CURRENT INTELLIGENCE WEEKLY SUMMARY

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October 19, 1999
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Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 CONFIDENTIAL COPY NO. OCI NO.4898/60 6 October 1960 (CURRENT INTELLIGENCE WEEKLY SUMMARY CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE CONFIDENTIAL DOCUMENT NO. NO CHANGE IN CLASS. 0 rl DECLASS8F!ED CLASS. CHANGED TO: TS C NE,XTREVIEW DATE: r: ; .A3 25X1 AUTh: HR 70-2 DATE: REMEWE State Dept. review completed 14 MAY 193A Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 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-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 T H E W E E K I N B R I E F OF IMMEDIATE INTEREST KHRUSHCHEV AT THE UN GENERAL ASSEMBLY Page 1 Khrushchev seems determined to overcome any impres- sion that the bloc is on the defensive as a result of the generally adverse reaction to his UN reorganization plan. Khrushchev probably believed that the President's letter turning down a meeting and Macmillan's speech at the UN requited a vigorous reply to dispel any suggestion of re- treat, His performance indicates that the bloc will pur- sue an uncompromising line toward the West for the remainder of the UN session, but in talks with Prime Minister Macmillan he has indicate a a summit negotiation on the Berlin question might be possible in a few months. Hammarskjold will be under increasing pressure from Asian-African UN members to revamp the senior echelons of the UN Secretariat to make its composition more repre- sentative of the present membership. REPUBLIC OF THE CONGO . . . . . . . . . . . . . Page 4 The government crisis in Leopoldville continues, al- though Lumumba appears to have lost the support of many of the deputies from his own stronghold of Stanleyville and may no longer be able to carry the assembly. The projected round-table conference of political leaders now may be shelved by Colonel Mobutu in favor of a direct appeal to the Congolese assembly. The apparent erosion of Lumumba's support will make it more difficult for his African allies--the UAR, Ghana, and Guinea--to restore him to power. Meanwhile, the UN Command is turning greater attention to the Congo's grave economic SITUATION IN LAOS . Page 6 Premier Souvanna Phouma seems to be gaining the upper hand in his struggle with General Phoumi's Savannakhet Revolutionary Group. Souvanna's improved position is re- flected in his growing reluctance to negotiate with Savannakhet. Negotiations between Souvanna and the Communist Pathet Lao are apparently imminent. The Pathet Lao will be negotiating from a strong position because of its control of Sam Neua Province. CONFIDENTIAL TIP', YY k F r$ TN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 'wow CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 NOTES AND COMMENTS SING-SOVIET RELATIONS . . . . . . . . . . . . . . . . . . Page 1 Moscow evidently sent a high-level delegation, pos- sibly including Mikoyan and Suslov, to Peiping in September, presumably to attempt again to find some way to compose the dispute between the Soviet and Chinese Communist parties and end the bitter recriminations of recent months. Moscow may have felt that as a result of its campaign to isolate the Chinese party in the world Communist movement, Peiping would be more ready to compromise. Recent Chinese state- ments, however, suggest that no progress toward reconcilia- tion has been made, and a further deterioration in rela- tions appears likely. PEIPING CELEBRATES. NATIONAL DAY . . . . . . . . . . . . Page 4 The 11th anniversary of the founding of the Chinese Communist regime was celebrated on 1 October in a more subdued spirit than in previous years. Peiping had no outstanding economic achievements to announce; indeed, the principal speaker this year, Foreign Minister Chen Yi, dwelt on the effects of natural disasters on this year's grain harvest. The failure of all bloc coun- tries, except Albania, to send delegations underlined the stresses in the Sino-Soviet alliance. A highlight of the day was the signing of the Sino-Burmese boundary treaty--an event stressed in holiday propaganda, particu- larly for neutral countries, as proof of Chinese adher- ence to peaceful coexistence. ALBANIA REAFFIRMS SUPPORT OF CHINESE POSITIONS . . . . . . Page 5 Albania, the smallest and least significant of the satellites, in the last three weeks has firmly aligned it- self with the Chinese Communist positions in the Sino- Soviet dispute. China is supporting Albania in the face of growing Soviet disapproval of the Tirana regime. The Soviet leaders probably view Albania's continued willing- ness to defy Moscow as a threat to their campaign to isolate Ching and to their authority in Eastern Europe, and can be expected to make further moves to bring Albania into line. Tirana leaders earlier were reported to be uneasy and tense, apparently because of Soviet pressure, and evidently have postponed their party congress scheduled for November. ITALIAN COMMUNISTS AND THE SINO-SOVIET DISPUTE . . . . . The Sino-Soviet dispute has revived the "hard-soft" Page 7 controversy that has long plagued Italy's Communist party-- the largest outside the Soviet bloc. Secretary General i i CONFIIn)FAN-ii: THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 ,*ago, CONfIvE, 111 L CURRENT INTELLIGENCE WEEKLY SUMMARY PART II (continued) Togliatti can be expected to keep the party firmly oriented toward Moscow, but opposition elements may attempt to use the Sino-Soviet dispute to undercut the present party leaders. Provincial congresses reportedly will be held throughout Italy this fall to discuss "peaceful coexistence between diverse systems and the noninevitability of war." TENSIONS OVER BERLIN . . . . . . . . Bonn?s termination of its 1961 trade agreement with East Germany--announced on 30 September in retaliation for Communist harassment of West Berlin--will probably not re.- suit in an end to interzonal trade, but it puts West Germany in a legal position to take further action to restrict trade. Bonn and West Berlin authorities are considering a plan to strengthen West Berlin's position by routing all interzonal shipments through West Berlin, thereby making it difficult for the East Germans to tamper with Berlin access routes without blocking their own imports. Party boss Ulbricht on 4 October strongly asserted East German "sovereignty" over East Berlin. and demanded establishment of a demilitarized "free city" of West Berlin, but gave no indication of what counter- measures his regime intends to take. His cautious atti- tude may mean that any decision on countermeasures must await Khrushchev's return from New York. Fidel Castro's experience at the UN General Assembly has apparently strengthened his view of himself as a leader of the peoples of all underdeveloped countries "against imperialism," and there are indications that he may return to the UN later this month. Castro has an- nounced that Nkrumah and Nasir may visit Cuba, and his regime is increasing its propaganda support of the Algerian rebels. Meanwhile, the government is further strengthening its ties to the Sino-Soviet bloc in various ways. Page 8 Page 10 NEW PARTY STRUCTURE IN THE SOVIET ARMED FORCES . . . . . . Page 12 A plan set forth in May to expand the regular party structure in the Soviet armed services now is being im- plemented as a result of a new decree of the Soviet central committee. Battalion.--level party organizations are being given powers formerly exercised at the regimental level. Further steps toward replacing the political departments in military units with the type of party organizational forms found in civilian life will probably depend on the success the new organizations have in safeguarding party interests in the military CONFIDENTIAL THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET *NO CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 PART II (continued) USSR INTENSIFIES CAMPAIGN AGAINST IDLERS . . . . . . . . . Page 12 Moscow has stepped up its drive against "parasites" and idlers, and greater efforts are being made to generate widespread public indignation against all forms of unde- sirable behavior. The campaign has spread into all social levels, even the upper levels of the bureaucracy, and in- cludes particularly vehement attacks on the tendency to acquire private property. Parasitism in all its varieties is characterized as the most serious vice of present-day Soviet society. . . . . . . . . . . Page 14 Representatives of the Algerian rebels are intensify- ing their efforts both in New York and in Western capitals to secure backing for a UN-conducted referendum to settle Algeria's political future. Rebel Premier Ferhat Abbas' trip to Peiping was probably undertaken to demonstrate to Western governments that the rebels were in earnest when they stated they would accept aid "wherever it can be found." Meanwhile, Morocco and Tunisia are engaged in maneuvers designed to enlist UN intervention in Algeria on the pattern of UN operations in the Congo. . . . . . . . . . Page 15 The situation along the Syrian-Jordanian border has eased somewhat, but efforts to arrange a meeting between Husayn and Nasir have been unsuccessful, and the tensions between the two countries persist. Jordan's recognition of the Qasim regime in Iraq stems from the antipathy of both governments toward the UAR; the two countries now may cooperate to support secessionist tendencies in the UAR's Syrian region. On a neighboring border, Israel's resump- tion of dredging work in the Jordan River is causing new friction with the UAR, In Iraq, the regime's crackdown on extremism in the press appears to be damaging the Communists more than the nationalists. Relations between the Qasim government and. the Iraq Petroleum Company are worsening. New efforts are under way in Sudan to form a coalition among the various influential elements seeking to oust the Abboud regime. AFGHAN-PAKISTANI BORDER TROUBLES . . . . . . . . . . . . . Page 18 Fighting among the Pushtoon tribes living along the Afghan-Pakistani border north of the Khyber Pass now ap- pears to be slackening. Despite the continuing build-up of military forces in the area and the exchange of re- criminations, both Kabul and Rawalpindi seem to be trying to keep the disturbance localized. SECRET THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 rr ai.ra %we CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 PART II (continued) SINO-BURMESE BORDER TREATY . . . . ? Page 20 The Burmese consider the border treaty signed on 1 October in Peiping their most significant diplomatic achievement since independence. The exactitude of the language and completeness of detail in the treaty appear to be products of the Burmese chief negotiator's deter- mined effort to make it difficult for Peiping to find any basis for future disputes over the treaty's interpretation. The Burmese still view the Chinese as a dangerous neigh- bor and have placed the frontier areas under special PHILIPPINE CONCERN OVER POSSIBLE RESURGENCE OF HUK ACTIVITY . . . . . . . . . Page 20 A recent wave of killings in Luzon provinces, possibly politically motivated, has caused speculation in the Philippines concerning a possible resurgence of the Commu- nist-led Huk rebellion. The Auks apparently have no more than a nuisance capability, however, and the Philippine Communists are not believed to be abandoning their primary reliance on tactics of subversion and on efforts to exploit the country's growing nationalist sentiment. SOUTH KOREAN UNREST . . . . . . . . . . . . . . . Page 21 Increasing South Korean student unrest, agitation among lower ranking officers in the armed forces, and press criticism suggest growing popular dissatisfaction with the Chang Myon government. The situation is aggra- vated by the political stalemate resulting from factional- ism in the ruling party which prevents the government from t k a ing a firm lead in shaping public opinion. THE COMMON MARKET'S FARM PROBLEM . . . . . . . . . . . . . Page 22 The Common Market is encountering strong opposition to its program for gradually equalizing agricultural prices among the member states, supporting prices with variable import duties, and replacing national marketing bodies with community agencies. The program, which had been recently revised by the Common Market Commission in an effort to satisfy both internal and external criti- cism, is still criticized as either insufficiently pro- tectionist or not liberal enough. An agreed farm policy, however, is probably prerequisite to full implementation of last May' decision to accelerate the Common Market's development. SECRET THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET *460 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 PART II (continued) POLITICAL INSTABILITY IN EL SALVADOR . . . . . . . . . Page 23 The Salvadoran Government has emerged from its recent political crisis in a dangerously weakened condition and on 3 October extended the state of siege for an additional 30 days. Communist and pro-Castro elements are actively exploiting growing popular pressure for socio-economic reforms, and President Lemus has been unable to provide the leadership required to carry out his electoral prom- ises of moderate progress in this field. A new political crisis could arise at any time and might result in a military seizure of power and the subsequent transfer of the presidency to the still popular ex-President Osorio. PROSPECTIVE CHANGES IN FEDERATION OF RHODESIA AND NYASALAND . . . . . . . . . . . . . . . . . . . . . . . Page 24 The publication on 11 October of the Monckton Com- mission report on possible structural changes in the Federation of Rhodesia and Nyasaland will revive controver- sy as London tries to reach an accommodation between white- settler and African-nationalist interests. While now tending to concede to African aspirations, London will be unwilling to "sell out" the white settlers at a con- stitutional conference which may follow as early as December. Britain's recent moves to promote harmonious relations with African nationalists will probably not prove wholly successful, and the federations' white- settler prime minister already opposes the reported recommendation that Nyasaland and Northern Rhodesia be free to secede after five years. REPUBLIC REFERENDUM IN SOUTH AFRICA . . . . Page 26 The victory of Prime Minister Verwoerd's Nationalist party in the referendum on 5 October gives Verwoerd a mandate to press for the early reconstitution of South Africa as a republic. The strong showing of the opposi- tion indicates that the deep split between the Afrikaans-. and English-speaking communities has not been lessened. Verwoerd may call for new elections to increase his com- manding lead in parliament. His announced intention to proceed with the establishment of a republic regardless of Commonwealth disapproval could lead to the republic's denial of membership--the first such action in Common- wealth history. SECRET vi THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY PATTERNS AND PERSPECTIVES POLITICAL PERSPECTIVES IN TURKEY . . . , . Page 1 As the military regime in Turkey enters its fifth month in power, the restoration of civil authority, which the regime still professes as its goal, appears more distant than ever. The ruling Committee of National Union (CNU), having consolidated its position, has launched a widespread program of reform. Despite outward signs of stability, however, there are growing indications of cleavage and tension within the ruling group and of possible adverse public reaction to the forthcoming trials of officials of the ousted Menderes government. In developing its foreign policy, the CNU may in effect promote "positive neutrality" and accept Soviet aid offers. FRENCH LABOR AND THE FIFTH REPUBLIC . . . . . . French labor unions have been in a relatively un- favorable position under the De Gaulle regime, and until well into 1959 were hesitant to press demands on the government. Since then strike activity has increased, but the government has ignored most union demands and is unlikely to change its basic policy of tight wage controls. The Communist leaders of the General Labor Confederation are confident that they have laid a firm basis for broad joint action with the non-Communist unions at some future date. BOLIVIA UNDER THE NEW PAZ ADMINISTRATION . . . . . In its first two months in office the leftist Paz Estenssoro administration has initiated a drive for foreign aid in improving Bolivia's economy, which is nearly bankrupt despite continuing US help. Paz Page 4 . . Page 13 SECRET vii THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 25X1 25X1 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 IJL Vi \iJ i CURRENT INTELLIGENCE WEEKLY SUMMARY PART III (continued) apparently hopes for substantial investment in the tin mines from Germany or France; in addition the USSR has suggested the possibility of aid. Paz may hope that demonstrable economic progress will free him from his considerable political dependence on the Communist infiltrated labor forces linked with Vice President Juan Lechin. These forces have been strengthened in the past year or two by Bolivia?s continued failure to achieve the economic growth promised in the sweeping revolution of 1952. SECRET THE WEEK IN BRIEF Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 SECRET ..~ OF IMMEDIATE INTEREST KHRUSHCHEV AT THE UN GENERAL ASSEMBLY Khrushchev's actions and statements at the UN are in- tended to make it clear that the USSR will not retreat from its demands in face of the generally adverse reaction to his UN reor- ganization plan and attacks on Secretary General Hammarskjold. After a few attempts to play down this question and re-empha- size disarmament as the key is- sue facing the assembly, Khru- shchev reacted to continuing strong support for Hammarskjold and criticism of the Soviet plan by renewing his attacks on the secretary general. In his address on 3 October he warned that Hammarskjold's failure to resign would lead the Soviet Union to draw the "necessary conclusions," and he threatened to withhold Soviet cooperation with future UN de- cisions. In his previous speech on the Chinese representation question, Khrushchev hinted the bloc might withdraw from the UN and form a separate internation- al organization. Khrushchev's tactics in re- newing his campaign suggest.. that he sees a sustained attack backed by occasional threats as the only means of achieving some results which could be represented as an acknowledgment of the validity of Soviet demands for a redis- tribution of power in the UN ex- ecutive organs. The Soviet Un- ion may feel that continuing attacks on Hammarskjold's posi- tion will gradually erode sup- port for him among the Afro- Asian powers. Eisenhower-Khrushchev Meeting Khrushchev's strategy in handling the question of a meet- ing with President Eisenhower, as proposed by five neutralist leaders, appears to have back- fired and forced a switch in tactics. After Nasir's original call for a meeting, bloc dele- 25X1 gates encouraged expectations of a favorable reply from Khrushchev. 25X1 ru- shchev had obtained "permission" from Moscow for the meeting. It is likely that Khrushchev ex- pected that the United States would have difficulty rejecting the neutral powers' initiative out of hand, and that an equiv- ocal reply would provide a wide field for maneuvers designed to discredit American sincerity and contrast the President's expected insistence on release of the RB-47 crew with Khru- shchev's own willingness to dis- regard previous American "prov- ocations." The President's letter re- jecting the neutralists' move and calling for "Soviet action in the UN and elsewhere" to pave the way for future talks created a new and apparently unexpected situation. Khrushchev probably believed that, in light of Macmillan's rebuttal, of his views and the President's re- jection of a meeting, even an ambiguous response from him would have implied a. retreat under pressure from the position SECRET PART I ni' T ANUT.`T' T AI'' T VfPVD V QT D n a'e 1 of S Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 he took in Paris and would have been interpreted as a sign of weakness. In his 3 October speech, therefore, Khrushchev dismissed any hope for agreement in a bilateral meeting as "naive" and made no attempt to align himself with the neutralists' position. In his formal reply to the five leaders, he avoided an outright rejection of a meet- ing but reverted to his patently unacceptable demands for con- demnation of the U-2 and RB-47 flights as a precondition to a meeting. The Soviet leader apparent- ly chose to regard the Presi- dent's position as an affront to his own prestige and that of the USSR, and felt it required a vigorous reply. Khrushchev probably also concluded that any acknowledgment of the pos- sibility of resuming negotia- tions now would have blunted his efforts to use this UN session to indict the West on the issues of anticoloniajism, the Congo situation, and the U-2 affair. In his letter to the neu- tralists, Khrushchev did not repeat his characterization of the idea of a meeting as "naive," but instead sought to place the onus on the President for fail- ure of the initiative. He strongly rejected "any attempts to advance some preliminary con- ditions" for a meeting by the "side which has embarked on the road of perfidy..." and contended that the President's letter proves that the United States "has no serious intention of seeking ways to Settle oiat9tand- ing issues." Nehru withdrew the five-power resolution on 5 October, explaining that amend- ments had made it meaningless. SECRET East-West Issues Although Khrushchev's per- formance indicates that the bloc is determined to pursue an uncompromising line toward the West for the remainder of the UN session, in his talks 25X1 with Prime Minister Macmillan and in his remarks to the press, Khrushchev attempted to keep alive the possibility of a sum- mit conference on the Berlin and German questions. In his first meeting with Macmillan on 29 September, Khrushchev proposed that a summit conference could be convened in January, provided there were no "provocations" by Bonn. He stressed the standard Soviet position that the West must recognize the existence of two German states, sign a peace treaty on that basis, and "liquidate" the occupation of Berlin. These statements were ac- companied by the warning that the West's failure to agree would result in a German peace conference and the conclusion of a separate peace treaty. Khrushchev, as well as Foreign Minister Gromyko in his discussions with Foreign Secretary Home, defended the recent East German actions in Berlin as justified countermoves, but indicated that Moscow was not seeking a new crisis. Gro- myko warned, however, that fu- ture developments would depend on the West. The second round of Khru- shchev-Macmillan discussions apparently covered the same ground. According to press re- ports quoting Soviet diplomats, Khrushchev refused to agree that disarmament discussions could be resumed in the ten-nation PART I OF IMMEDIATE INTEREST Page 2 of g Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET '+ CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 committee, and stressed that Mos- cow is not prepared to nego- tiate with the United States un- til a new administration takes office. UN Afro-Asian Bloc Both East and West are com- peting for the support of the UN's 45-member Afro-Asian bloc, which includes countries allied to the United States by treaties as well as those seemingly fol- lowing the Soviet line. There is also a rivalry among members of the bloc itself for recogni- tion as its principal spokesman and leader. President Tito of Yugoslavia probably still hopes to recruit members of this loose- ly knit group into his "third -force." Nehru, Sukarno, Nasir, and Nkrumab of Gana also have presented themselves as poten- tial leaders of the group. Dele- gates from most of the Asian, African, and Arab members have stressed their bloc's potential for mediation between the major rival camps. The addition of 16 new states--15 from Africa plus Cyprus--has made the Afro-Asian bloc potentially the largest voting group in the General As- sembly. Even if a strong lead- er should emerge, dissensions within the group and the wide disparity of culture and polit- ical maturity among its members will probably continue to prevent a great degree of cohesiveness. The Asian-African bloc ex- hibits considerable unanimity on the subject of anticolonial- ism, and Khrushchev's emphasis on this issue has probably had strong emotional appeal to the group as a whole. At a 29 September meeting of the bloc, Krishna Menon of India led an attack against Portugal's candidacy for the Western European seat on the Security Council which is to be vacated by Italy at the end of the year. While recognizing the dangers of throwing the con- ventional system of allocating elective seats on the Security Council into "disequilibrium" by not supporting the Western European choice for the seat, several Asian-African members insist that Portugal, the major remaining "symbol of colonial- ism," cannot be allowed to rule on international issues, par- ticularly as related to Africa, by virtue of a seat on the UN Security Council. Portugal has been under attack ever since it joined the UN in 1955 for its refusal to be bound by the UN Charter pro- vision requiring members to submit yearly reports on their non-self-governing territories. The Portuguese maintain they have no such territories, that all their possessions are in- tegral parts of Portugal itself. Since the'balloting for the of- fice is secret, and strong op- position from the Afro-Asians is developing rapidly, Lisbon's claim to have commitments from 62 nations is doubtful, and the Salazar regime itself has re- cently been showing consider- able apprehension about its chances. Opposition to Portugal might result in the emergence of another candidate for the seat; Yugoslavia, Iceland, Austria, and Finland have been suggested. With the UAR ex- pected to get the Middle East seat, the possibility that the Western European seat might be occupied by a member not closely allied to the West will make it difficult to ensure the West SECRET PART I OF IMMEDIATE INTEREST Page 3 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET '~ CURRENT INTELLIGENCE WEEKLY SUMMARY the seven affirmative votes nec- essary to pass a council resolu- tion. UN Secretariat Hammarskjold, in order to keep the support of the smaller nations in his fight with the Soviet bloc, will be under in- creasing pressure to revamp the upper echelons of the UN Secre- tariat. The preponderance of American. and Western European nationals in the Secretariat? although a direct result of the unavailability of qualified ap- plicants from other areas at the time of the founding of the UN--has long been a grievance to members of the Afro-Asian bloc, Nkrumah's proposal of 30 September urging the creation of an advisory group of under secretaries representing the various power groupings probably would have the support of many Afro-Asians. Most seem to agree that the USSR's suggestion to create a triumvirate to replace the secretary general is unreal- istic since it would require an amendment to the UN Charter. Prime Minister Nehru, in reject- ing the Soviet recommendation, nevertheless agreed that the policy-making level of the Sec- retariat should take account of the various UN groupings. The British UN delegation believes that the Afro--Asians would be susceptible to the argu- ment that the USSR must be given some concession to its point of view and would regard Nkrumah's proposal as the obvious solu- tion. The British delegation views Nkrumah's proposal with the alarm because it would per- mit the Russians to gain either positive direction of or at least negative control over the Secretariat's operations and because it would introduce political considerations on a level just under the secretary gen- eral. The government crisis in Leopoldville continues. Lumumba is still at the premier's offi- cial residence guarded by UN troops and has ventured outside on only two occasions recently. President Kasavubu has made few public appearances, and Colonel Mobutu has remained mostly in Camp Leopold. The recently in- stalled Commission of Tebhnicians is functioning but has yet to come to grips with the Congo's administrative problems. Lumumba's position in his political stronghold of Orien- tale Province appears to be cracking. On 5 October, Mobutu arrested two leading Lumumba supporters there without op- position. the ex- 25X1 premier's hold over the local political and military organiza- tion is weakening because of poor leadership and lack of funds. In addition, Lumumba ap- pears to have lost the support of many members of the delega- tion to the National Assembly from Orientale Province--a loss which may make it impossible for him to obtain an assembly ma- jority. The defections fol- lowed Colonel Mobutu's revela- tion of Lumumba's appeal for Chinese Communist aid as well as his attacks on the United SECRET PART I OF IMMEDIATE INTEREST Page 4 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY Nations. Peiping law~ SECRET The apparent erosion of support for Lumumba will make it more difficult for his Afri- was willing to furnish consider- able financial support--perhaps as high as $2,500,000 --but considered it inappropriate 1 (,)to,,.. send military vol- unteers. CONGO REPUBLIC Lumumba's appar- ent loss of legisla- tive support may in- fluence Colonel Mobu- tu 4,:o shelve the pro- jected round-table conference of polit- ical leaders in favor of a direct appeal to Parliament to clarify the political situa- tion. Mobutu, char- acterized recently by the American ambassa- dor as extremely nerv- ous and fearful of assassination, has been putting considerable faith in the round- table as a way of iso- lating. Lumumba. Mo- butu_________ is ready to mpose his will" on the conferees if neces- sary. However, in view of Lu- mumba's reported loss of legis- lative influence and Mobutu's disgust with the present impasse, he may open Parliament and let the politicians fight it out themselves. The major Congo factions have hedged their attendance with such conditions that a meaning- ful conference has become un- likely. Lumumba is willing to attend only if he is recognized as premier, a demand unaccept- able to Kasavubu and Ileo. Kasai secessionist leader Kalonji wants the conference held in a neutral locale--such as Pointe Noire in the neighboring Republic of Congo. Katanga leader Tshombd would probably not attend under any condition'. On 5 October, he refused to receive a delegation from Colonel Mobutu. Loke LopOId H Cogu,ilhatville Lu uabourg l~Lupule sabethville - ft. FEDERATION OF RHODESIA AND NYASALAND can allies--particularly the UAR, Ghana, and Guinea--to re- store him to power. The Moroccan representa- tives in L' 0opoldville are re- ported vigorously championing Lumumba, and Moroccan General Kettani, deputy commander of UN troops in the Congo, has been under pressure from them to bring Mobutu over to unqualified support of Lumumba. Several other African nations, partic- ularly Liberia and Ethiopia, are opposed to the activities of Ghana, Guinea, and the UAR in the Congo. The activities of Soviet diplomatic personnel suggest that the USSRis % marking, time until I. the, ~ Como sit- uation clarifies.,.- Diplomat-ic personnel evacuated from SECRET PART I OF IMMEDIATE INTEREST Page 5 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 the Congo in mid-September are reported to be in Guinea "un- der wraps," although the for- mer ambassador to the Congo is in Accra. Ambassador Thompson on 4 October reported a rumor cir- culating in Moscow that both the chief and deputy chief of the African Section of the So- viet Foreign Ministry have been transferred, presumably for mis- calculating the Congo situation. A Pravda article of 30 Septem- berr ?er(rred to the "acting chief of the African Section." On 4 October the UN began a $500,000 public works pro- gram to combat the imminent threat of widespread disorders arising from growing unemploy- ment, A $5,000,000 public works program has been shelved for weeks because the UN feared misapplication of relief funds by Congolese officials. The Congo's economic rehabilita- tion, it is estimated, will cost $100,000,000 during this calendar year, excluding de- velopmental projects necessary to avoid economic stagnation. Meanwhile the health serv- ice threatens to break down. Outbreaks of smallpox and bubonic plague have already necessitated emergency UN action. UN offi- cials fear that Leopoldville's water supply will become con- taminated. Much of the difficulty arises from the inability of the Congolese administration to take necessary actions--even that of merely signing UN-pre- pared documents. THE SITUATION IN LAOS Premier Souvanna Phouma appears to be gaining the upper hand in his struggle with Gen- eral Phoumi's Savannakhet Rev- olutionary Committee. His order dismissing Phoumi and 26 other officers from the army, his an- nounced refusal to negotiate with Phoumi, and his insistence that Phoumi pledge his loyalty to the legal government all re- flect Souvanna's growing confi- dence. The premier planned to go to Luang Prabang on 6 Octo- ber, ostensibly for the first of several consultations King Savang will have with various Laotian leaders with a view to- ward formation of a new govern- ment of national unity embracing both the Vientiane and Savanna- khet camps. Souvanna asked his supporters to organize a popular demonstra- tion timed to coincide with his visit to Luang Prabang provides another indication that he may now feel strong enough to avoid a compromise with Savannakhet. Such a demonstration would tend to dissuade the King from ask- ing 'for Souvanna's resigna- tion. Phoumi's headquarters in Savannakhet claims that Captain Kong Le's paratroopers, alleged- ly supported by Pathet Lao guerrilla units, have resumed their offensive against Phoumi's forces southeast of Pak Sane in violation of the verbal cease- fire agreement reached in Luang SECRET PART I nr TMMFTITATF TNTFRFST Page 6 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Awo SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY C H I N A A ~?,-0-`5N VANE ^. k San NE_ Minister of Information Quinim Pho.lsena. His = influence may be some- what offset by Gen- eral Ouane's member- INDONESIA Prabang on 28 September. In- dependent confirmation of this allegation is lacking, but Kong Le on several occasions re- cently has reiterated his boast that he could easily take Savan- nakhet. At a leftist youth rally in Vientiane on 4 October, the crowd urged Kong Le to press on against Phoumi."S' troops. While General Ouane, the armed forces commander in Vientiane, is probably sincere in his prom- ises to Phoumi to stop fighting, it is doubtful that he is in a position to prevent Kong Le from taking independent action. The Souvanna government and the Communist Pathet Lao meanwhile appear to be moving quickly to- ward negotiations for settlement of the year-old conflict between their military forces. Both sides have appointed dele- gations for at least preliminary talks, and formal negotiations may begin in a few days. The Pathet Lao delegation is composed of three mem- bers of the Communist core of the movement, while the government delegation is headed by an extreme leftist, The Pathet Lao will be in a strong bargaining position if negotiations are held at this time, because of its con- trol of Sam Neua Province. The 1,000-man pro-Phoumi garrison which abandoned Sam Neua town on 28 September subsequently surrendered to the Pathet Lao, leaving only a few of Kong Le's paratroopers as a taken of the government's presence in the province. Two cabinet ministers Souvanna sent to Sam Neua to investigate the situation re- portedly were turned back by the local Pathet Lao commanders, who claimed they had no authori- ty to negotiate with the royal government envoys. According to press reports, the Pathet Lao SECRET PART I OF IMMEDIATE INTEREST PAI.P'P 7 of 8;,.. Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 radio later announced that no government administrators would be permitted to come to Sam Neua until negotiations for an over-all settlement had been held. There are indications that the Pathet Lao has sent addition- al personnel into neighboring Phong Saly Province. Although little fighting has been reported there, the insurgents may be try- ing to create a position of strength in .that,. area in anticipation of the forthcoming talks. The Pathet Lao used Phong Saly and Sam Neua as their trump cards in the negotiations which culminated In the integration agreements of 1957 and the subsequent formation of a coalition; government. The King has approved the proposal for establishing dip- lomatic relations between Laos and the USSR, thus completing the procedures required under the constitution for entering into relations with another state. Under present plans, the Soviet ambassador to Cambodia will be accredited'to Laos-and the Lao- tian ambassador to France will be accredited to the USSR. Hanoi has hailed the fall of Sam Neua as a victory for the Laotian people. Pathet Lao operations in northern Laos have probably been supported by Hanoi, but there is no evidence to support rumors that North Vietnamese troops are in Laos. While it may be providing Lao- tian Communists with training and provisioning depots across the border in North Vietnam, Hanoi probably would be reluc- tant to become more overtly in- volved at present for fear of precipitating pro-Western in- tervention at a time when Hanoi most likely feels that the Laotian situation is favorable for the Pathet Lao. The Soviet counselor in Peiping recently told a British visitor that Peiping did not intend to intervene in Laos, but if the Chinese should de- cide to send troops to counter a United Nations move into Laos, the USSR would support Peiping even to the extent of sending Soviet troops. The US consul general in Hong Kong Points out that the Soviet counselor's statement is indicative of the impression Moscow wants conveyed to the West. Moscow propaganda continues to show concern that the UN or Laos' pro-Western neighbors might intervene and has stressed the gravity of the Laotian situation in an effort to prevent such intervention. Moscow radio on 30 September called for the United States to stop its interference in Laotian internal affairs and 25X1 accused Thailand of planning a joint attack with the! United States against Laos. SECRET PART I OF IMMEDI ~T INTEItr ST Page 8 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY NOTES AND COMMENTS Less than three months after the bitter confrontation of the Soviet and the Chinese Communist parties last June at Bucharest, which increased the already rapid pace of deteri- oration in their relations, the Soviet Union evidently sent a high-level delegation to Pei- ping for still another attempt to reach a mutually satisfac- tory position. The Soviet party may have felt that its efforts of the preceding two months to marshal support for its own views and thus isolate the Chinese within the world Communist movement would induce the Chinese to adopt positions closer to those of the Soviet Union. Recent Chinese state- ments suggest, however, that no progress toward reconcilia- tion has been made. Ambassador Thompson reported on 27 September that a rumor was circulating in Moscow that Mikoyan and Suslov were visit- ing China. A delegation of this stat- ure, including Suslov, the Soviet Union's top ideologist, would be empowered to conduct authoritative negotiations with the Chinese--and to make some adjustment in the Soviet positions--in an effort to bring their views closer to- gether in order that the meeting of Communist parties in Moscow in November not result in the same impasse as the Bucharest meeting. In addition, the delega- tion may have been sent to China to determine if a meeting of Chinese leaders with Khrushchev during his planned visit to North Korea in October would be possible and fruitful. Recent Chinese statements suggest that this latest attempt at reconciliation failed. Dur- ing the period when the talks were presumably under way, Chi- nese treatment of the issues in 'dispute was pitched in a low key. On 29 September, how- ever, the Chinese party central committee, in a commentary on a new volume of Mao Tse-tung's works, issued its most substan- tial reaffirmation since the Bucharest meeting of several of the most important Chinese positions in the dispute. The commentary warns against "illusions hbout imperialism," SECRET PART II NOTES AND COMMENTS Page 1 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 cites past Western peace "tricks," insists that peace can be achieved only through struggle, rebukes those who overestimate the strength of the enemy and underestimate the strength of the revolution- ary forces, and reiterates that imperialism is a "paper tiger." The commentary concludes that the volume is of "tremendous significance" for the present situation and will become a powerful weapon in "intensify- ing the struggle against im- perialism and modern revision- ism"--the latter phrase one which the Chinese often use to describe Soviet policy. In :reaffirming that Mao's propositions were successful in the Chinese revolution, the Chinese party appears to be asserting that it has been right all along and that Soviet argu- ments have not persuaded it to change its views. The publi- cation of this commentary ap- pears to mark the opening of a new offensive by the Chinese in support of their views. A People's Daily editorial on 30 September picked up the same themes for exploitation. Red Flag, Communist China's theor- etical journal, which has been silent on international ques- tions since early June, devoted two articles of its current issueto demonstrating how Mao's theses properly fit the present situation. The American consul general in Hong Kong concludes that the editorials in Red Flag and other publications indicate that a massive Chinese campaign is now under way to show that Mao is the "creative Marxist" on international ques- tions and that his opponents are the ones divorced from reality. It seems likely that this hard line will be the Chinese party's position in any further bilateral talks with the Soviet or other parties prior to the November conclave, or at the Moscow meeting itself. Some in- dication of the strong line which the Soviet party is now likely to take in this meeting came in a public lecture on ideology in Moscow on 30 Septem- ber. The speaker said "he had to admit" that the Chinese were dogmatists because of their incorrect assessment of the world situation and, since their views definitely represent left- ist. deviation, they would re- quire self-criticism and ad- mission of error. Dealing with another cen- tral issue in the dispute, Army Major General Nikolay A. Talen- sky, a noted writer on Soviet military doctrine, has condemned the idea that war might be jus- tified if it meant the end of capitalism. In the magazine International' Life, Talensky said that after Ianother war, which "could not fail" to be a world war, "the earth's popu- lation would be cut in half, and it would be the most active and most cultured part of mankind that would disappear." He con- cluded that a mass surprise would not bring victory for the attacker because the re- taliation could still destroy all his vital centers. The article, which has been given added stature by a review by TASS, is a direct attack on the Chinese Communist attitude that the dangers of nuclear war have been overrated. Talensky is also in effect reiterating to the Chinese--who continue to clamor for Taiwan--that the concept of limited war is invalid because it would risk full- scale war. This is the most em- phatic major article on military theory to appear in the Soviet press since the Sino-Soviet dis- pute sharpened at the Bucharest SECRET PART II NOTES AND COMMENTS Page 2 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 conference, and indicates an effort to show in practical mil- itary terms why the coexistence line must be followed. The strain in Sino-Soviet relations was pointed up by the failure of any Communist coun- try, except Albania, to send a delegation to Peiping to take part in the 1 October anniver- sary celebrations. All the communiques of congratulations, a standard part of any such celebrations, were unenthusias- tic and routine, and none--with the exception of Albania and the Asian satellites--made a personal reference to Mao. In speeches and writings on the anniversary, the Chinese,.:with the support of the Albanians on one side, and the Soviet Union and the other bloc members on the other, while all paying con- ventional tribute to the need for bloc unity, displayed sharp contrasts in their assessments of the international situation. In addition to the support given Moscow on this occasion, the satellites have moved in other directions as well. In mid-September, the Polish cen- tral committee, the last of the East European central committees to discuss the results of the June Bucharest conference, is- sued a resolution which faith- fully mirrored the Soviet Un- ion's own. The Poles--as have some of the other Communist parties--sent a letter to Pei- ping disputing the Chinese po- sition on the inevitability of war and reaffirming the Soviet concept of peaceful coexistence. A shrill note of irrita- tion has begun to appear in the day-to-day contacts between the Chinese Communists and mem- bers of the rest of the Soviet bloc. Earlier reports that bloc diplomats were increas- ingly bitter over their treat- ment by the Chinese in Peiping has in part been substantiated by complaints made by the Pol- ish ambassador in mid-Septem- ber over restrictions placed by the Chinese on the movements of all diplomats. Despite the fact that the Chinese ambassador is the dean of the diplomatic corps in Prague and that rep- resentatives of all major na- tions gathered to see Czech leader Novotny and Polish boss Gomulka depart from Prague for the UN session on 18 September, the Chinese ambassador failed to appear. At the International Scien- tific Film Association meeting in Prague, which began on 16 September, the Chinese dele- gates refused to ride in the same bus with the Soviet dele- gation. The Soviet chairman of the meetings publicly condemned the Chinese when they arrived late for a meeting and recommend- ed that they emulate the conduct of the American delegates. Hong Kong distributors of Druzhba, the Sino-Soviet Friendship So- ciety magazine published in Mos- cow, learned on 3 October in answer to their earlier query that publication of the maga- zine has ended and that they would receive a refund for the unused portion of their subscrip- tions. A Soviet distributor in July had indicated that cessa- tion of the magazine was still an open question. SECRET PART IT NnTFS AND COMMENTS Page 3 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 _? SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY With the present unyield- ing attitudes evinced by both major parties, it is difficult to see how the planned confer- ence in Moscow can make much headway.. The Chinese, bolstered by the expression of support from the Albanians and the de- termined effort of Ho Chi Minh to remain neutral,:. may become even more adamant in hopes. of encouraging whatever under- currents of sympathy may exist in other parties. The USSR, faced with the possibility of additional defections from the ranks of its supporters, may feel it necessary to contain the Chinese by withdrawing some of the economic and military benefits it has bestowed on 25X1 them. A further deterioration in relations appears the most likely outcome. PEIPING CELEBRATES NATIONAL DAY The 11th anniversary of the founding of the Chinese Communist regime was celebrated on 1 October in a more subdued spirit than in previous years. Peiping had no outstanding eco- nomic achievements to announce; indeed, the principal speaker this year, Foreign Minister Chen Yi, dwelt on the effects of nat- ural disasters on this year's grain harvest. Statements on the domestic economic situation were mostly generalities to, the effect that things were going as well as could be expected, at least in industry. Chen Yi asserted that China was continuing its "leap forward," now in its third year, and expressed confidence that the major targets for industri- al production this year would be met. The regime has been unusu- ally reticent about industry's performance this year, but Chen did claim that output of iron and steel had increased about 40 percent, electric power about 45 percent, and coal about 25 percent by the end of August as compared with the same peri- od in 1959. Output of major industrial products is there- fore apparently proceeding at or near scheduled levels. Despite a massive campaign to enlist the help of "all the people," the nation's agriculture continues to founder. Comments on agriculture were confined to references to the "worst" nat- ural calamities since the re- gime came to power. People's Daily said in its National Day editorial that some 150,000,000 acres--about half the total grain area--had been affected by ca- lamities, and that one third of this area had sustained "seri- ous" losses. Peiping says drought has struck wide areas for the second straight year, adding that reservoirs through- out the nation are only about 40 percent full and that only 50 percent of this water can be used for irrigation. Independent weather data through late September reveal that crop weather, although bad, was not as bleak as the picture drawn by the regime. Drought is continuing in the North China plain and will hinder the plant- ing of the winter wheat crop; the late rice crop is several weeks behind schedule and could be damaged by an early frost. Industry is providing more in the way of material support for agriculture than ever before--120 percent more SECRET PART II NOTES AND COMMENTS Page 4 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 1%W SECRET W CURRENT INTELLIGENCE WEEKLY SUMMARY chemical fertilizer, 82 percent more insecticides, and 18 per- cent more. irrigation machinery were furnished in the first eight months of 1960 than in the comparable period last year-- but the gains here have not dispelled the regime's concern over crop prospects. The National Day cele- brations provided little fresh insight into the leadership situation in China. Most of the regime's top officials were in attendance in Peiping, and the absence of several others could be accounted for by the press of regional duties. Mao Tse-tung as head of the party and Liu Shao-chi as head of the government and heir apparent to Mao's party role jointly re- ceived the accolades of the more than 500,000 people who jammed Tienanmen Square, and the two leaders shared promi- nence in holiday newspapers, which featured their pictures. Chen Yun, at one time the re- gime's leading economic plan- ner whose activities now may be restricted by illness, oc- cupied a place on the rostrum among the top party leaders. Missing, however, were party Secretary General Teng Hsiao-ping and politburo member Peng Chen, the mayor of Peiping who traditionally opens the ceremonies. One or both of them may be involved in discussions with Soviet party officials. Former Defense Minister Peng Te-huai, apparently still in disgrace for resisting party leadership in the armed forces last year, was also absent. Peiping used its holiday propaganda, particularly to the neutralist states, to rebut crit- icism that China is belligerent and to make a show of "socialist unity," but the Chinese pre- occupation with militant struggle clearly showed through these surface themes. The absence of official delegations from any bloc countries except Albania underlined the stresses in the Sino-Soviet alliance. The traditional military parade was eliminated from the ceremonies, perhaps to help mod- erate the impression of Chinese bellicosity. To this end, the holiday propaganda also made much of the signing of the Sino- Burmese boundary treaty and of the activities of visiting Bur- mese Premier U Nu and the large cultural delegation which ac- companied him. (See article on page 2Q) This peace posture is not intended to suggest any lessen- ing of Chinese support for the "anti-imperialist forces." Anx- ious to demonstrate their support of the Algerian rebellion, the Chinese devoted considerable attention to Algerian rebel premier Ferhat Abbas, who was in Peiping for the celebrations. In the last three weeks, Albania has extended its sup- port of Chinese Communist po- sitions in the Sino-Soviet dis- pute, while China has supported Albania in the face of growing Soviet disapproval of the Tirana regime. The Albanian leaders have used the Chinese Communist Octo- ber anniversary celebrations as t:e occasion for an explicit re- affirmation of their support for Peiping's ideological positions in the dispute. Recent Albanian statements are the most SECRET PART II NOTES AND COMMENTS Page 5 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 outspoken of any that this coun- try--which has been out of step with Moscow on the Sino-Soviet dispute for over a year--has yet made. Speeches by Deputy Premier Abdyl Kellezi, the leader of the Albanian delegation to Peiping-- the only satellite delegation sent for the anniversary cele- brations--contain unusual praise for the Chinese Communist party, referring to the "correct line ...followed consistently by the glorious Chinese Communist party led by Comrade Mao Tse- tung," and averring that Albania will study the Chinese "experi- ence ." On 4 October, Kellezi stat- ed that the Chinese "have always marched forward along the cor- rect Marxist-Leninist line as delineated by the party and Com- rade Mao Tse-tung." The Chinese reply stated that Albanian- Chinese friendship was "moot intimate, eternal, and unbreak- able." Party First Secretary Enver Hoxha, speaking at a Chinese Embassy reception in Tirana, labeled the Chinese line a '"correct application in a creative manner" of Marxism- Leninisn--a contradiction to Moscow's position. Soviet pressure to force the Albanians to accept Moscow's line may be responsible for the "tense" internal situation re- ported by the Italian Legation in Tirana. Albanian leaders reportedly are "nervous" and bloc diplomats in Tirana unusually "agitated." The legation noted that the Soviet ambassador to Tirana returned to Moscow for consultations twice in late August. Moscow's efforts may have been reflected in the 9 September ouster of politburo member Liri Belishova and Central Auditing Commission chief Koco Tasbko, and the reported removal of Rrapo Dervishi as head of the Tirana city party organization. There have also been an unusual number of rumors cir- culating in Tirana about further personnel changes and about an abortive coup attempt. Soviet pressure and Tirana's "nervous- ness'" may also be behind the evident postponement of the par- ty's fourth congress, s lated for November. Specified precongress activities--including the pub- lication of the new economic plan--havenot been carried out. Soviet displeasure is clear- ly visible in the snubs of SECRET PART II NOTES AND COMMENTS Page 6 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 Albanians in recent weeks. Pravda failed to mention the ATGan.zans in its 7 September listing of Eastern European delegations to the UN General Assembly. Premier Shehu, who headed the Albanian contingent --Hoxha was the only Eastern European party leader whose country has UN membership that failed to attend--apparently got a chilly reception from other Eastern European delega- tions. TASS failed to mention him in reporting the reception on 27 September at the Czech UN mission headquarters in New York. According to Western press accounts, Shehu was pointedly ignored by Khru- shchev, who refused to shake hands ,with him. The reasons for Albania's support of China is its ideo- logical sympathy for the Chinese position and the similarity in its concern over the "external threat"--in the Albanian case, from Yugoslavia. That Albania has continued to lend its sup- port despite Soviet disapproval may be due to the apparently high degree of control Hoxha.has over the party, his receipt of support from China, and aware- ness of latent sympathy in other bloc countries for the Chinese position. The Soviet leaders prob- ably view Albania's continued defiance as a threat to their campaign to isolate Peiping and to their authority over Eastern Europe: ~ and can be expected to 25X1 make further moves to brin Albania into line. ITALIAN COMMUNISTS AND THE SING-SOVIET DISPUTE The Sino-Soviet dispute has rovived the' "hard-SOf t't !contro- versy that has long plagued Italy's Communist party (PCI) --the largest outside the So- viet bloc. Secretary General Togliatti can be expected to keep the party firmly orientat- ed toward Moscow, but oppo- sition elements may attempt to use the Sino-Soviet dispute to undercut the present party leaders. Provincial congresses reportedly will be held through out Italy this fall to discuss "peaceful coexistence between diverse systems and the non- inevitability of war." The Moscow-Peiping contro- versy has been having repercus- sions for over a year in the PCI. In the early stages of the dispute the party press was cautious in commenting about the ideological rift, apparently because it was not sure of the Soviet line. J At the January 1960 con- gress of the Italian party, a. number of the revolutionary- minded "old guard" were ejected from the directorate, and the "revisionists" achieved a SECRET PART II NOTES AND COMMENTS Page 7 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 majority in the central commit- tee. Togliatti and Giorgio Amendola, chief of the PCI's "organization commission," are believed to have engineered the removal of revolutionists di- recting party committees in Milan and Bologna, but were less successful in Turin, Genoa, and elsewhere. Leadership of most of the smaller federations --or local organizations--re- mained unchanged. On 25 July an intensive campaign to clarify "policy issues" was apparently begun. Meetings were reportedly held in all federations to discuss the main points of Khrushchev's speech at Bucharest criticizing the Chinese, and a series of articles translated from Rus- sian and Chinese was presented to illustrate the disagreement. On 3 August the party daily L'Unita broadly hinted that the hh inese Communists fall into an "extremist" category, and at about the same time the Com- munist journal Rinascita sum- marized the Soviet press with reference to the "full valid- ity of the policy of coexist] ence and of the line of the 20th congress." Fall. congresses at the provincial level are said to have been planned to show up the Chinese position as anachronistic and stress the "justice" of the Soviet stand. Furthermore, the Italian party is said to have been destroying thousands of pamphlets sent by the Chinese Embassy in Bern setting forth the Chinese thesis. The Chinese Communists are reported to have reacted by ad- vising the PCI not to send its usual delegation to this year's National Day celebration in Pei- ping. Giuliano Pajetta, head of the PCI's foreign section, has hinted that the Chinese may reduce or even cease their month- ly subsidy for Rome's Peiping- inspired "studies center for economic and cultural relations with China." For propaganda purposes, the PCI will probably play down the dispute, continuing; to ad- here to the line Pajetta took at a meeting in September at Rome of Communist provincial secre- taries when he dismissed the Moscow-Peiping rift as stemming from "certain misunderstandings, rather than an real diver en- cies." i TENSIONS OVER BERLIN Bonn's termination of its 1961 trade agreement with East Germany--announced on 30 Septem- ber in retaliation for Communist harassment of West Berlin--will probably result in no immediate stoppage of shipments, but it puts the Federal Republic in a legal position to take further action to restrict trade. Bonn SECRET PART I I Mflm'c A rm onuum- Tmo o Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 has made no decision on nego- tiating a new agreement with East Germany or on making any definite moves,,, against interzonal shipments during the remainder of 1960. At a cabi- net meeting on 30 September, the possibility was recognized that interzonal trade could continue after 31 December if the East Germans do nothing further to aggravate the po- litical situation, Bonn and West Berlin au- thorities are discussing a plan designed to strengthen West Berlin's position. Under this proposal, if a new trade pact is negotiated, all inter- zonal shipments would be routed through West Berlin, thereby making it difficult for the East Germans to tamper with Berlin access routes without blocking their own imports, including vital iron and steel from the Federal Republic. Bonn has already decided to set up a central Berlin clearing house for all interzonal trade that may continue after 31 December in order to eliminate individual dealings with East German firms. As a further move to bol- ster West Berlin, Chancellor Adenauer has asked the Western Allies to consider increasing their garrisons in Berlin be- cause the nearly 50,000 East Berliners and East Germans now working in West Berlin are capable of causing local dis- turbances. West German offi- cials have also publicly hinted that continued Communist encroachments in Berlin may af- fect Soviet - West German ne- gotiations scheduled to begin on 17 October for the 1961 trade agreement. The 1960 protocol called for trade of $180,000,000 each way. West Germany is now seeking assurance from the Western Allies that they will not take advantage of the cancellation of the trade arrangement to provide the East Germans with goods that may be em- bargoed. Representatives of the Allies have expressed varying degrees of doubt as to the ap- propriateness and timing of eco- nomic countermeasures to East German travel restrictions and want a full study made of the consequences and effectiveness before imposing any economic sanctions. However, they have stated their readiness to co- operate in implementing any agreed and fully considered measures. Two West Berlin meetings are likely to draw Communist propaganda fire. One is the anniversary celebration on 24 October of the dedication of the "Freedom Bell" ten years ago; leading German and Western dignitaries will attend. The other meeting, for which no date has been set, will be held by the All-German Affairs Com- mittee of the Bundestag, which has met many times before in West Berlin without arousing Communist attacks. East German party boss Ulbyicht's statement before the People's Chamber on 4 October, presented in reasonable lan- guage, strongly asserts his re- gime's "sovereignty" over East Berlin, and demands establish- ment of a demilitarized "free city" of West Berlin. It gives no indication, however, of any countermeasures to Bonn's can- cellation of the trade agree- ment. Ulbricht offered to con- duct trade talks with the West Germans, but he imposed precon- ditions which would be unac- ceptable to Bonn, including re- pudiation of the "Hallstein SECRET PART II vrnm'rc in C'C1MM1'MPC PisrP 9 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 doctrine" by which West Germany breaks diplomatic relations with any nonbloc country which accords diplomatic recognition to East Germany. Ulbricht`also set the line for bloc propaganda by charging that Bonn's action "would sever the last link between the two German states" and would indi- cate that the West Germans are not interested in working for German reunification. Ulbricht's cautious atti- tude may indicate that any de- cision on specific counter- measures must come from Khru- shchev, who currently seems preoccupied with the affairs of the UN General Assembly in New York. CUBAN DEVELOPMENTS Fidel Castro's experience at the United Nations has ap- parently whetted his appetite for international politics and strengthened his view of him- self as a leader of the people, not only of Latin America, but of all underdeveloped countries, in their "struggle against im- perialism."' The virtually un- qualified identification of Cuba's foreign policy with that of the USSR, evident in Castro's UN address, shows signs of be- ing played down and the theme of Cuba's association with world neutralist leaders stressed. On his return to Cuba, Castro declared that Ghana's Nkrumah may visit Cuba late this Year and Nasir may visit.next March. The Castro regime, which has given increasing propaganda support to the cause of the Algerian rebels, is apparently to act as host later this month for a conference sponsored by the "Algerian Aid Committee" based in Morocco. The committee member representing the Com- munists' World Federation of Trade Unions had urged Havana as the site of the conference. On his departure from New York on 28 September, Castro declared that he expected to return to the United Nations in a few weeks, and New York hotel managers reported on 3 October that Cubans had been seeking reservations for a party headed by Fidel or Raul Castro begin- ning 23 October. Castro told a Cuban television audience on 30 September that "we are think- ing of presenting a:motion in the United Nations against racial segregation in the United States." Cuba's withdrawal on 4 Oc- tober of its candidacy for a UN Security Council seat;, which it had little hope of winning, may have been in return for a promise by some Latin American delega- tions for support for a council seat next year. Cuban propaganda media con- tinue their almost hysterical attacks on the United States, and some proclaim that the embassy's advice tp American citizens to leave Cuba fore- shadows armed intervention by the United States. The $100,- 000,000 US Government - owned Nicaro nickel plant was seized by the workers' militi^ on 1 October following the delivery of a US note announcing closure of the plant because of con- fiscatory Cuban taxes. Castro responded publicly, saying,"They spend a billion dollars on es- pionage and 40 billion on arms, but now, after exploiting our mineral resources for many years, they object to paying a 25- percent tax.... Let the plant be closed." SECRET PART II NOTES AND COMMENTS Page 10 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 SECRET Cuban Government agencies appear fearful of the imposi- tion of controls on exports to Cuba. According to rumors prev- alent in Havana, they are form- ing companies in the United States to purchase scarce items for indirect shipment to Cuba. A Bulgarian trade delega- tion, headed by the first dep- uty foreign trade minister, ar- rived in Cuba on 30 September. The expected trade agreement will be the seventh concluded by Cuba this year with bloc countries. The second major shipment of military equipment from the Soviet Union recently arrived, and further shipments are expected. Che Guevara is to visit Moscow in early November for the anniversary celebrations of the Soviet revolution, and Carlos Franqui, pro-Communist director of the government's newspaper, and several other newsmen left on 29 September to study Soviet journalism. Numerous other Cubans now are visiting Moscow, Peiping, and satellite capitals. At the same 'time, two East German and two Czech professors arrived in Cuba in late September as guests of the Cuban Government. Chou En-lai's message to Castro in late September, on the occasion of the formal es- tablishment of diplomatic re- lations between Havana and Pei- ping, promised "every possible support and assistance to the Cuban people, in case of need." The "International Volun- tary Labor Brigade," which came to Cuba under Communist-front sponsorship last July to work on a Cuban school center, left on 1 October after a send-off featuring an address by Guevara. Guevara told the youths, who were said to have represented 43 countries, that "we of this generation will see the world liberated. completely, even if we have to undergo the greatest of sufferings." On the domestic scene, the armed :forces and militia are evidently still suffering casualties in the regime's ef- forts to suppress guerrilla activity in the Escambray Moun- tains, Press sources report the launching on 4 October of an all-out government drive to rout-the guerrillas and the capture by government forces of an arms cache destined for the rebels which had been dropped by an aircraft from an unknown destination. On 2 October the Catholic archbishop of Santiago, in Oriente Province, issued a pas- toral letter constituting the strongest anti-Communist state- ment yet made by any church of- f icial in Cuba. 25X1 although the church is weak in Cuba, it is in a psychologically favorable posi- tion in Oriente to head such a campaign because many priests there participated in the fight against the Batista dictator- ship, and the archbishop himself is credited with saving Fidel Castro's life in 1953 after he had been captured by the Batista forces. SECRET PART I I NnTrR ANTI rnmmvwT Dn o,rs 11 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET vftw CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 NEW PARTY STRUCTURE IN THE SOVIET ARMED FORCES A new decree on the struc- ture of party organizations in the Soviet military establish- ment, recently adopted by the party central committee, is apparently the first major step in implementing a program for expanding the regular party structure in the army and navy --a program discussed and ap- proved at the All-Army Confer- ence of Secretaries of Primary Party Organizations held in Moscow from 11 to 14 May. The text of the decree has not been published, but commentary on it indicates that its provisions follow closely the proposals advanced to the conference by the head of the Army and Navy's Political Directorate, Army General Golikov. No mention has been made of the proposal to substitute "elective" party organs for political departments in the headquarters of military dis- tricts, groups of forces, fleets, and military schools, nor of the earlier proposal to replace the battalion dep- uty commander for-political affairs with full-time party secretaries. Instead, the po- litical departments are charged with organizing the preparatory work for the transition to the new system, with supervising the new and largely inexperi- enced party secretaries, and with "teaching" the battalion commanders how to work with the party organization. Basic party units are to be established at the battalion level instead of at the regimen- tal level as heretofore, and the staffs of the regimental party organizations are to be expanded to enable the regimental unit to exercise a supervisory role over the subordinate party units. In addition, subunits of the battalion party organizations can be established in companies or batteries, operating some- what like shop subdivisions of a factory party organization. The ultimate aim of this reorganization apparently is to replace the deputy military commanders for political affairs and the political departments in military units with the type of party organization found in civilian life. The decree creates conditions favorable for increasing the influence of the party organizations, but further steps will probably de- pend on the success the new or- 25X1 ganizations have in looking after party interests in the military. USSR INTENSIFIES CAMPAIGN AGAINST IDLERS Moscow has stepped up its drive against "parasites" and idlers, and efforts are being made to generate widespread public indignation against all forms of undesirable behavior. The campaign has spread into all social levels, even the SECRET PART II NOTES AND COMMENTS Page 12 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY upper levels of the bureaucracy, and includes particularly vehe- ment attacks on the tendency to acquire private property. Par- asitism in all its varieties is characterized as the most serious vice of present-day Soviet society. The renewed offensive was opened in late August at a con- ference of representatives of the police, legal officials, and youth organizations; the meeting concluded that "a piti- less fight against parasites and loafers is a matter of urgency." The police and courts were said to be in no position to tackle the problem unaided. Every member of the general public was urged to join the fight. Khrushchev has lent his per- sonal influence to the campaign by invoking Lenin's dictum that whoever refuses to work does not eat and by stating on 31 August, "Anybody who thinks he can live well and work badly is a parasite." What constitutes a parasite was further spelled out last month at the all-union confer- ence on ideological problems, where heavy blows were demanded against those who display "pri- vate ownership tendencies, in- difference to politics .,,na- tionalism, religious prejudices, and other forms of bourgeois ideology," In past campaigns of this sort, the primary target has been those who refuse to en- gage in "socially useful work" and prefer to make a living by black-marketing, profiteering, or running unauthorized "serv- ice" enterprises such as tailor shops. While miscreants of this kind are again under heavy fire, the central themes of this year's propaganda reflect the Kremlin's concern over the markedly increased tendency of the people to acquire material wealth. Young people and en- trenched party and government bureaucrats are emerging as ma- jor offenders; the principal cause seems to be the slowly growing prosperity of the in- dividual citizen. In at least one case, it had been explicitly stated that the prosperity of youth can lead to individualism and "leaving the collective." Some property- holding "parasites" have even been accused of quoting Darwin to the effect that freedom of spirit and any kind of creative activity presuppose the existence of private property. While such manifestations are officially attributed to remnants of bour- geois ideology, certain press writers have begun to wonder-- at least rhetorically--how it happens that a petit-bourgeois outlook can grow in a socialist society. Parasites among Soviet of- ficials present an entirely dif- ferent problem. The press has severely attacked those who seem intent on "entering Communism only on condition that they can take along their summer houses, cars, pensions, and bank ac- counts.- At the same time, there have been hints that it is difficult to answer the con- tention of these officials that they have a right to enjoy the fruits of their labors on be- half of the Soviet cause, In late September the Georgian Republic passed an antiparasite law similar to those adopted in most other Soviet republics during the past three years. Under its provisions, offenders can be sentenced to exile in remote areas and to periods of "cor- rective labor" ranging from six months to two years. Heavy press attention to the problem SECRET PART II NOTES AND COMMENTS Page 13 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY suggests that the way is being prepared for the adoption of a similar law in the Russian Re- public, largest of the Soviet republics. Otherwise, the cam- paign has concentrated on threats of more severe action against parasites and on ap- peals for increasing ideolog- ical indoctrination of the masses in the proper Communist outlook. Despite the bitterness of the attacks on private property tendencies, no ready solution has been found, and the regime appears unable to overcome the increasingly bourgeois outlook of the people. The Algerian rebels are intensifying their efforts both in New York and in various West- ern capitals to secure backing for a UN-conducted referendum to settle Algeria's political future. At the same time, Morocco and Tunisia are try- ing to elicit UN intervention in Algeria on the pattern of the UN operation in the Congo. The rebels apparently are encouraged by the two-hour meeting on 2 October of the rebel delegation in New York with Khrushchev and by the fan- fare surrounding the reception of rebel premier Ferhat Abbas during his two-day stopover in Moscow en route to Peiping. Khrushchev's public statement that the Algerian government "exists" and that French- Algerian talks at Melun last June were De Gaulle's "tacit recognition" of the rebel regime indicates a shift in Soviet policy from the cautious neutral position adopted in mid- 1959 to a more open pro-rebel stand. Rebel claims that the Soviet UN delegation offered official recognition to the provisional Algerian government probably are exaggerated, how- ever. Although Soviet leaders appear less concerned now than in the past about avoiding offense to France, the USSR and European satellites seem likely to continue to with- hold diplomatic recognition at least until after Khrushchev's expected call for new East- West talks on Berlin and Germany early next year. Abbas' ostentatious visit to Peiping probably was designed primarily to impress Western governments that the rebels were in earnest when they stated they would accept aid "wherever it can be found." He left there on 6 October after a week's stay, with promises of "material and moral support in the Algerian war for independence." Although he may have secured additional financial assistance, new arms commitments from Communist China seem unlikely, inasmuch as previous armament commitments apparently have not been delivered. Tunisia and Morocco appear to be vying with each other to support rebel efforts to involve the UN more directly in an Algerian solution, andthey'look on the UN's operations in the Congo as a useful precedent. SECRET PART II NnPFR ANn rnmmpNT Pq.AI 14 of 27 Approved For Release 2007/10/23: CIA-RDP79-00927A002900060001-5 Approved For Release 2007/10/23: CIA-RDP79-00927AO02900060001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 October 1960 Bourguiba has let it be known that he is weighing the merits of an Algerian-proposed Tunisian-Algerian "union" to which he referred cryptically on 3 September e gerza.ns, on ie o er hand, are said to envisage implementation of the union as a means to provoke French military retaliation against Tunisia, which could then demand UN intervention. Morocco's acting deputy premier, Abdelkhalek- Torres, has threatened to order Moroccan armed forces to retaliate, should the French.troops based in Algeria continue to violate Moroccan territory. Two appar- ently minor incidents in late September have been widely ex- ploited by the Moroccan. press. Such a counterattack, which is said to have the approval of the King, who is 'Vacationing in Switzerland, would also be de- signed to justify a call for UN intervention, Meanwhile, in France, the predominantly Moslem study com- missions, which were apparently established with an eye to the forthcoming UN debate, are faith- fully, but with questionable utility, studying local Algerian problems. The government also has begun to crack down on both leftist and rightist domestic criticism of its Algerian policy. It appears unlikely that De Gaulle will make any signifi- cant new move before the UN de- bate--now expected in mid or late November--although his Octo- ber visits to the provinces and possibly also to Algeria will provide him opportunities to speak out on the problem. Re- cent slighting renarks regard- ing the UN by De Gaulle and other top French officials sug- gest preparation of the public for an adverse UN resolution on