CURRENT INTELLLIGENCE WEEKLY SUMMARY

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October 19, 1999
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Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 CONFIDENTIAL I 1 ~ COPY NO. 56 OCI NO. 1014/60 31 March 1960 CURRENT INTELLIGENCE WEEKLY SUMMARY DOCUMENT NO. NO CHANGE IN CLASS. C I ofL~/+ o CLASS. . CHANGED TO: TS SC i~- HE XT REVIEW DATE: 1UTfis R O? DATE 4 REVIEWER: CENTRAL INTELLIGENCE AGENCY III OFFICE OF CURRENT INTELLIGENCE State Department review completed Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 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 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 TIAL SOUTH AFRICA . . . . . . . . . . . . . . . . . . . . . . . Page 1 In the face of rising racial tension in South Africa, the government has renewed its drive to suppress nonwhite nationalist movements. Two African nationalist organiza- tions are competing for the support of the 3,500,000 urban Africans. The UN Security Council debate on the South African question will also add to internal friction, par- ticularly if the council passes a strop ly condemnatory 25X1 resolution. CARIBBEAN TENSIONS . . . . . . . . . . . . . . . . . . . Page 2 Cuba is increasingly hospitable to Latin American Communist activity. The Communists join Castro in con- demning the alleged aggressive plans of US imperialism to frustrate the Cuban revolution, and energetically exploit the appeal of his radical reforms and ultranationalistic programs. In the Dominican Republic, there are growing signs that Trujillo's dictatorship may be nearing its end. His ouster is likely to be so abrupt as to leave a power vacuum, which Castro is probably preparing to exploit. EAST-WEST RELATIONS . . . . . . . . . . . . . . . . . . . Page 4 The initial talks between De Gaulle and Khrushchev were devoted to a repetition of basic positions on Germany and various aspects of disarmament. Khrushchev has con- tinued to stress the German menace and the "natural al- liance" of France and the USSR, and has repeated his threat to conclude a separate treaty with East Germany. De Gaulle countered by playing down the gains for the USSR of a sep- arate peace treaty and insisting that France will not rec- ognize East Germany. De Gaulle feels that the discussions beginning on I A px il., w.i 1 1 yield more precise indications of Soviet intentions on summit issues. French reaction has varied, ranging from relatively large receptions in Paris and Marseilles, where Communist efforts were evident, to a marked coolness in Bordeaux and Rheims. The Soviet bloc delegations at Geneva are seeking to obtain Western agreement to a list of "agreed principles" on disarmament for endorsement at the summit. "ADENTIAL THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET "fe PART I (continued) Page 7 Qasim's anti-Communist measures have encouraged the anti-Communists and have increased the army's influence over the political scene. The Arab League Council meeting in Cairo is almost certain to intensify the bitter quarrel among Nasir, Qasim, and King Husayn on the Palestine issue. NOTES AND COMMENTS AFRICAN NATIONALISTS PREPARING NEW MEETINGS . . . . . . . Page 1 Militant African nationalists will meet in four con- ferences to be held at Accra, Conakry, and Casablanca during the next two months. Projects to achieve greater African unity will be given heavy propaganda play, despite increasing strains within the growing bloc of emerging African states. Western colonial powers and the Union of South Africa will again be under heavy fire, particularly at the second Afro-Asian People's Solidarity Conference which is to be held in Conakry from 11 to 16 April with Soviet and Chinese Communist representatives taking part. FRENCH COMMUNITY DEVELOPMENTS . . . . . . . . Page 2 Paris has negotiations under way or in prospect for granting formal independence to the 11 African states which are members of the French Community. It hopes, how- ever, to retain a greater number of common institutions and official ties than prevail in the British Commonwealth. Negotiations with the Malagasy Republic have been completed, and independence is expected to be proclaimed in June. French public opinion supports this political evolution, and the National Assembly is expected to make the necessary revisions in the French constitution. PROSPECTS FOR SPECIAL UN MEETING ON FRENCH NUCLEAR TESTING . . . . . . . . . . . . . . . . . . . . . . . . Page 3 UN Secretary General Hammarskjold is now polling UN members in response to a 14 March request--signed by 22 of the 29 members of the Asian-African bloc--for a special session of the UN General Assembly on French nuclear test- ing. Formal replies are not due until 14 April, and the few received so far have been unenthusiastic. If France SECRET ii THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET NK VMW PART II (continued) tests another nuclear device before mid-April, public opinion may impel a majority of UN members to agree to a special session. ANGLO-GERMAN RELATIONS . . . . . . . . . . . . . Page 4 Political and economic differences continue to strain Anglo-German relations. The British Foreign Office is under considerable pressure to gain for Members of Parlia- ment access to documents of the American-operated Berlin Documents Center on ex-Nazis now prominent in West Germany. Chancellor Adenauer's approval for accelerating institu- tion of a common external tariff by the Common Market countries has heightened British fears of early German dis- crimination against British goods. THE PROPOSED TAMBRONI CABINET IN ITALY . . . . . . . . . . Page 5 The cabinet which Premier-designate Fernando Tambroni is expected to submit for parliamentary approval in early April is a slightly modified version of Segni's all - Christian Democrat government whose collapse on 24 Febru- ary under pressure from the right brought on the current parliamentary crisis, The Tambroni cabinet, which features the outgoing premier as foreign minister, is designed by the party primarily as a stopgap ARGENTINE CONGRESSIONAL ELECTIONS . . . . . . . . . . . . Page 6 In the 27 March elections to renew one half of the Argentine Chamber of Deputies, the major opposition People?s Radical party (UCRP) won more seats and about 3 percent more popular votes than President Frondizi?s In- transigent Radical party (UCRI), The UCRI, which had feared greater losses, still has an absolute majority in the Chamber but probably faces increasing political dif- ficulties with the unpopular US-backed stabilization program. SECRET iii THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 JCC:KG 1 CURRENT INTELLIGENCE WEEKLY SUMMARY PART II (continued) SOVIET ECONOMIC AID TO THE UAR . . . . . . . . . . . . . . Page 7 The USSR is attempting to fortify its role as the UAR's primary source of foreign aid by speeding up imple- mentation of its 1957 aid pact with Syria. New offers of aid may result from talks now under way at Damascus to renegotiate the agreement. In addition, major construc- tion work will soon start on Egypt's Aswan Dam. There are, however, indications that Moscow is having difficulty meeting some commitments under its $175,000,000 economic cooperation agreement with Egypt, and Cairo may seek West- ern assistance, now becoming increasingly available, in order to make up for Soviet deficiencies. 25X1 25X1 ' EAST GERMANS PLAN TO COMPLETE COLLECTIVIZATION THIS YEAR . Page 9 Encouraged by its success in rapidly completing col- lectivization in eight districts, primarily in the north, despite peasant resistance, the Ulbricht regime in East Germany now has decided to bring all remaining private farmers into collective farms by the end of this year. The speed of the campaign thus far, however, probably cannot be sustained in the southern parts of the country, where greater resistance is expected. Although this am- bitious project will probably be soft-pedaled temporarily to encourage farmers to get on with spring planting and harvesting, it is likely to be resumed thereafter. SINO-NEPALESE AID AND BORDER AGREEMENTS . . . . . . . . . Page 10 The Chinese Communists, in an effort to expand their influence in Nepal, on 21 March gave that country an ad- ditional $21,000,000 in grant aid, bringing their total there since 1956 to $33,600,000. The Chinese also will establish a long-sought embassy in Katmandu and send tech- nicians to Nepal. The Chinese accepted Nepal's request that the "traditional" boundary between the two countries be used as a basis for final demarcation,with "certain discrepancies" to be ironed out by a joint commission. Chou En-lai, in his coming talks with Nehru, probably will cite the agreement establishing the Sino-Nepalese border commission as a precedent for a similar agreement with India and as evidence of Chinese reasonableness. 125X1 NEW INDIAN DEFENSE MEASURES . . . . . . . . . Page 11 In an effort to improve its defense posture against Communist China, India is strengthening administrative controls in the Himalayan border areas, expanding military reserves, seeking equipment from abroad to improve its capabilities for high-altitude military operations, and increasing its capacity to produce its-own materiel. SECRET iv THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY PART II (continued) NETHERLANDS NEW GUINEA . . . . . . . . . . . . . . . . . . Page 13 The Hague, long uneasy that Indonesia's growing mili- tary strength poses a threat to Netherlands New Guinea, is expected to renew pressure for assurances of military support from Australia, the United States, and Britain. While the Dutch show no disposition to negotiate with Indonesia about the territory, they appear increasingly inclined to join forces with Australia in sponsoring the development of a Melanesian union which would include New Guinea and adjacent trust territories. PATTERNS AND PERSPECTIVES THE CHINESE COMMUNIST MILITIA .. . . . . . . . . . . . . . Page 1 The Chinese Communist militia is primarily a security and shock-labor force which Peiping views as an instrument of control over the population and as a means of implement- ing major internal reforms, such as imposition of rural communes. This militia is the largest paramilitary organ- ization in the world, but most of its members have had little or no military training. In wartime, it could pro- vide about 30,000,000 partly trained reserves to the regu- lar forces and supply almost unlimited manpower for rear- area duties THE FRENCH ARMY IN POLITICS . . . . . . . . . . . . . . . Page 7 Although De Gaulle has energetically reasserted civil- ian control over the military following the abortive French settler insurrection in Algiers in January, the Paris gov- ernment must still cope with an antidemocratic mentality SECRET THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 i.;, SECRET Now, CURRENT INTELLIGENCE WEEKLY SUMMARY PART III (continued) which many French officers developed in the course of their unsuccessful colonial campaigns. A minority of "activist" officers has fostered this attitude among conscripts and spread it'among the civilian population through veterans organizations. De Gaulle is trying to convince the mili- tary that the retention of Algeria cannot be the principal goal of an army which must adapt itself to global commit- ECONOMIC OUTLOOK FOR 1960 IN EASTERN EUROPE . . . . . . . Page 10 Industrial output in the European Communist satellites is scheduled to continue growing at a high rate in 1960, although in most countries the planned rates of growth, ranging from 7.6 to 15 percent, are lower than those achieved in 1959. The consumer is to benefit to a small extent from large increases in industrial production, but the share of national income earmarked for consumption will decline slightly and that for investment will grow. Out- standing problems during the year will probably involve labor performance, inasmuch as a large share of the indus- trial gains is supposed to come from increased productivity. Polish workers are already reacting adversely to raised work norms, and workers in the other satellites are under similar pressures which are resented and occasionally re- sisted. 25X1 SECRET THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET N"OF CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 In the face of rising ra- cial tension in South Africa, the government has renewed its drive to suppress antigovernment movements. After an initial period of apparent hesitation, in which enforcement of the re- strictive African pass system was temporarily suspended, the government moved to outlaw the African National Congress (ANC) and the Pan-Africanist Congress (PAC), together with other groups. representing smaller minorities. A state of emergen- cy has been declared in the country's urban areas, 234 lead- ers of all races have been ar- rested, and the army's 20,000- man civilian reserve has been partially mobilized. Most of the parliamentary opposition has supported the actions taken by the Verwoerd government. Internal friction will be increased by the UN Security Council debate on the South Af- rican question, particularly if the council passes a strong- ly condemnatory resolution. On 30 March the South African rep- resentative withdrew from the council table after stating his country's objections to the de- cision to debate the issue. As a result of the substantive discussion of the issue, South Africa may soon withdraw com- pletely from UN activities, charging that the Security Coun- cil debate constitutes an inter- ference in its internal affairs. The USSR followed up its basically factual press accounts of the South African riots with a TASS statement on 24 March deploring the Sharpeville vio- lence. The Soviet statement said that "official quarters of the USSR," as well as the So- viet people, denounce the ac- tions of the South African au- thorities and call for immediate measures to prevent further vio- lence and to guarantee civil rights to Africans in accordance with the UN Charter. While Mos- cow's subsequent press attention has been relatively meager, So- viet UN delegate Sobolev voted for inscription of the issue on the Security Council agenda, and the USSR can be expected to give strong support to Afro- Asian efforts to gain UN censure of South Africa. The South African Govern- ment will probably combine po- lice repression with a relaxa- tion of the most onerous aspects of apartheid. This course will not satisfy the nonwhites, who demonstrated their increasing willingness to take direct ac= tion in the highly effective work stoppage on 28 March. The ANC and the PAC are apparently competing for the support of the 3,500,000 urban Africans, and both groups are likely to increase the stridency of their antiwhite agitation. Intimida- tion of moderate Africans, which was an important factor in the 28 March riots, will probably be used increasingly by the militant African nationalists. Although the government can probably contain outward mani- festations of African unrest for the present, it is unlikely that tension will be reduced to pre- riot levels in the foreseeable future. It will be extremely SECRET PART I OF IMMEDIATE INTEREST Pace 1 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET ``W CURRENT INTELLIGENCE WEEKLY SUMMARY difficult to reinstitute the pass system in any effective form. Without some kind of in- flux control,' though, the cities will be flooded with large num- bers of unemployed Africans. Moreover, the riots have placed .serious strains on the European political parties.. Prime Minister Verwoerd apparently remains in control of the ruling Nationalist par- ty only because there is no one else who offers a forceful pro- gram for dealing with the sit- uation; however, he is plagued by a split between archconserva- tives and relative liberals within the party. The United party, which holds the largest bloc of opposition seats in the South African Parliament, is similarly divided. The Euro- peans are presently united by the African threat to their hegemony; when the situation has calmed somewhat, there may be a realignment of po- litical organizations within the European community. Castro's Cuba is increas- ingly hospitable to Latin Amer- ican Communist activity. The Communists join Castro in con- demning the so-called aggres- sive plans of US imperialism to frustrate the Cuban revolution, and energetically exploit the appeal of his radical reforms and ultranationalistic programs. Communists or pro-Commu- nists from 15 Latin American countries attended the cere- monies of the "Week of Solidar- ity With the Struggles of the Latin American Peoples" in Havana from 21 to 26 March. The "sol- idarity week" was proclaimed by the Cuban Labor Confederation (CTC), the Communist-infiltrated labor arm of the Castro regime, and warmly endorsed by the Cu- ban Communist party. A man- ifesto called for an "anti-im- perialist and anti-feudal rev- olution" in Latin America and the strengthening of Latin Amer- ican solidarity with'the Cuban revolution. At the final rally, a Cu- ban CTC leader announced plans for a "great Latin American con- gress to create the apparatus to fight the common enemy, im- perialism." He said Cuban del- egations will leave on 1 May for other Latin American coun- tries "to give them help and to request aid for the Cuban rev- olution." Many of the week's demonstrations stressed the "unfortunate" plight of Puerto SECRET PART I OF IMMEDIATE INTEREST Page 2 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 Rico, "still under the bondage of the common enemy." and Raul Castro on 27 March were apparently designed to give the impression that a mer- cenary invasion of Cuba, backed by "American imperialists," is a virtual certainty. nearing its end. Dominican Republic In the Dominican Republic, there are increasing signs that Trujillo's dictatorship may be 25X1 25X1 The American Embassy re- The "Latin American Con- gress," which was promised at the "solidarity week" rally, could serve the purposes of the ostensibly non-Communist "peo- ples' conference" which was also planned during the early 1959 meetings in Moscow. The in- creased liaison among Latin American Communists, now pos- sible in Cuba, and the hemi- sphere "peace conference" planned for Havana in May or June were also elements in the program developed then in Mos- cow. Top Cuban officials mean- while continue to employ at- tacks on the United States as a means of whipping up revolu- tionary fervor. The strident, combative speeches of Fidel ported on 24 March that the situation contains all the in- gredients necessary to "blow the lid off the political bar- rel." To counter the effect of recent Catholic Church condem- nations of the regime, the Tru- jillo-controlled press has been playing up a suggestion that the Dominican people be given an opportunity to proclaim the generalissimo "Benefactor of the Catholic Church" in a na- tional plebiscite. A high church figure told an American Embassy official that only the pope could bestow such a title and that Trujillo has been in- directly warned that pursuit of this maneuver could result in an open break with Rome. SECRET PART I OF IMMEDIATE INTEREST Page 3 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY said the country wants a change of government and would welcome intervention by the United States or even Cuba. Trujillo's ouster, when it does come, is likely to be so sudden as to leave a power vacuum, which Fidel Castro is probably pre- paring to exploit through sup- port of leftist and pro-Com- munist exiles. The first series of talks between De Gaulle and Khrushchev were devoted to a repetition of basic positions on the German question and various aspects of disarmament, French Foreign Minister Couve de Murville told the American ambassador that these conversations could be summed up with the words "noth- ing new." De Gaulle indicated to the British ambassador that there had been no meeting of minds on Germany, but that he expected Khrushchev to reveal more of his position on major questions in the private talks beginning on 1 April. According to the British ambassador's account of last week's talks, Khrushchev tried to leave the impression, as he did with Italian President Gronchi in mid- February, that if the USSR does not obtain some satisfaction on the German question at the sum- mit meeting, it will sign a sep- arate peace treaty with East Germany. In his public state- ments in France, however, Khru- shchev has avoided specifically linking the timing of a separate treaty to the outcome of the May summit. In speeches on 25 and 29 March, he used the now- standard and vague formulation, threatening to take unilateral action "if all our possibili- ties are exhausted and our as- pirations not understood." De Gaulle opened the talks by disagreeing with Khrushchev's .fears of West Germany and stressed that it was of "prime importance" that Bonn remain with the West in order to maintain the necessary "equilibrium" in Europe. Reply- ing to the threat of a separate peace treaty, De Gaulle stated that France would not recognize East Germany and asked what the USSR could hope to gain by such a move. According to the French foreign minister, there was little mention of Berlin. In discussions on disarm- ament, De Gaulle reiterated his refusal to be bound by any nu- clear test ban unless accom- panied by a disarmament plan providing for destruction of nuclear weapons. Khrushchev attempted to appear responsive to French views by endorsing the priority of controls on nuclear delivery systems. SECRET PART I OF IMMEDIATE INTEREST Page 4 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 NW, SECRET :..> 31 March 1960 In his speeches in Paris, Khrushchev continued the pat- tern of emphasizing the German menace and the "natural" French- Soviet alliance in containing it. Reflecting the impasse on the German question in their private talks, both De Gaulle and Thrushchev have engaged in some oblique public exchanges. At a dinner for Khrushchev on 23 March, the French President referred to the "unbounded" German ambition in two world wars "which has since then dis- appeared." Khrushchev seemed to reply the following day when he stated that he could not conceal his apprehension at the "tolerance and even encour- agement of German militarism" or accept "attempts to prove that this militarism is some- thing different from what it used to be." Khrushchev, however, was more responsive to De Gaulle's remarks that the major inter- national issues should be taken up "one by one with realism." Addressing the Diplomatic Press Association on 25 March, Khru- shchev repeated his previous statements that all controver- sial issues cannot be solved in one or two summit meetings. He added that the main aim of the May meeting would be to find a "common language." In an effort to appear ac- commodating to De Gaulle's views, Khrushchev also renewed his carefully worded endorse- ment of De Gaulle's 16 Septem- ber program for a solution to the Algerian question. Khru- shchev avoided rejecting multi- lateral aid to underdeveloped countries by tying this question to an agreement on disarmament, and he parried questions on an arms embargo in the Middle East by repeating that the USSR would be willing to reach agree- ment that "no country should sell its arms to any other country." French reaction to the visit has varied from large turnouts in Paris and Marseilles, where French Communist party efforts were evident, to cool receptions in Bordeaux and Rheims, In Paris, Khrushchev drew good but not tremendous crowds, but the receptions elsewhere have been enthusias- tic only where French Communists have been able to organize the welcome. In Bordeaux the streets were nearly empty and the indifference of the popu- lation was noticeable, but at a stop in Trabes the reaction was apparently enthusiastic. The non-Communist Paris press described the visit to Mar- seilles as Khrushchev's "first triumph in France." Communist cheering sections were most prom- inent in Lille. At Rheims crowds were sparse. A French Foreign Ministry official feels that there has been "considerable genuine interest" in the provinces not inspired by the Communists. Press reaction has ranged from reserve and detachment to open hostility, although most of the press accepts the talks as probably a useful prelude to the summit. Editorial com- ment has been increasingly critical of Khrushchev's stress ,on the German menace and hos- tile to advocacy of the need for a French-Soviet alliance. As a possible reflection of this reaction, Khrushchev dur- ing his tour of the southern SECRET PART I OF IMMEDIATE INTEREST Page 5 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Nor SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 provinces has concentrated on extolling Soviet economic and technical accomplishments, with only brief references to Germany. In Verdun, for ex- ample, he passed up an oppor- tunity to recall French-Russian cooperation against Germany, but returned to the German theme again. in. Rheims. Other Pre-Summit Planning Khrushchev may go to East Berlin to review the results of his talks with De Gaulle and strategy for the summit. He may also go to Czechoslo- vakia; the new Soviet ambassa- dor to Prague avoided a direct answer when queried by the American ambassador about this. Khrushchev has been in all of the satellites since his last visit to Czechoslovakia in July 1957, and there has been some friction in Czechoslovak- Soviet relations that may need soothing. The main purpose of the coming session of the Supreme Soviet, announced for 5 May, will probably be to provide a forum for a demonstration of support for Khrushchev on the eve of the summit meeting. In addition to reaffirming basic positions on the issues to be taken up at the summit, Moscow may use the occasion for a fur- ther "peaceful initiative," such. as an announcement of a reduction in Soviet, troops in Eastern Europe. Khrushchev told the West German ambassa- dor in January that the over- all reduction in Soviet forces would be followed by a "pro- ..portionate" withdrawal from Eastern Europe, and a Soviet official at the disarmament talks in Geneva recently re- ferred to this possibility. Disarmament Conference The tactics of the Soviet bloc delegations at Geneva last week suggest that they are un- der instructions from Moscow to obtain Western agreement to a list of "agreed principles" for a disarmament agreement which could be placed before the May summit meeting for endorsement. In private talks with the United States delegation, Soviet dele- gates have urged that such a list begin by endorsing "general and complete disarmament" as an "agreed goal." Other items would include the reduction and elimi- nation of conventional forces and armaments, elimination of nuclear weapons and other means of mass destruction, and a general state- ment on international controls. Bloc efforts to draw the Western delegations toward such a general statement of disarma- ment goals were evident in Soviet delegate Zorin's remark to the British delegate on 23 March that the USSR is anxious to proceed to detailed discussion of meas- ures but that there must first be general agreement on final objectives. In formal confer- ence sessions last week, Zorin took an optimistic line, con- tending that the talks had already produced useful results, in revealing a "whole number of points of contact" between the two sides. The Bulgarian delegate claimed that all the Western delegates had now agreed that the goal of the conference was general and complete disarmament. SECRET PART I OF IMMEDIATE INTEREST Page 6 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET N%iloi CURRENT INTELLIGENCE WEEKLY SUMMARY Despite these obvious ef- forts to demonstrate a wide area of agreement on principles, the debate last week did not narrow the gap between the two sides on the basic issue of .international controls. Bloc delegates continued to hammer on their slogan of "no disarma- ment without control and no con- trol without disarmament." They attacked Western proposals as attempts to substitute discuss- ion of controls for discussion of specific disarmament proposals. Zorin served notice that while he was prepared to discuss con- trols in conjunction with specif- ic disarmament measures leading to complete disarmament, he would not discuss controls for "hypothetical measures." Zorin has attempted to re- fute Western criticism of the Soviet position on controls by repeatedly stating that the USSR favors strict international control over all stages of a disarmament program. He insists, however, that the extent of control must be "commensurate" with the various stages of the disarmament process. This vague formula is no ad- vance over the basic position outlined by Khrushchev to the United Nations last September that the functions of an in- ternational control organ will "correspond to the nature of the disarmament measures that are being carried out." Bloc Iraq Iraqi Communists suffered three more rebuffs in the past week at the hands of the Qasim regime. On 27 March,Qasim com- delegates have declined to spell out this position beyond the general proposition that the scope.of the control system would be enlarged as the arms- reduction process advanced to- ward complete disarmament. Nuclear Test Talks Moscow has protrayed its proposal for a moratorium on small underground tests as having precipitated a crisis in US-UK relations. Soviet propaganda media have used ex- tensive quotations from the Western press to create the impression that the Soviet ini- tiative has led to "serious dis- agreements" between the United States and Britain, and provoked a sharp struggle within the United States. Soviet propaganda also stresses that the Soviet pro- posal "practically coincides" with British plans, and that a rejection would-expose the Brit- ish proposals as "mere hypoc- risy," Soviet propaganda describes the Eisenhower-Macmillan communi- que on nuclear test cessation as having "accepted in part" the Soviet proposal. Khrushchev declined comment when asked about the communique, but said that the prospects for agreement are "very good" if the United States and Britain accept "their own" proposals. (Concurred in by OSI) muted the death sentences im- posed on a dozen key officials of the former royal regime. This was followed on 29 March by the Ministry of Interior's rejection; of the application SECRET PART I OF IMMEDIATE INTEREST Pao-f- 7 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 for legal recognition from the Communist-front Republican par- ty. The application of a group with suspected Baathist backing also was turned down. Among those whose sentences were commuted are former Foreign Minister Fadhil Jamali (now 10 years' imprisonment), former Deputy Chief of Staff General Da- hhistarii (3 years' imprisonment), and Nuri Said's son-in-law, Khalik Kanna (10 years' imprison- ment), This clemency on Qasim's part was probably prompted main- ly by his concern over sentiment in the army, where Daghistani is very popular, and a desire to curry favor in religious circles by announcing the com- mutations on the eve of the holidays at the end of Ramadan. On 30 March,Qasim dramat ically postponed the execution of five Baathists condemned for the attempt on his life last October. This action is likely to result in adverse Communist reaction. Further clashes between Communists and nationalists have occurred in the past few days. The Communist press has bitterly complained that Iraqi police have stood aside while "patriots" have been assaulted. The capabilities of the secur- ity forces to maintain public order are likely to be sorely taxed during the parades and demonstrations which will ac- company the opening of the Com- munist-front Peace Partisans Congress in Baghdad on 3 April. The strength of anti-Com- munist elements has been in- creased by the Qasim regime's anti-Communist measures. Qasim is now more dependent than ever on the army as his chief polit- ical support; consequently, key army officers, mostly anti-Com- munist, will probably play a vital role in future develop- ments. Arab League Council Meeting The Arab League Council meeting beginning 31 March in Cairo is unlikely to end in any clear-cut decision on how to coordinate Arab policies on the Palestine question, the main topic scheduled for dis- cussion. The UAR is expected to increase pressure for accept- ance of its proposal--submitted at last month's meeting--for the establishment of a new Pal- estinian "entity" and army. The last meeting, at which Jor- danian opposition'to the pro- posal was intense, ended with the formation of a committee to look into the problem. Qasim, who has consistently refused to send a representative to Cairo, has continued to de- nounce both the UAR and Jordan-- grouping them with Israel--for their "occupation" of Palestine in Gaza and West Jordan. He has called for a return of the Palestinians to their "homeland" and on 27 March announced plans for the training and equipping of all Palestianians in Iraq to form the core of an irredentist army. In the absence of an Iraqi delegate, Jordan will probably continue as the chief opponent to the UAR's efforts to impose its will on the league members, King Husayn has tried to under- cut Nasir's efforts by his offer of a plebiscite to Jordanian Palestinians. The publicity given the arrest and confession SECRET PART I OF IMMEDIATE INTEREST Page 8 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Husayn has conditioned his offer of a plebiscite on the "willingness" of Palestinians in Jordan to have one. The out- come of such a vote--if a free plebiscite should be held--re- mains uncertain. Although there is considerable dissatisfaction among Palestinians with their present status as Jordanian citizens, the hazards of inde- pendence or of isolated associ- ation with the UAR, in the face of possible Israeli occupation, probably would influence many voters to opt for the status quo, SECRET PART I OF IMMEDIATE INTEREST Page 9 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 liqw SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY AFRICAN NATIONALISTS PREPARING NEW MEETINGS. Militant African national- ists will meet at four confer- ences to be held at Accra,, Conakry, and Casablanca during the next two months. Projects to achieve greater African unity will be given heavy propaganda play, despite increasing strains within the growing bloc of emerging African states. West- ern colonial powers--especially France--and the Union of South Africa will again be under heavy fire. Ghana's ambitious Prime Minister Nkrumah, ever anxious to keep himself in the fore- front of the pan-African move- ment, will be host at the first meeting from 7 to 9 April. Labeled an "emergency" confer- ence to discuss "positive action for peace and security" in Afri- ca, this meeting was hastily convoked a month ago after the Ghana-backed drive to force early UN action on France's nu- clear testing program failed to bring immediate results. Repre- sentatives of both governments and popular organizations throughout Africa have been in- vited, and the Ghanaians claim delegates will arrive from at least 20 countries. The promoters of the con- ference have indicated it will concentrate on coordinating ef- forts to forestall, or to react against, further French nuclear tests in the Sahara. The "threat" of "neocolonialism" and African "Balkanization"-- favorite themes of Ghana's lead- er, who is deeply suspicious of France and its African proteges --was an item included on the original agenda. Recent events in South Africa now also appear certain to attract much of the participants' attention. Still more extreme and more sweeping anti-Western pro- nouncements can be expected from the second nongovernmental Afro- Asian People's Solidarity Con- ference (AAPSC), which is to con- vene in Conakry, Guinea, from 11 to 16 April. However, the solidarity movement, launched in 1957 and used by the Commu- nists and the UAR's Nasir as a joint vehicle for exploiting Asian and African nationalism, has subsequently lost much of its momentum. In recent months its permanent secretariat has been torn by dissension between UAR-led neutralists and Commu- nist representatives. This dissension now seems certain to be continued at the Conakry meeting, to which Guinean President Tourd, motivated pre- sumably by his own pretensions to African leadership, agreed last fall. Close UAR control over conference preparations was assured when the Cairo- based secretariat, rather than a special committee, as proposed by the Communists, was charged with making the preliminary ar- rangements. Moreover, the UAR has made a strong effort to pro- duce a majority of neutralist delegates. The Communist bloc repre- sentatives and Communist members of some nonbloc delegations never- theless seem certain to make a strong bid to gain control over the conference once it is under way. In this they will probably be aided--perhaps decisively-- by the bloc's strong position in Guinea. The outcome, and perhaps SECRET PART II NOTES AND COMMENTS Pace 1 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY the future existence of the AAPSC, will be heavily influenced by the attitude of important but heretofore largely indifferent African elements, The next meeting of the new 22-member steering committee of the Accra-based All-African People's Conference (AAPC) is to be held in Accra on 22 April. Means of implementing resolutions adopted by the AAPC plenary meet- ing in Tunis last January will be discussed; major attention probably will be given to the forthcoming constituent confer- ence of the proposed neutralist All-African Trade Union Federa- tion. At that conference, set for Casablanca in mid-May, mil- itant, leftist-oriented labor elements controlled by Nkrumah and Tourd are expected to push hard--but almost certainly un- successfully for the present-- for a clean break between affil- iates of the new federation and the pro-Western International Con- federation of Free Trade Unions. 25X1 Paris has negotiations un- der way or in prospect for granting formal independence to the 11 African states which are members of the French Community. It hopes, however, to retain a greater number of in- stitutions and offi- cial ties than pre- vail in the British Commonwealth. Nego- tiations with the Malagasy Republic (Madagascar) have been completed, and independence is ex- pected to be pro- claimed in June. Negotiations with the Mali Federation have been prolonged by France's insist- ence that the magni- tude of economic as- sistance after inde- pendence depends on continued French con- trol of the naval base at Dakar and on a Mali commitment to support French poli- cies in internation- al organizations. Most of the other Commu- nity states have been awaiting the outcome of these negotia- tions before pressing their cases. Mauritania has announced it will seek independence in FRENCH AFRICA fgfagir Department Anntonoinous Republic t- Overseas territory j Trust territory Federation of Mali ( 1~ Former French Equatorial Africa SECRET PART II NOTES AND COMMENTS Page 2 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 i%lw 4"W SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1961. Ivory Coast Premier Hou- phouet-Boigny, a leader of the four-state, West African Conseil de 1'Entente and steadfast sup- porter of close ties to France, has publicly accepted the evo- lution of the Community. The four equatorial African states, negotiating as a unit, are also reported ready to begin discus- sions with Paris regarding in- dependence. Economic problems are lead- ing most of the new nations to consider some form of loose po- litical cooperation. The states of former French Equatorial Africa are apparently moving in this direction, and recent meet- ings of the Conseil de l'Entente have strengthened ties and prob- ably removed for the moment the danger of further fragmentation of this group. Neither the French public nor parliament seems inclined to PROSPECTS FOR SPECIAL UN MEETING ON FRENCH NUCLEAR TESTING If France tests another nu- clear device in the Sahara be- fore mid-April, public reaction may force a majority of UN mem- bers to agree to a special ses- sion of the UN General Assembly to consider the subject. of French tests. Secretary Gen- eral Hammarskjold now is poll- ing UN members in response to a 14 March request signed by 22 of the 29 members of the Asian- African bloc. Response so far has been sparce and unenthusias- tic, but another French test might change this attitude be- fore 14 April, when replies are due . ` Sparked by the African group, the Asian and African members of the UN decided to ask for a special session after 25X1 France set off a nuclear device on 13 February in defiance of last fall's General Assembly resolution calling on Paris to refrain from such testing. Many Asian and African members were opposed to a special session because they were convinced the assembly had done all it could to prevent French testing. After a series of meetings, however, the group presented the request --feeling that since they talked so much about it, they had to do something. Other factors weighing against a special session are the expense involved, the be- lief that special sessions should be held only in extreme emergencies, and the reluctance of many UN delegates to leave SECRET PART II NOTES AND COMMENTS Page 3 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 oppose this development, and the government is likely to have little difficulty gaining ratification of the new accords or the revisions in France's constitution needed for inde- pendent states to remain Commu- nity members. Community insti- tutions will also be revised to conform to the emerging confed- erative relationship. The most important Community institution --the Executive Council--will probably be replaced by regular meetings of the prime ministers. Both French and African leaders appear to want a smooth transition to independence with- in the Community. French in- sistence on the maintenance of too many formal ties, however, would probably be unacceptable to most of the African states and could result in a complete sev- erance of relations with France. Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY their home capitals to return to New York at this time. In addition, Hammarskjold is known to be opposed to such a session. Forty-two affirmative votes --an absolute majority of the membership--are required to con- vene a special session. At the present time,the Asian-African members estimate that they have 37 votes in favor,but in view of the unenthusiastic attitude of many of their claimed support- ers and the known opposition of France and other Western powers, they do not seem confident of gaining the five additional votes required. ANGLO-GERMAN RELATIONS Political and economic dif- ferences continue to strain An- glo-German relations,which ear- lier, this year fell to a postwar low following anti-Semitic inci- dents in West Germany and rev- elation of Bonn's plans to es- tablish supply bases in Spain. The basic divergence between Chancellor Adenauer and Prime Minister Macmillan over deal- ings with the Soviet Union, especially regarding Berlin and European security, may again come to the surface prior to the summit meeting. British press charges of Nazi influence in West Germany have created pressure on the government from Parliament to arrange access to the records on the Nazi party and affiliat- ed organizations now held by the American-operated Berlin Document Center. The Foreign Office is considering sponsor- ing such access, and sent a high official to Berlin on 23 March to obtain more informa- tion on the documents, The For- eign Office recognizes that in- discriminate use of material on former Nazis now prominent in the Federal Republic would hurt Anglo-German relations, but one official states that Foreign Secretary Lloyd's in- clination to avoid parliament- ary attacks for "shielding Nazis" may cause him to give in. Long-standing differences between Britain and the Common Market (EEC) countries may pro- vide a further irritant to An- glo-German relations. Adenauer on 15 March endorsed the EEC Commission's recommendations for lowering members' internal and external tariffs more rap- idly and for taking the first step toward the common external tariff on 1 July 1960, 18 months earlier than scheduled. A common EEC external tar- iff move would raise some du- ties in the Benelux countries and perhaps in West Germany-- areas which account for two thirds of Britain's EEC trade. London's hope has been that the impact of such a move could be reduced by arrangements between the EEC and the British-backed European Free Trade Association (Outer Seven). Adenauer's en- dorsement of the acceleration plan--blamed partly on the United States by British offi- cials--has dimmed British hopes for making such arrangements and heightened fear of early German discrimra-t-ion against British goods. SECRET 25X1 25X1 PART II NOTES AND COMMENTS Page 4 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 `.r SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY The cabinet which Premier- designate Fernando Tambroni is expected to submit for parlia- mentary approval in early April is a slightly modified version of Segni's all.- Christian Demo- crat government whose collapse on 24 February under pressure from the right brought on the present parliamentary crisis. The Tambroni cabinet, which features the outgoing premier as foreign minister, is designed by the party primarily as a stop- gap .Tambroniwas designated af- ter efforts to form a center-left government under Segni collapsed on 21 March. Segni presumably SECRET PART II NOTES AND COMMENTS Page 5 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET Nme CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 acceded to pressure.from con- servAtive forces in the Chris- tian Democratic party (CD) who are hostile to a government that would have depended on the support, even if indirect, of Pietro Nenni's Socialist party. In its endorsement of Tam- broni, the CD directorate made clear that it regarded his gov- ernment as transitional and en- joined him to work for passage of the most important legisla- tion now before parliament. Pending legislation includes draft laws on agricultural de- velopment, education, and elec- tions, among other matters. Apart from this, Tambroni has no announced program, and it re- mains uncertain where he intends to find a parliamentary major- ity. Tambroni, who has served previously as minister of in- terior and as minister of the treasury, is not a very popular figure, even within his own party, but he may be able to scrape together a majority, re- lying on scattered abstentions and parliament's general weari- ness with the crisis. It is not out of the ques- tion that Tambroni, an excep- tionally shrewd and ambitious politician, would, once voted into ' cif f ice, make every effort to shake off the "transitional" label and entrench himself se- curely in office. ARGENTINE CONGRESSIONAL ELECTIONS In the 27 March elections to renew one half of the Argen- tine Chamber of Deputies, the major opposition People's Radi- cal party (UCRP) won more seats and about 3 percent more popu- lar votes than President Fron- dizi'sIntransigent Radical par- ty (UCRI), according to nearly complete but unofficial returns. Strong discontent over the US- backed economic stabilization program denied Frondizi the Peronista and other non-UCRI support which gave him a land- slide presidential victory in 1958, but he retained the sup- port his party gave him in 1957. The blank vote, advocated main- ly by the Peronistas and Com- munists, had a slight plurality. The UCRI, which had feared an even greater defeat, still holds 111 of 192 seats in the Chamber but probably faces in- creasing political difficulties with the stabilization program. CRP CRI lsou. Chamber Votes % of Total % of Total 2,074,838 24.9 24.3 2,043,128 24.7 24.2 1,775,364 21.4 21.2 SECRET * Unofficial nearly-complete returns. ** Constituent Assembly elections. *** Protest vote, mainly Peronista, neo- Peronista, and,in 1960,Communist, 31 MARCH 1960 PART II NOTES AND COMMENTS Page 6 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 ARGENTINA ELECTIONS FOR ONE HALF OF SEATS IN CHAMBER OF DEPUTIES DEFENSE ' (BASED ON UNOFFICIAL RETURNS) PARTY LIBERAL PARTY OF CORRIENTES PARTY 2 LIBERAL PARTY OF CORRIENTES 2 The administration party fared better than most observers anticipated, in view of strong _popular discontent over auster- ity measures under the US-backed stabilization program. Fron- dizi has publicly admitted the unpopularity of his program but insists the program is neces- sary for Argentina's long-range economic rehabilitation. Since the program began in January 1959, living costs have doubled, the steepest rises including food produced within the coun- try. Just before the elec- tions, Economy Minister Alvaro Alsogaray announced a "price stabilization campaign" against unjustifiable price rises. By retaining a majority in the lower house, as well as in the completely UCRI Senate, Frondizi has at least temporarily avoided the UCRP threat to scuttle his program. The con- servatives, who now have four deputies, have criticized the program's execution, but ap- proved its general outline in contrast to the complete condemnation of the UCRP. The propaganda value of the UCRP victory, however, will make Frondizi?s task more difficult and subject it to even closer scrutiny by other Latin American countries con- sidering stabilization pro- grams. SOVIET ECONOMIC AID TO THE UAR The USSR is attempting to fortify its role as the UAR's primary source of foreign aid by renegotiating and speeding implementation of the Soviet- Syrian economic cooperation pact of 1957. A Soviet team,, led by a deputy chairman of the SECRET PART II NOTES AND COMMENTS Page 7 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET USSR's foreign economic rela- tions committee, now is in Damascus discussing changes, and possible expansion of proj- ects called for under Moscow's $150,000,000 line of credit, giving emphasis to projects which can be implemented im- mediately. The discussions also may result in new offers of Soviet aid. In sending the delegation, Moscow apparently was prompted in part by Cairo's complaints that the USSR was not meeting its commitments under the 1957 agreement, which concentrates largely on hydroelectric, irri- gation, and transportation proj- ects. Soviet leaders, presum- ably well aware of Nasir's drive to step up economic development in the Syrian region, may have welcomed the opportunity to re- furbish the Soviet aid program for the northern region; this. has been stymied in part by Syrian lack of cooperation. Moscow probably feels it can convince Cairo of its good will by reviving the Soviet- Syrian aid pact. This would tend to reduce Nasir's suspi- cions that Moscow is actively supporting Arab Communist agi- tation to regain independent status for Syria. In contrast to the USSR's efforts in Egypt, its activity in Syria has been lagging since creation of the UAR in 1958. While the Soviet Union can be expected to step up the pace of its economic aid program in Syria, Moscow also will persist in its efforts to maintain its prominent position in the Egyp- tian region. The Soviet show project there unquestionably is the Aswan Dam, and Moscow appar- ently will do its utmost to com- plete the project rapidly and efficiently. Preliminary work began early this year, shortly before Cairo announced that the USSR would construct the entire project. Subsequent statements by Nasir have ruled out Western participation in building the dam, but have invited aid for other economic projects. Soviet engineers probably will start major construction work in the next few months, now that the final blueprints have been sub- mitted to Cairo for approval. In addition, the Soviet Union is proceeding with the implementation of its $175,- 000,000 line of credit which is largely oriented toward the industrial sector of Egypt's economy. Most of the projects agreed to under the credit have been contracted for, and in some instances actual construc- tion work has begun. There are, however, in- dications that Moscow is en- countering some difficulties in meeting its commitments under this agreement. Any de- lay may hamper Cairo's goals for its new development pro- gram. Egyptian officials are also unhappy with Soviet per- formance to date on the Alex- andria shipyard project. Although certain deficien- cies inherent in Soviet economic aid may at times disturb UAR officials, Cairo undoubtedly is cognizant of the offsetting advantages. Moscow not only has allowed low rates of in- terest and long-term payment schedules, but also will per- mit Cairo to repay credits largely in cotton. Thus, while Cairo may ultimately cancel certain projects under the Soviet credit and seek Western assistance, which is becoming increasingly available, it presumably will also maintain 25X1 its policy of utilizing Soviet credits to their fullest ex- tent. (Prepared by ORR) SECRET PART II NOTES AND COMMENTS Page 8 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY The Ulbricht regime has de- cided to complete collectiviza- tion of the'East German country- side by the end of this year, The decision was apparently based on the succegs in complet- ing collectivization during the first three months of 1960 in eight districts, most of them in the northern part of the country. This campaign raised the percentage of East Germany's socialized arable land from 52 to more than 80 percent. The speed of the campaign thus far probably cannot be maintained, however, in the southern parts of the country where great- er peasant resistance is ex- pected. The East German regime has probably taken this decision in order to make even more emphatic its contention that East Ger- many,with a "popularly accept- ed socialist system," is a sepa- rate state from West Germany. The regime will try to cite complete collectivization to strengthen its claim that re- unification on any but Commu- nist terms is an impossibility. The regime is troubled by many charges both within and outside East Germany that force is being used to collectivize the peasants; in fact, it has publicly admitted that some excesses occurred. Ulbricht's problem'is clearly one of how to use coercion in the more resistant southern districts without appearing to do so. Unlike the northern dis- tricts, where farmers general- ly live in villages, most peasants in the south live on individual farms. The ruthless methods used by the Communists reportedly have led to sharp differences in the central committee and widespread criticism among rank- and-file party members. The successful operation in the northern districts has not been carried out without cost to the regime. The re- sulting social upheaval has threatened to cause production losses, and increasing numbers of peasants may attempt to flee to the West. Precautions have been increased, and a re- cent report states that the zonal and sector borders around West Berlin are being cleared to aid authorities in halting flights. In spite of these measures, more,peasants can be expected to attempt an escape as the hopelessness of their status as private farmers be- comes evident. Farmers will find only mo- mentary encouragement in the fact that the regime now is soft-ped- aling the collectivization drive and is encouraging them to gdt on with the spring field work. This lull is probably temporary, and if a reasonably successful harvest is attained,a full-scale campaign is likely to be re- sumed after the harvest. by ORR) SECRET (Concurred in PART II NOTES AND COMMENTS Page 9 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET `?e CURRENT INTELLIGENCE WEEKLY SUMMARY Communist China is making a substantial effort to expand its influence in Nepal with grant aid--now brought to a to- tal of $33,600,000 by the Sino- Nepalese aid agreement signed in Peiping on 21 March. Besides ac- cepting a new grant of $21,000,- 000 to augment that of $12,600,- 000 given in 1956, Nepal's Prime Minister Koirala agreed that Chinese technicians may come to Nepal to implement the develop- ment program. Nepal, which has been wary of an influx of bloc experts,, quickly utilized more than $4,- 000,000 in cash under the 1956 agreement but has done little about the remainder, which was to be provided in the form of machinery and equipment for small industrial plants. Pei- ping, apparently anxious that its aid program appear success- ful, probably suggested that Katmandu accept Chinese tech- nicians and discharge its re- sponsibilities on the Chinese- financed projects without fur- ther delay, The Nepalese, how- ever, probably will limit the number of Chinese technicians to the minimum necessary to carry out the aid proj- ects. New Delhi Nepalggnj SECRET PART 'II NOTES AND COMMENTS Page 10 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Koirala also agreed that the Chinese may open an embassy in Katmandu, a matter Peiping has been pushing for at least a year, In 1956, the Chinese re= ceived Nepal's approval to open a consulate general in Katmandu and several trade agencies else- where but agreed to delay estab- lishment of these posts, Chou En-lai, who is expected to visit Nepal in late April, now may press for permission to open these posts as well as the embassy. Nepal has a con- sulate general in Lhasa and trade agencies in Tibet, and will open its own embassy in Peiping. According to-the joint communiqud released on 25 March after Koirala's 11-day trip to China, the two nations will sign a treaty of peace and friendship during Chou's return visit, Peiping report- edly is pressing the Nepalese to include a clause in this treaty on nonparticipation in military alliances,but Koirala mans ed to put off discussion of this . Railroad Road - - - - Trail A Nepalese Trade Agency A Designated market for Nepalese traders Rounderies ore not necessorily those recognized by the U.S. Government. ~z O a. fa is n4N QIOmr t 7;eim ndu N Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET `"W CURRENT INTELLIGENCE WEEKLY SUMMARY In a third document, also signed on 21 March, Peiping ac- cepted Nepal's request that the "traditional" boundary be used as a "basis" for final border de- marcation. A joint commission will set out markers and work out exact alignments in areas where boundaries shown on Chi- nese and Nepalese maps do not coincide. In those few areas, "actual jurisdiction" over the ground will determine which side gets the territory, and, if there is disagreement on this point, the matter will be settled in consultation. Both sides have agreed to withdraw armed military units 12.5 miles from the fron- tier, leaving the border zone under civil administration. The jurisdiction and bound- ary commission clauses will allow Peiping to prolong final demar- cation if it wishes, yet they acknowledge its position that jurisdiction is a .significant factor in determining ownership. The Chinese have repeatedly ad- vanced this contention in their dispute with India, and, when Chou visits Nehru for border talks in April, he undoubtedly will cite these aspects of the agreement with Nepal as a prec- edent for a future agreement with India and as an example of Peiping's flexibility. Koirala's objective had been to secure Peiping's recog- nition of the customary boundary, This, he felt, would forestall border incidents and possible entanglement in the Sino-Indian dispute. While the Chinese may have used Koirala's con- cern about the boundary in bargaining for greater economic and diplomatic contacts, the Nep- alese prime minister in turn was able to get the border agree- ment and increased financial aid by playing on Peiping's de- sire to impress India with its reasonableness. He probably feels the agreements consoli- date Nepal's neutral position and balance its relations with the major powers in such a way as to gain maximum benefit from each. (Prepared jointly with ORR) 25X1 Since the fall of 1959, the Indian Government has intensi- fied measures designed to im- prove its over-all defense pos- ture, especially in the Hima- layan border regions. Sino-In- dian difficulties along the border resulted in an increase of about 2 percent--and possi- bly more--in the original 1959- 60 defense allocation of $578,- 400,000 in the current and capi- tal accounts while the 1960-61 allocation will be about 11 per- cent higher.. Finance Minister Desai has hinted that he may have to ask for even more "if circumstances necessitate it." The bulk of the increase intended for the army; a large portion will go toward higher pay and more benefits for military personnel. In ad- dition, the Territorial Army, a stand-by reserve force, is to be revitalized; the Nation- al Cadet Corps, which provides youths with elementary mili- tary training, is being broad- ened to include 50,000 youths; and investment in India's gov- ernment-owned ordnance facili- ties will be slightly augmented, The provinces, too, have been affected. Administration in Assam and the North East Frontier Agency (NEFA) has been tightened up. More intensive administration of the 1-order areas is planned in UttarPra- desh and Himachal Pradesh. Uttar SECRET PART II NOTES AND COMM13NTS Page 11 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY INDIAN BUDGET (MILLION DOLLARS) 1957-58" 1958-59" 1959-60' ACTUAL (EINALI FIGURES n REVISED BUDGET ESTIMATES 1960-61` BUDGET ESTIMATES Pradesh has budgeted nearly $2,- 000,000 in 1960-61 for improv- ing border communications and for other development programs. About 16,000 National Cadets will receive training in that state alone. Measures to improve military capabilities in..the Himalayan re- gion have included: (1) the purchase of 1,000 pack mules from abroad; (2) the es- tablishment of "a high-altitude research laboratory" in Uttar Pradesh to study "all aspects of life" for troops at high alti- tudes; (3) the trans- fer of nearly a divi- sion from the Punjab to the Assam area; (4) the regrouping of another division in the Assam area; (5) the establish- ment of a corps head- quarters to supervise these. divisions; and (6) an Apparent in- tensification of op- erations to quell the rebellious Naga tribesmen, against whom New Delhi has spent nearly $5,000,- 000 during the past two years. KASHMIR ISt.ha In Lfl. is SECRET INDIA Area of Naga hostilties 31 MARCH 196? PART II NOTES AND COMMENTS Page 12 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 NETHERLANDS NEW GUINEA Renewed tension between The Hague and Djakarta is in prospect as a result of growing concern in the Netherlands for the security of West New Guinea. Long uneasy over Indonesia's growing military strength, the Dutch have again been disturbed by recent reports of the con- struction--with Soviet aid--of a marine institute on Amboina (Ambon) in the Moluccas. They see further cause f6r worry in Indonesian Army Chief of Staff efforts to build up' their defense in, New Guinea. They consider the issue a ques- tion of NATO solidarity, and will probably renew pressure for assurances of military support from the United States and Britain, as well as from Australia. They have in the past threatened to divert NATO- committed equipment to the"ieland. Although still determined not to relinquish the colony Iunn K.,,,i TAIWAN (l!K) "r-SOUTH VIETNAM 31 MARCH 1960 31083 Nasution's recent statements that his government plans to intensify the "struggle" for New Guinea. In view of Indonesia's suc- cess in strengthening its mili- tary position by purchases from the bloc as well as from the Netherlands' allies, the Dutch can be expected to continue their ( FRAM, I A 'AMEOINA NEW GUINEA A _ fr., n:~:. e, u to Djakarta, The Hague realizes some adjustment of policy is necessary. Dutch officials fear that a fifth UN General Assembly debate on the issue would result in a closer vote than any of the previous four, and one official has recently suggested that the Indonesian SECRET PART II NOTES AND COMMENTS Page 13 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY claim be referred to the Inter- national Court of Justice, Djakarta would almost certainly oppose any such approach, main- taining its position that the only acceptable solution is cession of the area to Indonesia. There are still differences of opinion in the Netherlands over the long-term future of West New Guinea, The beginnings of a policy may emerge, however, from the current consideration of recommendations by T. H. Bot, the Interior Ministry's state secretary on New Guinea affairs, that Dutch-Australian cooperation and coordination in the develop- ment of New Guinea be acceler- ated.. Bot hopes this would eventually lead to the develop- ment of a Melanesian union, in- cluding Australian-administered trust territories on the main island and adjacent to it. There is renewed interest in this approach as a result of the successful joint efforts of the Dutch and Australians since 1958 to improve economic and social conditions on the island. SECRET PART II NOTES AND COMMENTS Page 14 of 15 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 WSMOP, SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY PATTERNS AND PERSPECTIVES Shortly after Marshal Lin Piao became minister of nation- al defense in October 1950, there were indications that steps were being taken to re- vitalize the vast Chinese Com- munist militia organization after a period of partial ob- scurity in late 1958 and most of the following year. The relatively Well-drilled and well-equipped militia division that appeared in the parade in Peiping on 1 October was given considerable publicity; in No- vember a number of articles on the militia appeared; and in December and January a series of regional militia conferences were held. Peiping released informa- tion in early February on a national militia conference re- cently held in that city. This conference, attended by Chou En-lai, Marshal Ho Lung, Chen Yi, and other notables, passed a resolution to "continue the policy of further intensifying militia construction and the large--scale organization of Militia Division in 1 October 1959 Parade, Peiping. militia units." A series of rallies has since been held throughout the country, Militia After 1949 Prior to the takeover of the mainland in 1949, the 11... To turn the whole nation into soldiers through the militia system has many advantages..... It can build up reserve forces with a high degree of political consciousness and military training.... It can set up unified labor organizations.... It can scientifically distribute labor power, raise the people's labor efficiency, and promote a big leap forward in product ton. It can increase the organization, discipline, and militancy of the peo- ple." --Philosophical Stud 10 January 1959 "The organization of militia divisions is a good things. It should be universally popularized. Militia divisions are military, labor, educational, and physical culture organizations all rolled into one."--1W Tse-tung, People's Daily 1 October 1959 Communist militia, at that time virtually indistinguish- able from other military units in the Chinese Communist ar- mies, was a significant force in the large-scale guerrilla operations against the Nation- alists. After victory had been SECRET achieved, however, yin terest in the militia declined both on the part of the profes- sional military, who became primarily in- terested in modern- izing the regular army, and the Commu- nist irregulars, who wanted to return to civilian life. Early in 1950 the regime began to take more notice of the militia and pro- moted the organiza- tion of units through- out the country. There were no age limits and apparently few physical PART III PAT^"iNS AND P : 3 ~T;CTI airy" Page ' 1 of Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 requirements for militia candi- dates, but political reliability was stressed. Despite the min- irnal requirements and the prom- .iso of extra rations, there was very little initial respo11sb to Peiping's appeals. Nevertheless, the regime felt that the militia had been of considerable value in fur- thering domestic policies; moreover,.the concept of armed masses was basic to Mao's mil- itary doctrines. In late 1950, therefore, the organization was further expanded, a more formal structure developed, and addi- tional toles were assigned. The militia's duties were redefined to include: (1) as- sisting the regular army in all its functions and taking over some garrison duties; (2) main- taining peace and order in the villages; (3) assisting-in tax collection and the collection of all foodstuffs; (4) recruit- ing and supervising civilians in construction projects; (5) tak- ing a population census; (6) com- bating bandits and apprehending spies, saboteurs, and cot rater-- revolutionaries; and (7) in time of war, maintaining and preserv- ing order in rear areas, protect- ing and transporting wounded, and fighting alongside the reg- ular army and public security troops. During the Korean war, the militia was increased in size and was given more public secu- rity duties to perform. It is not believed to have participated directly in military operations in North Korea. Conscription and the Militia Until 1954 the regime stressed that recruiting for the militia should not be com- pulsory, but in March of that year all males between the ages of 18 and 45 were required to enlist in local units. The structure was broken into two major components: "cadre" mili- tia and universal militia--a distinction which has taken on increasing importance. The more carefully selected cadre militia, was made up of able- bodied men between 18 and 25 who had been recommended by the cadre company commander, under- gone a period of political ob- servation, and been approved by lower level party and govern- ment officials, One of the early goals of the militia was to pave the way for the establishment of a com- pulsory military-service pro- gram. In 1955 the first con- scription law was passed and men were drafted into the Peo- pl'e's Liberation Army. The "From now on retired servicemen will Join the militia every year; they will adopt the method of apprenticeship to train soldiers in curious catego- ries.... They may train a naval reserve in connec- tion with the fishing and shipping industry, an air reserve force in combination with civil aviation... a tank reserve through the operation on tractor sta- tions.... In this way militia training can be com- bined with production and construction." --Peoalets Daily, 1 i?hy 1959 "The active assistance of People's Liberation Army units to the various local departments in mil- itia work has markedly raised the political con- sciousness and the military standards of militia- men.... The PLA unite also systematically train military instructors and enable them to teach gen- eral military theories as well as conduct actual drills." --New China News Agency, 23 lhrch 1960 militia had only a small admin- istrative role in carrying out this first draft, but by 1958 nearly all conscripts for the army were taken from militia ranks, where they were to have received some military training and indoctrination. Peiping then incorporated the reserve program into the militia, and the reserve ceased to exist as a separate entity. Demobilized servicemen, veterans, and former reservists were urged or compelled to go into cadre militia units, where they were used as instructors. There now are about 7,000,000 of these, SECRET PART III PATTERNS AND PERSPECTIVES Page 2 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Iftopr SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY and this proportion can be ex- pected to expand considerably in the future, as demobiliza- tions begin to. affect the 500,_ 000-800,000 conscripts inducted by the regular armed forces each year since 1955; conscripts remain on active duty for three years in the. ground,, forces, four years in the air force, and five years in the navy. An able- bodied male in Communist China now can expect to spend most of his adult life associated with military or paramilitary organ- izations. Militarization-of Population In mid-1958, the militia received considerable impetus from the vast commune develop- ment program. An enormous sup- ply of trained. and "disciplined" manpower was needed to carry out communal projects. Further- more, the regime, anticipating strong resistance to its plans, apparently felt extraordinary controls over the population were needed before the socio- economic structure of the coun- try could be reorganized.. The militia was thus made one of the principal instruments for implementing such controls, and a huge "everyone a soldier" cam- paign began... To stimulate en- listments, nationalistic prop- aganda themes and such slogans as "Liberate Taiwan" and "Hate the United States" were stressed. The attacks on the Nationalist- held offshore islands that fall may have been undertaken, at least in part, to further this program. Numerically, the gigantic recruitment program appears to have been a success; some re- gions reported that every able- bodied man and woman between the ages of 15 and 50 had en- rolled. According to the Com- munist press, there were more than 220,000,000 people in the militia at the end of Septem- ber 1958. They were organized into 155 divisions, 345 inde- pendent regiments, 392 independ- ent battalions, and 435 inde- pendent companies. The unit designations were, and still are, little more than conven- ient labels attached to militia units for administrative pur- poses. The decline of military ac- tivity in the Taiwan Strait and a slowing down of the commune movement tended to minimize both the real and ostensible reasons for pushing the mili- tia, and Communist press and radio commentary on it declined toward the end of 1958. There was no indication of any change in its size or structure, but 25X1 military train- 25X1 ing for members of the universal militia may have been de-emphasized Artillery Training SECRET PART III PATTERNS AND PERSPECTIVES Page 3 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET -.W` CURRENT INTELLIGENCE WEEKLY SUMMARY and their activities directed toward special construction tasks or emergency operations :such flood work and drought and insect-plague relief. Cadre units, on the. other hand, ap- parently continued and expanded their training programs, Training Most members of the mili- tia have had little or no mil- itary training beyond a few indoctrination lectures and a minimum of close-order drill. About 30,000,000 have received some generalized instruction, primarily in infantry tactics, and about 14,000,000 have fired live ammunition either in mili- tia units or while on active duty in the army. Training for the militia varies considerably from unit to unit, depending on the loca- tion of a unit and its function, as well as on local political, economic, and military condi- tions. Cadre militia in "front" areas--such as Fukien Province, opposite the Nationalist garri- sons of the offshore islands--- are given comprehensive instruc- tion with the most modern weap- ons and equipment available and are, in fact, integrated with the army for much of their peri- ods of active duty. Cadre units in metropol- itan areas are often given more specialized training than their rural counterparts, possibly because of the more advanced technical skills of the members and the greater availability of instructors and equipment. In Shanghai, for example, naval engineering, naval navigation, radar operations, and tele- communications were taught in 1959. Rural cadre units usually are drilled in rifle squad de- fensive and offensive tactics and combat supply and engineering problems. Universal militia-- by 1959 these were usually called ordinary militia--are more likely to be given instruc- tion in first aid, fire fight- ing, or highway construction. Throughout the militia program; there is considerable effort to relate the civilian activity to training: a farm tractor driver often becomes a tank driver; a shipyard work- er studies naval damage con- trol. Militia regulations em- phasize that such instruction must not interfere with produc- tion. Thus urban cadres cus- tomarily drill before and after the working day, and in rural areas training usually is given on a full-time basis during slack periods in the growing season and during the winter. A militia handbook states, "Political training should be made the basis of militia train- ing, with military training taking second place." This is carried out in practice, as militia on full-time training duty are required to spend up to three hours each day on po- litical studies, Defectors have indicated that most, and in some instances all, instruc- tion given ordinary militia members is political. Weapons, ammunition, and equipment for militia are usu- ally issued only for the dura- tion of the specific training periods, except where the mili- tia is performing security duty, The present practice differs considerably from that of pre- vious years, when small arms were issued on a permanent or semipermanent basis. The change was probably made when the number of men exceeded the available supply of small arms, but there is some indication that the regime felt it would be safer to maintain a close control of all available weap- ons as some of the less popular SECRET PART III PATTERNS AND PERSPECTIVES Page 4 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 internal reforms were put into effect. There are no govern- ment uniforms available to the militia, although a few of the wealthier communes have sup- plied some of their units Control of the Militia Regulations state that in case of mobilization, militia units--probably only cadre types--will be drafted into the regular units with which they train. In case of conflicts with bandits or reactionaries, militia serving alongside or in army and public security units will come under the command of those units. The over-all con- trol of the militia in peace- time probably comes under the Types of Units In various sec- tions of Communist China the militia takes on unique characteris- tics. In coastal areas, for example, small naval craft seem to be permanently as- signed to the militia, and fishing boats be- longing to militiamen are frequently armed with automatic weap- ons---including 37-mm.. guns. These craft have often been ef- fective in protecting fishing fleets and on occp,-;ion have driven off or crippled South Korean and Chinese Na- tionalist vessels. The presence of these units also minimizes the possibility of other fishermen defecting to Taiwan. Department of Mobilization of the, Ministry of National Defense; at lower echelons a combined army-party-government structure appears to be charged with the control of the various units. A militia manual states that these forces are subject to the direct command of the People's Liberation Army at all levels, but that party committees have the responsibility for or- ganizing the headquarters of the militia, for organizing training, and for commanding the militia. To promote party control, secre- taries of party cells are re- quired to serve concurrently as political commissars in militia units. SECRET' In many areas there has been consid- erable emphasis on re- cruiting women. In some instances these PART III PATTERNS AND PERSPECTIVES Page 5 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET women are given combat infantry training, although usually they are only given a few first-aid and political lectures. Women are incorporated into both ca- dre or universal organizations or even organized into all- women units. Still another type of unit that has appeared in some parts of the country is the Rear Serv- ice Militia, composed of youths under 15 and infirm males over 50. These perform various me- nial tasks in lieu of military training during peacetime; in wartime they are to handle sup- plies and care for the wounded. Native units were formed in Tibet during 1959 for use against rebels, but the expe- riment apparently was not suc- cessful and was soon terminated. Some Tibetan militia reportedly took advantage of the arms and the training to mount opera- tions against the Communists. Summary The diversity in the kinds of militia troops, the differ- ent ways in which regulations are applied, and the varied type of training given through- out China indicate that the re- gime has developed the militia with considerable flexibility and expediency and has attempted to gain all possible advantages --political, military, and economic--with only a minimum of expenditure; efforts to es- tablish nationwide uniformity in regulations and operations are clearly secondary to these considerations. The great majority of the 200,000,000-260,000,000 Chinese said to be in militia units, with the little military train- ing they have, could not form a first-line reserve. Nazi Germany, scraping its manpower barrel toward the end of World War II, was barely able to boost its armed forces over 10,000,000, well under 15 per- cent of the population. Hence, even with the "equality" of women for militia service, it is impossible to give full mil- itary weight to an organiza- tion whose membership by Chi- nese claims approaches 40 per- cent of the population. Despite its experience with the militia, Communist China appears still to consid- er the present organization embryonic in form; for example, the regime has stated that in "five years" the militia will take an effective part in tacti- cal operations. The organiza- tion, now primarily a security and a shock-labor force, may take on greater military significance as a "storage place" for regular army units if Communist China should make some disarmament moves. SECRET PART III PATTERNS AND PERSPECTIVES Page 6 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY THE FRENCH ARMY IN POLITICS Although be Gaulle has en- o11 et:i.cally reasserted civilian control over the military fol- lowing the abortive French set- tler ins,tir:rect.ion in Algiers in January, the Paris government must still cope with an anti- Republican mentality which many French officers developed in the course of their unsuccess- ful colonial campaigns. A mi- nority of "activist" officers has fostered this attitude among conscripts and spread it among the civilian population through veterans organizations,, De Gaulle is trying to convince the military that the retention of Algeria cannot be the prin- cipal goal of an army which must adapt itself to global com- mitments. Political Forces in Arm1 Most French Army officers prefer to confine their inter- ests to matters of national de- fense, and they have no desire to involve the army directly in politics. Prior to January, many of these would have been swayed by their desire to avoid any threat to the unity of the army, and there was a serious danger they might follow the, lead of extremists intent oil changing government policy. Chief of Staff Fly, for example, argued in cabinet meetings that the preservation of army unity was the overriding necessity in viewing any government action against the insurgents. Never- theless, he supported De Gaulle, as did the great majority of-top officers. These men had long subordinated France's position in Algeria to other elements of national defense policy--crea- tion of an independent nuclear deterrent, relations with NATO, or the modernization of conven- tional forces, Nevertheless, a different perspective prevailed in lower officer echelons, and De Gaulle's reminder, to the army in early March that it has global re- sponsibilities reaching far beyond Algeria was probably aimed at officers whose polit- ieal.ideology has been warped by a narrow interpretation.of France's postwar problems. Many of them have been disillusioned by the ineffec- tiveness of the republic. They view the struggle for Algeria as the culmination of a long battle against "the politicians" who, they feel, were responsible for an ignominious withdrawal from Indochina and the loss of Tunisia and Morocco, and they supported De Gaulle because they felt he would put an end to the debilitated democracy of the Fourth Republic. Disappoint- ment at De Gaulle's adherence to democratic forms, however, has subsequently led many of those officers to oppose him, and the preservation of France's position in Algeria became their rallying point. Spearheading these ele- ments it a group of middle-grade officers who are convinced that the ota.ly viay to defend France against the Communist threat is to adopt the "revolutionary war" techniques the Viet Minh used against the French in Indochina. This group would indoctrinate the armed forces with these techniques and, if necessary, apply them' in the domestic po- litical sphare as well by cre- ating an authoritarian regime which, it holds, could meet the Communist challenge. These officers pushed the creation of psychological war- fare schools in which all new officers and draftees are in- doctrinated, Elite troops such as parachute regiments, Foreign Legion elements, and specially trained African units have been singled out for spe- cial political indoctrination. While this has resulted in dis- ciplined, efficient fighting SECRET PART III PATTERNS AND PERSPECTIVES Page 7 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927A002700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET Ifto, CURRENT INTELLIGENCE WEEKLY SUMMARY units, it has widened the rift between the fighting man and the society he is pledged to defend. An anonymous army major writing in the semiofficial army mag- azine Message of the Armed Forces emphasized this rift when he attempted a theoretical jus- tification of disobedience when the state fails to take army views into consideration. Army's Impact on Politics In the long run, the most important aspect of this atti- tude will be its impact on French political life. The French Army now is barely 30 percent professional, with the lower officer and enlisted categories largely conscripts and reserve officers fulfill- ing their military obligation. Although this opens the army to the moderating influ- ence of a continuous and exten- sive turnover of personnel, the return of conscripts to civilian life after 27 months of indoc- trination widens the political influence of the psychological warfare officers and provides a channel for their ideas to the general population. The wide- spread use of veterans' organ- izations and service magazines edited by psychological war- fare officers and addressed to the demobilized civilian has proved an efficient means for continuing political indoctri- nation. Direct identification of military personnages with po- litical movements has not been extensive in the past in France, and even in the 1958 National Assembly elections, few high- ranking military leaders played an active role. Despite the military overtones of the 13 May coup, in the ensuing elec- tions only 17 generals and colonels ran for office in metropolitan France, and only five of these were elected. The military has much in- direct support, however, from the large number of veterans groups, and rightist political parties and cabinet members have frequently identified themselves with policies considered favor- able to the armed forces, Al- though veterans have devoted themselves largely to pressing for continued or increased pen- sions, the exposure to authori- tarian political ideas while on active duty has had an impact on their broader political orien- tation. Veterans and reserve army groups in Algeria showed in January that former military men were willing to move out- side the legal framework, if necessary, to assure government adherence to their desires. In metropolitan France, veterans groups have rarely participated directly in nation- al elections, and the total membership of the various seg- ments of the badly split vet- erans' movement is not large. The French Ministry of the In- terior has admitted, however, that these groups have a strong influence not only in extreme right-wing circles, but also in the classical right and the po- litical formations opposed to Communism? Extreme Rightists and the Army Much right-wing identifica- tion with pro-army policies prob- ably results from a similarity of interests in increasing the na- tional strength and maintaining the French position in Algeria rather than from any direct in- fluence of the army on political groups or personalities. As a result of the Algerian war, sup- port for the army has been most evident in the Independent party, in the Algerian Unity of the Re- public party, and in a portion of the Gaullist Union for the New Republic. Ties between the army and such fascist organizations as the Young Nation headed by Pierre Sidos, Robert Martel's Popular Movement 13, or Georges Sauge's National Catholicism movement are difficult to pinpoint, but probably result more from the SECRET PART III PATTERNS AND PERSPECTIVES Page 8 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 lemor SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 initiative of the extreme right- ist groups than of army elements. gauge, an ex-Communist who now preaches an extreme form of Christian crusade against Com- munism,,has been quite success- ful in getting army officers to attend sessions at his Center for Advanced Studies and Social Psychology, and he, reportedly floods army posts with propa- ganda pamphlets. Algeria Still the Key The key to the uneasy mili- tary-political relationship is the eventual , disposition, of Al- geria. French control of Algeria has become for the army a,symbol of continued greatness. for France and of the preservation of West- ern civilization,from Communist subversion. Moreover, the army's economic and social work has tied it so closely to Algeria that anything short of the kind of Algerian solution it wants would be likely to stir up dan- gerous new risks for .Paris. Hard on De Gaulle's reaf- firmation of civilian control over the armed forces following the insurrection in Algiers, the government moved to separate the military'and political functions of army leaders in Algeria and to make the administration there more responsive to policy direc- tives from Paris. Police services in Algeria were reorganized and placed under the direct. control of the civilian' delegate general. Officers who had been serving as departmental prefects were re- placed by civilians, and the army was reminded that its primary mission is to conduct the war. On the eve of De Gaulle Is 3-5 Mari-:h trip to field 'installations the separation. of military and civilian responsibilities was emphasized in a government di- rective ordering the army to concentrate on operational ac- tion and remain. above political discussions and electoral opera- tions." - Specific trouble spots in the army were handled directly. Three generals whose sympathies were suspect--Jacques Faure, Andre Gribius, and Henri Miram- beau--were relieved of their commands. Several colonels who had' been close to paratroop Gen- eral Massu or who had been im- plicated,in the Algiers insurrec- tion were recalled and later indicted. The reserve territor- ial units, many of whose troops had,. manned the barricades,, were disbanded, and their members assigned-to other components to fulfill their periodic active- service requirements. Finally, the army's psychological action bureau,.which had blatantly prop- agandized. the integrationist cause, was dissolved and its functions distributed to other army services-. Psychological warfare sections were retained at the divisional and lower levels, however, to meet legiti- mate,needs. .De Gaulle was nevertheless careful to praise the army as a.whole for its social and eco- nomic program in Algeria. The vigorous statements on the paci- fication campaign he made in his March visit were partly designed to warn the Moslem rebels, but they were also aimed at assuring the army that its'importance was recognized. De Gaulle's success in reconciling the army to tradi- tional French democratic processes will,,however, be limited as long as the war with the Moslem rebels continues. De Gaulle's prestige is suf- ficient to guarantee the technical reforms; his, difficult task will be to divert the army's present interest from Algeria by offering it the. chance of new success and new prestige in other fields. The army has been encouraged to take pride in France's nuclear progress and to recognize France's growing international responsi- bilities, so that Algeria will be viewed in the broader perspec- tive which the civilian population has generally accepted. The most likely. prospect for the immediate future is a continua- tion of the uneasy truce which leaves, the government. prey to intemperate decisions by.military "activists"..or civilian extrem- ists. SECRET PART III PATTERNS AND PERSPECTIVES Page 9 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Tndustrial output in the I':ast European Communist satel- lites is to continue growing at a high rate-in 1960, although in most countries the planned rates of growth for 1960, rang- ing from 7.5 to 15 percent,are lower than those achieved in 1959. Bulgaria, having failed by a close margin to achieve the 28-percent increase in in- dustrial output planned for 1959, has set a less ambitious goal for 1960---about 15 per- cent. It is followed closely by Rumania--with 14 percent-- then Czechoslovakia with 10 percent and Hungary with about 8 percent. Poland has scheduled the lowest rate of growth--7.6 percent; East Germany has not yet announced its plans. Industrial Plans During 1960,in conformity with past practices, the con- sumer is to receive some bene- fit from large increases in industrial production; perhaps as much as 5 percent more in- dustrial goods than last year will be available to the con- sumer. Generally, however,the share of national income ear- marked for consumption will decline slightly, and that for investment will increase. The rapid growth of output of heavy industry will support both increased investments in the satellites and larger ex- ports of machinery to the So- viet Union and China. The satellites now export twice as much machinery as they import, with the Soviet Union the major market. The major share of indus- trial growth in 1960 is to come from increases in labor productivity. In most of the satellites, revisions of work norms, amounting to a speed-up, are being implemented or are planned for the near future. 1960 IN EASTERN EUROPE Such reforms are well advanced in Czechoslovakia, East Germany, and Rumania, are under way in Poland,-and are scheduled in Bulgaria. Newly commissioned plants and some replacement of obsolete machinery are also to play a role. Also planned are increases in industrial employ- ment, except possibly in Poland --where the regime is attempt- ing to carry out strict economy measures--and in East Germany, where the flight of refugees is continuing, although at a re- duced rate. Achievement of these sub- stantial industrial goals is also predicated on growing im- ports from the USSR, since, in general, the satellites are deficient in such industrial raw materials as iron ore, non- ferrous metals, rubber, petro- leum, wool, and cotton. Indi- vidual trade agreements for 1960 call for a considerable expansion of trade between the USSR and the satellites. Although prospects for a rapid increase in industrial production in the satellites are favorable, certain important aspects of the industrial plans may be underfulfilled. Con- struction of some large indus- trial projects has tended to lag behind schedule, and pro- duction of certain key types of machinery may be below planned investment and export requirements. The poor quality of production will continue to cause problems and will keep satellite machinery at a compe- titive disadvantage in Western markets. Agricu lture Agriculture continues to be the weakest sector of the satellites' economies. The production by collective and state farms has shown little SECRET PART III PATTERNS AND PERSPECTIVES Page 10 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET _ VAW CURRENT INTELLIGENCE WEEKLY SUMMARY 31 March 1960 response to such regime meas- ures as larger investments and allocations of fertilizer--and, in the northern satellites,was adversely affected in 1959 by the weather. There were increases'in crop production over last year, especially in Rumania and Hun- gary, but meat production fell in East Germany and Poland, where the resulting meat short- ages have tended to increase discontent. There have been re- ports of short industrial strikes in both Poland and East Germany in protest against inadequate ANNUAL PERCENTAGE INCREASE IN GROSS INDUSTRIAL PRODUCTION supplies of certain foods, and freight cars loaded with meat for export are said to have been broken into by mobs. At least sporadic shortages will continue through June. Prospects for a substan- tial increase in agricultural output, especially in bread grains, for 1960 are not good. Bad weather during thefall hampered grain sowing in some areas and reduced planted acre- age. Unusually good weather this spring could correct this shortcoming to some extent,but a bumper crop is very unlikely, particularly in the northern satellites. PERCENTAGE OF COLLECTIVIZED AGRICULTURAL LAND 1960 1955 1956 1957 1958 1959 (PLAN) 1953 1954 1955 1956 1957 31 MARCH 1960 00321 2 1960 (PLAN) Collectivization Policies All satellite regimes except the Polish will continue their programs to in- crease state control over agriculture in 1960. In Bulgaria, Czechoslovakia, and Albania, where 80 to 100 percent of the land is already so- cialized, these pro- grams will be mainly concerned. with the amalgamation of exist- ing collectives and with improvements in the organization and management of the farms. Efforts to squeeze out the re- maining private farms will continue. CZECHOSLOVAKIA 77 84. 65 43 41 47 45 54 31 24 25 29 ji 3 Mj3d 56 # 30 28 \\\\\\\ \26 28 \\\\ 1/%%dmii ia 57 35 39 111~\IMNENN\ 1953 1954 1955 1956 1957 1958 1959 e Percentage of arable land only. # Increased to 70 percent by 2 March 1960. SECRET In Hungary, the amount of arable land now being worked col- lectively or by state farms increased from 27 percent to 57.5 percent of the total during 1959, and to 70 percent by mid- February 1960. The regime now is con- cerned with the need to consolidate its gains, and few new collectives are likely PART III PATTERNS AND PERSPECTIVES Page 11 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY to be formed until after the harvest. Steady pressure to bring private farmers into col- lectives is likely to continue in Rumania and has been speeded up in East Germany. In Poland, however,where collective farms account for only one percent and, together with state farms, for about 13 percent of all agri- cultural land, there will prob- ably be no renewed efforts to collectivize. There may, nevertheless, be some increased tension in Poland between the regime and the peasant, as the regime at- tempts to extend its influence in farm areas through the or- ganization of government-spon- sored "agricultural circles." The Gomulka regime also plans to collect large arrears of taxes and has made the delivery of coal to the peasants contin- gent on stipulated meat deliv- eries to the state. It is un- likely, however, to take the strong measures that would be necessary to achieve these objectives in full. The recent Moscow con- ference on agricultural and re- lated matters appears to have been concerned predominantly with means of raising lagging agri- cultural output. It appears that coordination of certain economic efforts, including SECRET agricultural, was also dis- cussed. Reactions to Economic Problems Popular morale probably suffered in all of the satel- lites in 1959, but the greatest setback was in Poland, the coun- try with the most personal free- dom. There is little prospect of any significant increase in the standard of living during 1960; a large share of the an- ticipated increase in indus- trial output is to be used to reduce the adverse trade balance. Moreover, there will be con- tinuous attempts to raise work norms, employment in'some in- dustries will be reduced, and Gomulka's strongly adverse at- titude toward protests and strikes is unlikely to change. There are indications of rapid- ly rising discontent among the Polish urban workers. In the other satellites, laborers are under pressure to work harder. Gains in wages, if any, will probably not com- pensate for the increase of effort demanded. In East Ger- many and Czechoslovakia, where an effort to increase work norms is well under way, the industrial labor force has stepped up its passive resist- ance to regime plans. (Prepared by ORR) PART III PATTERNS AND PERSPECTIVES Page 12 of 12 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2 SECRET SECRET Approved For Release 2007/10/23: CIA-RDP79-00927AO02700010001-2