CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A001600070001-9
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42
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December 16, 2016
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February 8, 2005
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1
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Publication Date: 
February 6, 1958
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SUMMARY
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Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 CONFIDENTIAL CURRENT INTELLIGENCE. WEEKLY SUMMARY 25X1 p DECLASSIFIED CLASS. CHANGED TO: COPY NO. 16 OCR NO. 0031/58 6 February 1958 DOCUMENT NO. NO CHANGE IN CLASS. ^ DAT EVIEW ER: E' NEXT REVIEW DATE.: ENTRAL INTELLIGENCE AGENCY N)e 11 OFFICE OF CURRENT INTELLIGENCE q. ~aB CONFIDENTIAL 25X1 25X1 State Department review completed Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 Approved For Release 2005/02/17 : CIA-RDP79-00927Aff00070001-9 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-RDP79-00927AO01600070001-9 Approved For ReleasCg0 I I 79-0027 01600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 T H E W E E K I N B R I E F OF IMMEDIATE INTEREST USSR ATTEMPTS TO ISOLATE US ON SUMMIT MEETING ISSUE . . . Page 1 The Soviet Union is making a persistant bid to iso- late the United States on the issue of a summit meeting and to convince world public opinion that American "in- transigence" is the only obsticl1e to heads-of-government talks. Soviet leaders do not appear seriously interested in substantive negotiations on major points of difference with the West at this time, but probably believe Western rejection of talks on Soviet terms would eventually bring some Western European governments, acting under strong popular pressure, to seek independent accommodations with Moscow. The main objective of the Kremlin leaders at a summit meeting probably would be to secure a generalized statement on East-West relations or an "implicit under- standing" which they could claim represents Western rec- - ognition of the status quo in Eastern Europe. EGYPTIAN-SYRIAN UNION PROCLAMATION . . . . . . . . . . . . Page 3 The announcement of Egyptian-Syrian union as the "United Arab Republic" has caused a' strong reaction Yemen, however, is seeking some form of federation with e union. The Israelis are reacting with more determined and forceful assertions of their sovereignty over the Israeli-Syrian demilitarized zones. BULGANIN"S POLITICAL POSITION IN DOUBT . . . . . . . . . . Page 4 Premier Bulganin's position is in doubt, judging from the manner in which his nomination for election to the Supreme Soviet is being handled in the Soviet press. If Bulganin is removed from the premiership, Anastas Mikoyan, Frol Kozlov, and Khrushchev himself can be counted among possible successors. A "resigna- tion for reasons of health" would provide a device least likely to destroy the diplomatic effectiveness of his recent letters. CO TIAL 25X1 25X6 25X6 25X1 25X1 i Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 THE WEEK IN BRIEF Approved For Release 2005/0 ~~ C 1 DP79-00922701600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 PART I (continued) INDONESIA . . . . . . . . . . . . . . . . . . . . . . . . Page 6 Establishment of a rival Indonesian government appears to be imminent. Lt. Col. Hussein, head of the Banteng Council in Central Sumatra, made a lengthy speech of justification on 6 February. Such a government would probably seek to undermine the Djakarta government by subversion and economic sanctions. The new regime would face problems in maintaining unity among its members and would have to cope with retaliation by Djakarta,' which would include economic measures, subversive action, and, as a last resort, perhaps military attack. NOTES AND COMMENTS ANTI-WESTERN TREND IN YEMEN ....... . Page 1 25X1 The anti-Western trend in Yemen will probably ac- celerate now that Crown Prince Badr, principal advocate of Sino-Soviet bloc aid, has returned from Eastern Europe, Moscow, and Peiping with new diplomatic, aid, and trade agreements. Following Badr's return, Yemen apparently accepted a five-year economic development loan which the USSR valued at $35,000,000. The Yemeni Government, mean- while, thwarted a new conspiracy by northern tribesmen against the Imam on 22 January. The government, by al- leging the plot was British-supported has exploited it to reduce Western influence further. 25X1 SPAIN PREPARES MILITARY CAMPAIGN IN WEST AFRICA . . . . . Page 2 Spain may soon initiate a military offensive against irregular Moroccan Army of Liberation concentrations which have been in control of much if not most of Spain's West African territories since early December. France will probably lend some tangible support,but the precise extent of its commitments to the operation is unclear. While such an offensive may succeed in restoring temporarily some of Madrid's previous authority in the area, the ir- regulars' mobility and their skill in guerrilla warfare make a lasting military victory over them unlikely. SECRET 25X1 ii Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 THE WEEK IN BRIEF Approved For Release 2005/0 I P79-00927A001600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 25X1 PART II (continued) CYPRUS . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4 Recent events regarding Cyprus may make it extreme- ly difficult for Britain to prevent a serious deteriora- tion of relations with either Athens or Ankara. Follow- ing Turkey's rejection of British proposals for the is- land's future, Governor Foot has suggested that he visit Athens in an attempt to reach an accord with the Greek Government and Makari nc nn i ntar im mn~cvv~+o~ e rc y can restrain the underground organization. Meanwhile, a Turkish Cypriot leader has warned that Turkey may intervene directly if necessary ensure partition of the island. FOREIGN POLICY DIFFERENCES IN ISRAEL . . . . . . . . . . . Page 4 The Israelis regard union of Egypt and Syria as in- creasing the Arab threat to their security. In this con- text, the nature of Israel's relationship with the West-- the basic issue which provoked Israel's recent government crisis--very likely will take on renewed significance as 25X1 25X1 25X1 a subject of political controversy. HIGHLIGHTS OF BAGHDAD PACT MINISTERIAL COUNCIL MEETING . . Page 5 At the meeting of the Baghdad Pact Ministerial Coun- cil in Ankara from 27 to 30 January, a number of contro- versial issues were raised, including the Israeli, Al- gerian, and Kashmir problems. Only Iraq's demand that Israel's borders be readjusted to those specified in the 1947 UN resolution threatened to cause a crisis. The USSR and other states opposing the pact kept up a con- tinuous antagonistic propaganda campaign during the meet- 25X1 ing. F_ I WORLD REACTION TO THE US EXPLORER . . . . . . . . . . . . Page 7 Soviet comment to date on the successful launching of the first American earth satellite has acknowledged the peaceful scientific value of "Explorer," while stress- ing the continued Soviet lead in rocketry. Elsewhere in the Sino-Soviet bloc, comment has been deprecating, except in Poland, where the launching drew words of high praise. The event was hailed throughout the free world as a great contribution to world science, and with expressions of hope 25X1 SECRET iii Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 THE WEEK IN BRIEF Approved For Release 2005/02/17 : CIA-RDP79-00927 1Q1600070001-9 4. SECRET & 6 February 1958 PART II (continued) SOVIET ECONOMIC DEVELOPMENT IN 1957 . . . . . . . . . . . Page 9 The growth rate of the USSR's industrial produc- tion in 1957 was well above that of the United States and well above plan, although slightly below the 1956 level. The housing plan, which was ambitious, was over- fulfilled for the first time in Soviet history, re- flecting a shift in investment allocations in favor of the consumer. The nonfulfillment of production and investment goals in some important industries, however,- indicates that the attempt to push the housing, agricultural, defense, and heavy industry programs simultaneously continues to run into the problem of competing priorities. KHRUSHCHEV DOMINATES PAGES OF SOVIET PRESS . . . . . . . . Page 10 Only two years after his denunciation of the Sta- lin cult, Khrushchev has himself taken over a special niche in the Soviet press. Although be is not treated to the kind of adulation Stalin enjoyed in his later years, there are some signs that a new "cult of per- sonality" is forming. MIKHAIL A. MENSHIKOV--NEW SOVIET AMBASSADOR TO THE US . . Page 11 Mikhail A. Menshikov, former Soviet ambassador to India, arrived in the United States on 6 February to assume his new post as ambassador. A latecomer to the diplomatic corps, Menshikov is a foreign trade special- ist and is known for his work with the UN Relief and Rehabilitation Administration. His major aim in Washing- ton will probably be to stress the need for improved So- viet-Ameri relations through contacts between top leaders. COLLECTIVIZATION IN RUMANIA . . . . . . . . . . . . . . . Page 13 The Rumanian regime has stepped up its campaign to force landowning peasants and agricultural coopera- tives into collective farms, in a return to its policy for 100-percent collectivization which was temporarily suspended following the Hungarian revolt. The present effort is concentrated on regions east of Bucharest-- Constanta, Iasi, and Galati. Thus far about 45 percent of the total arable land in Rumania has been collectiv- ized, SECRET iv Approved For Releas? j 0 ftgy,71 f 16*W9-00927A001600070001-9 25X1 25X1 25X1 Approved For Release 2005/02!/J7.: CIA-RDP79-00927A001600070001-9 CRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 PART II (continued) HO CHI MINH'S VISIT TO INDIA AND BURMA . , . . . . . . . Page Ho Chi Minh's current state visit to India and Burma--his first trip outside the Communist bloc since 1946--is aimed at offsetting the favorable impression which South Vietnam's President Diem made on Indian officialdom during his tour of India last November. Ho will seek to halt the decline of North Vietnam's prestige in Burma which began during the last year and will probably attempt to get a strong statement from Nehru on the necessity of maintaining the Internation- al Control Commission, set up in Vietnam under the 1954 D 25X1 BURMESE PREMIER REJECTS COMMUNIST METHODS . . . . . . . Page 15 Prime Minister U Nu, in an important speech to his governing party, rejected Communist methods of building a socialist state and reiterated the party's commitment to a democratic socialism of the British Labor party variety. Nu s speech implied no change in Burma's neutral foreign oli p cy . NEW JAPANESE BUDGET RAISES DEFENSE EXPENDITURES . . . . . Page 16 The Japanese Government's national budget for the fiscal year beginning 1 April increases defense expendi- tures 19 percent over the previous year and contains a new appropriation for economic cooperation with South- east Asia. Increased veterans' pensions are being at- tacked by the Socialists, but the budget will obably be approved by the Diet without major changes. 25X1 CONTINUING TENSION IN CUBA . . . . . . . . . . . . . . . . Page 17 President Batista's efforts to create political peace in Cuba in preparation for the general elections on I June have produced little more than a surface calm. Revolutionary elements are stepping up their campaign of terror and have announced plans to sabotage industrial installations, including those owned by US interests, as well as sugar cane fields and tobacco warehouses. There are also new signs of plotting against Batista amone ., ..a _..s __ _ the rni 1 i tnrv th e of a hs -- --i i orsime. SECRET 25X1 v Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 THE WEEK IN BRIEF Approved F Release 2005I Q2L1 .j j RDP79-00927A001600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 PART II (continued) PATTERNS AND PERSPECTIVES SUDAN'S RELATIONS WITH THE SINO-SOVIET BLOC . . . . . . . Page 1 Sudanese Premier Abdullah Khalil has managed to re- sist the diplomatic and trade approaches of the -!^- vviet bloc. A Soviet offer of substantial economic aide and trade was shelved despite the objections of some mem- bers of the coalition government, and the recent rise in cotton sales makes it unlikely the offer will be recon- sid?:~ in the near future. The success of Communist ef- fort.- in the Sudan will be determined by the outcome of the parliamentary elections beginning late this month, the sale of Sudanese cotton, and the effects of Egyptian foreign policy on opinion in the Sudan. Khalil appears confident of his position and intends to stiffen his resistance to SECRET 25X6 15X1 25X1 vi Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 THE WEEK IN BRIEF Approved Forgl..epse 2005/0~ftRDP79-00927A001600070001-9 l1 4Mr.rr CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 PART III (continued) THE SPANISH OPPOSITION . . . . . . . . . . . . . . . . . . Page 4 An initial step toward eventual replacement of the Franco regime has been taken in Spain, where Socialists, Christi=an Democrats, and other opposition groups now are agreed on restoring the monarchy. This movement, at present representing only a fraction of the population, poses no immediate threat to the regime. It is aiming, however, at a national resistance front which would be capable of organizing a successor government if contin- uing adverse economic conditions lead influential mili- tary, business, and church supporters of the regime to abandon Franco. F__ I 25X1 SECRET vii Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 THE WEEK IN BRIEF Approved For rRReleasf f? 4i ;%I.p R79-009227A001600070001-9 CURRENT INTELLIGENCE WEEKLY StY AF: 6 February 1958 The Soviet Union, in a display of diplomatic activity highlighted by Bulganin's response to President Eisen- hower, is making a strong bid to isolate the United States and to convince world public opinion that American "intran- sigence" is the only obstacle to heads-of-government talks. The Soviet leaders do not ap- pear seriously interested in substantive negotiations on major points of difference with the West at this time. However, they probably believe they would derive important political advantages either from Western rejection of a summit meeting on Soviet terms or from Western acceptance of summit talks preceded by a minimum of preparation limited to procedural details and with discussion based on those topics which Khrushchev has termed "ripe for agreement." In the Soviet view, rejec- tion would probably lead even- tually to moves by some Western European governments in NATO, acting under strong public pressures, to seek independent accommodations with the USSR. On the other hand, the main objective of the Kremlin leaders at a summit meeting would be to secure a general- ized statement on East-West relations or an "implicit understanding" which they could claim represents Western rec- ognition of the status quo in Eastern Europe. Bulganin's action in ad- dressing his 2 February note only to President Eisenhower, in contrast to the two previous USSR ATTEMPTS TO ISOLATE US ON SUMMIT MEETING ISSUE series of letters which were sent simultaneously to all NATO heads or government and to all UN members, served to focus world attention on the Soviet-American dialogue on summit talks, This letter attempted to create the impression that the President's 12 January letter was not responsive to previous Soviet proposals and that the United States is seek.'- ing to evade negotiations with the Soviet Union by posing unac- ceptable conditions. Bulganin repeated the standard Soviet position for refusing to dis- cuss German reunification and the status of Eastern Europe, and suggested that in raising the subject of Eastern Europe,' the United States had set it- self up as "arbiter" of social and economic regimes through- out the world. The Soviet premier-fol- lowed the line set by party chief Khrushchev in his 22 January speech at Minsk in replying to President Eisen- hower's proposal to use outer space only for peaceful pur- poses. Asserting that this issue must be solved as part of "the general problem of the prohibition of nuclear and rocket weapons," Bulganin stated the Soviet Union is willing to dis- cuss the question of controlling intercontinental inissiles, pro- vided the Western powers are prepared to agree to the cessa- tion of nuclear tests, the banning of nuclear weapons, and liquidation of foreign military bases. CONFIDENTIAL Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 OF IMMEDIATE INTEIEST Page 1 of 6 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 ___SECRET - CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 On the question of prep- arations for a summit meeting, Bulganin again rejected a foreign ministers' conference and repeated the charge in his 8 January letter that a confer- ence on this level might create additional obstacles to a heads- of -government meeting. He contended that after agreement to a summit meeting is reached in principle, "procedural and other questions" could be solved "without special dif- ficulties'! through regular diplomatic channels. During the past week Moscow has concentrated its efforts to exploit signs of Western disunity on the ques- tion of preparatory steps to be taken before a meeting on the heads-of-government level, Soviet Ambassador Malik told Acting British Prime Minister Butler on 28 January that the USSR is "elastic" on the composition and date for a sum- mit conference. Khrushchev's state- ment to the London Times, published on ruary, was de- signed to display Soviet flexibility on this point, He said the Soviet Union is willing to post- pone the top-level meeting if the date of "within two or three months"--sug- gested to the West in Bulganin's Jan- uary letters--is "too - soon. 11 The failure of Bulganin's 2 February letter to provide any further details for a heads-of-govern- ment meeting reflects the Kremlin's confi- dence that the United States will eventually be forced by its European allies, who are subject to strong popular pressures, into dropping its insistence on adequate prepara- tory work by a foreign ministers' conference as will as through diplomatic channels. The Kremlin appears, however, to have left a door open in event the bid for summit talks with a minimum of preparations fails. Khru- shch6v's observation in his 22 January Minsk speech that the French reply to Bulganin called for a preparatory foreign min- isters' conference which would not discuss "questions of substance," in contrast to the American position, suggests that Moscow might be prepared to agree--if eventually necessary COUNTRIES INCLUDED IN RAPACKI PLAN SECRET 25X1 PART I Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 OF IMMEDIATE INTEREST Page 2 of 6 Approved For Release 2005/02 14 7 ECREl P79-009271600070001-9 CURRENT TNTFT,T.]?:G1Nr.1, WEF,TCT'. SUM4MARV 6 February 1958 to convoke a heads-of-govern- ment meeting--to foreign min- isters' talks limited to such questions as composition, agenda, and other procedural matters,; Bulganin's 2 February let- ter repeats the same proposals suggested as possible summit agenda subjects in his January notes. The Soviet bloc has ap- parently been encouraged by the public response in the West to the Rapacki plan for a "nu-- clear.-free zone" in central EGYPTIAN-SYRIA! UNION PROCLAMATION The union of Egypt and Syria, into the "United Arab Republic" (UAR), declared last week, remains an amorphous en- tity despite the list of "prin- ciples"--"constitutional out- line"--announced on 5 February. The long-range success of the union will be determined very largely by the content Na.sir gives it during the transition- al period when he has practical- ly absolute powers. Its immedi- ate psychological impact, how- ever, is a, victory for the radi- cal nationalism identified with Nasir. It has caused a strong reaction among the Egyptian dictator's enemies in the other Arab states, This is not to say that enthusiasm for the union is un- mixed or universal, even in Egypt and Syria, Commercial interests in the two countries are apprehensive; the Syrians in particular may eventually be called on to give up their re'.- atively free enterprise systeri with its sound currency in favor of the more regulated Egyptian- style economy and the weaker Egyptian pounds A An on for-- e'ign exchange developed last week in northern. Syrian centers, and the Syrian pound has lost about 10 percent of its value despite efforts of the Centra_ Bank to support it, The Communist rank and file in Syria. also appear worried and resei.tful over the move; some street fights hive been reported between Communist and radical nationalist adherents? Com- munist party leader iCha.lid Bak- dash has issued a. lengthy "clari- fication" of the party's stand, which does not endorse Egyptian- Syrian union directly although it of course claims that the Communists remain in the van- Arab unity The far seem to be the plae'es w ;e:L e ti.e maximum sponta.necu3 c,Athus ias has developed. Yemen's Crown Prince Badr arrived in Cairo on 5 February to ta.l-. "com- plete" union with the Egyptiants. He is reported to,have asked that Yemen, while preserving its economic and domestic institutions, merge its de- fense, foreign affairs, "na- tional economy;" and public SECRET Europe and on 1 February, after five days of talks between Gromyko and Rapacki, the Soviet Union and Poland declared their willingness to discuss "an ef- fective system of controls" as part of the plan. A high Pol-- ish Foreign Minisltry official told Ambassador Beam on 3 Febru- ary that as a result of the meeting, Poland will undertake new diplomatic initiatives with- 25X1 out "propaganda fanfare" in pressing the plane 25X1 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PA 1T i 'CIF T..aa1YAJJi ta rii.Nr, r~TA~_.~E INIT r, 1 ,. vE' l.i -, S, n G.1.a r i Ji, dx ...a Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 'Iftwomw .SECRET C;JRRIENT INTELLIGENCE' 'MEEKLY SU..":.tA Y At. 6 February 1958 education with the UAR. Ad- herence of the medieval Yemeni monarchy to the "United Arab Republic" in an obvious at- tempt to make the best of both worlds, could result in a net loss of impact insofar as it would seem to turn the union into just another kind of Arab League? In Kuwait, with its large proportion of Palestin- ians and Egyptian teachers, a sheep was sacrificed in honor of union in the main square amid general rejoicing. All parties meanwhile are becoming more nervous over new incidents on the Israeli-Syr- ian border. The Israelis have for some time been engaged in mine-clearing and other opera- tions in the Israeli-Syrian demilitarized zones, and have rejected UN Truce Commission urgings to limit their activi- ties there. The Israelis in- sist on exercising their claim to sovereignty over the zones, and are reported to have move6. troops along the Syrian border, presumably to be prepared should the Syrians be provoked into more clashes. A new incident on the Israeli-Jordanian border has also been reported, The USSR both publicly and privately continues to treat the union with reserve. Mikoyan declined to discuss the union at a Ceylonese Embassy reception on 5 February, The Soviet press and radio continue factual broad- casts without comment. The TASS Cairo correspondent con- tinues to transmit enthusiastic assessments by the Cairo press, but Moscow has not retransmit- ted the material. However,, the press in Warsaw, Prague, Bucha- rest, and Tirana have hailed the new state as the "first step" toward a union of all Arab peoples. 25X1 BULGANIN'S POLITICAL POSITION IN DOUBT Premier Bulganin?s politi- cal stature may have suffered severely, judging from the man- ner in which his nomination for election to the Supreme So- viet is being handled in the Soviet press, According to the American Embassy in Moscow, he was not listed among the Soviet leaders proposed for candidacy in the firs-, round of nominations re- ported in the press on 2 Feb- ruary, Presidium member Shver- nik was nominated in the Moscow electoral district which elected Bulganin in 1954, When the press on 4 February included him in listing the nominations of all presidium members, the treatment given Bulganin was plainly perfunctory. Pravda alone, among the central press, noted his nomination and then only for one district each in the Ukraine and Latvia. Pravda and Izvestia editorials on 2 February made special note of the nominations of seven other presidium members, and editorials in army and agricultural news- papers on 4 February mentioned 14 of the 15 presidium members, excluding Bulganin, While nomination and elec- tion to the Supreme Soviet is pro forma in the case of pre- sidium members, the number of districts which offer them nominations and press reportage of the proceedings usually pro- vide a carefully contrived re- flection of hierarchical rank. Bulganin was said to have wavered in his support of Khru- sbchev during last June's bat- tle in the presidium, and there were indications soon there- after that his political posi- tion was shaky, Although he had seemed to recover some of SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART I OF IMMEDIATE INTEREST Page 4 of 20 Approved For Release 2005/02/17 : CIA-RDP79-009227AO01600070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUD1tARY 6 February 1958 his lost prestige more recent- ly; these latest signs may foreshadow his imminent down- grading and removal from the premiership. Such a step would presum- ably be staged in a manner least likely to destroy the effective- ness of the diplomatic maneu- vers with which Bulganin has been closely involved by his series of letters to foreign governments. A "resignation for reasons of health" might provide the most convenient de- vice. If Bulganin is demoted from the premiership, his re- placement would almost certain- ly be one of the 14 remaining full members of the party presidium. Many of these can probably be counted out either because they are rel- atively unknown out- side party ranks or because they lack adequate government- al experience. There is probably no such thing as a logical successor--Bulganin himself was a dark- horse in succeeding Malenkov in 1955. But on a list of pos- sible successors three names would stand out--Anastas Mikoyan, Frol Kozlov, and Khru- shchev. Though Mikoyan?s Armenian origin may be a disadvantage to him where the premier?s post is concerned, he has had more ex- perience in the Council of Min- isters than any other Soviet leader and, in public, has seemed to work well in tandem with Khru- shchev. Kozlov, a younger man, was appointed chairman of the Russian Republic Council of Min- isters last December--a move conceivably intended to groom him for Bulganin's post. A further possibility is Khrushchev himself. He has long since moved into the area of pol- icy-making which formally be- longs to the premier and his as- sumption of the post would hard- ly alter the existing political facts. Such a likelihood is, however, lessened by the fact that in taking the premiership Khrushchev would assume a large administrative and ceremonial burden, he would be without the kind of foil which he seems to favor, and he would effectively destroy the remaining vests es of group rule. I I SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 PART I OF IMMEDIATE INTEREST Page of Approved For Release 2005/02/17 : CIA-RDP79-009201600070001-9 SECRET CURRENT INTELLIGENCE, WEEKLY SUMMARY 6 February 1958 Establishment of a rival Indonesian government appears to be imminent. Lt. Col. Hussein, head of the Banteng Council in Central Sumatra, made a lengthy speech of justifica- tion on 6 February. The an- nouncement follows by several days a warning given President Sukarno that unless he agreed to eliminate pro-Communist ele- ments from the Djakarta govern- ment, the dissidents would pro- ceed with their plans to pro- claim an anti-Communist rival government. Sukarno is still in Japan, although he is planning to cut short his vacation there. Presumably, the dissident cabinet would be staffed as pre- viously announced with Sjafrud- din, a leader of the Masjumi and former governor of the Bank of Indonesia, as prime minister. The foreign minister is ex- pected to be Col. Simbolon, who sparked the dissident movement in Sumatra. According to these plans, other ministerial posts would be held by Masjumi lead- ers who have gone to Sumatra :.n recent weeks and by various dis- sident commanders from Sumatra and North Celebes who have defied the Djakarta government for more than a year. The dis- sidents face the problem of main- taining unity among themselves. They have already had some dif- ficulty in effecting compromises between conservatives and activ- ists and probably will encounter regional jealousies. The Djakarta government can he expected to retaliate by intensifying its efforts to sow disunity among the dissidents and to retain the loyalty of those military and civilian elements still not committed to the anti-Djakarta groups. It will also make greater efforts to obstruct barter trade from the dissident areas to foreign ports. Almost certainly Dja- karta would cut off budgetary support to defiant areas in the hope that the necessary economic adjustments would cause the dissident movement to collapse shortly. Communist labor organiza- tions in Central and South Su- matra. undoubtedly will try to create trouble for the local administrations, although in doing so their leaders probably face arrest and imprisonment by the anti-Communist military com- manders in both areas. The Com- munists are well entrenched in oil and agricultural laborers' organizations throughout Sumatra. Sukarno and his supporters might also resort to more force- ful retaliation, including a limited naval blockade, air strikes, raids, and subversion. In these efforts, the government on Java will have important assets in the form of the sub-- stantial Javanese population in South Sumatra, the Communists who are strong in the oil and estate labor unions, and mili- tary units scattered about Su- matra which are still loyal to Djakarta. SECRET 25X1 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART I OF IMMEDIATE INTEREST Page re of Approved For Release 200!pp P79-00927A 01600070001-9 CONFIDENTIAL SAUDIA ARABIA SULTANATE OF MUSC 0 AND OMAN L MILES 200 +~+/iO\Najran 24438 6 February 1958 NOTES AND COMMENTS ANTI-WESTERN TREND IN YEMEN The anti-Western trend in Yemen will probably accelerate now that Crown Prince Badr, principal advocate of Sino-So- viet bloc aid, has returned from an extended visit to East- ern Europe, Moscow, and Pei- ping with new diplomatic, aid, and trade agreements. Shortly after Badr's return to Yemen, the Yemeni charge in Cairo an- nounced that Yemen and the USSR had signed "a number of economic and trade agreements" during the two-week visit of Soviet Ambassador Kiselev, who resides in Cairo, and a party of 27 Soviet experts o If the charge's announcement is cor- rect, the agreements presum- ably include a previously of- fered five-year economic de- velopment loan, which the USSR valued at $35,000,000. Agreement may also have' been reached on establishment of a resident Soviet diplomatic mission. The proposals offered by the Soviet ambassador are reported to have included an aerial survey of "natural Yemen," i.e., southern Arabia including British-controlled Aden Protec- torate. The American consul in Aden, who has been on a trip to Yemen, reported that a So- viet photo team would leave for a tour of Yemen's border areas on 27 January. ......... Protectorate boundary / FEBRUARY 1958 - - Indefinite boundary AT YEMEN \ o Shibam RAN A'-0 0 \'-J EASTERN ADEN PROTECTORA (U.K.) SsIif SANA Narih Hodeida CURRENT INTELLIGENCE WEEKLY SUMMARY l.7 /mow-J^ Ti_ _!-Dhaia ...,...,....,-,.-,.r ~, r?5 ADEN PROTECTORATE e2 FRENCH ~endeb SOMAULAND ADEN COLONY (U.K.) CONFIDENTIAL 25X6 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART II NOTES AND COMMENTS Page 1. of 20 Approved For Release 2009ETA-RDP79-00901600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 The Yemeni Government, meanwhile, thwarted a new con- spiracy by northern tribesmen against the Imam on 22 January. The plot, which does not ap- pear to have been well devel- oped, is said to have been sup- ported by a group of Yemeni patricians and merchants who opposed Crown Prince Badr's claim to the succession. Rumors in the bazaar that the plotters were supported by Britain and the United States may reflect a Yemeni Government effort to exploit the incident to reduce Western influence in Yemen further, and justify turning to the USSR for more aid against "imperialism." Yemen also used the incident to request the re- call of the British charge. Yemen's relations with Britain may be expected to de- teriorate further, with more serious attacks along the Aden Protectorate frontier, and spreading subversion within the SPAIN PREPARES MILITARY CAMPAIGN IN WEST AFRICA Spain may soon initiate a military offensive against ir- regular Moroccan Army of Libera- tion concentrations in the Ifni enclave, Spain's Southern Moroc- co protectorate, and Spanish Sahara. France will probably lend some tangible support, but the precise extent of its com- mitments is unclear. The ir- regulars--a mixture of profes- sional guerrillas from Morocco and dissident local tribesmen --have controlled much if not most of Spain's West African territories since early Decem- ber, when they forced a Spanish withdrawal to five coastal de- fense perimeters. frequent incursions by the SECRET 25X1 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 PART II NOTES AND COMMENTS Page 2 of 20 Approved For Release 200 RDP79-00927A001600070001-9 CTDRENT INTELLIGENCE WEEKLY SUMMAI?1 6 February 1958 guerrillas into Mauritania and western Algeria and fear the consequences should Spanish power disappear entirely from the area, France's participa- tion is likely to be limited. Paris is known to be anxious to minimize friction along the Moroccan-Algerian border and to avoid arousing the Moroc- cans, whom some French offi- cials apparently still hope to use as a channel to the Algeri- an rebels. In addi- tion, all-out French involvement might have repercussions in the National As- sembly. Any direct French action will thus probably be restrict- ed to stepped-up patrol activities in border areas and to limited "hot pur- suit" forays into Spanish Sahara. In any event, French forces will almost certainly not be used in the protec- torate--where France recognizes the sov- ereignty of Moroc- France has an estimated 4,000 to 5,000 men in Mauri- tania, and there are believed to be at least 2,000 to 3,000 additional troops available in the extreme western triangle; of Algeria Estimates of Army of Liber- ation strength still vary x re- ly about 7, armed guerrillas throughout the 25X1 25X1 Spain, although hampered by bad weather and logistical problems, has recently rein- forced its West African gar- rison and now has an estiinated 7,000 men in Ifni and another 8,000 troops dispersed among the four strong points in Southern Morocco and Spanish Sahara. Forty bombers and transports, which have given Spain unchallenged air control, may soon be augmented by about a dozen vintage German fighters. Major elements of the active Spanish fleet continue to be deployed in West African waters. Ifni - Spanish Sahara area ap- pears reasonable orate. The guerrillas' mobility and ability to lose their identi- ty among local tribesmen and, where practicable, to melt across Moroccan frontiers, make the ultimate success of any military operation against them highly problematical. SECRET 25X1 25X1 25X1 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART II NOTES AND COMMENTS Page 3 of 20 Approved Fords se 2005/02/17 : CIA-RDP79-00927A001600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 Recent events regarding Cyprus may make it extremely difficult for Britain to pre- vent a serious deterioration of relations with either Athens or Ankara. While it is prob- able that Britain would, of necessity, choose to side with Turkey in case the issue is forced to a decision, London will undoubtedly continue try- ing to placate both allies by strenuous diplomatic efforts. Turkey's recent rejection of British proposals for Cyprus, advanced while Foreign Minister Lloyd was in Ankara, exempli- fies the intransigent demand of the Turks for partition. Following the Turkish action, Governor Foot proposed that he visit Athens in an attempt to secure the agreement of Arch- bishop Makarios and the Greek Government for proposals de- signed to bring Makarios back to Cyprus and to proceed to- ward a form of self-government. Due to the current situation, London's long-awaited -policy statement on Cyprus, which may be delivered next week, prob- ably will be noncommittal and lacking in details, Violence might still be prevented if the. Cypriot Eth narchy would and could convince the leader of EOKA to restrain his followers. Some members of the ethnarchy, aware that a large segment of world opinion favors self-determination for Cyprus and that the British Labor party is on record as favoring its eventual implemen- tation, may consider that a program of violence would be detrimental to their cause. In addition, Greek Cypriot right- wing leaders would be either eliminated or so restricted in their activities that Communists might increase their influence on the island. For these rea- sons, the ethnarchy may be con- sidering the substitution of some form of passive resistance for an all-out EOKA campaign of terrorism. Meanwhile, the Turkish Cypriot underground organiza- tion has called for a campaign of passive resistance and non- cooperation with the British but has warned that further vio- lence will be met with force. The leader of the "Cyprus is Turkish" party, Fazil Kuchuk, on returning to Nicosia from Ankara, emphasized the identity of interest of Ankara and the Turks on Cyprus and declared that if the Turkish minority proved inadequate for securing partition, Turkey "is ready to step in to help _UT .?IF FOREIGN POLICY DIFFERENCES IN ISRAEL The Israelis regard union of Egypt and Syria as increas- ing the Arab threat to their security. In this context, the nature of Israel's relationship with the West--the basic issue which provoked the country's government crisis in late Decem- ber--will assume renewed signif - ica.nce as a political issue. This issue remained unresolved after the crisis, since the SECRET Approved For ReleR QA5A91~o - 9 79-00927A001600070001-9 Page 4 of 20 25X1 X1 Approved For F le use 2005/02/17 : CIA-RDP79-00927AO01600070001-9 ......... .. .. . SECRET CURRENT INTELLIGENCE SUk,, 6lt.tlY 6 February 1958 "new" government has the same membership as the last, and the members of the coalition who oppose Prime Minister Ben-Gur- ion's policy of closer associa- tion with Western powers have not altered their fundamental views. The controversy may be silenced publicly for the time being, but Egyptian-Syrian union may bring it into the open again. Achdut Haavoda and Mapam, the left-wing labor parties in the 'coalition, have long advo- cated neutrality in the conflict between East and West, partly because of their ideological affinity for the Soviet "home- land of socialism" and partly because of their distrust of the capitalist West. The fact that Achdut Haavoda was bold enough last December to jeop- ardize the government by publi- cizing a planned "arms purchas- ing" mission to West Germany is indicative of the strength of neutralist sentiment in Israel. Since the Middle East now is a major theater of the East- West conflict, the validity of neutralism has increased in the eyes of its Israeli adherents. They reason that while formerly Israel had only to contend with a relatively weak, divided Arab world, the situation has changed as the USSR has been providing large-scale support to Syria and Egypt--support which prob- ably will continue following their union. The neutralists argue that Israel does not en- joy comparable strong bucking from the West; therefore an "independent" foreign policy should be adopted in order to propitiate the USSR and possi- bly improve Israel's relations with the Arabs. Ben-Gurion, on the other hand, advocates closer relations with the West to counter Soviet influence among the Arabs--a policy of meeting strength with strength, Accordingly, he has sought a guarantee of Israel's security through overtures to the United States and other NATO countries and has achieved a close working relationship with France. On the economic level, similar approaches have been made, such as the Israeli statement recently circulated to all delegates to the Organ- ization of European Economic Cooperation asking for "grad- ual integration of Israel into existing or emerging European organizations for economic cooperation." While this policy very likely will be continued by the present government, Ben-Gurion also realizes Israel cannot speak up very bcldlyto Moscow-_ as shown by Israel's very mild reply to the Bulganin note of last December. As a result both of this realization and of the recent crisis, Ben-Gurion may become more secretive than ever about his diplomatic moves to- ward the Nest, which may in turn lead to increased criticism from HIGHLIGHTS OF BAGHDAD PACT MINISTERIAL COUNCIL MEETING All delegations at the meeting of the Baghdad Pact Ministerial Council which con- vened in Ankara from 27 to 30 January apparently were satis- fied with its modest achieve- ments. Their satisfaction may have resulted from the atten- dance of the high-ranking Amer- ican observer delegation, which SECRET Approved For RelgT 0 #1~(.), 41 79-00927A001600070 Pago 00011 95 of 20 25X1 Approved For Release 200 RDP79-00927A001600070001-9 WWI- CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 BAGHDAD PACT ORGANIZATIONAL CHART COUNCIL OF MINISTERS COUNCIL DEPUTIES Liaison Committee Liaison Committee Drafting Group Combined Military Planning Staff Military Secretariat Public Relations Working Group Economic Committee Countersubversion Committee Permanent Subcommittees Agriculture Trade Health Communications Ad Hoc Working Groups Budget & Administration Committee Secre1tarene1 Public Relations I Political & Administrative Division I Division made strong statements support- ing the pact. At the meeting, the Com- bined Military Planning Organ- ization was redesignated the Combined Military Planning :,taff, which may lead eventually to a joint command. The new staff, to be headed by Turkish General Ekrem Akalin, will not have troops under its command, but a staff exercise will be held in the near future. The Military Committee has directed the staff to re- view what the extent of the pact area's involvement would be in the event of a global war, to make a reconnaissance of defensive areas, to appraise the effects of nuclear attacks, to determine land force require- Economic Division r------J C ountersub- version Office Security Organization ments, and to study the types and nationality of needed units. A number of controversial issues were raised during the meeting, including problems concerning Israel, Algeria, and Kashmir. However, only Iraq's insistence that an official stand be taken favoring the re- turn of Israel to the borders recommended by the 1947 UN res- olution threatened a crisis. After considerable opposition developed, Iraq reluctantly withdrew its recommendation. Iran's earlier threat to withdraw from the pact has been headed off, temporarily at least, by the Shah's satisfac- tion over the outcome of the meeting. He apparently is con- vinced that Iran achieved its SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART II NOTES AND COMMENTS Page 6 of 20 Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 SECRET---._._ . 6 February 1958 objectives and that approval was given for expansion of its military forces. The delegations were dis- turbed by the prospect of the Syrian-Egyptian union. They feared, however, that attempts by pact members to oppose union would only assure its success and possibly cause Syria and Egypt to secure more backing from the USSR. Moscow sought in advance to undercut the meeting by pro- testing to Pakistan on 23 Janu- ary against the alleged estab- lishment of American missile bases there and offering "dis- interested" economic aid if Pakistan would change its poli- cy toward the Baghdad Pact and SEATO. The USSR also promised Iran a "new" program of econom- Communist World Reaction Soviet propaganda media promptly reported the success- ful launching of the American "Explorer," but comment has been light and the subject has been treated routinely in newscasts. The authors of initial comments, like those of Moscow's early commentaries on Sputnik I, are mostly scientists. Soviet comment has acknowl- edged the peaceful scientific value of the earth satellite, while stressing the continued Soviet lead in rocketry. It has sought to give the impression of graciously welcoming the American achievement and peace- ful competition, but congratu- lated the United States scien- tists in a patronizing manner. Given widest publicity have been the congratulatory telegram from the Soviet Academy of Sciences and a commentary by Soviet scien- is aid which would vanish "any- thing you want" without strings. The USSR devoted a large volume of propaganda to the meeting. Moscow, along with other states opposing the pact,. sought to intensify opposition sentiment in the area by charg- ing that the Ankara meeting was an American attempt to force rocket and nuclear bases on pact members and by alleg that the meeting revealed splits among pact members. The USSR continues to emphasize that the peoples of the area and the Moslem holy places are endan- gered by Western military ties in contrast to conditions which would arise if the Soviet pro- posal for making the Middle East a "zone of dace " were adopted. tist Blagonravov pointing out that the Explorer is of "very inconsiderable" size as compared with the sputniks, and that the American launching was a less momentous event than its Soviet precursor. 25X1 Presidium member A. I. Mikoyan made the first comment by a member of the Soviet hier- archy on the subject while at- tending a Ceylonese Embassy re- ception. While noting he w- "pleased" by the American achieve- ment, he chided that "of course we waited some time for this event to take place. But it finally happened. That is good, It's peaceful competition, you know." Mikoyan made it clear that Russia will send up "sev- eral more" sputniks. With the exception of Po- land, Eastern European comment has been generally deprecating, stressing that the Explorer was SECRET ti iI NOTES AND COMMENTS :page 7 of 40 Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 Approved For Release 2005/02/17: CIA-RDP79-009, 7A001600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 launched four months after the first sputnik, that it is tech- nically inferior to the Soviet satellites, and that ,it was de- signed by a former Nazi. The Polish press, howeve;, had words of high praise for the American achievement, saying the Ameri- cans "deserve full credit for having managed to convert a military missile into a satel- lite rocket within a few months:' One'Polish scientist was quoted aaying: "This is a far more important thing,(Sdientifically) than the other one up there--a useless piece of metal with a dead dog in it." Polish Premier Cyrankiewicz also hailed the launching as a "fine scientific achievement." Peiping's propaganda re- action has been the most caustic so far. People's Dail edito_ rially called the Ex_ plovers-- launched by "relatively back- ward" American racketeers--a far cry from the Soviet sputniks and pointed to the fact that it was launched by "only a medium- range rocket" unlike the Soviet ICBM. Non-Communist reaction was almost unanimously favorable. "Relief and satisfaction" sum up the public and official re- action in Western Europe. The three powers most concerned with possible summit talks stressed the achievement in the perspec- tive of its probable influence on such talks. The British For- eign Office is "delighted," and the press saw increased prob- ability of early summit talks. French diplomatic officials called the Explorer an element favorable to an international detente and also to convocation of a summit conference. Both the West German Gov- ernment an0.. the opposition hailed the Explorer. The Chris- tian Democrats believe the United States can now meet the Soviet Union on equal terms, and mili- tary circles were quoted as re- lieved at the restoration of the military equilibrium. Opposi- tion Socialists said that neither East nor West can draw decisively ahead in the arms race and called for new disarmament negotiations. Asian-African response to the launching has been both lim- ited and delayed. Comment to date has generally expressed satisfaction and the hope that the scientific advances will help lead to a lessening of in- ternational tensions. All Japanese papers, while admitting the smaller size of the Explorer, praised its quality and pre- dicted that America, would over- take the Russians. They feared, however, the development of a "space race"and called for sum- mit talks. Indonesian Foreign Minister Subandrio congratulated the United States and expressed hope that both America and Russia, will use their scientific knowledge for humanitarian pur- poses. Australian Prime Minister Menzies declared that the launch- ing "now greatly strengthened" President Eisenhower's proposals for peaceful use of investiga- tions of outer space, and the press called the launching a "decisive move in the cold war," declaring that "it is in the psychological sphere that the American satellites will be most felt and welcome." In both Syria and Egypt the launching took second place to the proclamation of a "United Arab Republic." In both coun- tries, though, the American suc- cess was noted but invidious com- parisons with the Russian sat- ellites were emphasized. SECRET PART I I Approved For Relea rng5//7C f9-00927A001600070Q9k 8 of 20 Approved Fo Rwellease 2004/ ' /" CAA-RDP79-0092 01600070001-9 6 February 1958 The growth rate of the USSR's industrial production in 1957, according to a report of the Central Statistical Ad- ministration, was well above that of the United States and well above plan, although slightly below the 1956 level. The rousing plan, which was ambitious, was overfulfilled for the first time in Soviet history, reflecting a shift in investment allocations in favor of the consumer. The -nonfulfill- ment of production and invest- ment goals in some important industries, however, indicates that the attempt to push the housing, agricultural, defense, and heavy industry programs simultaneously continues to run into the problem of com- peting priorities. The announced rate of in- crease in total industrial pro- duction was 10 percent in 1957 as compared with 10,7 in 1956, Growth rates in most instances were below 1956 rates and be- USSR: OUTPUT IN SELECTED BASIC INDUSTRIES COAL MILLION METRIC TONS 1950 '55 '56 '57 '60 ACTUAL ORIGINAL GOAL ROLLED STEEL MILLION METRIC TONS 35.3 37 1950 '55 '56 '57 '60 ACTUAL ORIGINAL GOAL ELECTRIC POWER CRUDE OIL BILLION KILOWATT HOURS 320 MILLION METRIC TONS low the rates necessary to en- sure achievement of original 1960 goals. The rate of in- crease of national income, in- fluenced by a fall in agricul- tural production from the un- usually high level of 1956, dropped from 12 percent in 1956 to 6 percent in 1957. Progress in meeting planned output goals in heavy in- dustry was uneven, with short- falls reported in electric pow- er, natural gas, pig iron, and crude steel, but with overful-? fillment in coal, petroleum, finished steel, cement, and mineral fertilizers. The over- all success of the 1957 plan was achieved in part merely by setting more modest levels for the year's goals, in contrast to the very high levels set in previous years. Total capital investment, which increased 12 percent in 1957 in contrast to an initial planned goal of only 8 percent, 1950 '55 '56 '57 '60 ACTUAL ORIGINAL GOAL CEMENT MILLION METRIC TONS 22.524.9128'-9 1950 '55 '56 '57 '60 ACTUAL ORIGINAL GOAL SECRE 7 1950 '55 '56 '57 '60 ACTUAL ORIGINAL GOAL CRUDE STEEL MILLION METRIC TONS 68.3 45.3 48 1950 '55 '56 '57 '60 ACTUAL ORIGINAL GOAL 25X1 m Approved For Release 2005/Q /1 CIA-RDP79-00927A001600070001-9 i ARC I I NOTES Ar O. ME T'S ;`age 9 of 20 Approved For Release 200 Likf A -RDP79-0091600070001-9 6 February 1958 was still considerably below the announced 17-percent in- crease in investment in 1956. The investment plans for com- pletion of new production cApac- in the coil mining, iron ore mining, cement, and ferrous metallurgical industries were underfulfilled. These indus- tries, in which plans for new capacity also were not met in 1956, were cited by Pervukhin in early 1557 .as being bottlenecks. Shortfalls- in these areas are in sharp contrast to the suc- cess in meeting the ambitious housing in- vestment program and the modest plan for increasing over-all non-housing construc- tion. The increase in the number of workers and employees in 19,57 equaled the 1956 in- Soviet comparison of 1957 agricultural production with the relatively poor performance of 1953 in the official plan report indicates Soviet dis- appointment over 1957 achieve- ments. The total grain harvest --26 percent above the 1953 level--produced no increase over 1955 in the amount of grain REPORTED 1951- 55 I1956 1957 ...-.. G- 1957 I PLAN GROSS INDUSTRIAL PRODUCTION 13.1 10.7 10.0 7.1 LABOR PRODUCTIVITY 7.0 6.9 6.5 5.4 COAL 8.4 10.0 7.9 6.3 ELECTRIC POWER 13.3 13.0 9.1 9.9 ROLLED STEEL 11.1 7.0 5.8 3.9 CRUDE STEEL 10.7 7.0 4.9 6.0 CEMENT 14.1 11.1 16.0 12.4 CRUDE OIL 13.3 18.0 17.3 15.7 crease, but industrial labor productivity, although above plan, rose only 6.5 percent in 1957 as compared with 8 per- cent in 1955 and 7 percent in 1956. A rise in the rate dur- ing the second half of 1957 suggests the possibility of fur- ther improvement under` the new- managerial- 'organization and as thereorganization'of the wage structure?continues. 25X1 procured by the state. Meat production increased at a some- what higher rate than in 1956, but the increase in milk pro- duction was slightly less than in 1956. Neither grew at a rate which would guarantee ful- fillment of the Khrushchev meat and milk goals. (Prepared by ORR 25X1 Only two years after his denunciation of the Stalin cult, Khrushchev has himself taken over a special niche in the Soviet press, At no time since he became first secretary of the party in 1953 have his activities and pronouncements commanded so much attention in Soviet propaganda as in recent months. Habitually sensitive to the realities of political power, the press expends little effort on maintaining the ap- pearances of "collective leader- ship." Khrushchev's conspicuous place in Soviet publications seems to derive, for the most part, from his expanded role as principal policy spokesman for SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 PART II NOTES AND COMMENTS Page 10 of 20 Approved For wamw elease 2005/0 CfRDP79-00927A0001600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 the regime rather than from a contrived propaganda build-up- It falls well short of the sanctified eminence enjoyed by Stalin in his later years. Nevertheless, there are some signs--notably in the recent attempt by the party journal Kommunist to.magkif y Khru- s ichev'spart in the World War II victory at Stalingrad--of an incipient "cult of person- ality" forming around the party chief Because of the volume of Khrushchev?s pronouncements and his increasingly close iden- tification with major policy positions--whether in agricul- tural organization or litera- ture--the phrase "as Comrade Khrushchev has pointed out" occurs with growing regularity in the soviet press. In his frequent excursions outside the Soviet capital, he manages to publicize himself and his familiarity with local prob- lems, as Stalin never did, while also receiving with no apparent pangs of modesty the honors due a powerful figure. During his visit to Kiev last December, where he domi- nated an anniversary session of the Ukrainian Supreme So- viet, it was reported that flowers were scattered in his path, and at Minsk, in January, he seems to have thrown him- self grandly into the part of "father of his people," On that occasion, he opened his speech by answering questions addressed to him on a variety of local problems, taking the tone of a stern but equitable patron of lesser folk. Khrushchev has stolen much of the public play from Bul- ganin and his other Presidium colleagues. He has made in- creased use of the interview technique in recent months as a means of launching and sus- taining a propaganda campaign and possibly also as a means of signifying his personal authority. Since last June he has granted 12 such interviews to foreign newspaper representa- tives, while Bulganin has given two and other Presidium members have given none. The once-familiar Khru- shchev-Bulganin public relations team last functioned in Czecho- slovakia in July 1957. On sub- sequent trips into Eastern Europe, Khrushchev was either accompanied by Mikoyan or traveled alone, as was appar- ently the case in the recent visit to Poland. Bulganin's name has, however, appeared often in the Soviet press in recent weeks in connection with the series of notes sent to foreign governments, which, in accordance with protocol, car- ried his signature as premier. Otherwise, in formal interviews and off-the-cuff statements to foreign newsmen, Khrushchev has taken the lead in the effort to build pressure for a summit conference. The announcement in Moscow on 21 January that "a collection of Nikita Khrushchev's speeches last year on the foreign policy of the USSR and international relations has been issued in a mass edition" would appear to give a clear picture of where the real authority in foreign policy lies. MIKHAIL A. MENSHIKOV--NEW SOVIET AMBASSADOR TO THE US Mikhail A. Menshikov, for- mer Soviet ambassador to India, ,arrived in the United States on 6 February to assume his new duties as ambassador. A late- comer to the diplomatic corps, SECRET Menshikov is a foreign trade specialist and is known in the United States for his work with the UN Relief and Rehabilitation Administration. His major aim in Washington will probably be 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART II NOTES AND COMMENTS Page 11 of 20 Approved For Release 20051 T7RB RDP79-00927A001600070001-9 VAMW 6 February 1958 to stress the need for improved Soviet-American relations through contacts between top leaders. For his first diplomatic assignment, Menshikov;was sent to New Delhi in 1953, shortly after the death of Stalin dike his predecessor 25X1 25X6 25X6 Georgiy Zarubin, Menshikov is a candidate member of the cen- tral committee, having been elected at the 20th party con- gress in February 1956, He impressed Ambassador Thompson favorabl but as inferior in to his predecessor. ILLEGIB His long association with Miko- yan, however, may give him more influence in Moscow than Zaru- bin enjoyed, Once established in Wash- ington, Menshikov will probably push the Soviet campaign for high-level bilateral meetings. During a conversation with Am- bassador Thompson, Menshikov stressed the need for improvec' Soviet-American relations through contacts between top leaders, SECRE 7 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART II NOTES AND COMMENTS Page 12 of 20 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 SECRET 6 February 1958 In a return to policies for 100-percent collectiviza- tion which were temporarily suspended following the Hungar- ian revolt, the Rumanian regime has stepped up its campaign to force landowning peasants and agricultural cooperatives into collective farms. The present effort is concentrated on re- gions east of Bucharest--Con- stanta, Iasi, and Galati. The regime is emphasizing the level of collectivization attained and the total land area incor- porated into the "socialist sector," rather than the number of families involved, The areas of Constant a, Iasi, and Galati in eastern Ru- mania have always been con- sidered as a sort of "New Lands" by the regime. The terrain, moveover, is such as itself to the forma- tion of large col- lective farms, which probably accounts for the drive being pushed there. After the postwar distribu tion of estates, the average landholdings there were larger than those throughout the rest of the coun- try. The climate is poor and the crop yield has been low even in years of ex- ceptionally good har vest, as in 1957. The peasants in Constanta, were among the first to pool their properties in 1948 and 1949, and were the first to form agricultural co- operatives or asso- ciations, There is considerable dis - to lend parity in other areas of Ru- mania both as to the amount of land collectivized and the pres- sure being brought to bear by the regime. In mountainous Transylvania, for instance, little or no effort has been ap- plied, particularly in the pres- ent drive. About 45 percent of the total arable land in Ru- 25X1 mania has been collectivized. easants are e and that in at least two instances the regime has found it necessary to use troops to suppress armed uprisings. While the eossib.l- ity that such resistance has developed cannot be ruled out, the peasants in these districts have remained fairly passive in the past, preferring obstruc- tionist tactics to violence. Area where co lIectivization campaign is being pushed 6 FEBRUARY i9 se O MILES 100 TRAnrs t N/A SECRET B UL O A R I A Va A X1 25X1 PART I I Approved For ReleaW@'$B65/8N]P7 COY 9-00927A001600070ft'99 13 of 20 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 SECRET CURRJNT INTLLLIGENC' 11TLtiKLl' SUMMARY 6 February 1958 In the present campaign, peasants have been forced to sign declarations that they support the regime's agricultur- al policy--failure to do so be- ing tantamount to political disloyalty--and that they are willing to assist in its imple- mentation. Armed with these statements, the regime has pro- ceeded to socialize the land according to its own timetable. An estimated 30,000-40,000 agitators have engaged in a door-to-door campaign to elicit the peasants' "voluntary con- sent." In July 1957, Constanta was alleged to be fully "co- operativized," and on 20 Octo- ber,the press announced it had been completely collectivized, thus becoming the first sizable area outside the USSR to be fully patterned after the Soviet model, The regime's decision to force 100-percent collectiviza- tion at this time under the pretext, presumably, of provid- ing a "rational" scheme of land utilization with the free con- sent of the peasants may have been prompted by last year's record harvest. In addition, urban areas apparently are bene- fiting from a more than adequate food supply, The renewed drive may portend a nationwide cam- paign, but there are as yet no indications of any intention by the regime to widen it ap- preciably early in 1958 or to 25X1 reintroduce any system of com- pulsory grain deliveries I Ho Chi Minh's current state visit to India and Burma is his first trip outside the Commu- nist bloc since negotiating with the French in 1946. The North Vietnamese President and party boss will try to offset the favorable impression which South Vietnam's President Diem reportedly made on Indian offi- cialdom during his tour of India last November, and he will seek to halt the decline of North Vietnam's prestige in Burma which began during the last year. North's dictatorial methods and economic failures have low- 25X1 Both Nehru and U Nu visited Hanoi after the French defeat; and, although neither India nor Burma extended diplomatic recog- nition to North Vietnam, both governments seemingly acted on the premise that--Communist or not--Ho Chi Minh was the legit- imate heir to the Vietnamese nationalist movement. Diems success in South Vietnam and an increasing awareness of the not is determined to keep the commission alive as a symbol of the validity of the 1954 Geneva Agreements. Both Hanoi and Moscow apparently regard the agreements as a moderately effective propaganda weapon to inhibit a major military build- up in the South. France has withdrawn its financial support SECRET Approved For Relea QQ,,S/0 7 79-00927AO01600070001-9 C184d II La ,t G Page 14 of 20 Approved Fore ease 2005/ Uff-RDP79-00927,01600070001-9 CURRENT INTELLIGENCE, WEEKLY SUMMARY 6 February 1958 of the ICC, and the UK has also indicated its desire to cut back its contribution to ICC operat- ing funds. In addition, Canada apparently intends to reduce its commission personnel when headquarters are moved from Hanoi to Saigon in March. Ho will almost certainly ask Nehru to resist these Western a.t- tempts to reduce the size of the ICC. He will also request India. and Burma to support Hanoi's demand that the Geneva Agreements be implemented. Nehru is likely to be noncom- mittal. Diem's recent decision to call off his own visit to Burma this month rather than arrive close on the heels of Ho's tour seems to have piqued Rangoon officals. Nevertheless, Ho will encounter in Rangoon an attitude which views Diem's administration in an increas- ingly favorable light. Ran- goon's decision last December to allow both South and North Vietnam to establish consulates general there was actually more of a victory for Saigon, which had no representation in Burma, than for Hanoi, which has main- tained a quasi-official mission in Rangoon since 1947. The presence in Ho's en- tourage of his ministers of cul- ture and commerce suggests his intention to carry on discus- sions in these fields. Ho will probably stress Hanoi's accept- ance of "peaceful coexistence" among states of different ideol- ogies,` emphasizing the "common Asian outlook" which the North shares with Burma and India. BURMESE PREMIER REJECTS COMMUNIST METHODS Burma's Prime Minister U Nu, in his four-hour address on 29 January to the Third National Congress of the governing Anti- Fascist People's Freedom League (AFPFL), repudiated Marxism as the league's guiding political. philosoply, In his a.na,ly. ; s i s ve,lopment. :anal philosophic "state capitalism," he re- jected dialectical materialism as incompatible with Buddhism and stated that the AFPFL "ap- proves only some parts" of Ma.rxian economic doctrine. In pledging that the AFPFL would build -a socialist state only through democratic means, Nu warned of the necessity of guarding against an excessive c'oncentra.tion of power leading to totalitarianism, thus by im- plication at least strongly condemning Marxian Communism. U Nu's speech is of con- siderable significance in reg- istering in a definitive and colorful fashion the AFPFL's commitment to a democratic so- cialism of the British Labor party variety. It points up the degree to which Burma's leaders have, in ten years since in- dependence, abandoned their rigidly doctrinaire socialism, which in some instances was scarcely distinguishable from Communism, The Burmese prime minister's address suggests a, deliberate effort by the AFPFL to distin- guish itself ideologically from the Communist-led National United Front (NUF), the only opposi- tion group with prospects of de- feating the AFPFL at the polls in the foreseeable future, The NUP will probably be increasing- ly attacked by AFPFL speakers SECRET 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART 11 NOTES AND COMMENTS Page 15 of 20 Approved For Release 2005/01 ,LAIRDP79-00927A001600070001-9 6 February 1958 as the party of Communist "stooges" who would seek to build a socialist state in Burma by totalitarian methods. The AFPFL executive commit- tee reportedly approved Nu's speech in draft after extensive and detailed consideration. While apparently in accord on ideology, the continuation of factionalism stemming from rivalry for power among the top NEW JAPANESE BUDGET RAISES DEFENSE EXPENDITURES The Japanese Government has approved and sent to the Diet for final endorsement a national budget for the fiscal year beginning 1 April which is economically sound and re m4rkably free of "'political" ap- propriations despite the pros- JAPANESE BUDGETS FOR FISCAL YEARS 1957 AND 1958 (MILLIONS OF DOLLARS) UNCLASSIFIED 1957 1958 DEFENSE 391 406 SOCIAL SECURITY 321 332 EDUCATION 375 403 PENSIONS 286 300 REPARATIONS 61 66 PUBLIC WORKS 455 453 LOCAL GOVERNMENT 519 622 OTHER 752 1,062 TOTAL 3,160 3,644 SURPLUS 121 277 (ANTICIPAT AFPFL leaders is suggested by Deputy Prime Minister Ba Swe's emotional opening speech to the congress in which he pledged to "fight" if necessary those "who are creating the splits" in AFPFL ranks. Ba Swe's statement tends to confirm rumors of another bitter dispute between U Nu and Deputy Prime Minister Kyaw Nyein, this time over the appointment of a secretary general for the AFPFL. payments crisis; some reduction of corporation taxes, but not of personal income taxes; in- creased expenditures for defense and for veterans' pensions; and a new appropriation for eco- nomic cooperation with South- east Asia. While the total budget of $3.64 billion is 15 percent larger than that of the previous year, a substantial surplus exists and actual expenditures will be only slightly higher be- cause sizable amounts are to be set aside for debt retirement and for a special contingency reserve. An exception to the tight money policy, which Japan initiated in 1957, is the estab- lishment of a fund to aid small businesses hard hit by their in- ability to obtain credit. Ex- penditures for social welfare, education, and local government are greater than last year. The $333,000,000 appropri- ated for defense is about 19 percent more than last year. In addition, the Japanese Gov- ernment will make available $73,000,000 in yen currency and facilities assistance for Am- erican forces in Japan. The defense appropriation, approxi- mately 11,2 percent of the total budget, will permit a 10,000-man pect of general elections dur- ing the year. Its major fea-'tures are a continuation of the tight money policy to deal with the international balance-of- SECRET 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART II NOTES AND COMMENTS Page 16 of 20 Approved For Release 20Q5RE1A-RDP79-00001600070001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 build-up of the Ground Self- Defense Force as well as small increa.ses for the air and naval forces. A unique feature of the 1958 budget is an appropriation of approximately $14,000,000 for economic cooperation with Southeast Asia, a program which Japan has long espoused but has not taken practical steps to implement. The press and public opin- ion in general have joined the Socialists in criticizing the increase in veterans' pensions, which amount to 6.5 percent of total. appropriations. The So-- cialists claim that the pensions and defense expenditures, in effect, constitute a. "rearma- ment budget." Despite Socialist criticism, the budget is expected to be passed by the Diet substantially unchanged, a.fter which Prime Minister Kishi probably will turn his attention to setting a date for general elections. Although many conservatives have pressured for politically attractive appropriations to win votes, early indications are that the budget will not 25X1 be a, significant factor in the elections. CONTINUING TENS7ON IN CUBA President Batist"'s ef- forts to create political peace in Cuba. in prepara.tion for the general elections on 1 June have produced little more than a surface calm. Revolutionary elements are stepping up their campaign of terror and have an- nounced plans to sabotage indus- trial. installations, including those owned by US interests, as well as sugar cane fields and tobacco warehouses, There are also new signs of plotting against Batista among the tary, the principal bulwark of his regime. Apparently realizing that an attempt to retain the presi- dency after the end of his con- stitutiona.l term in February 1959 would be met by determined, if not violent, opposition, Batista last November authorized the reorganization of the mili- tary to allow a retired presi- dent to assume the position of general in chief of the a.rmed forces. This bid for absolute pow- er via. the milita.ry is thinly veiled, and general opposition to the plan may become marked as elections approach. In re-- shuffling officer assignments on 29 January in order to put the new defense law into opera- tion, Batista appointed a ruth- less and extremely unpopular officer as army chief of staff. This appointment, coupled with increasing police brutalities in dealing with both military personnel and civilians, may pro- voke open manifestations of 25X1 discontent within the army, Preparations for elections are progressing in the relative- ly free atmosphere provided by Batista's restoration of con- stitutional guarantees on 25 January. The nomination of SECRET Approved For Release 2005/02/17: CIA-F D ~ 27AO01600070001-9?age 17 of 20 PART I I NOTES AND C .: I4. Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 SECRET 6 February 1958 Prime Minister Andres Rivero Aguero by Batista's Progressive Action party on 3 February was tantamount to his designation as presidential candidate for the government coalition, Two opposition parties have named presidential candidates, and a third is expected to declare its candidate before long. There is little chance for the divided opposition to offer more than a token challenge to the government candidate. SECRET 25X1 PART I I Approved For Relea AS/02W :Q 1XA M-00927A00160007CV&Ug4S 18 of- 20 25X1 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 Next 1 Page(s) In Document Exempt Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 Approved For Release 20 V 1 Y 0927A001600070001-9 =t ~.rrY CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 PATTERNS AND PERSPECTIVES SUDAN'S RELATIONS WITH Sudanese Premier Abdull*b Khalil has resisted the diplo.- matic and trade approaches of the Sino-Soviet bloc. A Soviet offer of substantial economic aid and trade--the.major bloc initiative thus fax--was sub- mitted last August amid a near crisis over cotton surpluses. The offer was shelved despite the objections of some members of the coalition government, and the recent rise in cotton sales to Western nations makes it unlikely the offer will be reconsidered in the near future. THE SINO-SOVIET BLOC aimed at the local Communists. However, the Sudanese Communists, who have been particularly suc- cessful in the labor movement, are well organized and benefit from the sometimes parallel activities of pro-Egyptian ele- ments in the Sudan. The parliamentary elections to be held from 27 February to 8 March appear to promise the return of the present pro-West- ern coalition with Khalil re- maining in control, but a slight shift in favor of opposition elements could result in a weak- er coalition more susceptible to bloc approaches. Sino-Soviet Bloc Approaches Since attaining independ- ence on 1 January 1956, the Sudan has exchanged diplomatic recognition with all the bloc countries except East Germany and Communist China. It re- buffed East German approaches, in line with Arab League policy, but leftist and pro-Egyptian elements have maintained con- stant pressure for recognition of the Peiping regime. 25X1 During the first half of 1957, trade with the bloc amounted to only 2,2 percent of the Sudan's total trade, The Sudan's improved eco- nomic outlook has apparently given Khalil enough1confidence to stiffen his opposition to bloc activities in his country and to the activities of local. Communists. He has protested to the Soviet ambassador about the activities of Soviet diplo- matic personnel in the Sudan, is adamant in his opposition to recognition of East Germany and Communist China, and apparently plans restrictive legislation The USSR has accelerated cultural contacts at all levels since it established diplomatic relations in March 1956. Su- danese students have been a C Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 PATTERNS AND PERSPECTIVES Page 1 of Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February. 1958 special target of bloc offers, and more than 40 are receiving expensespaid educations$i n bloc countries. Approximately 60 Sudanese youths attended the World Federation of Demo- cratic Youth (WFDY) festival in Moscow in the summer of 19 57 . Communist China's cultural efforts have been limited to sending an entertainment and artistic group in the spring of 1956 and founding a Sudanese- Chinese friendship society in Khartoum in January 1957. Trade discussions have had little ef- fective results, the latest ending with an innocuous com- muniquG on 9 January. RIBM9ndr BELGIAN CONGO RI IANI IA-I IRUND 6 FEBRUARY 1959 J MILES 500 24430 The immediate goal of the Communists in the Sudan is to establish a common front with any elements in opposition to the present government coali- tion in an effort to weaken or defeat it. The Communists in- tend to fight against Khalil's announced plan to strengthen constitutional restrictions on subversive activities. They are also campaigning for in- creased trade with the bloc, labor union cooperation with the Egyptian-dominated Arab Confederation of Labor Unions linked with the WFTU, and a general adoption of the "posi- tive-neutralist" line of Egypt. SECRET 25X1 25X1 PART III Approved For RpW$TCaFi/Q,, I)7 pGWPOeT -'9 27A001600070Qt,Ig$ 2 of 7. Approved For Rase 2005/02/17 : CIA-RDP79-00927A001600070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 While Prime Minister Khalil has been cool to most Sino-So- viet approaches, the impact of propaganda activities combined with indecisiveness'among mem- bers of the cabinet have made the government generally in- effective in combating the publicity accompanying these approaches, Now relieved some- what of the concern over the economic situation and confident of winning the parliamentary elections, Khalil says he in- tends to crack down on subver- sive activities and counter neutralist and pro-Soviet pres- sures. Current negotiations for American aid are apparently ex- pected to bolster this new in- itiative, and several steps, such as rejection of the Soviet economic offer, the protest to the Soviet ambassador, and the planning of antisubversive leg- islation, have been taken since November 19 57 , The Outlook The effectiveness of Sino- Soviet bloc and internal Com- munist offensives in the Sudan in the near future will be deter- mined by the outcome of the parliamentary elections, the sale of Sudanese cotton, and the course of Egyptian foreign policy. At present, any indi- cation by the Sudanese that they would reconsider bloc as- sistance apparently would be met by a reaffirmation of So- viet willingness to extend eco- nomic aid. The retention of authority by Premier Khalil, which now appears the probable outcome of the elections, may not be sufficient in itself to main- tain the Sudan?s present pro- Western orientation. Only a striking victory of pro-Western candidates would ensure a maxi- mum effort by the government to resist all Communist efforts at subversion. The more likely partial victory may result in only half measures to control internal subversion and a con- tinuation of pressures favoring the bloc. If the Sudanese one- crop economy is faced with a poor cotton market and does not receive compensating assistance from Western sources, Communist pressures would probably become irresis-.ible. In addition, any marked change in Egyptian foreign policy would probably have a significant effect on the course followed by the Sudan. Egyptian success in "positive neutralism" will continue to encourage those Sudanese desiring a closer align- ment with the bloc, while a de- cided shift by Egypt toward either East or West would prob- ably be followed by a .similar 25X1 shift in I 5X1 SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 PART III PATTERNS AND PERSPECTIVES Page 3 of 7 Approved For Release 2005/02/17 : CIA-RDP79-009201600070001-9 SECRET 6 February 1958 Elements of the thus far ineffectual and divided opposi- tion to the Franco regime in Spain have recently undertaken to unite all non-Communist op- ponents of Franco into a na- tional resistance front prepared to organize a successor govern- ment. A wide range of politi- cal opponents, including Social- ists and Christian Democrats, are reported agreed on restora- tion of the monarchy if con- tinuing adverse economic condi- tions should lead influential military, business, and church supporters of the regime to abandon Franco. supporters, Disturbances re- portedly planned for late 1957 did not materialize, however; Giron may have pressed a more moderate position to advance his efforts at collaboration with more conservative opposi- tion groups. Giron's followers have the benefit of organizational ex- perience and more extensive contact with the populace than other opposition groups. If the economic situation continues to deteriorate, he is likely to win large numbers of new adher- ents among dissident Falangists. No immediate threat to the stability of the Franco regime is yet discernible in the mild ferment developing among all foes of the status quo. Or- ganized political opposition is not permitted, and even the most optimistic estimates of the number of active opponents within Spain run to only a few thousand for any of the politi- cally oriented groups outside Franco's Falange. It is never- theless noteworthy that some steps have been taken to bring together in support of a provi- sional restoration of the mon- archy many disparate parties ranging from the Socialists to the Monarchists and including dissident Falangists, Christian Democrats, and Functionalists. Falange Dissidents The extent and organiza- tion of the opposition to Franco which has emerged within Spain's only legal political organiza- tion, the Falange, is still un- clear. Former Labor Minister Jose Giron is reported to have assumed leadership of certain left-wing dissidents who accuse Franco of increasing conserva- tism. Sporadic distribution of "revolutionary action" leaf- lets in mid-1957 and a brief demonstration in Madrid on 29 October are attributed to Giron's Dionisio Ridruejo, a prom- inent writer who has broken with the Falange, is trying to unite Socialists and dissident Falan- gists in a social democratic group called the Socialist Party of Democratic Action (PSAD), Ridruejo has considerable in- tellectual and organizational capabilities and is popular. His willingness to accept res- toration of the monarchy is re- jected, however, by the Barcelona PSAD and also by the traditional Socialist party (PSOE), which was a major force in the 1931- 39 republic. SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001-9 PART III PATTERNS AND PERSPECTIVES Page 4 of'7 Approved For Release 2005/02/17 : CIA-RDP79-00927AQ01600070001-9 "'m ..SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 Functionalists The impetus for the hove to unite the opposition in sup- port of a monarchy may have developed from Ridruejo's ties with the Association for the Functional Unity of Europe, or- ganized in 1955 by Enrique Tierno Galvan,.;a professor of political law at the University of Salamanca. The Functional- ists have the ostensible pur- pose of promoting European unity, but their real program is the replacement of Franco by a con- stitutional monarchy. Their members are, for the most part, young diplomats, intellectuals, and students, and they have ap- parently made no effort to de- velop a mass base. Ridruejo reportedly joined the Functionalists in the spring of 1956, and he may have suc- ceeded in attracting many of Tierno Galvan's liberal follow- ers into his own Socialist party. A century-old split in mon- a:rchist ranks was apparently healed recently when leaders of the Carlist faction reportedly agreed to back Don Juan de Bor- bon, son of the late Alfonso XIII. The monarchists' politi- cal views range from reaction- ary authoritarianism to parlia- mentary liberalism. Active liberal monarchists are few in number, but they have useful contacts in upper social strata, and in some church and military circles. Their promise of a liberal, constitutional monarchy has been effective in winning other opposition groups to the idea of at least a tem- porary restoration. The authoritarian monarch- ists have been less active in the opposition since February 1957 when members of Opus Dei, the Catholic lay organization with similar views, joined the Franco cabinet. Christian Democrats Two Christian Democratic groups parallel the division among the monarchists. The Spanish Confederation of Inde- pendent Rightists (CEDA) is led by Jose Rodriguez Soler and represents essentially conserva- tive landowning interests. Un- der the still influential Jose Maria Gil Robles, it opposed the economic and social reforms of 1931-33 and it remains SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927A001600070001- a e 5 of ,7 PART III PATTERNS AND PERSPECTIVES g Approved For Release 2005/02/17 : CIA-RDP79-009,001600070001-9 SECRET CURR.F,NT INTELJ.,IGENCE WEEKLY SUMMARY 6 February 1958 skeptical of the applicability of Western parliamentary democ- racy to Spain. It apparently fears, however, that the ending of the Franco regime would leave landowning groups without in- stitutional representation and thus has adopted the loose term "Christian Democratic" to de- scribe itself in an evident at- tempt to find fields of common agreement with the other op- position forces. The other main Christian Democratic group, the recently organized Christian Democratic Union (UDC), is led by Manuel Gimenez Fernandez, minister of agriculture during the 1931-39 republic and now a law professor at the University of Seville. The UDC members are a young intellectual group oriented toward the Christian Democratic parties of the other Western European countries, The UDC a.p- parently is having difficulty in bringing under its direction several semiautonomous liberal Christian Democratic groups. Gimenez has probably impeded these efforts by instructing UDC members to recognize the- reactionary Gil Robles as over- all leader of the Christian Democrats. In his eagerness tc speed collaboration with other opposition groups, Gimenez has conferred with Spanish Commu- nists and recommended their in- clusion in the post-Franco pro- visional cabinet. the PCE ever be allowed to operate legally within Spain. 25X1 The Spanish Communist par- ty (PCE) has retained a skeletal apparatus and perhaps 5,000- 10,000 members in Spain since the civil war, PCE Secretary General Dolores Ibarruri, who is referred to by the few par- ty dissidents as a "Stalinist," continues to have Moscow's po- litical and, presumably, fi- nancial backing, and her lead- ership appears secure for the present. Her age and unpop- ularity, however, may bring about her replacement should Other Groups The exiled anarchist Na- tional Confederation of Labor (CNT) was a powerful force be- fore the civil war and probably still has a considerable number of supporters within Spain, al- though only 9,000 of its esti- mated 21,000 members are in the country. Recent CNT publica- tions stress the theme "neither Franco nor king." Many other exile groups, including Basque and Catalan SECRET Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 PART III PATTERNS AND PERSPECTIVES Page 6 of 7 Approved For a ,ease 2005/02/17 : CIA-RDP79-00927AO01600070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 February 1958 separatists and the Republican government-in-exile in Paris, do not appear to be playing particularly active or impor- tant roles in the present ef - :Forts toward a united opposi- tion. Basque and Catalan na- tionalism contributes to anti- Franco sentiment, but within Spain it is apparently no longer expressed by organized groups as it was before the civil war. SECRET 25X1 PART III Approved For Release 2005/02/17: CIA-RDP79-00927AO01600070001-9 PATTERNS AND PERSPECTIVES Page 7 of .,7 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9 Approved For Release 2005/02/17 : CIA-RDP79-00927AO01600070001-9