CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A001600030001-3
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February 8, 2005
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January 9, 1958
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SUMMARY
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Approved For Release 2005/02/17 : CIA-RDP79-0092JAD01600030001-3 CONFIDENTIAL CURRENT NTELLIGENCE WEEKLY SUMMARY COPY NO. 16 OCR NO. 0027/58 9 January 1958 00.1 .,~,,ZF IN GLS T L~ D -CLAS~'t, . 7S cF~ys w... ..: I CENTRAL INTELLIGENCE AGENCY I I OFFICE OF CURRENT INTELLIGENCE CONFIDENTIAL --.- , T kzSi 25X1 25X1 State Department review completed Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 Approved For Release 2005/02/17 : CIA-RDP79-00927A001600030001-3 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2005/02/17 : CIA-RDP79-00927A001600030001-3 Approved For Release 20P79-009277AA091600030001-3 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 T H E W E E K I N B R I E F OF IMMEDIATE INTEREST SOVIET BLOC DIPLOMATIC MOVES . . . . . . . . . . . . . . . Page 1 Moscow has followed up its public demands for new East-West talks with diplomatic overtures to a number of governments to urge the United States to assent to negotiations. The Kremlin probably feels that American acceptance would undercut efforts to strengthen NATO, while an American rejection would stimulate the view that the United States is the principal obstacle to a lessening of tensions between the Communist bloc and the West. Polish Foreign Minister Rapacki's proposal for a nuclear-free zone in central Europe is a major element in the Soviet bloc's present diplomatic offen- sive and is being given favorable attention in some West European press and official circles. INDONESIA . . . . . . . . . . . . . . . . . . . . . . . . Page 3 Prime Minister Djuanda in Djakarta has stated a e expects increased trouble from the provinces, but no great change in the internal situation while Sukarno is out of the country. The Indonesian arms purchasing mis- sion, now in Eastern Europe, is seeking large amounts of military equipment, including jet fighters, bombers, transports, helicopters, and trainers. Moscow, mean- while, is putting "extreme pressure" on the Indonesian G3vernment to accept arms and ships. NOTES AND COMMENTS SOVIET AGRICULTURE IN 1957 AND PROSPECTS FOR 1958 . . . . Page 1 Soviet agriculture in 1957 was characterized by ap- proximately average yields in grain--in contrast to last year's exceptionally high yields--significant gains in meat and milk production, a disappointing performance in cotton, and a large increase in sugar beet production. 25X1 25X1 1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 THE WEEK IN BRIEF Approved ForRelease 2005kE-7REI- RDP79-00927A001600030001-3 CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 PART II (continued) These results, together with the absence of crash agricul- tural programs for 1958, indicate that prospects are poor for achieving the original Sixth Five-Year Plan grain goal for 1960. Despite the 1957 increase in milk and meat production, Khrushchev's goals to equal America's per capita production in milk by 1958 and t by 1960- 61 are not likely to be met. 25X1 USSR CLAIMS NEW ACHIEVEMENTS IN AVIATION . . . . . . . . . Page 3 Recent Soviet claims, most of which appear to be with- in Soviet capabilities, have stressed achievements in avia- tion which have included new world records and announce- ments of new aircraft developments. These claims are used to back the present propaganda campaign hasizing Soviet technological superiority. 25X1 F 7 SOVIET ANNOUNCEMENT ON FORCE REDUCTION . . . . . . . . . . Page 4 Moscow's announced plan to reduce its armed forces by 300,000 is intended to strengthen the impression that steps to enhance NATO's military potent iai are unnecessary, and to contrast with efforts to strengthen the Western ALBANIA DEMONSTRATES AIR DEFENSE CAPABILITY . . . . . . . Page 5 n stem er, Al- anian je ig ers orce own a ritish civil airliner which allegedly violated Albanian territory. In addition to reflecting a sensitivity to overflights, which Albania has heretofore been unable to prevent, the incidents demon- strate that Albania's air defense system, under development since 1955, has now reached operational status. 25X1 WEST GERMAN VIEWS OF BERLIN ACCESS PROBLEM . . . . . . . . Page 6 West Berlin and Bonn officials are apprehensive over the East German regime's assumption of greater control over access to and from West Berlin. Bonn believes in- fringement of Allied access calls for firm resistance, particularly since such action may precede increased harass- ment or blocking of West German traffic to Berlin. A cur- tailment of interzonal trade would be Bonn's most effective retaliatory measure. would be instituted only with re- luctance. F77 I 25X1 SECRET 25X6 ii Approved For Relea E20 Rj11IN?-j379-00927A001 600030001-3 Approved For Release 2005/02/17: CIA-RDP79-00927AO01600030001-3 SECRET 9 January 1958 PART II (continued) ULBRICHT TO FACE OPPOSITION AT EAST GERMAN PARTY PLENUM . Page Anti-Ulbricht sentiment in high East German Commu- nist party circles seems to have reached a new peak, with a showdown possible at the party central committee's 35th plenary meeting scheduled for late January. The opposi- tion 25X1 apparently wishes to force First Secretary U ric to modify his tough economic policies rather than overthrow him. The group believes the planned norm in- creases and wage cuts for workers and intensified pressures on farmers and artisans to join collectives would not in- __ crease productivity and would cause unrest. F I 25X1 FURTHER PRESSURE ON THE EAST GERMAN FARMER . . . . . . . . Page 8 The East German regime is putting into effect agri- cultural measures which will intensify its struggle with the private farmer and stimulate further defections by the increasingly scarce agricultural workers, who have deserted 1,200,000 acres of farmland since the war. In- creased collectivization, elimination of free produce markets, and discrimination in the allocation of various farm necessities will increase state control over the private farmer, at the cost of reduced agricultural out- put. RIVALRY AMONG NORTH VIETNAMESE LEADERS . . . . . . . . . . Page 9 North Vietnamese Defense Minister Vo Nguyen Giap and veteran party theoretician Truong Chinh appear to be engaged in a power struggle, each heading a faction in the Hanoi hierarchy. Ho Chi Minh has moved to protect his position in the party and is probably trying to pre- vent a serious dispute. Only his presence seems to as- sure stability. Persistent failures to implement major policies and reversals of some of them may reflect dis- agreement among the leaders on how to proceed. 1 -1 Peiping has set itself the ambitious goal of sur- passing the United States economically by the end of the century. Targets for both the Second Five-Year Plan (1958-1962) and the 1958 annual plan have recently been raised, and Peiping has taken the unusual step of sched- uling the National People's Congress for January instead of June to consider these matters. SECRET iii . Page 10 25X1 25X1 Approved For Release 51 W :I fA -00927A001600030001-3 Approved For Release 206E1kEIA-RDP79-00927A001600030001-3 CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 PART II (continued) PEIPING BEGINS EXPULSION OF RIGHTISTS FROM GOVERNMENT POSTS . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11 Peiping's firing of high-level officials in two prov- inces as "rightists" last week marks the beginning of formal action against government personnel charged with antiregime activity. The Chinese Communists have hitherto permitted such men to continue in office, at least nominally, but the regime has evidently decided that their usefulness as "liv- ing textbooks" on the evils of "antisocialist" behavior has ended. Other leading officials at the provincial level will probably be dismissed soon, and some members of the central government are expected to be removed during the National People's Congress. I MIDDLE EAST DEVELOPMENTS . . . . . . . . . . . . . . . . . Page 12 In Syria the internal struggle is sharpening between radical nationalists supported by Egypt and pro-Soviet groups, with the Communists as their core. An Egyptian economic delegation is now negotiating in Moscow; an ar- ticle in a Soviet journal suggests the USSR may be trying to keep alive the idea that it will assist Egypt's Aswan high dam project. An Arab oil meeting opening in Cairo next week is likely to increase pressure for more direct Arab government participation in the Middle East oil in- dustry. AFGHANISTAN TO SEEK FOREIGN GRANTS RATHER THAN LOANS . . . Page 13 Financial difficulties have apparently compelled Af- ghanistan to seek only grant aid, to the exclusion of loan aid, which it now receives from both the United States and the USSR. The USSR is unlikely to offer grant aid but may offer to ease the terms on its $100,000,000 loan to help Afghanistan overcome its payment difficulties. The USSR may also seek to increase its influence by providing eco- nomic exerts to help solve inflationary problems. THE VENEZUELAN SITUATION . . . . . . . . . . . . . . . . . Page 14 Developments in Venezuela since the government crushed the military revolt on 1-2 January indicate that President Perez will probably be unable to re-establish complete per- sonal control over the country. The loyalty of some of the armed forces is doubtful, and reprisals the government has taken against militar and civilian elements could touch off additional violence. SECRET iv Approved For Releasf NOWJ2/171 ;l p Z9-00927A001600030001-3 25X1 25X1 Approved Folease 20fDf?J&E'EIA-RDP79-0092.01600030001-3 9 January 1958 PART II (continued) FRENCH SEEK STRATEGIC NUCLEAR CAPABILITY . . . . . . . . . Page 15 The increasing French desire for advanced weapons, including hydrogen bombs, may complicate the forthcoming American-French bilateral talks. These talks are in response to the American offer at the recent NATO con- ference to provide IRBM's and to support cooperative de- velopment of modern weapons for NATO forces. Paris now wants such arms in order to possess an independent "re- taliatory" strategic nuclear capability. 25X1 MACMILLAN'S SUGGESTIONS ON EAST-WEST RELATIONS . . . . . . Page 16 Prime Minister Macmillan's cautious support of a nonaggression pact with the Soviet Union and an eventual summit meeting has received favorable comment in most Western European circles. The Kremlin's reaction re- flects a determination to prevent the West from gaining credit for moves to reduce international tensions I CYPRUS . . . . . . . . . . . . . . . . . . . . . . . . . Page 18 Governor Foot has presented his recommendations for new moves on Cyprus to the British Cabinet, but no public announcement on policy is planned until after Parliament reconvenes on 21 January. EOKA remains passive but periodically issues warnings of revolt throughout the is- land unless London meets its demands for Cypriot self- determination. Greek Prime Minister Karamanlis appears convinced of the necessity of reaching an accommodation with Ankara but is pessimistic over the chances of suc- cess. JAPAN SEEKS TO REDUCE CONTRIBUTION TO US FORCES . . . . . Page 19 Foreign Minister Fujiyama has requested that the Japanese contribution toward support of American forces in Japan be reduced to $56,000,000 for fiscal 1958, in- stead of to $70,000,000 as stipulated by the terms of an earlier agreement. The Kishi government believes the SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 THE WEEK IN BRIEF 25X1 25X1 25X1 Approved For Release 200 02/17 : I -RDP79-0092 A001600030001-3 CRE CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 PART II (continued) additional reduction is warranted by the substantial withdrawal of American troops during 1956-57. It is under pressure to obtain such a reduction because the Socialist party, preparing for general elections this year, is planning to exploit Japanese sensitivities on any question relating to the presence of American forces in Japan. PATTERNS AND PERSPECTIVES KHRU SHCHE"." S PARTY MACHINE . . . . . . . . . . . . . . . . Page 1 With the downgrading of the Soviet police in 1953, the reorganization of industrial management in mid-1957, and the recent exercise of party dominance over the armed forces, political power in the USSR has become concen- trated more and more in the party machine, headed by Khru- shchev. This machine includes the all-union secretariat, its 20 or so executive departments called the central ap- paratus, and a highly disciplined hierarchy of subordinate secretariats and apparatuses (or executive staffs) cor- responding to the republics, oblasts, and lesser adminis- trative divisions of the country. Control of the party machine through the central secretariat has been a primary factor in Khrushchev's rise to power, and direct influence in the secretariat may soon become, if it is not already, the sine qua non for top political stature. SOVIET TRADE UNIONS REORGANIZED . . . . . . . . . . . . . Page 7 Along with the reorganization of industrial manage- ment, the Soviet trade union structure is being extensive- ly revamped to facilitate coordination between the trade unions and the newly formed regional economic councils. Beginning 1 January, republic, oblast, and krai trade un- ion councils were to take on added responsibility for fi- nancial and operational activities of the industrial trade unions operating within their territoria... jurisdictions. A central committee resolution adopted in December, in part empowering factory union committees to participate in draft- ing production plans, demonstrates the regime's interest in using the trade unions to stimulate industrial production. SECRET' vi Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 THE WEEK IN BRIEF 25X1 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927A001600030001-3 SECRET 9 January 1958 PART III (continued) THE PRE-ELECTION SITUATION IN GUATEMALA . . . . . . . . . Page 9 Campaigning for the 19 January presidential and con- gressional elections in Guatemala is marked by mounting partisan bitterness and pub'1.c anticipation of serious disturbances. It now seems ilcely that none of the three major presidential candidates will receive a majority, thus leaving the decision to the present Guatemalan con- gress, which would probably favor the anti-Communist cen- ter coalition candidate, Cruz Salazar. The Communist-in- filtrated Revolutionary party may resort to violence if it is not declared the winner in the election. SECRET vii 25X1 25X1 Approved For Release /O*K Cllg--00927A001600030001-3 Approved For Relea NF/bOENTI P79-0092ZAP1600030001-3 CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 OF IMMEDIATE INTEREST SOVIET BLOC DIPLOMATIC Pressure for East-West Talks Moscow has followed up on its public demands for new East-West talks with diplomatic overtures to a number of govern- ments to bring pressure on the United States to assent to negotiations. The Soviet lead- ers are trying to capitalize on the strong sentiment in the West favoring a new round of high-level talks. The Kremlin probably feels that American acceptance would undercut ef- forts to strengthen NATO, while an American rejection would stimulate the view that the United States is the princi- pal obstacle to a lessening of tensions between the Communist bloc and ..the West. Since late December the Kremlin has engaged in behind- the-scenes moves--probably on a widespread scale--to enlist the support of a number of free world governments to secure American agreement to negotia- Soviet officials have ap- proached American diplomatic personnel on several occasions in efforts to determine Wash- ington's attitude toward the proposal in Bulganin's letters of mid-December for some form of high-level East-West talks. On 20 December the Soviet am- bassador in Rome told the Ameri- can ambassador there that per- haps he could "convey some use- ful message" from the USSR. Two days later the head of the USSR's Committee for Cultural Relations With Foreign- ers told Ambassador Thompson in Moscow that East-West problems could, in the final analysis, only be resolved by bilateral Soviet-American negotiations and pointed out the need for agreement while President Eisen- hower and Khrushchev "are still in office." In trying to sound out the ambassador, the Soviet official also expressed the view that negotiations would be- come more difficult after NATO plans to strengthen Western Europe, particularly West Ger- many, are being put into effect. The Rapacki Plan Polish Foreign Minister Rapacki's proposal for a nuclear- free zone in central Europe is a major element in the Soviet bloc's present diplomatic of- fensive and is being given fa- vorable attention in some West European press and official circles. Rapacki declared in the UN General Assembly on 2 October that, if the two German states would .aconseht'. to ;ban the CONFIDENTIAL Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 PART I OF IMMEDIATE INTEREST Pave Approved For Release 2005/ 1CR -TRDP79-00927AO01600030001-3 CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 production and stockpiling of nuclear weapons on their terri- tories, Poland would follow suit. On the same day, Czecho- slovakia made a similar commit- ment. Interest in the proposal lagged until mid-December when Soviet Premier Bulganin included it in his letters to the NATO powers, expanding on Rapacki's suggestion to include an agree- ment by the three nuclear powers not to deploy nuclear weapons on German territory. Although the proposal has been greeted as a new Communist idea, a similar suggestion was advanced by the Warsaw Pact powers in January 1956 and was formally proposed by the USSR to the subcommittee of the UN Disarm- ament Commission in March 1956. Several of the Soviet bloc states have joined in this cam- paign. Poland appears to be more flexible than the others in the terms it proposes. Pol- ish Deputy Foreign Minister Naszhowski recently told Amer- ican Ambassador Bean in Warsaw that the Rapacki plan was not intended to embarrass West Ger- many and would not require Bonn to recognize or negotiate with East Germany. On 13 December Rapacki stated that an agree- ment between the two German states would be the most direct method for establishing a nu- clear-free zone, but implied that there were other ways of attaining it. In contrast to Polish de- scriptions of the plan, Soviet, East German, and Czelch state- ments have consistently re- ferred to an agreement between the two German states as an essential part of the proposal. The only exception was Bulgan- ~,n'; , letter to Adenauer of 10 December, which avoided the question. In his statement of 13 De- cember, Rapacki referred to the need for some method of control but suggested that this problem could be settled after agreement on the principle of a nuclear- free zone had been reached. The Polish deputy foreign minister said recently that controls could be worked out by the "great powers" involved. In addition to the nuclear- free zone, the USSR has been stressing such other proposals as a nonaggression pact between the NATO and Warsaw Pact coun- tries, the withdrawal of some or all foreign troops from Ger- many, and a. ban on tests on nu- clear and thermonuclear weapons. Moscow probably believes the nuclear-free zone is a particu- larly useful proposal, however, because of its Polish sponsor- ship and because of the present debate in NATO countries over establishing nuclear and missile bases in Western Europe. West European Reaction The reactions of Western European political figures to the Rapacki plan have been largely determined by their previous attitude toward a with- drawal of Soviet and American forces, the banning of nuclear weapons, and toward neutralism in general. Parties and politi- cians favoring these ideas have spoken of the Rapacki plan as "interesting," "promising," or "worth looking into." Even those who have generally sup- ported the strengthening of NATO have shown some interest` SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 PART I OF IMMEDIATE INTEREST Page 2 of 4 Approved For Release 2005/02/17 : CIA-RDP79-00927A001600030001-3 SECRET CURRENT INTELLIGENCE WEEKLY S 9 January 1958 in the plan because they feel it might represent a Polish scheme to gain the removal of Soviet forces and they hope it could help break the deadlock in the disarmament negotiations. In Bonn, the Rapacki plan has been publicly described as "under study" because it was included in Bulganin's letter to Adenauer which will be an- swered in mid-January. Ade- nauer, however, said on 21 December that his government had already concluded that neu- tral zones were impractical and added that "a de-atomized zone seems to me still more illusory than a neutral zone." IThe German Christian Democrats have consistently op- posed European security plans which ignore the unification question. In contrast, the So- cial Democrats find that the Rapacki flan fits in well with their antinuclear, alliance- free policy. French Premier Gaillard and Foreign Minister Pineau have publicly taken a negative stand on the Rapacki plan, which the French ambassador in Warsaw has been instructed to reject "firmly." Some French officials believe, however, that the idea of a "thinned-out zone" in cen- tral Europe is gaining headway in France. The Belgian Foreign Minister opposes the plan be- cause its geographic scope is too limited; he prefers Western disarmament proposals for in- spection "from the Atlantic to the Urals." While the Rapacki plan it- self has attracted little at- tention in Britain, public de- bate there has recently revealed considerable support, particu- larly in the Labor party, for a zone of limited armaments in central Europe. In the 8 Jan- uary meeting of the North At- lantic Council, the UK, sup- ported by other countries, in- sisted that in the replies to the Bulganin letters the Rapacki plan be mentioned as under study. Most influential independent papers have warned that the stationing of IRBM's in Germany would tend to freeze the present stalemate. On 2 January Prime Minister Nehru of India endorsed the Rapacki plan as well as Yugo- slav President Tito's call for an East-West summit conference. 25X1 25X1 SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927A001600030001-3 OF IMMEDIATE INTEREST P,)re 3 of 4 Approved For Release 2005/02/17 : CIA-RDP79-00927 AO01600030001-3 SECRET CURRENT INTELLIGENCE WEEKLY S Ry 9 January 1958 Prime Minister Djuanda in Djakarta continues to insist that although he expects in- creased trouble from the prov- inces,, no great change in the internal situation will occur while President Sukarno is out of the country. He neverthe- less called a, cabinet meeting on 6 January, immediately after Sukarno left on his trip, at which the principal announced topic was trade relations with the outlying provinces. It is possible that a greater effort to placate the dissident lead- ers may have been discussed. Former Vice President Hatta, who has severely criticized the Djuanda cabinet, has stated he will not participate in any gov- ernment reorganization while the President is out of the country. Hatta is believed planning to go to Sumatra soon and probably will add his voice to those counseling moderation. SECRET Both Djuanda. and Hatta, however, are concerned that right-wing religious and youth groups in Java may'attempt vio- lent action during the next few weeks. An incident of grenade- throwing occurred in Djakarta on 7 January, possibly he be- ginning of isolated acts of terrorism by these groups. No drastic overt Communist move is expected during Sukarno's absence, except possibly in de- fense of the present govern- ment. The Indonesian arms pur- chasing mission now in Eastern Europe is seeking heavy infantry weapons for the army, a variety of medium and small vessels for the navy, and over a. hundred Soviet-type aircraft, including jet fighters, bombers, trans- ports, helicopers, and trainers. The Soviet Government on 6 January made a. firm offer of arms and ships to Indo- nesia, going beyond previous vague expressions of support by Soviet officials. Premier Djuanda told the American a.mbas- sa.dor on 7 January of "extreme pressure" from the USSR to ac- cept this aid. The USSR is able to provide arms on short notice, and bloc vessels are able to meet Indonesia's overseas shipping needs. The USSR can be expected to offer this assistance on rea- sonable terms. 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 PART I OF IMMEDIATE INTEREST Page 4 of 4 Approved For Release 2005/07 PQA-P 79-00927AAO01600030001-3 CONEU k TIAL CURRENT INTELLIGENCE WEEKLY SUMItiRy 9 January 1958 Soviet agriculture in 1957 was characterized by approximate- ly average yields in grain--in contrast to last year's ex- ceptionally high yields, sig- nificant gains in meat and milk production, a disappointing per- formance in cotton, and a large increase in sugar beet produc- tion. These results, together with the absence of crash agri- cultural programs for 1958, in- dicate that prospects are poor for achieving the original Sixth Five-Year Plan grain goal for 1960. Despite the 1957 in- creases in milk and meat pro- duction, Khrushchev's goals to equal American per capita production in milk by 1958 and in meat by 1960-61 are not likely to be met. Khrushchev, in a speech to the Ukrainian Supreme Soviet on 24 December, indicated that the 1957 grain harvest was lower than the record harvest of 1956. He said the country 'procured" approximately as much grain as during 1955, a year with a harvest well below that of 1956. This reference to procurement suggests that total grain output is below even that of 1955, since the New Lands made a greater con- tribution to total output in 1957 than in 1955, and the rate of state procurement in the ?env Lands is relatively higher in the other major grain- producing areas. The substantial 1957 in- crease in meat and milk pro- duction over 1956 resulted from an increase in fodder available from the record 1956 harvest and an early spring in 1957 with the resultant good pasture. The plan for sugar beet procurement was overfulfilled, a bright spot, but the cotton crop did not meet its goal, and quality is low because of poor weather. The policy since Stalin's death of giving higi priority to agri- culture continues in the 1958, plan for the Soviet economy. Capital investment planned for state agriculture is two billion rubles ($500,000,000 at the official rate) higher than that planned for 1957, and machinery inputs to agriculture also show an increase. The transfer of N. I. Belyayev, a secretary of the party central committee, to first party secretary in Kazakh SSR in December was probably aimed at least in part at boost- ing agriculture production there. Earlier, in the fall of 1957, he had called for a further expansion of the New Lands pro- gram by 30-37,000,000 acres in areas adjacent to Kazakh SSR. He will undoubtedly push con- version to the two-stage har- vesting technique in gathering next year's grain harvest. Despite planned further ex- pansion of cultivated acreage in the USSR in the next several years, the 1958 plan calls for no increase in grain acreage. Kuzmin spoke of a planned in- crease of 12,400,000 acres of grain in 1958, but he was ap- parently comparing 1958 (planned) sown area with 1957 harvested area. For meat pro- duction n 1958, the rate of increase may be lower than that attained in 1957 because of the 10* to 15-percent decline in the 1957 grain harvest. An organizational measure being adopted was mentioned by V. Matskevich, Soviet agricul- ture minister, on 8 January at Approved For Release /OZ/11 Pi.i -00927A001 600030001-3 Page 1 of 20 PART II NOTES AND COMMENTS Approved For Release 2005/02/17 : CIA-RDP79-00927A001.600030001-3 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 USSR: PRODUCTION OF SELECTED AGRICULTURAL COMMODITIES MILLION METRIC TONS 9-10 MILK 70-72 61 1 1 6.2 3 4 3 95 . 4 0 . . 1955 1 956 1957 1958 1960 1967-6 9 1955 1 956 1957 1958 1958* 1960 EST. PLAN GOAL GOAL EST. PLAN GOAL Figures believed overstated in comparable US terms by about 10 percent. 115x SUGAR BEETS MEAT AND FAT (SLAUGHTER WEIGHT) 1955 1956 1957 1960 1955 1956 1957 1958 1960 1972 EST. GOAL EST. PLAN GOAL GOAL x Estimated amount of grain *Miount necessary to produce 9-10,000,000 actually available in view of tons of sugar, as envisaged by Khrushchev. abnormal ly high postharvest losses in 1956. Official Soviet harvest figure was 124,000,000 tons. 1955 1956 1957 1960 1960-61* EST. GOAL Based on figures believed overstated in comparable US terms by as much as 40--50 percent. an agricultural conference, un- der which the country would be divided into 39 agricultural zones on the basis of climate and soil conditions. This geo- graphic approach is somewhat reminiscent of last year's launching of the reorganization of industry on a geographic basis. Although little is known of the specifics involved, one of the primary tasks of the re- gions reportedly will be to stimulate the programs for catching up with the United States. A 12-percent increase in milk production planned for 1c58, if achieved, would put total Soviet milk production in 1958 still about 10,000,000 tons short of the necessary 70- 72,000,000 tons needed to catch up with the United States in per capita production in 1958, even if Soviet milk statistics are accepted. These statistics appear to overestimate produc- tion in comparable American terms. Matskevich stated at the same conference that the USSR will catch up with the United States in total milk production in 1958. In so doing he tacitly admitted that Khrushchev's orig- inal goal of overtaking the United States in per capita milk production in~958 would have to be reached later. SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 PART II NOTES AND COMMENTS Page 2 of 20 Approved For Release 2005/02/17 : CIA-RDP79-00901600030001-3 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January-1958 Butter along with meat and milk was designated by Khrush- chev in the race to overtake the United States in per capita out- put. It is quite possible that the USSR per capita production already exceeds that of the United States if household pro- duction of butter is included. Khrushchev's original compari- son gave Soviet commercial pro- duction Of butter only. While the USSR may attempt to publi- cize this "victory," possibly to divert attention from the failure to achieve meat and milk output goals, it should be remembered that the United States has in addition a per capita production of margarine almost equal to that of butter. Ameri- can butter consumption has dropped sharply in the postwar period. It is probable that in 1958 there will be a continuation of the expansion in the state farm sector of agriculture through the conversion of so-called "economically weak" collective farms into state farms, a pro- gram allegedly aimed at in- creasing efficiency and produc- tion. (Prepared by OR USSR CLAIMS NEW ACHIEVEMENTS IN AVIATION Recent Soviet claims, most of which appear to be within Soviet capabilities, have stressed achievements in avia- tion which have included new world records and announcements of new aircraft developments. These claimSrare being used to back the present propaganda campaign emphasizing Soviet technological superiority. Soviet claims to a new speed record were advanced in an article in the l4 December issue of Soviet Aviation which stated thaw jet-11-9E-ter had attained a speed of 1,242 miles per hour during a test flight. This announcement followed by two days the official estab- lishment of a new world record of 1,207.6 miles per hour set by an American Voodoo fighter- bomber. The description of the Soviet aircraft suggests the FITTER, first observed in the 1956 air show, which is esti- mated to have a maximum speed of 1,300 miles per hour at an optimum altitude of 35,000 feet. A Moscow broadcast of 27 December reiterated statements originally made on 30 October that the HOOK (MI-6) had broken a world record for helicopters previously held by the United States. The October announce- ment credited the aircraft with lifting 26,463 pounds to an altitude of 7,870 feet, surpass- ing last year's American record of lifting 13,250 pounds to 7,000 feet. Analysis of the HOOK's capabilities indicates that the helicopter probably is capable of such a feat. The military newspaper Red Star stated on 27 December SECRET 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO0160003000~age 3 of 20 PART II NOTES AND COMMENTS Approved For Release 2005/02117 : CIA-RDP79-00921600030001-3 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 that a Soviet air force pilot had flown a fighter at 62,680 feet and "then climbed still higher." The item said this was a "standard flight of a squadron commander in a series- produced aircraft of an opera- tional unit," not an experimen- tal flight. The flight may have been performed by a FARM- ER (MIG-19), which is estimated to have a service ceiling of 62,200 feet on an optimum mis- sion, and probably could exceed this in a maximum altitude at- tempt. Red Star on 28 December carried-a p otograph of a jet fighter--probably a MIG-19-- being launched from a catapult. Mounted under the afterfuselage was a "starting rocket"--ap- The Soviet Union announced on 6 January that its armed for- ces will be further reduced by 300,000 men, and that 41,000 are to be withdrawn from East Germany and 17,000 from Hungary. The announcement of the unilateral cut, like similar earlier announcements, is in- tended to contrast Moscow's "peaceful intentions" with West- ern rearmament plans. It is timed to encourage Western Euro- pean sentiment for giving prior- ity to negotiations with the USSR over steps to strengthen NATO's military potential. parently a JATO or RATO bottle --which could be jettisoned after take-off. The article stated that airstrips were not needed for such aircraft, which can be hauled anywhere by trailer truck. Successful de- velopment of such a "zero-launch- ing" system would increase So- viet air-defense capabilities. TASS announced on 26 Decem- ber that the USSR is test-flying a machine called the "Turbolet" capable of vertical landings and take-offs. The description in Red Star indicates this to be TTie o met version of the "flying bedstead" first observed during preparations for last summer's ON FORCE REDUCTION The announcement of specif- ic force cutbacks in East Ger- many and Hungary probably is designed to gain support for Soviet and Polish suggestions concerning a central European zone which would have reduced forces with no nuclear weapons. The reductions to be made in these countries would not affect Soviet security interests there. Presently the USSR has 380,000 personnel in East Germany and about 70,000 in Hungary. Re- ductions in these countries, however, may be particularly effective for propaganda pur- poses. SECRET 25X1 PART II Approved For ReIe OTES AND1 COMMAENTS79-00927A0016000Page 4 of 20 Approved For Release 208'9/02I .' CIA-RDP79-009274091600030001-3 CURRENT INTELLIGENCE WEEKLY SUMMARY 9 January 1958 In two other statements since August 1955, the Soviet Union has announced reductions of military manpower totaling about 1,800,000 men. While there is no confirmation that the cut has been this great, there is evidence of some re- ductions of force from the Korean peak. Current Soviet strength, including security forces, is estimated at about 4,600,000. Since Soviet military ex- penditures for 1958 are rough- ly the same level as for the last two years, a reduction of forces could indicate increased emphasis on other phases of the military program. Khrush- chev has said that the USSR's scientific advances have created conO4 +i.ons favorable for the cutback. A Supreme Soviet de- cree on 21 December explicitly called for maintaining the armed forces at a proper level to en- sure the defense interests of the Soviet Union. Reductions could be ac- complished by reducing the terms of service and by the early release of some personnel or by decreasing the annual ca.ll- up. An efficient reserve and 25X1 mobilization system also miti- gates the effect of any cut. ALBANIA DEMONSTRATES AN AIR DEFENSE CAPABILITY nish it with air bases that would facilitate strikes against American bases in North Africa. n 31 December, anlan fight- ers forced down a British civil airliner which allegedly vio- lated Albanian territory. In addition to demonstrating a sensitivity to overflights, which Albania has heretofore been unable to prevent, the in- cidents demonstrate that Al- bania's air defense system has now reached operational status. While Albania's capabili- ties for expanding its air force will remain limited by a. lack of suitable airfields, this strategically located bloc country could be providing the USSR with additional early- warning coverage and could fur- SECRET Until 1955, when jet fight- ers were observed over Tirana. for the first time, the Al- banian Air Force had existed in name only. It is presently estimated to have two real' 't-s of FAGOTS MG-15's), based at Berat/Kucove airfield, which has a 6,600-foot concrete run-- way, completed in 1953. The recent completion of the esti- mated 9,200-foot runway at Preze suggests plans for increas- ing air strength. There are only five airfields in Albania with hard-surface runways; three of these runways are over 6,000 feet long. Albanian pilots have re- portedly received training in the USSR, and Soviet advisers 25X1 and instructors are at present assigned to the force.Fi_ 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600030001-3 PART II NOTES AND COMMENTS Page 5 20 Approved For Release 2005/02/17 : CIA-RDP79-0092 WO 1600030001-3 `"'.' SECRE T 11 9 January 1958 WEST GERMAN VIEWS OF BERLIN ACCESS PROBLEM West Berlin and Bonn offi- cials are apprehensive over the possibilities of the East German regime's assumption of greater control over access to West Berlin. Bonn believes infringe- ment of Allied access calls for firm resistance, particularly since such action may precede increased harassment or blocking of West German traffic to Berlin..', A curtailment of interzonal trade would be Bonn's most ef- fective retaliatory measure, but there would be some reluctance to adopt such a policy. Several top Bonn officials have urged American officials to consider turning back Allied military trains rather than sub- mit to control by East German officials, if they replace Soviet guards at East Zone check- points. These officials point out that acceptance of East German control would have ex- tremely unfavorable public re- percussions in West Germany and Berlin and would strengthen the Soviet concept of "two Germanies. " . Bonn fears that any con- cessions to the East German regime might lead to a new campaign of'harassment of West German traffic to Berlin, aimed at forcing Bonn to negotiate with the East German government. Bonn's objective is to maintain the supply of essential goods to Berlin, since West Germany pro- vides almost 90 percent of West Berlin's imports. While West German officials do not expect a major blockade at this time, increased interference would cut into West Berlin's stockpiling program and eventually place Berlin in a precarious situation. In the past Bonn has pre- ferred to remain in the back- ground in disputes involving the four powers over access to Berlin, in order not to jeoparaize the four-power status of Berlin. In the event of East German inter- ference with West German traffic, however, Bonn would probably be forced to consider retaliatory measures. The most effective move would be to stop iron and steel shipments to the East Zone, but the East Germans could re- taliate by cutting off vital deliveries of brown coal bri- quettes. Bonn expects to re- ceive 4,000,000 tons of brown coal from East Germany during 1958, about a fourth of which goes to West Berlin. e- WEST GERMANY- BERLIN COMMUNICATION ROUTES West German = Autobahn -Highway East German checkpoints: -.--