CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A001000010001-1
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S
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39
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December 23, 2016
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June 19, 2012
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1
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Publication Date: 
September 27, 1956
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SUMMARY
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Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 -c CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY COPY NO. 16 OCI NO. 6113/56 27.September 1956 Np CHANGE IN CLASS. D CJ c As 50 GLAt5. CH?N E TO; KX,t AEV1EVV C?A1E: CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE CONFIDENTIA1 5 Yom" Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 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. Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 OF IMMEDIATE. INTEREST SUEZ DEVELOPMENTS . . . . . . . . . . . . . . . . . . . Page 1 As the UN Security Council prepares to debate the Suez issue, Britain and France seem assured of support from Australia and Belgium, but there is some doubt re- garding the attitudes of Peru, Cuba, and China. Iran, as spokesman for the Near East on the council, will probably follow a cautious course. Egypt is likely to receive full support from the USSR and probably from Yugoslavia. In Egypt, about half the old force of pilots continues to operate the canal with only minor interruptions. Israel's attack on Jordanian military positions southwest of Jerusalem on 25-26 September will probably be followed by a period of tension comparable to that which followed a similar raid against Egyptian forces in the Gaza strip just over a year ago. Neither side appears ready to expand this incident--or series of incidents--into an all-out war. NOTES AND COMMENTS Page 3 SOVIET POLICY SPLIT RUMORED OVER TITO AND SATELLITES .:t . . . . . . . . . . . . . . Page 1 As a result of Khrushchev's trip to Yugoslavia, reports have been circulating that the rapprochement with Tito and his influence in the Satellites have caused a rift in the Soviet leadership. It is probable that the consequences of recent "liberal" Soviet policies toward the Satellites and Yugoslavia are a cause of real concern to the Soviet leaders but that they have not led to a split among them. Khrushchev's return to the USSR on 27 September, accompanied by Tito, his wife, and Yugoslav vice premier Rankovic, indicates that discussions on Soviet-Yugoslav relations will continue. CONfyIAL THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 DIVERGENT SATELLITE ATTITUDES TOWARD THE USSR . . . . . . . .. . . . . . 000. , .0 Page 2 The frank and often critical treatment of the USSR in the Polish press is completely different from articles on the USSR appearing elsewhere in the Satellites.. While Polish papers are stressing the "independence of countries in the socialist camp" and playing down references to the USSR, articles in Albania and Czechoslovakia are virtually attacking the doctrine of "many roads to socialism" and are hailing close relations with the USSR as the indispensable foundation of the Satellite regimes. HUNGARIAN WRITERS DEMAND FREEDOM OF EXPRESSION . . . . . . . . . . . . . . . . . Page 3 Hungarian writers, who have spearheaded the drive for moderate policies, have resumed their offensive against the Communist regime following a two-month period of relative restraint. They met in Budapest in mid-September to rally support for their cause and to re-endorse as their leaders those individuals who have led them in their fight for freedom of expression. Although viewed with varying degrees of disapproval by government leaders, the writers' program is more apt to be met with compromise than with repression. CHINESE COMMUNIST STATEMENT ON GENEVA TALKS . . . . . . . In its fourth official statement this year on the Johnson-Wang talks at Geneva, Communist China on 21 September repeated previous warnings against "dragging out the talks." The tone of the statement was moderate, and Peiping's expression of its desire to move on to a new subject suggests that the Chi break off the talks at this time. Page 5 CHINESE COMMUNIST CONGRESS . . . .... ... . . . . . Page 6 Speeches at the Chinese Communist eighth. party congress, which was to end on 27 September, continued to place major emphasis on collective leadership and "democratic" m6thods at all levels. The special praise Mao Tse-tung received was extended, in some degree to Liu Shao-chi, who has apparently been chosen by Mao as the leader of the group that is to succeed him. fJDJJTIAL THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET r.r CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 CHOU EN-LAI PLANS MAJOR ASIAN TOUR . . . . . . . . . . . . . . . . . . . Page 7 Chinese Communist premier Chou En-lai will leave Peiping in late November for a tour through South and Southeast Asia which may take him to the capitals of ten Asian nations. Chou's general objective probably is to repeat his success at the Bandung conference of 1955 and renew the image he created then of Communist China as a peace-loving great power. Should President Somoza of Nicaragua die as a result of the assassination attempt of 21 September, a long period of political uncertainty and violence may follow. The National Guard, Nicaragua's only armed force, would be a decisive factor in the post-Somoza political scene, and the defense minister, Colonel Francisco Gaitan, would probably play a leading role. SOVIET BLOC CULTURAL CENTERS IN LATIN AMERICA . . . . . . Soviet bloc countries are having some success with cultural and friendship societies in Latin America. These organizations are important in providing means through which bloc contacts with Latin America may be expanded. .NEW POLITICAL CRISIS THREATENS IN PAKISTAN OVER SUEZ . . . . . . . . . . . Page 8 Page 10 Page 11 Pakistani president Mirza's desire to join the Suez Canal Users' Association and Prime Minister Suhrawardy's unwillingness to do so may result in a dispute between the two men which could end in Suhrawardy's dismissal or resignation. In this event, President Mirza would probably attempt to govern by direct rule. JAPANESE POLITICAL DISPUTES OVER RELATIONS WITH USSR . . . . . ... . . . . . . . . Page 12 A new series of political disputes has been touched off in Japan by Soviet premier Bulganin's ambiguous note of 14 September agreeing to resume negotiations on the basis of the Japanese "five-point" proposal. The anti-Hatoyama movement within the Liberal-Democratic Party is growing and some elements have threatened to split the party if the prime minister goea to Mnsnnw bef ore the Soviet position is clarified. SECRET iii THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET 1? CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 Page 13 S INGAPORE . . . . . . . . . . . . . . . . . . . . . . In the Singapore government's crackdown on Communist- front organizations, seven Communist-front leaders have been arrested and three organizations ordered dissolved. Caught off guard, the pro-Communist People's Action Party is reacting slowly and cautiously- h ere is a possibility of disorders. REUNIFICATION PROBLEMS OF THE ITALIAN SOCIALISTS .. . . . . . . . . . . . . . . Page 14 Major difficulties still block early reunification of the Socialists in Italy despite recent expressions of optimism by Democratic Socialist and Nenni Socialist spokesmen. Sentiment.for reunification seems to be strong among the rank and file of both parties. Moscow is taking a cautious attitude on the reunification move. 25X1 TURKISH PRIME MINISTER MOVES TO SUPPRESS OPPOSITION . . . . . . . . In the face of mounting economic difficulties, Turkish prime minister Menderes `"'h'as iristituted `ifl--r creasingly authoritarian measures rather than agree to economic reforms, He will probably be able to suppress opposition criticism as long as he has the support of his party and of the farmers. PROSPECT OF LABOR UNREST IN SPAIN . . . . . . . . . . . . . . . . Page 17 Spanish industrial workers may soon strike again in protest against inadequate wage boosts in the face of rising living costs. The government does not seem Pre- pared to offer the workers economic relief, 25X1 SECRET iv Page 13 Page 15 THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 PATTERNS AND PERSPECTIVES PROSPECTS FOR THE MOLLET GOVERNMENT . . . . . . . . . . Page 1 When the French National Assembly reconvenes on 2 October, Premier Mollet will face mounting political opposition as a result of growing frustration over the Suez crisis, the Algerian problem and domestic.inflation, Mollet will not take a merely defensive attitude toward these problems. He may in any event be overthrown in his attempts to deal with them. PROSPECTS FOR THE SOCIALIST PARTY OF JAPAN . The Japan Socialist Party has gained sufficient strength to worry seriously the dominant conservatives, but it is not expected to gain power in the near future. Although 'the party suffers from immaturity and faction- alism, its influence will affect Japan's domestic and foreign policies. It will continue to oppose many American objectives and push for greater "independence." Page 3 THE DE-STALINIZATION CAMPAIGN IN SOVIET GEORGIA. . . . . Page 7 In the face of the unexpected popular resentment in Georgia to the attack on Stalin at the 20th Soviet party congress, de-Stalinization was delayed there but has now begun in earnest. The effect of the incident on Georgian nationalism will probably color relations betwee cow government for years to come. SECRET THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET 27 September 1956 SUEZ DEVELOPMENTS As the UN Security Council prepares to debate the Suez issue, support of Britain and France from Australia and Bel- gium appears virtually certain, but there is some doubt re- garding the attitudes of Peru, Cuba, and China. Iran's posi- tion as spokesman for the Near East on the council will prob- ably lead it to take an ex- tremely cautious approach. Egypt, attending as an in- terested party, is likely to receive full support from the Soviet Union and probably Yugo- slavia. For the Soviet Union, the deliberations will serve as a propaganda forum for re- asserting the similarity of Soviet and Arab po'icies on colonial matters, and an op- portunity to draw out negotia- tions for a peaceful settle- ment on Egypt's terms. The USSR's position prob- ably will hew closely to the Soviet statement of 15 Septem- ber, defending nationalization of the canal and Egyptian com- petence to operate it and sup- porting Nasr's call for a 45- nation conference as a means of achieving a peaceful solu- tion to the problem. Moscow is likely to attack very strongly Western economic pres- sure on Egypt as economic sanc- tions without UN authorization. Moscow radio on 25 September stated that the Western appeal to the United Nations "is hard- ly likely to bring success." Through amendments voted on separately and possibly paragraph by paragraph, any resolution introduced by SECRET Britain and France maybe so modified as to compel them to vote against it themselves. Any amendment eschewing the use of force would be as dif- ficult to oppose as to defeat. Some elements in both Britain and France hope that an inconclusive UN debate will "prove" the necessity for more direct action. Despite this and recent minor additions to the military build-up, London and Paris probably do not in- tend the UN appeal to be merely a preliminary step to the ap- plication of military force against Egypt. While attention centers on the United Nations, Britain is proceeding with its plans to set up a Suez Canal Users' Association (SCUA) at meetings in London beginning on 1 Octo- ber. France's grudging ac- ceptance of the plan dramatized the widespread lack of enthu- siasm among the 18 London con- fereesfor the project that many had initially hoped would show the way to forcing a set- tlement on Egypt. Only seven have indicated they definitely will join: Britain, the United States, Italy, France, the Netherlands, Denmark, and Sweden. Accept- ances from six others--Austra- lia, New Zealand, West Germany, Portugal, Turkey and Norway-- are anticipated. Pakistani prime minister Suhrawardyj has told the Amer- ican ambassador in Karachi PART I OF IMMEDIATE INTEREST Page 1 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET %fts"Me CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 that Pakistan would not as- sociate with the users' as- sociation, and the ambassador believes that no pressure from the West or from President Mirza will change the prime minister's mind (see Part II, p.. 11).. Japan evidently in- tends to reject. membership. Of the remaining three, Iran is hesitant to align it- self publicly against Egypt. Spain's joining is doubtful, in view of its continued pressing of its own proposal for negotiations with Nasr. Ethiopia's position is uncer- tain. Even among those most favorable toward the users' association, little agreement on SCUA's precise function is evident. The 18-nation dis- cussions at London that'ended on 21 September showed far too great differences to support any such a firm plan as sending a test ship through the canal to try Nasr's intentions. Britain and France still seek an active role for the organ- ization. French and British Reactions Disillusion and discour- agement with the results of the second London conference have been most marked in France. Blame has fallen principally on the United States. Foreign Minister Pineau has reiterated that direct force is not ex- cluded. Premier Mollet will prob- ably be forced into a debate on Suez when the National As- sembly reconvenes on 2 October. The government will be sub- jected to bitter attacks as a result of the mounting opposi- tion to its Suez policy, conbined with frustration over the Algerian situation and domestic economic and social problems. (See Part III, p. 1.) In Britain, the turn of events has centered attention on conflicting pressures with- in the Conservative cabinet. There are no indications that Eden's hold on the party leader- ship has been shaken. The Con- servative Party conference on 11-13 October should give some indication of Eden's standing with the rank and file, and also the relative prestige of Chancellor of the Exchequer Macmillan and House of Com- mons leader Butler, respective champions of toughness and con- ciliation. Parliament recon- venes on 23 October. Egyptian Developments Egypt continues to main- tain canal operations without a major interruption. For the first time since the Western pilots walked out, three ships were held up for lack of pilots on 23 September when the high- est total of ships since the walkout--44--transited. Three convoys a day is likely to re- main standard procedure until more pilots are trained. About 100 pilots are now available--approximately half the number before nationaliza- tion. More than 40 new foreign pilots have arrived, including 15 from the Soviet Union, 12 from Poland, and 11 from Yugo- slavia. President Nasr sought to demonstrate solidarity within the Arab bloc by going to Dammam with Syrian president Quwatli for talks with King Saud of Saudi Arabia. The SECRET Deulr T OF IMMEDIATE INTEREST Page 2 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET 27 September 1956 25X1 25X1 25X1 25X1 Syrian and Saudi chiefs could hardly do less for Egypt at this time than the communique they issued reaffirming their support. Nasr evidently was concerned lest Saud?s preceding talks with King Faisal of Ira suggest Arab differences. Nehru?s statement criticizing Nasr's method of Suez nationalization almost certainly has also given the Egyptian president some worry. Numerous press reports and rumors of the presence of British and French military units in Israel reflect ex- treme Arab nervousness and suspicion--reinforced by re- cent Israeli raids on Jordan and the sale of Canadian-built jet fighters to Israel--that the West will take advantage of Egypt's preoccupation and move on the Arab states in concert with Israel. Sino-Soviet Support Apart from pilots, Egypt continues to receive economic support from the Soviet Union, Israel's attack on Jorda- nian military positions south- west of Jerusalem on 25-26 Sep- tember will probably be fol- lowed by a period of high ten- sion comparable to that which followed a similar raid against Egyptian forces in the Gaza strip just over a year ago. Neither side, however, appears ready to expand this incident-- and has had offers from Com- munist China. A delegation of Soviet cotton production spe- cialists arrived in Egypt on 19 September for a three-week visit. The group is led by Deputy Minister of Agriculture Rasulov, and, in addition to other high agricultural of- ficials, includes the minister of light industry of the Tadzhik Republic. Chou En-lai, in re- porting to the Standing Com- mittee of the National People's Congress, stated his govern- ment's complete support of the Egyptian position. Over the last two weeks, Soviet propaganda attacks on the American position on Suez have steadily increased, especially in broadcasts to the Arab states, which say the United States is no better than Britain and France, label as American all "colonial" plans, and claim that American policy is hostile to Egypt, the Arabs, and peace and security. A Pravda editorial on 24 Septem- er pointed to the "failure" of the London conference and called Western introduction of the Suez dispute into the United Nations another colonial maneuver. or series of incidents--into an all-out war. As: usual after the Israelis inflict a serious blow, Arab propaganda sought to minimize the political impact of the raid by asserting that Jorda- nian forces made a strong de- fense and were overrun only by "overwhelming" Israeli numbers. SECRET PART I OF IMMEDIATE INTEREST Page 3 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE 'WEEKLY SUMMARY 27 September 1956 It seems that in this case, at least, there may be some sub- stance to the claims. Israel reportedly suffered substantial losses, since its attack was launched against prepared positions in full moonlight, and because the Jordanians had anticipated that an Israeli reprisal would come despite Amman's apologetic assertion that "temporary in- sanity" seized a machine gunner who killed four Israeli archae- ologists two days before. With Egypt still preoc- cupied with the Suez situation, the Arab reaction is likely to be confined mainly to com- plaining and biding time, al- though there almost certainly will be further minor Jorda- nian incursions into Israel, either centrally directed or un- controlled by the Amman au- thorities. The initial attitude of Jordan's leaders was indicated by an appeal from Chief of Staff Nuwar, who stated short- ly after the Israeli attack began that unless it were stopped by morning there would be very serious consequences. These were not the words of a military leader seeking an op- portunity to attack the enemy. King Hussain's immediate reaction was to consult with Arab and Western diplomats, and to consider making a complaint to the UN Security Council. The effect of the Israeli raid is likely to be greatest on the internal situation in Jordan. It seems doubtful that Hussain will want to repeat on this occasion the tactic he adopted in regard to earlier Israeli actions--an appeal to the people for calm on the ground that Jordan should not let itself be drawn into an Israeli trap. Such an implicit confession of weakness would further erode his prestige, even if his opponents were unable to suggest a better course themselves. Hussain may, however, use the incident and the ensuing tension as an excuse to post- pone the parliamentary elec- tions scheduled for 21 October. Under present conditions, such elections would probably re- turn a majority of extremists indifferent or hostile to the monarchy. The king may also use the incident to justify a new flurry of visits to Arab countries with the object of establishing closer Arab unity and obtaining additional fi- nancial support for Jordan's military forces. SECRET 25X1 25X1 PART I OF IMMEDIATE INTEREST Page 4 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET N.....01 CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 NOTES AND COMMENTS SOVIET POLICY SPLIT RUMORED OVER TITO AND SATELLITES As a result of Khrushchev's trip to Yugoslavia, reports have been circulating that the rapprochement with Tito and his influence in the Satellites have caused a rift in the So- viet leadership. The American embassy in Belgrade, reports that a high Yugoslav official recently said that Khrushchev is "alone in the more liberal approach to Yugoslavia" and that the other Soviet leaders, includ- ing Bulganin and Mikoyan, would turn on him "at the first false step." Yugoslav vice president Vukma.novic-Tempo has also hint- ed that Khrushchev may be in trouble a This Yugoslav hypothesis argues that Khrushchev, having sponsored the rapprochement with Tito, now finds that Tito, is endangering the Soviet sys- tem of making trouble in the Satellites, and went to Yugo- slavia to get Tito to "call off the dogs." It is likely that the consequences of recent Soviet policy toward the Satellites and Yugoslavia. are causing varying degrees of concern to all Soviet leaders. Tito's continued pressure for lib- eralization in the Satellites and the results of some of the liberal policies already being enacted in Eastern Europe may have forced the Soviet leaders to decide to toughen up. Khrushchev's return to the USSR on 27 September, accompanied by Tito, his wife, and Yugoslav vice premier Rankovic,, prob- ably indicates that discussions on Soviet Yugoslav relations will continue. Split Improbable It is probably incorrect, however, to presume that Khrushchev stands alone as the SECRET neo-r T T urnm'c A?Zn nnUU1VWne Dnern 1 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET - .. CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 champion of a more liberal poli- cy toward Yugoslavia. Bulganin and Mikoya.n--particularly the latter--have been at least as prominently associated with Soviet policy toward Yugoslavia as Khrushchev. Also, the de- cision taken last year to at- tempt to re-establish a close relationship with Yugoslavia was probably agreed on by a majority of the Soviet leaders. Khrushchev, Bulganin and Mikoyan are'probably the most powerful in the hierarchy and their alliance has shown no sign of being disrupted. Molo- tov, considering his present position, seems incapable of DIVERGENT SATELLITE ATTITUDES TOWARD THE USSR The remarkably frank and sometimes critical treatment of the USSR in the Polish press is completely different from articles on the USSR appearing elsewhere in the Satellites. While Polish papers are stress- ing the "independence of coun- tries in the socialist camp" and playing down references to the USSR, articles in Albania and Czechoslovakia are virtually attacking the doctrine of "many roads to socialism" and are hailing close relations with the USSR as the indispensable foundations of the Satellite regimes. Poland According to at least one Polish author, writing this month in testimony to Polish- Soviet Friendship Month, Polish relations with'the USSR "are only being formed" and have as yet to "find their equilibrium." The same.writer suggests that the "tragic element of truth" heading an effective opposition to Khrushchev. Khrushchev's successful "packing" of the cen- tral committee last February also militates against the chances of a leadership upheaval. Finally, it is unlikely that the figures most intimately concerned would be away from Mos- cow if, in fact, a major split did exist in the leadership over the Yugoslav issue. Khrushchev, however, was on vacation for more than two weeks before he left for Belgrade. Bulganin has been vacationing in the Caucasus since 1 September. Mikoyan was away between 14 and 24 September as the leader of the Soviet dele- gation to Peiping. about Soviet-Polish relations during the war has been con- cealed and that the full story should now be told. A Polish radio commentator, speaking to a domestic audience on 19 September, stated that the appearance of critical comments "shows the evolution of our friendship with the USSR--from sugar-coated, lacquered glorious descriptions of everything that was Soviet to the present sober evaluations." Admitting that the present period of franker discussion of the USSR is caus- ing "considerable difficulties" because of "conservative" oppo- sition both in Poland and in the USSR, the same speaker nevertheless claimed that the "new atmosphere is spreading with varying speed" throughout the bloc. Other Satellites This new atmosphere, how- ever, has been rejected by at SECRET PART II NOTES AND COMMENTS Page 2 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 least two other members of the bloc--Albania and Czechoslovakia. An Albanian editorial, on the occasion of Albania's Soviet Friendship Month, claimed that "only the enemies of socialism" try to deny the international importance of the USSR. The Albanian party has "always based its activities on the valuable and tested experience of the Soviet Communist Party." The Czech party daily, Rude Pravo, took a similar line on September. The Czech re- gime, the paper declared, is based on its alliance with the USSR; consequently, attitudes toward the USSR are not a fit subject for discussion. Every "slander" against the Soviet Union is aimed against the very existence of Czechoslovakia. All of these statements were made after 3 September, when the USSR reportedly warned the Satellites that the Soviet Union, not Yugoslavia, was the correct socialist model and attacked the Yugoslav concept of genuinely "independent roads to socialism." The reaction in Albania and Czechoslovakia, apparently to this warning, re- flects loyal, unquestioning subservience to the latest line from Moscow. Irritation Over Warning The statements by the Poles, on the other hand, are very HUNGARIAN WRITERS DEMAiID FREEDOM OF EXPRESSION Hungarian writers who have spearheaded the drive for moder- ate policies have resumed their offensive against the Communist regime, following a two-month period of relative restraint. They met in Budapest in mid- much in line with their apparent irritation over an earlier Soviet warning, delivered by Bulganin in Warsaw last July, about the limits of de-Stalinization and freedom from Soviet control. The chief of the Polish parlia- mentary delegation in Yugoslavia, for example, declared on 20 September that what had struck him most during his visit was the Yugoslav "independence of views" and a "boldness for in- dependent experimenting in building socialism." A great many Polish Com- munist officials apparently see a real need for a modifica- tion of Polish-Soviet relations, within the framework of an al- liance with the USSR. They seem bent on gaining this, re- gardless of the attitudes in the other Satellites and re- gardless of signs of disapproval from Moscow. Specific official statements concerning Soviet-Satellite re- lations have not been observed in recent weeks from Hungary, East Germany, Rumania and Bul- garia. On the basis of their over-all policies, however, it is likely that Hungary will avoid statements of implicit subservience to the USSR, while the other three countries can be expected to echo the senti- ments expressed by Albania and Czechoslovakia. September to rally support for their cause and to re-endorse as their leaders those individ- uals who have led them in their fight for freedom of expression. Although viewed with varying degrees of disapproval from SECRET PART II NOTES AND COMMENTS Page 3 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September. 1956 within the regime, the writers' program is more apt to be met with compromise than with re- pression. Renewed Attack The uneasy cease-fire dur- ing the first weeks of the Gero regime between the government and the writers, who play a strong political role in Com- munist nations, was brought to a dramatic close on 8 September by Gyula Hay, a leading Hun- garian Communist writer. Hay, in a magazine article, demanded complete freedom of expression for "both Marxists and non- Marxists, the right to believe in God or not to believe in God, the right to criticize anybody or anything, and to like or not to like any of Hungary's leaders." Hay's posi? tion was democratic in tone and concept and, in, effect, rep- resents a public denial of Communist omnipotence. This attack, described by the American legation in Buda- pest as the clearest challenge to Communism yet publicized, set the stage for the general meeting of the Hungarian Writ- ers' Association which opened on 17 September. Speaker after speaker, inspired by Hay's words and angered by two antag- onistic Szabad Nep editorials on the eve of the meeting, in- dulged in defiant speeches against Hungarian regime poli- cies and regime "reactionaries." The writers, as a body, vigorously re-endorsed their leadership and also elected to high office in their associa- tion a number of members who had been censured for "anti- party" views during Rakosi's tenure in office. Hay was elected vice president and several non-Communist writers were elected to the presidium. The writers repeatedly asserted their unwillingness to compromise on any points. As one writer stated, "We can- not enter into a 'gentlemen's agreement' with anybody, we must go straight to our goal." As a group, the writers appeared sensitive to the fact that some of their attitudes are known only in literary cir- cles and hence do not have wide- spread popular support. To rectify this, one literary leader proposed that groups of writers visit factories to en- sure that their point of view is received by working groups. Party Reaction Since Rakosi's ouster, the new party leadership, headed by doctrinaire party first secre- tary Gero but including a num- ber of moderate Communists, has moved steadily toward moderate domestic policies, including a significantly more concessionary attitude toward the intellec- tuals. Reaction within the party, however, to the present sweep- ing demands of the writers will be mixed. The natural response of party first secretary Gero, who personifies the doctrinaires, presumably would be to resist. The regime as a whole, however, which includes a significant number of party moderates, ap- pears to have little inclina- tion to crack down on the writers for their beliefs at this time and may grant added concessions in an effort to appease the in- telligentsia. But the "moderate" forces in the party are not unanimous in their views. One group, in- cluding a significant number of party intellectuals and activists who support former premier Imre Nagy, is undoubt- edly sympathetic to and active in support of the demands of the writers. SECRET PART II NOTES AND COMMENTS Page 4 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 4 ? Jc4ItG i 27 September 1956 But other "moderate" ele- ments in the party who are willing to permit the natural development of political and intellectual endeavor within certain. limits may object to at least some of Hay's demands. Members of this group are sufficiently good Communists to reject proposals which pose a direct challenge to the prin- ciples of party discipline and, in effect, the primacy of the party in society. In addition, this group, which may include politburo members Szalai, Kovacs and Kadar, may be wary of a too rapid liberalization of policy lest the domestic situation get out of control and lead the Soviet Union to interfere. Soviet Attitude Soviet leaders undoubtedly recognize the risk involved in giving the Hungarian writers free rein to work out their own ideological standpoint and are aware that a mere "braking action" will not be enough to forestall demands for increas- 25X1 there is no Soviet inter- vention at this time, it might indicate that the USSR has ac- cepted a further gradual liber- alization in Hungary and that justment. the point has not yet been reached--nor been defined-- where the USSR will attempt to call a halt in this read- CHINESE COMMUNIST STATEMENT ON GENEVA TALKS In its fourth official statement this year on the Johnson-Wang talks at Geneva, Communist China indicated on 21 September that it regards further discussion of the US proposal on a renunciation of force in the Taiwan area as fruitless and repeated previous warnings against "dragging out the talks." The tone of the statement was moderate, however, and Peiping's expression of its desire to move on to a new sub- ject suggests that the Chinese do not intend to break off the talks at this time. The Chinese comments on the renunciation-of-force ques- tion indicate that Peiping will not agree to any declaration which might compromise its position that the "liberation" of Taiwan is an internal problem to be settled by peaceful means if possible, but by force if necessary. Peiping evidently expects no concessions from the United States on this question, and believes that continued exploration of the issue will yield no further propaganda advantage. Peiping charges that al- though the Communists have "time and again" put forward propos- als for the peaceful settle- ment of disputes--including a conference of foreign ministers --the United States has made agreement impossible by per- sisting in its demands for a declaration on the renunciation of force which would infringe on China's "sovereignty." In order that the Geneva meetings may not be further "dragged out meaninglessly," the Chinese SECRET PART II NOTES AND COMMENTS Page 5 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 on to the question of the "em- bargo." Peiping apparently considers that this issue could be exploited to embarrass Washington in the light of pres- ent pressure from many free world nations for a relaxation of trade controls. Despite its charges of American intransigence at Gene- va, the Chinese statement is couched in moderate language and leaves the door open for further discussions. This, plus the lack of a propaganda build-up for a breakoff in the talks, makes it unlikely that the Chinese plan to end the meetings at this time. Nor does it seem probable that the new line adopted at Geneva pre- sages moves to increase tension in the Taiwan Straits. The "liberation" of Taiwan has CHINESE COMMUNIST CONGRESS Speeches at the Chinese Communist eighth party congress, which was to end on 27 Septem- ber after election of a 170-man central committee, continued to place major emphasis on collective leadership and "demo- cratic" methods at all levels. Mao Tse-tung still received special praise, and Liu Shao- chi was included in this treat- ment to some extent. Collective Leadership Further changes in the organization and operation of the party have been disclosed which appear designed to en- hance the "democratic" features of party life. Under the new party constitution, national, provincial and county congress- es, whose members will be elect- ed for terms of five, three and two years respectively, will meet annually. Peiping Peiping's statement makes no mention of the ten American prisoners still held in Commu- nist China. The only prison- ers freed thus far in 1956 were released after the expiration of their sentences. If the Chinese continue this practice, which suggests they still re- gard the prisoners as having some value as hostages, no fur- ther releases can be expected until 1957, when the sentences of four imprisoned missionaries expire. 25X1 received little attention dur- ing the Chinese Communist eighth party congress. Mao Tse-tung ignored the subject, and other officials referred to Taiwan only in passing and continued the "soft" approach which Pei- ping has taken to the problem for the past 18 months. claims that these congresses will constitute an annual check on the work of the central, provincial and county party committees. The party intends to es- tablish more organs under the central committee. This ap- parently includes the resur- rection of military, women's and youth affairs committees, all of which are primarily con- cerned with supervising party control in these areas. Party Control The speech of Defense Minis- ter Peng Te-hua.i placed de- tailed. emphasis on the leading role which the party plays in making military policy. Peng specified that all "important matters" are discussed at party committee meetings, and that decisions are transmitted to military commanders. SECRET PART II NOTES AND COMMENTS Page 6 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 Peng's speech confirmed that in the Chinese Communist system, party committees at all military levels are superior to both the military commanders and the political officers. As the political officer is usually the head of the party committee, in most cases the political of- ficer is more powerful than the commander. While hailing China's re- cent strides toward increased modernization of the armed forces, Peng referred only once to his air force--fourth largest in the world--declaring that it is "no longer a very weak one." Chinese air defense forces, which have consistently demon- strated general ineptness, were said by Peng to have received "modern technical equipment," but Peng made no claim of air defense capability. Both Liu Shao-chi and Teng Hsiao-ping stressed the need for party control of gov- ernment affairs, which are directed by Premier Chou En-7,ai. Teng stated that party members in government organs must obey the party, and that the party must regularly discuss and decide all policy and impor- tant organizational matters relating to government work. He also said the party must exercise regular supervision over the work of government organs and that no comrades should be permitted to make their own departments into "in- dependent states." Treatment of Mao and Liu Chairman Mao Tse-tung continues to be the subject of laudatory references. The party's successes are attrib- uted "particularly" to Mao, although Peiping's comment por- trays Mao as a modest personal- ity.. Teng said that Mao him- self was responsible for pro- hibiting the offering of birth- day greetings to party leaders and the use of their names for places, streets and enterprises. Liu Shao-chi is now being accorded a small share of the special propaganda treatment previously reserved exclusively for Mao. Teng Hsiao-ping de- scribed Liu's report to the seventh congress in 1945 as being, like Mao's report, a "brilliant elucidation" of doctrine. Peiping radio has described a new Chinese Commu- nist film as depicting the caves where "Mao Tse-tung, Liu Shao- chi and other leaders" lived during Yenan days. This line supports other evidence that Mao has chosen Liu as the leader of a collective to suc- ceed Mao. CHOU EN-LAI PLANS MAJOR ASIAN TOUR Chinese Communist premier Chou En-tai will leave Peiping in late November for a tour through South and Southeast Asia which may take him to the capitals of ten Asian nations. Chou's general objective prob- ably is to repeat his success at the Bandung conference of 1955 and refurbish the image he created then of Communist China as a "peace-loving" great power. He will undertake ne- gotiation of the Sino-Burmese boundary dispute while in Ran- goon. Chou's itinerary apparently is not yet firm, but he reportedly SECRET PART II NOTES AND COMMENTS Page 7 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET 27 September 1956 plans to visit North Vietnam, Cambodia, Burma, India, Pakistan and possibly Indonesia, Ceylon, Nepal and Afghanistan. Sou- vanna Phouma has denied inviting Chou to visit Laos but has in- dicated that if he sought an invitation, it could not be re- fused. Chou is tentatively sched- uled to arrive in Cambodia in' late November, which suggests that the first leg of the tour will cover North Vietnam, Laos and Cambodia, where Peiping has apparently been working to es- tablish a "southern tier." A dramatic final settlement of the Pathet Lao insurrection could spell success for this venture.. Pathet strength derives directly from the Viet Minh and indirect- ly from Communist China. Chou may thus be in a position to arrange a final settlement. In Cambodia, where a Chinese eco- nomic aid mission is momentarily expected, Chou will meet once again with Prince Sihanouk, who took over as premier on 15 Sep- tember, and may take this oppor- tunity to press for formal Should President Anastasio Somoza of Nicaragua die as a result of the 21 September as- sassihation attempt, a period of political uncertainty and violence may ensue. The Nica- raguan strong man, who has been dictator since 1934, was shot only a few hours after being acclaimed Liberal Party candi- date for the 1957 to 1963 presi- dential term. If he lives, his victory in a controlled."elec- tion" next February is virtually assured. Even then, however, diplomatic relations with Cam- bodia. While in New Delhi, Chou will probably seek to smooth over points of friction. which have developed along the Sino- Indian border and to reassure Nehru concerning Chinese Com- munist efforts to establish closer relations with Nepal. At the same time, Chou will probably try to undercut pos- sible Indian support for Burma in the Sino-Burmese.boundary dispute. The main item of business during Chou's visit to Rangoon will be the boundary question. Chou will need all his skill as a negotiator to quiet Ran- goon's outcries--which jeopard- ize Communist China's pose as a "peaceful" power--while tem- porizing on substantive issues. In the remaining countries on his itinerary, Chou will probably concentrate on genera- ting good will and persuading Asian leaders that he is a "man of peace." he would face continued and possibly heightened domestic opposition. If he is incapaci- tated and retains his mental faculties, he is likely to continue his domination of the Nicaraguan political scene. The president's elder son, Luis, who is president of con- gress, is Somoza's constitutional successor and now acting presi- dent. The younger son, Anas- tasio, Jr. ("Tachito"), is di- rector of the national guard SECRET PART II NOTES AND COMMENTS Page 8 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET 27 September 1956 and chief of the air force. Together, the two brothers can probably hold the fort for their father if he lives. Somoza, who is in a Panama Canal Zone hospital, can constitutionally continue as president for up to three months as long as he remains somewhere in Central America or Panama. If Somoza dies, any at- tempt to maintain the regime by force alone would lead to serious violence. A solution offering the best chance of political sta- bility would be agreement on a new government among the op- posing political factions. Such an agreement would be pos- sible, since the most irrecon- cilable issue--Somoza's dicta- torship--would no longer exist. There are prominent members of Somoza's Liberal Party, among them Luis Manuel Debayle and Alejandro Abaunza Espinosa, who opposition Conservative Party leaders have previously indi- cated would be acceptable as a compromise for president. Such an agreement would prob- ably require the postponement of the February election and guarantees of free elections later. A political solution ac- ceptable to the national guard would almost certainly have to include the replacement of the 32-year-old "Tachito" as head of the guard. He is hated by many officers and known for his cruelty and impulsiveness. Luis Somoza, an easygoing gentleman farmer of 34, might be more pliant. However, the actions of the Somoza brothers will be dictated by their esti- mate as to how they can best protect the tremendous wealth amassed by their father. would be a decisive factor, if not directly, then. as a behind- the-scenes political referee. The minister of defense, Colonel Francisco Gaitan, a stanch friend of the United States who came up through the ranks and enjoys wide popularity in the guard, would probably be able to con- trol the guard. If political leaders are unable to reach an acceptable solution on a post- Somoza government, or if "Tachi- to" attempts to act independent- ly, guard leaders would probably assume direct control of the government. The danger of violence will be heightened if the re- gime carries out widespread reprisals against the opposition. Although most present evi- dence suggests that Somoza's attacker acted on his own, the Somoza brothers seem to be try- ing to implicate Conservative leaders or Somoza's enemies in 25X1 exile. Over 200 opposition leaders were arrested within hours of the attack and are now undergoing interrogation It is still possible that evidence may be found--or manu- factured--to link the assassi- nation attempt with Nicaraguan exiles in Costa Rica and, through them, with Costa Rican presi- dent Figueres. If so, the Nic- caraguan government could be expected to react strongly, possibly to the extent of in- stigating an assassination tempt against Figueres. The position of the 3,500- nian national guard, Nicaragua's well-trained and efficient army, SECRET PART II NOTES AND COMMENTS Page 9 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 27 September 1956 SOVIET BLOC CULTURAL CENTERS IN LATIN AMERICA Soviet bloc countries are having some success with cul- tural and friendship societies in Latin America. These organ- izations are important in pro- viding means through which bloc contacts may be expanded. The centers have increased in num- ber during the past year or so and several have become more active. The greatest activity has taken place in Argentina, where the Argentine-Soviet Institute of Cultural Relations has opened even new branches outside Buenos Aires, bringing the to- tal of such branches to 11. The institute's lecture program has been intensified this year, and its showings of Soviet bloc films reportedly have increased in a number of cities in the interior. New bloc binational centers reportedly have opened in Mexico and Brazil in 1956. Soviet cultural so- ciety VOKS, and a VOKS delegation the exploitation of returning travelers. In Chile, for in- stance, the Chilean- Chinese Institute of Culture played an active role in the entry of the Chinese Communist opera troupe last August. A group from the Argentine-Soviet In- stitute traveled to Moscow in April at the invitation of the In addition to publishing and distributing a variety of Communist propaganda, part of which comes from bloc nations and missions, and offering cultural attractions, the cen- ters are engaged in the promo- tirn of cultural exchange visits with bloc countries and reportedly attended the insti- tute's national conference in Cordoba. The centers apparently have been involved in the bloc repatriation program in Uruguay and Argentina. Most repatriates from Uruguay during 1956 re- portedly came from an area where the Soviet legation and the Uruguayan-Soviet Cultural In- stitute had been conducting a campaign. The institute in Argentina probably has facili- tated the large-scale re atria- tion effort there. Many of the centers main- tain close ties with Soviet and Satellite diplomatic missions, which participate in the cul- tural programs and probably give at least some direction to cen- ter activities. Presumably the centers receive financial sup- port from the bloc, although some apparently operate on insufficient funds. Chile is the only one of these countries which has bloc LOCATION OF BINATIONAL CULTURAL AND FRIENDSHIP CENTERS IN LATIN AMERICA Argentina Uruguay Bolivia Brazil Chile Mexico " USSR i~1ilE5 Czechoslovakia Poland Rumania Hungary Bulgaria Communist China SECRET PART II NOTES AND COMMENTS Page 10 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 25X1 25X1 cultural centers and does not have relations with any Commu- nist country. NEW POLITICAL CRISIS THREATENS IN PAKISTAN OVER SUEZ Pakistani president Mirza's desire to join the Suez Canal Users' Association and Prime Minister Suhrawardy's unwill- ingness to do so may result in a dispute between the two men which could end in Suh- rawardy's dismissal or resigna- tion. Mirza only reluctantly accepted Suhrawardy as prime minister. He has several times indicated his intentions to get rid of him if he fails to support a pro-Western policy. Mirza. seems inclined to press Suhrawardy to join the users' association and might take this opportunity to take drastic ac- tion against Suhrawardy. Suhrawardy's government has already publicly opposed the users' association. Suhrawardy has also told the American am- bassador that while he did not denounce it during the second London conference to avoid embarrassing Pakistan's West- ern allies--his country would not associate-itself with the association under any circum- stances. the new prime minister faces a particularly tricky problem on Suez, His pre- decessor, Chaudhri Mohammad Ali, was shouted off the platform at a public meeting a. month ago be- cause of Pakistan's pro-Western policy on Suez, and popular pro- Egyptian opinion has mounted since then. Suhrawardy probably feels that if he gives in to Mirza and the West on the users' association, he will lose his popular support and become just another one of Pakistan's "pup- pet prime ministers." Conse- quently, if Mirza forces the issue, Subrawardy may resign instead of forcing Mirza to dismiss him. Since the Suhrawardy government constitutes the only representative political grouping now available in Paki- stan, his downfall would prob- ably mean the establishment of direct rule by Mirza with the backing of the army and civil service. SECRET PART II NOTES AND COMMENTS Page 11 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET --r CURRENT INTELLIGENCE 'WEEKLY SUMMARY 27 September 1956 JAPANESE POLITICAL DISPUTES OVER RELATIONS WITH USSR A new series of disputes and maneuvers among Japanese government and conservative party leaders has been touched off by Soviet premier Bulganin's ambiguously worded note to Japan's prime minister Hato- yama on 14 September that the USSR is willing to use Japan's "five points" as a basis for the normalization of relations. While a special emissary is now in Moscow to clarify the Soviet position, Japanese press and business community criticism of the Hatoyama government's ineptness has been mounting, and former prime minister Yoshida's followers are threat- ening to split the ruling Liberal-Democratic Party if Hatoyama goes to Moscow as planned in early October. The Japanese five-point' proposal envisaged an agreement calling for the termination of the state of war, an exchange of ambassadors, the immediate repatriation of Japanese detain- ees in the USSR, implementation of the fishery agreements, and the USSR's unconditional support for Japan's admission to the United Nations. Japan also wants to continue the negotia- tions for the return of the Southern Kurils and to have Shikotan and the Habomai Is- lands turned back immediately. Official Japanese reaction to Bulganin's letter is that the Soviet position is too vague. It apparently made no mention of the territorial is- sues and, moreover, did not give assurance that the USSR is ready to drop its insistence on the simultaneous accession of Japan and Outer Mongolia to the United Nations. On 21 September, Special Ambassador Shunichi Matsumoto was sent to Moscow to determine the Soviet position on these points. Business leaders who fi- nance the Liberal-Democratic Party have become impatient with the government's inability to conclude the negotiations with the USSR successfully. They regard Hatoyama's weak leadership as the primary diffi- culty and have demanded that he retire before further negotia- tions are undertaken. The Japanese press, which earlier had been instrumental in forcing the government to stop Foreign Minister Shigemit- su from signing away the disputed islands, now has objected to Hatoyama's trip until the So- viet position is clear and in agreement with Japanese demands. The press seems fearful that Hatoyama, given any room for negotiation, will be inveigled by the USSR into selling out Japanese interests. The anti-Hatoyama movement within the Liberal-Democratic Party is gaining strength, and 224 of 423 party members in both houses of the Diet have support- ed the formation of the "Situa- tion Discussion Council," which has the avowed purpose of pre- venting Hatoyama's trip to Mos- cow and forcing his retirement. Hatoyama continues determined to make the trip and fulfill his February 1955 election pledge the USSR. to normalize relations with SECRET PART II NOTES AND COMMENTS Page 12 of17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 The Singapore government's move to suppress Communist ac- tivity in the British crown colony, which began on 18 Sep- tember, was well planned and deliberately executed. In the initial action, seven Communist- front leaders were arrested and three organizations ordered dissolved. One of the groups was the 3,000-member Chinese Middle School Students' Union, prob- ably the most thoroughly in- doctrinated front in the colony. It was banned on the grounds that although it had registered as a nonpolitical organization, it had "persistently flouted" its pledge to abstain from political activity. Chief Minister Lim Yew Hock says he intends to press his challenge and to eliminate SECRET as an effective political force the pro-Communist People's Ac- tion Party. The Action Party has been the most vigorous political party in Singapore and the chief co-ordinating body for Communist activity. Lim set the stage for his crack- down on 6 September when he demanded a vote of confidence from the Legislative Assembly for his government's entire program, which specifically in- cluded the antisubversion cam- paign. With attention centering primarily on the negotiations with London for more independence, he won a unanimous vote of con- fidence and has since rejected a demand by the People's Ac- tion Party for a special as- sembly debate on the arrests, claiming that he already has clear-cut support for his actions. PART II NOTES AND COMMENTS Page 13 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 The People's Action Party and its affiliates were caught off guard by the government's sudden moves. Reaction so far has involved a one-hour pro- test strike by the leftist Fac- tory and Shopworkers' Union on 24 September and a "stay-at- school" strike by nearly 1,000 Chinese students. Left-wing unions have threatened to use a "peaceful secret weapon," and various front organizations have ac- cused the government of arrest- ing "ardent" independence sup- porters and of being led by "colonialist stooges." The People's Action Party has pub- licly limited itself to a statement that the government's action was "sudden and arbi- trary," giving rise to "grave concern," and that the party would investigate the matter and "pursue it to the end." Although at the moment it appears. unlikely that the Peo- ple's Action Party will risk a major showdown, the possibil- ity exists that it might mo- bilize large-scale disorders in an effort to discredit Lim. The chief minister has publicly stated, however, that any un- lawful activities by the Com- munists would be "ruthlessly wiped out." ical suicide. since to do so would be polit- . Two members of Lim's gov- ernment have informed American officials that the action taken to date is "only the beginning," and other moves will follow shortly to keep the Communists off balance. They emphasized that there is no turning. back 25X1 REUNIFICATION PROBLEMS OF THE ITALIAN SOCIALISTS Major difficulties still are likely to block early re- unification of the Socialists in Italy, despite recent public expressions of optimism by spokesmen of both the Democrat- ic .Socialist Party and the Nenni Socialists. The chief obstacles to the creation of a unified party are trade union problems, the Nenni Socialists' undemocratic internal organization, and their strong pro-Communist faction,, The merger outlook is further complicated by re- ported opposition from the Nenni Socialist left wing in the face of the apparently favorable attitude of the Ital- ian Communists. Both Socialist parties call for a single labor union free from domination by any political SECRET party, but the Nenni Socialists endorse the Communist-controlled General Confederation of Labor as the basis for unity in the trade unions. The Democratic Socialists, however, seem in- clined to compromise by post- poning this issue. In an obvious bid for Socialist: support, Giuseppe di Vittorio, the General Labor Confederation's secretary gener- al, declared in August his organization would be apoliti- cal. According to a rumor re- ported in the Italian press of 25 September, Di Vittorio may announce his resignation as president of the Communist- dominated World Federation of Trade Unions at that organiza- tion's congress now meeting in Sofia.. Such a move could be a Communist tactic to make the General Labor Confederation PART II NOTES AND COMMENTS Page 14 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET 27 September 1956 more attractive to the free trade unions by appearing to weaken its connection with the world federation. Nenni Socialist leadership is already insisting that a united Socialist Party reject any discrimination against Commu- nists, beginning with employ- ment in public administration. TURKISH PRIME MINISTER MOVES TO SUPPRESS OPPOSITION In the face of mounting economic difficulties, Prime Minister Menderes has insti- tuted increasingly authoritarian measures rather than agree to economic reforms. He will and Pravda on 13 September 25X1 carried summaries of a speech by Togliatti in which he said the Communists could not be op- posed to a restoration of Socialist unity, but warned that enemies of the working class were trying to win over the Socialists to the anti-Communist front. Moscow thus appears to be endorsing Togliatti's cau- tious attitude of approving Socialist reunification. Nenni himself has said reunification would not impair and might bene- fit his party's relations with Communists. The Communists may hope to exploit a merged Social- ist Party, even if an open break with Nenni results. The Nenni Socialist central committee is to meet from 27 to 29 September to consider the unity question, and the Social- ist International Bureau appoint- ed a three-man committee on 20 September to follow rob- lem. r 25X1 probably be able to suppress opposition criticism as long as he has the support of his party and of the farmers. Opposition attacks on Men- deres' economic policies have SECRET PART II NOTES AND COMMENTS Pace 15 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET' CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 been the main factor in the government's decision to insti- tute controls over all means of public expression. Menderes is committed to a continued high rate of industrial and agricultural expansion, al- though these policies have pro- duced a critical economic situ- ation, including a heavy foreign debt and trade deficit, sharp inflation and domestic short- ages. An economic stabilization program which the prime mini.s- ter, agreed to reluctantly after a cabinet crisis in late 1955 apparently has now been abandoned. Menderes reportedly brought about the resignation of two key cabinet ministers responsible for carrying out the program so that he could appoint men personally loyal to him. The opposition Republican People's Party is exploiting the government's handling of the economic situation in its attack on the government. Menderes has responded by in- stituting repressive measures, reminiscent of the Ataturk era. With an overwhelming par- liamentary majority, Menderes has had little, difficulty in obtaining approval for laws restricting assembly, silencing press criticism of the govern- ment, and lifting the' parlia- mentary immunity of opposition deputies. Several High Court judges who were known to oppose the government have been retired, and newspaper editors have been arrested for "journalistic sabotage"--criticism of govern- ment officials or policies. An example of the operation of the press law is seen in the case now being tried in an Ankara court-of a 15-year-old newsboy, arrested for shouting the headline that the minister of finance had resigned. Opposition leader Kasim Gulek, who is already under a six-month suspended sentence for violating the law restrict- ing assembly, appears to be con- tinuing to try to goad the gov- ernment into further action against him. It is not yet clear if his attempts at politi- cal martyrdom will win widespread public sympathy. The opposition parties-- the Republican People's Party, the Republican Nation Party and the Freedom Party--apparent- ly hope to keep the government on the defensive while they seek enough public support to be a challenge to it in an 25X1 25X1 The Freedom Party, 2 an o s oO of the Democrat Party, has been especially active in seeking co-operation, but the leaders of the two Re- publican parties appear wary of any formal arrangement. The great mass of the voters are farmers and strongly support the Democrat Party, whose poli- cies favor agriculture. give measures may be taken. Barring an economic crisis intense enough to lose Menderes the confidence of his party and the support of the farmers, the prime minister's policy of sup- pressing all criticism will prob- ably continue, and further repres- 25X1 SECRET PART II NOTES AND COMMENTS Page 16 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 PROSPECT OF LABOR UNREST IN SPAIN Spanish industrial workers may strike again shortly after 1 October in protest against the meager wage raise which will be effective on that date. The steady rise in the cost of living during the past year is a source of mounting concern to labor, which blames the govern- ment for its precarious economic status. Moreover, the workers still resent the harsh measures employed by the regime against the strikers in northern Spain last May. Although the upward trend of living costs leveled off somewhat during the summer, it will probably advance again in the autumn, particularly in view of last spring's wage in- crease and the salary raise granted on 1 June to civil serv- ants and the armed forces. A 16-percent wage increase on 1 April brought walkouts in` northern Spain because the in- crease neither offset the rise in prices nor improved the liv- ing standard of low-income groups. Labor had been led to expect a 30- to 60-percent increase, but in most cases the April hike amounted to only 6 or 7 percent of take-home pay. The wage boost for industrial workers scheduled for 1 October amounts to an additional 6 per- cent. Labor resents the small contribution to the pay increase to be made by employers during a period of high profits for industry. An additional irri- tant is the discrimination evi- dent in the considerable raise given civil servants, amounting to as much as 60 percent on the lowest salaries. Genuine economic relief would require the government to improve the workers' living conditions,. provide a more flex- ible wage policy, raise the minimum wage rates, and place adequate controls on prices. I The government, however, has not yet shown any intention of repealing the punitive measures taken in May against strikers which have deprived them of sen- iority rights and, in some cases, resulted in their transfer to other cities at lower pay. SECRET PART II NOTES AND COMMENTS Page 17 of 17 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 CURRENT INTELLIGENCE WEEKLY SU)NARY 27 September 1956 PATTERNS AND PERSPECTIVES PROSPECTS FOR THE MOLLET GOVERNMENT When the French National Assembly reconvenes on 2 Octo- ber, Premier Mollet will face mounting political opposition as a result of growing frus- tration over a number of do- mestic and foreign issues, any one of which could lead to Mollet's overthrow. Despite the difficulties over Suez, his failure to achieve a settlement in Algeria, and strong infla- tionary pressures in the French economy, Mollet will continue to press for enactment of a positive program. Parliamentary Picture Many deputies who voted Mollet's in- vestiture on 31 Jan- uary are now ready to risk his overthrow because of the dead- lock on an Algerian settlement and disil- lusionment and dis- couragement over the Suez crisis. Many right and right-center deputies acquiesced in his minority govern- ment's program for social welfare, eco- nomic expansion and European integration only in the hope of seeing Mollet saddled with an unpopular settlement in Algeria. Regardless of whether or not he gets a settlement there, the assembly is unlikely to continue subordinating every- thing else to this problem. Radical leader Mendes- France left the cabinet last May, and will probably become increas- ingly critical of the govern- ment's economic and social pol- icies. Some of Mollet's fellow Socialists are irritated at the slow pace of reforms in Algeria; and when the second London con- ference on Suez ended, one of his Gaullist ministers called on the cabinet to resign. The center Popular Republicans are reported negotiating with the Socialists with an eye toward entering the cabinet. This step would greatly strengthen Mollet's position and would make him less susceptible to pressure to rely on the Commu- nists, who backed him until the Suez issue arose, and who still seem eager to "co-operate" with the Socialists. While Mollet is under no strong domestic pressure to forge ahead on EURATOM and the common market, European in- tegration has broad Socialist backing, and the government seems prepared to press for simultaneous assembly approval of both. The authority of the regime may be threatened by antitax leader Pierre Poujade's call for a massive demonstration in mid- October in Paris to serve as the "legal parliament" of France. Poujade hopes to at- tract half a million adherents to the meet- ing, which apparently is to be his long-heralded States General. Mollet may feel it necessary to prohibit this gathering because of the danger of violent countermanifestations. Despite unprecedented assembly support for the gov- ernment's strong position a- gainst Egyptian nationalization of the Suez Canal, this issue may precipitate Mollet's over- throw. The effect of the dead- lock on France's already tight budget is becoming increasingly SECRET PART III PATTERNS AND PERSPECTIVES Page 1 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 CURRENT INTELLIGENCE WEEKLY SUMMY 27 September 1956 apparent. The requisitioning of commercial ships and the transfer of troops to Cyprus have already boosted expenses considerably, and any rise in oil prices would have an ad- ditional deleterious effect on the economy, particularly on the government's wage-price stability campaign. There is growing sentiment in France against military ac- tion in Egypt. In general, the right. and right-center is less enthusiastic than the government on using force. French disil- lusionment at the outcome of the second London conference has unleashed the first attacks on Mallet's Suez policy and is likely to lead to a bitter and prolonged debate. The premier's failure to obtain a satisfactory solution undermined his prestige and may deal the final blow to France's position in North Africa. Algeria 25X1 25X1 Paris has concluded that it is unable to combat Nasr's rising prestige as a nationalist Arab leader, and the government now seems resigned to imposing a reform plan unilaterally. The The Suez seizure did,'in fact, kill Mollet's faint hope of pacifying Algeria as the first step toward a settlement. might be led to consider it. However, Mollet is in no po- sition to agree now to complete independence, the nationalists' goal. The impact of increased expenses resulting from the Algerian and Suez crises has forced the French economy from a period of price stability and economic growth to a period of strong inflationary pressures. The damage to agricultural production from-last winter's freezing weather, a major mil- itary effort imposed on a full- employment economy, increased wages and consumption, the ex- pansion of industrial production, and the effort to maintain a high level of investment have already brought. about an upward movement in prices and costs of production, speculation against the franc-", labor restiveness, and a deterioration in the French balance of payments. To contain the inflation- ary movement, the Mollet gov- ernment has instituted price controls and has been manipu- lating the price index to keep it below the point that would make a general wage increase mandatory. In the fiscal sphere, the government reportedly intends to practice a policy of selective plan has little prospect of be- investments, and plans a drastic ing accepted by the Algerian financial reform, including a nationalists. widening of the tax base and more stringent provisions to prevent tax dodging. The government's effort to keep prices and wages stable will depend on its success in winning voluntary support of employers to hold the price line and of the labor federations to forego re- quests for wage increases. Fol- lowing conversations with Mollet General Juin's public on 12 September, the major em- statement in late August favor- ployers'association modified its ing federation for Algeria may outspoken opposition to price help get a fairly liberal pro- controls but insisted on in- posal through the assembly, creasing' prices to' meet and the Algerian nationalists rising costs. The medium and small employers' organization, SECRET PART III PATTERNS AND PERSPECTIVES Page 2 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 CURRENT INTELLIGENCE WEEKLY SUMfdg.RY 27 September 1956 however, virtually defied the premier to try to enforce price controls. Bakers and grocers have already staged protest strikes in Paris against price ceilings, and farmers are ex- pected to increase agitation, particularly if the government succeeds in reducing subsidies. Labor Unrest 25X1 25X1 While the fall tradition- ally is a time for working- class unrest, the non-Commu- nist labor federations do not seem inclined at the present to launch agitation that would cripple the government's stability program. They seem temporarily mollified by.Mol- let's reaffirmation on 11 Sep- tember that the escalator wage law will be allowed to operate and by his promise to continue technical discussions of the wage-price problem, despite his firm opposition to a general wage increase. The Communist-dominated General Labor Confederation (CGT) offers the most serious threat to labor stability, but it has reacted relatively mildly. In the mid-September discussions, it contradicted the government's analysis of inflationary pressures and announced its intention to agitate for a 15-franc increase in the hourly minimum wage and replacement of the consumer price index with the budget in- dex as a more accurate reflec- tion-of the cost of living. Many non-Communist labor lead- ers also favor the latter move. Communist press comment indi- cates that the CGT intends to use protests and strike actions in the factories on the local level, with an appeal for the unity of workers, rather than 1g1tation. PROSPECTS FOR THE SOCIALIST PARTY OF JAPAN The Japan Socialist Party won almost one third of the seats in the Japanese upper house elections in July. In the more important and repre- sentative lower house elections in February 1955, the Socialists had garnered 29.2 percent of all votes cast to the conserva- tives' 63.2 percent. The con- servatives, although down from .their postwar high in 1952 of 66.2 percent, still hold ap- proximately two thirds of the seats in both houses of the Diet. Despite this disparity, there has been a discernible trend toward the Socialists since their postwar low in 1949, when they received only 13.5 percent of the vote. The Socialists point out that at their present rate of growth of about 1,000,000 votes a year, their support should match that of the conservatives within three years. The conservatives have been considerably disturbed by this trend, however. In calling SECRET PART III PATTERNS AND PERSPECTIVES Page 3 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SAY 27 September 1956 25X1 25X1 for Prime Minister Hatoyama's early retirement recently, 90 Japanese businessmen, described as the "pillars" of Japan's economy, were motivated by the fear that if new leadership were not provided soon, the Socialists would head the gov- ernment in Japan. Socialist optimism was given a boost by the results of a nationwide public opinion sampling by Tokyo's largest newspaper, the Asahi Shimbun, published on 7 September, The poll found that 33 percent of those interviewed supported the conservatives while 30 per- cent favored the Socialists, a 6-percent drop and 4-percent gain, respectively, since No- vember 1955. Party Program The Socialists are active- ly moving to increase their following. A campaign is under way to gain 100,000 new party members by the end of November and each Socialist officeholder has been assigned a quota to recruit. The mem- bership drive aims at broaden- ing,the party's support beyond labor's ranks, with emphasis on new farmer and small entre- preneur members. At the same time, a "prac- tical" economic program--a five- year plan to begin in 1957-- is to be mapped out by mid-Oc- The Socialists, as avowed "neutralists," have indicated they will still call for the return of Okinawa to Japan, and the early restoration of relations with the USSR and Communist China, and will op- pose American bases in Japan, nuclear weapons, a constitu- tional revision to "legalize" rearmament and the US-Japan Security Treaty. Views on US and Bloc The Socialists' domestic program emphasizes protecting "the people's livelihood" and safeguarding "human rights," which particularly appeals to Japanese labor. Their foreign policy, stemming from their "humanistic" attitudes, appeals to the widespread pacifist sen- timents among Japanese women, youth and intellectuals. In practice, the Socialists oppose practically every American ob- jective in Japan and emphasize the necessity for "independence" from the United States. Most Socialists accept the leftist caricature o America. Pacifist and neutralist sentiment leads the Socialists to welcome the Communist "peace offensive," and they attribute America's "hard"policy to a "pathological" fear of Commu- nism. One party leader says Socialist dislike of America springs from an inferiority complex resulting from the knowledge that Japan is depend- ent, on the United States and must cast its lot with America. Regardless of the reasons, the Socialists can be expected to continue vocal opposition to American policies, at least as long as they are outside the government. Should the Social- ists themselves form the govern- ment, the responsibilities of office would force a more prac- tical consideration of politics. SECRET PART III PATTERNS AND PERSPECTIVES Page 4 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUN"= 27 September 1956 The Socialists are split on their views of the Commu- nist bloc... A very small fac- tion sees the Communists as the "camp of peace." The dominant group tends to equate the "sins" of capitalism and Communism--both are said to be systems in which "man ex- ploits man"--and to see social- ism as the middle road. An- other relatively small faction is realistic in its appraisal of Communism and, while avoid- ing actions which could be in- terpreted as "pro-American," recognizes the advantages accruing to Japan as a result of its ties to the West. Labor Support The Japanese labor move- ment is the main source of Socialist strength and, in the estimation of one high Socialist, delivered roughly one half of the 11, 200, 000 Socialist votes in the recent upper house elections. While this support is vital to the party, the drive to broaden the party's popular base re- flects concern that such sup- port will not be sufficient to bring the Socialists to power. In addition, labor's influence on Socialist policy has, in some cases, been embar- rassing. In one instance, labor insisted that the Social- ists include provisions in a Socialist budget proposal for the payment of minimum wages even though it was known reve- nues were not available and that labor's objective was to dramatize its call for a na- tional minimum wage. A party official said that although this action added substance to charges of Socialist "unreal- ism," the party had to include the provision for fear of losing labor votes in the next election. Labor's support may also complicate the Socialist stand vis-a-vis the Japan Communist Party. The Socialists have maintained, since their merger in 1954, a clear distinction between themselves and the Com- munists. They maintained this stand during the July election despite repeated Communist overtures for a "united front" and the temptation posed by a few more possible Socialist victories if Communist support were accepted. Three prefec- tural parties did accept Com- munist support against the central leadership's advice. On the whole, the party has avoided becoming a Communist captive and the small pro- Communist group within the party has been virtually iso- lated. One of the best avenues for Communist influence on Socialist policy would seem to be through the labor movement, in which awareness of the dan- ger of Communist infiltration is not so strong. Sohyo, Japan's largest labor federa- tion, showed signs of serious Communist infiltration at its convention in late August and adopted an action policy which, among other things, follows the line of the Communist- dominated World Federation of Trade Unions and calls for joint action with the Commu- nists in "nonpolitical" matters. Just what this will mean in practice is, as yet, unclear. That the Socialists will be able easily to break away from their espousal of labor's interests seems doubtful in view of the party's heavy de- pendence on labor. The unions have demonstrated their ability to deliver votes and funds to the Socialists and, in the re- cent election, to elect labor- backed candidates. Of the Socialist Diet seats, almost one third ate held by former Sohyo members and 10 percent by former members of one union, the Communist-dominated Japan Teachers' Union. SECRET PART III PATTERNS AND PERSPECTIVES Page 5 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 The immediate outlook is rather for increased labor un- ion influence in the Socialist Party, and Sohyo's secretary general is urging union mem- bers to join the party. Modi- fications in the Socialist plat- form to gain wider appeal-- for example, by revising the call for a national minimum wage, which small entrepreneurs find unpalatable--probably will be objected to by the labor element, however. In addition, the Social- ist leadership itself is split on the-issue, with the Marxists favoring a labor-dominated pa.r- ty. Serious attempts to weaken labor's influence, therefore, could precipitate an intra- party factional struggle which would be as likely to split the party as win it added support. In expanding their in- fluence among the farmers, the Socialists are faced with the difficulty of breaking the association between Socialism and radicalism in the minds of many rural voters. This belief, fostered by the prewar govern- ment, has not been weakened by Socialist-inspired riots in the Diet. 6LC 'U.J' ... Socialist Chances Socialist prospects for attaining power in the next few years remain limited, ex- cept in the case of a prolonged economic crisis, gross conserva- tive ineptitude, or a major split in the conservative party. Public support of the party will probably continue to grow gradu- ally as the. Socialists exploit the labor field more intensely, "enlighten" more pacifist wom- en voters, and hold the votes of intellectuals and youths, There are some signs that 'the party is becoming increas- ingly mature and realistic on certain issues. On the problem of restoring relations with the USSR, for example, the Social- ists have recently eased indis- criminate attacks on the govern- ment for failure to secure an "early settlement" and, for the moment at least, have agreed to co-operate with the Hatoyama administration in bringing about an agreement which does not sacrifice Japan's terri- torial claims permanently. While decrying "American inter- ference in Japan's internal af- fairs" during the debates on Japan's policy in the negotia- tions,Socialist secretary gen- eral Inijiro Asanuma even ad- mitted it might be proper to seek American views, "for ref- erence. only." Socialist influence on Japan's national policy is like- ly to be somewhat greater than the party's vote-getting ability or Diet representation might indicate. The conservatives' fear of the Socialist "trend" has prompted them to appropriate certain Socialist campaign planks and to attempt to avoid creating clear-cut issues on others. The conservative setbacks in the July election, following blatant at- tempts to rig the election mecha- nism against the Socialists, may make the conservatives more cautious in their efforts to contain the Socialists. In addition, the vocal in- tellectuals and much of the press are sympathetic with the Social- ists, and few conservatives have so far been willing to explain vigorously the rationale behind their willingness to see Japan go along with certain American policies, This assures wide publicity, without refutation, of Socialist charges of "sub- servience" to America. The political climate makes a showing of "independence" from America politically valuable, even to conservatives. Japan's basic alignment with the United States is not likely to be broken either by Socialist influence on a con- servative government or even by a Socialist government. At the least, however, the Socialists can be expected to push to in- crease Japan's maneuverability in its international relations. SECRET PART III PATTERNS AND PERSPECTIVES Page 6 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 In the face of the unex- pected popular reaction in Georgia to the attack on Stalin at the 20th Soviet party con- gress in February, de-Stalin- ization was delayed there but has now begun in earnest. The effect of the incident on Geor- gian nationalism will probably color relations between Geor- gia and the Moscow government for years to come. SECRET Numm"r CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 March Demonstrations The details of what took place during the four days of disorder in Tbilisi can now be pieced together The students went ahead with their plans to read poems and lay wreaths at Stalin's statue in Stalin Park. The police apparently took no action. An air of excitement developed because of the semi- illegal nature of the activity, and crowds drifted into the city from outlying towns. At the same time, resentment mounted as word leaked out of Khrushchev's secret speech at the party congress. Apparently there was no violence until 8 March, when students rioted through the town shouting anti-Soviet, anti- Russian slogans, smashing win- 25X1 dows and overturning street- 25X1 cars. Other citizens jointed Although many of the dem- onstrators were undoubtedly motivated by genuine hero worship of Stalin, the prevailing senti- ment seemed to have been one of outraged national pride. There are indications that over the past several years, Georgians have grown resentful at losing the prestige they had enjoyed under Stalin and his fellow Georgian, Beria. In an unusual gesture of deference to public opinion, the authorities on 8 March of- ficially authorized commemorative meetings, probably in the hope of ending the disorder. Zarya. Vostoka, the Georgian party news- paper, appeared the next day with a front-page picture of Stalin and Lenin and an edi- torial commemorating Stalin's death. The paper announced the scheduling of mass meetings that day in factories, schools and other institutions. These moves did not placate the people. Disorders continued throughout SECRET PART III PATTERNS AND PERSPECTIVES Page 7 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 AP.Q BOCTOKA. H 0011001 AlnYTATOa TPYIlAHINXC...YINHCHO0 6000758TH I~CCO 01- --0111 H TBN0NCCeor0 H11-1- rI^11NN ab6CA666JF13n3aaIBl63 00 L~Cd511 7Cn11 61A B3O1763C0d 01311 07801 Oda*AJ101 0616600 100000 BBDmmm 08011 Xsa606lmax yeveln, a K H078aC789OGnOO C70000086CT80, 00306- 8550$ 000080$ vpOnnOCTB 00b0TCb070 DO- meCTB60EOro a t0cYA5p0T0eeaoro CTPOI. HB0CTaoByK 5a6ony ppo08rAe? poxna8 ^ . .V. STALIN10re x0- M 0980 o .aarxenla, as NEWSPAPER,, " YCT0001 "'~" ~~~00000 750010851I eaqua d D Se 1005 ^ X"I"', 5116 180000180 noon ,. /8? nosey Aaa EO0YaoaroD, 9CTDa- 0550 Da1orau Ya vpslumae0aoc71 0o- CTeo8E rOBODES: 8QTe n80100Ca Yen$ TO A 0A VT 9381Y1M Mole, 001010008...n. 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"10005, 6yanT 0Eyme0T81e00 TIaee NOD%, 11605^?W ?--_ --- I I III 00102000110 H811000 02 108EO0n1a91- Ipyl WORKING PEOPLE OF GEORGIA-* EHCC.-Bparn cww~w~ .x.. ..~..~w~ __. __ -POECTao cool v0a0Tene naproa "a yaaaaHHA Reaaaor, nap["", psOAOpos B cc p OF I. V. STALIN-Yu, Bepoo"Haro Ccae71 CCCP HE, 8 1P03000001 He 00 .......... . __ . a e00pame8aa 0p0A0as6TOA6a0CT1 pa60nero art noonrono. 0Aosoo ITa pae0T61 up,1-I 080 IRA pa6o9aa ^ eaysamax 0 nD'Aou. 000006. [Ju0YoyneoTnerenI0 067009 em0 ree- xOXn02e I .n0000p8/AE04Hiae ?0.. Br0 ap- nea 000000100 IOEbyr.C0oer0 UenTp5Ano0ro 6o0 01101015005 OeyCTalnol 3960Tm 8700700 that day despi'Le exhortations from loudspeakers that people go home. On the evening of 9 March, crowds gathered in Stalin Park shouting, "To the post office!" The idea reportedly was to send a telegram to Molotov and the United Nations protesting the denigration of Stalin and dis- criminatory treatment of Georgia. Army troops, which had apparently been moved into the city the night before, were drawn up in front of the govern- ment buildings. As the people converged on the post office, troops opened fire, first into the air and then into the crowd. Reports of the number killed have ranged from 10 to 100, with many others wounded. There apparently was no further violence. More troops TpyaRuweca rpysuu 4mym naMRmb H. B. CmafluHa H HOBOMY HAMMY nPOMMUHHOCTI H TP HCHOpTB COBOTCHoo Fpy3NN Hcropunecone Dome"0 II 0151111 mxxru 0 pytn.E A0071001T 098007503- , EBCC- eurygol aecounun BDDaro lole,eq Ixml np10p000 npoAYlgHE Ea cymecTepmmffi aA naa1T71 gees ll It TDVooaot a6T5.I.OCI peOnnxxmxx[_ am, xA 1710[ men .m. 0600 were brought in and patrols from the security forces ranged the streets. Patrols were still in evidence, however, when foreign- ers were again allowed to visit Tbilisi a month later, and West- ern newsmen noted that an under- lying bitterness among the popu- lation which they felt would not soon disappear. As one old woman put it, "We don't say much openly, but inside we are seething." Official Reactions The local authorities ap- parently had not expected such a strong reaction to the de- Stalinization campaign in Geor- gia and were dismayed by the SECR-E F TpeTbA I'OJAOBII.(HHa CO AHSI CM PTH H. B. CTaJIHHa 11700118 yea roAE 00000.1689005[ a[. B. aerapo,T6. DEDevaenee !7010 Comas Ii-) _ BAOxnHose oe 107071070011 0e31e010-. 25X1 25X1 PART III PATTERNS AND PERSPECTIVES Page 8 of lp Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 a- JGLIZG 1 27 September 1956 show of nationalism. There was probably considerable re- luctance to push the campaign in the face of such opposition. It is probable, furthermore, that Georgian officials re- quested Moscow for permission to slow down the campaign to allow more time for propa- ganda groundwork. In the uneasy period that followed, the Georgian papers struck out against propaganda organizations, hooliganism, and "collective" cutting of courses on dialectical materi- alism. They referred menac- ingly to "enemies of the peo- ple who are trying to weaken the friendship of people and restore bourgeois nationalism and national exclusiveness." Two Komsomol central committee secretaries and the first sec- retary of the Tbilisi city party committee were removed. The de-Stalinization cam- paign was virtually halted and praise for Stalin continued in the press. In reporting the May Day parade in Tbilisi, Zarya Vostoka observed that demonstrators carried portraits of Stalin which described him as "one of the most outstanding figures of the Communist move- ment" and included a reference to a number of institutes named after him. The press also re- ported that the Georgian govern- ment had received approval from Moscow to complete the construc- tion of a museum dedicated to Stalin. After publication of the central committee's resolution of 30 June, however, the de- Stalinization campaign was re- sumed in Georgia, probably as a result of impatience in Moscow over foot-dragging by Georgian officials. In early August, P. V. Kovanov, a deputy head of the all-Union central committee's Department of Propaganda and Agitation, was .transferred to Georgia as party second secretary--the first non- Georgian to serve in the top leadership since the early thirties. During the first two weeks in August, an intensive propa- ganda campaign was launched with a series of articles in Zarya Vostoka which indicate tit the aim was to interpret the "evils" of the personality cult in terms of specific local problems. The alarming extent of bourgeois nationalism in Georgia was the principal devi- ation blamed on the Stalin cult. The goal is to eliminate both deviation and its cause. The burden of blame was placed on Beria, but it was made clear that Stalin was re- sponsible for Beria's regime in Georgia. The unpopular Beria image is thus being used as a means of discrediting the still revered Stalin. Because of the influence of Beria and Stalin, the arti- cles explained, a "barrier ex- isted between the Georgian leadership and the central committee" of the Sovie c Commu- nist Party, and thus for many years Georgia remained outside the effective control of Moscow. As a result, "foreign, anti- party practices" sprang up, and literary works saturated with ultranationalistic, anti- Russian feeling were allowed to run into many editions. His- torians, it was said, belittled the importance of the union of Georgia and Russia and concen- trated on the distant past. No serious studies of problems of Marxist philosophy were published for ten years, and ideological indoctrination, particularly of the youth, was almost non- existent. Party boss Mzhavanadze ad- mitted at the party plenum in August that the "central com- mittee of the Georgian Commu- nist Party underestimated how SECRET PART III PATTERNS AND PERSPECTIVES Page 9 of 10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 27 September 1956 deeply the Stalin cult had be- come rooted in the consciousness of the people of Georgia, or its excessive proportions and nationalistic character." It "failed to give an adequate explanation to the people" or take any effective action. Although Mzhavanadze placed the blame on the Geor- gian central committee, it is clear that Moscow did not take a firm stand on what course should be pursued. Georgian officials, lacking definite directives, perhaps disagreeing as to approach, and differing in their degree of enthusiasm for the de-Stalinization cam- paign, allowed the situation to drift, and this led to Moscow's action in early August. Moscow faces a real problem in the existence of strong na- tionalist sentiment in Georgia. Never far below the surface, this sentiment has now been aroused by a direct and open clash with Moscow. Although the regime is apparently de- termined to employ every means to overcome this attitude, it will probably continue to be a source of trouble for some years to come. SECRET PART III PATTERNS AND PERSPECTIVES Page :10 of :10 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1 Declassified in Part - Sanitized Copy Approved for Release 2012/06/19: CIA-RDP79-00927A001000010001-1