CURRENT INTELLIGENCE WEEKLY SUMMARY

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Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY CENTRAL INTELLIGENCE AGENCY 111 OFFICE OF CURRENT INTELLIGENCE C Lti~J. State Department review completed COPY NO. t;(; OCR NO. 2700/60 23 June 1960 e n. Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 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-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Next 5 Page(s) In Document Denied Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 Khrushchev used his speech to the Rumanian party congress on 21 June for a vigorous re- statement of the USSR's inten- tion to maintain its detente policy despite Peiping's increas- ingly open criticism and al- leged American efforts to "re- turn to the worst times of the cold war." His hard-hitting attack on Peiping's interpreta- tion of Marxism-Leninism indi- cates no intention to compro- mise but a determination to de- fend Moscow's ideological pri- macy and hegemony in the Commu- nist world against Peiping's challenge. This is the second time in six months that Khrushchev has chosen a satellite party con- gress, attended by leaders of all bloc nations and free world Communist parties, as the forum for directing strong criticism against the Chinese regime. At the Hungarian party congress last December, he warned that "if the leadership of this or that country becomes conceited, this can only play into the hands of the enemy." In a pre- view of the main points in Khru- shchev's speech in Bucharest, a Pravda editorial on 20 June re- called this earlier warning and Khrushchev's stress at that time on the need for bloc lead- ers "to synchronize our watches:' The sharper tone of Khru- shchev's latest attack on Chi- ne.3e views probably reflects his growing irritation with Peiping's increasingly open criticism of his policies in major articles in the leading Chinese theoretical journal, SECRET OF IMMEDIATE INTEREST Page 1 of 9 DEVELOPMENTS IN SOVIET FOREIGN RELATIONS Red Flag, in April and June, in 7eople 's Daily editorials, and in by Chinese leaders at the recent World Federation of Trade Unions (WFTU) meeting in Peiping. Khrushchev dissected the Chinese approach to Marxism- Leninism with heavy sarcasm. However, he stopped short of open- ly branding the Chinese leaders as heretics. Emphasizing that "Communists who are realists" know that un- der present conditions war must be excluded from society, Khru- shchev asserted that only "mad- men and maniacs can speak of a new world war." Rebutting the Chinese view that local wars are still likely even if there is a possibility of excluding global war, Khrushchev insisted that even local wars must be pre- vented because they can grow into a general conflict whose consequences would be disastrous. He implicitly condemned the Chi- nese for not sharing the USSR's confidence that the growing strength of the Communist bloc will turn the world Communist without resort to war. Khrushchev, in a condescend- ing tone, reproved those Commu- nists who "mechanically" repeat what Lenin said "in quite dif- ferent historical conditions" regarding the inevitability of imperialist wars until socialism triumphs throughout the world. "One must not only be able to read but also correctly under- stand what one has read and ap- ply it in specific conditions," he said, adding that "if-we act like children who in studying the alphabet compile words from - Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 letters, we shall not go very far." Khrushchev has been care- ful to marshal all the East European satellites in support of his positions. Four satel- lites have so far reprinted the highly critical Pravda article of 12 June on the front pages of their newspapers.. Fuma.nian party First Secretary Gneorghiu- Dej, in his opening speech to the congress, fully supported Khrushchev's views on the cur- rent international situation and the role Communist countries should play. After Khrushchev spoke, the heads of the East German, Czech, Bulgarian, Polish, and Hungarian delegations mounted the podium in rapid fire order to give them full endorsement of his speech. East German party boss U1- bricht apparently felt it nec- essary to demonstrate earlier that his regime has no special sympathy for Chinese practices. Neues Deutschland on 17 June courteouslybut firmly rejected the Chinese contention that the path of development from collec- tives to communes holds good for other bloc countries. This pronouncement apparently was in response to a remark by the Chi- nese representative at a recent East German agricultural show that "in Communist China, too, we have taken the road from land reform through collective farms to people's communes." The major Chinese address at Bucharest was given the day after Khrushchev's speech by politburo member Peng Chen, head of the high-level Peiping dele- gation. The speech made no con- cessions on major issues in the current Sino-Soviet dispute, al- though Peng's words were care- fully chosen to avoid antagoniz- ing the congress, which was pub- licly lining up behind Khru- shchev. Peng gave credit for China's economic success to the regime's "leap forward" and com- mune programs--the Chinese do- mestic developments most dis- liked by Moscow. He blurred the question of the inevitabil- ity of war by quoting contradic- tory statements from the 1957 Moscow Declaration and failed to mention "peaceful coexistence." His only endorsement was, for Khrushchev's attack on the United States at Paris. While Peng was judiciously attempting to avoid exacerbating the situation in Bucharest, propaganda emanating directly from Peiping continued to voice sharp criticism of Khrushchev's policies. An article in the official party paper, People's Daily, on 21 June made many of Peng's points, but in much stronger language. Reflecting the Chinese view that. the bloc is in a position to deal from strength, the ar- ticle rejected Khrushchev's pol- icies of "active coexistence" and "friendly cooperation" with the West, calling instead for a "resolute struggle" against imperialism as the only assurance for peace. By implication, the article names Khrushchev a "ren- egade" for branding the Chinese interpretation of Leninism as "stiff dogmatism" and takes the Soviet leader to task for laud- ing "shameful actions of be- trayal" as creative Marxism- Leninism. The Chinese refusal to re- treat from their position, which amounts to a rejection of the ideological basis of Khrushchev's foreign policy, tends to widen SECRET PART I OF IMMEDIATE INTEREST Page 2 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY the rift between the two powers and makes prospects for a com- promise more remote. Anti-US Campaign Khrushchev used his Bucha- rest speech to carry forward his post-summit effort to destroy the favorable image in the bloc of President Eisenhower and American policy which he had done so much to create in the months following his visit to the United States. He repeated his charge that the US had tor- pedoed the summit meeting "by its insolent, provocative ac- tions," stated that American leaders are "incapable of under- standing the conditions which have been created in the world," and asserted that they are "not in a condition to build correct relations among states with different social structures." He said the Soviet people hope to see a president elected who will "understand and correct the mistakes committed by the present US Government." This harsh indictment of American leaders, which gener- ally repeated the line he had taken in his 28 May speech in Moscow, apparently was intended as a further indication that Khrushchev has, in effect, severed relations with the pres- ent administration in Washington. Khrushchev, however, again made it clear that he has no in- tention of abandoning his detente line under pressures from Pei- ping and Washington. He an- nounced that the U3SR will not "give in to provocation and deviate from the general line of our foreign policy" as de- fined by the Soviet 20th party congress and "confirmed" by the Moscow conference of bloc lead- ers in November 1957. SECRET OF IMMEDIATE INTEREST Page 3 of 9 The Soviet premier's speech also revealed Moscow's continued sensitivity to the effects of the U-2 flights in exposing weaknesses in Soviet air de- fenses. He took considerable pains to assure his audience that the flights 'had in no way compromised the USSR's military posture. He asserted sarcastical- ly that the "data obtained by the spy flights are of no im- bortance to the defense of the US" and claimed that the flights "two or three years ago" had photographed only "experimental rocket launching grounds" but not rocket bases "of military and strategic importance." Khrushchev also felt com- pelled to repeat the explanation he had previously given to jus- tify his performance in Paris. In response to questions he said he had received as to why he did not consent to begin the summit talks after President Eisenhower had announced can- cellation of the U-2 flights, Khrushchev contended that the President's statement was a "subterfuge, a half-measure" and insisted that the Presfdent could still "cancel the cancellation of the flights." Geneva Negotiations In both the disarmament and nuclear test ban talks, the Com- munist delegations have stepped up their efforts to establish a record of Western obstructionism. Following the lead given in Khru- shchev's letter to the chairman of the British "Campaign for Nuclear Disarmament," the five bloc delegations at the disarma- ment talks issued a statement on 22 June asserting that "one gets the impression" that the US and its allies have no inter- est in achieving progress. Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET The statement echoed Khru- shchev's claim that the US is attempting to scuttle the nego- tiations or have them mark time interminably. Although a Soviet spokesman hinted to the press that the bloc delegations were considering breaking off the talks, an Izvestia correspond- ent's report on the status of the conference included a state- ment that the USSR was prepared to wait until the return of the American and French delegates. The Communist delegations also increased their efforts to demonstrate an open split between France and the US prior to the French delegate's return to Paris for consultations. In the 20 June session, Soviet delegate Zorin attempted to maneuver French delegate Moch into either admitting that France had reversed its position or that it differed with the other Western delegations. Zorin compared Moch's earlier state- ments with his remarks on 15 June and implied that France had abandoned its position on the priority of eliminating delivery systems rather than merely controlling them. Zorin also implied that the French delegation was in- hibited from carrying out De Gaulle's alleged position link- ing elimination of delivery sys- tems to liquidation of bases for these systems. Zorin claimed that De Gaulle took this posi- tion in his 11 June letter to Khrushchev. The nuclear test ban nego- tiations lkst week did not re- duce the differences over the seismic research program, and the Soviet delegation, in re- sponse to Western prodding, furnished revisions of its pro- posals on other treaty issues. Khrushchev's Bucharest speech and recent soundings by Soviet officials concerning a long re- cess suggest that Moscow does not expect serious negotiations to be conducted until after the U3 elections, but wishes to avoid any implication that the talks will be broken off. Predicting that the con- ference would "obviously". extend into 1961, a Soviet official privately suggested to the US delegation a substantial recess because of the 'US inability to reach policy decisions during an election period.' The West- ern press had previously quoted a Soviet spokesman to the same effect. France, Britain, Canada, and Italy have pressed strongly for a new Western approach in the light of the 2 June Soviet proposal. French chief delegate Moch has been in the forefront of this drive, and on 20 June his deputy submitted a paper at a Western five-power meeting proposing new Western tactics. The French paper ruled out stand- ing pat on the present Western plan or simple rejection of the Soviet plan, and proposed four alternatives--each of which would bring the Western disarma- ment position closer to that set forth by the USSR on 2 June. Despite Moch's emphasis on Western solidarity in his 13 June speech at Geneva, he care- fully noted that the new Soviet plan had adopted the French pro- posal for the elimination of the means of delivery of nuclear weapons, a move he considered an important change. He re- jected the Soviet demand that the West commit itself in ad- vance to a program of total SECRET PART I OF IMMEDIATE INTEREST Page 4 of 9 - Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY disarmament, but he also made clear that France's position was not so flatly in opposition to the new Soviet proposal as that of some of its allies. This attitude had been es- tablished more explicitly in his 31 May address to the Assem- bly of the Western European Un- ion, where he presented the French position as midway be- tween two extremes. He said his American allies preferred to discuss immediate measures rather than distant principles, whereas France insisted on both. Moch also feels that if the West offers no positive re- sponse at Geneva, its position would be extremely weak should the USSR return the matter to the UN. Moch's thinking on dis- armament probably is close to De Gaulle's. The French Presi- dent has reiterated publicly his view that a real detente can have a beginning only in dis- armament, and that control and elimination of delivery systems is a practical appraoch. The British also seek some movement in the Western posi- tion, in keeping with the Mac- millan government's concern with public opinion considerations both in Britain and abroad. Brit- ish chief delegate Ormsby-Gore has suggested the possibility of adding to the Western plan in an early stage some kind of joint study of control over means of delivery of nuclear weapons. This seems designed more to conciliate the French and consolidate the Western position than to compromise differences with the USSR. The formal exchange of in- struments ratifying the US-Japa- nese security treaty on 23 June marks a new stage in Tokyo's po- litical crisis. Prime Minister Kishi, whose methods in obtain- ing ratification of the treaty have made him the scapegoat for recent disorders, announced after the ratification ceremony that he will resign soon but has set no date. Leftist opponents of Kishi's government and ratification, ex- pecting an early general elec- tion, are broadening their at- tacks by calling for repeal of PART I the treaty and opposition to US military installations. Some observers feel that the useful- ness of the treaty as a basis for future US operations has already been seriously impaired. Kishi's expected resigna- tion as prime minister and party president has intensified nego- tiations among Liberal-Democratic party (LDP) faction leaders to agree on a successor. A strug- gle over the succession, or even an interim compromise, might temporarily weaken the government at a time when resolute leader- ship is needed to restore public order. SECRET OF IMMEDIATE INTEREST Page 5 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 The LDP appears to have two courses of action,. It could call a con- vention to elect a new party president, presumably for a two- year term, whom the Diet would then install as prime minister. Under these conditions, observ- ers feel that the most likely candidate would be Hayato Ikeda, minister of international trade and industry, On the other hand, a party caucus could agree on a com- promise interim party president and prime minister in order to put off a major intraparty strug- gle for the posts, in which case Bamboku Ono and Mitsujiro Ishii appear to be more likely possi- bilities. Former Prime Minis- ter Yoshida, who has supported Kishi but now recognizes the need for new leadership, is pressing leaders of the pro- Kishi factions to unite the party in the face of continued leftist opposition and an al- most certain general election, The Japan Socialist party (JSP) considers the security pact "legally invalid" and has vowed continued opposition dem- onstrations like those of 22 June, which were markedly less violent and smaller than dis- turbances before upper-house ratification of the treaty. The J3P is reportedly planning to keep its "Council Against Rati- fication of the Security Treaty," responsible for organizing dem- onstrations, in operation as an instrument for marshaling sup- port in the election campaign. The Communists, backed by propaganda and presumably'finan-- cial support from the Sino-So- viet bloc, have penetrated the organizations opposing the treaty sufficiently to exercise virtual control of the demon- strations. They hailed post- ponement of the President's visit as a "great victory for the Japanese people" and have called for redoubled efforts against Japan's alliance with the United States. They have succeeded in blurring in the Japanese public's mind the dis- tinctions between a wide number of issues ranging from personal dislike of Kishi and government methods in ratifying the treaty to neutralist antipatby toward a military arrangement which might involve Japan in a future war. The Communist efforts have been aided by the willingness of a large part of the Japanese public to accept the disturb- ances by opponents of'the treaty as justifiable responses to Kishi's "highhanded" methods in ratifying the treaty. Japanese university authorities have con- tributed to this apathy toward maintenance of public order by refusing to discipline students participating in violence and by joining the press in blaming the government for the disorders. Japanese police have been unwilling to use harsh measures 25X1 in quelling disturbances because 25X1 of fear of a reaction similar to SECRET PART I OF IMMEDIATE INTEREST Page 6 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET The'widespread demonstra- tions and occasional violence have, however, generated some concern over the threat to law and order. The business com- munity, fearing that the recent turmoil will hurt the vital ex-. port trade, has moved to re- store foreign confidence. Ja- pan's four major business or- ganizations issued a joint state- ment on 17 June regretting post- ponement of the President's visit and promising that vio- lence will be eliminated and normal parliamentary govern- mental processes restored. Continued government in- effectiveness in controlling the leftist extremists is almost certain to encourage ultraright- ist elements to attack the left- ist groups. ALGERIAN CEASE-FIRE PROSPECTS The decision of the rebel Algerian Provisional Government to send a delegation to Paris for cease-fire negotiations has revived hopes for a settle- ment of the rebellion--now in its sixth year--even though prospects for an early settle- ment are slight. The statement by rebel Premier Ferhat Abbas on 20 June characterized De Gaulle's invitation as repre- senting "some progress" but still "far removed" from meet- ing rebel demands. Abbas is expected to go to Paris during the week of 27 June. Ahmed Boumendjel is reported en route to Paris to make preparations for Abbas. The rebels continue to as- sert that:a free referendum would SECRET PART I OF IMMEDIATE INTEREST Page 7 of 9 - Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET result in an overwhelming vote for independence, and only with difficulty could they accept a status short of independence. Some rebel officials might be willing, however, to accept some form of "association" with France, provided it includes a high degree of local autonomy. Advocates of such an expedient include persons skeptical of De Gaulle's ability to guarantee a free referendum as well as moderates willing to discuss a status for Algeria short of full independence in return for an end to the fighting. In any negotiations, the rebels will be handicapped by the need to placate their more intransigent military commanders, while De Gaulle's freedom of maneuver will continue to be limited by the far right and the army. In Algeria, news of the rebels' acceptance of De Gaulle's invitation was received with dismay by rightist groups. There have been no major disorders, however, and extremist leaders are said to be reluctant to in- itiate disorders unless there should be a concerted effort by French rightists to overthrow the De Gaulle government. The "French Algeria" faction in France, headed by former Deputy Premier Soustelle, issued a pro- test manifesto at an orderly rally on 20 June. In view of the wide gulf which separates the two sides, any negotiations are likely to be difficult and protracted. French officials have reiterated that any discussion would "con- cern only a cease-fire, the dis- position of weapons, and the fate of the fighters." More- over, De Gaulle is unlikely to recognize the rebels as the sole political spokesmen for Algeria's Moslems. The rebels, on their part, will insist that the con- duct of a referendum be discussed and satisfactory assurances provided. Both sides, however, view the negotiations as a first step toward a possible settle- ment, and each will probably strive to avoid any early break- down in the talks The inability of Abako leader Joseph Kasavubu to form a broadly based coalition in the Congo forced the Belgians on 21 June to call once again on the radical leader of the National Congo Movement, Patrice Lumumba, to form a government. In contrast to his first effort --when Brussels insisted that he secure the concurrence of all major groups--Lumumba now appears to have a mandate to attempt to form a government on his own terms. In their anxiety to devel- op a degree of stability in the Congo prior to its independence on 30 June, the Belgians may urge Lumumba's rivals not to oppose his efforts to form a government. Spokesmen for the Abako and other groups had SECRET PART I OF IMMEDIATE INTEREST Page 8 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY indicated previously that they would tolerate Lumumba as pre- mier only under Brussels' orig- inal condition that he form a national coalition. Lumumba's prestige increased following a test vote in the newly consti- tuted Chamber of Deputies on 21 June in which his candidate for presiding officer defeated Kasavubu's choice by a vote of ammunition for charges of a Lumumba "dic- tatorship." 74 to 58. The near-stalemate continued the following day, however, when Kasavubu's fol- lowers proved able to organize the Senate. The power struggle between Lumumba and Kasavubu centers on the posts of premier and chief of state. Although Kasavubu appears resigned to Lumumba as premier, he probably aspires to the post of chief of state, a position which the Belgians envisage as largely ceremonial but which in a new nation might be developed into a po- sition of power. Lumumba has said he wants to occupy both posts, but he may be reluctant at this time to hand Kasavubu On the provin- cial level, the threat of political fragmen- tation continues. In at least three of the Congo's six prov- inces, rival pro- vincial governments are in being or im- minent. Lumumba' investiture as pre- mier could trigger further secessionist moves, The status of Leopoldville Province will remain in doubt until Kasavubu's status is de- termined and the Abako assured a prominent role in provincial affairs. In Katanga Province, which is controlled by the anti- Lumumba Conakat party, separatist tendencies are likely to remain strong in the absence of strong assurances from Lumumba of pro- vincial autonomy in local af- fairs. SECRET OF IMMEDIATE INTEREST Page 9 of 9 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 PART II NOTES AND COMMENTS CUBA The resignation of two under secretaries in the Cuban Foreign i'Iinistry, announced on 17 June, appears to be the precursor of a general shakeup that is likely to end in increased Communist in- fluence over Cuba's foreign policy. Foreign Minister Raul Roa apparently has been held re- sponsible for various recent foreign policy failures, includ- ing the collapse of Cuba's effort to sponsor a conference of under- developed nations; he will prob- ably be removed shortly. One of the newly appointed under secretaries--Hector Rodriguez Llompart--is believed to be a Communist; the other recently voiced strong anti-US sentiments during a tour of Latin America. Both may have been selected by Raul Castro, who has played a key role in Communist inroads in the military, organ- ized labor, and other areas. The Castro regime, with the support of the Soviet bloc, is making evident progress in imple- menting its long-standing goal of reducing Cuba's traditional eco nomi dependence on the United States. Cuba, which used to conduct as much as 70 percent of its foreign trade with the United States, now is turning to the Soviet bloc for many of the prod- ucts- formerly bought elsewhere. Data for the first three months of this year indicate that 1960 imports from the United States will probably be half what they were in 1958, the last full year before Castro came to power. The decline results only partly from an over-all reduction in imports to conserve foreign ex- change. Agreements for trade, tech- nical assistance, and credits totaling $120,000,000 have been signed with the USSR, Czechoslo- vakia, Poland, and East Germany since last February. The effects of these agreements will be in- creasingly felt in the latter half of the year, but the credits will not contribute substantially until 1961. Realization that Soviet oil shipments to Cuba will significantly reduce Vene- zuela's share of the Cuban market has already led to a sharp reac- tion from the Venezuelan minister of mines. He said Cuba could not count on access to Venezuelan crude oil in the future if it reduced imports now. A Cuban economic mission headed by agrarian reform di- rector Nunez Jimenez has reached a series of agreements in Mos- cow giving substance to the Soviet-Cuban trade and aid agree- ments concluded last February. It also concluded a cultural ex- change accord, the details of which are to be worked out later, and reached agreement on a Khrushchev-Castro exchange of visits. No formal announcement of dates has yet been made, but Soviet Ambassador Bazykin in Mexico is quoted by a progovern- ment radio in Cuba as saying that the Soviet Union will open its embassy in Havana before Khrushchev visits Cuba "in August." The mission arrived in Warsaw on 19 June, and is also scheduled to visit Czecho- slovakia and East Germany to negotiate for the implementation of the agreements signed with those countries. SECRET PART II NOTES AND COMMENTS Page 1 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUIG Y The Communists will domi- nate the Castro-sponsored Latin American Youth Conference, scheduled to open in Havana on 26 Jul national Communist agencies. Invitations were also sent to some non-Communist organizations, probably to camouflage Communist control of the conference. The Communists of Latin America will thus be given another opportu- nity to coordinate their efforts to win sympathizers among stu- dents of the hemisphere with the guidance and assistance of inter- Madagascar, under French rule since the late 19th century conquest of a native kingdom run by relatively advanced Merina tribesmen, gains its sovereignty on 25 June as the Malagasy Re- public. Independence celebra- tions will not be held until late July, however. The new state, with a popu- lation of about 5,100,000, now is controlled by strongly pro- French leaders and will for the time being retain close ties with France and membership in De Gaulle's recently "renovated" Community. The government lead- ers, who for the most part repre- sent more backward, non-Merina coastal tribes, are anxious to prevent the hinterland Merinas-- the largest and most vigorous ethnic group in Madagascar-- from regaining their former dominance. At present the Malagasy Government is firmly in the hands of President Philibert Tsira- nana, a shrewd politician who has headed the administration since May 1957. His directives have been obediently rubber- stamped by the provisional legis- lature--a body hand-picked from the conservative provincial assemblies by Tsiranana and his allies after their successful campaign in behalf of the De Gaulle constitution in 1958. By a unanimous vote the legisla- ture last January conferred vir- tually dictatorial powers on the executive until next October. Outside the legislature, however, Tsiranana's moderate coalition has been faced with vocal and active opposition, the most important element of which is the Congress party for .SECRET NOTES AND COMMENTS Page 2 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY NUM ' R Y the Independence of Madagascar (AKFM)? This party, launched in 1958 by anti-Tsiranana nationalists, is dominated by hard-core Communists and re- portedly receives important financial and organizational support from the French Commu- nist party. The AKFM's rank and file is composed of extreme anti-French nationalists-- especially Merinas with vivid memories of their 1947-48 re- bellion, which the French suppressed at the cost of some 80,000 Malagasy lives. In municipal elections held last fall, the AKFM made a strong showing in most important urban centers; it captured control of the city governments in Tananarive, the capi- tal and a Merina stronghold, and in Diego-Suarez, where a major French naval base is located. The party is expected to win a substantial number of seats in the National Assembly when general elec- tions are held to re- place the present interim body. There are indications that Tsiranana will schedule a vote soon in the hope of capi- talizing on the role he and his followers have played in achieving independ- once MALAGASY REPUBLIC present regime is in power. Close Malagasy-French coopera- tion, provided for by the bilat- eral accords negotiated last winter, depends on continued French willingness to provide heavy subsidies--about $22,000,- 000 in 1960. Nevertheless, any success Tsiranana may have achieved in his effort to undercut nation- alist pressure: by opting for Both the traditional tribal rivalry and underdeveloped Madagascar's need for external financial assistance and trained personnel contribute to Tsiranana's apparent disinclina- tion to pursue an independent foreign policy and seem likely to keep the island firmly in the French fold as long as the formal independence will_prob- ably be short-lived. Opposition elements, spearheaded by the AKFM, now can be expected to focus on demands for the rapid replacement by Malagasy of French administrators and technicians who hold the key positions in every government department, SECRET PART II NOTES AND COMMENTS Page 3 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 The military regime in Tur- key appears to be still firmly in control, but dissent within the National Unity Committee (NUC) has led to the dropping of approximately 25 percent of its reported membership. The re- gime's failure to win overwhelm- ing popular support is increasing the committee's determination, in the interest of self-preser- vation, to destroy the Democrat- ic party as a political force. Personality conflicts, as well as differing political ori- entation, have apparently emerged within the NUC. The ultimate ef- fect of the removal of Col. Ertu- grul Alatli, the committee's original spokesman, and 11 other officers is not yet discernible. Alatli may soon be assigned a- broad as a military attachd, ostensibly to explain the views of the NUC but more probably to remove a potential source of trouble. Despite public expressions of support for the revolutionary regime, many people in Turkey view the army's intervention in political life with considerable apprehension. American observers in Ankara believe that the re- action of the peasants and low- er classes has not yet made it- self felt. In fact, this seg- ment of the population is still regarded as somewhat in a state of shock as a result of the rap- id political change. ere is still widespread popu- lar sympathy for former Premier Menderes. tors to expose themselves and their past activities to prose- Municipal and provincial governments are being hampered by the army's inexperience with civil government and by the re- luctance of civilian administra- Col. Alparslan Turkes, as- sistant to interim President- Premier General Cemal Gursel, may ultimately emerge as the real power on the NUC. He has proved to be an influential member and is directly super- vising the group of professors drafting the new constitution. SECRET PART II NOTES AND COMMENTS Page 4 of 18 25X1 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Right-wing nationalists in Istanbul reportedly hope Turkes will play a Nasir-type role in Turkish politics. Some RPP mem- bers, aware of Turkes' opposi- tion to RPP leader Ismet Inonu's return to power, believe the colonel may try to push Gursel into the political arena to op- pose Inonu in the next elec- tions. Turkes probably favors a more nationalistic and inde- pendent policy for the new Turk- ish government. The fate of the leaders of the former regime is becoming more uncettain; all of them ap- parently have been transferred to the island of Yassiada in the Sea of Marmara. One government spokes- man has stated that they will be tried under "streamlined" crimi+.. nallaws before a high court chosen by the NUC from a list prepared by the government of professors, judges, and public prosecutors. Orders of the court are to be carried out immediately. Accord- ing to a recent remark attribu- ted to a cabinet minister, there 25X1 is enough evidence of "horrible crimes"to convict many members of the former regime. MIDDLE EAST DEVELOPMENTS The second round of the four-phase Lebanese parliamen- tary elections took place on 19 June in a calm atmosphere and with a low voter turnout. Nearly two thirds of parliament now has been chosen; the rest will be elected on 26 June and 3 July. be able to settle on some- one with a more moderate record. 'Pierre Jumayyil, with Shihab's assistance, appears to have wrested leadership of the Christians away from former 25X6 President Chamoun. The new parliament will include three pro=UAR extrem- ists elected last Sunday. Moslem ranks are already split by a feud between two former leaders of the 1958 rebellion: Saib Salam, who won election in Bei- rut, and former Premier Abdullah al-Yafi, who lost in the same district. The two were allied against anti-UAR elements, but now Yafi,charges Salam'with. "treason." 'Salam, an unsavory character, apparently now ex- pects to be named prime minister; President Shihab'may, however, SECRET PART II NOTES AND COMMENTS Page 5 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Yemen Yemen's relations with the West have become markedly worse during the past week as the re- sult of endeavors by anti-West- ern elements to discredit the United States and Britain. Relations between Yemen and Aden have suddenly deteri- orated, largely because of in- creased subversive activities by antiregime Yemenis whose lead- SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY \SIJLThNATE OF MUSCAT \ ANT; OMAN ana o NAMARAN I', r fu.",, No Al Hndaydah O YEMEN Al Be,dha ~~ (P Qatah R~ v ?` - ?' Adh Dhala r-9 `I TAI ZZ ? .11 'Westere Aden Protectorate ~aheioA \. \ SULT. 4~. ADEN 4\ "~~' COLONY OF ADEN 1 PERIM i. UK, FRENCH `D " :SOMALILAND .ti ere allegedly have been given refuge in the British-controlled Aden Protectorates. On 12 June in Taiz the homes of three gov- ernment officials--including one of the Imam's fathers-in- law who is head of internal se- curity--were bombed. These bombings followed others in sev- eral parts of Yemen during the past two weeks. Leaders of the Free Yemeni Movement, which aims SECRET NOTES AND COMMENTS Page 6 of 18 caster, Pden Protectorate Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SCARY at abolishing the Imam's rule and which has headquarters in Cairo and Aden, are claiming :.:edit for these incidents. Friendly US-Yemeni relations suffered when anti-Western ele- ments informed the Imam of the existence of a radio transmit- ter belonging to the American Legation in Taiz. The Imam has ordered that the embassy's deputy political officer--in whose home the transmitter was "discovered" --be "thrown out of the country immediately by the police," and that the American charge not be received at the Foreign Ministry. The legation states that Soviet bloc elements are conducting a vigorous campaign to organize and strengthen anti-Western groups which have the Imam's ear. Pro-Western Yemeni offi- cials are alarmed at the Imam's sudden vehement anti-American attitude. The increased Free Yemeni activities appear to be related to the general malaise in the country and to the recently crushed but long-drawn-out re- bellion by the Khawlan tribe east of Sana. The Imam's despotic methods and the state's precarious financial situation are promoting an increased de- termination among the populace to seek almost any alternative to the Imam's rule. Pro-Western Yemeni offi- cials fear that the Free Yemeni activities, combined with the efforts of Yemeni anti-Western elements, will jeopardize the IjS aid program in Yemen unless American assistance is stepped up to combat the increased op- position to the West The new Moroccan Govern- ment, over which King Mohamed V presides as premier, is moving to resolve a number of problems with which its predecessor was too powerless to cope. The crown prince, as deputy premier, has assumed direction of routine government activities efficiently and with more tact than has been SECRET Page 7 of 18 25X1 25X1 25X1 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET his custom. Underlying antip- athy toward the prince and frictions between the diverse personalities within the govern- ment seem certain, however, to create early difficulties. by declaring that Morocco admits the right of self-determination for Mauritania and has no in- terest in administering this self-governing French Community state. The government immediately undertook an apparently sweep- ing reorganization of the Minis- try of the Interior, reportedly providing for police subordina- tion to this ministry. It was an attempt by the leftist Ibra- him government to shift control of the police from the palace to this ministry that was an immediate cause for the King's dismissal of Ibrahim on 20 May. The King also has released leftist leaders who allegedly had plotted to assassinate the crown prince. The Ministry of Foreign Affairs has opened discussions regarding evacuation of troops with France and Spain. France, long anticipating the fall of the Ibrahim government and more amicable arrangements by a con- servative successor, had been marking time and urging Spain not to accede to Moroccan de- mands for a commitment of even- tual total evacuation such as the United States made last December. In a press interview di- rected more at metropolitan France than at Morocco, the crown prince for the first time took a firm stand toward the French but also made statements intended to reassure and mollify them. He announced that his attitude toward problems with France is no longer "flexible," implying that he will press for the early total evacuation of French forces in Morocco and a favorable settlement of the question of French properties. He departed significantly, how- ever, from Morocco's stipulated policy toward Mauritania, which both the King and the political parties claim as part of Morocco, The prince now realize that the fat monarchy is directly with the success of seems to e of the involved the King's assumption of direct responsi- bility. 25X6 25X6 He lays considerable stress on the military aspects of his government; the appoint- ment of an army captain to ad- minister the remote province of Tarfaya lends credibility to rumors that military offi- cers will replace many civilian governors. SECRET PART II NOTES AND COMMENTS Page 8 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 The Chinese Communists fired approximately 175,000 rounds of high-explosive shells onto the Nationalist-held Chin- men Islands on 17 and 19 June during President Eisenhower's visit to Taiwan. The shelling AMOY - CHINMEN AREA and undertake a military display in order to underscore their complaints against US "provoca- tions." In widely broadcast prop- aganda, Peiping implied that --85,000 rounds in 85 minutes on 17 June and 88,000 rounds on 19 June--was considerably more intense than any during the 1958 crisis. Actual damage to defensive positions on Chinmen and adjacent islands was light. Peiping announced the firing beforehand, carefully characterized it as an anti-US "demonstration," and adhered to its alternate-day firing schedule, probably to avoid a direct challenge to American military units in the area. By this heavy firing, Pei- ping risked some damage to its carefully cultivated pose of reasonableness in dealing with neighboring Asian countries. The Chinese leaders apparently decided, however, to take ad- vantage of world attention fo- cused on the President's visit the bombardment was defensive in nature, sparked by the in- creased number of US "provoca- tions" and attempts to promote the status quo or a "two Chinas" solution. Since the U-2 incident, Peiping has intensified charges of US "provocations" in the strait and has coupled this with a stepped-up series of "serious warnings" over alleged "intru- sions" by US naval and air units into Chinese-claimed coastal waters. There have been 17 warn- ings in the last 30 days. The Communists avoided as- serting that the artillery fire was intended as punishment for hostile Nationalist actions, and they promoted their long-used line that the US is likely to desert the people of Taiwan. In a broadcast on 18 June, Ho Hsiang- ning, vice chairman of the Com- munist-led Kuomintang Revolutionary SECRET Page 9 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET Committee, warned that "lackeys" who placed themselves at the disposal of the United States would eventually become either sacrifices or scapegoats when Peiping "liberates" Taiwan. Despite professed concern for "compatriots" on the Chin- mens, the Chinese Communists probably intended the bombard- ment as a demonstration to Na- tionalist officers and men that the Communists retain the initia- tive in the Taiwan Strait area. Chiang Ching-kuo, Nationalist China's security chief and son of President Chiang, told Ameri- can officials that the retalia- tory firing from Chinmen of With the assumption by Prince Sihanouk of the position of chief of state on 20 June, at least a temporary easing of the political turbulence that has characterized the Cambodian scene for the past two months seems likely. Sihanouk has side-stepped the thorny succes- sion issud posed by the death in April of his father, King Suramarit, and now is expected to leave shortly for a holiday of several weeks in France. Sihanouk and the rest of ,.~e royal family disagreed on a successor to the late King, and a hasty amendment of the' constitution permitting the creation of a three-man regency did notresolve the issue. Si- hanouk did not want to resume the throne, which he had abdicated in 1955 in favor of his father in order to play a more active political role, nor,,apparently, could he accept the elevation of anyone else to this paramount though largely symbolic role. He spoke out against the suc- cession of his mother, Queen Kossamak, who reportedly was angling for the throne with the support of her brother, Prince Monireth, head of the re- gency council and a potential rival of Sihanouk. Sihanouk's testiness over this issue was aggravated by tension with South Vietnam SECRET about 5,000 rounds on 19 June was designed to sustain the morale of the troops. Strait drisis. of urgency or immediacy, and there is no indication that the Communists are preparing the populace for a new Taiwan Having served notice with the shelling that it will not compromise in its long-range de- termination to take Taiwan, Peiping announced plans for a week of films and meetings from 21 to 27 June devoted in large part to the theme "the resolute liberation of Taiwan"; however, there is thus far no suggestion Page 10 of 18 - Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 resulting from Saigon's insist- ent claims to several offshore islands. His umbrage at what he regarded as a tightening en- circlement of Cambodia by "im- perialist" South Vietnam, Thai- land, and Laos spilled over to severe criticism of the United States for its "lack of under- standing." Chou En-lai's visit in early May gave Sihanouk the occasion to threaten to accept Chinese Communist military aid for Cambodia's defense. To dramatize his solid public support, Sihanouk ar- ranged a referendum on 5 June in which he received 99.98 per- cent of the nearly two million votes cast. The referendum was followed by "spontaneous" demon- strations calling for his ele- vation to chief of state. Si- hanouk withdrew his protege from the three-man regency council, thus undermining Monireth's position and leading to the re- gency's resignation on 12 June. The Cambodian parliament there- after amended the constitution to provide for entrustment of the powers and prerogatives of chief of state to an "uncontest- ed personality expressly desig- nated by national suffrage" when the normal process for designating a royal successor fails. As chief of state, Sihanouk will function as king in all but name. Despite rumors that he intends to abolish the monarchy ih favor of a republic, it is un- likely at this time that Sihanouk will remove this pillar of national unity. He may remain chief of state indefinitely, or he may turn the throne over to one of his sons. Caretaker Premier Pho Proeung will probably continue to run the government while Si- hanouk is abroad. Cambodia's future orienta- tion between East and West will continue to depend largely on Sihanouk's estimate of the threat from South Vietnam and Thailand. Although Sihanouk is assured of strong public support, he may eventually en- counter opposition in high circles as a result of his pres- ent maneuvers. CROP PROSPECTS IN THE SINO-SOVIET BLOC Expanded spring planting and ample late rainfall in most of the important grain-produc- ing areas of the Sino-Soviet bloc have altered earlier pros- pects of a poor crop. Prolonged bad weather could still change the situation again, but pros- spects as of mid-June are that the USSR and Communist China may reap a grain crop larger than last :year's. Most of the Euro- pean satellites can still expect grain crops somewhat smaller than last year's, and at least Poland, East Germany, and Czechoslovakia will have to step up imports if they are to avoid shortages and attendant worker dissatisfac-' tion. Despite a late spring which delayed sowing in.the USSR, the area planted to spring crops by collective and state farms in- creased from 310,000,000 acres last year to 343,000,000 acres this year. Almost two thirds of this increase, however, was in reseeding of areas in which winter crops had been damaged by winter kill and dust storms, Winter-crop losses could be offset by the increased area sown to spring crops. Late planting over much of the New Lands area, where most of the USSR's spring grains are grown, increases the hazard of crop losses if there is early snow in the fall. With normal SECRET NOTES AND COMMENTS Page 11 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET weather for the rest of the growing season, total grain out- put in the USSR will probably exceed last year's estimated 100,000,000 tons. The cotton crop is likely to be smaller than in 1959, however. In Poland and East Germany, a below-average grain harvest is indicated. Official Polish sources are estimating a drop of 1,500,000 to 2,000,000 tons in total grain output compared with 1959 as a result of ad- verse weather and a decline in winter-crop acreage. Production of spring-planted crops in Po- land is expected to be above average as a result of expanded acreage and increased use of fertilizer. The winter-grain crop in East Germany may reach the 1954-58 production average, but the recent collectivization drive has sapped peasant in- centives and led to a drop in acreage sown to spring crops. A dry fall and winter in Czechoslovakia and Hungary will probably cause winter-grain pro- duction to dip below last year's high level. Rain and cool weath- er during May have retarded the development of spring crops, but if normal weather prevails from now on, above-average yields may be expected. Reports from Bulgaria speak of a "rich" winter-grain harvest; Rumania also expects an above-average output of winter grain. Pros- pects for spring-planted crops in both countries are good. Peasant apathy and a late plant- ing season are expected to re- duce Albanian production below the 1954-58 average. In Communist China, strong emphasis has been laid on ex- panding grain acreage after last year's reduction in sown area. Although spring planting has not yet been completed, the total area sown to grains this year will probably be some 10 to 15 percent over last,year, thus equaling: or exceeding the more normal acreage level of 1958. Major winter-wheat areas gener- ally had below-normal precipitation during the past winter and spring, but, because of the expanded acreage, the winter-wheat crop may exceed that of last year. The Chinese Communists, usually quick to publicize any successes, have not yet made a claim to this effect. The dry weather apparently continues on the important North China plain. In mid-June the Chinese Communists stated that the flow of the Yellow and other rivers in the area had been re- duced by two thirds compared with previous years at this sea- son., and that "in many areas half the medium and small res- ervoirs have dried up." A ty- phoon in Kwangtung and Fukien damaged the rice crop there, but this will have little effect on national totals. No estimate can be made as yet for spring-planted crops in China, but expanded acreage may raise total grain production this year above the 190,000,000 tons estimated by observers to have been produced last year. Never- theless, there is no indication that the regime intends to ease the present severe controls on grain consumption. The early rice crop in North Vietnam, described by Hanoi as a "failure," was certainly well below last year's early crop. The authorities are mak- ing every effort to expand the acreage of the late-rice crop and to raise yields in the hope of overcoming early-crop de- ficiencies. In North Korea there is some prospect that the crop this year will be better than last a is disappointing harvests. (Pre- pared by ORR) SECRET Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET ECONOMIC COUNCIL ESTABLISHED IN RUSSIAN REPUBLIC An All-Russian Economic Council has been set up under the Council of Ministers of the Russian Republic (RSFSR) to~over- see the work of the republic's 70 councils of national economy (sovnarkhozy). According to a decree of 18 June, the new count cil will monitor the fulfillment of economic plans and enforce measures to counteract any tend- ency for the various sovnarkhozy to place local interests above USSR-wide priorities. Vasily Ryabikov, an RSFSR deputy pre- mier, has been appointed chair- man of the new council. The council fills a need long recognized in the Soviet press. Earlier suggestions in- cluded a proposal to establish on a regional basis within the RSFSR as many as eight similar councils with supervisory power over groups of sovnarkhozy. The new council is empowered to is- sue orders in its own right. The new council thus constitutes a delegation of authority in order to overcome some of the operational problems of coordi- nation and control coincident with having 70 disparate and semiautonomous economic authori- ties answerable Separately - to the RSFSR.Council of Ministers. The Russian Republic's ac- tion could foreshadow similar moves in other republics or at the USSR level. Coordination problems are far less complex in the other republics and at the national level than in the RSFSR, however. The new council, which bears some resemblance to the Supreme Council of National Economy orig- inally established in 1917, will probably assume some of the co- ordination functions now falling to the RSFSR State Planning Com- mittee (RSFSR Gosplan), particu- larly the duties of those subdi- visions overseeing the work of blocs of sovnarkhozy such as the Department of Far Eastern Sovnar- khozy. (Prepared by ORR) Khrushchev's visit to Aus- tria from 30 June to 8 July will be purely ceremonial, and he will engage in no substantive negotia- tions, according to Soviet of- ficials in Vienna. The Soviet premier will certainly attempt to use the trip to stress such themes as the benefits of Aus- trian neutrality and the further potentialities of Austrian-Soviet cooperation. Khrushchev can also be ex- pected to reiterate his intention to continue a policy of peace- ful coexistence, and point to Austrian-Soviet relations as an outstanding example. He is like- ly to seek Austrian support for Soviet foreign policy positions, particularly on disarmament and nuclear testing, and stress the alleged threat to Austria posed by NATO bases in West Germany and Italy. Soviet officials in Vienna have shown anxiety that recent international events will mean SECRET PART II NOTES AND COMMENTS Page 13 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET ( * Moscow 30 JIne inz L f a cool reception for Khrushchev. Although embarrassed by the timing of the visit, Austrian authorities plan a cordial reception, but will keep him in the provinces for more than half his visit in order to minimize his opportunities to make propaganda. With the support of Chancel- lor Raab, the Austro-Soviet Society--which prominent Austrians had to join during the occupa- tion--has obtained Vienna's huge civic auditorium for a speech by Khrushchev. The Ministry of Interior has evinced some concern for Khrushchev's safety because of the large Eastern European pop- ulation in Austria. No incidents occurred during Mikoyan's 1957 visit, however, and, according to press reports, especially dangerous refugees have been temporarily "isolated." Despite the strongly anti- Communist outlook of nearly all Austrians, Soviet leaders in previous meetings have had some success in eliciting from of- ficials statements which have proved useful to Moscow's prop- aganda. Chancellor Raab, who has long prided himself on his alleged ability to "get along with the Russians," is an es- pecially easy target in this respect. Foreign Minister Kreisky is reportedly worried about the chancellor's insist- ence on accompanying Khrushchev on his tour. Austrian leaders hope that any substantive discussions will concentrate on economic issues; they seek, for example, a further reduction of oil reparations SECRET PART II NOTES AND COMMENTS Page 14 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 SECRET deliveries. Should Khrushchev continue the USSR's pressure on Austria to grant the USSR, in accordance with the 1955 Austro-Soviet trade agreement, the same trade benefits Vienna will grant its free trade area partners, Austrian officials have indicated they will re- assert the position that the free trade area is excluded from the 1955 agreement. SECRET PART II NOTES AND COMMENTS Page 15 of 18 25X1 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY BRITISH POLICY IN WESTERN EUROPE Britain is renewing its attempts to improve relations with Western Europe, especially France, on a bilateral basis. At the same time, the Macmillan government is holding to the long-term goal of reducing trade barriers between the six- nation European Economic Com- munity and the British-insti- gated, seven-nation European Free Trade Association. The summit breakdown and the failure in early June of Britain's compaign to ease the differences between the two trading groups influenced Lon- don to revert to its traditional bilateral approach. The visits this month of Prime Minister Macmillan to Oslo and of For- eign Secretary Lloyd to Vienna are part of this pattern. The Conservative government has chosen a moment of unusual domestic political strength to invite Spanish Foreign Minister Castiella for an official visit to Britain from 11 to 16 July. This--the first such visit since Franco came to power in Spain-- follows a gradual improvement in Anglo-Spanish relations in the past year or two and the recent removal by Madrid of most restrictions on Gibraltar. Although the British charge in Madrid has stated that Britain would no longer oppose Spanish membership in NATO, the Macmil- lan government does not appear ready to go so far as to advo- cate it, partly in deference to the Labor party's hostility to the Franco regime. Macmillan is making no moves at this time to improve Anglo-German relations, but is continuing his cultivation of French President de Gaulle as the key to Britain's broad European economic objectives and to any further high-level East- West negotiations. On disarma- ment, British officials have re- peatedly urged adjustment in the Western position as a ges- ture to De Gaulle's insistence on control of nuclear weapons delivery systems--even while London sees curtailment of French nuclear weapons develop- ment as one of the major advan- tages of any East-West agreement. In mid-June, British officials held bilateral working-level consultations with France on Africa, a subject on which there have been substantial differences in the past. Meanwhile, London continues to probe the European integra- tionists' attitudes with "pro- European" statements such as one recently indicating willingness to consider any proposal from the 25X1 Coal-Steel Community and Euratom for British membership. WEST INDIES FEDERATION DEVELOPMENTS British Colonial Secretary Macleod appears to have made substantial progress in resolv- ing political deadlocks in the West Indies Federation during his 3-18 June visit. He ob- tained Trinidad Premier Eric Williams' acceptance of the British formula for Trinidad's participation in the US-UK-Fed- eration conference to be held later this year regarding the revision of the 1941 American- British bases agreement. London's formula, which the Federation Government apparently has also accepted, provides that at the second--and most substan- tive--of three. sessions, the United States and the unit territories would hold bilateral talks attended by observers from both the UK and the Federation SECRET PART II NOTES AND COMMENTS Page 16 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Government. By not granting Williams' demand for separate participation for Trinidad, London has maintained the pri- macy of the Federation in ex- ternal affairs. On the other hand, London has in effect acknowledged that Williams' support is necessary, inasmuch as the conference will concern primarily the US naval base and missile-tracking sta- tion at Chaguaramas on Trinidad. To help obtain this support, the British agreed to establish a bicameral legislature for Trinidad and increase the num- ber of seats in the elective lower house. This will strengthen Williams' position and further weaken the ineffectual opposi- tion Democratic Labor party (DLP). London's formula on con- ference participation is only procedural, however. According to the American consul general at Port-of-Spain, Macleod did not discuss the terms of a re- vised bases agreement with y~ Williams and hcrc is no indi- ndi cation cation that the Trinidad premier is prepared to temper his vit- riolic campaign for the curtailment of US privileges at Chaguaramas. Recent events appear to have strengthened the Federation against Jamaican secessionist threats. Sir Alexander Busta- mente's resignation as leader of the federal DLP to dramatize his own anti-Federation stand led Jamaican Premier Norman CAICOS ISLANDS TURKS ISLANDS CAYMAN ISLANDS NICARAGUA Y S ' Federation of ? The West Indies 23 JUNE 1960 0 MILES 400 I I 1 I 1 }} u nrTr1 -_ P'J ERTO RICO VIRGIN Anguilla Barbuda `'-"~ ~I~ANDS St. Christopher---?. _ Antigua and Nevis--' _ ~Guadetoupe Montserrat ~%-', %Dominica Cl~ Martinique ? St. Lucia St. Vincento Grenada Barbados SECRET JAMAICA NOTES AND COMMENTS Page 17 of 18 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Manley to promise a referendum in Jamaica on the revised fed- eral constitution that emerges from extended negotiations still going.on.. By, thus point- ing up Jamaican objections to increased federal taxing and financial powers, these develop- ments may persuade Trinidad and other Federation members to of- fer inducements to keep Jamaica, the strongest single component, in the grouping. The West Indians hope to resolve their constitutional difficulties be- fore entering the base negotia- tions. Brazil plans to launch a dip- lomatic offensive in Africa with- in the next few months to further its campaign for greater interna- tional influence. The govern- ment will publicize its effort as a movement independent of the colonial powers, but it plans to seek advice in European capitals and in Washington. Brazil's already consider- able interest in Africa was heightened in May by hints that .ashington would welcome a counterweight to Cuba's influence in leftist Guinea. Subsequent- ly, a high Brazilian official who had visited Africa in May told American officials he be- lieves Brazil can be particularly effective in offsetting the in- fluence of Communist China. He said he found African leaders impressed with China's "miracu- lous" economic achievement but also susceptible to the idea that Brazil is a better model because it has made great strides economically without the "polit- ical and human sacrifices" exacted by the Chinese. The Foreign Ministry be- lieves Brazil's tradition of racial equality and democracy will enhance its influence among the new nations. The government probably also counts on gaining good will in Africa r,,om its sponsorship of motions the United Nations and the Organization of American States condemning racial discrimination, and, by inference, the Union of South Africa, Brazil's only dip- lomatic relations with the new- ly independent nations are with Ghana. In describing the African project, Brazilian officials in- dicated they believe Washington had accepted their thesis, put forth during President Eisen- hower's visit in February, that Latin America can and should be the West's "bridge to Africa." In this connection, the govern- ment will almost certainly continue to press Washington for greatly expanded economic aid under Pres- ident Kubitschek's "Operation Pan America," arguing that Latin America should be a showcase for the capitalist system in its dealings with Africa. The International Bank's recent loan to Kenya for ex- panded coffee production--which caused an outburst of anti- American headlines in Brazil in early June--will probably in- tensify the government's drive for a greater voice in the eco- nomic and political decisions of the West and will reinforce Brazil's interest in winning a position of influence in Africa. An exploratory good-will mission is to begin a tour of Africa within the next few weeks. SECRET Page 18 of 18 - Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY PART III PATTERNS AND PERSPECTIVES EUROPEAN SATELLITES SINCE THE SUMMIT Initial rsactiofi in the European satellites to the col- lapse of the summit included considerable popular apprehen- sion and uncertainty in party ranks. While this has lessened somewhat, Khrushchev, faced with continued controversy with Pei- ping, apparently has felt it necessary to clarify his pol- icies not only in Pravda but also at a bloc-wide meeting in Bucharest. The satellite re- gimes can be expected to give their full support to Khru- shchev's foreign policies. Regime Reactions Some European Communist re- gimes appear to have demonstrat- ed more initial enthusiasm for Khrushchev's summit and post- summit behavior than they did for his emphasis on detente last fall. Almost all satel- lite regimes were to some ex- tent apprehensive about summitry and an East-West rapprochement and viewed with some relief the collapse at Paris as a return to traditional forms of the Communist-capitalist struggle. Although Satellite commentary in the immediate post-summit days was cautious, reflecting a lack of Soviet guidance, satellite propaganda drums beat a loud tattoo in support of Khrushchev and his personal policies as soon as the accepted line became clearer through speeches by Soviet leaders. Official statements have followed the Soviet lead, Seek- ing to emphasize the continuity of the bloc policy of detente and coexistence while castigat- ing the United States for the ;summit collapse. Several satel- ites quickly picked up the 2ravda articles of 12 June, -.vhich supported the principles of "negotiation" and implicitly criticized the Chinese Commu- nists for "left-wing sectari- anism." No satellite has re- peated any of the persistent Chinese dissents to Khrushchev's foreign policies. The U-2 incident, treated as the greatest threat to the bloc since the Hungarian upris- ing, served to unite European Communist leaders--both Stalin- ist and centrist--behind Khru- shchev's actions. Nevertheless, the precipitous manner in which the talks collapsed and the ap- parent change in policy caused confusion and some consternation in party ranks. In East Germany this sentiment was compounded by Khrushchev's speech on 20 May in Berlin which again postponed the signing of a separate peace treaty. East German officials were openly disappointed--some party members accused Khrushchev of "selling out"--and many func- tionaries have been hard put to explain Khrushchev's position to party members. This confu- sion in the ranks has increased disciplinary and control prob- lems in the East German party apparatus. Party functionaries in other satellites were similarly hard pressed to explain recent devel- opments. The Czech party ap- pears delighted, however, with the increased emphasis on vigi- lance. It has had less diffi- culty in explaining changes, be- cause it had never fully accepted the virtues of detente and, un- til Novotny's trip to Moscow in early May, had hinted at some reluctance and concern over Khru- shchev's policy. In terms of internal satel- lite politics, the increased em- phasis on vigilance and security has presumably met with the par- ticular approval of hard-line SECRET PA !"T III PATT2INS AND PERSPECTIVES Page 1 of 11 - Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELL ENGE,WEEKLY SUMMARY 23 June 1960 NOVOTNY CZECHOSLOVAKIA elements and should tent. to in- k i'Y it libera] i in forces , The' "vindi.Erati '-surn- pr , m ;t ;p licies', forded by the events In Paris, however, ,is unlikely to ,give them real po- litical advantages, unless Khru- shchev's policies are reversed or his leadership seriously threatened. In the main, however, no change in domestic policies is likely because of the summit breakup. The over-all drive to "achieve socialism," under way since the.Soviet 21st party, congress, has,had the practical effect of,generally tightening internal controls and discipline, speeding 'industrial development, and encouraging greater efforts at economic integration of the Soviet bloc. Popular Reactions The suddenness-of the sum snit collapse and the saber- rattling manner in which the USSR condemned the West gener- ated a wave of surprise, disap- pointment, and concern--in some cases bordering on fear--through- out Eastern Europe. While few of the general public had be- lieved that the Paris talks would lead to tangible improve- ments in their personal situa- tion, many had harbored a hope that something might happen to case the tension and relieve 'he tedium of their everyday lives. The fear that there. would be an immediate return to -a modified form of Stalin- ist terror has not been sub- stantiated, but on the whole -people look to the future with greater apprehension than be- fore the summit. In East Germany, where the people fear bloc actions to limit their access to West Ger- many and West Berlin, the imme- diate reaction was one of shock, fright, and criticism of Khru- shchev for wrecking the meeting, although his 20 May speech amel- iorated some of the East-German people's apprehension. In Poland, considerable popular uneasiness remains over the possibility that a stiffen- ing of Soviet policy will be reflected locally in a tighten- ing of the Gomulka regime's policies. In the days imme- diately after the summit, some panic buying occurred in Warsaw and Budapest, and the American Embassy in Warsaw reported that there were bank withdrawals of gold and dollar currency. Re- ports from several satellites indicated that the people were afraid that contacts with the West would be sharply curtailed. In an effort to garner pop- ular support and underline the strong backing for Khrushchev and his policies, "mass demon- strations" were staged in most SECRET PART III PATTERNS AND PERSPECTIVES Page 2 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLZGgNCE WEEKLY SUMMARY 23 June 1960 satellite capitals. The regimes, sought to allay popular fears by reiterating that the summit collapse.does not mean a return to the cold war, and that nego- tiations will continue. Soviet-Satellite Relations Since the summit, the sat- ellite leaders have been judi- cious in their overt treatment of foreign policy issues and have carefully ascertained Mos- cow's position and supported this line. Nevertheless, lack of firm guidance could serve to stimulate factional activity by those elements in Eastern Europe which had registered pre-summit opposition to Khrushchev's pol- icies. In an effort to prevent this, Khrushchev has sought to clarify his policies in his post-summit speeches and, most recently and unambiguously, in articles published in Pravda on 12 and 13 June. These articles have, in turn, formed the background for Khrushchev's Bucharest meeting with European satellite party leaders and Asian Communist par- ty representatives during the Rumanian party congress. These bloc discussions will give Khru- shchev a chance to lay down general guidelines for future developments, to establish prop- aganda positions to be adopted GHEORGHIU-DEJ RUMANIA SECRET I A`3T I I I PATTERNS AND PERSPECTIVES Page 3 of 11 by the satellites, and to issue a strong call for full bloc sup- port for an agreed position. A clear-cut "directive" from Ithru- shchev would tend to erase sat- ellite reservations and, while differences over policy and ap- proach will continue, divergent views would perforce be sub- merged. The European satellites now have clearly identified them- selves with Soviet rather than with Chinese policy. Eastern European statements echoing the Chinese Communist line have vir- tually ceased. In East Germany, the leading party daily, Neues Deutschland, on 17 June pub- lished the regime's official re- jection of the Chinese commune experiment as an example for other countries--a notable de- parture from the lavish praise which characterized East German commentary on this subject in 1959. The East German, Polish,, Bulgarian, and Hungarian regimes have re- printed Pravda's implicit at- tacks on Chinese "leftist sec- tarianism." Relations With US While satellite propaganda has been increasingly anti- Western and militant, all sat- ellites have continued to make friendly and courteous contacts with American diplomats. The Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 cordial Czech behavior at a dip- lomatic reception on 4 June--! a vivid contrast to the tradi- tionally cold attitude of Czech officialdom toward Americans-- presumably demonstrated Soviet interest in avoiding an increase in international tension. Rumanian officials told American representatives on 5 June that there was no change in their official attitude to- ward slightly expanded cultural relations with the United States, adding that steps would be taken in the near future to ensure that at least part of the ex- change program--under negotia- tion before the summit--could get under way "immediately." Similar pledges of continued or increased cultural contacts have been made by other Eastern European governments. At least three of them--Bulgaria, Poland, and Rumania--have sought to en- sure that present plans for com- pleting much-needed foreign trade arrangements with the West would not be upset by recent interna- tional developments. SOVIET MANPOWER 1960-1970 The Soviet Union's two principal manpower problems over the next decade concern the continuing burden of a farm labor force of more than 50,000,- 000 people, and the small number of persons reaching working age an- nually in the next few years as a consequence of the low birth rate in the years during and im- mediately after World War II. Moscow has already taken steps to cope with these problems, however, and should be able to fulfill manpower goals of the Seven-Year Plan (1959-65.) Population Trends World War II had a rata, strophic effect on population trends of the USSR. (Chart I.) In addition to the enormous military and civilian losses, birth rates fell to less than The reduced birth rates are being offset by cutbacks in the armed forces and by control- ling school enrollments, and the regime also expects to exploit more intensively the labor po- tential of women. In rural areas, industrial and construc- tion programs have been initiat- ed to tap the reservoir of agri- cultural underemployment. SECRET PART III PATTERNS AND PERSPECTIVES Page 4 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 half their prewar level. The 1940 population level was not regained until 1954. With the low wartime birth rate reflected in fewer young families in the 1960s, the current rate of growth of the population will temporarily decline. For the decade as a whole, the popula- tion will increase at an aver- age annual rate of 1.5. percent-- a little more slowly than dur- ing the 1950s. Labor Supply The civilian labor force will increase by about 17,009,- 000 during the decade; only 1,000,000 more than the in- crease during the 1950s. (Chart II-) Growth will be slow- er in the first half of the decade than in the second be- cause of the low birth rates during the war and the early postwar period. The total num- ber of persons reaching the normal working age of 15 in 1970, however, will be more than double that in 1960. SECRET A4 X05' -i 2d- ONE 1960 The rapid decline in the number of 15-year-olds during the 1950s, particularly in the latter half of the decade (Chart III), would have resulted in an even slower growth in the labor force than actually occurred if the regime had not taken steps to increase the labor supply. (Chart IV.) Between 1955 and 1060 the armed forces decreased by about 2,000,000, and Moscow has announced plans to cut an additional 1,200,000 during 1960- 61--years when the additions to the population of working age will be the lowest. (Chart V.) In addition, the USSR is tightening the controls over school enrollment to provide a more effective means of manip- ulating it in accordance with the need for labor. State au- thorities will decide whether graduates from the eighth grade are to go to work, to high school, or to a trade school. Those who go directly to work will be encouraged to attend evening classes. In recent years there has been a decrease in day school SECRET PART III PATTERNS AND PERSPECTIVES Page 5 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 '50 '60 '70'50 '60 '70 '50 '60 '70 AGRICULTURE INDUSTRY and SERVICES CONSTRUCTION CIVILIAN LABOR FORCE, BY MAJOR ECONOMIC SECTOR, 1439.78 enrollment resulting both from a decline in the number of per- sons of high school age and from a reduction in the pro- portion enrolled. By such steps the regime has been able to keep its civilian labor force growing at a fairly even pace. Agricultural Labor More than 50,000,000 peo- ple in the USSR--nearly half of the total labor force--are en- gaged in agriculture. (Chart VI.) This compares with only a little more than one fourth of the labor force employed in in- dustry and construction, and somewhat less than one fourth employed in services such as trade, education, transporta tion, health, and public ad- ministration. While agricultural employ- ment is expected to resume its downward trend during the 1960s-- after a temporary interruption during the mid-1950s, when Khru- shchev's agricultural program added several million people to the farms--farmers will still make up 40 percent of the civil- ian labor force in 1970. At the same time, rural population will still constitute 43 per- cent of the total. (Chart VII.) Soviet agriculture prob- ably will achieve sizable gains in productivity during the 1960s, thus releasing labor for other purposes, but the integration of surplus unskilled farm labor into the urban labor force will present difficult problems. By promoting industrial and con- struction activities in rural areas, the regime is attempting to employ surplus agricultural workers near the farms, thus keeping rural-to-urban migra- tion to a minimum and avoiding the necessity for providing more housing and public util- ities in the overcrowded cities. Women in Labor Force Women constitute an impor- tant source-of labor both for present and future requirements. Women far outnumber men in the population and in the key work- ing areas as a consequence of the disproportionate losses of men during World War II and the collectivization drive of the 1930s. Nearly two thirds of the women 14 years of age and over work, constituting more than half of the civilian labor force. (Chart VIII, ) Women probably will continue to participate at SECRET 1954 19 197`0 PA:.T III PATTERNS AND PERSPECTIVES Page 6 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 in high schools and on evening enrollment in both high schools and colleges. The seven-year elementary schools are to be- come eight-year schools, and attendance will be compulsory. During the 1960s, 3,500,000 to 4,000,000 people will graduate from college. The tecbr&cum is a spettienzed Secondary School that trains nurses, dentists. elementary sekwW teachers. and vari us Kinds of technic{en.. Graduates have completed k to3 years of aehouing beyond the high school tevet. EDUCATIONAL ATTAINMENT OF TUE !O?ULATION (AeE 13 AND OX#w 1959 4 Wjo i 23 JUNE 1960 this high rate during the 1960s9 Soviet leaders hope that even- tually nearly all women will be employed outside the home. Plans call for more kindergartens, nurseries, boarding schools, and public dining facilities to make this possible. Educational Level A fundamental difficulty wn effectively utilizing labor resources--both urban and rural-- is the low level of education in the USSR. In 1959, only 2.6 percent of the population 15 years old and over had graduated from college; 60.5 percent had not completed the seven-year elementary school. (Chart IX,) Nevertheless, considerable ed- ucational progress was achieved during the past decade, and even greater progress probably will be made during the 1960s. The school system is being reorganized to place more em- phasis on vocational education Prospects The continued rise in the level of education and skill of the Soviet labor force, along with progress in technology, should permit productivity to continue its rapid increase. Labor will be in somewhat short- er supply until 1963 or 1964, but the steps already taken by the regime should assure suffi- cient labor to meet plans for the state labor force. Likewise, the regime would probably not hesitate to cut back on educational goals tem- porarily, or to postpone the current reduction in the work- week, should these be deemed necessary. Women will be en- couraged to join the work force, and the regime will continue to encourage schemes to raise agri- cultural productivity in order to release a part of the large amount of manpower now tied up on the farms. After 1965 the 25X1 labor problems created by World War I will be considerably eased. Pre- pared by ORR) EROSION OF ITALIAN DEMOCRACY The recent cabinet crisis in Italy, the most severe in the republic's history, has re- vived memories of the near- anarchy which preceded the aban- donment of parliamentary democ- racy in the 1920s. The decreas- ing viability of a center coali- tion has intensified pressure on the ruling Christian Democrats to make a clear-cut choice of allies from the right or left, and there has been talk of right- ist efforts to seize power by force. Ambitious Premier Tam- broni, whose caretaker mandate runs out on 31 October, might be tempted to take extralegal measures to block replacement of his government by one relying SECRET PAST III PATTERNS AND PERSPECTIVES Page 7 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 .on the Nenni 3acialis.t9' parlia-. mentary support. Shaky' Democratic Base A century of national. unity has not sufficed to'implant the democratic process in Italy, and .the 14-year-old Italian Republic has never held the choice.of an- other democratic alternative to the party, in power. In the years when they were nationally allied, the Communists and the Nenni Socialists in effect re- duced the size of the Chamber of Deputies as a democratic body by over a third, without counting the further reduction effected by the parties of the far right, the neo-Fascists and the Mon- archists. Even today, 'When the Nenni Socialists and Monarchists have acquired at least quasi- respectability, the Communists and the neo-Fascists hold over a quarter of the parliamentary seats. The Christian Democrats had a parliamentary majority from 1948 to 1953, but have since been dependent on the small center partiesfor sup- port in governing. A;center coalition has become progressive- ly more difficult to maintain because of growing ideological dissension among the-various center groups, and Italy's gov- COMMUNITY MOVEMENT I (PSDI) INDEPENDENT LEFT I ent.government's initial , promise t6-confine itself-to caretaker functions and resign-after-six months. In the search for a broader parliamentary base, the faction- ridden Christian Democratic par- ty has been unable to decide be- tween left and.right. Tambroni's reliance,on neo-Fascist parlia- mentary-support for a slim work- ing majority is opposed by left- wing Christian Democrats, who accepted it only as a summer so- lution. Similarly, the party's powerful rightist minority has been able to block formation of a government dependent on Nenni Socialist abstentions. ITALIAN PARLIAMENT S-INDEPENDT. MONARCHISTS -NEO-FASCISTS(MSI) In the Italy of recent months, there- fore, ,anarchy and authoritarianism have again become serious threats, and the ed- itor of a pro - Chris- tian Democratic daily in Naples warned on 10 April that unless the Italian people rouse themselves from their contempt for repre- sentative institutions, there is danger that ernments have become increas- ingly vulnerable to-,the accusa- tion of "immobilismo." The political stalemate is,appro- priately symbolized by the pres- the country may "in the not-too- distant future" find itself in. the grasp of another. totalitarian regime. SECRET PART I I I PATTERNS AND PERSPECTIVES Page 8 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 SECRET C(JRRENT INTELLIGENCE WEEKLY SUMMARY Nonconstitutional Practices One specific danger to Ital- ian democracy in this situation is that, as the cohesion and par- liamentary strength of the amor- phous center has declined, party leaders have tended to seek so- lutions outside parliament. This problem was stressed by Senate President Cesare Merzagora in February, when Premier Segni re- signed rather than rely solely on Monarchist and neo-Fascist votes. Merzagora argued that it was improper for the govern- ment to quit while it had a par- liamentary majority. other felt it had "pinpointed the malaise afflicting Italian life." The neo-Fascist press seized on it as indicating the crisis within the regime, and to push for an authoritarian system. One center-left paper saw Merzagora as the spokesman for "conservative and economic" interests wishing to exploit the situation to establish a regime like that in Portugal. Despite Merzagora's im- passioned indictment, the Christian Democratic party has continued to ignore the spirit of the constitution in carrying out its decisions. Premier Tambroni won a vote of confidence in the lower house on 8 April, but his party disregarded the cham- ber's approval and pre- vailed on a reluctant Tambroni to withdraw rather than depend on the neo-Fascists. The Christian Democratic directorate then called on Amintore Fanfani to form a center-left government, but the party's parliamentary group defied this order and forced Fanfani to retire. Merzagora stressed that only two postwar cabinets had been brought down by nonconfi- dence votes in parliament, and he denounced the "persistent and unhealthy" practice of in- dulging in extraparliamentary crises in which cabinets were brought down as the result of pressures within the Christian Democratic party. Merzagora included in his attack on Italy's multiparty system the charge that the Constitutional Court and President Gronchi, as chief of state, were encroach- ing on the legislative branch. Merzagora's speech was widely commented on in the Italian press. Of the two major independent papers, one considered it ill-advised, the Tambroni was restored to office by the Senate's vote of confidence on 29 April, but no effort was made to comply with the constitutional provision that a premier must be con- firmed within ten days of in- veStiture. Coup Atmosphere fiambroni's has been called a "paratroop government," per- haps in part because the cur- rent situation presents several elements propitious for a quick and violent seizure of power. The ruling party cannot decide on its own orientation; although the electorate has been moving to the left, the government has accepted neo-Fascist support, SECRET PAST III PATTERNS AND PERSPECTIVES Page 9 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927A002800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT. INTELL GENCE :WILY. SUMMARY 23 June 1960 and concern among political and economic right-wingers and some members of the clergy over the possibility of an "opening" to the 1$enni Socialists might be sufficient to encourage a mil- itary move to,prevent it. A police of- ficial has called the present climate the worst he has seen since 1948 when an attempted assassination of Communist leader Togliatti led to nation- wide Communist disturbances. For want of a strong lead- er, the most likely development if the Christian Democrats fail to work put a viable democratic government would seem to be some form of extralegal polit- ical odv9nture by Tambroni when 25X6 U18 mandate expires. Tambroni's personality would lend itself to -such an effort. Former Defense Minister Pacciardi has stated that "a government opening to the left will never be created in Italy." "Little noses, blocke the way to br Riots with anti- 00621 demoeratie overtones occurred at Pisa and Leghorn during March; these involved civil- ians--some Communists--and of-- ficex'-led paratroops singing fascist songs. Disturbances were fomented by neo-Fascists and Monarchists in Home during the 2 June celebration of the republic's 14th anniversary. In early April, before Tam- broni complied with his party's order to resign, rumors were rife that he had met with police leaders and his defense minis- ter--right-wing Christian Dem- ocrat Andreotti--to make plans to ensure his continuation in office. There was talk of a neo-Fascist show of strength in his support, and the Communist- dominated General Labor Con- federation was rumored alerted for a protest strike. d a center left government; and this is gust Democratic Socialist leader Giuseppe Saragat, 30 March 1960. 23 JUNE 1960 Prospects Some of this concern seems to be shared by President Gron- chi, whose attitude toward Tam- broni has been ambivalent. SECRET PART III PATTERNS AND PERSPECTIVES Page 10 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 23 June 1960 Although local elections have been called for this fall, he is probably capable of in- terpreting the results to suit his own plans at that time. He might seek to postpone national elections indefinitely--a pros- pect with some appeal to the Christian Democrats, who expect losses for themselves and gains for the leftist parties in na- tional voting. Strikes or up- risings against Such an assump- tion of power would give Tam- broni an excuse to enlist the aid of the military. If left-wing Christian Democrats make another attempt this fall to form a center-left government based on Socialist abstentions, Tambroni will be tempted to accept the support of the Group for Defense of the Republic, which was recently f o?'n ed to prevent such an "opening." This group, organ- ized on 26 May, includes former fascist activist Pino Romualdi, right-wing Christian Democrat and former Premier Giuseppe Pella, Civic Committees chief Luigi Gedda, Catholic Action president Agostino Maltarella, Paccior-di, and Guglielmo Gian- nini, former leader of the now defunct Common Man party, post- war haven for ex-Fascists. Gedda, who seems to be the leader, has announced: "Today we are united in thought, to- morrow in action." Tambroni's espousal of such an extreme right- ist national front could drive Socialists, Social Democrats, Republicans, and left-wing Chris- tian Democrats into a popular SECRET PAST III PATTERNS AND PERSPECTIVES Page 11 of 11 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0 Approved For Release 2007/10/23: CIA-RDP79-00927AO02800020001-0