CURRENT INTELLIGENCE WEEKLY SUMMARY

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A003300110001-5
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
49
Document Creation Date: 
December 16, 2016
Document Release Date: 
November 18, 2004
Sequence Number: 
1
Case Number: 
Publication Date: 
September 28, 1961
Content Type: 
SUMMARY
File: 
AttachmentSize
PDF icon CIA-RDP79-00927A003300110001-5.pdf3.87 MB
Body: 
Approved For Release 2005/04/22 : CIA-RDP79-00927A003300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY COPY NO. 6 OCR NO. 0299/61 28 September 1961 CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE DOCUMENT NO. NO CHANGE IN CLASS. ^ ^ DECLASSIFIED CLASS. G"sjziiiaza TO, TS S ! (q 1b NEXT R V W BATE: AUTH: HI 70.2 DATE: ~}0 ~u+nt ~a R[TEE;?~EO: 25X1 25X1 X1 ARMY, D, PPP?d Mggscr2V l '12PRi1~1-Ot*79-00927A00 30011000 5 Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 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 2005/04/22 : CIA-RDP79-00927AO03300110001-5 ONFiDENTiAL Approved For RTlease 2005/04/22 - 79-00927A300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 28 September 1961 T H E W E E K I N B R I E F EAST-WEST RELATIONS . . . . . . . . . . . . . . . . . . . Page The Soviet Union's line on Germany and the Berlin problem continues to combine an attitude of reasonable- ness on details and procedures with an unyielding stand on certain basic issues. Khrushchev, in his talk with Belgian Foreign Minister Spaak on 19 September, appeared more conciliatory and flexible than at any time since the Vienna meeting with President Kennedy. Gromyko has not yet reflected this line in his talks with Secretary Rusk or with Lord Home, and Moscow has made further moves in the military sphere to impress the West with bloc mili- tary strength and combat readiness. Exercises of the Warsaw Pact forces have been announced for October and November. At the UN, the Soviets have continued to ad- vocate the troika, but there are increasing signs that the bloc will eventually compromise on an arrangement for an interim appointment to fill out Hammarskjold's term, plus appointment of three under secretaries to act as advisers. 25X1 CONGO . . . . . . . . . . . . . . . . . . . . . . . . . . Page UN authorities hope that the cease-fire will lead to talks between Leopoldville and Katanga representatives for a political solution in the Congo. Strong antipathy be- tween the two groups, however, makes an early reconcilia- tion unlikely. The cease-fire itself is tenuous, with both the UN and Katangan forces attempting to improve their military positions. Fears that the Congolese Army may invade Katanga and unrest among the anti-Tshombu Baluba refugees camped near the city add to the tension in Elisabethville. 25X1 LAOS . . . . . . . . . . . . . . . . . . Page 7 A new meeting of Boun Oum, Souvanna, and Souphannou- vong has been agreed upon for early October at Hin Heup, 50 miles north of Vientiane. General Phoumi, while ap- pearing more receptive toward Souvanna as premier, ex- pects negotiations on the composition of a coalition gov- ernment to be protracted, since he intends to make a major issue of which individuals are "truly neutral." Informal negotiations at Geneva have resulted in agreement on sev- eral minor points. The military situation has been rela- tively quiet. Communist forces continue minor attacks in scattered areas, but these appear to be primarily in re- sponse to Laotian Army security operations and Meo uer- rilla activity. .. SOU TH VIETNAM . . . . . . . . . . . . ... . . . . .. .. Page 8 The increase in Communist guerrilla activity through- out South Vietnam this month may foreshadow an intensified military effort by the Viet Cong. Operations by battalion- size units in the central highlands and the northern part Approved For Release 2C 0FfDMAt27A003300110001-5 BRIEFS 25X1 Approved Foeleas~05/0~/ZZ :'CIA-R6P700927A003300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 28 September 1961 25X1 of South Vietnam indicate the increased ease with which guerrillas are being infiltrated from North Vi tnam via Laos. 25X1 FRANCE , . . . . , . . . . . a e . . . , . , . , . 4 . Page 10 De Gaulle, who is seeking a "national unity" agree- ment in his effort to reach an Algerian settlement by the end of the year, has reduced the likelihood of an early government crisis by announcing that he is about to re- nounce his special emergency powers and by his efforts to re-establish contacts with party leaders. Neverthe- less, the public is becoming impatient over the delay in reaching an Algerian settlement, labor is restive,over wages, and new farm demonstrations may occur when the government's agricultural bill is debated shortly after parliament reconvenes on 3 October. 25X1 ALGERIA . . . . . . . . . . . . . . . . . . . . . . . . . Page 11 25X1 Moslems vxere killed. 25X1 The bitterness of European settlers in Algeria, which is being exploited by the rightist Secret Arm Organization A has r ea h d a point where I nother coup attempt is likely unless the Ums ea ers are captured soon. The OAS has called for a series of demonstrations against De Gaulle, which could provoke Moslem counterdemonstra- tions. De Gaulle has described the situation as'"explo- sive," and said he would not be surprised to see new disorders in which "lar a numbers" of Europeans and AFGHANISTAN-PAKISTAN , , . . . , . . . o o . . . . e . Page 14 Neither Afghanistan nor Pakistan has shown a willing- ness to make concessions to help resolve the present im- passe. Both countries have continued to strengthen their military positions along the border, but the intent on both sides appears to be defensive. Afghanistan insists that it will not use the Pakistani route for foreign trade until the Pushtoonistan dispute is settled. The result- ing disruption of supply lines threatens to force the termination of construction work on major American aid projects in the near future. 25X1 GHANA . . . . . . . . . . . . . . . . . . . . . . . . . . Page 15 Nkrumah's abrupt removal last week of British offi- cers from command positions in Ghana's military forces underscores his progressive estrangement from the West. Nkrumah and his influential left-wing advisers appear more eager than ever to accept aid from the Sino-Soviet bloc following Nkrumah's recent extended visit to nine bloc comt.?ieas, The expected departure of most of the British officers will remove an important stabilizing factor in Ghana and may encourage some discontented native officers to make common cause with disaffected political elements. ONFIDENTIAL ii Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 BRIEFS 25X1 CONF1DENT1A1 Approved For elease 2005/0 ~ ,7q00927A003300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 28 September 1961 BLOC ECONOMIC OVERTURES TO BRAZZAVILLE GROUP . . . . . . . Page 16 The Soviet Union and some of the European satellites have recently reiterated their readiness to provide aid and to expand trade with the 12 African nations associated in the so-called Brazzaville group--all moderate former French territories. This month Soviet officials held discussions in Moscow with an economic delegation from the Congo Republic (Brazzaville). A mission from Niger which visited Poland, Czechoslovakia, Hungary, and Ru- mania received assurances of bloc aid, largely in the form of technical assistance. 25X1 BLOC ECONOMIC RELATIONS WITH INDONESIA . . . . . . . . Page 17 Soviet military aid has overshadowed bloc economic activities in Indonesia during the past year, but the trade and economic aid program remains important to Soviet poli- cy in the area. Several recent aid agreements with the East European satellites have boosted total bloc economic aid to Indonesia to more than $600,000,000. The bloc has usually agreed to Djakarta's requests and has come to assume the major foreign assistance role in Indonesia's ambitious eight-year development plan which began this year. The plans now being formulated will eventually in- volve the bloc in nearly every sector of the Indonesian economy. 25X1 MOSCOW SHAKES UP CIVIL POLICE COMMAND . . . . . . . . . . Page 18 Kremlin dissatisfaction with the performance of the regular civil police during the current crackdown on eco- nomic crimes has led to the dismissal of internal affairs ministers in eight of the Soviet Union's 15 republics. In several instances those ousted have been replaced by officers of the secret police (KG)?. Although regular law enforcement is the responsibility of the Internal Affairs Ministry (MVD) in each of the republics, the KGB has been given responsibility for enforcing those new laws which provide t he death sentence for embezzlement and specula- 25X1 _ RURAL REORGANIZATION IN COMMUNIST CHINA . . . . . . . . . Page 20 Peiping is easing controls over farming as one measure to revive agricultural production. The peasants are being allowed greater freedom to engage in side occupations, cultivate private plots, and sell part of their output on free markets. Peiping is returning to an incentive wage system reflecting the amount of work performed rather than the time spent on the job. These measures cannot by themselves, without better weather and more fertilizer, be expected to pull agriculture out of its slump. CONFIDENTIAL Approved For Release 2005/04/22 0-604-RDP79-00927A003300110001-5 25X1 I F Approved FoRelease 2005/0 -RDP79-0092 A003300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 28 September 1961 25X1 SHARPENING CHURCH-STATE CONFLICT TN POLAND .. . . . . . . .. Page 21 Recent steps by Poland to assert its control over religious instruction have placed the Roman Catholic Church in open and direct opposition to the regime; the Polish Episcopate has bluntly reaffirmed its intention to con- tinue such instruction without submission to state regu- lation. The regime is well aware of the powerful public support for Cardinal Wyszynski and may be disposed to com- promise the ?ssue temporarily. 25X1 YUGOSLAVIA . . . . . . . . . . . . . . . . . . . . . . . . Page 23 Belgrade is trying to counteract the negative reaction in the West to Tito's support of Soviet foreign policies at the conference of nonaligned nations. Yugoslav offi- cials have implied to Western diplomats that the speech did not signal a change of policies and that Belgrade still maintains impartial positions. tON F 1AL 25X1 . . . . . . . . . . . . . . Page 24 Opposition leaders are "considering" President Bala- guer's offer to include them in a coalition government, but a leader of the largest opposition group has indicated that his group will not accept. The special OAS subcommittee is nearing the end of its stay in the country and is pre- paring to report on the critical issue of whether condi- tions now warrant any relaxation of the OAS sanctions against the regime. The opposition would regard any eas- ing of the sanctions as equivalent to US abandonment of the Dominican people to a tyrannical regime. The govern- ment, on the other hand, maintains that failure to lift the sanctions promptly would demonstrate the futility of the liberalization program and lead to a military coup. F_ I 25X1 MEXICO . . . . . . . . . . . . . . . . . . . . . . . . . . Page 25 Recent revolutionary outbreaks in central and south- eastern Mexico have led the Lopez Mateos government to take strong action against all suspected antigovernment activity. The administration remains uncertain as to which elements actually organized the outbreaks; it will probably blame certain recently active church-supported rightists, but in so doing will seek to avoid providing political advan- tage to the leftists. Violent uprisings have been rare in recent decades in Mexico; those this month involved at least 60 deaths. . . . . . . . . . . . Page 27 Preside pt Joao Goulart appears to have strengthened his political position during the past three weeks, despite CONFIpENTIAL Approved For Release 2005/04/22 .CIA-RDP79-00927AO03300110001-5 BRIEFS 25X1 CONFIDENTIAL Approved For e lease 2005/0 P79-00927AV3300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY 28 September 1961 the constitutional amendment of 2 September transferring the executive power in Brazil to a prime minister. Prime Minister Tancredo Neves appears to be working with Gou- lartrather than competing for power. Goulart's public statements have been cautious and devoid of radicalism; however, he has appointed a Communist as his private sec- retary, and several of his other appointees have Communist 25X1 THE WEST INDIES FEDERATION . . . . . . . . .. . . . . . . . Page 28 Jamaica's decision to withdraw from the West Indies Federation leaves Trinidad's Premier Eric Williams, often antagonistic toward the United States, the dominant figure in the area. While Trinidad now may follow Jamaica's ex- pected course of seeking separate independence, London considers it possible that Trinidad may join the smaller islands in an Eastern Caribbean federation. Williams may also use the collapse of the Federation as a pretext to seek renegotiation of the defense areas agreement con- cluded last February with the US. 25X1 PROBLEMS OF THE BELGIAN GOVERNMENT . , . . . . . . . . . . Page 29 Recent developments in the Congo, particularly the UN action against Katanga and the exodus of white set- tlers, will probably stimulate strong right.-wing criti- cism of the Socialist and Social Christian coalition government of Prime Minister Lefevre and Foreign Minis- ter Spaak when parliament reconvenes early next month. The coalition, formed in April after the parliamentary elections, is expected to survive, however, chiefly be- cause there is no practical alternative. 25X1 SPECIAL ARTICLES SINO-SOVIET BLOC AID TO AFRICA . Africa now accounts for 12 percent of total Sino- Soviet economic assistance extended since 1954. However, of the more than $500,000,000 in bloc aid thus far ex- tended to African countries, less than 5 percent has actually been delivered. The bloc aid program in Africa (excluding Egypt) 'began in late 1958 and early 1959 with the provision by Czechoslovakia and Poland of small medi- um-term credits to Ethiopia and Guinea for hospital and railroad' equipment. In mid-1959, the Soviet Union ex- tended relatively large lines of credit to both those African countries for general economic development. In the two years since then, the program--in which all the major bloc countries now are participating--has grown both in size and scope and now includes military as well as economic assistance. More than half the aid extended by the bloc to underdeveloped countries in 1961 was for African countries. Approved For Release! fRD 7A-L0927AO03300110001-5 BRIEFS Page 25X1 Approved FeJciowljNIA"9-009003300110001-5 28 September 1961 SUDANESE PRESIDENT ABBOUD . . . . . . . . . . . . . . . . Page 7 General Ibrahim Abboud, who begins a state visit to the United States on 4 October, has been President of the Sudan since 1958, when he led a successful army coup. De- spite initial successes in the economic field, the Abboud regime has never gained broad public support and is under pressure from a group of civilian politicians to restore constitutional government. During his visit to the US, Abboud, in addition to seeking a general increase in Amer- ican aid, will probably try to obtain a dramatic "impact" project, which he can use to increase his prestige. Per- sonally oriented toward the West, Abboud has nevertheless pursued an official policy of neutralism, designed primari- ly to keep the Sudan in good standing with Afro-Asian coun- tries. CONFIDENTIAL vi Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 BRIEFS 25X1 Approved For Release 2D9~/6~4/23U.Q%qA4,27A00~8~600110001-5 CURRENT INTELLIGENCE WEEKLY:',1URY WEEKLY REVIEW EAST-WEST The position Khrushchev out- lined in his statements on Ger- many and Berlin to Belgian Foreign Minister Spaak on 19 September was more flexible than any he has adopted since he in- tensified the Berlin crisis after the Vienna meeting with President Kennedy. Khrushchev apparently was seeking to convince Spaak that formal negotiations by the four powers could lead to a com- promise solution which would protect the Western position in Berlin but allow the Soviet Union a free hand to proceed with a peace treaty with East Germany. According to Spaak's report to the NATO Council, the Soviet premier contended that he understood Western views on Germany and Berlin and had no desire to impose the Soviet position that a treaty should be signed with both German states. Khrushchev said the USSR would guarantee East German execution of any agreement on Berlin which the four powers could work out prior to negotia- tions on the peace treaty. He stated that he was prepared for what he called a compromise-- the signing of two treaties which would contain some common clauses, including recognition of present German frontiers; some provision for subsequent study by the two Germanys of formulas for unification; and a four-power accord on Berlin. Such an accord, Khrushchev indicated, could either appear in parallel treaties or be incorporated in a separate East Germany peace treaty concluded by the bloc alone. He claimed that in this way Moscow would guarantee the Berlin accord without requiring Western recog- nition of the East German regime. Khrushchev ruled out any discussion of the status of East Berlin. He also maintained that the West must reach an agreement with East Germany over access arrangements, but at the same time he said,"Berlin is not too important." As to timing, Khrushchev indicated no sense of urgency and mentioned no final date, provided there were no "long, drawn-out" discussions on Ber- lin. Khrushchev's presentation and his focus on the possibility of "compromise" seem tailored to appeal to those within the Western alliance who favor for- mal negotiations as early as possible. Spaak indicated to the British ambassador in Mos- cow that he believed he has been invited to Moscow because Khru- shchev knew he favored negotia- tions. In keeping with this general line, Khrushchev's letter to Nehru, released on 22 Septem~ ber, maintained that the USSR was prepared for negotiations "any time, and place, and at any level," and attempted to create the impression that the West opposed "serious negotiations." Although the idea of two peace treaties--to be concluded by the Western powers with Bonn and by the bloc with East Ger- many--was included in the aide- memoire given President Kennedy in Vienna and repeated in the Soviet note of 3 August, Khru-- shchev's explanation of the link between a separate settlement on Berlin and the conclusion of a ('O FIDFNTIAL Approved For Release 2005 0 : CIA-RDP79-00927A003300110001-5 28. Sept 61 WEEKLY, REVIEW Page l of 30 Approved For R ase 4/2p 2(;Q f-N 0 D327A 300110001-5 peace treaty is a new aspect:,,; designed to overcome Western objections to a unilateral turnover of controls by main- taining a semblance of the status quo. This alternative, however, would be consistent with Khru- shchev's demand that the status of Berlin be "normalized" and with his refusal to agree to perpetuate Western occupation rights. He probably feels that incorporation in an East German treaty of a four-power agreement and a guarantee on access would reduce the risks of concluding a separate peace treaty with East Germany and would consti- tute! at least ;tacit: Western consent to a separate treaty. Khrushchev's statement that the USSR would be willing to ne- gotiate on a zone of limited or controlled armaments in Europe is calculated to appeal to Spaak and other European leaders who have long held that a security arrangement in Central Europe should be taken up in connection with the German question. this approach in his discussions with Secretary Rusk and with Lord Home in New York. In an- swer to Home's question on the possibility of a Berlin access arrangement which would be written into a separate peace treaty, Gromyko replied with five conditions: respect for East German sovereignty, agree- ment with the East Germans, end of the occupation status, de- militarization in Central Europe, and recognition of the Oder- Neisse border. Gromyko, however, was vague in answering Secretary Ru'sk's question on whether the Soviets excluded a broader approach than that indicated by Gromyko. In this way Gromyko apparently in- tended to hold the door open to a continuing exchange. Khru- shchev told the French ambassa- dor in Moscow that he realized there would have to be some "give and take" in any discus- sions on Berlin and Germany. Military Measures Khrushchev apparently sought to meet Western opposition to ne- gotiating under a threat or ul- timatum by playing down any spe- cific deadline and stressing anly that the talks should not be protracted. Khrushchev has not mentioned a deadline in recent public statements, and threats of a separate treaty have also been omitted in several of Khru- shchev's latest pronouncements. Despite Khrushchev's more conciliatory line, Foreign Min- ister Gromyko did not reflect Moscow announced on 25 Sep- tember that Warsaw Pact forces would conduct exercises in Octo- ber and November. These exer- cises are a logical and -cons'ist- ent.' development of Moscow's ex- tensive efforts over the past two months to impress the West with the strength and combat readiness of the Soviet and bloc forces. The Soviet announce- ment,'.,which' stated the exer- cises would be held in the "territory of the Warsaw treaty countries," follows the decision at the meeting of the Warsaw CONFIDENTIAL 28 Sept Ap61 proved For Release 2005/04/ 2 : CIA- E't'IT79-00927A003300110001-sage 2 of 30 Approved For RM6ase 2 P79-00927A0bC300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY Pact defense minsters on 8-9 September to work out "practical measures" to strengthen the de- fense of the bloc countries. Hammarskjold's Successor Although Moscow has con- tinued to advocate the troika plan for replacing the UN sec- retary general, there is in- creasing evidence that the So- viet bloc will eventually agree to an interim appointment to fill out Hammarskjold's term, which expires in 1963. The bloc delegates probably intend to in- crease their efforts to arrange for the appointment of three under secretaries--one each from the bloc, the West, and the neutral nations--to act as ad- visers without a veto. In this way Moscow would probably hope to claim growing recognition of the concept of three power blocs in the world and of the necessity to reflect this division in the UN structure. By insisting on the full troika plan as an in- itial position and indicating opposition to certain candidates, Moscow probably also hopes to induce neutral delegates to put forward a compromise candidate acceptable to the USSR. Gromyko in his UN speech made only a passing reference to the troika plan, denied that there was any constitutional crisis in the UN, and insisted the question be settled in the Security Council. A member of the Rumanian delegation, com- menting on Gromyko's speech, said that what the USSR wanted at this time was a candidate for temporary secretary general who would be acceptable to the bloc. Permanent Soviet UN rep- resentative Zorin is reported to have proposed to the three Western powers that a four-man directorate be selected, with one person to serve as the chief of the secretariat and the other three to act as assistants. Reaction to President's Address The bloc has been mildly critical of the President's speech, with most of the crit- icism directed against his disarmament proposals. Moscow asserts that the proposals fail to provide "either for the abo- lition of arms and armed forces or for the banning of nuclear weapons, or for the liquidation of military bases. Moscow also criticizes the President for referring to the Laotian situation as a threat to peace while not "saying a word" about Algeria, Angola, or Southwest Africa. The President's remarks on Germany are reported briefly but without direct commentary. During the past week, two incidents have occurred involv- ing East German efforts to con- trol US military personnel traveling on the Berlin-Helmstedt Autobahn. On 21 September police halted two US enlisted men in civilian clothes traveling in a car with military plates, and detained them at Potsdam police headquarters. After six hours, a Soviet officer appeared CONFIDENTIAL Approved For Release 2005/04/2? MM A1 DP79-00927A003300110001-5 28 Sept 61 WEEKLY REVIEW Page 3 of 30 Approved For Reuse 204/22 :'Q44DP78U27A000110001-5 9T CURRENT INTELLIGENCE WEEKLY SUMMARY and the men were released. On 25 September, an air force staff sergeant was halted at a road- block outside Berlin while en route to Helmstedt in a private vehicle with military plates. East German police--who were handing out fines to most of the cars on charges of speeding --ordered the sergeant to pro- duce his identification, refused his request for a Soviet officer, and forced him to return to Berlin. On the second try, he drove through to Helmstedt. The institution of increased patrolling by US military police after the first incident drew a strong protest from Marshal Konev demanding immediate cessa- tion of the patrols, on grounds that they violated "the agree- ment pertaining to communications controls, under which the con- trol for communications between the Federal German Republic and West Berlin is placed in the hands of the Soviet command." The broad reference to Soviet retention of communications controls is unusual in that it makes no allowance for existing East German control of West German traffic. In an effort to maintain pressure on the matter of air access to Berlin, Soviet authori- ties in the Berlin Air Safety Center (BASC) used an Allied protest against the harassment of a British European Airways plane on 22 September by Soviet fighter planes to transmit: the following day a demand that Western flights submit flight plans Promptly, that they state the estimated time for crossing the East German frontier, and that they adhere to the "re- quirement" of flying under 10,- 000 feet. West Germany Despite official Washing- ton reassurances that US policy on Berlin and Germany remains unchanged, West German spokes- men of the leading political parties have expressed "great uneasiness" over statements attributed to influential Ameri- can officials about accepting the "reality of the two Ger- manys." A Foreign Ministry official told US representative in Bonn that publicity at this time regarding possible Western concessions has "dismayed the German public" and created dis- trust of the strength of the alliance even before negotia- tions have begun or any con- cessions actually been made. The influential Hamburg newspaper Die Welt asserted on 25 September that various concessions apparently under consideration by the United States such as de facto recog- nition of East Germany came "dangerously close to Soviet demands." The newspaper also noted that there was quite a difference between offering such concessions at the end of Berlin talks, when they might offer the only chance to keep Berlin free and avoid war, and offering them at the open- ing phase of negotiations 25X1 Approved For Release F 1 QTJAL27A003300110001-5 28 Sept 31 WEEKLY REVIEW Pate 4 of 30 Approved For R1ase 2005/04/22 :CIA-R P79-00927AbA300110001-5 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY The cease-fire in Katanga, which began on 21 September, has generally been observed by both Tshombe and the UN. The first move in the direction of a pris- oner exchange took place on 26 September, when two UN officials arrived in Elisabethville to participate in a four-man com- mission which will oversee the cease-fire. The cease-fire to date has been highlighted by charges from each side of bad faith and armi- stice violations by the other. Although the cease-fire provided for a freeze on troop movements in Katanga, each side has taken steps to increase its military strength. The UN has made no secret of its efforts to develop an air capability which would neutralize Tshomb6's ubiquitous -Fouga jet. The first four of fourteen jet fighters requested by the UN arrived in Leopoldville from Addis Ababa on 27 September. There are unconfirmed reports that Tshomb6 has already received the first of ten twin-engine Dornier light transports-- equipped with bomb racks and other. military equipment--ordered in Europe. A US Air Force officer in Northern Rhodesia reported on 23 September that a Katangan aircraft had arrived in Ndola to pick up eight Rhodesian,, Bel- gian, and South African merce- naries for service in Katanga. Morale in Tshomb6's forces appears to be generally satis- factory. Four African lieuten- ants defected to the UN on 23 September, but they appear to have been members of a contin- gent of junior officers who have posed a disciplinary threat to Tshomb6 since their return from training in Belgium. The US Con- sulate reports that the character of the white element in Tshomb6's army appears to be changing, with the hitherto dominant Belgian element giving way to Rhodesian and rightist French volunteers. UN authorities apparently hope that the cease-fire will provide an opportunity for direct talks between Tshomb6 and the central government. Khiari stated on 26 September that he believed "there was a possibility of a rec- onciliation based on Tshomb6's acceptance of a high post--such as minister of defense--in the Leopoldville government. Such hopes ignore the increasingly hostile attitude toward Tshomb6 in Leopoldville. The Gizenga faction would probably block any move to bring Tshomb6 into the central government. Tshomb6 has reiterated his willingness to negotiate with the central government, but has not hacked down on his oft-repeated insistence on Katangan independ- ence and the necessity of a UN withdrawal from Katanga. On 27 September, Tshomb6 stated that he had urged Adoula to meet him for talks in neutral territory. Widespread anti-Tshomb6 sentiment in Leopoldville has prompted Premier Adoula to move two battalions of Congolese Army troops to Luluabourg in prepara- tion for an "invasion" of Katanga if one is required. Rumors of invasion, together with hunger and unrest within the Baluba refugee camps near Elisabethville, have added to the insecurity in Katanga. CONFIDENTIAL Approved For Release 2005/04/227- 79-00927A003300110001-5 28 Sept 61 WEEKLY REVIEW Page 5 of 30 Approved For Rase 2005/04/22 : CIA-RDP79-00927ADA'J'300110001-5 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY GLARY UN officials in Elisabeth- ville have admitted to a US Embassy officer that they badly underestimated the Katangans' will and ability to resist, but nonetheless persist in their optimism. The embassy official characterized UN authorities as UN 3160 UN 925 scattered The Adoula government has rebuffed efforts by bloc and radical African diplomats for- merly accredited to the Gizenga regime in Stanleyville to trans- fer operations to Leopoldville without obtaining new accredita- tion. A Foreign Ministry bulletin Tsh i kapa Bakwanga? 00 United Nations Forces* --Selected road N 940 -+-+ Selected railroad Does not include support troops or Selected airfield units in the process of redeployment. minimizing the African role in the resistance 'and.blaming the fighting on a few hundred whites. He observed, however, that Katan- gans, with no support from Euro- peans, resisted heavy UN attacks on the fit t day of the fighting, and areas exihi:la tegi, as the whites by their "victory" over the UN. UN 1500 UN 3300 of 23 September-, which noted the presence in Leopoldville of dip- lomats from the USSR, Czechoslova- kia, Poland, Mali, and the UAR, stated that these countries could install their missions only after having followed "normal diplomatic procedure.." CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 6 of 30 UN 1875 25X1 Approved For Rele`rse 2005/04/2 3+N'e~j 0927A003390110001-5 CONFIDENTIAL" CURRENT INTELLIGENCE WEEKLY SUMMARY LAOS In their meeting at Namone on 27 September, the Vientiane group and the delegation repre- senting Souvanna and the Pathet Lao agreed on a new meeting of Souvanna, Souphannouvong, and Boun Oum. The site agreed upon--Hin Heup, about 50 miles north of Vientiane--represents a concession by the government, which had been insisting on Luang Prabang. However, the dividing line between the op- posing forces runs through Hin Heup, and the timing of the meeting and its precise location within the town apparently re- main to be decided. Phoumi, in conversations with Ambassador Brown on 26 September, appeared to have adopted a more lenient view of Souvanna. While commenting that the depth or sincerity of Phoumi's apparent conversion could not be measured, the ambassador states that Phoumi gave every impression of a sincere desire to reach agreement with Souvanna on a government under Souvanna's leadership. Phoumi did, how- ever, say that negotiations on the governments composition would be protracted, as he would make a major issue of which in- dividuals were "truly neutral." In earlier talks with Am- bassador Harriman--following the Harriman-Souvanna discus- sions in Rangoon--Phoumi had stressed his belief that Souvan- na was too beholden to the Com- munists to make a suitable pre- mier. Phoumi declared that if a peaceful solution proved im- possible and the Vientiane government were attacked, he would defend himself and hoped "in any event" he could count on support from the United States. Ambassador Harriman received the impression that Phoumi had no real intention of pursuing serious negotiations. Phoumi's current more re- ceptive attitude could be merely a tactical maneuver to shift the onus away from himself for the lack of progress toward a polit- ical settlement. King Savang also disclosed his lack of confidence in Sou- vanna to Ambassador Harriman, but said he would be willing to appoint Souvanna premier if he were the choice of the three princes. Negotiations continue be- tween Souvanna~and Western rep- resentatives on a formula for a coalition government balanced 'between left and right. Souvan- na is still insisting on drawing heavily from his supporters in Xieng Khouang for the "moderate center" but has indicated he would consider enlarging this group to include more persons outside his circle. Meo units in Xieng Khouang Province continue their harass- ing activities despite enemy efforts to suppress them. Vien- tiane army units are making sec- tor sweeps in an effort to con- 25X1 solidate their positions but are encountering stiffer resista At a meeting on 26 Septem- ber the Geneva conference rati- fied a number of minor points which had been ironed out dur- ing discussions between the UK and Soviet delegates as co-chair- men of the conference. Included among these points was a com- promise draft dealing with the repatriation of foreign mili- tary and civilian prisoners in Laos. The draft provides that all prisoners will be handed over to their respective govern- ment representatives "for pro- ceeding to the destination of their choice." Approved For Release EM ffl- A-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page.7 of 30 Approved For Refse 2QQ 4 CURRENT INTELLIGENCE WEEKLY SUMMARY On 22 September, Soviet delegate Pushkin had refused to hold a scheduled meeting of the conferees, despite his prior agreement to do so. He bitterly criticized the US re- fusal to accept promptly the Soviet draft on repatriation. The UK delegate has speculated that at the time, the Chinese Communists were probably crit- ical of Pushkin's decision to proceed with a meeting of the conference without having' ob- tained prior Western acceptance of the Soviet draft. Communist propaganda con- tinues to charge that the US and Vientiane are preparing for an increase in hostilities. The increased scale of Communist guerrilla activity throughout South Vietnam this month may foreshadow an inten- sified military effort by the Viet Cong. In addition to pre-? viously reported attacks by Viet Cong forces estimated at two battalions on outposts in Kontum Province near the Lao- tian border and on Phuoc Vinh, capital of Phuoc Thanh Province just north of Saigon, a Commu- nist force in similar strength on 18 September overran a small garrison and three villages near the government stronghold at Ban Me Thuot, southern gate- way to the minority tribal re- gions of the central high pla- teau. Battalion-size units also carried out four separate attacks between 17 and 19 Sep- tember in the northern prov- inces of Quang Nam and Quang Ngai, the largest actions in that area to date. Stepped- up activity also continues in areas close to Saigon, includ- ing the kidnap-ransom during the past week of an Australian technician. This acceleration suggests that the Communists are enter- ing a new stage in their sub- versive efforts, possibly hop- ing in the near future to erode public confidence in the regime and facilitate another coup attempt. The attacks may be intended in part to keep govern- ment forces off balance and divert Diem's troops from the southernmost provinces--still the main Communist stronghold-- where South Vietnamese Army sweeps in recent months have caused heavy Viet Cong losses, The activity in the central highlands, and particularly in the north, indicates the in- creasing ease with which the Communists are infiltrating from North Vietnam through Laos. One Viet Cong battalion involved in a recent attack in the north was equipped with weapons of US rather than French origin. This fact, plus the reported statement of its captured commander to the ef- fect that the unit made a two- day march from the west, indi- cates the entire battalion may have entered from Laos. A Viet Cong prisoner captured in Saigon said he had entered by way of Laos and Cambodia in June with a 250-man unit trained in North Vietnam. CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 25X1 Qvz~llllll Approved For 4elease 2005/04/22 : CIA-RDP79-00927A 03300110001-5 t CONFlDENTIA .3 CURRENT INTELLIGENCE WEEKLY SUMMARY Communist Guerrilla Activity in South Vietnam Quang Tri, VIETNAM Hue. L A O S T urane j.uang Nam C A M B O D I A SOUTH VIETNAM ,Ban Me Thuot PHNOM PENH (10 Tay Ninh Phuoc ? SAIGON Cap Saint-Jacques Site of large-scale Viet Cong attack, September 1961 Major areas of Viet Cong concentration 26 SEPTEMBER 1061 American Army intelligence estimates Viet Cong strength in South Vietnam at 16,500,.,of" whom about 8,500 are considered well-trained, full-time regu- lars organized into at least 29 battalions which operate as 100 J Phan Rang. elite striking forces. The re- maining 8,000 are probably partly trained and equipped guerrilla companies and pla- toons, operating in their home province or district under full- time cadres. 'CONFIDENTIAL Amos Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 25X1 25X1 28 Sept 61 WEEKLY REVIEW Page 9 of 30 Approved For Release 2005/O~DP79-0092774 03300110001-5 CONF.DEM De Gaulle, who reportedly is seeking a "national unity" agreement in his effort to reach an Algerian settlement by the end of the year, has reduced the likelihood of an early government crisis by announcing that he is about to renounce his special emergency powers and by efforts to re-establish contacts with party leaders. By late summer, virtually all the "representatives of the nation"--the parties represented in parliament, labor unions, farm- er organizations, and various other groups--appeared strongly dissatisfied with the present government system because they feel they are being deprived of their normal functions. De Gaulle's popularity. among the masses, however, was virtually undiminished; the crowds during his 21-24 September tour of south-central France were large and enthusiastic, despite the call by the farm organizations and many local officials for a protest boycott. censure the unpopular Premier Debr6 and overthrow his govern- ment, it also restores the Presi- dent's right to dissolve parlia- ment when it does so. De Gaulle next initiated a series of talks on 25 and 26 Sep- tember with the leaders of virtu- ally every political party except the extreme right and extreme left. According to the account put out by the Gaullist Union for the New Republic, he suggested a "national unity agreement" until the end of the year, when he hopes to have some solution for Algeria. While the parties remain critical of the government, they may accept "nation- al unity" for a limited period of time and agree to postpone a censure motion against Debr6. A member of the Socialist delegation said De Gaulle told his group he had no intention of changing his government at this time but intimated that if he achieves an Algerian solution soon, he might dissolve parliament and call new elections for the spring of 1962. When this month's special session of parliament on the farm problem collapsed into a constitutional feud between the National Assembly and the govern- ment, De Gaulle's advisers coun- seled closer contacts between him and the country's political representatives. On 20 September, the President announced his in- tention of renouncing by the end of the month the special powers which were instituted after themili- tary mutiny in Algeria last April and which have in recent weeks been openly attacked by the depu- ties. While this concession re- stores parliament's freedom to The French people are almost completely behind De Gaulle's policy of withdrawing from Algeria. Minister for Algerian Affairs Louis Joxe commented on 14 September that they would support anything De Gaulle; wants. However, they do not under- stand why it is taking so long to get a settlement. De Gaulle's scheduled nationwide address of 2 October may include major new proposals on Algeria and a new appeal for the united backing of the country. In addition to political restlessness, France in the next CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927A003300110001-5 28 Sept 61 WEEKLY REVIEW Page 10 of 30 Approved Fceelea~p?~QQ 41100920033001 10001-5 lsopaagw CURRENT INTELLIGENCE WEEKLY SUMMARY few months faces the prospect pending passage of new legisla- of potentially serious labor tion, now scheduled to come be- and farm unrest. While the fore parliament early in the fall h economic situation is generally excellent, income in some sec- tors--notably agriculture and nationalized services--is sub- standard. On 27 September there were brief but widely supported strikes by miners and railroad workers. The possibility of labor violence will remain as long as the government restricts wage raises and social benefits while productivity is being in- creased. Farmers demanding a return to parity prices, better mar- keting arrangements, and social security improvements staged demonstrations early in the sum- mer. Tenuous peace was restored session; other concessions, suc as higher milk prices, have re- cently been granted. Debr6 stated on 14 September that no solution would satisfy the farmers now because the prob- lem is a structural one and will remain difficult for six or eight years until expanding industrial development absorbs the excess manpower now on the farms. Although many farmers reportedly have a "pathetic faith" that par- liament will solve their problems, the two major farm organizations claim they are prepared to resume demonstrations if their demands are not satisfied. 25X1 The bitterness of European settlers in Algeria, which is being exploited by the rightist Secret Army Organization OAS) has reached a point where another coup attempt is e y unless the OAS leaders are cap- d The OAS has called oon t Violence by Europeans could provoke counterdemonstrations by Moslems. De Gaulle himself re- portedly told a Socialist party delegation on 26 September that the situation in Algeria is "ex- plosive" and that he would not be surprised if there were new disorders in which large numbers . ure s upon all opposed to De Gaulle's of Europeans and Moslems were policies to stage a series of I killed. demonstrations, two of which have already produced rioting in Algiers. The climax of these demonstrations is scheduled for 2 October--the day De Gaulle will make a television address on Algeria and other matters. 25X1 25X1 CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 11 of 30 Approved For.,Release 2005/04T~~C1K-DP79-009203300110001-5 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY 25X1 April coup attempt the French Army has been regarded by the Europeans as an occupying force. Conscripts, whose refusal to support the generals was largely responsible for the failure of the April insurrec- tion, are being insulted and ostracized. Some have even been killed by irate Europeans. Many sources in Algeria feel that a showdown battle be- tween the government and the OAS in Algeria is imminent, and they are not confident that the government will win. Re- ports indicate that although the OAS penetration of metro- politan France is proceeding slowly, it has made great prog- ress in Algeria. The arrest there of 225 OAS members on the night of 12-13 September does not appear to have reached the leaders; there are indications that ex-Colonel Godard is now in active control of the OAS, with ex-General Salan merely a figurehead. The bulk of the European population is probably giving at least tacit support to the OAS, even though response to the 25 September order to dis- play the OAS flag was not im- pressive. Both Salan and Go- dard have reportedly been seen in Algiers, and Salan is said to move "from army post to army post" while the CRS is "very 25X1 careful not to catch up with him." Such a situation implies 25X1 complicity The OAS apparently intends ultimately to precipitate mob action that would swamp the security forces, feeling that "you cannot arrest 300,000 people." Although the OAS has issued tracts "deploring" European attacks on Moslems, its hard-core leaders may be inciting intercommunal violence on the premise that the ensuing There are an estimated French repression of the Moslems 35,000 troops and security forces would be so bloody as to prevent in the greater Algiers area, but one report states that only the gendarmerie and the Repub- lican Security Companies (CRS) are completely loyal to the government. Even the CRS was slow to control Europeans who staged an "Arab hunt" in Algiers on 12 September. Although the officers responsible have re- portedly been disciplined, this casts doubt on whether the CRS would fire on rioting Europeans, especially since two thirds of the CRS forces are said to have been born in Algeria. The at- titude of the army would be un- since the certain if it were called upon to fire on a European crowd. early resumption of negotiations with the provisional Algerian government (PAG). De Gaulle intimated to the Socialist party delegation that French representatives are in contact with the PAG to set a date and choose a place for new negotiations. De Gaulle report- edly stated, however, that he would want to be sure progress can be made before entering any new talks, and rebel premier Ben Khedda is reported to feel that the PAG cannot politically sur- vive another failure of public negotiations. CONFIDENTIAL Approved For Release 2005/04/2 9-00927A003300110001-5 28 Sept 61 WEEKLY REVIEW Page 12 of 30 Approved Foi%ReleasQQ S'/0 E2''RDK09203300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY Some French officials are said to fear that an early re- as regulars in or auxiliaries with the French Army, the PAG would probably object that it was in effect an extension of the French Army and hardly im- partial. On the other hand, the French military, who have been concerned for some months over the loyalty of such troops, would almost certainly feel that severing those Moslems from their normal army environ- ment would subject them to rebel propaganda and thus in- fluence the electorate. Even the idea of a mixed French- rebel force was rejected earlier this year by one of De Gaulle's most trusted officers, the then commander-in-chief in Algeria, General Gambiez. serious effects on the settlers in Algeria and possible repercus- sions in France unless time is allowed for the inflamed Euro- pean-Moslem situation in Algeria to calm down. De Gaulle reiter- ated to the Socialists, however, the idea that some sort of settle-; meat of the Algerian problem-- whether partition or the estab- lishment of a provisional executive body--will have been reached "by the end of this year. The Socialists quoted De Gaulle as envisaging next the establishment of a transi- tional "central power" supported by a 50,000-man "local" Moslem force. The idea of a "local" police force was first advanced by De Gaulle in a 5 September press conference at which he asserted that the establishment of an Algerian state could "nor- mally" stem only from the proc- ess of self-determination--a referendum and elections--which should occur under a "provisional Algerian power" rather than un- der French authority and which would be supported by its own "local police force." This ar- gument was designed to meet PAG objections to a referendum con- There is little likeli- hood that the proposed 50,000-man force could han- dle the internal security situation in Algeria. The disposition of the regular French forces during and after formation of the new force would also pose major problems. If the French forces were retained in Algeria to keep the lid on Moslem and European ter- rorism during the self-deter- mination period, there would be little or no prospect of PAG cooperation to fa- cilitate the transition of power. If, however, De Gaulle seemed intent on withdrawing large numbers and the pres- ent racial tension showed signs of getting out of control, his officers--most of whom already disagree with his Algerian policy--would probably ducted in the presence--even if only for the purpose of assuring security--of the approximately 400,000 French forces in Algeria. The actual composition and functions of any "local" force have been a matter of speculation for some time. If personnel of the force were drawn entirely from those Moslems now serving resist him. 25X1 CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 13 of 30 Approved For?lis e QJIPtiEA'LOO927AQe33OOllOOOl-5 CURRENT INTELLIGENCE WEEKLY SUMMARY AFGHANISTAN-PAKISTAN Neither Afghanistan nor Pakistan has shown any willing- ness to make concessions to help resolve the present impasse, Both countries have continued to strengthen their military positions along the border, but the intent on each side appears to be defensive. Kabul trans- ferred some tank units from the capital to the Khyber Pass; area, following the build-up of in- fantry and artillery units in early September. The Afghans are reportedly calling up a new class of 20,000 draftees and have ordered 2,000 techni- cally trained reservists to report for duty. The Pakistanis, who depend primarily on the quasi-military Frontier Corps to maintain border security, have apparently deployed parts of two units of the corps closer to the border in Bajaur, north of the Khyber Pass. A group of several hundred Afghan-sponsored tribal irregulars has moved into this region but has engaged only in localized skirmishes, Afghanistan insists that it will not use the Pakistani transit route for its foreign trade again until the Pushtoon- istan dispute is settled. The disruption of supply lines threatens to force the termina- tion of construction work on major American aid projects in the near future. Kabul is beginning to make new arrangements to handle trade which normally crosses Pakistan. A Soviet trade rep- resentative is in the southern part of the country to buy local commodities, including the fruit harvest, a major export crop usually marketed in India and Pakistan, The Afghans are also encouraging Western shippers to send trade and aid shipments, which formerly came in through Pakistan, by way of the rela- tively expensive transit route across Iran as well as via the USSR. The government of Pakistan has issued a press statement noting that Afghanistan's re- fusal to accept shipments cross- remains closed. SUI,,b C Fort Sardem II PAKISTAN ing Pakistan has resulted in congestion in Pakistan's port and railway facilities and has dis- rupted regular traffic. This may be intended to prepare the way for suspending facilities for shipments to Afghanistan and di- verting warehouses and rolling stock to other uses if the border CONFIDENTIAL 28 Sept 61 Approved For Release -EEKLY2 : CI RDP79-00927AO0330011000 Page 1-5 14 of 30 AND -\ j' KASHMIR ~ISr.~rus Irr ,ro}?rrel RAWA PINDI 25X1 Approved For$,eleaser2005/ - 79-0092749'b3300110001-5 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY President Nkrumah's abrupt removal last week of British officers from command positions in Ghana?s military forces under- scores his progressive estrange- ment from the West. Nkrumah and his pro-Communist advisers--such as Minister for Presidential Affairs Adamafio, who now seems to be the most influential Ghana- ian after Nkrumah--appear eager to accept almost any assistance offered by the Sino-Soviet bloc. Nkrumah himself is said to have returned from his recent extended visit to bloc countries apparent- ly convinced that the USSR rep- resents the "wave of the fu- ture." Nkrumah is known to have been sensitive to hints, notably from Nasir, that, the British position in the Ghanaian Army would limit Ghana's role in the projected "African high command" of the Casablanca group. The timing of his action, however, appears to have been determined largely by anger over recent actual and presumed British activities in Africa. One focus of this anger has been the ob- jections voiced by Britain to the UN's military intervention in Katanga; the controlled Ghanaian press even accused London of having plotted Hammarskjold's death. In addi- tion, Nkrumah apparently be- lieves that local British com- mercial interests encouraged the recent wave of strikes in Ghana--a line promoted publicly by Adamafio and other leaders of the regime's left wing. This suggests that other moves aimed at reducing the former colonial power's presence in Ghana may be imminent. British civil servants in the Ghanaian Government and the British-owned firms would be the most likely targets of such moves. Nkrumah's action will prob- ably have adverse effects on the capabilities of Ghanaian forces if, as seems likely, most of the approximately 230 British offi- cers in Ghana now elect to leave. Relatively few Ghanaians are qualified to hold a rank above the new chief of staff of the 9,000-man army, has been char- acterized as an ineffective op- portunist who commands little respect from fellow officers or the rank and file. The change- over may eventually lead some of the Ghanaian officers who have expressed unhappiness with Nkrumah's policies to join dis- affected political elements. No matter how many British officers remain, the changes in their status will facilitate Nkrumah's plans to accept bloc military assistance. He can be expected to press ahead with the program--devised during his Soviet visit but vigorously opposed by Alexander and some Ghanaian officers--to send as many as 400 Ghanaian cadets to the USSR for long-term training in all three services. He may accept bloc military advisers--reportedly of- fered by the Soviet military mission which visited Ghana last winter. The Ghanaian leader also seems determined to step up implementation of development projects agreed to by the bloc-- such as the Bui dam--and to conclude new economic arrange- ments. A delegation is sched- uled to leave for the bloc shortly to discuss specific projects as well as new credits required to finance them. Ghana has received about $110,000,000 in bloc credits, and Nkrumah reportedly requested additional sums ranging from $14,000,000 to $56,000,000 from each of the nine bloc countries he visited. Recently there have been in- dications that right-wing lead- ers--including K. A. Gbedemah, removed on 28 September as minis- ter of health--have been moving toward a showdown over Nkrumah's increasing alignment with the bloc and Adamafio?s position. One report suggests that Gbed- emah, as of 24 September, was actively soliciting support from the opposition party for 25X1 a plan aimed at deposing Nkru- mah, apparently through parlia- mentary action. that of lieutenant; General PiNNFJD~041 f1L 25X1 Approved For Release 2005/04/22 : dll-'PUP77-0~0927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 15 of 30 CURRENT INTELLIGENCE WEEKLY BURY The Soviet Union and some of the European satellites have recently reiterated their readi- ness to provide aid and to ex- pand trade with the 12 African nations associated in the so- called Brazzaville group--all moderate, former French terri- tories. This month Soviet of- ficials held discussions in Mos- cow with an economic delegation from the Congo Republic (Brazza- ville), and a mission from Niger which visited Poland, Czecho- Approved For lease 2005/04/22: CIA-RDP79-00927AS03300110001-5 SECRET The Congo Republic, by send- ing a mission to the USSR, has became the first of the Paris- oriented Brazzaville group to display an interest in Moscow's standing aid offer. The mission included the ministers of plan- ning and public works and members of the parliament. 25X1 slovakia, Hungary, and Rumania received assurances of bloc aid, largely in the form of technical assistance. Shortly after these former French colonies achieved inde- pendence in 1960, missions from several bloc countries including Communist China visited most of them. The bloc representatives are known to have made prelim- inary offers of economic aid to the Central African Republic (CAR) and the Malagasy Republic, and attempted to discuss trade with several others. The CAR declined Soviet offers to build a railroad from the CAR capital at Bangui to the Chad border, to construct an airfield capable of handling jets, and to provide machinery for the cotton indus- try of .the Central African can. Republic. The soviet delegation which visited the Malagasy Re- public reportedly offered to build a sardine factory as an aid project but was also rebuffed. Niger's "good-will" mission, headed by the minister of indus- try and trade, was promised tech- nical aid from Czechoslovakia and Hungary and was assured that Po- land and Hungary would send dele- gations to Niger to discuss other economic assistance. Rumania offered to send a mission to Niger to establish "concrete" ways of developing economic relations. Communiques on the Niger mission's visits to these four European satellite countries stated that means of expanding trade had also been discussed. Two other members of the Brazzaville group, Dahomey and Senegal, recently announced their intention to send dele- gations into the bloc. Daho- mey will send a group led by its vice president to the USSR, Czechoslovakia, Poland, and Communist China, and the prime minister of Senegal is sched- uled to go to the USSR next month. (Prepared by ORR) 25X1 SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 16 of 30 Approved ForQ1ease 2005/04/22: CIA-RDP79-00927AN3300110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY BLOC ECONOMIC RELATIONS WITH INDONESIA Soviet military aid has over- shadowed bloc economic activi- ties in Indonesia during the past year, but the trade and a44,ipror gram rema ins an equ l'l'y impo ant arm of the Communist offensive Several new aid agreements have been signed recently, boosting total bloc economic aid to more than $600,000,000. Moscow's readiness to supply whatever military equipment Djakarta re- quests--including-:guided missiles .--is duplicated innthe economic sphere, and the bloc has come to assume the major foreign assistance role in Indonesia?s ambitious eight-year develop- ment plan which began this year. Eventually the bloc will be active in nearly every sector of the Indonesian economy. Nearly half of the $117,500,- 000 in Soviet economic aid exc~: tended prior to 1960 has been used, and most of the remainder is committed to projects for the eight-year plan. The Asian Games stadium complex--where the USSR has concentrated its efforts So fare-probably will be finished in time for the opening events next year. Construction-,).of a 400-mile road Network on Kalimantan ("(Borneo) was extremely slow in getting under way; about 100 Soviet tech- nicians are slated for the work. Other Soviet projects being implemented under the old, aid agreements include an iron and steel works, a technological institute, a superphosphate plant, and two mechanized farms. The $250,000,000 Soviet line of credit extended in early 1960 has been partially allo- cated for a metallurgical works on Kalimantan, an integrated hydroelectric and aluminum proj- .ect in north Sumatra, and several smaller :undertakings. Work on one of the two atomic re- actors the USSR is to set up in Indonesia recently began in Jogjakarta, and a gift hospi- tal is to b * started in early 1962. Following up preliminary negotiations initiated by In- donesia last year, several of the European satellites have of- fered new aid credits. Bulgaria, Poland, and Hungary have ex- tended a total of about $65,000,- 000 in long-term credits this year, and Czechoslovakia has pledged an unspecified amount of aid. These credits will be used for such industrial proj- ects as mining enterprises, ore- processing facilities, and chemi- cal plants, and for deliveries of merchant ships, transport equipment, and other industrial goods. East Germany, which has expressed its willingness to supply a variety of industrial plants, may also extend more aid. An Indonesian missionhheaded by the minister of basic industry visited Rumania recently to seek implementation of an accord reached last June envisaging further Rumanian aid, particularly in the petroleum industry, A credit agreement probably was signed during the visit, and Rumania may provide. technical assistance in petroleum exploration And in building new oil installations. In its first entry into the Indonesian petroleum field, the USSR has agreed to train 100 SECRET Approved For Release 2005/04/22: CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 17 of 30 Approved For R ase 2005/04/22 : CIA-RDP79-00927ASW300110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Indonesian oil workers at its Baku oil fields. Other bloc gestures have been made sug- gesting a readiness to extend massive technical assistance for the Indonesian petroleum industry. Having patched up its re- lations with Indonesia, Commu- nist China early this year de- cided to reopen a $30,000,000 long-term credit offer which had been suspended since 1959. An agreement signed in April committed Peiping to build a number of textile installa- tions. Work is due to begin this year, and some 120 Indo- nesians are to be sent to China for training. foreign trade, but its share will increase considerably over the next decade as a result of heavy repayment obligations on both economic and military credits. A concerted effort is under way to boost trade with Indonesia in rubber, copra, hemp, spices, and other tropical products not generally available in the bloc. A greater bloc interest in Indonesia's mineral and metal resources is indicated by the terms of a recent Czech agree- ment for aid in mining and processing ores. Repayment is to be in the form of future production from the projects, and Prague will have first choice in purchasing the processed ores and metals for 10 to 15 years after the re- The bloc now accounts for about 10 percent of Indonesia's payment period. (Prepared by ORR) MOSCOW SHAKES UP CIVIL POLICE COMMAND Moscow's dissatisfaction with the performance of the regular civil police (the mili- tia) during the current crack- down on economic crimes has led to the dismissal of internal affairs ministers in eight of the Soviet Union's 15 republics. In several instances those ousted have been replaced by officers of the secret police (KGB). Although regular law enforcement is the responsibility of the internal affairs ministry (MVD) in each of the republics, the KGB has been given respon- sibility for enforcing those new laws which provide the death sentence for embezzlement and speculation. After Beria's purge in 1953, the MVD was stripped of its best-- qualified personnel and steadily 25X1 declined in power. These moves had an adverse effect on police morale. Furthermore, the aboli- tion of the central Ministry of Internal Affairs in January 1960 left normal police work with less central direction and authority. This state of affairs, com- bined with other "liberaliza- tions" effected by Khrushchev since 1953, appears to have brought about a radical change in the attitude of the public toward the MVD_militia. Hated and feared in the Stalin era, it now is regarded with in- difference or open contempt. Complaints of inefficiency on the part of the militia have been more frequent, press themes. since the onset of the anticrime drive early this year. SECRET A proved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 6T WEEKLY REVIEW Page 18 of 30 Approved For ROase 2005/04/22: CIA-RDP79-00927AOQA600110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Such a casual attitude to- ward the nation's chief organ of normal law enforcement is by no means limited to the ordi- nary citizenry. In the Kirgiz Republic last year, party :leaders gave the Internal Affairs Minis-I- try to Mukhamet Isayea, who had just been fired as an oblast first secretary for ,"improper leadership." Khrushchev bit- terly criticized this situation at the central committee plenum last January; Isayev was im- mediately removed from his post and thrown out of the party. On 1 September it was belatedly revealed that he had been sen- tenced to a year in prison for fraud, Those MVD chiefs who have been dismissed in seven other republics, although not charged with malfeasance, clearly failed to ensure the kind of -law en- forcement the Kremlin expects. In the Russian Federation (RSFSR), for example, Internal Affairs Minister Nikolay .Stakhanov was fired after the apprehension of two gangs of currency specu- lators in Moscow, two "attacks" on police precinct stations in Vladimir Oblast, and press as- sertions that the militia was unwilling or unable to eliminate "lawlessness" in Kuybyshev. On 18 September both the MVD chief and the chairman of the Supreme Court in Turkmenistan were dis- missed for failing to "deal harshly enough" with major:, economic crime in that republic. Stakhanov was succeeded by Vadim Tikunov, who had been deputy chairman of the Soviet KGB. The new head of the Georg- ian MVD is also a secret police officer, and in both Kirgizia and Kazakhstan, native ministers of internal affairs have been replaced by Russians apparently brought in from the KGB apy. paratus. These moves will further strengthen, the hand of the KGB in the wgr'.against economic crime. Moscow may not only be trying to bring about a major improve- ment in the performance of the militia but also implying to those who contemplate the com- mission of less serious economic crimes that they., too thay ultimate- ly run afoul of.-the :jecret police. There are signs that the anticrime drive will become even more intense. On 14 September a plenum of the USSR Supreme Court called on all courts throughout the country to "strengthen the application of the decree of 5 May"--the death sentence--and the recent party congress in Azerbaydzhan warned that republic's MVD chief, the state prosecutor, and the Supreme Court that they could expect "urgent corrective measures" if they failed to im- prove their unsatisfactory work. Still other MVD officials are likely to be removed and new legislative measures taken as Khrushchev seeks by all available means to reduce the embarrass- 1ng.l3r,,, high and economically harmful rate of crime in the Soviet Union. SECRET 25X1 28 Sept 6 J%pproved For Release pOEKLY REVIEW DP79-00927AO03300110001-5 EE Page 19 of 30 Approved For Remise 2005/04/22~?'I`RDP79-00927A0N6'00110001-5 CURRENT INTELLIGENCE WEEKLY RURAL REORGANIZATION IN COMMUNIST CHINA By easing bureaucratic controls over farming as part of the current reorganization of rural life, Peiping hopes to regain some of the ground lost in the ill-advised and poorly managed "leap forward" of 1958-60. Greater freedom is being granted the peasants for side occupations and culti- vation of private plots as well as in the development of free markets to handle the resulting products. To boost incentives, a return to a wage system re- flecting the amount of work performed rather than the time spent on the job is being stressed. Production units are to set work norms realists= cal1y, evaluate wage points according to the importance of the job, and award bonuses and penalties based on performance. In continuation of the re- treat from the centralized authority and bureaucratic ex- cesses of the communes, Peiping is endorsing the "right of self-determination of the pro- duction team." An editorial in People's Daily on 8 September argues that the teams best under- stand "the lessons of production failures during past years" and are most familiar with the farm- ing conditions of their areas. The article states that each team has the right to make its own decision on such matters as location and choice of plant- ing; employment of manpower; schedule of sowing; amount of seeds to be sown; and amount of fertilizer to be applied. Peiping apparently has come to realize that central direction in routine farming operations contributed to the poor harvest of the past two years. Contradictions between party policy and local conditions were in fact acknowledged by a recent article in Shanghai's Liberation Daily, which noted that o-FT n 77'0' 'dies and tasks formulated by the higher author- ities are not suitable to local conditions." As a result, it was admitted, there has been con- fusion among the party workers over their respective responsi- bilities "to the party and to the people." The regime continues in official announcements to retain the three-level concept of rural organization--the commune, the production brigade, and the production team. In general, however, the commune now is an empty concept, the brigade is the basic financial and accounting unit, and the team--comprising 30 to 40 households--is the operational unit in cultivation work. The team is apparently being subdivided into smaller units, called "work squads," which will do the actual farming. The team sets quantitative and qualitative norms for the various tasks, and the individual peasants receive work points according to fulfillment of these norms. Teams are admonished to refrain from "indiscreetly reshuffling" manpower in the squads or changing work and land assignments. The retreat on the farm front does not mean that Peiping has abandoned hopes for the commune, but the timetable has been drastically altered. The party journal Red Flag stated recently that T`a re a ively long period" will be needed to con- solidate and stabilize the three- level system before there can be a "gradual" movement toward ownership by the communes "in the future." Meanwhile, the brigade will be primarily re- sponsible for ownership and dis- tribution in rural areas, with Appoved For Release 2005/04?f- DP79-00927AO03300110001-5 28 Sept 101 WEEKLY REVIEW - Page 20 of 30 Approved For Release 2005/04/22 : CIA-RDP79-00927AW3300110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY the production team sharing in ownership of some land, animals, and farming implements. Although individuals are to be permitted land for their private use and will be allowed to follow sideline occupations, Peiping insists that this must not encroach on the collective economy. The products of this private activity may be ex- changed at rural markets within limits set by the government. The loosening of controls, decentralization of authority, and improved incentives are inadequate in themselves to pull the economy out of the agricultural slump, but they are realistic antidotes to the mismanagement and ineffi- ciency spawned by the regime's earlier programs. Over the long I run, however, agriculture needs better weather, an increase in the application of fertilizers, better management, and greater i rewards for the labor force. While the concessions now being granted should help rectify administrative difficulties, it is most unlikely there will be any prompt revival of en- thusiasm. Malnutrition has taken its toll during the past year and a half, and consider- able time may be required to rebuild the health and restore the morale of ':the peasantry, especially in view of the fact that the food supply is expected to be no better next winter than last, and may even be worse. (Pre- 25X1 pared by ORR) SHARPENING CHURCH-STATE CONFLICT IN POLAND Under a regulation issued by the Ministry of Education on 19 August, the Polish Govern- ment now claims the right to supervise religious instruction, which is to be conducted at specified locations designated as "catechism points." Classes in religion are to be limited to two hours weekly. Only licensed priests or lay instruc- tors may conduct the courses, and they will be paid by county governments. Members of reli- gious orders are to be barred from teaching, as are priests whom the regime considers "immoral" or who allegedly have used religion classes for "polit- ical purposes." Failure to comply with these.rules or to register a "catechism point" with the authorities will re- sult in "legal punishment." This regulation comes a few months after the regime, without any significant op- position from the church, banned the teaching of religion in schools and permitted it only in church buildings and private homes. The regulation opens a new area of conflict between church and state, which for some time have been dead- locked on questions of birth control and taxation. Cardinal Wyszynski, the Polish primate, declared on 26 August that the church would not accept the controls over religious instruction, which he said violated the 1957 church- state modus vivendi and in- truded on the authority of the bishops. His statement was followed by a meeting of Polish SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 21 of 30 Approved For Ruse 2005/04/22 : CIA-RDP79-00927A0'tl300110001-5 SECRET bishops at Jasna Gora Monastery near Czestochowa in late Au- gust to draft a pastoral letter, which was read on 2 September. The pastoral letter re- affirmed the Episcopate's in- .tention to continue offering religious instruction without submitting to administrative regulations or inspection by the Ministry of Education. It made clear that the church intended to choose its own teachers, including members of religious orders. The assembled bishops issued a private in- struction to all priests, monks, and nuns ordering them not to seek'a license to teach re- ligion or to accept payments from the state. A few priests apparently had signed contracts embodying the new restrictions, but some of them reportedly re- tracted their signatures after receiving the bishops' in- structions. Meanwhile, church authori- ties sent letters of protest to the premier, the marshal of the Sejm (parliament), and the director of the Office for Religious Affairs. The strength of the church's reaction apparently has had a somewhat moderating effect on regime officials, Although the Mixed Church- State Commission-was scheduled to meet officially for the first time in 16 months during Septem- ber, no session has been held. There had been hope in church. circles that the regime's will- ingness to participate in such a meeting indicated a desire to ease the tensions of the past two years between church and state., Other pressures continue, particularly against the Catholic University at Lublin, which is threatened with extinction by taxation or with becoming es- sentially, a school for clerics --without the participation of its present large numbers of secular students. Although the regime will not renounce its purpose of con- trolling religious instruction, it is aware of the possibilities of disturbances and demonstr tions if it presses too fast. Since the Episcopate has taken such an openly adamant position on the question of control of religious education, it is possible that a temporary com- promise may be reached in th next few weeks. Such a compromise would be embodigd in one of the amorphous church-state understand- ings which have no legal force and do not bind either side to re- nounce its ultimate goals, Since March, Cardinal Wyszynski has on several oc- casions demonstrated the extent of the support he commands among the Polish people. His health, however, reportedly is poor; now 60, he appears to have been incapacitated for short periods at least three times since last December. Wyszyn- ski's death or permanent inability to function as primate could seriously impair the strength and effectiveness of the Episcopate. Moreover, the problem of choosing his successor could aggravate existing divisive tendencies within the Polish church hierarchy which he now keeps under control, 25X1 SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 22 of 30 Approved For-Release 2005/04/22 : CIA-RDP79-00927 kb3300110001-5 SECRET 25X1 Belgrade is seeking to counteract the negative reaction in the West to Tito's thorough support for Soviet foreign policies in his speech to the conference of nonaligned nations of 3 September. Yugoslav offi- cials have implied to Western diplomats that the speech did not signal a change of policies and that Belgrade still main- tains impartial positions. A well-informed Yugoslav Foreign Ministry official implied to Ambassador Kennan on 19 September that Tito was draft- ing a letter--soon to be made public--to Khrushchev urging a cessation of nuclear tests. The Foreign Ministry offi- cial added that the conference was a setback for the Soviets, since it had clearly established that the nonaligned states were free of Moscow's control. He also claimed that Tito's interview with Italian newsmen on 10 September was, in effect, a challenge to Soviet control of foreign Communist parties, since Tito had enjoined these parties to espouse the policies laid down at the Belgrade conference. On 18 September, a Yugoslav trade union offical told a US Embassy officer that Yugoti' slavia had turned down an in- vitation to attend the recent meeting of the World Federation of Trade Unions in East Germany because attendance would have been inconsistent with Belgrade's nonaligned status. Yugoslav propaganda organs ,are contributing to the effort by resuming attacks on bloc states. On 10 September, the authoritative Belgrade daily Borba carried an article from its Moscow correspondent which depreciated the Soviet economic planning apparatus. On 15 September, Belgrade complained bitterly about Soviet publica- tion of a book attacking "Yugo- slav revisionism" and asked: "What is the meaning of this systematic activity against Yugoslavia, which only a few days ago was. described by the first secretary of the CPSU as a socialist country?" In a similar vein, East Germany has been criticized for not giving publicity to a visiting Yugoslav ballet troupe, Czechoslovakia for not giving enough coverage to the non- aligned conference, and Bulgaria for coveting Yugoslav Macedonia. Yugoslavia is engaging in particularly heated propaganda exchanges with the Chinese Communists and Albanians; in sharp contrast to the other bloc states, China and Albania are charging Tito with working for the West at the Belgrade conference. On 19 September, Belgrade concluded a trial of persons accused of plotting to annex to Albania the Albanian minority region of Yu oslavia. 25X1 SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28_ Sept 61 WEEKLY REVIEW Page 23 of 30 Approved For Rase 2005/04/22 : CIA-RDP79-00927ASW300110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY DOMINICAN REPUBLIC Political developments in the Dominican Republic are al- most at a standstill pending a decision by opposition political groups on President Balaguer's offer of 19 September to accept them`in.a coalition government. Similarly pending is the report of the special OAS subcommittee now in the country to ascertain whether present conditions warrant any relaxation of OAS sanctions against the regime. The opposition groups want the sanctions continued, or even intensified, to make, the regime restore civil liberties; they would regard any easing of the sanctions under present circum- stances as equivalent to US abandonment, of the Dominican people to a tryannical regime. The government maintains that failure to lift the sanctions promptly would demonstrate the futility of Balaguer's liberali- .zation program and lead old- line military officers to seize the government. Government leaders also emphasize the dangers of a deteriorating economic situation with an un- employment rate variously estimated at vetween 30 and 50 percent of the labor force. Opposition leaders have agreed with President Balaguer to "consider" his offer to accept them in a coalition government and are negotiating among them- selves on the concessions they would demand. Among the chief obstacles is Ramfis Trujillo's continued control of the basic elements of power in the re gime. Ramfis appears to be groom- iing a: successor--presumably Maj. Gen. Fernando Sanchez. The 33-year-old Sanchez, pres- ently chief of staff of the air force, has been a close companion of Ramfis since childhood. Some officers resent his rapid promo- tions; he also suffers from army and navy resentment of the air force, toward which Ramfis has shown special favor- itism. Opposition leaders would probably view Sanchez' assump tion of Ramfis' job as a shift signifying no real change; they have named several high-ranking officers who. would be acceptable to them in the post, but most of these are probably in the category of older officers, many of whom have been retired since May. Lt. Col. Simmons, US military liaison officer in the Dominican Republic, reports that General San- chez is actually Ramfis' de facto chief of staff and, although he is nomi- nally beacr of the air force, his authority extends over the other services. Simmons SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 24 of 30 Approved For R&r6se 2005/04/22: CIA-RDP79-00927A08 00110001-5 SECRET CURRENT INTELLIGENCE .WEEKLY SUMMARY 25X1 25X6 25X6 considers Sanchez "quite capable of engineering an authoritarian coup," and notes the apparent absence of any moderate, progres- sive leadership among the of- ficers on active duty in the armed forces. The military power center is at San Isidro Air Base, the air force headquarters about eight miles outside the capital where the air force ground unit --the country's only significant mobile tactical force--is based. The army, on the other hand, is actually an oversize gen- darmerie, fragmented into company-size garrisons through- out the country. The navy is not a cohesive force and would probably count for little in any power struggle. An additional obstacle to Balaguer's plan for a coalition The Lopez Mateos government is taking strong action against all suspected antigovernment activity as a result of a series, is his intention of accepting 25X1 the opposition groups on an equal footing with the discredited official political machine, the Dominican Party. Gangs armed with sticks and lead pipes are making a growing number of attacks on. oppositionists. In the past these gangs have been associated with Arismendi T5~ujlllo, Ramfis' ruthless and politically ambi- tious uncle. Although they were disarmed early last summer at Ramfis' insistence, there have been recent rumors of their renewed activity. 25X1 IBalaguer is seri- 25X1 ously considering a New York to address trip to the UN General Assembly in an effort to publicize the progress in his democratization program. 25X1 of apparently coordinated revolu- tionary outbreaks in central and southeastern Mexico in mid- September. There is some basis SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 25 of''30 Approved For Ruse 2005/04/22: CIA-RDP79-00927AGB600110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY in fact for the administration's explanation that economic con- ditions in rural areas are so bad that ignorant and desperate peasants are susceptible to antigovernment agitation.;. This official line, however, was belatedly offered after strenuous efforts to minimize the extent of the outbreaks. Violent uprisings have been relatively rare in recent decades in Mexico; those this month involved at least 60 deaths. When 75-year-old retired General Celestino Gasca was arrested before the uprisings occurred, the administration described him as a nearly harmless chronic revolutionary and intimated that his plot was smashed. After the outbreaks, he was induced to confess re- sponsibility for at least one of them and charged with several other serious crimes. Gasca has had both leftist and right- ist ties. He was arrested with arch-conservative Jorge Siegris, head of Mexico's discredited Sinarquista movement, so. the government will probably link Gasca with the rightists, in- cluding the moderately con- servative party of National Action, chief among Mexico's unimportant opposition parties. The government remains uncer- tain, however, as to which elements actually organized the outbreaks. The most obvious political activity in Mexico recently has been by rightists, backed by the Catholic Church, against Castroite, Communist, and other leftist forces. Although the rabid anti- clericalism of the Mexican Revo- lution has noticeably abated in the past 20 years, the US army attache reports that resumption of political activity by the church has already resulted in a marked anticlerical reaction. This has helped leftist elements in their efforts to gain polit- iea5.! support. The attachefbe- lieves that some clerics have contributed to the church's vul- nerability by extending their efforts beyond a purely anti- leftist campaign with the evi- dent motive of regaining politi- cal power for the church. The government apparently fears that any crackdown on rightists may help the leftists, led by former President Lazaro Cardenas, to exploit the strong appeal of anticlerical and revolutionary traditions in Mexico. Perhaps as a precau- tionary measure against such tactita, it reportedly has already arrested several Commu-- nist,party members in connection with the uprisings 25X1 SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 26 of 30 Approved For Rase 2005/04/22: CIA-RDP79-00927A0 300110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 25X1 Brazilian President Joao Goulart appears to have strength- ened his political position steadily during the past three weeks, despite the constitution- al` amendment of 2 September transferring executive power to a prime minister. Prime Minister Tancredo Neves seems to be working with Goulart rather than competing for power. Goulart and his political allies have dropped their campaign for an early plebiscite to rescind the constitutional amendment, In the distribution of cabinet posts on 8 September, the President apparently failed to secure the lucrative Public 6Norks Ministry portfolio for a member of his Labor party, but men from his home state of Rio Grande do Sul have been appointed to several key eco- nomic posts, including the presidencies of the Bank of Brazil and of the Economic De- velopment Bank. The head of the President's civil"household" --a post normally reserved for the chief political "fixer"-- is Professor Hermes Lima, who criticizes the US economic system but insists that Brazil must align itself with the United'States politically. Pro- US Antonio Balbino, former gov- ernor of Bahia, is also acting as political assistant to Gou- lart. The strongly anti-Com- munist General Amaury Kruel has been appointed head of the mili- tary"household." The Brazilian Communist party (PCB) and Peasant Leagues leader Francisco Juliao are re- ported hopeful of actions and appointments by the new adminis- tration which will allow them to increase their influence. Goulart has appointed Raul Riff, a Commu- nist party member, as his private secretary. The new attorney gen- eral, Evandro Lins, who accompanied Goulart on his recent trip to Pei- ping has a long record of support- ing Communist causes, has attended Communist international meetings, and has acted as legal counsel for Communists, although he appar- ently has not been active in such matters in the past five years, The new chief of police in Brasil- ia, army Colonel Carlos Cairoli, is also reported to have Commu- 25X1 nist associations. Goulart's initial public statements have been devoid of radicalism. In a message to Congress concerning the econom- ically depressed northeast, for instance, he recommended that the development program for the area include the cre- ation of small, individually owned farms and be free from all political and partisan influence. Goulart's address on 23 September to a large reception,which included a sizable Communist=led student and labor group, was generally cautious, although he did emphasize his association with Getulio Varga--Brazil's one- time dictator and self-styled "father of the poor." 25X1 SECRET 28 Sept proved For Release 20flk2i :f r 79-00927A0033001100~l-ae 27 of 30 Approved For RbWase 2005/04/22 : CIA-RDP79-00927A 00110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY THE WEST INDIES FEDERATION Jamaica's decision in the did, in which event Britain 19 September referendum to with- draw from the West Indies Fed- eration has occasioned a series of London visits by West Indian leaders--starting with Federal Prime Minister Adams on 25 Sep- tember--to confer with Colonial Secretary Macleod on future prospects for the area. The vote, which is expected to mean an early move toward sep- arate Jamaican independence, is a severe blow to the prestige of Jamaican Premier Manley, who had campaigned hard for federa- tion. It leaves Trinidad's Pre- mier Eric Williams, who has often shown bitter hostility toward the United States, the dominant figure in the: area. British officials consider the Jamaican voters' decision final and see Trinidad's atti- tude now as crucial. Williams has said that his country would leave the Federation if Jamaica would be left with three sep- arate groups: Jamaica, Trinidad, and the smaller islands. London thinks it at least possible, however, that Trinidad might consider joining the small- er islands in an eastern Carib- bean federation if that federa- tion's financial and economic position were underwritten by Britain. The American consul in Trinidad reports that Gover- nor Hochoy also believes some- thing along this line might develop, but only if the leaders of the small islands take the approach with Williams that he is in effect "a new Moses lead- ing the people out of the wilder- ness." US officials in Trinidad, however, believe it unlikely that Williams would join with the smaller islands in any such group- ing, since Trinidad's own inter- ests would prevent its assuming West Indies Federation PUERTO RICO VIRGIN Anguilla fr. ISLANDS Barbuda OCEAN St. Christopher- .'. Antigua and Nevis- ? Guadeloupe Montserrat- C~' `Dominica C Martinique Of Lucia St. Vincent, Barbados Grenada,' BRITISH GUIANA SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 28 of 30 Approved For Relffi'ase 2005/04/22 : CIA-RDP79-00927A0b8+S00110001-5 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY the economic burdens of the other units. Williams' silence so far on the referendum re- sult and his refusal to meet with Adams prior to the latter's departure for London has strengthened the impression that he intends to seek Trin- idad's independence as soon as possible. As the key figure in the situation now, however, he can afford to bide his time and may continue to avoid tak- ing a public position until after his country's elections scheduled for later this fall. The collapse of the Fed- eration also comes at a time when Williams has been complain- ing that Trinidad is being slighted in the implementation of the US-Federation Defense Areas Agreement of February 1961. Although Trinidad remains legally bound by the agreement, Williams now may seize on Ja- maica's departure from the Fed- eration as a pretext to seek renegotiation in the hope of securing more favorable arrange- ments for Trinidad. 25X1 25X1 Developments in the Congo, particularly the UN's action against Katanga and the report- ed exodus of white settlers from the area, will stimulate strong right-wing criticism of Belgium's coalition government when parliament reconvenes early next month. Powerful economic groups with business interests in the Congo have criticized Foreign Minister Spaak for cooperating with the UN in reducing Belgian person- nel there. Spaak told Ambas- sador MacArthur on 23 September that he was resisting strong pressure from the press and conservative anti-UN elements in Belgium to blame the UN pub- licly for the Katanga situation, but that he could not exaggerate the seriousness with which the Belgian Government viewed the recent events. Fiscal reform and eco- nomic expansion are a basic problem, despite the current business boom. The government-- a coalition of the Social Christian party, led by Prime Minister Lefevre, and Spaak's Socialist party--is attempting to terminate, or at least reduce, deficit spending by reforming the tax system and curtailing abuses in social welfare. Fis- cal reform is a prerequisite for any program of economic ex- pansion to stimulate the eco- nomic growth of the country and to offset the decline of the coal industry in southern Bel- gium, but for divergent reasons the left wing of the Socialist party and especially the right wing of the Social Christian party have reservations over the government's objectives. The finance minister has re- cently expressed guarded opti- mism over the possibility of obtaining parliamentary approval of his proposed reforms, which he hopes will put Belgian pub- lic finance in a healthy condi- tion in two or three years. The rivalry of the French- speaking Walloons in southern Belgium and the Dutch-speaking Flemings in the north has be- come more acute with the in- creased activity of the Mouve- ment Populaire Wallon (MPW) a federalist movement under the leadership of Andre Renard, a radical Socialist and former official of the Socialists' SECRET Approved For Release 2005/04/22 : CIA-RDP79-00927A003300110001-5 28 Sept 61 WEEKLY REVIEW Page 29 of 30 LCONFIDENTIA, Approved For Reuse 20 -RDP79-00927AOW00110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY central trade union organiza- tion, the FGTB. Renard, whose aim is believed to be the for- mation of a Socialist Walloon republic within a federal state, is seeking to capitalize on the fears of the Walloon population that the Flemish majority will dis- criminate against the area po- litically and economically. The Belgian Communist party has al- ready succeeded in infiltrating the MPW. The government hopes to fix the linguistic frontier be- tween the two language groups and is also considering creat- ing a special commission to study the question of more cul- tural autonomy. It is also planning new economic develop- ment measures to stimulate the economy of southern Belgium. The moderates, however, are sub- ject to pressure from their ex- tremist groups. The growing strength of the MPW, which is BELGIAN PARLIAMENT MARCH 1961 ELECTION largely Socialist, has exerted a divisive influence on the So- cialist party and on the FGTB. Despite the many problems facing it, the coalition, formed in April after the parliamen- tary elections, is expected to survive, chiefly because there is no practical alternative. 'NFIC)"'NITIAL 01*11iw Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 WEEKLY REVIEW Page 30 of 3?0 25X1 25X1 Approved For Rase 2005/IP79-00927A300110001-5 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SPECIAL ARTICLES SINO-SOVIET BLOC AID TO AFRICA* The Sino-Soviet bloc aid program in Africa began in late 1958 and early 1959 with the provision by Czechoslovakia and Poland of small medium-term credits to Ethiopia and Guinea for hospital and railroad equip- ment. In mid-1959, the Soviet Union extended relatively large lines of credit to both those African countries for general economic development. In the two years since then, the pro- gram--in which all the major bloc countries now are partic- ipating--has grown both in size and scope and includes military as well as economic assistance. More than half the aid ex- tended by the bloc to underde- veloped countries in 1961 was for African countries. Africa now accounts for 12 percent of total bloc economic assistance extended since 1954. Economic and Military Aid Over $500,000,000 in eco- nomic credits and grants have been extended to seven African countries by the Sino-Soviet bloc for a wide variety of projects including agriculture and irrigation, health and wel- fare, mineral exploitation, transportation, and industry. Less than 5 percent of this aid, however, has been delivered, and only in Guinea has the pro- gram made significant headway. As in other underdeveloped areas, the bulk of the aid pro- vided to Africa is from the USSR, with Czechoslovakia a dis- tant second. Communist China has the Egyptian region of the UAR is not included for purposes of this article. extended only two credits in Africa--one to Guinea and one to Ghana--but these are of suf- ficient value to rank China next to Czechoslovakia in'.im- portance. Peiping has also agreed in principle to give aid to Mali. In addition to economic aid, bloc creditors have given varying amounts of military as- sistance directly to Mali, Guinea, Morocco, and Sudan and indirectly to the Algerian reb- els. This aid has consisted largely of land armaments. Morocco is the only country to have received military aircraft --twelve MIG-17 fighters and two MIG-15 trainers from the USSR. A recent order by Nkru- mah to send 400 cadets to the USSR for military training sug- gests that an arms aid agree- ment with Moscow may be under negotiation. Bloc aid to the Algerian rebels has consisted of limited amounts of military equipment from the USSR and Czechoslo- vakia shipped through Morocco, Tunisia, and Egypt, as well as some financial aid. Communist China in 1959 also granted such aid--some $12,000,000 in the form of funds and equipment. Although the bloc supplied some military aid to the Lumumba SINO-SOVIET BLOC ECONOMIC AID TO AFRICA (value in million dollars) Ethiopia 101.8 11.8 113.6 Ghana 53.4 37.1 19.6 110.1 Guinea 58.1 23.3 26.5 107,9 Mali 48.5 12.5 61.0 SonoS Republic 52.1 5.6 57.7- Tunisia 27.5 8.0 35.5 Sudan 22.0 22,0 CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 SPECIAL ARTICLES Page of 9 25X1 'CONFIDENTIAL Approved For Reuse 2005/ 79-00927A0`98l300110001-5 CURRENT INTELLIGENCE WEEKLY $JRy regime in the Congo in mid-1960, its efforts to supply the Gizen- ga forces were unsuccessful. Small"Amounts of financial as- sistance, however, reached Stan- leyville from Communist China, and possibly from the USSR and the European satellites as well. Technical aid--always an important part of the bloc eco- nomic and military assistance programs--has included the pro- vision of technicians to build, operate, and maintain facilities as well as to train local per- sonnel; the bloc has also pro- vided scholarships for Africans to be trained in the bloc. It is estimated that during the first six months of 1961 there were 1,640 bloc economic tech- nicians in Africa--most of them Soviet nationals in Guinea--and 60 bloc military technicians PRINCIPAL AFRICAN EXPORTS TO BLOC, 1960 Commodity Exporter Amount (1,000 metric tons) Cocoa Beans Ghana 37.5 Nigeria 9.4 Sudan 15.9 Nigeria 1.8 Wool South Africa 20.6 Calcium Phosphates Morocco 48.0 PRINCIPAL AFRICAN COUNTRIES TRADING WITH SINO-SOVIET BLOC Value (million dollars) 22.5 5.5 20.0 1.2 14.6 9.5 Value of Bloc Trade Bloc Trade as % (million dollars) Total Trade Exports Imports Ghana 5 22.5 Guinea 33 12.6 Morocco .5 16.0 Nigeria 3 9.6 Sudan 11 23.6 Tunisia 3 3.9 South Africa 1 18.9 Approved For Release 15.0 22.0 22.7 16.7 16.7 6.7 14.5 in Morocco, Guinea, Sudan, and Mali. Within the bloc an esti- mated 80 African nationals are in military training programs, 1,115 are in academic institu- tions, and 155 are receiving on- the-job training. Under re- cently concluded agreements, the number receiving bloc train- ing is scheduled to increase substantially in the next few years. Trade The growth of bloc-African economic ties in the past two years has been accompanied by an increase in trade. Guinea's trade with the bloc now accounts for one third of its total trade. The bloc in 1960 imported from Africa over $115,000,000 worth of commodities--mostly cocoa beans, palm kernels, rubber, cotton, fertilizer, wool, pea- nuts, coffee, bananas, and iron ore--and delivered about $125,- 000,000 worth of textiles, ce- ment, foodstuffs, petroleum, consumer durables, and other goods. Three commodities-- cocoa beans, cotton, and wool-- made up more than half of all exports to the bloc in 1960 from independent African coun- tries. Most of the cocoa beans were shipped to the USSR, with the cotton and wool going to both the USSR and China. Despite the USSR's curtail- ment of cocoa purchases, its trade with Africa probably will reach a new high this year. Pre- liminary reports indicate that exports of Sudanese cotton to the bloc will be considerably higher this year than last. In the first half of 1961, the IIA.0927A003300110001-5 _"28 Sept 61 SPECIAL ARTICLES Page 2 of 9 tt F g?~NTIAL Approved For Re~'ease 20 2 79-00927AO~b'300110001-5 1 .42=aft CURRENT INTELLIGENCE WEEKLY SUMMARY USSR supplied virtually all of Guinea's petroleum imports and unknown quantities to Mali. Peanut exports under Malian contracts with the USSR and Czechoslovakia have also in- creased. Under recently negotiated commercial arrangements, this upward trend can be expected to continue. Ghana and the USSR are expected to sign a new trade agreement under which the USSR will promise to take up to 60,000 tons of cocoa by 1965, almost double that purchased in 1960, and .China and Ghana have already signed a five- year trade agreement providing for annual exchanges more than five times the level achieved in 1960. Guinea,. one of the first African recipients of bloc eco- nomic assistance, is the only one in which there has been significant progress in imple- menting the aid projects. Bloc economic activities there over the past year have increased substantially, and it is ex- pected that over the next, much of the $108,000,000 in bloc aid extended will be used rapidly. More than half of it is. from the USSR, and most of the remainder from Communist China and Czechoslovakia. Among the more important Soviet projects in Guinea are construction and modernization of railroad, highway, port, and airport facilities, and con- struction of a large technolog- ical institute and of petroleum storage facilities. Other projects range from construc- tion of hotels to establishment African Countries Receiving Sino-Soviet Bloc Aid 0 Economic aid go--Military aid Financial aid of a large rice plantation.. Most of theseprojects will prob- ably be completed in the next two years. Moscow has also agreed to participate in Guin- ea's priority Konkour6 River development plan, but appar- ently is not yet committed to build the large dam which the Guineans desire. The Soviet Union and sev- eral of the European satellites are also helping the Guinean Government to establish national service facilities. An airline, Air Guinea, was formed with Czech aid and now is operating with Soviet and Czech-built aircraft. East Germany is set- ting up a national printing of- fice and, along with Czecho- slovakia and the USSR, is con- structing three powerful radio transmitting stations for the first iGuinean~ - :,natidnb t :+. CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927A003300110001-5 28 Sept 61 SPECIAL ARTICLES Page 3 of 9 C.VNML3tN I IAL Approved For RPrease 2005/ 79-00927AW3300110001-5 broadcasting facility. Poland and Hungary are also providing small amounts of aid o Guinea-- Poland for a state fishing in- dustry and Hungary for a hydro- logical survey. The Chinese Communist aid pr.~ o,gram in Guinea, in addition to a ni mber of agri- cultural and light industrial projects, calls for tt: (_, con- struction of several san(a,1 ? dams for electric power and the erec- tion of the nationa.i assembly building. As bloc aid p: c,.: ots in Guinea have progressed to the implementation stage, tr:e num- ber of bloc technicians has in- creased from about 400 at the end of 1960 to over 1,200 by June 1961--an estimated 430 were from the USSR, 620 from the European satellites, and the remainder from China. Over 3.35 were working in government ministries, and almost 200 were teachers. About 570 Gui- neans are receiving military, technical, or academic training within the bicc. Ghana The bloc aid program in Ghana has grown rapidly since it was initiated in August 1960. The USSR has announced that it is prepared to supplement the development credit it extended to Ghana last year, and a Soviet Ghanaian military agree- ment appears to be in the off- ing. To date, five bloc coun- tries have extended a total of $110,000,000 in aid to Ghana. However, most of the projects enumerated under the various Approved For Release 2 aid agreements are still in the preliminary planning stage, and virtually none of the develop- ment credits has yet been util- ized. For the most part, proj- ects will not begin until 1962. The only aid actually drawn by Ghana was some $10,000,000 of a $13,700,000 credit from the USSR for purchases of IL-18 transport planes for the na- tional airline. Projects earmarked for Soviet aid include the con- struction of a 200,000-kilowatt hydroelectric project at Bui on the Black Volta River, estab- lishment of state farms, con- struction of fish-processing plants, and development of a housing project in Accra and Tema. Under a separate agree- ment the USSR has also promised a small nuclear reactor. On 4 September 1961 it was an- nounced that Ghana and the USSR had signed a contract under the credit agreement providing for Soviet delivery of $2,800,000 worth of tractors and farm im- plements and for a team of Soviet specialists to investi- gate the feasibility of con- structing a tractor plant and metallurgical enterprises. A total of $37,000,000 in credits has been provided to Ghana by Poland, Czechoslovakia, East Germany, and Hungary for construction--in which the four satellites plan to participate-- of numerous small light indus- trial plants. China in August of this year extended a credit of $19,600,000 to Ghana for un- specified equipment and techni- cal assistance. N FM TIAL27AO03300110001-5 28 Sept 61 SPECIAL ARTICLES Page 4 of 9 CONFIDENT A Approved For Rase 2005/04/2 9-00927Adf300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY Of a total of 205 bloc technicians estimated to be in Ghana in June 1961, almost all were sent from the USSR for op- eration and maintenance of air- craft. This number has been increased somewhat in recent months by an influx of techni- cians for survey work. The number of Ghanaians training in the bloc--some 435 as of June--may increase substantially in the near future. Several re- cent developments--such as the announcement that about 150 Ghanaians will soon go to Mos- cow for training as pilots and engineers for civil aircraft and the decision to send a large number of cadets for military training--indicate that progress is being made toward Nkrumah's announced goal of sending 3,000 to the bloc for training. Ethiopia Ethiopia was the first African country to receive bloc aid. During the period Novem- ber 1958 to July 1959, the USSR and Czechoslovakia extended a total of almost $114,000,000 in aid--more than any other Afri- can country has received to date. Since that time, however, the program has been practically at $10,000,000 from Czechoslovakia has not even been obligated for specific projects. The few projects mentioned for Soviet aid--anoil refinery at Assab, a geological survey, a metal- lurgical survey, and a gold ore processing plant at Adola--have not progressed beyond the prelim- inary planning state. About 120 bloc economic technicians are in Ethiopia, and about 20 Ethiopian students are studying in the bloc. Mali, which received bloc aid only this year, is becom- ing an increasingly important target in the bloc economic of- fensive in Africa. In the last seven months it signed aid agree- ments with Czechoslovakia and the USSR covering some $57,000,- 000 in credits for a wide variety of projects including bloc par- ticipation. Czechoslovakia has promised to help construct plants for production of flour, tex- tiles, bicycles, and agricultural machinery, as well as to provide hospital equipment. The Soviet Union's $44,400,000 share of the credit covers mineral prospect- ing, navigational development of a standstill. Only about the Niger River, railroad improve- $4,000,000 of the aid extended ments, and construction of a has been drawn--half in the form training center, a cement plant, of convertible currency from the and a stadium. Both Czechoslo- USSR, and half for Czech hospital vakia and the USSR have extended equipment and supplies and for credit for the purchase of civil construction-of a technical school at Baherdar-Giyorgis being given as grant aid by the USSR. A Malian mission now is in i Peiping, and announcement of an Most of the remaining aid agreement with Communist $100,000,000 from the USSR and China is expected. Approved For Release 2005/Q /2~. f 7P79'0'0A03300110001-5 28 Sept 61 SPECIAL ARTICLES Pages of 9 NFIDENTIAL Approved For F tf`ease 2005/04/22 l -00927AO3300110001-5 Other Aid Recipients Tunisia in November 1960 received an $8, 000, 000 credit :from Poland, of which $1,600,000 has been obligated for a metal products factory, and in August 1961 a $27,500,000 credit from the USSR for the construction of three dams and a technolog- teal school. Czech and Bulgarian technicians have been active in. Tunisia this year in connection with equipment maintenance and city planning. The general framework was :laid for greater economic ties (between the bloc and t-~e Somali i Republic this year with the pro- I vision by Czechoslovakia and the USSR of credit facilities amounting to about $56,000,000 for as yet unspecified develop- ment projects and commodities. j In addition the USSR has prom- ised to build hospitals, a .printing plant, a school, and 1 ,a radio station on a grant basis, and Czechoslovakia will 1 ,contribute a technical school. cently arrived in Mogadiscio un- der these agreements. About 50 Somali students are in bloc academic institutions, Sudan was given a $22,000,- 000 credit by the USSR last July for construction of canning fac- tories, granaries, several tech- nical educational centers, and an agricultural research center. Sudan also has sent a large number of academic students to the bloc. Several developments indi- cate that, in addition to bloc military aid, Morocco may soon also receive economic aid. An economic and technical coopera- tion agreement concluded in May suggests possible Czech aid for a sugar refinery, tex- tile plants, and a mineral processing plant. Soviet tech- nicians are studying the port areas of Alhucemos and Tangier in connection with a proposed shipyard, Although Nigeria has not yet received any aid from the bloc, during the Nigerian fi nance minister's recent tour: of the bloc several countries expressed willingness to make aid available. Outlook The bloc's intention to continue to expand its partic- ipation in African develop- ment plans is indicated by the recent overtures to ini- tiate programs in the Congo (Brazzaville) Republic, Niger, Nigeria, and Morocco. As ex- isting aid agreements are im- plemented, moreover, bloc ac- tivities in Africa will be greatly intensified. In the next year a large influx of bloc technicians and increased deliveries of machinery and equipment, particularly to Ghana and Mali, can be expected. Military assistance will prob- ably also increase, not only to those countries which have already received it but to other countries which indicate receptivity. Bloc-African: ?ttade un-~? doubtedly will grow. Bloc ex- ports to African countries will become more diversified and include more machinery and equipment. Also more of Afri- ca's agricultural commodities will probably be sold in the bloc markets, particularly if world market conditions de- teriorate. (Prepared by ORR) CONFIDENTIAL Approved For Release 2005/04/22 : CIA-RDP79-00927AO03300110001-5 28 Sept 61 SPECIAL ARTICLES Page 6 of 9 25X1 Approved For Ruse 2005/0 79-00927A300110001-5 CONFIDENTIAL CURRENT INTELLIGENCE WEEKL,'Y 8TJ'M~iARY BUDAN'E6E ~RES'IDENT ;ABBOUD General Ibrahim Abboud, who begins a state visit to the US on 4 October, has been 1?Gresident of the Sudan since 1? November, 1958, when he and a group of other senior army officers seized control of the govern- ment in a bloodless coup. Ab- boud took full control, retain- ing his command of the army and assuming three additional positions; president of the newly created Supreme Council of the Armed Forces, prime minister, and minister of de- fense. Abboud appears to be a sincere patriot, disgusted by the corruption among the civil- ian politicians, convinced that nonparty government is best for the country, and aware that the anmy is one of the few instru- ments capable of bringing about a change. On assuming power, he was quick to emphasize that the military government was transitional and that its goal was to restore political and economic stability. At the time of the coup, the Sudan was facing an eeono ~- ic: crisis. Unrealistic polar ?~ Gies had priced Sudanese cotton out of the world market, and the country had a large stock- pile of unsold cotton and a shortage of foreign exchange. The new government brought its cotton prices down and sold off the surplus. It also stepped up a number of impor- tant agricultural development projects stalled by the general economic paralysis and took a few steps in the field of in- dustrial development, but has yet to initiate an over-a11 plan. Abboud has been critical of the level of American aid to tl~e Sudan, and undoubtedly wi?11 seek during his visit to have it raised. In discussing the trip with the American ambassador, a number of Sudanese off icials have emphasized heir need to demonstrate to the Sudanese people that the visit has pro- duced tangible benefits. The military regime has never gained broad public support, and~Abboud will probably try to obtain-same sort of dramatic "impact" pro~- ~ctL.which he can use to in- crease his prestige. Background and Personality Abboud was born in 1900 in the Red Sea village of whammed Qol. He completed his secondary education in 1914 and entered the engineering school of the Gordan Memorial College. In 1917 he entered the military school in Khartoum and a year later was graduated and commissioned second lieutenant in the engineer cops. Abboud first served with the Egyptian Army but trans- ferred to the Sudan Defense Force (SDF) when it was organ- ized in 1925. During World War II he served in the Eritrean and North African campaigns. After the war he rose steadily in rank and in 1948 was placed in charge of the Sudanese Camel Gorps. In 1954 he was promoted to major general and made deputy commander of the SDF; in 1'.956? -,25X1 he became commander-in-.chief . CONFIDENTIAL Approved For Release 2005/04/22: CIA-RDP79-00927A003300110001-5 28 Sept 61 SPECIAL ARTICLEa Page 7 of 9 Approved For~rR~lease 2003/04~Z2~~~"RDPT9-VO'92 A 03300110001-5 CURRENT INTELLIGENCE WEEKY,Y SUMMARY Foreign Policy Abboud is oriented toward the ~Yest .beCause~?of .,t~xe turn's ecoh.omic anc~ ~~o~.;~t;i;:;~.I:, t.~.es with I3ri;t;p.a.n hid Isis own close association wx~h they Briti:~h ;~nl,litaxy': He has sough, ~lio~ve~+er, to avoid former Prime Minister Khal~.~l's policy of close alignment and ha,s proclaimed an official ,policy of "neu.tralis~n" for the Sudano In practice, his has been a policy of "timid neu- tx~?alism" apt best, designed primarily to keep the Sudan in good standing with the Afro- Asia.n nations, while avoiding a.~ny kind of internation~]. in- vol~vement Abboud has particularly tried to improve the Sudan's relations with Egypto In 1959 the two countries reached an amicable settlemznt on the question of the distribution of the Nile waters. Nasir, in turn, has indicated both pub- licly and privately that he regards the Abboud regime as the best that can be hoped for in the Sudan, and his inter- ference in Sudanese politics has decreased markedly since Abboud came to power. In 1960 the two leaders exchanged state visits, and relations between them are cordial. The military government has given an increasing amount of vocal support to nationalist and independence movements throughout the world, but has avoided aligning itself with the more radical neutralist states. In the case of the Congo, Abboud, while condemning "imperialist maneuvering;" has stanchly supported the UN effort and refused to a11ow Antoine Gizenga's foreign backers to ship supplies across the Sudan tp Stanleyville. Abboud has generally taken a dim view of the various "neu- tralist" conferences; he declined invitations to both the Monrovia and Casablanca conferences and accepted a bid to the xecent Belgrade meeting only when it appeared that his absence would be conspicuous. After Abboud returned to Khartoum, Ambassador Moose expressed to h'im dismay at the mild reaction among the Belgrade delegates to the USSR's resumption of nuclear testing. Abboud 's rely was, "How could we have reacted strongly to the Soviet action? Our speeches had al- ready been ~,vritten." Abboud is primarily a military man and seems to have a limited understanding of international affairs. One observer commented that the Sudanese leader tends to be swayed by the "last man through the door." Abboud has made an effort to even the balance in the Sudan's East-West relations and to stem domestic criticism of pro-Western moves by estab- lishing closer official rela- tions with the Sino-Soviet bloc. In duly he made a ten-day state visit to the USSR during which he concluded a $2,000,000 eco- nomic agreement providing far the first Soviet aid to the:,Sudan. Although he was critical of certain aspects of the trip, it appears that he was genuinely impressed by his red-carpet treatment, and since his return the Sudanese press has been filled with articles praising the USSR. ,; CONFIDENTIAL 2t3 Sept 61Approved For Relea~~~/2~R~~79-00927A00330011000~~ge 8 of 9 C.UI'rIFIDEI?JTIAL Approved For F~'fease 2005/04/2 79-00927A~3300110001-5 CURRENT INTELLIGENCE WEEKLY SUMMARY Opposition to Abboud's gov- ?rnment in recent months has centered among the old civilian politicians seeking to oust the military regime and regain power. Led by Siddiq al-Mahdi, Imam of the influential 1, 500, - 000-member Ansar religious sect, the politicians have presented a series of notes demanding that the military rulers take immediate steps to restore civilian government. The Su- preme Council at first ignored the notes, but when the opposi- tion's tactics became increas- ingly bolder and were threaten- ing to leeld to civil disturb- ances, the government arrested l~ of the opposition leaders. Although the Mahdi was not among those arrested, he was warned to discontinue all ,political activity. In a showdown with the gov- e rnment, the Mahdi could prob- ably cause considerable trouble by calling out his Ansar follow- ers, many of wl~r~m are armed, albeit px~imiti;v~]1_y .. He has, however, been reluctant to giv? a signal which could lead to c.ivi:l sti*i,fe,; and despite urging by a number of his followers that he take mare vigorous action in support of his demands, the Mahdi has been attempting to settle his dispute with the government through negotiations. He is reportedly planning to meet with representatives from the government in the near future. Abboud may try to plae~, Cate him by agreeing to broaden civilian participation in the military government. As long as Abboud continues to command the support of at least a majority of the army, it is unlikely that the politi- cians will be able to overthrow him. Moreover, parliamentary rule, which had only a brief history in the Sudan, could count on little more public support than Abboud and would probably break down quickly as the poli- ticians renewed the bitter feud- ing which marked the pre-Abboud period. Opposition to Abboud can be expected to increase, how- ever, if he fails to~ make at least a gesture toware re-establishing 25X1 constitutional-government, r v w Approved For Release~/:~'~iA~~~~G1~F~ /~~0927A003300110001-5 28 Sept 61 S {~ 'S Page 9 of 8 Approved For Release 2005/04/22 :CIA-RDP79-00927A003300110001-5 Approved For Release 2005/04/22 :CIA-RDP79-00927A003300110001-5 C4NFIDEI~1`~A~. Approved For Re'~ease 2005/04/ -A,~927A300110001-5 CONFIDENTIAL Approved For Release 2005/04/22 :CIA-RDP79-00927A003300110001-5