CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A002900010001-1
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September 1, 1960
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SUMMARY
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Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY COPY NO. - ./ . OCI NO. 4338/60 1 September 1960 State Dept. review completed DIA review(s) completed. CENTRAL INTELLIGENCE AGENCY I I I OFFICE OF CURRENT INTELLIGENCE CONFIDENTIAL DOCUMENT NO. , NO CHANGE IN CLASS. 13 C7 DECLASSIFIED CLASS. CHANGED TO: TS f : HR 7 DATE: AufH: AU HR 70-2 01 DATE: - REVIEW 13 MAY 1980 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 T H E W E E K I N B R I E F OF IMMEDIATE INTEREST BERLIN SITUATION . . . . . . . . . . . . . . o , . . . . . Page 1 The East German Government's declaration of 30 August and the Interior Ministry's decree limiting travel by West Germans to East Berlin apparently were designed to emphasize the sovereignty of the Ulbricht regime and its right to impose sudden and arbitrary controls over civilian travel to and within the city. The East Germans seized on the planned meetings of two West German expellee groups in West Berlin as a pretext to assert their authority in an area'where the Western position on Berlin is weakest--access to the city by West Germans. West Berliners still move freely into all parts of the city, but controls have been tightened on travel by West Germans to West Berlin, East German police, in addition have prevented West Germans from going into East Berlin. Soviet propaganda has stressed the increasing use of Berlin by the West for pro- vocative activities and welcomed the timeliness of the East German warnings. Moscow has also emphasized that West Berlin is a "permanent source of tension" and that Bonn has no rights in the city. SINO-SOVIET RELATIONS. . . . . . . . . . . . . . . . . . . Page 4 There is increasing evidence of strong Soviet pres- sure on the Chinese party in recent months. In a long letter to the other participants on the eve of the Bucharest meeting of Communist parties last June, the Soviet party sharply criticized Chinese Communist posi- tions on world Communist strategy and tactics, as well as Chinese actions in seeking the support of other parties. Khrushchev may have threatened to reduce or withdraw Soviet aid to China. There have been several authoritative Soviet attacks on Chinese policies in July and August, concurrently with the departure from China of a substantial number of Soviet technicians, and the bloc press for the first time has warned that China would be ruined by separation from the bloc. Khrushchev presumably wishes to avoid a complete break with Peiping, but his actions seem designed to convince the Chinese that he is willing to risk a break if the Chinese do not back down. Peiping is continuing, however, to defend positions of- fensive to the Russians. CONFIDENTIAL THE WEEK IN BRIEF Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 ? CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 PART I (continued) CUBAN DEVELOPMENTS . . . . . . . . . . . . . . . . . . . Page 8 Cuba's walkout from the OAS foreign ministers' meet- ing on 28 August further isolates the Castro regime from other hemisphere nations and emphasizes Cuba's rejection of the inter-American system in favor of greater dependence on the Sino-Soviet bloc. Havana spokesmen reiterate their concept of Cuba as the vanguard of the "anti-imperialist" revolution that will eventually sweep throughout Latin America. Cuban ties with the Sino-Soviet bloc continue to be strengthened, as evidenced by the announcement that diplomatic relations will be established with North Korea--possibly foreshadowing early recognition of Communist China--and by expanded contacts by the press and organized labor with the bloc. DOMINICAN REPUBLIC . . . . . . . . . . . Trujillo apparently is preparing to take over the presidency of the Dominican Republic, having ruled through puppets since 1952. He now is expected to try to liquidate the lead- ers of the moderate opposition, a move which would open the way to eventual control by anti-US elements already favored by recent pro-Communist policies his government has adopted. SITUATION IN THE CONGO . . . . . . . . . . . . . . . . . . Page 11 The threat of civil war is mounting following Premier Lumumba's military action against the secessionist Mining State of Kasai Province, his preparations against Katanga, and Katanga's strengthening of the its defenses. In Leopold- ville, Lumumba's friction with the UN forces has lost him considerable support among African countries; this was re- flected in the final resolution of the African States Conference which called for loyal cooperation with the UN. The influence of the Soviet bloc, however, continues to grow in Congolese Government circles and may be further increased by the arrival of 10 IL-14 aircraft engaged in a foodlift from the USSR. SITUATION IN LAOS . . . . . . . . . . . . Page 10 . Page 14 Souvanna Phouma and General Phoumi have put together a compromise government which appears to have the ac- ceptance of all the major figures in the conflict generat- ed by Captain Kong Le's takeover of Vientiane on 9 August. Kong be raised last-minute objections to the inclusion ii 1Oi 1DE1YT1AL Tii WFFK TN BRIEF Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 CONF1DFNTIA1 CU RRENT INTELLKLY SUMMARY 1 September 1960 PART I (continued) of Phoumi and one of Phoumi?s close associates in the cabinet, but was apparently induced by Souvanna to drop his opposition to the government. Souvanna can be ex- pected to attempt to carry out his pledges of strict neutrality and an accommodation with the Pathet Lao, NOTES AND COMMENTS CHINA'S ECONOMIC DEPENDENCE ON THE USSR . , o , , , , , , Page 1 The departure of substantial numbers of Soviet techni- cians from China this summer raises the question of a pos- sible corollary reduction in trade and Soviet material and technical assistance to China?s industrialization effort. Approximately half of the 291 Soviet aid projects in China, which constitute the core of Peiping?s industriali- zation program, are not yet in operation, and termination of Soviet aid would seriously disrupt Peiping's program, AGRICULTURAL SITUATION IN CHINA. . . . . . . , , , , . Page 4 The food situation in Communist China continues to be tight, with little prospect for improvement in the near future. The tone and emphasis of recent press articles appear to confirm signs that Peiping has decided to give agriculture first consideration in the allocation of man- power, materials, and money, but there is no indication of what specific measures may be undertaken to supplement existing agricultural programs. KHRUSHCHEV?S VISIT TO FINLAND e 4 0 o v e e n o 0 0 0 Page 5 Khrushchev is expected to use his visit to Helsinki from 2 to 4 September to exploit Soviet claims of Scandi- navian involvement in the U-2 incident, and press his campaign against US overseas bases. Soviet initiative in arranging the visit and the absence of any pressing bilateral problems suggest Khrushchev is seeking a propaganda forum outside the bloc to announce his in- tention of attending the UN General Assembly meeting and urging world leaders to follow suite Soviet com- mentary on the visit also suggests that Khrushchev may set the stage for a UN appearance by reaffirming his peaceful coexistence policy and his continuing interest in high-level exchanges, citing Soviet-Finhish relations as an example of the successful application of these -COWID 1 V 1I~kHE WEEK IN BRIEF Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 ? LOIVFIDENTJAJWCUR RENT INTELLIGEN EEKLY SUMMARY 1 September 1960 PART II (continued) SOVIET LEADERSHIP SITUATION . . . . . . . . . . . . . . Page 6 Several important internal political questions have remained unanswered throughout the protracted Moscow vaca- tion season. These questions include the personal of Khrushchev since the May party plenum, ranking of his immediate subordinates, and the possibility that new divisions of responsibilities have been created in the top echelons of both party and government. Khrushchev returned to Moscow on 28 August after a month's leave, his fourth vacation this year. Some clarification of these ir th e problems is likely after all the leaders resume regular activities. MOSCOW'S BOUNDARIES EXPANDED . . . . Page 8 Moscow's boundaries were officially extended on 1S August, withthe result that the city's area has,more than doubled. The expansion, which incorporates five smaller cities and several settlements, raises Moscow's population by about 500,000 to a new total of 5,600,000. The bound- aries:,, encompassing the belt highway being built around Moscow, are the outgrowth of a study now being made on the long-term development of the city. When complete, the study will replace a plan adopted in 1935 which provided. for an ultimate population of 5,000 000 to be distributed over a city area of 154,000 acres. MIDDLE EAST HIGHLIGHTS . The assassination of Jordanian Prime Minister Majalli on 29 August has caused a new crisis in Jordanian-UAR re- lations. King Husayn has charged the UAR with "direct complicity" in the crime. The meeting of Arab League for- eign ministers in Lebanon ended the day before the as- sassination with agreement on very little except policies which the individual member.: states had already been pur- suing. The USSR has concluded agreements for additional i id to both the UAR and Iraq. UAR propaganda a econom c is continuing its friendly treatment of the USSR and its harsh criticism of the United States. cONFIDENT/AL iv Page 10 THE WEEK IN BRIEF Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 CONFIDENTIAL 1 September 1960 PART II (continued) SHAH OF IRAN SEEKS TO AVOID BLAME FOR RIGGED ELECTIONS . . Page 13 The Shah, in an attempt to appease the public and shift the blame from himself for the openly rigged parlia- mentary elections in progress since early August, has forced the resignation of Premier Eqbal and called on the newly elected Majlis representatives to resign. The maneuver may appear to the public as forced on the Shah by the protests of his many domestic enemies, and prob- ably will not significantly strengthen his regime. GREEK COMMUNISTS SEEK COMMON FRONT WITH OTHER OPPOSITION PARTIES . . . . . . . . . . . . . . . . . . . . . . Page 14 Repeated efforts have been made without success during the past few weeks to unify the Greek non-Communist op- position parties. The Communist-front United Democratic Left (EDA), the major opposition party in parliament, hopes to profit from the feeling that some form of opposition unity is needed, and has proposed that the nationalist opposition parties join with it in coordinating their activities on certain basic issues. Although EDA's ini- tial overtures have been rejected, some non-Communist opposition leaders may consent to common action with the Communists.' ALGERIA . . The Algerian rebels, anticipating discussion of the Algerian issue in the forthcoming UN General Assembly, are seeking to line up support for their 22 August pro- posals for a UN-controlled referendum in Algeria. While hopeful of further overtures from De Gaulle, they are seeking help from the Arab states to maintain their guerrilla operations inside Algeria. ELECTIONS IN THE MALAGASY REPUBLIC . . . . . Parliamentary elections to be held in the Malagasy Republic (Madagascar) on 4 September will provide an im- portant test of strength between President Tsiranana's pro-Western coalition and the Congress party for the Independence of Madagascar (AKFM), an extremist opposi- tion party dominated by hard-core Communists. Tribal rivalry, the coalition's continued appeal in rural areas, and the euphoria created by the republic's attainment last June of independence within the French community are factors favoring Tsiranana's forces. However, the AKFM has attracted growing support since its strong showing in municipal elections last fall. 1v . Page 15 . Page 16 THE WEEK TN RRTEF' Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 cOP4HQEI\lTIAL CU RRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 PART II (continued) INDONESIA >. 0 0 0 0 0 0 o a o o g a s o 0 0 0 0 0. Page 18 President Sukarno, the army and the Indonesian Communist party have begun a new round of maneuvering precipitated by Sukarno's dissolution of the anti- Communist Masjumi and Socialist parties which was followed by the army's ban on Communist party activities in South Borneo and South Sumatra. The army so far is taking a stronger position against Sukarno than it has heretofore attempted; its moves have heightened ten- sions and could lead to a definitive change in Indonesia's internal power structure, CHINESE COMMUNIST FOREIGN MINISTER VISITS AFGHANISTAN < , Page 19 Peiping appears generally gratified with the results of Foreign Minister Chen Yi?s trip to Afghanistan, even though not all the Chinese objectives were accomplished. Chinese propaganda,is exploiting the trip and the sign- ing of a nonaggression treaty as a new example of China's "peaceful coexistence" in Asia. Chen proposed to the Turkish and Iranian ambassadors in Kabul that visits by private individuals be encouraged as a steppingstone,:: toward official exchanges between their countries and China, PATTERNS AND PERSPECTIVES SOVIET UNEASINESS ABOUT CHINESE POPULATION PRESSURE , o a Page 1 Soviet leaders publicly dismiss as provocative any suggestion that Chinese population pressures pose a long- range threat to the USSR. There is, nevertheless, anxiety in certain official quarters over the population disparity between China and the Siberian "vacant lot." In addi- tion, there is some concern that the increasing ratio of Chinese to Russians--already more than 3 to 1--may eventu- ally affect the balance of forces as the Chinese'improve C-UlVt1U~ jV t i iL. THE WEEK IN BRIEF Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 co ^ f I DAWL INTELLIGENCE WEEKLY SUMMARY 1 September 1960 PART III (continued) in modern technology. Moscow's uneasiness has not been allayed by Mao's statements implying that China's large population would be of decisive importance in a nuclear war, assuring enough survivors to make Peiping the domi- nant power after other combatants were left prostrate. USSR TO EMPHASIZE AIR OPERATIONS IN SIXTH ANTARCTIC SEASON . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5 The USSR's plans for its sixth season in the Antarctic (1960-61) include continuation of its ambitious scientific program, with the prospect for a significant increase in coverage with the introduction of a turboprop aircraft. A strip to accommodate heavy aircraft may be built at the Soviet station, Lazaryev, which will probably be moved inland to a more permanent site, and plans for an even- tual increase in the station's winter staff suggest an indefinite stay. The research and supply vessel Ob will leave the Soviet Union earlier than usual this year. The Soviet planned activities will increase the con- cern of Argentina, Chile, and Australia, and could hamper ratification of the Antarctic Treaty. AFGHAN ECONOMIC DEVELOPMENT,.,,, .., . . . . . . . Page 8 Afghan Prime Minister Daud is relying on rapid econom- ic development to strengthen his regime and reinforce Afghanistan's independence. This policy has been fairly successful; the Afghan economy is making progress, particularly in the transportation field, and Daud is being given the credit. As he approaches the Second Five-Year Plan (1961-66), however, Daud seems ready to accept more than in the past from the USSR in the way of advice and support. THE BRAZILIAN PRESIDENTIAL ELECTION . Janio Quadros, the opposition's . . . . . . . . . . Page 11 candidate in Brazil's presidential election on 3 October, has gained strength steadily in the past three months and now is challenging the 15-year dominance of the moderate Social Democratic machine. A number of qualified ob- servers believe his election would lead to political instability and possibly dictatorship. Quadros has stated that if elected, he will renew diplomatic relations with the USSR and recognize Communist China. President Kubitschek, who is ineligible to succeed himself, could probably turn the tide in favor of the Social Democratic candidate, former War Minister Lott. So far, however, the President has not taken an active part in the campaign. 1b - 1L+LlI 1 vii TRR. WEEK TN RRTPF Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 25X1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 OF IMMEDIATE INTEREST BERLIN SITUATION The'threat to Berlin access posed by the East German Govern- ment's declaration on 30 August and the Interior Ministry's de- cree apparently was aimed at emphasizing the ability of the Ulbricht regime to impose sud- den and arbitrary controls over travel to and within the city rather than to create a major East-West incident that would entail a serious risk of a mili- tary engagement. The East Ger- man moves do not appear to bear the earmarks of a sharp change in Khrushchev's public commit- ment to maintain the status quo in Berlin until an attempt is made at a further round of nego- tiations. The Communists probably hope to create a state of anxie- ty and uncertainty among the Western Allies, as well as in West Berlin, that would under- mine their unity in the face of East German or Soviet threats. Moscow probably considers that probing actions and har- assments of the type begun by the East Germans are necessary to focus. public attention on the Berlin question and maintain pressure on the West to negotiate. There are no indications thus far that the East German Government intends during the 31 August - 4 September period covered by the announcement to block either West German civil- ian travel or Allied :military traffic between West Germany and West Berlin. Nevertheless, harassment of Allied ground military traffic and commercial air traffic remains a possibility. Tighter controls have been im- posed on travel by West Germans to West Berlin, and some travelers have been turned back at the zonal border. East German po- lice have prevented West Germans from going into East Berlin. West Berliners still move freely into East Berlin, although some East Berliners reportedly have not been permitted to go into the Western sectors. The regime is anxious to curb the rising refugee flow to Berlin and to condition the pop- ulation to tighter controls on movement to the city. It is the meeting of the influential Federation of Expellees--a un- ion of 31 expellee groups in West Germany--and the smaller Union of Returnees, POWs, and Relatives of Missing Soldiers that served as the pretext for the East German threats and strict- r; ton$rols o i Meetings -Of this 'kind have been held previously in West. Berlin. While Communist propaganda regularly denounces these or- ganizations as "revanchist," the major barrage has been con- centrated against plans to hold a session of the West German Bundestag in West Berlin this fall, as has been done for the CONFIn~~-T~QI PART I OF IMMEDIATE INTEREST D- 1 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 past five years. Since the Bundestag meeting may not be held in West Berlin this year, the East Germans may have seized on the meetings of the private West German expellee groups as a pretext to assert their authority in an area where the Western po- sition on Berlin is weakest--West German access to the city. East Germany probably will warn the West that even more drastic restric- tions will be im- posed if the Bundes- tag should meet in West Berlin. In a statement issued on 31 August, Bonn called East German charges of revanchist motives in permitting the expellees' ral- lies to be held "ab- surd" and stressed the right of all Germans to free ac- cess to West Berlin. Bonn gave no indi.ca- tion that it would exert pressures on the expellees to can- cel the meetings. West 'Berlin Mayor Willy Brandt's visit to East Ber- lin last week and the rousing welcome and applause he re- -WEST GERMANY AND BERLIN visit as a "provocation" and im- plied that any recurrences of the visit would be met with rigorous counteraction. Ulbricht recently returned from the USSR, where he had talks with Khrushchev. The COMMUNICATION ROUTES BETWEEN ceived from East Berliners ob- viously stung the Communists. The Ulbricht propaganda machine immediately characterized the Railroad Autobahn --- Road Canal Air Corridor Control Points for Allied Traffic: A Soviet 1 1 A& Allied Interzonal Border Crossing Points: 'n, Last Z1. West Soviet leader reportedly re- fused to commit himself to a specific timetable on Berlin or to a definite date for a SECRET PART I OF IMMEDIATE INTEREST PA 2 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 SECRET `"'4 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 separate peace treaty. The two leaders are said to have agreed that a stepped-up cam- paign was necessary to document the Communist claim that the Berlin situation could lead to a grave crisis in international affairs. East German propagan- da has long played on the theme that West Berlin is a center for provocations and subver- sion by the "Bonn militarists." Moscow radio's European serv- ice on 31 August approved of East Germany's move against the "revahchist meetings in West Berlin." The East German Government statement contains a vaguely worded warning against "misuse" of the air coridors. While the statement warns the Allies that they must bear the conse- quences for "misusing" the air corridors, it does not commit the East Germans to any spe- cific type of action--or to any action at all--in imple- menting the threat to harass civilian air transportation between West Germany and Ber- lin. Since the East Germans have no physical controls over the airfields or access to pas- senger lists, harassment of civilian aircraft probably would take the form of buzzing by fighters in the corridors. Thus far, there has been no interference with com- mercial or military air traf- fic to Berlin, even though a number of West German ex- pellees have flown to Berlin for the meetings. The language of the East German threats appears to have been deliberately ambiguous in order to leave the regime maximum flexibility in choos- ing measures to implement its warnings. A more in- tensive period of probing actions and political war- fare may be in the offing designed to test the deter- mination of the West to maintain its rights in Ber- lin. The East Germans probably also hope to demonstrate anew to the West Berliners that they occupy an exposed po- sition and that the Western powers have a limited capa- bility to assist them in the face of determined Com- munist action. There is also a possibility that the Ul- bricht regime will attempt to interfere with the return to West Germans to West Germany at the close of the meetings of the expellee groups on the grounds that they were involved in "provocative" activities of "revanchist" organizations in West Ber- lin. East German Deputy Foreign Minister Otto Winzer stated on 1 September that his government considered the four-power agreements on free access to Berlin to be null 'and' void. East Germany is a sovereign state, he asserted, and is not bound by any legal obligations con- tracted by the Soviet Union. Winzer's statement suggests the possibility that the ;regime may attempt to extend its curbs on West German travel to Berlin after 4 September. SECRET PART 1 f%%' T11Z1"VTTT A%''1 TWPPTi'T)r.q'r P cre 3 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 ,Ja.a,aecr a CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 The Sino-Soviet dispute over world Communist strategy and tactics, developing since 1957, has moved into a new and critical phase since June. The relationship is now similar in several respects to the Soviet- Yugoslav relationship in the spring of 1948--the period in which Moscow put pressure on the Yugoslav party to force a change in policy or a change in leadership, the period ending with the public denunciation of Yugoslavia by the Cominform. It was apparent in June that Peiping was not satisfied simply by the wrecking of the summit talks. The Chinese had long been calling for a funda- mental change in Soviet policy and even after the summit they saw no signs of such a change. At the meeting of the World Federation of Trade Unions in Peiping in early June, the Chi- nese summoned various other Com- munist members of the WFTU and stated their opposition to So- viet policies throughout the world. In the public sessions, the Chinese delegates spoke strongly against Soviet posi- tions. This active Chinese lobby- ing against Soviet policy in one of the important arms of the world Communist movement seems to have broken Khrushchev's patience. Immediately after the WFTU meeting, the Soviet party took pre-emptive action. Some of the WFTU delegates were re- portedly told in Moscow on their way home that the Sino-Soviet dispute was very serious, and that their parties should dis- cuss the issues and produce a resolution accusing the Chinese of violating the November 1957 declaration of the Communist parties then meeting in Moscow. Bucharest Meeting The Bucharest conference of Communist parties--including the major European parties--was used by the Russians to launch their offensive against the Chi- nese party within the ranks of the world Communist movement. 25X1 on t o eve o t e uc ares meetingi the Soviet party dis- seminated an 80-page letter strongly criticizing Chinese Communist positions and Chinese actions in support of those po- sitions. several of the reported Soviet charges are credible. For ex- ample, the Soviet letter is said to have charged the Chinese with failure to adhere to the November 1957 dedlaration, of failing to understand that "peace- ful coexistence" was necessary, of opposing the Soviet gradual- ist policy toward nationalist movements and government in the colonial areas, and of re- fusing to recognize that dis- armament was a feasible goal. Khrushchev is also said to have criticized the Chinese--whether in the letter or in the Bucharest meetings is not clear--of lobby- ing against Soviet positions in communications to other Com- munist parties and of attempt- ing to form pro-Chinese "fac- tions" in them. Khrushchev is said also, at the Bucharest meeting, to have cited a Chinese refusal to permit the Russians to con- struct certain installations in China for Soviet military purposes, and to have made deri- sive remarks about the Chinese "!Leap forward" and commune pro- grams. Judging from subsequent SECRET PART I OF IMMEDIATE INTEREST Page 4 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 developments--the departure of unusually large numbers of So- viet technicians in China, some strong assertions of Chinese economic independence in the Chinese party press--and un- precedented warnings in the bloc press--Khrushchev may also have threatened to reduce or withdraw Soviet material aid to China if the Chinese did not back down. As the Soviet paper Soviet Latvia recently put it, naming Communist China for the first time in the dispute: "Could one imagine the successful de- velopment of socialism.. .in such a big country as, let us say, China, if this country were to be isolated,...? Such a country would be subjected to an economic blockade by the capitalist countries and ex- posed to military blows...." indicative of an effort to pre- pare the Russian people psycho- logically for the possibility of a break, is similar to the boycott placed on commentary about Yugoslavia in the spring of 1948. Concurrently with the sud- den withdrawal of some part of the Soviet technical force in China, and just after a secret meeting of Chinese party lead- ers in Shanghai, a Shanghai journal published a bristling article which has since been reprinted in the party's offi- cial People's Daily. The arti- cle emphasized the advisability of relying on "one's own ef- forts." It also accused un- named "reactionaries in various countries" of being "unwilling for us to accelerate socialist construction and rapidly pre- pare the conditions for advanc- ing to Communism." July Plenum At the mid-July plenum of the Soviet central committee following the Bucharest confer- ence, there was evidently a lengthy discussion of the Sino- Soviet relationship. The plenum resolution contained the most serious--if still implicit-- formal charges against the Chi- nese that have yet been made by the Russians, charges of "left- wing deviation" and "narrow na- tionalism." These charges were similar to--although not as strong as--the Cominform resolu- tion of June 1948 which expelled the Yugoslav party. Shortly after the plenum, withdrawals of some Soviet ad- visers evidently began. Also in early or mid-July, Moscow radio began to boycott China in commentary to the Russian audience--a boycott that has now lasted for the unprecedent- edly long period of almost two months. This boycott, perhaps There were similar emotion- al passages in the mid-August article in Red Flag by Li Fu- chun, a politburo member re- sponsible for long-range econom- ic planning. Li cited the hatred of China by imperialists, reactionaries, modern. revision- ists and "those who echo them," and declared that their "anti- Chinese activity" simply proved that "we' are real Marxist-Len- inists and...are not doing badly." Li's article discussed Peiping's new policy of greater attention to developing agriculture--a policy which, while presumably reflecting official concern over food shortages in China, may also indicate an expectation of reduced Soviet aid to industry. At the same time, more than a dozen increasingly severe, thinly veiled, authoratative attacks on Chinese Communist policies and actions have appeared SECRET PART I OF IMMEDIATE INTEREST Page 5 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927A002900010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 in Soviet media since the Bucha- rest conference and the July plenum. These articles charge the Chinese with "blasphemy," with drawing "absurd" concliL, sions from the current inter- national situation, and with departing from or not properly understanding Marxism. More important, as an in- dication of future Soviet tac- tics, these articles implicitly accuse the Chinese of "disor- ganizing" and "disorienting" other Communist parties, there- by endangering the unity of the international Communist movement; and they implicitly stress the primacy of the Soviet Communist party in the interpretation of Marxist-Leninist dogma. This may reflect a Soviet intention to accuse the Chinese at some future bloc conclave of "-split- ting" the international move- ment. One of the most significant recent Soviet counterattacks against Peiping was that by the Soviet expert on Eastern ques- tions, Y. Zhukov, writing in Pravda on 26 August. In re- sponse to Peiping's criticism of the gradualist Soviet stra- tegy toward nationalist move- ments and governments in the uncommitted countries, Zhukov stresses that "the task of socialist transformation (i.e., Communist take-ovej-) cannot be mechnically placed as the order of the day in all countries," denies that peaceful coexist- ence retards the national lib- eration movement, and claims that many of the new states in Asia and Africa are making satisfactory progress away from "imperialism"--despite the views of "hopeless dogmatists" (the Chinese). Peiping wants a purer and'faster revolutionary program in these countries. November Meeting the Soviet 25X1 party plans an- ot er confrohtation with the Chinese in November, at a Mos- cow meeting in which a commis- sion of Communist parties is to "judge" the dispute. The commission is reportedly to in- clude, at Chinese insistence, some nonbloc Communist par- ties. As of June, Peiping evi- dently believed that it would have some support from that quarter. The issues between Moscow and Peiping which may be de- bated at the Moscow conference include 1) whether the Soviet pol- icy of-'low risks, coexistence, and detente should be replaced by a more militant revolution- ary policy thtoughout the globe, particularly in underdeveloped and former colonial areas; 2) whether the bloc should seek to avoid local as well as general wars on the grounds that local wars could easily expand (the Soviet view), or whether it should support and even in- cite wars of liberation and other "just" wars; 3) whether disarmament is to be seriously negotiated with the West; 4) whether the Communists can take power in a large number of non-Communist countries peace- fully without resort to armed uprisings and civil war; and SECRET OF IMMEDIATE INTEREST Page 6 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927A002900010001-1 Approved For Release 2008/10/17: CIA-RDP79-00927A002900010001-1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 5) whether the Communists in nonbioc countries should seek to press the "minimum" of "maximum" program and to what degree they should ally them- selves with such non-Communists as socialists and trade union- ists. Khrushchev's Strong Stand Khrushchev presumably wishes to avoid a complete break with the Chinese. His tactics seem designed to iso- late and squeeze the Chinese party and thus to induce it to retreat. His actions seem al- so, however, to have made it pretty clear to Peiping that he is willing to accept a break. Judging from their recent comment, the Chinese have not decided to retreat, but have continued to defend positions offensive to the Russians. In addition to Li Fu-chun's arti cle, a People's Daily editorial of 13 August rejec a the "blasphemous talk" of "apolo- gists for imperialism" who criticized the Chinese posi- tion on war. In the latest comment, People's Daily on 30 August--apparently in response to the 26 August Pravda arti- cle on strategy for a uncom- mitted countries--described So- viet policy as a "violation" of.Lenin's views and asserted that Mao's more aggressive line was "entirely" consonant with Lenin's views and with the views of other Communists "faithful" to Marxism-Leninism. Satellites' Stands East European Communist leaders have continued to echo Moscow on key foreign policy and ideological issues. In addition, in keeping with the pattern set by Moscow, the satellite home services have given little or no commentary on Chinese internal developments since the first week in July. In Sofia, the Bulgarian Communist party daily Rabotni- chesko Delo printed an ar is e on 797ATg-ust supporting the Soviet position, and on 25 Au- gust a Bulgarian agricultural paper warned that any bloc party which left the bloc would be "destroyed by imperialism." The publication of the article coincided with the arrival of Soviet party secretary Kozlov and Deputy Premier Ignatov in Sofia. The Soviet leaders, in talks with top-ranking Bulgarian party members at the national and local level, presumably used the occasion to explain the Soviet side of the con- troversy with China and to en- sure unity of action within the Bulgarian party. All three Asian satellites-- North Korean, North Vietnam, and Mongolia--have shown re- luctance to choose sides in the dispute. After some initial efforts at holding on neutral ground, however, Mongolia pro- vided Moscow with its strongest endorsement by an Asian Communist regime in a 14 August editorial supporting Soviet views on peace- ful coexistence. Pyongyang, although it has not gone as far as the Mongolians --or the Russians--in implicit criticism of the Chinese, has ac- cepted the basic tenets of Khru- shchev's policies in a recent party resolution. In a mid-August state- ment on the Bucharest meeting, Hanoi simply avoided all ideolog- ical pronouncements which could be construed as support for either side and confined itself to plati- tudes about the need for bloc unity. SECRET PART I OF IMMEDIATE INTEREST Page 7 of of 15 Approved For Release 2008/10/17: CIA-RDP79-00927A002900010001-1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 Cuba's walkout from the OAS foreign ministers' meeting on 28 August further isolates the Castro regime from other hemisphere nations and emphasizes to them that the Cuban Govern- ment has rejected the inter- American system in favor of greater dependence on support from the Sino-Soviet bloc. Cuba notified the foreign ministers that it will again charge the US with economic aggression before the UN Security Council. For- eign Minister Roa's speeches at the OAS meeting and subsequent comment by Fidel Castro and Roa and the official Cuban press clearly state that the Castro regime regards itself as the vanguard of the "anti-imperialist" revolution that will eventually sweep Latin America. The Cuban press and radio have unleashed .a torrent of abuse against the OAS, which Radio Mambi, the most virulent, called "a gang of churls, a con- clave o-r lackeys under the or- ders of the powerful and bestial imperialism." On 30 August, Fidel Castro condemned the for- eign ministers as "docile serv- ants.m of imperialism" who "betrayed" the people of Latin America by siding at the OAS meeting with the "aggressor nation" rather than with the "heroic Cuban people." All the other Latin American governments, he said, are controlled by mili- tary and economic oligarchies linked to "imperialism." "Our country," he added, "has had the honor of initiating the American rebellion against the Yankee empire." The OAS meetings have had serious repercussions on the domestic; political scenes in two South American countries. The Presidents of Venezuela and Peru may have a showdown with their foreign ministers for not following instructions to sup- port a firm resolution against Soviet bloc intervention in the hemisphere. The resignation.of these officials, whose actions and statements at San Jose were unfavorable to the US and large- ly sympathetic to the Castro regime, could stir serious po- litical reactions in their coun- tries, where pro-Castro groups are promoting unrest. The resig- nation of Venezuelan Foreign Minister Arcaya, whose party has allied itself with other left- ists and Communists, in support of Castro, would be a potential threat to President Betancourt's coalition and a pretext for fur- ther protest demonstrations. Moscow signified its inten- tion of continuing strong sup- port for Castro by issuing a statement by Foreign Minister Gromyko strongly denouncing the US for its activities at the OAS meeting. Criticizing Sec- retary Herter's speech of 25 Aug- ust, Gromyko claimed that the US objective at the meeting was to gain support for "aggressive policies" toward Cuba by "con- cocting charges against the USSR." He challenged the "right" of the US to regard Latin Ameri- can affairs as its exclusive con- cern and defended the right of the USSR to take an interest in sit- uations which emerge in other areas of the world. Bloc commentators have generally assessed the OAS meet- ing as a defeat for US diplo- macy. A widely broadcast Soviet commentary picks up the main point of Gromyko's statement and concludes that the San Jose resolution is "not worth the paper it is written on." The Castro regime continues to strengthen its contact with SECRET PART I OF IMMEDIATE INTEREST Page 8 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 NLiL.i\L 4 CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 the Sino-Soviet bloc. The gov- ernment announced on 29 August that Cuba and North Korea had concluded a cultural exchange agreement, that the two coun- tries had agreed to establish diplomatic relations on the am- bassadorial level "as soon as possible," and that a Cuban del- egation will leave shortly for Pyongyang to negotiate a trade treaty. If Cuba grants diplomatic recognition to the North Korean regime, it will be the first nonbloc country to do so. While the bloc may eventual- ly render large-scale military assistance to Cuba., Moscow at the moment is moving cautiously in supplying the assistance, probably in orddr, . to minirA12e, the SECRET. Shipments of major military items, such as jet aircraft, have not yet begun. The delivery of such mil- itary equipment prob- ably will be preceded by training of Cuban military personnel in the bloc. PART I OF IMMEDIATE INTEREST Page 9 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 September 1960 expected reaction in much of Latin America. Relations between Cuba and Dr. Cheddi Jagan, leader of British Guiana's Communist- dominated majbrJ ty party, have been developing rapidly, and Jagan announced in a press con- ference in Havana on 25 August that Cuba had agreed to furnish his government with a $5 000 000 loan and technical aid. On the domestic front, the drastic purge of naval personnel after the alleged discovery of an antigovernment plot in the navy has apparently been largely concluded. The army and militia units are exercising complete control of-naval facilities un- til leftist Lieutenant Commander Cainas can reorganize the navy to the satisfaction of Armed Forces Minister Raul Castro. The government has renewed its charges that "pirate" air- craft are making hostile incur- sions over Cuban territory. It is possible, however, that the flights were engineered by the Cuban Government itself in an effort to arouse Cubans further against the United States. Fidel Castro on 30 August accused "agents of Yankee imperialism" of planning to shoot down For- 25X1 eign Minister Roa's plane on his return flight from San Jose. Generalissimo Trujillo apparently is preparing to take over the presidency of the Dominican Republic, havirig:-ruled through puppets since 1952. The regime-controlled Radio Caribe began to criticize President Balaguer on 27 August and to urge that Trujillo be appointed secretary of state for the armed forces. If Balaguer re- signs, the secretary of state for armed forces is constitu- tionally next in line to be- come president. Trujillo continues to be vindictive over the OAS foreign ministers' vote on 20 August to apply diplomatic and economic sanctions against his regime. SECRET PART I OF IMMEDIATE INTEREST Page 10 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 Approved For Release 2008/10/17: CIA-RDP79-00927A002900010001-1 1 September 1960 The estimated value of private US investment in the Dominican Republic is $200,000,000. The American Embassy, re- duced to a consulate after re- lations were broken on 26 August, stated that it feared Trujillo would liquidate the leaders of the moderate and democratically inclined opposition. Control might then pass by default to leftist groups unless the mili- tary is able to dominate a new regime. The small pro-Castro and probably Communist-led op- position party that Trujillo has tolerated since June would be considerably strengthened by several thousand politically articulate exiles--many of them extreme leftists--who are ex- pected to return as soon as the regime falls. The consulate also stated that "'Trujillo's anti-Communism has always been a political device to safeguard his power" and that he will "play footsie with the Communists if he can make momentary gains." Tru- jillo's official press announced on 25 August that negotiations were under way with the New China News Agency so that "the impartial information supplied by the Chinese press organiza- tion" could keep readers "bet- ter informed." Since 25 August, Radio Caribe has been using items attributed to TASS. Any successor government may immediately face severe economic problems, since Tru- jillo is expected to convert the large available stocks of the country's main exports-- sugar, coffee, cocoa, and beef-- into cash as soon as possible for his own use. The former US air attachd began receiving reports on 26, August that government troops supported by tanks are con- centrating at San Jose de Ocoa-- an interior town where anti- Trujillo dissidence has been 25X1 hills. strong--to destroy an insur- gent force forming in nearby SITUATION IN THE CONGO Premier Lumumba's success in rebuilding some of the units of the former Force Publique in- to a Congolese national army and his deployment of them against the secessionist "Mining State" in Kasai Province suggest that he may in the near future begin operations against his main ad- versary, President Tshombd of Katanga Province. Although Lumumba's forces were initially successful in seizing the "Mining State" cap- ital of Bakwanga, recent reports, which are confused and contra- dictory, allege that his forces suffered a reversal at the hands of Baluba tribesmen who rallied to the secessionist cause and recaptured Bakwanga, Luputa, and other points. Nevertheless, SECRET PART I OF IMMEDIATE INTEREST Page 11 of 15 Approved For Release 2008/10/17: CIA-RDP79-00927A002900010001-1 Approved For Release 2008/10/17: CIA-RDP79-00927AO0290001 0001 -1 SECRET CURRENT INTELLIGENCE WEEKLY g;RY 1 September 1960 Lumumba's forces in Kasai appear to be in a position to threat- en Katanga. The premier may also re- ceive aid from Tshombe's tribal op- ponents in northern Katanga? President Tshombd, who expects an early invasion at- tempt by i,umumba' s forces, is taking de- fensive measures such as destroying bridges, roads, and rail con- nections with Kasai to a depth of 12 miles along a 250- mile frontier. He has stepped up re- cruitment and troop training and plans to increase his 1,100-man gendarmerie to 3,000 men within the next four weeks. ,B~kwanga RUANDA URUNDI ~ANGANYIKA 25X1 been a deep-seated problem for the UN. While Belgium completed its troop evacuation from the bases on 30 August--except for about 1,000 technicians left to service the bases under agree- ment with the U' and an addi- tional 600 personnel discovered at Kamina on 31 August who claimed to lack transport for evacuation--neither Lumumba nor the USSR is satisfied with the present arrangement. Soviet UN delegate.,