEEK IN BRIEF Approved For lease 2005 CREq'RDP79-009200700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY Peiping's Statement on the Geneva Talks: The 4 March state- ment by Peiping 's Ministry of Foreign Affairs on the Sino-American negotiations implied a more specific threat to the offshore islands than previous Communist declarations. The statement was apparently timed to coincide with Secretary of State Dulles' visit to Asia, in the hope that Asian leaders would bring personal pressure on him to agree to direct talks with Chou En-lai. Peiping seems disposed to continue the negotiations while preparing a case for American re- sponsibility if the talks break down. Page 1 25X1 Cyprus: A new test of strength between the British security forces on Cyprus and the island's Greek majority seems likely following the suspension on 1 March of negotiations between the British and Arch- bishop Makarios. The failure of the talks also has the effect of widening the breach between Greece and Turkey. . . . . . . . . Page 2 Morocco and Tunisia: The declaration issued on 2 March by the French an Moroccan governments is essentially a compromise permitting the current talks to proceed. Negotiations which will spell out French-Moroccan ties are expected to be conducted simultaneously in Rabat and Paris and may last until late in the summer. The Tunisians, who began new negotiations with the French on 29 February, have demanded the abrogation of the 1881 Treaty of Bardo, which established the protectorate. . . . . . Page 3 Afghanistan: The fast pace set by the USSR in its Afghan aid program is reflected in an unusually heavy flow of Soviet traffic and personnel to Kabul late in February and reported Afghan approval of an increase in the Soviet embassy staff. An agreement covering part of the $100,000,000 Soviet credit was signed on 2 March. Provision for airfield construction in the agreement is probably part of a Soviet drive to get control of Afghan civil aviation. Page 5 SECRET ii Approved For ReleaQO Q2/ 0 -1F - ;9-00927A000700170001-8 25X1 CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 Shift in Communist Tactics Against South Vietnam: Continued strengthening of t -Se Diem regime, most recently dem- onstrated in the 4 March election, has caused the Viet Minh to reassess its tactics toward the south. Real- izing that unification elections will not be held in 1956 and that there are no good prospects for over- throwing Diem by internal revolt, the Viet Minh is calling for new international negotiations, and is pre- paring for a long-term subversion effort. Page Singapore: Singapore's Chief Minister David Marshall is preparing to go to London late in April for talks on self-government. He does so in an atmosphere of diminishing British confidence in Singapore's readi- ness for self-rule. In view of steadily increasing Communist subversion in the colony, British officials are concerned over the absence of a strong non- Communist party or a competent non-Communist local leader in whose hands the new powers could be safely 6 25X1 . . . . . . - . . Page 8 Indonesia: President Sukarno has asked ex-prime minister Al~Sastroamidjojo to be the formateur of a new Indonesian cabinet. Chances that Sastroamidjojo will succeed are slim, and Sukarno may have to appoint one or more other formateurs. Sukarno would like to have the cabinet formed by 26 March when the elected parliament is to be installed. Regardless of whether the anti-Communist Masjumi participates in the new cabinet, Indonesian policy probably will be more strongly nationalistic than at any time in USSR Urges Resumption of Relations With Australia: Soviet officials in the UN have approached t eir Australian colleagues three times since November with proposals for re-establishing Soviet-Australian relations. Their efforts so far have made little progress, because of Soviet insistence that Australia publicly take the initiative, but the USSR will probably modify this position. Page 9 25X1 South Korean Liberal Party Nominations: President Rhee's ref usa to be renominated on the Liberal Party ticket serves to remind the party of its dependence on Rhee and sets the stage for his draft by popular acclaim. Although Liberal Party chairman Yi Ki-pung has been nominated for vice president, it is possible that Rhee will not endorse any one candidate. SECRET Approved For lease 2005ERDP79-00920700170001-8 Page 10 25X1 iii Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 THE WEEK IN BRIEF Approved Foelease 200(W1WDP79-00900700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY 25X6 Opposition to Rakosi in Hungary: Hungarian party leader ads , who has been having difficulty for some time in controlling. nationalist elements among the Hungarian Communists, probably faces new threats to his position. Moscow may decide eventually to sacrifice Rakosi, particularly if he is unable to overcome the serious factionalism within his party. PATTERNS AND PERSPECTIVES SOVIET POSITION ON DISARMAMENT . The Soviet representative in the London talks of the UN Disarmament Subcommittee convening on 19 March will probably press the Western powers to accept the interim measures suggested by Khrushchev in his report to the 20th Party Congress: discontinuation of thermonuclear weapons tests, prohibition of possession of atomic weapons by forces stationed in Germany, and reduction of military budgets. Otherwise the USSR probably will stand firm on the basic disarmament position set forth in its 10 May proposals of last year.' Page 11 Page 1 THE COMMUNIST PARTIES OF WESTERN EUROPE . . . , , . , Page 3 The evolution of the new Bulganin-Khrushchev foreign policy over the past year seems to have been of little help to the political fortunes of the Communist parties of Western Europe. In most countries, the influence of the parties has remained about the same or slightly declined. Where they have gained, or where they remain a major political force, as in France and Italy, this is largely the result of local developments. As adjuncts of the Communist Party of the Soviet Union, the European Communists appear to have been able to produce only limited support for Soviet foreign policy goals and to gain only limited benefits from shifts in Soviet policy, even when these have been in the direction of moderation. SECRET iv Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 THE WEEK IN BRIEF 25X1 25X1 Approved Folease 20058;G'IGDP79-009200700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March lb56 MAO TSE-TUNG AND THE COLLECTIVE LEADERSHIP PRINCIPLE . Page 8 Mao Tse-tung and other Chinese Communist leaders have regularly endorsed the principle of "collective leadership," but Mao for many years has personally led the Chinese Communist Party and has personally controlled its policy in a way not very different from Stalin's domination of the USSR. Mao's personal direction has been particularly evident in the past year. Nevertheless, Mao's program in China--that is, Chinese "application" of Marxist-Leninist doctrine--has continued to be warmly praised by Soviet leaders. Khrushchev's pragmatic approach to ideology suggests that he and Mao are suited to work well with one another. C JAPANESE INTEREST IN PROMOTING AN INDEPENDENT TAIWAN . . Page 11 Japanese leaders have long maintained that the creation of two Chinas offers the only feasible solution for the present impasse over the international status of Taiwan and Communist China. They are insistent that Taiwan must not fall into Communist hands. They fear this might occur suddenly, because of a collapse of the Nationalist regime through demoralization or the death of Chiang Kai-shek. This apprehension and the conviction that an independent Taiwan would be the most favorable solution for Japanese interests are behind the inclination of Japanese leaders to favor a Taiwan independence move- SECRET v Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 THE WEEK IN BRIEF 25X1 Approved Forlrelease 2005/02/10 : CIA-RDP79-009200700170001-8 SE( CElT OF IMMEDIATE INTEREST The rapid succession of border incidents on Israel's borders with Syria, Jordan and Egypt illustrates the in- creasing confidence of the Arabs, as well as Israel's determination to maintain an unyielding position. These factors, the weakening of re- straints in Jordan implicit in the relief of British of- ficers in the Arab Legion, and Israel's apparently in- creasing fears of Arab inten- tions have materially in- creased the danger that war could break out as a result of miscalculation on either side. There are some indica- tions that Israel, in the light of its failure to se- cure arms from she West, may seek a rapprochement with the USSR. Tel Aviv officials have said they are now will- ing to admit Soviet personnel under the UN technical assist- ance program, and even moder- ate Israeli newspapers have suggested. that the Soviet Union be given a voice in Near Eastern affairs. Some went so Tar as to suggest that Israel might ask the USSR for a guarantee of the status quo. This may be the policy decision American observers in Israel have be- lieved imminent. The USSR, however, apparently has not thus far made any move to suggest that it will meet the Israelis even halfway in supporting them against the ArabE.. (Also see Part I, page 4). The.fact that Israel has formally called the Palestine situation to the attention of the UN Security Council sug- gests that the Israelis have not decided to use the latest spate of border incidents as a takeoff point for larger- scale hostilities. Should some kind. of UN action not be forthcoming, however, the Is- raeli government might well feel impelled to stage a Iretaila- tory" action, especially if new incidents seem to threaten the security of Israel's bor- ders. The disappearance of British influence in Jordan has led Israeli foreign min- ister Sharett to comment that Israel was being "encircled" by the "long arm" of Egyptian prime minister Nasr. Egyptian influence in Jordan is almost certain to become dominant with the departure of the Brit- ish,; but Nasr's problems may Llso increase as a result of this victory for his policy. Nasr has already been at pains to urge the Syrians to moderation; with Jordan under his wing, he must also con- cern himself with the possi- bility that precipitate action by Arab Legion units against Israel could lead to Egyptian involvement in war before Cairo's preparations are completed. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 OF IMMEDIATE INTEREST Pare 1. of 5 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 Approved For,#ease 2005/02/10: CIA-RDP79-0092700700170001-8 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY THE THREAT TO BRITISH INTERESTS IN THE MIDDLE EAST The Jordanian king's abrupt dismissal of General Glubb on 1 March is symptomatic of the decline in British influence in the Middle East generally. The Foreign Office has indicated to the American embassy in London that it believes closer support from the United States is essential. Britain's capacity to.ar rest the decline of its influ ence in the Middle East has been weakened by the progressive de- cline in the leverage it can exert from its military bases in the area. In Cyprus, which is now Britain's principal base in the Middle East, the collapse of the latest negotiations with Archbishop Makarios means the continued commitment of many of the 20,000 British troops on the island to an intensive anti- terrorist drive. British evacuation of the Suez Canal base is now far advanced, and the Egyptian army maintains close surveillance over the disposition of the remaining British units. In Libya, the British plan soon to increase their garrison to armored divi- sion strength, but the Foreign Office anticipates increasing political problems there. .FURTHER SOVIET MOVES .IN THE NEAR:EAST Moscow is continuing to capitalize on its rapprochement with the Arabs. A delegation of Soviet engineers is on a fact-finding trip through the Arab states. According to the London interprets recent developments in the Middle East as increasing the threat to Britain's vital oil interests. A possible alliance between Jordan and Egypt and Syria at the minimum could bring heavy pressure on Britain by threat- ening to stop the flow of Brit ish oil through Syrian pipe.. lines. Reaching an agreement with Saudi Arabia in the Buraimi dispute is now seen by the British as of increased urgency, both for their oil interests and for the general stability of the region. The British view that im- mediate strengthening of the Baghdad pact is now necessary may reflect a belief that the developments in Jordan have further increased the USSR's ability to exert influence in the Middle East. There have been no indications that the British favor seeking additional Arab adherents to the pact at this time, but they have in the past shown that they would re- gard the pact as a convenient means for dispensing economic aid on a multilateral basis. F77 I Soviet minister to Lebanon, this group is prepared to fur- nish technical assistance or advice and to sign contracts for projects on the spot. The delegation already has visited SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 . OF .. IMMEDIATE,. 'INTEREST Page 3 of 5 25X1 Approved ForRlease 2005/02/10 : CIA-RDP79-009200700170001-8 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Lebanon and is now in Syria. It is going on to Egypt, Saudi Arabia, and possibly Yemen. The Arab News Agency states that the Soviet delegation has shown interest in providing Lebanon and Syria with oil refin- eries, textile factories, and:..'. other installations. The simi- larity of these projects to the industries covered in a detailed market survey made by Czechoslovakia several months ago suggests that the Soviet survey team will attempt to nego- tiate detailed contracts. Egypt In his first public state- ment since he arrived in Cairo in late January, Soviet ambas- sador Kiselev told the Egyptian press that any event in the Middle East that affected Soviet- Egyptian relations is "an impor- tant matter" for the USSR. He said that the Soviet Foreign Ministry's statement of 13 February on the Middle East and the resolutions of the So viet 20th Party Congress made clear the USSR's opposition to the dispatch of American and British forces to the area-- without the consent of the countries in the area--in the event of an Arab-Israeli war. Kiselev's remarks, which apparently were made with the prior approval of the Egyptian Foreign Ministry, were evidently staged to ensure that Soviet views--which tend to support present Egyptian foreign policy -reach the Egyptian public. Just as Moscow hailed the violent anti-Western riots in Jordan in December and January, it has saluted the dismissal of General Glubb by King Hussain as "a sound patriotic Arab de- cision." Referring to Glubb as the "honest servant of colonial- ism," Moscow accuses him of attempting to use the Arab Legion to push Jordan into the "prison" of the Baghdad pact by Machine- gunning the Jordanian people during the December riots. Iz veStia has termed Glubb's dig- -m ssa "a new great defeat of British foreign policy in the Middle East." The USSR apparently hopes to maintain a polite diplomatic attitude toward Israel while simultaneously continuing to support Arab aspirations. Molotov reportedly has told Israeli am- bassador Avidar in Moscow that he could understand Israel's security fears and why it de- sires to improve its armament. 25X1 25X1 'Israel recently announced that an exchange of Soviet and Israeli parliamentary delega- tions would take place at an unspecified date. 25X1 (Concurred in by - SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 OF'IMMEDI.ATE,INTEREST` Page 4 of 5 Approved For Release 200 ?RJ A-RDP79-0092 OA 00700170001-8 The Mollet cabinet is facing its first major test in the current National Assembly debate on its request for extraordinary powers for Algeria. The govern- ment still lacks a really effec- tive policy for Algeria and the search for a scapegoat has in- creased the tendency to blame the United States for France's North African difficulties. Premier Mollet's quasi- ultimatum to the rebels on 28 February to lay down their arms or face an all-out effort app.eazs to have had little effect and has tended to weaken his parlia- mentary position. The threat of force shocked many members of the premier's own Socialist Party, and the Popular Republi- cans have stated that they can- not condone the government's policy. The current Communist line stresses "ties between France and Algeria" rather than Algerian independence. The Communists may support Mollet because of their eagerness to maintain the fiction of a. popular front. The parties of 'the ,?'right remain critical of what they consider to be Mollet's con- tinued inaction, but may be willing to keep him in office to take the blame for unpopular measures--a factor which Mollet probably has taken into consid- eration. The search for a solution now focuses on the feasibility of early and massive reinforce- ment of French troops in Al- geria. Robert Lacoste, minister residing in Algeria, has asked for additional troops, in amounts variously reported between 100,- 000 and 200,000,;to::strengthen an estimated 200,000 already there. He is reported ready to resign if the government does not comply. French military leaders incline to the view that Al- geria will be lost unless ex- tensive military action is taken soon. General Valluy, French representative to the NATO Standing Group, estimates that the situation requires a total of 500,000 troops, but he fears that there is not enough time to train so many men for guerrilla warfare. Gen- eral Augustin Guillaume resigned as chairman of the Joint Chiefs of Staff Committee in protest over the government's indecision, stating subsequently that France has two alternatives: to call up new troops to "evacuate." he French army maintains a reserve subject to immediate recall without parliamentary consent composed of all conscripts who have completed their military service within the past three years. This reserve is believed to total 420,000, and, although it has already been levied on, it should be adequate to cover a call-up of as many as 300,000. Certain officials have charged the United States with encouraging the nationalists. At the same time they have argued that the USSR is attempt- ing to outflank NATO by encour- aging the Arab states to back North African nationalists, and Mollet has asked for a joint French-American-declaration of common,policy on North Africa. SECRET 5X1 25X1 25X1 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART I OF IMMEDIATE INTEREST Page 5 of 5 Approved For Release 2005/02/10: CIA-RDP79-009270700170001-8 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY NOTES AND COMMENTS Peiping's Statement on the Geneva Talks Peiping's Ministry of Foreign Affairs has made its second appeal to international opinion in seven weeks in eon nection with the Sino-American negotiations at Geneva. Charg- ing that the United States has been using the negotiations mere- ly to forestall Communist China's exercise of its rights to Taiwan and the offshore islands, Pei- ping warned on 4 March that it would not agree to the "dragging out" of the talks. The specific mention of "Taiwan and the coastal islands" at five different points in the 4 March statement strikes a new emphasis on the question of the offshore islands. For the past year, Communist China has re- frained from attempts to capture any of the offshore islands and in its statements on the Sino- American negotiations has slighted the islands by referring general- ly to the "Taiwan area." The shift in emphasis may be designed to underscore the Communists' disposition to exercise their capabilities against the offshore islands if the United States maintains its present stand at Geneva. The ambassadorial-level negotiations at Geneva, which began on 1 August 1955, resulted in fairly rapid agreement that nationals desiring repatriation would be released expeditiously. Despite this agreement, Peiping has continued to hold 13 Ameri- can prisoners in an obvious at-tempt to force American conces- sions as a condition for their release. The concession Peiping most desires at this time is agreement to hold direct talks between Secretary Dulles and Foreign Minister Chou En-lai, The 4 March statement was apparently timed to coincide with Secretary Dulles' visit to Asia. The Communists undoubtedly hope that Asian leaders, some already favorably disposed to a Dulles-Chou meeting, will per- sonally press their views on Mr. Dulles. Peiping would look for assistance particularly from Indian prime minister Nehru, who will receive the US secretary of state over the 9 March week end. During the visit of Khru- shchev and Bulganin to India, Nehru ,1 oti.ned them in urging that the Sino-American talks at Geneva be raised to a "higher" level. Peiping's primary considera- tion in pressing for a Dulles- Chou meeting involves prestige and implied recognition of great-power status, which would raise its international stature and further erode.the standing of the Nationalists. It is unlikely that the Communists ac- tually believe a meeting of foreign ministers could resolve the disputed points at issue. The Chinese Communists are willing to renounce force but only in the most general terms. They will not agree to renounce force against Taiwan, asserting that the "liberation" of Taiwan is a purely domestic matter. They concede that Taiwan should be "liberated by peaceful means, if possible," but affirm tha-L it will be "liberated by war, if necessary." They will not recog- nize the US right of "individual and collective self-defense" in the Taiwan area, since this would acknowledge the legitimacy of the US Mutual Defense Treaty with the Chinese Nationalists. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART I I . NOTES AND COMMENTS Pave 1. of 12 Approved For Release 2005 9'hft -RDP79-00927 0700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY While unwilling to renounce force against Taiwan, they would like to discuss the "question of relaxing and eliminating tension in the Taiwan area'-? at a conference attended by Dulles and Chou. Since Peiping argues that this tension derives from the American "occupation" of Taiwan, the conference would consider the question of Ameri- can "withdrawal." On all these points, Communist China has taken an unequivocal stand both in official statements and propa- ganda broadcasts, and loss of face would be entailed in any retreat from these declared positions. Cyprus A new test of strength between the British security forces on Cyprus and the island's Greek majority seems likely following the suspension on 1 March of negotiations between the British and Archbishop Makarios, The failure of the talks also has the effect of widening the breach between Greece and Turkey. Following the breakdown in the talks, Governor Harding ordered the immediate resump- tion of extensive security op- erations by the 15,000 police and British troops. Makarios has announced that the British must initiate any further talks and has asked the 410,000 Cypriot Peiping seems disposed to continue the negotiations while preparing a case for American responsibility if the talks break down. This does not neces- sarily mean continuing Communist forbearance toward the offshore islands. As the record in Korea demonstrates, protracted nego- tiations do not preclude con- current military pressure by the Communists. While there are no indications of an imminent attack against any of the off- shore islands, the Communists are conceded the capability for launching a major assault with little or no warning. Greeks to continue their "pas- sive resistance." His refusal to comment on terrorist activi- ty will also probably encour- age the underground organization EOKA to intensify its efforts. Makarios apparently re- jected the final British offer because of suspicion that Britain intended to manipulate the later constitutional negotiations so as to deny the Greek population a proportionate majority in a Cypriot legislature. Before the arrival of British colonial secretary Lennox-Boyd, Makarios had told the American consul in Nicosia that Harding's re- fusal to commit himself on that issue was the only remaining obstacle to agreement. SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART II NOTES AND COMMENTS Page 2 of 12 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Makarios apparently inter- preted Lennox-Boyd's sudden trip to Cyprus as a sign of British weakness. He probably renewed demands for an amnesty for political offenses and a time limit on the governor's control over public security as a means of exerting pressure for a concession on the propor- tional representation issue. Makarios probably expects that continuing pressures on the British will force the con- cessions he wants. A Labor member of the British Parlia- ment who participated in the final phase of the negotiations has told,the'.-American .embassy in Athens that he sees no way of breaking the impasse'. He questioned the wisdom of London's apparent attempt to convey con- flicting assurances to the Greek and Turkish communities on Cy- prus. He asserted, and the British ambassador in Athens "rather ruefully" agreed, that in six months Britain would wish it had made concessions on the three unsettled points. In retaliation for British jamming of Athens radio on 6 March, the Greek government Morocco and Tunisia The declaration issued by the French and Moroccan govern- announced termination of re- lays of broadcasts of the Brit- ish Broadcasting Corporation. Athens also appears to be exert- ing diplomatic pressure on the British and on its other allies in support of Makarios. The Greeks apparently con- sider the "hidden veto" Turkey has exercised over the negotia- tions as the cause of their breakdown. The Greek ambassa- dor in Belgrade was instructed to inform the Yugoslavs that 'Greece would withdraw its agree- ment to an early meeting of the ministerial council of the Balkan alliance, which includes Turkey. The Greek ambassador said that Turkish foreign minis- ter Koprulu's "provocative" speech to the Turkish parlia- ment on 26 February has made it necessary for Athens to review the entire question of its rela- tions with Ankara. For.both Greece and Turkey, the Cyprus;issue'is closely con- nected with.. violent nationalist emotions. Britain's attempt to straddle the basically uncom- promisable,positionof the two countries . resulted in accen- tuating the contrast. between them. merits on 2 March in effect re- iterates the promise of inde- pendence given last November but does not materially alter France's continued dominance in Morocco. The declaration SECRET 25X1 PART I I Approved For Release-05102/Ag-C f;Ts 0927A000700170001 p--a8 e 3 of 12 Approved For please 200WA 21~4M -RDP79-009200700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY suspends the protectorate treaty signed at Fez in 1912 and is essentially a compromise per- mitting the current negotiations to proceed. The Moroccans had demanded immediate abrogation of the 1912 treaty, while the French had insisted that the links of "interdependence" with France must be spelled out prior to abrogation. France now has agreed to Moroccan participation in Morocco's foreign affairs, de- fense and internal security. In general, however, the Moroccans will be confined to token representation. A French Foreign Ministry spokes- man has told the American embassy in Paris that the French are following the same line the British have used successfully --that is, "giving... everything on paper and hoping to retain substantial influence in fact." The spokesman added that France is relying heavily on the ex- cellent personal relations existing between the sultan and Andre Dubois, the former French resident general in Morocco who is now designated high commis- sioner. Negotiations to spell out French-Moroccan ties are expect- ed to be conducted simultaneous- ly in Rabat and Paris and may last until late summer. The Moroccans fear the French may exploit the near. bankruptcy of Morocco's treasury to bind the country more closely to France than they desire. The French Foreign Minis- try spokesman also stated that France is anxious to see a Mo- roccan army created rapidly so that it can take over the major portion of operations in the Rif. While composed of Moroc- can soldiers, the army would be commanded by a French general and rely on the French for ar- tillery support, all logistics, and special services. The spokesman also expect- ed that the sultan would soon make a strong statement calling on Moroccan rebels to lay down their arms. In the past the sultan has resisted French pres- sures for a surrender call, partly to avoid the risk of having the call ignored, and partly to use the rebellion for :bargaining purposes. He may now delay a surrender call until he is certain such a request would be obeyed. Both the declaration on. 2 March and the return of the sultan to Rabat on'5 March re- sulted in popular demonstrations throughout Morocco acclaiming independence. In Spanish Morocco, demonstrators clashed with the police and 19 Moroccans were killed and more than 150 in- jured. Spain, whose position with regard to the joint dec- laration has been "reserved," may now be subjected to increas- ing nationalist pressures for concessions in Spanish Morocco.. TUNISIA French-Tunisian negotia- tions, which will probably lead to Tunisian participation in foreign affairs and defense SECRET -200 :E - Pig-00927A00070017Qa01g-8 4 of 12 PART II Approved For Releasf OTE AN W Approved For ease 200M h RDP79-00927A000700170001-8 i"We CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 matters, opened in Paris on 29 February. A French Foreign Ministry spokesman has informed the American embassy that France will not consider the Tunisian demand for abrogation of the Treaty of Bardo, which established the. protectorate in 1881, until a written re- quest is submitted by the Tuni- sian bey. The French, if they desire, can influence the bey not to sign a formal request The bey,,whose political stature is negligible, is re- ported to fear that Habib Bourghiba, head of the moderate Neo-Destour party who paved the way for the current nego- tiations, plans eventually to abolish the monarchy and es- tablish a republic. The bey, therefore, reportedly is sup- porting extremist nationalist Salah ben Youssef, who fled to Tripoli in January to avoid arrest. Afghanistan The fast pace set by the USSR in its aid program in Afhanistan is reflected in an unusually heavy flow of Soviet traffic and personnel to Kabul late in February, and reported Afghan approval of an increase in the Soviet embassy staff. An Afghan-Soviet agreement covering part of the $100,000,- 000 Soviet credit was signed on 2 March, Provision for air- field construction in the agree- ment is probably part of a Soviet drive to get control of Afghan aviation.. The agreement, as reported by Radio Moscow, also provides for construction of two hydro- electric stations, three motor Ben Youssef desires com- plete and immediate independ- ence for Tunisia and has en- gaged in a long campaign of opposition to the French-Tuni- sian conventions signed in Paris last June, The elections, the first ever to be held in Tunisia, are for a constituent assembly which is to convene on 8 April to write a new constitution for Tunisia. The bey..fears that the con- stituent assembly under the in- fluence of Habib Bourghiba may draft a constitution for a re- public rather than a constitu- tional monarchy. However, the Treaty of Bardo, which was specifically mentioned in the June conventions as retaining its full validity, guarantees the bey's position and reroga- tives. repair shops, a road across the Hindu Kush Mountains, irrigation works, a laboratory at Kabul, and a fertilizer plant. Afghan press reports also include a road maintenance unite The arrival in Kabul on 1 March of a high-level Soviet aviation mission to negotiate establishment of an air service between Afghanistan and the USSR coincides with the an- nouncement that the Russians will undertake reconstruction of the Kabul airfield and de- velopment of a new field 30 miles north of Kabul, a place known locally as Bagram. The Bagram field is to be a mili- tary one, according to several reports. SECRET 25X1 25X1 PART i I Approved For Release 2005/02/10: CIA-RDP79-00927A000700170001-8 NOTES AND COMMENTS Page 5 of 12 Approved For Release 29&T /4~CIA-RDP79-00000700170001-8 l CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 ~' Broad gauge railroad All-weather road zil Qala HELMAND RIVER DEVELOPMENT AREA, R andahar Chaman Quetta PROBABLE LOCATION OF SOVIET PROJECTS UNDER THE 2 MARCH 1956 AGREEMENT Fort Sandeman Gilgit _ ,J JAM M U KIS?TAN AND ,[a r ShaWaf. ($Ya[OS in dispute) Khyber Pass SAUDI ARABIA Rawalpindi L -I MILES - Laboratory Airfield AL Irrigation dam Hydroelectric station Hindu Kush road Motor repair shop 25X1 25X1 Shift in Conruz.ist Tactics Against Sou a nazis Continued strengthening of the South Vietnamese government, most recently demonstrated in the 4 March election, has caused the Viet Minh to reassess its tactics against the south. Despite bitter Viet Minh de- nunciation of the election,1a SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART II NOTES AND COMMENTS Page 6 of 12 Approved Forte a ase 2005f 027 { &DP79-0092. A (0 0700170001-8 solid progovernment slate was returned for the 123-seat Viet- namese constituent assembly summoned tc approve Diem's constitution. Realizing that the uni- fication elections, scheduled for July 1956,:will not be held and that there is no good pros- pect for overthrowing Diem by internal revolt;, the Viet Minh is now calling for new inter- national negotiations and is preparing for a ,long-term sub- versive effort ;in South Viet- nam, In conformity with cur- rent international Communist strategy, the Viet Minh does not appear to contemplate the use of its superior military forces. Initially the Viet Minh appears to be considering supporting a neutralist South Vietnam government-in-exile under the leadership of Tran Van. Huu, onetime French- controlled premier... Huu; hopes to set up a rival government for South Vietnam possibly based just north of the 17th parallel. While Huu has little or no support in the south, his close contact with North Vietnam leaves little doubt that the Viet Minh is intimately acquainted with Huu's plans ands is very prob- ably supporting the movement. On the international scene, Communist efforts to obtain a new Geneva conference on Indo- china have been well co-ordinated, with Moscow and Hanoi endorsing Chou En-lai's call for such a conference. Concurrently, Pol- ish members of the International Control Commission have stated the need for a new conference with the implied threat that "we cannot hold them (the Viet Minh) back indefinitely." Communist policy makers probably feel that they have everything to gain and little to lose if they can maneuver the West into accepting a new conference. Hanoi may hope for an agreement to increase economic and political relations between north and south, and perhaps even to commit the Diem govern- ment to a definite election schedule for all Vietnam. In South Vietnam, the constituent assembly is ex- pected to convene shortly and. will undoubtedly approve, within the specified 45-day limit, a draft constitution prepared under Diem's supervision. The draft constitution reportedly provides for a separation of powers, with overriding author- ity vested in the presidency. The emphasis placed on impeding Viet Minh efforts to subvert the young republic is indicated in a provision of the assembly election ordinances waiving parliamentary immunities in cases where opinions expressed by deputies "aim at supporting 25X1 policies or activities of Com- munists or rebels." SECRET PART I I Approved For Relea / I P79-00927A000700170001-8 C .. ' TS Page 7 of 12 Approved For Release 2005 ERDP79-009 7A 00700170001-8 CURRENT INTELLIGENCE WEEKLY SUM'KARY Singapore Singapore's Chief Minis- ter David Marshall is preparing to go to London late in April for talks on self-government. He does so in an atmosphere of diminishing British con- fidence in Singapore's readi- ness for self-rule. In view of steadily increasing Com- munist subversion in the colony, British officials are concerned over the absence of a strong non-Communist party or a. competent non-Communist local leader in whose hands the new powers could be safely en- trusted. Obstruction of the movement toward independence, on the other hand, would pro- vide the Communists with polit- ical capital. Marshall, who is strongly anti-Communist, has not been an effective chief minister. His health is poor and he lacks a strong political organiza- tion. His party, the Labor Front, was hastily organized in 1954 to contest the April 1955 elections. It is now unsuccessfully competing for support among the same popula- tion groups which are being ex- ploited by Singapore's best organized and most rapidly growing party--the Communist- manipulated People's Action Party. In the Singapore Legis- lative Assembly, opposition strength--of which the People's Action Party is a part--equals that of the government. Marshall ansi other Labor Front leaders have considered expanding the present coalition government, which also includes the Alliance, a Malay-Chinese political organization which has little strength in Singa- pore. The Labor Front has ex- plored co-operation with a. newly organized Chinese party, the Liberal Socialist Party, and with the so-called "right wing" of the People's Action Party. Both of these groups, however, appear increasingly dis- inclined to enter the govern- ment before the London talks. Should Marshall be unseated after the talks, his pros- pective successors appear less likely to provide vigor- ous anti-Communist leadership than he. Although plans are con- tinuing to hold the self-govern- ment talks in April as scheduled, tentative alternative schemes are being explored. The prin- cipal one is' the admission of Singapore as the twelfth state in the Federation of Malaya, where the government is much stronger and where Communist subversion has not developed to the extent it has in Singa- pore. Marshall claims that such a course would be politi- cally unpalatable to Singapore. He prefers a form of political combination which the two gov- ernments would enter on equal terms. This suggestion, how- ever, has already been re- jected by Malaya's Chief Minister Rahman. Rahman is re- luctant to get involved in Singa- pore's intricate political prob- lems on any basis and partic- ularly dislikes the prospedt of the accession of Singapore's large Chinese population. 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART II NOTES AND COMMENTS Page 8 of 12 Approved Fo Re,ease 200Q RDP79-0092W0 0700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY Indonesia President%Sukarno has asked ex-prime minister All Sastro- amidjojo to be`the formateur of a new Indonesian cabinet. Chances that Sastroamidjojo will succeed are slim and Sukarno may have to appoinlY one or more other formate0s. Sukarno would like to have the cabinet formed by 26 March, when the elected parliament is to be installed. The Harahap cabinet, which re- signed on 3 March, is continu- ing in office as a caretaker government andthe old parlia- ment has recessed pending for- mal dismissal on 25 March. Cabinet negotiations will revolve around. 'the National Party (PNI) and the Nahdlatual Ulama (NU). WIether these par- ties will turn 'to the moderate, anti-Communist:Masjumi, also a major party,to give their government stability in the par- liament is the principal ques- tion which the negotiations will decide. Editorials in NU-.influenced papers state.that resignation of the Masjumi;led cabinet has ."kept the door open" for.co- operation with,the Masjumi... Masjumi chairman Natsir, how- ever, has said he does:notbe- lieve the PNI?-NU "team" would. accept his.part.y in the cabinet as an "equal"..and that he re- jects any other ,terms. Other reports, however, state that Vice Chairman Sukiman and not Natsir will speak for the Mas- jumi, and that his more flexible attitudes and greater political skill may open the way for Mas- jumi participation on satis- factory terms. Should efforts toward a tripartite coalition fail, the PNI and NU will turn to the 22 small parties which account for 21 percent of the membership of the new Indonesian parliament. A coalition including the NU and numerous small parties would lend itself to largely unre- strained direction by the Na- tional Party and President Su- karno, and would have the support of the Communist Party. In any event., Indonesian policy probably will be more strongly nationalistic than at any time. heretofore. The plu- rality of the National Party in the September and December elec- tions has been interpreted by all parties as an endorsement of a nationalistic approach to Indonesia's problems. Probably scheduled to re- ceive early and continued atten- tion is-;the country's claim to 25X1 Netherlands New Guinea (West Irian). Soviet officials in the UN have approached their Australian colleagues three times since November with Tronosals that Australia take the initiative publicly in re-establishing re- lations with the USSR, which were suspended in April 1954 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART 11 - NOTES AND COMMENTS Page Approved For elease 2005/02/10: CIA-RDP79-0092 00700170001-8 r T CURRENT INTELLIGENCE WEEKLY,., SUMMARY after the Petrov spy scandal. The conversations have made little progress because of So- viet insistence that Australia make the first public approach and also guarantee diplomatic protection for the Soviet em- bassy and its personnel. Aus- tralia has countered with the proposal that both sides simul- taneously exchange identical. notes to avoid appearance of initiative from either side. The USSR will probably modify its present position eventually to achieve normaliza- tion of relations. Australia is one of the few countries still untouched by the post- Stalin Soviet policy of expand- ing relations with non-Communist countries. The presence of Soviet diplomatic representatives in Australia would facilitate establishment of support facil- ities for the Soviet Antarctic expedition and participation of Soviet athletes in the sum- mer Olympics at Melbourne. A high official of the Australian Department of Ex- ternal Affairs has expressed the opinion that both embas- sies will be restaffed and relations resumed at the latest prior to the opening of the Olympics in November. He thought that the Petrov revela- tions would work against re- sumption of Soviet expionage activity. South Korean Liberal Party Nominations President Rhee's refusal to be renominated on the Liberal Party ticket has served to re- mind Liberal politicians of their dependence on Rhee, and sets the stage for his renomina- tion by popular acclaim. Rhee has stated that while he does not consider himself "incapable of working for the country," the Liberal Party should ''wait:-and listen" for the voice of the people. The nomination of Liberal Party chairman Yi Ki-pung for vice president reflects his continued domination of the party organization and the pre- vailing view that his candidacy is acceptable to President Rhee. Election to the vice presidency would make Yi the likely succes- sor to the 80-year-old Rhee; however, his prospects might be jeopardized should Rhee fail to endorse him or if Rhee should run independently. A member of the opposition Democratic Party has predicted that Rhee will encourage several vice-presi- dential condidates without sup- porting any one. Reports that Rhee desires an overwhelming vote of confi- dence in the election suggest that he will take advantage of the support of the Liberal Par?- ty organization. However, mem- ories of the 1952 campaign., in which Rhee at the eleventh hour successfully shifted his support from the Liberal Party vice-pres- idential nominee to the present incumbent, Ham Tae-yang, will encourage Yi's opponents and possibly stimulate independent campaigns for the vice presi- dency. 25X1 25X1 The rapid initiation of "draft Rhee" demonstrations in Seoul suggests that Rhee will shortly announce his willingness to bow to the people's will. 25X1 The opposition Democratic Party is expected to nominate its tick- et later this month. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART II NOTES AND COMMENTS Page lp of 12 Approved FcIease 2005/02/10 : CIA-RDP79-00900700170001-8 CURRENT INTELLIGENCE WEEKLY "-:SUMMARY after the Petrov spy scandal. The conversations have made little progress because of So- viet insistence that Australia make the first public approach and also guarantee diplomatic protection for the Soviet em- bassy and its personnel. Aus- tralia has countered with the proposal that both sides simul- taneously exchange identical notes to avoid appearance of .initiative from either side. The USSR will probably modify its present position eventually to achieve normaliza- tion of relations. Australia is one of the few countries still untouched by the post- Stalin Soviet policy of expand- ing relations with non-Communist countries. South Korean Liberal Party Nominations President Rhee's refusal to be renominated on the Liberal Party ticket has served to re- mind Liberal politicians of their dependence on Rhee, and sets the stage for his renomina- tion by popular acclaim. Rhee has stated that while he does not consider himself "incapable of working for the country," the Liberal Party should '.'wait:.and listen" for the voice of the people. The nomination of Liberal Party chairman Yi Ki-pung for vice president reflects his continued domination of the party organization and the pre- vailing view that his candidacy is acceptable to President Rhee. Election to the vice presidency would make Yi the likely succes- sor to the 80-year-old Rhee; however, his prospects might be jeopardized should Rhee fail to endorse him or if Rhee should run independently. A member of the opposition Democratic Party has predicted that Rhee will The presence of Soviet diplomatic representatives in Australia would facilitate establishment of support facil- ities for the Soviet Antarctic expedition and participation of Soviet athletes in the sum- mer Olympics at Melbourne. A high official of the Australian Department of Ex- ternal Affairs has expressed the opinion that both embas- sies will be restaffed and relations resumed at the latest prior to the opening of the Olympics in November. He thought that the Petrov revela- tions would work against re- sumption of Soviet expionage activit encourage several vice-presi- dential condidates without sup- porting any one. Reports that Rhee desires an overwhelming vote of confi- dence in.the election suggest that he will take advantage of the support of the Liberal Par- ty organization. However, mem- ories of the 1952 campaign., in which Rhee at the eleventh hour successfully shifted his support from the Liberal Party vice-pres- idential nominee to the present incumbent, Ham Tae-yang, will encourage Yi's opponents and possibly stimulate independent campaigns for the vice presi- dency. The rapid initiation of "draft Rhee" demonstrations in Seoul suggests that Rhee will shortly announce his willingness to bow to the people's will. The opposition Democratic Party is expected to nominate its tick- et later this month. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 NOTES AND COMMENTS Page 10 of 12 25X1 25X1 25X1 Approved FQIease 2005/02/10: CIA-RDP79-00900700170001-8 SECRET CURRENT IXTELLIGENCE WEEKLY SUMMARY 8 March 1956 25X6 Opposition to Rakkosi in Hungary Hungarian party leader Rakosi, who has been having dif- ficulty for some time in con- trolling nationalist elements among the Hungarian Communists, probably faces new threats.to his position. Rakosi has apparently depended mainly on Moscow's sup- port to maintain himself in power since his ouster of the more moderate Communist leader, ex-premier Nagy, a. year ago. The leaders of Rakosi's opposi- tion reportedly feel that his personal leadership and austere domestic policy no longer con- form to Soviet precept or prac- tice, in view of recent Soviet criticism of Stalin and offical Soviet pronouncements endorsing collective leadership and ad- mitting the possibility of a. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 NOTES AND COMMENTS Page .1,1 of 12 Approved F%,Rp lease 2005/02/10: CIA-RDP79-009?70700170001-8 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 8 I a.rc:h 1956 different path to socialism than that followed by the USSR. They are also encouraged by reports that an official revision of the findings of the 1948 trial of Laszlo Rajk, who was executed on charges of nationalist deviation and con- spiracy with Tito, is under study both in Moscow and Budapest. A reversal of the Rajk verdict would stimulate Rakosi's opponents to greater efforts. Rakosi probably will not be directly implicated in any re- vision of the official version of the Rajk trial, since the blame can be laid on conven- ient scapegoats such as ex- police chief Gabor Peter and former politburo member Mihaly Farkas. Nevert:heles.s,,.RakosVs critics would'interpret revisiop of the findings in the Raj:k case as a withdrawal of Soviet sup- port for Rakosi and tacit en- dorsement of their demands for freer expression of their con- flicting views and for greater local autonomy in working out Hungarian policy. Moscow may in fact even- tually decide to sacrifice Rakosi, particularly if he is unable to overcome the'serious factionalism within his party. His removal from the Hungarian scene would add to the general persuasiveness of the ideologi- cal shifts enunciated at the recent Soviet party congress by showing that Moscow was ap- plying a less heavy hand in the Satellites. 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART II NOTES AND COMMENTS Page 12 of 12 Approved FoRe ease 2005/02/10: CIA-RDP79-0092 A0700170001-8 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 PART III PATTERNS AND PERSPECTIVES SOVIET POSITION ON DISARMAMENT The line the Soviet dele- gate to the UN Disarmament Sub- committee will probably take when it reconvenes in London on 19 March was indicated in speeches by the top Soviet leaders at the recent party congress in Moscow. The Soviet leaders regard their disarma- ment policy, not a,s an end in itself but rather as a power- ful political instrument to be manipulated in the pursuit of broader foreign policy ob- jectives. Soviet Position at London The Soviet representative in the forthcoming London talks will probably press the Western powers to take the preliminary steps proposed by Khrushchev in his report to the party con- gress. Khrushchev suggested that agreement on the "more intricate aspects of disarma- ment" would be facilitated if the nations would (1) discon- tinue thermonuclear weapons tests; (2) prohibit possession of atomic weapons by forces stationed in Germany; and (3) reduce military budgets. This simple three-point interim program is another example of the USSR adopting elements of proposals previously advanced by non-Communist spokesmen. Nuclear Weapons Tests The proposal to discontinue thermonuclear tests is the first Soviet suggestion that this measure could be adopted outside of a, general disarmament agree- ment. It will establish a basis for later Soviet denuncia- tion of the series of American nuclear tests in the Pacific beginning late in April and of Britain's initial. hydrogen bomb test later this year. Since Khrushchev's speech) the Soviet delegate on the UN Trusteeship Council has been pressing the council to halt further tests in trust terri- tories. Although the Soviet delegate did not insist on a vote on th s issue, India's Khrishna Menon used the occa- sion to warn that if the United States proceeded with the tests in the Marshall Islands, India would demand that the International Court of Justice be asked to rule on the legality of nuclear tests in trust territories. The Soviet leaders also expect that the proposed ban on hydrogen tests will have a. strong appeal in Western Europe. Moscow probably expects that the French delegate, Jules Moch, will be prepared to move further and faster than his Western colleagues toward pro- moting a. synthesis between the Soviet and Western positions. Molotov, in his party congress speech, noted that Premier Mollet had expressed a special interest in the disarmament problem and promised that the USSR would strive, "together with France, to achieve certain progress in the solution of this problem." Moscow may also anticipate that a nuclear test ban proposal would place the Eden government in an embarrassing position with British public opinion and the Labor Party, which has been press- ing the government to seek agreement on limiting or pro- hibiting further tests. Atomic Weapons in Germany Khrushchev's second point-- prohibition of possession of atomic weapons by troops SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Paae 1 of 12 Approved For Re ease 2005/ Hlt ArRDP79-009277AO00700170001-8 1. lftiw stationed in Germany--was first put forward in the Prague dec- laration of the Warsaw pact meeting on 28 January. At that time it was coupled with a modified version of Eden's sum- mit conference plan, which called for the creation of a. semidemilitarized zone in Europe, incorporating both East and West Germany, in which opposing forces would be limited and controlled. M litary Budgets The third point--reduc- tions in military budgets--was apparently intended as a cau- tious endorsement of former French premier Fa.ure's proposal at the summit conference. Recent Soviet statements have provided no hints that there will be any shift in Moscow's position on the car- dinal problem of inspection and control. The Soviet delegate probably will continue to stress the importance of the conces- sions 'to the Western position embodied in the plan his govern- ment presented on 10 May 1955 and to insist that the sub- committee should reach agree- ment on force levels and the timing of the prohibition on the use of nuclear weapons as the first step toward final agreement. The Russians still appear confident that the plan they advanced on 10 May has given them a. strong advantage over the Western powers and that they ca.n maintain it indef- initely. The Soviet dele- gate may introduce amendments ostensibly designed to widen the possible area of agreement with the West. For example, he may announce that the USSR is not irrevocably committed to the .:orce levels in the Soviet draft, and would be willing to discuss modifications as long as the West accepts the principle of fixed reductions as an integral part of a general disarmament treaty which would require a complete prohibition of nuclear weapons. The Soviet delegate may also suggest that rockets and missiles be prohibited along with nuclear weapons. Premier Bulganin told the Supreme Soviet on 29 December that the USSR favors outlawing "atomic and hydrogen weapons and other types of weapons for wars of annihilation, including rocket missiles which have been de- veloped particularly over the past five years and... are becoming intercontinental weapons." As always, Soviet disarma- ment policy is shaped to serve broader political objectives. For many years after World rrd.r II, Moscow relied on the simple demand for immediate pro- hibition of atomic weapons and a one-third reduction in armed forces and armaments. The first major shift in this policy came in September 1954, three months after France and Britain had outlined a new phased disarmament program .which departed significantly from past Western positions. The USSR's acceptance of this program as a, basis for a, disarmament convention, an- nounced by Vyshinsky in the UN General Assembly on 30 September 1954, was clearly timed to coin- cide with the crucial meeting of the Western foreign min- isters in London to devise a, substitute to the EDC plan for rearming West Germany, which had been defeated by the French assembly a month earlier. This shift was aimed directly at the French in the hope that they would postpone any action toward German re- armament until they had ex- plored the new Soviet dis- armament position. The USSR at that time accepted the SECRET Approved For 005/02/10 : CIA-RDP79-00927A000700170001-8 PART III NS AND PERSPECTIVES Page 2 of 12 Approved FQrRe-lease 2005/0 ,qL1IRDP79-009?7A 00700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY concept of a two-phase program, and, for the first time, agreed that reductions of conventional armaments should be initiated prior to an unconditional re- nunciation of the use of nuclear weapons. The next major Soviet dis- armament plan was placed before the UN Disarmament Subcommittee meeting in London on 100Ma.y 1955, five days after the final ra.ti- fication of the Paris agreements and West Germany's entry into NATO. It was a vital component of the new Soviet diplomatic offensive launched last spring. THE COMMUNIST PARTIES The new Eulganin- Xhrushchev foreign policy over the past year seems to have been of little help to the political fortunes of the Communist parties of Western Europe. In most coun- tries the influence of tl a par- ties has remained about the same or slightly declined. Where they have gained it has been largely the result of indigenous developments. Communist capabilities continue to vary widely from country to country in Europe. Communism remains a major polit- ieal. force in France and in. Italy; elsewhere in Western Eu:- rope,, excepting Iceland, it is Moscow then accepted the max- imum levels for conventional forces and the timing of the ba.n on the use of nuclear weapons proposed by the Western powers on 8 March 1955. The timing of Soviet dis- armament moves suggests that the Soviet leaders are less interested in a formal enforce- able disarmament agreement with the West than in manipulating world opinion in such a way as to cause the curtailment of Western military spending, the reduction of armed forces, and the weakening of NATO. politically isolated, a minor force in the councils of labor, and. an instrument of question- able value for the propagandiz- ing of Soviet directives. During most of the past year, the Communists in Western Europe have sought to align themselves with the democratic left. In doing so, they have acknowledged the vitality of the anti-Commu- nist opposition in most of these countries and their own liability derived-from Soviet aggressive- ness during the Stalinist period. Communist adjustment to the concept of an East-West detente was evidently not easy. In some SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Page 3 of 12 25X1 Approved or R elease 200r-hA-RDP79-00900700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY countries there was confusion in the rank4 and in Italy and Rmnce particularly, there was renewed dissension within the party leader- ship over party poli- cies. The "class struggle" theme was re-emphasized, reflect ing not only a desire to reassert Communist leadership among the masses, but apparently some fear as well that the Communists might become engulfed by the non-Communist left. This pattern of strength and weakness reflects the extent to which Communism in Western Europe is in basic respects an in--- WESTERN EUROPE - COMMUNIST PARTY STRENGTH ESTIMATED PARTY MEMBERSHIP VOTE POLLED IN LAST GENERAL ELECTION FRANCE ITALY FINLAND ICELAND NETHERLANDS AUSTRIA NORWAY SWEDEN DENMARK BELGIUM 300,000 5,519,495 Percent of Total 1,800,000 6,120,709 22.6 40,000 417,000 21.7 1,000 12,422 16.5 40,000 328,571 6.1 40,000 228,228 5.2 8,000 90,422 5.1 30,000 164,000 4.3 16,000 93,824 4.3 14,000 184,098 3.5 607,000 2.2 33,144 .9 PARLIAMENTARY REPRESENTATION (Lower House) Communist Percent Date Seats of Total 1956 145a 24.4 1953 143b 24.2 1954 43c 21.5 1953 7 13.4 1952 6 8.0 1953 4 2.4 1953 3 2.0 1954 5 2.2 1953 8 4.4 1954 5 2.3 1955 4 2.0 1953 0 0 1955 0 0 a- Excluding 8 Progressist allies b- Excluding 75 Nenni Socialist allies c- Finnish People's Democratic League digenous problem. As adjuncts of the Communist Party of the Soviet Union, the European Com- munists appear to have been able to produce only limited support for the foreign policy goals of the Soviet Union and to gain only limited benefits from shifts in Soviet policy, even when these were in the direction of modera- tion. In those countries where the economic and social griev- ances of the people were exten- sive, the Communist menace re- mained a serious one. Where a vigorous and responsible non- Communist political leadership directed its efforts to redress these grievances, the Communist menace was weakened. During 1955, the French Communists stressed two major themes: that the progressive "pauperization of the working class" is the inevitable result of a capitalist society and that unity of action on the left is the best way to a."popular front," eventually to be led by the Communists. In both cases, the Commu- nists were seeking broad left- ist support to strengthen their position in the 1956 elections and to remove their party (PCF) from its isolation in the Nation- al Assembly and establish it as the champion of the French work- ing class. Although the "unity of action" theme had been stressed intermittently for some time, especially on the labor front, concentration on its political aspects came with Thorez' call in May 1955 for a renewal of "class war." The Communist-led General Labor Confederation (CGT) subsequently embarked on a broad, militant strike program, the early successes of which netted the PCF renewed prestige. This prestige was considerably dissi- pated, however, when in September the CGT rejected the generous con- cessions offered by the Renault management which were later ac- cepted by non-Communist labor elements. As the national elections approached, Thorez stepped up his drive to increase the 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART IIj PATTERNS AND PERSPECTIVES Page 4 of 12 Approved For Release 200 9ftE A-RDP79-00000700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY respectability of the PCF as a political party. This drive was aided when Premier Faure accepted Communist support in November In order to stay in power. Moreover, although So- cialist leadership prevailed, nearly 40 percent of the dele- gates at the late November So- cialist congress voted in favor of electoral alliances with the Communists. Communist expectations of gaining parliamentary seats from the split among the center parties were borne out by the election results. The party suffered only a fractional de- cline in its share of the total vote and its appeal as the in- strument of revolutionary change apparently remained intact. Having achieved an assembly representation roughly commen- surate with their electoral vote, the Communists are now in a strong position. So long as the center remains divided, Com- munist support of Mollet's Re- publican Front government allows the PCF to claim the de facto existence of a "popular front." At the same time, the party can press the Socialists, who vie for working-class support with the PCF, to undertake reforms which would split the Republican Front. Mollet has so far been little dependent on Communist votes because his economic measures have been too moderate to arouse widespread right-center opposition; but the Communists will probably try to force his hand by demanding broad wage hikes and more liberal social security payments. Italy. In Italy, where 143 Com- munist deputies and their 75 Nenni Socialist allies comprise one third of the lower house of parliament, the Communist Party (PCI) has been unable to block important government measures, and its prestige declined dur- ing 1955. In the midyear regional elections in Sicily, Communist votes were fewer than in the general elections in 1953. Communist domination of Italian labor also weakened in 1955, with Communist-affili- ated unions suffering losses averaging about 12 percent in the shop-steward elections. In many plants, notably the Fiat works, the Communists lost their majority, and de- fections from Communist-contlled unions were more frequent. The decline in Communist fortunes revived dissension within the Communist hierarchy. In January, Vice Secretary Pietro Secchia, a leading ad- vocate of a more militant policy, was demoted. Recently, there have.been new reports of P "bit- ter struggle" within the PCi and the Communist-dominated General Confederation of Labor, whose secretary general has long been considered "lukewarm" toward exploiting the confederation for purely political purposes. Communist leaders have reacted to these problems with evident confusion. Although the conciliatory policy long advocated by Togliatti continued to predominate in practice, the party also invoked the theme of class struggle, alleging that even in a period of international detente there was still a need to call for revolutions. While asking for a broad alliance, Commu- nist leaders also attacked Chris- tian Democrat "reformists" for trying to beat the Communists on their own ground by pressing for speedy action on the govern- ment's Vanoni plan and other socio-economic reform programs. The Vanoni plan does in fact offer some threat of divid- ing the Communists from their Nenni Socialist allies, for Nenni's endorsement of the plan in principle suggests that it would be difficult for him to SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Page 5 of 12 Approved For Release 20055:--RDP79-00000700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 oppose in practice measures which in the long run might deprive the Communists of the support they derive from the economic grievances of the pop- ulation. West Germany and Austria The Communists were clearly on the defensive in West Germany and Austria, where the anti-Com- munist left is strong, the right is united under vigorous leaders, and there is a painful aware- ness of Soviet imperialism and the rigors of Soviet army occu- pation. In West Germany, Communist policies were dominated by the expectation that the courts would soon announce in favor of the government's long-pendin suit 25X1 to outlaw the party. 25X1 percent since the state treaty was signed last June. Circulation of the party press has also declined, and in local and provincial elec- tions the Communist vote has dropped in some cases as much as 25 percent. The party has been undergoing an internal re- organization, and the Communist- front election alliance, the People's Opposition, has been dissolved. Only Communist strength in the former Soviet- controlled enterprises in east- ern Austria gives the govern- ment any real concern. Iceland and Finland By exploiting xenophobia, the ineffectiveness of the non- Communist left, and a precarious economic situation, the Ice- landic Communists have been able attain a unique position it northern Europe. The party is the third largest in the coun- try and, with the help of the left-wing Social Democrats, it gained control of the Icelandic Federation of Labor (IFL) in November 1954. In the meantime, overt ac- tivities of the party were de- voted to propaganda support of the Communist line on German reunification and to a vigor- ous effort to 1.nr.rease Communist influence in German -'.abor. The success of the Communists in fomenting strikes in Bremen and Hamburg and in electing an abso- lute majority to the works coun- cil of a large Ruhr steel plant in the fall spurred some unions to take direct action against Communist infiltration. In later elections, in the Bremen and Flensburg shipyards, Commu- nist losses were severe. 25X1 25X1 In Austria, the party seems to be fighting a losing battle in its efforts to retain the advantages it enjoyed under the occupation. the drop in party membership is as much as 50 Last spring, the Communists played a leading role in a six- week general strike, the infla- tionary results of which have placed a severe strain on the governing coalition of Conserva- tives and Progressives. Empha- sizing national issues and soft- pedaling their ties:. with Moscow, the Communists are now promot- ing a leftist coalition under the aegis of the IFL. They agi- tate particularly against the American troops stationed at the NATO air base of Keflavik. In Finland, however, the special considerations which enhanced the Communist cause in the immediate postwar period have largely ceased to obtain, and the party appears to have gained no significant strength as a result of the USSR's re- turn of the Porkkala naval base. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Page 6 of 12 Approved For Release 2005/ i-a- RDP79-0 000700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 The Communists poll about 20 percent of the popular vote, but this seems to reflect a good deal of protest as well as pro-Communist sentiment. They have been pushing hard for restoration of a common front with the Social Democrats and for representation in the govern- ment--proposals which are repeat- edly ignored. In the meantime, the Social Democrats are making progress in their efforts to reduce the strong minority which the Communists still have in the trade union-movement. Other Countries In the other Scandinavian countries, Britain and the Benelux countries, the Communist parties are all politically iso- lated and reduced to hard-core elements which try to infiltrate the ranks of labor, slavishly propagandize "favorable" turns in Soviet foreign policy and have difficulty in maintaining their party press. Both in Denmark and Sweden, there have been frequent reports of dissension among Communist leaders. The Swedish Communists have been unsuccessfully push- ing united front tactics since 1953, even admitting the needs at a December party convention of a "reasonable" military pro- gram in Sweden. Communist in- fluence in the unions is largely confined to the miners and forest workers in the north, construc- tion workers in Stockholm, and the ship and dockyard employees in Goteborg. In Norway, the Communists have had no success with united front tactics directed at the Labor Party, and in the October local elections the Communists received about the same share of the popular vote as in the 1953 national elections. The British Communist Party contested only 17 of the 630 parliamentary seats at stake in the 26 May general elections and won none, polling a total vote little greater than the party's estimated membership. Efforts to infiltrate the trade unions achieved their first noteworthy success in several years with the election last December of a Communist to the executive of the Amalgamated Engineering Union. Membership of the Belgian Communist Party has continued to decline, and the only Communist- dominated labor union in Bel- gium, the Syndicat Unique, dis- integrated last fall. Party membership in the Netherlands is stable at an estimated 40,000, and the Communist-controlled Unity Trade Union Central had no notable successes during 1955. The capabilities of the Swiss Communist Party, a negli- gible political force, remained stationary. On the Iberian Penin- sula, Communist organizations are illegal, are under strict sur- veillance, and have virtually no potential for subversive action among the anti-Communist popu- lations. Prospects In recent months, the Soviet Union itself has seemed to give increased recognition to the problems faced by the parties of Western Europe in their efforts to give effective local representation to the for- eign policy objectives of the USSR and at the same time gain an effective voice in the forma- tion of national policies. The direct overtures the Soviet Union has made to seven of the thirteen Socialist par- ties of Western Europe since last fall seem intended both to encourage Socialist support for the foreign policy views of Moscow on a variety of issues and to overcome the suspicion with which the European Social- ists have greeted local Commu- nist appeals for common fronts and election alliances. The doctrinal innovations proclaimed SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Page 7 of 12 Approved Frelease 2005/0?P k DP79-00700700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY at the 20th Party Congress of the Communist Party of the Soviet Union--the attacks on Stalinism and the proclamation of a parliamentary route to Com- munism--were directed also to these ends. It is too early to deter- mine the effectiveness of these maneuvers, although in come cases, the direct overtures to the Socialist parties have already been spurned. The attitude taken by the Council of the Socialist International at its 2-4 March meeting in Zurich suggests that many Western Socialists remain highly conscious of previous experience with united fronts both in their own countries and in Eastern. Europe immediately following the war. Moreover, the Communists themselves have historically found it difficult to cope with the tactical prob- lems of participating in a par- liamentary system which they are dedicated to destroy. MAO TSE-TUNG AND THE COLLECTIVE LEADERSHIP PRINCIPLE Mao Tse-tung and other Chinese Communist leaders have regularly endorsed the principle of "collective leadership," but Mao for many years has personally led the Chinese Communist Party and has personally controlled its policy-in a way not very different from Stalin's domina- tion of the USSR. Mao's per- sonal domination has been par- ticularly evident in the past year. Nevertheless.Mao's pro- gram in China--that is, the Chi- nese 'application" of Marxist- Leninist doctrine--has continued to be warmly praised by Soviet leaders. Moreover, Soviet par- ty leader Khrushchev's pragmat- ic approach to ideology suggests that he and Mao arc suited to work well with one another. The Chinese Communist Party has always been committed in theory to direction by party organizations rather than by a single leader. In fact, however, the party's early years were marked by a series of struggles between individual leaders, with Mao and Mao's policies emerging triumphant in 1935, at which time Mao's program was given Soviet blessing. Having risen to oower,much as Stalin did, Mao since 1935 has dominated his party much as Stalin con- trolled the Soviet party, al- though the Chinese leader has apparently relied more on per- suasion than on purges. Khrushchev and Mao Tse-tung at Peiping in October 1954 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Page 8 of 12 ? Approved Fq, RR1please 2005/02/10 : CIA-RDP79-009200700170001-8 } SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 Chinese Communist pronounce- ments endorsed the collective leadership principle, without great enthusiasm, during 1953 and 1954, and in 1954 Peiping carried on a mild campaign for the principle during the "party unity" drive. The reorganiza- tion of the government structure in the fall of 1954 indeed established the basis for a collective leadership in the government. Nevertheless Chi- nese pronouncements and Chinese practice continued to reflect the fact of Mao's domination. Since mid-1955 Mao has publicly and emphatically as- serted his personal leadership of the Chinese Communist Party, and, through the party, his control of the government. In this period Chinese Communist spokesmen have been eulogizing Mao in extreme terms much like those employed in 1953, when China was said to be entering "the. era of Mao Tse-tung." Special consideration for Mao has continued despite the strong reaffirmation of collective leadership and denunciation of "the cult of personality" at the Soviet party congress last month. In July 1955 Mao personally reversed a moderate line on the collectivization of agriculture, affirmed by the Chinese Commu- nist Party central committee and approved by the National People's Congress only a few days before Mao spoke. Mao,in calling for a rapid speed-up in agriculture, not only did not follow the collective leadership principle in so acting, but seemed unconcerned about making all other party leaders look foolish on this issue. Mao committed his own prestige so heavily as to suggest the possibility, for the first time, that a resounding failure of the line he had laid down might threaten his dominance of the party. Evidently unperturbed by this risk, Mao in November 1955 exhorted the All-China Federa- tion of Industry and Commerce, meeting at his instance, to carry out a commensurate speed- up in the socialization of in- dustry. The transformation of "capitalist" industry to joint state-private industry had moved only slowly in the 1949- 1955 period. Within two months of Mao's address, according to official pronouncements, private industry in major cities had been "transformed." In December 1955, Mao an- nounced flatly that the question of the tempo of socialization "has been settled," and in January 1956 he predicted that China's "socialist revolution" could be completed "in the main" in about three more years. Premier Chou En-lai, following up, said in January that "right- leaning conservatism" in regard to China's transition would be the "central question" for con- sideration by the Chinese Communist Party Congress later this year. "Peaceful" Transition Mao's theory that the transition in China will be "peaceful" in nature has been claimed by Peiping as another of Mao's "contributions" to Marxist-Leninist doctrine. In view of the current speed of agricultural socialization, which may encounter substantial resistance, there is some ques- tion as to whether the theory fits the facts. Nevertheless, a Peiping spokesman has recently asserted that the "peaceful" advance of Chinese capitalists to socialism is "something that has appeared for the first time in the world." Soviet Views Since Stalin's death, So- viet ideologists have at least in part accepted Chinese claims of Mao's eminence among living SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PATTERNS AND PERSPECTIVES Page 9 of 12 Approved For Release 2005 / -RDP79- A000700170001-8 %owe CURRENT INTELLIGENCE WEEKLY SUMMARY 8 March 1956 Communist greats by describing him as a "strong Marxist theo- retician" and his work as an "enrichment" of a major "con- tribution" to Marxist theory-- terms previously reserved for Lenin and Stalin. The recent Soviet party congress in effect no-t4 need this practice, by warmly praising Chinese "appli,- catioj,," of Marxist-Leninist doc- trine. Soviet leaders, how- ever, in line with their em- phasis on collective leadership, for the most part modified their praise of Mao by citing the Chinese Communist Party rather than Mao personally. Khrushchev in his report to the congress observed that the Chinese Communist Party, like other parties of the bloc, had demonstrated in its domestic program "creative Marxism in anti-on." Similarly, party secretary D. Ti Shepilov paid tribute co the Cninese for a "masterly application" of Marxist doctrine. The Chinese Communists have not set themselves up as original theorists on any queE.- tion more ambitious than that of the applicability of doctrine to backward "semicolonial" areas, such as China. They are evidently prepared to accept Khrushchev's revisions of Com- munist dogmas on the inevi- tability of war and the possi- bility of a peaceful "transition to socialism" in some countries. The Chinese Communist Party's official newspaper, People's Daily, has already endorsed rushchev's ideological points. Mao and Khrushchev While Khrushchev's newborn pretensions as a Communist theo- retician may in the long run tend to lessen Mao's eminence in the Communist world, Khrush- chev's approach to ideology suggests that he is the type of leader with whom Mao should be able to work very well for the time being. A milestone in Khrushchev's rise to power in the USSR seems to have been his trip to Peiping with Bulganin and Mikoyan in the fall of 1954, and he has consistently sup- ported and endorsed Mao's program in China. The Soviet leader seems to resemble Mao strongly in his willingness to readjust dogma to fit the changing needs of basic strategy. Moreover, both Khrushchev and Mao exhibit great self-confidence, a bold- ness of approach, a livelier literary style than is customary among Communists, and a willing- ness to engage occasionally in undignified personal behavior. While nothing concrete is known of their personal relationship, such evidence as there is of the men and their policies sug- gests a cordial one. Mao is expected to retain his authority in shaping Chinese Communist policy while contin- uing to reduce his role in routine party and government affairs. He will almost cer- tainly be re-elected, as the party's top leader at the 1956 party congress. Mao's frequent absences from the public eye during 1955 may be explained in part by a need for withdrawal to think and write on major policy matters. It also seems likely, as he is 62 and reported suffering from. a variety of ailments, that he is actually incapacitated from time to time. For example, in 1954 he was "on holiday" for three months, missed a major party conference, and reappeared looking thinner. West. 25X1 Should. he die in the near future, his power would probably pass to a collegium including Liu Shao-chi, who has seemed to be his most trusted lieutenant for many years, Premier Chou En- lai and Defense Minister Pena Teh-huai, both of whom have gained considerably in power in recent years, and a few other figures less -well known in the SECRET Approved PART III For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PATTERNS AND PERSPECTIVES Page 10 of 12 Approved For Release 2005/02LIDL P79-009200700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY JAPANESE INTEREST IN PROMOTING AN INDEPENDENT TAIWAN Japanese leaders have long maintained that the creation of two Chinas offers the only feasible solution for the pres- ent impasse over the inter- national status of Taiwan and Communist China. They are in- sistent that Taiwan must not fall into Communist hands. They fear this might occur sud- denly, because of a collapse of the Nationalist regime through demoralization or the death of Chiang Kai-shek. This apprehension and the conviction the an independent Taiwan would be the most favorable solution for Japanese interests are be- hind the inclination of Japanese leaders to favor a Taiwan in- dependence movement. Beginning of Movement Embittered by the Chinese Nationalist takeover at the end of World War II and the Chiang regime's maladministration, the Taiwanese openly revolted in February 1947. Many Taiwanese, including most intellectual and professional leaders, were killed, and the surviving lead- ers went abroad or underground to form an independence move- ment. The presence in nearby Japan of more than 40,000 Over- seas Chinese--19,000 of Taiwanese origin--as well as mutual eco- nomic and strategic interests, inevitably involved Japan in the Taiwan problem and made it an appropriate headquarters for the Taiwan independence move- ment. Although the movement's leaders preferred Nationalist to Communist domination, they continued to work for independ- ence, and by 1950 several organ- izations sponsoring Taiwan auton- omy had been formed in Japan. Of these groups, the Taiwan Democratic Independence Party, led by Thomas Liao (LIAO Wen-i), has emerged as the principal promoter of Taiwan independence in Japan Japanese Doubt It was apparent as soon as it had regained its independ- ence that Japan questioned the durability of the Chinese Nationalist government and the value of establishing relations with it. Some Japanese offi- cials alleged that American pressure compelled Tokyo to conclude a peace treaty with Taipei. The foreign minister at that time, Okazaki, pub- licly stated that Japan recog- nized Nationalist sovereignty only over territory controlled by Taipei. By 1952 the growing strength of the Taiwan independ- ence movement led American offi- cials in Tokyo to expect unoffi- cial Japanese support for the movement, official aid being barred by Tokyo's political commitments to the Nationalists. Japan Seeks Solution Japan's desire for rela- tions with Communist China, the growing assertion of independ- ence from the United States, and the awareness of the po- tential danger to Japan of the explosive situation in the Taiwan Strait are among the factors prompting Tokyo to seek a solution of the Taipei- Peiping impasse. Influential Japanese leaders have repeatedly sought to determine whether the recognition of two Chinas is to become American policy. They fear that both Washington and Tokyo will be caught short by an early collapse of the Chiang Kai-shek regime. A Foreign Ministry offi- cial asserted in mid-February that internal political dissen- sion and a, deterioriating inter- national position precluded the continuation of the present Na.- tiona.list leadership for more than two years. In early December 1955, Foreign Minister Shigemitsu SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Page 11 of 12 Approved For Release 2092(ftfIA-RDP79-00 000700170001-8 CURRENT INTELLIGENCE WEEKLY SUMMARY suggested to Ambassador Allison that a plebiscite be held on Taiwan which the foreign minis- ter believed would clearly show that the islanders rejected Communist rule. Shigemitsu stressed that the anticipated Taiwanese vote for autonomy would strengthen the free world's endeavor to prevent Taiwan from becoming Communist. Latest Moves Subsequent events empha- size the continued growth of Japanese interest in Taiwan independence. The Foreign Ministry in mid-February appar- ently leaked a. background paper "Analysis of China" in an effort to ascertain Washington policy, to influence that policy toward relaxing strategic trade con- trols against the mainland, and to persuade the United States to support Taiwan auton- omy. The Japanese government has rejected Chinese Nationalist requests to restrict the activ- ities of the Taiwan Democratic Independence Party (TDIP). On 1 September 1955, the TDIP had inaugurated a Provisional Na- tional Congress of Taiwan and on 28 February 1956 had formea a "Democratic Taiwan Government." In each case, the Japanese gov- ernment maintained there was no legal basis for it to take any action against the party. A Foreign Ministry official, did, however, call in its lead- er and told him "to take it easy." These actions and the recurrent approaches to Ameri- can representation by Japanese officials on the two Chinas problem and the status of Tai- wan suggest that the Japanese will continue to work for Tai- wan autonomy as the solution to this major Far East problem. 25X1 SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 PART III PATTERNS AND PERSPECTIVES Page 12 of 12 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700170001-8