CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A003400070001-9
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April 29, 2008
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December 1, 1961
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SUMMARY
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Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 ems; ~. SECRET COPY NO. 73 CURRENT INTELLIGENCE WEEKLY SUMMARY OCI NO.0308/61 1 December 1961 CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE State Dept. review completed DIA review(s) completed. SECRET CORUS nz.._._ Jig 1 _; AFTZR itrm -MIA ') 7,k Sa- - Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 ? SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 1 December 1961. T H E W E E K I N B R I E F (Information as of 1200 EST 30 Nov) NUCLEAR TEST BAN TALKS . . . . . . . . . . . . . . . . . . Page 1 The new Soviet proposal for a simple four-point test ban agreement, containing provisions which the USSR has long known are unacceptable to the West, demonstrates the USSR's intention to use the Geneva talks as a propaganda forum for denouncing the continuation of Western testing, particularly any US decision to undertake atmospheric tests. Moscow hopes to use the talks to repair the damage to its image abroad caused by the long Soviet test series. The USSR's "new approach" is also intended to divert the dis- cussions from previous Soviet obstructive demands such as the "troika" scheme in the control system and to exploit the US-UK rejection of a new uncontrolled moratorium on testing during the negotiations. SOVIET-FINNISH RELATIONS . . . . . . . . . . . . . . . . . Page 3 The outcome of the Khrushchev-Kekkonen talks on 24 November in Novosibirsk is strong evidence that Moscow's main objectives were to ensure Kekkonen's re-election and to obtain some form of Finnish endorsement for the Soviet line that West German "militarism" threatens the USSR. The withdrawal of Kekkonen's only serious rival for the presi- dency practically assures Kekkonen's re-election. While the USSR dropped its demand for bilateral military talks, Kekkonen's statement referring to Soviet "arguments" on the danger of war in Europe as "well-grounded" provides Moscow with nonbloc support for its insistence on the necessity of a German peace treaty to remove this danger. Kekkonen stated that Moscow accepts Finland's neutrality as part of Soviet security policy, which places Helsinki "under obligation to preserve a foreign policy that has the So- viet Union's confidence." DOMINICAN REPUBLIC . . . . . . . . . . . . . . . . . . . . Page 6 The political situation continues unsettled. Efforts by the moderate opposition to force President Balaguer to resign and accept proposals for a coalition regime led to the crippling general strike launched on 28 November, de- spite the fact that the President and opposition leaders were close to an agreement. Rank-and-file oppositionists threatened to get out of the control of their leaders on 29 November as rioting broke out and popular hostility a- gainst the military became manifest. The military, under the strong leadership of General Rafael Rodriguez Eche- varria, feels increasingly obliged to assume functions normally those of civil government. SECRET i BRIEFS Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927A003400070001-9 CONGO . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7 Tshombe's defiant response to the UN resolution of 24 November--which rejected Katanga's claim to independence and authorized the UN to use force against Tshombe's mer- cenaries--poses the threat of new clashes between Katangan forces and the UN Command. Although tension is high in Elisabethville, a major move against Tshombe appears un- likely until the UN reinforces its 15,000-man Congo force. The campaign by Gizenga-oriented Congolese Army soldiers to occupy northern Katanga is not opposed by the UN Command and offers some prospect of success. . . . Page 9 Secret talks between France and the provisional Al- gerian government are still under way, but there is evidence that both sides are coming to realize that any agreement reached would be difficult if not impossible to implement as long as the Secret Army Organization (OAS) commands sup- port from the bulk of the European settlers in Algeria. The OAS already seems to exercise effective control in several areas, a situation which could develop into de facto partition no matter what Paris decides. SOUTH VIETNAM . . . . . . . . . . . . . . . . . . . . . . Page 10 The uneasiness in Saigon has been marked by editorial attacks on the US in the government-controlled press. The press attacks apparently were instigated chiefly by Presi- dent Diem's brother Nhu, whose influence has been a major target of reform-minded critics in official and opposition circles. Several top army officers appear convinced that Diem must be removed from authority before the reforms they believe necessary to defeat the Viet Cong can be accom- plished. Despite some drop in Viet Cong activity, the se- curity situation continues to deteriorate. . . . . Page 11 Following the breakdown of talks on security arrange- ments for the meeting of the three princes at Vientiane, Souvanna has proposed that the meeting be held on 1 De- cember at Hin Heup--site of the previous conference, in early October. Boun Oum's initial response has been neg- ative. Souvanna has recently appeared more flexible on the question of cabinet composition, but negotiations will probably be characterized by tough bargaining by each fac- tion. Military activity during the past week was marked by limited probing actions by both sides. Soviet Ambassa- dor Abramov in Vientiane is still actively seeking the es- tablishment of a "neutral and independent" government. At Geneva the USSR has stepped up its efforts to reach an early compromise agreement. SECRET ii BRIEFS Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 %Now SECRET ALBANIA'S RELATIONS WITH EAST AND WEST . . . . . . . . . . Page 13 Albania'has maintained its propaganda offensive against the Moscow leadership in the face of unrelenting Soviet bloc criticism of the Hoxha regime. The Chinese leaders, through their actions and statements of the past week, have left no doubt that they continue to support Albania. Al- bania's neighbors--Greece and Yugoslavia--are concerned about the outcome of the controversy, although neither evi- dently plans unilateral action against Albania. Tirana continues efforts to broaden its international contacts; there has been what appears to be another feeler for US dip- lomatic recognition. RENEWED DE-STALINIZATION PLAGUES ULBRICHT REGIME . . . Page 15 Khrushchev's renewed attacks on Stalin and the attend- ant rush among the satellites to fall in line creates a dilemma for the East German regime. `a`Ulbricht';s;personal- ity cult must be soft-pedaled at the same time that his leadership has to be defended against widespread public and party criticism and complaints that his one-man rule is not in keeping with Khrushchev's revival of de-Stalinization. Ulbricht has echoed the Khrushchev line vigorously, but party leaders are confused and uncertain over how this should be reflected within East Germany. There are some tentative indications of steps to develop a successor for Ulbricht, but a move to replace or downgrade him does not appear im- minent. . Page 16 At the 21-23 November plenum of the Polish party cen- tral committee, First Secretary Gomulka attempted to assuage fears in the party that the current de-Stalinization campaign would have serious repercussions in Poland. Since the Soviet 22nd party congress, well-known party and nonparty figures have called for liberalization and more freedom within Po- land and within the bloc; some party members, however, fear that liberalization would release uncontrollable public pressures in Poland. In his report to the plenum, Gomulka discussed the disruptive tendencies roused by the Soviet congress and urged the preservation of bloc unity; he ap- parently feels that in the long term his regime can sur- vive only in a politically stable bloc. 25X1 COMMUNIST CHINA'S FOOD PRODUCTION IN 1961. . . . . . . . . Page 18 For the third successive year food production in Com- munist China is estimated to have fallen below the level of the previous year. The grain harvest this year will be roughly equal to that of 1955, when there were about 90,000,000 fewer people to feed. This continued poor per- formance in agriculture will increase the threat of mal- nutrition and related health problems during the coming winter and spring and further impede the regime's policy of rapid industrialization. Peiping imported 5,500,000 tons of grain this year, and it probably will need more next year to maintain even the low food rations of last winter. SECRET iii 11"' T TQ Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 SECRET Vwe CURRENT INTELLTGFNCE WEEKLY SUMMARY Nehru's release of the government's fifth White Paper on Sino-Indian relations and the resultant Indian indig- nation over Peiping's alleged actions on the northern frontier compound New Delhi's dilemma in dealing with Peiping. The documents, which attempt to emphasize New Delhi's "firm" diplomacy, also point up the ineffective- ness of its China policy. BLOC TO STEP UP MERCHANT SHIPPING ACTIVITIES IN ASIA . Plans are well advanced for a coordinated effort by the bloc to increase its merchant shipping activities in Asia. Soviet, European satellite, and Chinese Communist ships will apparently operate in a common pool coordinated from a headquarters in Bangkok or Rangoon. With an eye to- ward increasing economic relations with the Asian countries and breaking up the near monopoly of Western shipping in- terests in the area, the bloc will cut rates and will make regularly scheduled calls at ports regardless of the avail- ability of profitable amounts of cargo. BLOC ECONOMIC AND MILITARY RELATIONS WITH MALI . . Page 19 Page 20 . . . Page 22 An economic credit of $7,500,000 extended to Mali by Poland brings total bloc credits to that country to well over $68,000,000. The recent visit to Moscow by Malian Secretary of State for Defense Diakite and Armed Forces Chief of Staff Soumar6 suggests that an additional arms agreement may also be forthcoming. Such an agreement would probably include Soviet assistance in the field of military air transport. The USSR and Czechoslovakia have already achieved a dominant position in Mali's civil aviation through the provision of commercial aircraft, operational and maintenance crews, and an aviation training program for Malian personnel. 25X1 EGYPT . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 23 In the wake of the most serious setback of his career-- Syria's secession two months ago--Nasir has undertaken a series of domestic and foreign policy moves aimed at restor- ing his prestige and recapturing the dynamism of his so- cialist, neutralist, pan-Arab programs. The Egyptian leader in the past has demonstrated a remarkable ability to turn short-run defeats into longer range victories, and may succeed in doing so again, although he faces more diffi- cult problems than ever before. . Page 25 Increasing bitterness among the three major candidates in Costa Rica's presidential elections on 4 February raises the possibility of violence in what is normally the most stable of the CentralAmerican republics. The Echandi government, weakened by a deteriorating economic situation and possessing little military strength, may be unable to prevent outbreaks of fighting during the final weeks of the campaign as well as in the immediate post-election period. SECRET BRIEFS Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 .,, SECRET %uv, CURRENT INTELLIGENCE WEEKLY SUMMARY 1 December 1961 SPECIAL ARTICLES SOVIET EDUCATION IN TRANSITION . . . . . . . . . . . . . . Page 1 Soviet education, which was geared in the 1930s to preparing a relatively few students for higher education, is being reorganized under the 1958 education law to supply the economy with skilled workers as well as highly trained specialists. The law extended universal compulsory educa- tion from seven to eight years but ordered that students in all grades from elementary school through higher educa- tion receive "labor training" as well as academic work. Various difficulties have arisen, particularly in the ef- fort to integrate students into factory work, but the re- organization goals have not been modified. GREATER MALAYSIA . . . . . . . . . . . . . . . . . . . . . Page 6 In talks in London from 20 to 23 November, Prime Min- ister Macmillan and Malaya's Prime Minister Rahman reached general agreement on the "Greater Malaysian Federation" scheme sponsored by Rahman and Prime Minister Lee of Sing- apore. If this scheme becomes a reality in August 1962, as now appears possible, Malaya, Singapore, and the British Borneo territories will become a new nation in the Common- wealth with a population of almost 10,000,000. The major obstacles to federation--the reluctance of Borneo peoples to join and British desires for unrestricted access to the Singapore military bases--appear to be on the way to solu- tion. A major problem will be the unification of the polit- 25X1 ically and economically advanced peoples of Singapore with the primitive societies of Borneo. SECRET V BRIEFS Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY WEEKLY REVIEW NUCLEAR TEST BAN TALKS The new Soviet proposal for a simple four-point test ban agreement, containing pro- visions which the Soviets have :Long known were unacceptable to the West, underscores the USSR's intention to use the Geneva talks as a propaganda forum for denouncing the continuation of Western testing, particularly any US decision to undertake atmospheric tests. Moscow hopes to use the talks to re- pair the damage done to its image abroad by the long Soviet test series. The USSR's "new approach" is also intended to divert the discussions from previous Soviet obstructive de- mands such as the "troika" scheme in the control system and to exploit the US-UK re- jection of a new uncontrolled moratorium on testing during the negotiations. In a move designed to ap- pear responsive to the Western position, the Soviet statement of 27 November recalled the 3 September proposal by President Kennedy and Prime Minister Mac- millan for a ban on atmospheric testing, relying on existing means of detection, and pro- posed that this ban be extend- ed to include outer space and underwater tests. On the cru- cial and unresolved issue of underground tests, Moscow pro- posed a moratorium pending agreement on a control system which would be a "composite part" of an international sys- tem to supervise a general dis- armament agreement. This new approach raised the possibility that the Soviet Union, despite Khrushchev's 10 September rejection of the US- UK proposal when the Soviet test series was just getting under way, may eventually propose that this Western proposal be adopted as the basis for an immediate agreement banning atmospheric tests. The Soviets may calculate that such a maneu- ver could inhibit the US from undertaking atmospheric tests and place the US and UK on the defensive in the talks. A member of the Soviet delegation, in a conversation with a US delegate on 28 No- vember, feigned surprise over the negative Western reaction to the new Soviet proposal and argued that the Soviet plan in essence went no further than the Western offer to ban atmos- pheric tests with monitoring left to existing national de- tection systems. The Soviet representative said the USSR would "emphasize" that the West's negative reaction rep- resents a retreat from the 3 September proposal and in- sisted that world opinion would not understand this "switch" in position." A TASS report on the 28 November session of the test ban talks said that the Soviet proposals were rejected by the Western representatives "with- out even bothering to study them." The report claimed that from the start the Western del- egates displayed intractabil- ity and insisted on their old positions, while US delegate Dean said that the Western powers would not halt nuclear tests. Soviet delegate Tsarap- kin told newsmen after the ses- sion that he was "not very happy" about the Western re- action to the Soviet proposals but commented that "after care- ful study of our proposals, after consideration of our new approach, the West could easily come to an agreement on this basis." Tsarapkin also said that the Soviet Union would SECRET 1 Dec Al TTfTTTJT ff T_'.1 TT*!T Wage 1 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 %nw, SECRET *Of CURRENT INTELLIGENCE WEEKLY SUM(RY not negotiate on the basis of "the ancient treaty proposed by the West." Moscow's current proposal for the first time includes a demand for French participation in the talks and adherence to the agreement, although Moscow began warning last March that French testing while the talks were in progress could make the talks pointless. One of rea- sons Khrushchev advanced for his 10 September rejection of the US-UK proposal to ban at- mospheric tests was its failure to include France. Khrushchev said the USSR would not tolerate such an "impermissible situation:' During the 28 November ses- sion Tsarapkin repeated the call for French participation but without making continuation of the talks dependent on fulfill- ment of this demand. His fail- ure to do so and his mild com- ment that a pledge to refrain from testing would "facilitate" negotiations suggest that the Soviets are preparing for a long stay at Geneva and will try to place the onus for any breakoff of the talks on the Western powers. A Soviet del- egate has already expressed "hope" that the Western del- egations would follow the cus- tom of proposing a Christmas recess. By coming out in favor of an immediate ban on all tests, the Soviet leaders probably hope to convince neutral opin- ion that the Western desire for further tests is the main ob- stacle to an early agreement. In this connection Khrushchev explicitly stated in a recent letter to the president of the World Peace Council that if the Western powers conduct tests, "we too shall be obliged to return to them in order to keep our armed forces at the modern level." In an obvious attempt to attract neutralist support for the "new approach," the So- viet Foreign Ministry immedi- ately passed copies of its latest proposals to the ambas- sadors of neutral countries. The 21 November Soviet note agreeing to return to the Geneva talks had similarly been dis- tributed promptly to neutralist representatives. The draft treaty was re- leased by the Soviets on 27 No- vember, the day before the Geneva test ban talks resumed after a recess of almost three months. It marks a further shift from the position taken by Moscow that a test ban agree- ment could be considered only as part of an agreement on com- plete and general disarmament. Whereas last spring and sum- mer the Soviet delegation in Geneva insisted that a ban on tests apart from general dis- armament would be unacceptable unless the Western powers ac- cepted the "troika" principle for controlling a test agree- ment, the new Soviet proposal avoids the controversial con- trol issues and pays only lip service to a general disarm- ament agreement. The plan in effect calls for a separate, uncontrolled ban on all tests and is a re- version to the position taken in early 1960, when the USSR made a similar proposal for a permanent ban on all tests ex- cept small underground explo- sions, which would have been covered by a voluntary mora- torium. That proposal was eventually modified to link the duration of the moratorium to a research program to improve detection aild..identification SECRET 1 Dec 61 WEEKLY REVIEW Page 2 of 26 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927A003400070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY techniques; the current plan, however, would extend the mora- torium on underground tests un- til agreement could be reached on a system of controls for such tests, which would form part of an international con- trol system for general disarm- ament. In this way Moscow would avoid submitting to a system of foreign inspection, which it had earlier claimed was far too extensive for an agreement limited in scope. Moscow would also avoid having to defend the "troika" plan, which it contends would not be necessary under general dis- armament. The Soviet statement ac- companying the new draft treaty asserts that it represents a "new approach" and is intended to "direct" the Geneva talks into a "practical current" in order to exclude the "difficul- ties and obstacles which stood in the way of an agreement in the past." This line suggests that in the face of widespread criticism of Soviet testing, the Soviet leaders probably felt they could not afford to stand on either of their previ- ous positions of linking a test treaty to agreement on general and complete disarmament, or de- manding a "troika" system for controls. The proposal indicates, however, that no international controls over a test ban agree-25X1 ment would be implemented until a disarmament agreement was reached. (Con- curred in y S The outcome of the talks between Khrushchev and Finnish President Kekkonen in Novosi- birsk on 24 November is strong evidence that the main objec- tives of recent Soviet moves regarding Finland were to make certain of Kekkonen's re-elec- tion and to obtain some form of endorsement of Moscow's charges against West Germany. Khru- shchev's agreement to "postpone for the time being" the military talks originally demanded prob- ably reflects both his desire to enable Kekkonen to claim an important victory in dealing with the USSR and his satis- faction with the results pro- duced thus far by pressure tac- tics against Finland. Moscow's tactics have led to the with- drawal of Kekkonen's chief rival in the January presiden- tial election, Olavi Honka, thus practically assuring Kek- konen's re-election. The communiqud issued on 25 November after the talks makes no mention of internal Finnish politics. Khrushchev, in his speech at a luncheon for Kekkonen, made it clear, however, that the USSR would not accept a change in Finnish leadership or policies. Khru- shchev warned, "It is not all the same to us what line is pursued by this or that leader and the political forces back- ing him." He added that the activities of the "right-wing groups" in Finland arouse "our grave concern." After his re- turn Kekkonen called on those of his opponents who have no confidence in the Soviet Un- ion's "friendship" to withdraw from the political arena and be "good losers." Moscow has thus virtually established a claim to decide the accept- ability of Finnish political leaders, thereby extending to SECRET 1 Dee (1 WN.WVT.V R1+.VTRW -D-re 3 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927A003400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY the presidential election its intervention of 1958 against the composition of the govern- ment. According to the communi- qud, Khrushchev again emphasized that the Soviet Government felt it necessary to hold military consultations in conformity with the treaty of 1948. As Kekkonen explained it in his radio address of 26 November in Helsinki, this demand presented Finland with two choices: either to accept the Soviet proposal or to strive to meet Soviet security require- ments by "political" activity. In taking the latter course Kek- konen apparently agreed to en- dorse Khrushchev's evaluation of the situation in Northern Europe. In the communique, Kekko- nen agreed that "the arguments advanced regarding the possibil- ity of a war's erupting in Eu- rope are well grounded." Since the only "arguments" advanced by Khrushchev were the threat of West German militarism, this statement by the Finnish Pres- ident goes far in accepting the Soviet thesis. In his 26 Novem- ber speech, Kekkonen declared that the "Soviet Union's con- cern over West Germany's re- armament is a fact and is, in the light of history, under- standable." Khrushchev probably be- lieves that these statements, together with his "concession" in postponing military talks, make it extremely difficult for Helsinki to resist future Soviet pressure for Finland's adher- ence to a bloc peace treaty with East Germany and recognition of the East German regime. The So- viet premier, moreover, can still renew his demand for military consultations if Finland's ac- tions in the immediate future do not satisfy the USSR. The communique states that Khrushchev "emphasized" the hope of the USSR that Finland will "attentively follow" the devel- opments in Northern Europe and the Baltic and "in case of necessity will bring its con- siderations on taking appro- priate measures to the knowl- edge of the Soviet Government." Kekkonen subsequently said that this language meant the initia- tive for proposing military con- sultations will henceforth come "primarily" from Finland. While Khrushchev probably has no illusions that Finland would in fact propose such con- sultations, the Soviets will use this commitment as a lever to maintain pressure on Helsinki for a more pro-Soviet stand on the German question. The Finn- ish Communists promptly adopted the line that the government now must pursue a more "active policy" in Scandinavia. As a possible result of the crisis provoked by the So- viet note, the trade talks in Moscow ended with agreement for an increase of approximate- ly 25 percent in Soviet-Finnish trade for next year. The over-all effect of the Soviet threat to force military consultations will be a substan- tial increase in Soviet influ- ence over both Finnish domestic and foreign policies. Kekkonen stated that Moscow accepts Fin- land's neutrality as part of Soviet security policy, which places Helsinki "under obliga- tion to preserve a foreign policy that has the Soviet Union's confidence." Khru- shchev and Kekkonen apparently struck an implicit bargain agree: ir...g SECRET 1 Dec 6' Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 e 4 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 N..1 loov, SECRET to postpone military consulta- tions in return for a Finnish willingness to provide impor- tant nonbloc support for the Soviet position on Germany. The Communist thesis that neutrality carries an obliga- tion to support a German treaty was recently propounded by East German party leader Ulbricht when he claimed that a "con- sistent policy of neutrality" as applied to the German and Berlin question "is tantamount to the promotion of the conclu- sion of a peace treaty" and es- tablishment of "normal rela- tions" with both German states. Finnish, Scandinavian Reaction The Finns received the coxa- munique on the talks with great relief and generally regarded the outcome as a great personal success for President Kekkonen. They are, however, aware of the fact that Finland has assumed the responsibility for taking the initiative in proposing con- sultations if the frontier of the USSR and Finland needs "safe- guarding." This gives the USSR an opening to demand that Fin- land take a stand on interna- tional issues--even if only to state that they do not menace Soviet-Finnish security--rather than remain silent as in the past. Satisfaction in being granted a respite appears, low- ever, to be stronger than con- cern over future difficulties. The press and the public have been silent thus far on SECRET the implications of Honka's withdrawal as a presidential candidate because of Soviet displeasure. However, a Social Democratic leader at a meeting of pro-Honka supporters in mid- November--prior to Honka's with- drawal--raised the question as to what would stop the Russians from requesting further assur- ances regarding Finland's con- tinued neutrality through the election of certain candidates or parties in the parliamentary elections. The top leaders in the Social Democratic party are particularly distrusted by the USSR, and sentiment is developing within the party leadership that several indi- viduals, including Chairman Tanner, must resign. In the Scandinavian coun- tries, the initial relief over Moscow's postponement of its request for consultations on defense matters is giving way to an awareness that Finland's future may well depend on ac- tions they take in political and defense matters. Neverthe- less, the Danish Government ap- parently hopes by late Decem- ber to secure parliamentary approval of the widely debated Baltic command proposal, which evisions closer military co- operation between Denmark and West Germany. Commenting on Mosce--`s sharp attacks against the proposal, a leading Danish n-irspaper speculates that the Soviet Union may use Denmark's final approval as a pretext to renew pressure on Finland for cooperation in defense matters. 1 Dec F Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 image 5 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927A003400070001-9 SECRET Inability of the top lead- ers of the moderate opposition groups to control their follow- ers was a crucial element in the outbreak of mob violence in the Dominican Republic on 29 November; it also threatened to undo the results of negoti= ations that had brought Presi- dent Balaguer and opposition leaders close to agreement on a political solution. Dr. Viriato Fiallo--leader of the National Civic Union (UCN), the largest opposition group--rec- ognized the dangers of the UCN. -inspired general strike launched on 28 November, but apparently could not head it off. He evi- dently felt incapable of oppos- ing the strong emotional tide among UCN members who demanded a quick end to all vestiges of the dictatorship, including the immediate resignation of Balaguer. While the strike stimulated new attempts to reach an agree- ment between the President and the opposition, it made an ulti- mate solution more difficult by creating additional cleavages between the opposition and the military. UCN radios, before they were shut down on 28 Novem- ber, accused military leaders of siding with "the forces of reaction" remaining in the gov- ernment. Only a few days ear- lier the same military officers had been hailed as liberators for ousting the Trujillos. The movement of tanks and troops through the streets of the capital in an effort to main- SECRET tarn order on 28 and 29 Novem- ber increased tension and hos- tility against the military. The military, on the other hand, considered the strike a breach of faith by the op=- position and a "grab for pow- er" by illegal means. General Rafael Rodriguez Echevarria, ranking cabinet member and constitutionally first in the line of succes- sion, appears to control the armed forces and remains a key but ambiguous figure. Under his direction, the military gave strong support to Bala- guer's position during the general strike, and Rodriguez personally disclaims any ambi- tion to become president. Nevertheless, in the absence of an effective.civil government with opposition participa- tion, he has felt obliged to take several actions nor- mally reserved for civil gov- ernment. Rodriguez appears to ex- aggerate the Communist issue in domestic developments, giv- ing Communists responsibility for the intransigence of the UCN and the popular unrest. Some members of the OAS group, which concluded its latest visit to the country on 26 November, fear that Rodriguez may be "another Trujillo in the making" who is using the Communist issue to achieve his personal ambitions. 1 Dec "' TV"TNTTT TT nTPTTTTTAT n~"e 6 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927A003400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 SECRET Tshombe's defiant response to the UN resolution of 24 November--which rejected Katan- ga's claim to independence and authorized the UN to use force in ousting Tshombe's merce- naries--poses the threat of new clashes between Katangan forces and the UN Command. On 26 November, Tshomb6 charged that war had been brought to the Congo by UN members "utterly ignorant of the Congo," and warned that Katanga would choose "annihilation" rather than capitulate to the UN. The beating of two senior UN officials in Elisabethville by a mob of Katangan soldiers on 28 November probably stemmed in part from Tshomb6's efforts to arouse his followers against the UN resolution. ville in northern Katanga. These forces, moving south from Kivu Province, have been under the command of General Victor Lundula, who has recently aligned himself with Adoula's central government, but they are apparently being directed by Gizenga without any control from Leopoldville. The invad- ing forces appear disposed to bypass rather than attack Kon- golo, which with a garrison of an estimated 1,400 Katangan soldiers is Tshombe's main stronghold in the area. Follow- ing the massacre of the 13 Ital- ian airmen at Kindu and the pillage of Albertville by the invaders, the UN appears to have assumed some security functions in the towns the Congolese have occupied. The UN resolution is not directed specifically to the problem of Gizenga's~secession- ist activities in Kivu and Orientale provinces. In con- centrating on Katanga, however, it reflects the prevailing opinion in Leopoldville, where most of Adoula's supporters regard Tshomb6 rather than Gizenga as the main threat to Congo unity. The Security Council resolution once more confronts Tshombe with the threat of a "two-front war" in which he will have to resist new UN pressure for the evac- uation of his white volunteers at the same time that he is confronted with Gizengist in- cursions from the north. the offensive launched by Gizenga has overrun the towns of Kabalo, Nyunzu, and Albert- According to a senior UN official in Elisabethville, UN forces there will be under- manned from around 4 to 14 De- cember, while Swedish and Irish battalions are being rotated. The consulate observes that it would appear impossible for the UN Command to take offen- sive action against Tshomb6 in the next several weeks, and that the UN may even be pressed to maintain security in the Elisabethville area. In accordance with its in- tention of bolstering its 15,000- man Congo force, the UN announced on 22 November that the UN Com- mand would be reinforced by an 800-man Ghanaian battalion. The UN, however, has balked at Ghana's insistence that its contingent not be based anywherc25X1 except in Leopoldville without clearance from Accra. Accra's interest in seeing its troops SECRET 1 Dec Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 e 7 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 vwe SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY UN 2750 ? Kamina Kapangi 0 Selected road It- Selected airfield Kasongo "k Lul ou~g Kongo c bOULA Kabalo Lul UN 2930 STATUTE MILES 400 I 1 32053 based in Leopoldville suggests that the Ghanaian contingent may once again be politically active in support of leftist elements in the Congo. In Stanleyville,_ the flood- ing of'the Congo River has posed a threat to public health and has aggravated the province's long-standing economic dislo- cations. Public security is also precarious, with Congo- lese Army soldiers in the area seemingly responsive neither to Gizenga nor to Lundula. An early return to either politi- cal or economic stability in the area appears unlikely. SECRET 1 Dec a, WVPVT.V RFVTVW Page 8 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 UN 1340 ,scattered UN 1390 scattered KQlwezi 7r'" '1 k . Jadotville Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY FRANCE-ALGERIA Secret talks between France making extreme demands, and then and the provisional Algerian accept partition of Algeria in government (PAG) are reported still under way, but there is increasing evidence that both sides are coming to recognize that any agreement reached would be difficult if not im- possible to implement as long as the anti-Gaullist Secret Army Organization (OAS) commands support from the bulk of the European settlers in Algeria. The OAS already seems to exer- cise effective control in sev- eral areas, a situation which could develop into de facto partition regardless of what Paris decides. In a 24 November conversa- tion with US Embassy officers, rebel information minister Yazid said the PAG considers the mat- ter of Ben Bella's hunger strike "settled." Yazid, asserting that the PAG would not demand the outright release of Ben Bella or the other rebel lead- ers held by the French, said that the PAG now regards the prospects for successful nego- tiations with the French as ex- cellent. Both French Interior Minister Frey and Socialist leader Guy Mollet reportedly said last week that secret ne- ;otiations with the PAG were proceeding satisfactorily. However, there are indi- cations that the PAG is becom- ing increasingly convinced that, because of the strength of the OAS and the erosion of Paris' control in Algeria, the PAG has little chance of being actually installed in Algiers in the near future, and that it would therefore be a mistake to fol- low through on negotiations. the PAG would still have to fight the OAS before it could rule Algeria. Conse- quently, Boumendjel reportedly reasons, the PAG should cause the negotiations to fail by SECRET 1 Dec WEEKLY REVIEW Page 9 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 order to win a base from which to rally the Moslem population to its support and to carry on military action against the re- maining Europeans. Mollet--predicting that the Algerian situation will reach a climax within the next two months--believes that the French Government's security situation in Algeria is un- tenable and that the PAG real- izes it could not take over 25X1 OAS-controlled Algiers and Oran. Meanwhile, the effective- ness of De Gaulle's campaign to rally the support of the French armed forces is not yet clear. The 3,000 or so offi- cers and men from France and abroad whom he addressed at Strasbourg on 23 November gave his plea for national unity on the Algerian issue what initial reports described as a "mixed" Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 SECRET v- CURRENT INTELLIGENCE WEEKLY SUMMARY reception. Some quarters have expressed the view that the assembly of so many officers to remind them of their duty may in the long run boomerang so far as public opin- ion is concerned in providing evidence of the regime's weak- ness vis-a-vis the military. The publicly expressed opposi- tion to De Gaulle last week by Marshal Juin and the re- serve officers' association will reinforce this view. Press and military circles are apparently taking seriously rumors that, if negotiations with the PAG are not resumed, Minister for Algerian Affairs Joxe will be replaced by Armed Forces Minister Messmer. It is speculated that the way would then be clear to appoint as defense minister the retired chief of staff for national defense, General Paul Ely, whose prestige might succeed in re- storing the unity of the armed forces behind the regime. The uneasy situation pre- vailing in Saigon has been sharpened by unprecedented edi- torial attacks on the US in the government-controlled press. The press campaign charges the US with "imperialist" ambitions and stresses South Vietnam's own resources in the fight a- gainst the Communists. The cam- paign is reported to have been largely instigated by Diem's brother and chief political adviser, Ngo Dinh Nhu, whose pervasive influence in the gov- ernment apparatus has made him the chief target of local crit- ics of the present regime. Restiveness among the South 'Vietnamese military command may be reaching a critical stage. Several ranking officers appear convinced that the reforms which they regard as necessary for a victory over the Viet Cong can be brought about only through a coup d'etat. In a conversa- tion with American military representatives on 24 November, the commander of South Vietnam's field forces, Major General Duong Van Minh, and his deputy, Brigadier General Le Van Kim, stressed the continuing inade- quacies in command and intelli- gence operations and stated that the next few months could be decisive in South Vietnam's "extremely grave" situation. The deputy commander of the Third Corps Zone (the southern part of the country) recently told the US assistant army attache that plans to bring about changes in the govern- ment are nearing completion and that "something" would be done very shortly. Although there was a de- cline in reported Viet Cong activity last week and govern- ment forces claim some tactical successes, there has been no discernible change in the gradu- ally deteriorating security sit- uation. The military chief of the Mekong delta province of Dien Hoa recently stated that the Viet Cong controls about half his area, commands the :Loyalty of about half its peo- ple, and is able to land up to 300 men almost anywhere along the coast without detection. As evidence of the increasing in- filtration of North Vietnamese in his province, he cited the growing brutality of the Viet Cong, a new battle technique of concentrated heavy-weapons fir- ing, and the reinforcement of existing Viet Cong units in the area. 25X1 SECRET 1 Dec 61 WEEKLY REVIEW Page 10 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 Approved For Release 2008/04/29: CIA-RDP79-00927A003400070001-9 SECRET Failure of the rival fac- tions to agree on mutually sat- isfactory security arrangements for the projected meeting of the three princes in Vientiane has led Souvanna Phouma, sup- ported by Souphannouvong, to propose that the talks be held at the site of their last meet- ing in early October--Hin Heup, a village located at the front lines. Souvanna suggested that the meetings begin on 1 December. indicated his willing- ness o add three non - Xieng Khouang neutralists to his "neu- tralist center group," but de- clared that the addition of a fourth would be "difficult." Souvanna expressed general agree- ment with the view that integra- tion of the armed forces should precede national elections, ob- serving that he was "not going to have elections while the Pathet Lao had armed forces wandering around." Soviet Ambassador Abramov has had talks. with Phoumi, Boun Oum, and Ambassador Brown in Vientiane. He told Phoumi that the USSR desired a "neutral in- .dependent" Laos and was prepared to offer substantial economic help to the new government. He remarked that a team of Soviet technicians was in Xieng Khouang in order to establish an elec- trical plant. Abramov reiterated the USSR's desire to avoid a resumption of hostilities and stressed that a coalition gov- ernment headed by Souvanna Phouma was the best possible solution to the Laotian problem. He in- dicated that he would remain in Vientiane for several days and implied that he would be willing to use his influence with the Xieng Khouang faction to bring about an early agreement on the formation of a coalition govern- ment. Anti-government units have initiated probing actions in the areas surrounding Nam Tha and Luang Prabang as well as farther south in the region northwest of Thakhek. Laotian army forces have continued local clearing sweeps in the northern provinces, and Meo units con- tinue their harassment of enemy activities in the Plaine des Jarres. The USSR has stepped up its efforts At Geneva to reach an early compromise agreement. On 21 November Soviet delegate Pushkin proposed that the US, the UK, France, India, the USSR, and Communist China "sit around the conference table" until an agreement is reached. All the unsettled issues are now under specific negotiation: at Geneva. Pushkin continued to demand that any conference declaration must take explicit note of the abrogation of the SEATO protdcol-for Laos. Although final agreement has almost been reached on the SECRET 1 Dec Approved For Release 2008/04/29: CIA-RDP79-00927A003400070001-9 a 11 of 25 Approved For Release 2008/04/29: CIA-RDP79-00927AO03400070001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Or ony S^ly`. un I`ua Muong So 'I 0*P