WEEKLY SUMMARY

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A004200070001-0
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RIPPUB
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S
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33
Document Creation Date: 
December 21, 2016
Document Release Date: 
November 7, 2008
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1
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Publication Date: 
October 18, 1963
Content Type: 
SUMMARY
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*MW OCI No. 0302/63 Copy No. 73 WEEKLY SUMMARY OFFICE OF CURRENT INTELLIGENCE Navy review completed. State Dept. review completed CENTRAL INTELLIGENCE AGENCY 25X1 ARMY review(s) completed. 1i-XCORD :'` '; R;T URN TO AGENCY ARCHIVES, GROUP I Excluded from automatic downgrading and declassification Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET (Information as of 1200 EDT,'17 October 1963) CUBA Page HURRICANE FLORA BATTERS CUBA Although damage assessments are still tentative, agriculture and transportation apparently suffered far more than industry and the military. THE COMMUNIST WORLD SOVIET CHALLENGE TO WESTERN ACCESS RIGHTS IN BERLIN 2 Soviet interference with US and British convoys on the autobahn appears aimed at drawing the Western powers into talks on both access procedures and the broader question of Western forces in Berlin. CONTINUED RUMORS OF IMMINENT WORLD COMMUNIST MEETING 4 Rumors that Khrushchev will convene some kind of international conference to deal with the Sino- Soviet conflict continue to circulate in Moscow. IMPACT OF HARVEST FAILURE WITHIN USSR Moscow is taking steps to lessen the effects of the harvest failure on the economy and reassure the population that measures are being adopted to avoid like failures in the future. THE NORTHERN SEA ROUTE NAVAL CONVOY This year's convoy, including both merchant and naval ships, left the Murmansk area probably in late August and arrived at the Bering Strait in two groups on 27 September and 10 October. VIEWS OF WESTERN DIPLOMATS ON COMMUNIST CHINA They give a grim picture of a country very, slowly recovering from economic disasters, a people who remain in a state of "resigned apathy," and a lead- ership which will probably become more rigid. SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Page i Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 wr SECRET ASIA-AFRICA Page CHINESE COMMUNIST OVERTURES TO JAPAN Peiping's trade overtures--accompanied by extensive publicity for moves to improve relations with Japan across the board--appear to be part of China's ef- forts to expand its trade outside the bloc. LIMITED BLOC ECONOMIC SUPPORT FOR INDONESIAN POLICIES Neither Moscow nor Peiping is likely to provide aid sufficient to offset problems arising from Indonesia's severance of economic ties with Malaysia. SITUATION IN SOUTH VIETNAM. The regime continues repressive measures against potential opponents, while operations against the Viet Cong continue without serious interruption, MOROCCAN-ALGERIAN BORDER FIGHTING Clashes along the undefined border probably will continue, and possibly even break out in new areas, pending negotiations to fix the frontier, but nei- ther country has the resources for an all-out war. SOMALI GOVERNMENT TURNS TO USSR FOR ARMS Somali officials say they have an offer of $28 mil- lion worth of Soviet military assistance. Somali relations with Ethiopia are again deteriorating. NEW PRESSURES ON LEOPOLDVILLE CABINET Congo labor organizations are calling for a govern- ment of "public safety," ITALIAN POLITICAL SITUATION ON EVE OF SOCIALIST CONGRESS 14 The 25-29 October congress will probably authorize party leader Nenni to negotiate with the Christian Democrats for direct Socialist participation in a center-left government, but the obstacles to such a government remain formidable. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET EUROPE (continued) Page AUSTRIA'S DETERIORATING POLITICAL SITUATION Increasing acrimony between Austria's two major par- ties--the Socialists and the Peoples Party--threat- ens to break up the coalition which has governed the country since 1945. BRITISH GUIANA POLITICS ON EVE OF INDEPENDENCE TALKS The next round of talks opening on 22 October will be marked by continued squabbling both within and among the colony's three parties POLITICAL POSITION OF BOLIVIAN PRESIDENT Paz Estenssoro, who will visit Washington for two days next week, is probably stronger now than at any time since his election in 1960. STATUS OF NEW DOMINICAN REGIME Continuing political isdlat'ion L ma e e new government's future increas- ingly uncertain. POSITION OF HONDURAN MILITARY GOVERNMENT The regime, still seeking foreign recognition, is being urged by other Central American governments to restore a semblance of democratic government, but has moved only slightly in this direction so far. AREA NOTES Argentina and Guatemala SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY 18 Page iii Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET Hurricane Flora's week-long rampage in the Carribean severe- ly damaged most of eastern Cuba and further darkened the island's economic outlook. Although damage assessments are still tentative, agriculture and transportation apparently suf- fered far more than industry and the military. The regime is likely to blame the storm for its economic troubles for months and even years to come, even though many of these problems were well advanced before the hurricane. Oriente and Camaguey, the two eastern provinces primarily affected by Flora, are the lead- ing agricultural provinces in Cuba. They supply more than half the farm produce consumed on the island and account for 50 percent of the country's sugar acreage. Although damage to the sugar industry cannot yet be measured, the hurricane doubt- less has harmed not only the 1964 crop but future harvests as well. Large areas of cane probably were destroyed by winds, and thousands of acres of newly planted cane probably were washed out. Damage from flood- ing has been severe and may be- come worse. The forecast for the next 30 days is for an additional five to eight inches of rain. Damage has been equally severe for other crops, many of which were in or about to enter the harvesting stage. Much, if not most, of the coffee and cocoa crops have probably been destroyed. Most of the important rice crop, at least half the cotton crop, and up to 10 per- cent of the corn crop have been lost. The main producing areas for other important products such as bananas, peanuts, oranges, and beans were all among the areas hardest hit. Livestock losses are reported to be heavy, but no figures are available. Housing, electric power, communications, and transporta- tion suffered severe losses. Entire communities were washed away and others were isolated. Aerial photography shows exten- sive damage to roads, railroads, and bridges. All the rivers in Oriente Province overflowed, and most bridges in the affected areas were washed out or cut off when their approaches washed away. Landslides have rendered many roads and railroads impassable. Considerable time, effort, and materials will be required to restore the transportation system. Delay in moving sugar from fields to mills may further reduce sugar output when the harvest gets under way in about three months. 25X1 gh winds, heavy rains, and flooding almost cer- tainly caused some damage to industrial facilities, however, SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 1 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 SECRET and production probably has been curtailed by power failures and transportation breakdowns. Soviet military forces in Cuba apparently were not serious- ly affected by the hurricane. There was considerable damage to living quarters and probably to some of the more fragile equipment such as communications and radar gear, but there are no reports of Soviet casualties. Some Cuban military installa- tions suffered extensive damage and there was a heavy loss of supplies, but no aircraft or naval vessels were lost. Many Cuban troops probably will be diverted from training and counterinsurgency operations to Soviet interference with US and British convoys on the Berlin autobahn appears to be aimed at drawing the Western powers into negotiations on both access procedures and the broad- er question of the status of Western forces in West Berlin. Soviet authorities now are seeking to impose new procedures for checking Allied convoys. The USSR's initial tactic in this regard appears to be an attempt to establish a link between the Western practice of giving advance notification for convoys over a certain size (over seven vehicles in the US case) and procedures governing the dismounting of convoy per- sonnel for a head count.. The Soviet checkpoint commander stated flatly to a British of- ficial that all convoys of five vehicles or more must agree to dismounting. In a conversation with a US officer on 15 October, the Soviet commander claimed that the US had agreed last year to give advance notification for convoys of more than five vehicles and said this same procedure should apply to dismounting. He added that even if a truck con- tained only one to five passen- gers, they would have to dismount. While the USSR almost cer- tainly expects the US to reject these demands, it probably hopes that continued publicity rela- tive to the ambiguity and dif- ferences which exist between the US and British convoy procedures will tend to underscore the need for negotiations to remove "misunderstandings." The USSR may have calculated that a display of pressure on SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 2 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET the sensitive Berlin access question was necessary to induce the US and Britain to disregard French and West German opposi- tion to negotiations on Berlin at this time. Moscow probably foresees a protracted period of negotia- tions and plans to follow a step- by-step approach, using discus- sion of access procedures as an avenue for leading into the central problem of the status of Western forces in West Berlin. As part of this strategy, the Russians may envisage further harassment of Western communi- cations as a means of-underscor- ing the issues they intend to press as well as generating pressure on the West to agree to negotiations. The Soviet Union may, in fact, be preparing the way for formally introducing demands for Western payment for the use of communications facilities on East German territory. In talks with US and Brit- ish leaders this summer, both Khrushchev and Gromyko referred to the need for a new tariff on Western military and civilian rail transport, autobahn tolls on Western military personnel and cargo transport, and pay- ment for the use of communica- tion cables crossing East Ger- many. The USSR almost certainly would attempt to use negotiations on these matters to press its demand for Western respect for East German "sovereign rights." Moscow presumably intends to maintain close control over these harassments in order to avoid 'irreparable damage to the detente atmosphere. The Soviet leaders, however, appear to be operating on the assumption that the US and Britain also have an interest in preserving this atmosphere and that this situation affords the USSR greater latitude for maneuvers to draw the West into a new round of Berlin talks. Soviet press reports of the incidents have sought to minimize the seriousness of the confrontation. Playing down the challenge to the US and British convoys, Izvestia claimed that President Kennedy had ob- served that the incident resulted from a misunderstanding rather than a deliberate provocation. SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 3 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET CONTINUED RUMORS OF IMMINENT WORLD COMMUNIST MEETING Rumors that Moscow has decided to convene some kind of interna- tional conference which would deal with the Sino-Soviet conflict con- tinue to circulate in the Soviet capital. Current rumors may have been generated by the presence in Mos- cow of two of the top Italian Com- munist leaders. There are as yet no indications that leaders of other Communist parties are in the USSR. The Portuguese party state- ment published in Pravda on 24 September calling for a world Com- munist conference, however, had urged the creation of a commission composed of "some" parties to con- sider "practical questions linked with the convening of a conference," and it is possible that such a meet- ing is being held outside Moscow. Khrushchev has not been in the cap- ital since 11 September. He was reported by the US Embassy to have been seen on 7 October in Yalta, where he often meets foreign guests, and he was still in the Crimea on 17 October. Foreign Communist parties con- tinue to call for an international meeting to discuss the problems that plague the Communist movement. Pravda on 13 October followed its earlier re-publication of appeals by three small Western Communist parties for such a conference with a reprint of a speech by French party leader Thorez which asked for a meeting. The Greek party's resolution at the close of its fifth plenum--publicized on 12 Oc- tober--similarly contains a re- quest for a meeting, while strongly denouncing the Chinese. This sud- den concerted attention to the issue suggests that the rumors may have some foundation. Moscow itself has not yet stated a position, but is making it clear that any such Communist meet- ing will be to condemn the Chinese, not to try to find a way to live with them. The latest issues of both Kommunist, the Soviet theoret- ical journal,and the World Marxist Review,. another mouthpiece for oet views, carry systematic in- dictments of Chinese positions on virtually every disputed point. A more serious attack on Mao Tse-tung's personal apostasy is contained in the 11 October issue of Izvestia, where, in the guise of a c que of a Chinese book on dialectical materialism, Mao's pretensions to be the foremost con- temporary Marxist theoretician are torn to shreds. Izvestia ridicules the idea that Mao ail s made any new contributions to Communist theory and claims that any new formulations he has advanced are at variance with, or a "falsification" of, true, Marxist-Leninist thought. Peiping has not seen fit to comment on recent demands for a meeting of Communist leaders, al- though it would almost certainly be aware of plans for one. It may be holding its fire temporarily in preparation for a showdown fight. The Chinese continue to snipe at Moscow but have issued no full- dress polemical statement since the blast at Khrushchev in the Red Flag/People's Daily article of T6- September on Yugoslavia. Instead Chou En-lai took a careful line on Sino-Soviet relations during his interview with the head of Reuters on 13 October, striking a pose of statesmanlike restraint but giving no ground on Peiping's differences SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 SECRET The Communist World IMPACT OF HARVEST FAILURE WITHIN USSR The impact of the grain harvest failure continues to dominate Soviet internal affairs. Moscow is taking steps to lessen its effect on the economy, and reassure the population that meas- ures are being adopted to avoid like failures in the future. Khrushchev's recent speech at Krasnodar--in which he told of the Soviet grain purchases but also outlined a comprehen- sive plan for ensuring "guaran- teed harvests" through extensive use of chemical fertilizer and irrigation--is being given mass distribution as a pamphlet. An unusually large press campaign in support of this plan is under way, obviously calcu- lated to impress the public with the remedial action being taken. In the first twelve days of Oc- tober, Pravda, Izvestia, and Sovetskayaaossiya (the princi- pal paper of the Russian Re- public) published nearly 70 ma- jor articles, editorials, and pictorial features--including coverage of Khrushchev's Kras- nodar speech and the related Central Committee - Council of Ministers' letter, both of which dominated the papers on the days they appeared. The press has announced a number of measures to conserve the bread and grain supplies. These include restrictions on bread sold at stores, the sta- tioning of Young Communist League members as guards at stores and warehouses, and a vigorous campaign to discredit the use of bread for livestock. Late last month a national trade union conference was called to discuss means of checking on grain distribution and storage. This year's agricultural failure apparently will have a serious impact on the Soviet livestock industry. Fodder shortages are almost certain to necessitate emergency slaugh- tering of cattle. It seems likely that the regime will import feed grains before al- lowing such measures to jeop- ardize the future of the live- stock industry. Even so, there will be serious consequences-- slaughterhouses and refrigera- tion facilities will probably be overloaded and much waste will occur. . Possibly in connection with present difficulties, several SECRET 18 Uct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 5 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 The USSR's Northern Sea Route ~n I U ~, k ( - 1J ~~~ylll \ ~1tj!~ ~!Juc~lsk 1 k e `"~:. IIpaek~ Ol in' F~ LL 1 IIJtlI~~ w~7 , ~~ \ Cf n vs S The Range Instrumentation Ships CHAZHMA and CHUMIKAN An F-ClassSubmarine ILLEGIB Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 SECRET top Soviet trade officials have advocated new measures for solv- ing the perennial deficiencies in retail trade--goods and serv- ices of poor quality and un- suited to the needs of the con- sumer. One trade official sug- gested that light industrial manufacturing firms be required to develop their own retail stores which would, presumably, be more responsive to the cus- tomers' wishes; another advo- cated the creation of a national specialized wholesale organiza- tion; another would have bonuses paid to workers in light indus- try depend upon the salability of their product. There is no doubt that Mos- cow is acutely concerned over offsetting the poor harvest with better performance in other con- sumer-oriented areas. Prospects, however, are meager for signifi- cant improvement through admin- istrative devices alone. The last major administrative step the government took to improve retail trade was in 1960 when it decreed that manufacturers would sign binding contracts with trade outlets to provide goods of specified quality and quantity. Soviet officials have recently admitted that this law has been largely ineffective. The 1963 naval convoy through the USSR's Northern Sea Route has completed the arduous eastward transit of Arctic waters and now is in the Soviet Far East. The convoy, which in- cluded both merchant and naval ships, left the Murmansk area probably in late August and ar- rived at the Bering Strait in two groups on 27 September and 10 October. Naval elements of the con- voy consisted of two new long- range F-class torpedo-attack submarines, a naval tanker, two ocean rescue tugs, two floating workshops, and two new missile range instrumentation ships, the Chazhma and the Chumikan. Most obese, including e submarines and the range ships, probably will be stationed at the expanding complex of naval bases in the Petropavlovsk area. The transfers bring the number of F-class submarines in the Pacific Fleet to eight and the number of range instrumen- tation ships to six. SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 `" I ` SECRET VIEWS OF WESTERN DIPLOMATS ON COMMUNIST CHINA A grim picture of the in- ternal Chinese Communist scene has recently been sketched by two Western diplomats stationed in China. They are considered perceptive and sound observers by the American consul general in Hong Kong. Both describe a country whose economic problems are grave, whose recovery from the years of disaster is very slow, whose people remain in a state of "resigned apathy" despite incessant political in- doctrination, and whose leaders will probably become still more rigid.. Chinese leaders are report edly far from optimistic be- cause of continued population growth and the lack of any prospect for substantial pro- duction increases in the next few years. To solve popula- tion problems, authorities in Shanghai are advocating late marriage and sterilization, with fairly severe sanctions-- involving income and housing-- applied to those who marry too early or have too many children. This program is unlikely to have much success, however. In agreement with most for- eigners who have traveled in North China during the last two months, the diplomats report that extensive flooding per- sisted for an unusually long time, and, as a result, agri- cultural prospects appear only mediocre for yet another year. Industry gives the impression of "great" technical difficul- ties, redundant labor, and much idle capacity. The British consul in Shang- hai, a Chinese-speaking officer who apparently has more freedom than diplomats in Peiping to maintain local contacts, believes that most people have learned by now to "coexist" with the regime. They pay little atten- tion to ideological matters, judging the regime instead on the basis of what it is doing for them materially, and are therefore dissatisfied because they believe the regime is not doing enough. A Western ambassador sta- tioned in Peiping agrees that more material incentives are necessary to bring peasants and ordinary workers out of their lethargy, but feels there is still some residual idealism among middle level officials such as plant managers. The ambassador expects China's policies--both internal and external--to become tougher and less flexible before they are eventually moderated. He foresees no softening of policies during the political lifetime of Mao Tse-tung. He thinks that in the immediate post-Mao period, "hard-liners" like party General Secretary Teng Hsiao- ping will eclipse moderates like Premier Chou En-lai. More- over, he believes that the next generation of leaders, now 35 to 45 years old, will prove even less flexible than the present group, because they are even more ignorant of the outer world and were developed within a completely indoctrinated bureaucrat . SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 7 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 w "W TP n r7F_ a! ITs-4 IAPAN Tad Trade Chines. E.psr 1.1 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 SECRET CHINESE COMMUNIST OVERTURES TO JAPAN The Chinese Communists are making a renewed bid for in- creased trade with Japan or over a year Peiping has been actively exploring the possibil- ities for expanded nonbloc trade, and the latest overtures to Japan appear to be part of this effort. As a secondary objective, the Chinese probably hope to stir up trouble in US-Japanese re- lations and in Tokyo's dealings with Taipei. trade agreement. Their present tactics are in marked contrast to previous efforts to extract political concessions from the Japanese by using trade as a lever--efforts which resulted in an almost complete rupture of trade and cultural relations in 1958. China-Japan friendship month. Association and launched a Chinese proposals for in- creased Sino-Japanese trade have been accompanied by ex- tensive publicity for moves to improve relations with Japan across the board. Within the past month, Peiping has organ- ized a China-Japan Friendship Sino-Japanese trade, now running at approximately $100 million per year, accounts for only about one percent of Japan' foreign trade. Despite the Chi- nese efforts to expand trade, the limited potential of the China market makes it likely that trade with Peiping will remain a negligible share of Japan's total trade. Peiping's latest moves Carr forward the "soft line" on trade with Japan which the Chinese ini- tiated in the fall of 1962 when they negotiated the Liao-Takasak SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 8 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET The Soviet bloc and Communist China are unlikely to provide significant or effective economic aid for Indonesia in solving prob- lems apt to arise from Djakarta's action in cutting off economic relations with Malaysia- They may, however, offer some economic assistance as a political gesture. No source of meaningful aid is yet in sight. By severing relations, Indo- nesia has lost Malaysia's con- siderable entrepot services and processing facilities, and a market which received--legally and by smuggling--some 50 percent of its exports last year. Most of these goods were re-exported. Although the Indonesians-- apparently referring to aid in general--claim the USSR has al- ready offered all they need "to carry out economic confrontation against Malaysia," it is unlikely that the USSR will be drawn too deeply into this dispute in view of wider foreign policy considera- tions. As part of an earlier program to develop resources on a produc- tion-sharing basis, the Soviet Union reportedly has offered some rubber-processing facilities, but such an offer would take con- siderable time to implement. The Soviet bloc may also take addi- tional token imports of Indonesian rubber, but it is unlikely to shift substantial purchases from the reliable and efficient Malay- sian market--from which it bought about 220,000 tons last year. Imports by the Soviet bloc--mainly 130,000 tons of rubber--amounted to about 5 percent of Indonesia's total exports in 1962. Additional bloc purchases would probably be largely under a barter arrange- ment and, like the production- sharing schemes, would not add hard currencies to Indonesia's limited foreign exchange earn- ings. Prospects that the Soviet bloc will extend other meaning- ful economic assistance also appear dim. The USSR has avoided outright cash gifts, but as a gesture, it may offer Djakarta additional long-term economic credits. However, to date, In- donesia has drawn only about 23 percent of available Soviet bloc credits. Unlike Moscow, Peiping may grant a small cash gift as it has elsewhere this year, but substantial economic assistance 25X1 from Peiping in the near future is not likely. Normal trade gives only limited opportunity to support Indonesia. Presently China takes only 6 percent of Djakarta's exports, mostly rubber. Since the Chinese also receive large amounts of rubber from Ceylon under a long-term agreement, they probably can absorb little more. Trade in other products, such as agricultural goods,tin, or crude oil would have little economic basis. Furthermore Peiping is ap- parently unwilling to make. any significant change in its Malay- sia trade, which earned China about $70 million last year, Peiping's second largest source of foreign exchan e. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 9 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET The Diem regime continues to take repressive measures against potential opponents. Police last week picked up the brother of President Diem's personal physician after re- portedly finding'pro-Buddhist tracts and printing equipment in his home. The government's administrative delegate in the southeastern provinces reported the arrest of his aide, al- legedly on grounds that the latter was "too pro-American." A Vietnamese interpreter at- tached to the US aid mission was also reported to have been arrested on unknown charges. On 14 October, however, the government released a sen- ior vice president of South Vietnam's strongest trade union, the General Confederation of Vietnamese Labor (CVTC), who had been secretly arrested on 7 October. This was apparently in response to an ultimatum from the CVTC president, Tran Quoc Buu, who was threatening an open break with the govern- ment if it did not free the official. The government pre- sumably feared possible reper- cussions from domestic or in- ternational labor circles, par- ticularly during the visits of UN-sponsored observers, who are scheduled to depart for South Vietnam on 21 October. There are further signs that Diem and his brother Nhu are preparing to face a long period of strain with the US. Saigon's English-language press, which reflects the views of Nhu and his wife, has continued to charge that US agencies in Saigon are trying to undermine the Diem regime. Joint US-Vietnamese counter- insurgency activities, however, are continuing without serious interruption. Viet Cong activ- ity in the first week of Octo- ber declined in most areas of the country, following five weeks of more intensified enemy militar acion SECRET 18 Oct 63 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 10 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 -? Algiers CIBRA ,-, i' Ceuta (sp.) 6 .. (U.K.) >. 1 ~_.__ / n...,.. KF MADEIRA ISLANDS (Port.) 25X1' Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET Clashes along the Moroccan- Algerian border probably will continue, and incidents may well develop in new areas, pending negotiations for at least an informal delineation of the dis- puted frontier between Tindouf and Colomb-Bechar. Neither Al- geria nor Morocco commands the resources for an all-out war on the other, and officials of both countries have indicated they have no desire to go this far. and the Morrocans, Even if some accommodation is reached regarding the bor- der, the suspicions with which the Moroccan and Algerian gov- 25X1 ernments regard each other cer- tainly will increase. Each can be expected to encourage and support subversion against the other. No relationship has been proven yet between the Kabylie dissidents in Algeria SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 11 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 w VW REPUBLIC Mogadiscio p SOMALI TRIBES in EAST AFRICA Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 SECRET The Somali Republic, trying to strengthen its defenses against its archenemy, Ethiopia, has accepted a Soviet offer of $28 million worth of mili- tary assistance. Somali Army commander General Daud led the mission which obtained Moscow's help. According to Prime Minis- ter Abdirascid, Soviet assistance is to be used generally only for short-term training. However, the large amount of the offer suggests that a variety of So- viet military equipment will be supplied as well. In the nonmilitary field, Moscow and the European satel- lites have already extended some $63 million in grants and credits to the republic, and over 300 bloc technicians are at work there on various development projects. In addition, Peiping has offered over $20 million in economic assistance The Soviet airline,Aeroflot, has recently been granted full rights at Mogadiscio, the Somali capital. As a result of the Somali military deal with the USSR, both Germany and Italy are likely to re-examine their own rela- tively modest plans to assist the Somali Army. If these plans are dropped, the Somalis could expect no significant help from any other Western European nation. They are still embroiled in a dispute with the UK and Kenya over territorial claims; dip- lomatic relations with the UK were broken last March. France maintains close relations with Ethiopia. The bloc probably would not rush in to fill the vacuum completely, however, out of concern for its relations with Ethiopia and Kenya. Meanwhile, Mogadiscio's emotional involvement with the dissident Somali tribesmen in the Ogaden region of Ethiopia is again leading to serious friction with that country. Somali press and radio are venom- ously attacking the Ethiopian' regime. Frontier incidents occurred along the Ethiopian- Somali border on 11, 12, and 15 October, leaving several dead on both sides. The incidents provoked riot- ing in Mogadiscio on 13 October, partly because the populace be- lieves that the government has not taken a sufficiently strong stand. The Ethiopian Embassy and other foreign--even Soviet-- personnel were attacked, but extensive damage was. prevented by the effective action of the Somali police. The situation both on the border and in the capital re- mains tense. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 12 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 SECRET Congolese Premier Adoula's government has escaped serious criticism for proroguing parlia- ment last month, but the action has left the cabinet itself as the sole target for public resent- ment over corrupt and ineffec- tive administration. During the past two weeks, the government has come under increasingly heavy fire from labor unions The premier is en route home via Europe from the UN sessions in New York. The labor organizations applauded the dismissal of par- liament, but their leaders, frustrated by chaotic economic conditions, now call for a government of "public safety" composed of "honest and respon- sible men." The labor spokes- men say they do not contemplate a general strike to enforce these demands, but threaten a kind of political strike by refusing to participate in draft- ing a new Congo constitution un- less the government is changed. The impact of their threat lies in the fact that there are no other mass political organi- zations, Leopoldville govern- ment circles, moreover, are acutely conscious of the fact that labor unions were the force behind the overthrow last August of the other Congo govern- ment across the river in Brazza- ville. Thus the threat by Leopold- ville unions as led to frantic maneuvering by the politicians. Moreover, there is no guarantee that the unions will not eventually try a general strike. Should they do so,- serious disorders would seem likely. Such disorders not only would provide further ammunition for the anti-Adoula groups, but might reveal that the government's control over the army is less than firm. SECRET Page 13 25X1 25X1 25X1 25X1 Approved For Release 2008/11/07: CIA-RDP79-00927AO04200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 SECRET Europe ITALIAN POLITICAL SITUATION ON EVE OF SOCIALIST CONGRESS The Socialist party congress of 25-29 October will probably authorize party chief Pietro Nenni to negotiate with the Christian Democrats for direct Socialist participation in a new center-left government. The obstacles to the formation of such a government, however, are formidable. Although Nenni's faction seems likely to maintain its majority during the congress, dissension within the faction may develop afterward during Nenni's negotiations over the terms for collaboration with the other parties. National eco- nomic policy is likely to be the most critical issue. Riccardo Lombardi, Nenni's heir opponent, may disrupt these discussions, as he did those last June, if he is dissatisfied with the understanding Nenni reaches with the Christian Democrats on eco- nomic and social measures P Despite the Socialists' private assurances that they will not ask for unreasonable public expenditures in the near future, Christian Democratic leader Aldo Moro has expressed doubt about the Socialists' readiness to assume governmental. responsibilities in the present difficult economic situation, which may cause his own party .to propose a "wage pause" or other austerity measures. He has told the US Embassy that his party can make no conces- sions other than "for appear- ances" beyond those embodied in the Nenni-Moro accord of last June, which Lombardi rejected. Even if his negotiations with the Socialists are successful, Moro is seriously concerned that Social Democratic leader Giuseppe Saragat might at some point "precipitate an insoluble crisis by one of his sudden changes of heart." Conservative Christian Democrats will try to take ad- vantage of the economic situa- tion to exact conditions which would be unacceptable to the Socialists. Although the out- come of the negotiations will not hinge on foreign policy issues, Conservative Christian Democrats and the right-wing parties are also using Lombardi's recent attack on the multilateral nuclear force proposal to claim that the Socialists would dan- gerously alter Italy's foreign policy. It might be necessary to convene a Christian Demo- cratic congress to get the party as a whole to accept an alliance with the Socialists. There is a strong probabil- ity that the Communists and neo- Fascists will initiate violence' as they try to block the forma- tion of a center-left govern- ment. Using some legitimate economic issue, they are likely to create disturbances in which Socialists would feel impelled to demonstrate with the Commu- nists. Such joint action would be exploited by opponents of Socialist - Christian Demo- cratic rapprochement: to but- tress their claim that the Communists and Socialists remain politically united, and that formation of the center-left would permit Communist penetra- tion of the ve n SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 14 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 Approved For Release 2008/11/07: CIA-RDP79-00927A004200070001-0 i y.h,'RJ`1\ET AUSTRIA'S DETE11I1RA'i'ING POLITICAL SITUATION Increasing acrimony between Austria's major parties--the So- cialist,,:; and the Peoples Party-- threatens to break up the coali- tion of the two which has governed the country since 19!'5. A new Socialist coalition with the small ri ;ht'ist pan-German Liberal Party would probably be even less stable than the present govern- ment and might bring a revival of the sharp political animosi- ties which in the prewar era re- sulted in violence between the Socialists and their present coa.l.i- Lion partners. in the inm udiatu postwar period, the Socialists and the Catholic, centrist People's Party felt compelled to bury 1heir enmities in the face of Soviet occupation of the eastern sec- tion of the country. After the Russians left in ltib , however, maintenance of the coalition be- came progressively more dii_1:1culL and was notably so a.' tear they bitterly contested 1962 elections. Friction has been .Lncreasin;. in the coalition for some months. Last spring the Socialists used Liberal, support to score a par- liamentary victory over their coalition partners in preventing Otto Iiabsburg's return to Austria. Last montu, the P ople's 1';crty elected a:; chai.rnt.cn Josef Klaus, who has for some i..ime been noted as less concilia i ory to the Socialist; than firs predecessor, Chancellor Gorba g a . Gorbach will probably be replaced fairly soon as cuancel_icr--possibly by Klaus--if the co:i iition lists. The i,ibera.l [arty has in the past sought all :i ,i rice with the more conservative People's Party but was reebuffe(t :aecause of the unsavory reputai,on of some of its membership. Now Socialist leaders are dic.grin;' with the Liberals and secs, to be carrying their parity with, ;.hen desl)l ie t kdi- tional anLipathy I.owarcl the Liberals. A;c~?iaiic_,. Liberal coalition would be divide: on many issues. In the economic phere, fur ex- ample, ScIcialisst party ch:ii.rman Pittermar has be n pressing for greater trade w.ih the Soviet bloc-- which in the fir L. hall oi 1963 accountec for l5 per ent of Austria'. totai ,;ports. Socialist:; have alsce been .i.;unthusia.;tic about thc EEC t des.irece by more conservat ive Au rians. i`he Liberals oppose renter ..rode with the bloc a u are among the stron;;e i or opou its of t ; cis with Fu.rthermor'. any coarit_con excludin; the P,. :;ale's Party would be somewha? disturb,..ng to various !,usines.: groups wluich have come to ook or% hat parts as their voice in the g - rnment. The like- lihood o! trocii_~ i from this quarter would be increa- d if the sLowdown in cconol~ic act.i !ity noted thus I'