WEEKLY SUMMARY

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CIA-RDP79-00927A004500100001-3
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SUMMARY
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Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 31 July 1964. State Dept. review completed CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 RETURN TO R CQ1 } C' j r`' `' M"DIAI.P.,ux 'MCA SECRET eluded from automatic /and declassification 25X1 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 vor SECRET NW C O N T E N T S (Information as of 1200 EDT, 30 July 1964) THE COMMUNIST WORLD AGRICULTURAL PROSPECTS IN COMMUNIST COUNTRIES The USSR's 1964 grain crop will apparently be large enough to satisfy Soviet needs and make up much of the deficit in the European satellites, which will probably import about as much grain as last year. China,'despite an improved crop outlook, seems to be planning to import more grain than in 1963. CEMA EXECUTIVE COMMITTEE MEETING MAKES SOME PROGRESS Rumania, the chief dissident in past CEMA efforts to- ward economic cooperation, seems to have raised no problems at this meeting, which apparently marked the first effort to coordinate long-term economic plans before they are completed. SOVIET MIDYEAR PLAN RESULTS Economic performance for the second quarter of 1964 dropped below the mediocre first quarter. The shift- ing of priorities has compounded the problem of in- creasingly intensive competition among various eco- nomic sectors for limited resources. USSR COMPLETES MODERNIZATION OF VOLGA-BALTIC WATERWAY 4 Completion of reconstruction of the Mariinskiy Canal system provides a modern north-south transport system for the European USSR significant from both the econom- ic and military standpoint. RECENT SOVIET MILITARY AID TO POLAND 4 Within the last year Poland has acquired the best equipped and supported ground force in the satellites --one of several indications that Warsaw Pact strat- egy now calls for greater reliance on satellite armies. LAOTIAN GOVERNMENT FORCES GAIN GROUND They have so far encountered little resistance in their drive to clear the Pathet Lao from the key road junction between Vientiane and Luang Prabang, but the Communists are not likely to relinquish control of the area for long. Moscow, meanwhile, may be preparing to play an even less active role in the Laos situation. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 .W SECRET ASIA-AFRICA (continued) Page SIGNS OF DISCONTENT IN SOUTH VIETNAMESE GOVERNMENT 7 Both civilian and military leaders in the Kha.nh regime appear restive, and top positions may soon be reshuffled . Viet Cong activity has been tapering off. PAKISTAN FURTHER DEVELOPS "INDEPENDENT" POSITION 8 The Ayub government has made several new moves to build its international ties outside the CENTO-SEATO framework. AREA NOTES On Malaysia-Indonesia 9 and on Rwanda-Burundi 10 REBELLION CONTINUES TO SPREAD IN CONGO Insurgents have captured another provincial capital; Premier Tshombe is still preparing countermoves GHANA CONTINUES LEFTWARD DRIFT In recent months the Nkrumah regime has moved further toward totalitarianism and has formed still closer ties with the Communist world. GREEK CYPRIOTS INCREASE PRESSURES ON TURKS Economic and psychological pressures on the Turkish community are mounting, and a Greek Cypriot military campaign against Turkish strongholds may come soon. EUROPE CURRENT REVIEW OF THE NATO ALLIANCE The fundamental questions raised at last May's NATO ministerial meeting probably initiated the most thorough- going review of the alliance ever undertaken. Prospects are that it will produce no more than organizational ad- justments and perhaps some reduction of NATO's programs. Not even the French want to eliminate the alliance now, and any general overhaul will depend on how Europe finally SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page ii Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 war SECRET 1 EUROPE (continued) decides to organize itself and what relationship it wants with the US. (Published separately as Special Report OCI No. 0342/64C) Page DE GAULLE'S PRESS CONFERENCE 14 The French President, in his 23 July discourse, redefined his policy aims in more pointed terms than ever, particu- larly criticizing the US role in European affairs and German acquiescence in the "American hegemony." ARRANGEMENTS FOR MALTESE INDEPENDENCE The principal opposition party is dissatisfied with the new constitution and accompanying defense and financial arrangements. This, together with the colony's serious socioeconomic problems, will result in a prolonged period of unrest. No independence date has yet been set. CASTRO DEFIES OAS IN 26 JULY SPEECH He "declared" a right to support revolutionaries in any country aiding the Cuban revolution and praised those governments which opposed the OAS sanctions against Cuba. He also laid further groundwork for the case he apparently plans to bring against the US at the UN this fall. PROSPECT FOR NEW EXILE ATTACKS ON HAITI The recent three-week rebel incursion from the Dominican Republic caused little physical damage but inflicted a psychological defeat on the Duvalier regime which may en- courage more such attacks soon. 18 SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page iii Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 IVAW SECRET VW WESTERN HEMISPHERE (continued) Page GUERRILLA ACTIVITY IN HONDURAS 18 Honduran Communists are apparently stepping up efforts to mount a guerrilla campaign in Honduras' north coast area. UNITED NATIONS THANT TRIES PERSONAL DIPLOMACY The UN Secretary General's trip this month to Paris, London, Geneva, Cairo, and Moscow has been essentially a mission in personal diplomacy designed to win political and, more particularly, financial support for the UN. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 VOW SECRET AGRICULTURAL PROSPECTS IN COMMUNIST COUNTRIES The USSR's grain crop this year, although late, will ap- parently be sufficient to satisfy Soviet needs and meet a large share of the deficit in the Eu- ropean satellites. Sizable im- ports therefore appear unlikely unless bad weather either inter- feres during the compressed har- vest schedule or damages crops. In Eastern Europe the out- look is for the winter crop of breadgrains (wheat and rye) to exceed that of 1963--but remain- ing below the 1957-61 average-- in all countries except Bulgaria and Czechoslovakia. Both coun- tries have suffered from drought, and the combination of drought and insect damage in Bulgaria may reduce production to the lowest level in several years. Prospects for spring-planted crops appear better than in 1963 except in Czechoslovakia and Po- land, but rainfall is badly needed to replenish below-normal soil moisture reserves. Require- ments for grain imports in the next 12 months will probably not differ significantly from last year. In Communist China, the win- ter wheat and early rice harvests are expected to be better than in 1963 but probably still below average. Although it is too early to predict the outcome of the important fall harvest, acre- age has been expanded and growing conditions are favorable in many areas. Despite the improved crop outlook, however, completed con- tracts and current negotiations suggest that grain imports in 1964 will exceed the 1963 total of 5.7 million tons. In North Vietnam, the har- vests of early rice and subsidiary crops promise to be better than last year. Despite this favor- able outlook, food imports will probably be continued in order to replenish stocks. In North Korea, precipita- tion was much below normal in May and June, and nonirrigated crops, particularly upland rice, are probably suffering from drought. However, no unusual imports of grain are anticipated at this time. As of early July, available information continued to indicate that the 1964 Cuban sugar crop 25X1 totaled about 3.8 million metric tons, roughly the same as last year's poor harvest, although production 25X1 may have been as high as 4.1 mil- lion tons. Statements by Carlos Rafael Rodriguez, Cuba's agricul- tural chief, suggest that no ma- jor advance in sugar production will be made during the next two years. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 MOW 1W SECRET The recent meeting in Mos- cow of the Executive Committee of the bloc's Council for Mutual Economic Assistance (CEMA) solved major problems of economic co- operation "in a preliminary manner," according to its com- muniqud. No discussion of con- troversia.l issues was reported. Rumania., the chief dissident in many CEMA activities, appar- ently did not hinder cooperation. Poland's representative noted, however, that coordination is being conducted "with full re- spect for the interests of any given country," a. concession to the Rumanian viewpoint. For the first time, an at- tempt is being made to coordi- nate the countries' individual long-term economic plans before they are completed. A review of the results of bilateral consultations to date on plans for 1966-70 enabled the commit- The Soviet economy's per- formance in the second quarter of this year was below the me- diocre results achieved in the first three months of 1964. Difficulties caused by shifting Priorities have compounded the problem of increasingly inten- sive competition among various tee to estimate total planned production and consumption of major industrial products and volume of trade among CEMA mem- bers. Immediately after this multilateral review, a second round of bilateral talks began. The committee also adopted recommendations for cooperation of interested countries in the coal and power industries and discussed development of Poland's Belchatow brown-coal deposits. An agreement formalizing Intermeta.ll, the organization formed by Poland, Czechoslova- kia, and Hungary to coordinate and integrate production of their iron and steel industries was signed during the Executive Committee session. This orga.ni- za.tion is independent of CEMA although it is expected to co- ordinate its activities with a propriate CEMA organs. economic sectors for limited resources. The half-year plan for in- dustrial production was overful- filled, but only because it had been set low in the expectation that the new emphasis on chemi- cals and agriculture would cause SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 1W %or SELECTED DATA ON SOVIET ECONOMIC SIT UATION PERCENTAGE INCREASE COMPARED WITH SAME PERIOD IN PRECEDING YEAR Planned 1st half 1st half 1st half rate of 1964 1963 1962 increase for 1964 Industrial Production 7.5 Chemical Industry 14 Fertilizer 23.4 Pig Iron 6 Crude Steel 6 Electric Power 11 Natural Gas 20 Crude Oil 10 Cement 3 Tractors - 1 Refrigerators 20 Washing Machines 27 Shoes 3 Cotton Fabrics 5 Meat (State-slaughtered) -18 Dairy Products 4 8.5 10 6.7 17 17 16.6 13 9 28.1 6 8 4.8 5 7.7 4.7 13 13 9.8 22 26 19.8 11 12 7.8 10 13 4.1 17 3 5.5 11 23 40.6 28 43 14 0.5 4 0.2 2 2 4.2 19 12 - (Figures not 2 6 - available) 6 6 4.6 * In most Instances the planned rate is the implied annual rate necessary to achieve the goals of the 1964-65 plan. 25X1 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 4OW 1W SECRET dislocations in the economy. The 7.5-percent increase was the lowest in recent years, and no early improvement seems likely. Labor productivity failed by a slight margin to reach its planned rate of growth, and the small increase of investment over the same period for 1963 was less than half that required to fulfill the current plan. In- vestment increases of 37 per- cent and 19 percent respectively in chemicals and agriculture, while impressive, were a.ppa.r- ently not enough to meet the year's goal. In industry, production rose most on a. percentage basis in chemical products. Ferti- lizers, however, failed to meet their target despite an increase of 23 percent. The traditional growth in- dustries--iron ore, pig iron, steel, rolled metal, oil, gas, coal, and electricity--were all on target, but certain compo- nents of the machine-building sector increased at lower rates than a year ago, probably be- cause of retooling. The depressing effects of last year's harvest failure are evident throughout the mid- year report. An increase of only 2 percent was registered for the food and light indus- tries, which were conveniently combined to mask the poor per- formance of the former. The report claims that the 7.5-per- cent growth in industrial out- put would have been over 10 per- cent had it not been for the poor performance of the food industry and a number of branches of light industry. Meat processing fell to the 1962 level--18 percent be- low the first half of 1963-- but sales rose by 2 percent. This apparent anomaly stems from the distress slaughtering in the first half of 1963 which reduced the herds but temporar- ily increased stocks of meat. Bread sales were up 1 percent because of extensive wheat im- ports, which also helped to boost the volume of maritime freight by 34 percent. State housing construction, as planned, showed little or no increase over the first half of 1963. The increase of more than 5 percent in private savings high- lights the shortage of accept- able goods and services avail- able to the Soviet population. At the recent session of the Supreme Soviet Khrushchev reit- erated the government's concern with the 2.5 billion rubles' worth of unsold consumer goods stored in warehouses. Using an appropriate ruble-dollar ratio, this is equivalent to about $1.4 billion worth of goods in the United States. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 I-Ow W oven ets nene4'ye MARIINSKIY SYSTEM Voznesen'ye to Cherepovets Cherepovets t r.: tv~-) Kalach-No-D nv VOLGA- BALTIC WATERWAY Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 SECRET W USSR COMPLETES MODERNIZATION OF VOLGA-BALTIC WATERWAY The completion of the re- construction of the 150-year-old Mariinskiy Canal system is the final step in a major move to open up a modern north-south transport system in the Euro- pean part of the USSR. Until now, the commercial and strategic importance of the Volga-Baltic network has been restricted by the inadequacy of this vital link. The reconstruc- tion increased the average mini- mum depth of the canal from six to twelve feet, permitting ships to obtain higher speeds, and substituted seven large rein- forced concrete locks for the 39 small wooden ones. Ships with an average carrying capac- ity of 2,700 tons are able to transit the route once passable only for 600-ton vessels. Transit time from Leningrad to Cherepo- vets has been cut from eleven days to two and a half. The most significant aspect of the new network is economic. Eventually it will carry 12 mil- lion tons of cargo annually, six times its past capacity. From a military point of view, ship- yards along the route and on the Black Sea will be more useful, since they now have a direct sup- ply route to the Northern and Black Sea fleets. The route can also be used to transfer small destroyers and submarines. In spite of the vast im- provement in the structure of the waterway, commerce will still be limited by ice conditions, 25X1 which leave the waterway open to navigation only from about mid-April to mid-November. RECENT SOVIET MILITARY AID TO POLAND Soviet military aid within the last year has given Poland the best equipped and supported ground force in the satellites. The Warsaw Liberation Day parade on 22 July marked the 31 July 64 first public display in a satel- lite army of FROG-4 (26-nauti- cal-mile) rockets, of any siza- ble quantity of Scud-A (150-n.m.) surface-to-surface missiles (enough to support two field armies), and of SU-7/Fitter SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 4 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 SECRET ground support fighters. The parade also included Snapper antitank missiles and a new am- phibian armored personnel car- rier. Some of the other satel- lites are believed to have some of this equipment, but none has it all. In addition, the Soviet shipment of at least 30 JS-3 heavy tanks to Poland prior to June 1964 facilitated the crea- tion of a tank army, also unique among the satellites. This enhancement of the military capability and prestige of the Gomulka regime appears to represent a fairly recent coalescing of Polish and Warsaw Pact military needs. For sev- eral years, Polisi military lead- ers have been dissatisfied with obsolete ground and air equip- ment provided by the USSR. Polish officers, particularly from tank units which participated in the Warsaw Pact exercise "Quartet" in September, openly expressed their resentment of the fact that while Poland made the largest manpower contribution to the Warsaw Pact of all the satel- lites, it did not have equipment as modern as that of the East Germans and Czechs. From the Wawsaw Pact stand- point, the bolstering of Polish forces is in line with indica- tions that the USSR has reduced its estimate of the size of So- viet troop formations it can mobilize and deploy forward un- der modern war conditions. Thus, it must depend to a greater ex- tent on forces now in the for- ward area, including the satel- lite armies, and these forces need to be better equipped and further integrated into Warsaw Pact planning. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Ph,j A 4 Muong 4'as Vag Vie`ng Sian Namon Road,:. TrAckor trail ' NORTH Mu s g Mock . ? uong KheunV an ?ng oc La ua au Kout r t Onb Ie Phou Keng? hahay uong Phanh. P IJE hang ava_n E. ARREE - ? p Ban Khang,-;,., n T ag re ~ . Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Nawpa SECRET Laotian Government forces have been successful in the early stages of their drive to dislodge the Pa.thet Lao elements from the area near the junction of Routes 7 and 13. The Pathet Lao have offered little resistance to this latest clearing action, apparently pre- ferring to concentrate their small forces at Muong Kassy. Although Pathet Lao propaganda has protested the attacks, there are as yet no clear signs of countermoves. It is unlikely, however, that the Communists will relinquish for long their control over this "liberated area," which has been denied to the rightists since early 1961. Premier Souvanna, on 27 July returned to Vientiane from Luang Pra.ba.ng, where he had sub- mitted four cabinet changes for the King's approval. The cabi- net shifts, involving the re- placement of several members of General Phoumi's rightist fac- tion, are intended to curb cor- ruption and inefficiency in the government. They also appear to reflect the efforts of mem- bers of the Sananikone clan to downgrade the political power of Phoumi, their long-time polit- ical riva.l. Moscow may be preparing to play an even less active role in the Laos situation. Soviet notes of 26 July to the other Geneva Conference powers charged that US actions made it impos- sible for the USSR and the UK to fulfill their functions as co-chairmen. The notes warned that if the latest Soviet pro- posal for another 14-nation con- ference next month is rejected, the USSR would be compelled to re-examine its position as co- chairman, which has become "fic- titious." The Soviets may believe that President de Gaulle's 23 July statement, which excluded Britain from the four powers "bearing direct responsibility" in Indochina, provides a good opportunity to transfer the main locus of East-West contact on Laos from the co-chairmen to direct exchanges among the in- terested powers. Although it is unlikely that the Soviets intend to dissociate themselves entirely from the Geneva machinery, they probably believe that by following De Gaulle's lead they can increase pressure on Washington and London and avoid embarrassing divergen-25X1 SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 6 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 SECRET SIGNS OF DISCONTENT IN SOUTH VIETNAMESE GOVERNMENT There are signs of in- creased discontent and restive- ness among top civilian and mil- itary leaders in the South Viet- namese Government. Various sources and rumors in Saigon have recently indicated that General Khanh will become chief of state and turn the premier- ship over to someone else, pos- sibly to General Minh, the pres- ent chief of state, or to Gen- eral Khiem, now defense minis- ter. These two appear to have the strongest individual mili- tary followings. Khanh has recently re-em- phasized his view that a mili- tary effort must be directed at North Vietnam and possibly Com- munist China, the "real aggres- sor." His emphasis on the ex- ternal threat may be due in part to concern over growing opposi- tion by disaffected elements pushing for a general reshuf- fling of the government. Khanh may also be attempting to pres- sure the US into supporting some form of an extended war. Khanh held a meeting on 25 July of all senior cabinet members and corps commanders, reportedly to discuss ways of improving the war effort and what should be done regarding relations with France. Vietnamese students, con- tinuing their agitation against the French, wrecked a French war memorial in Saigon on 28 July. The National Student As- sociation has criticized the government for not taking, stronger measures against the/French, and has demanded that it nation-25X1 alize French property or make way for a government that would. Viet Cong military ac- tivity appears to be taper- ing off after an intense three- week campaign of large-scale attacks and terrorism against strategic hamlets, but some large-scale attacks are still taking place. On 28 July a Viet Cong force of battalion strength ambushed a relief force near a district capital 30 miles north of Saigon. This was the first major engage- ment between the Viet Cong and government forces in five days. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 7 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 NOW, *fto, SECRET PAKISTAN FURTHER DEVELOPS "INDEPENDENT" POSITION Pakistan has made several new moves in recent weeks to build up its international ties outside the CENTO-SEATO frame- work and further dilute its par- ticipation in SEATO. In western Asia, Pakistan has joined with the other two regional members of CENTO--Iran and Turkey--in establishing a new organization for "regional cooperation for development." Agreed economic objectives in- President Ayub practically elude the eventual merger of repudiated Pakistan's obligations their national airlines. Foreign as an ally against the Communists Minister Bhutto has undercut ef- in Southeast Asia when he re- forts by Iran and Turkey to por- cently told an interviewer that tray the new organization as sup- he did not believe his country porting CENTO objectives. Ayub would get involved in hostilities probably hopes that strengthening there because "our policy is to Pakistani ties with Iran and avoid war unless we are attacked." Turkey outside CENTO will allow This goes considerably beyond greater freedom to downgrade Pakistan's previous refusal to Pakistan's participation in pacts allocate troops for possible ac- and reinforce his "independent" tion in Laos because of the grow- foreign policy. ing military threat from India. Pakistan, like France,now supports the convening of a 14- nation conference in Laos, as demanded by Communist China, the USSR, Cambodia, and North Vietnam. Pakistan's Foreign Minister Bhutto, who recently talked with De Gaulle, presumably raised this issue. At the recent Commonwealth conference in London, Ayub man- aged to weaken the final com- muniqud's reference to the Ma- laysian problem--a favor to the Indonesians, who support him in the Kashmir dispute with India. Ayub, who would like to inherit Nehru's mantle as foremost Asian statesman in the Commonwealth, was generally recognized on this occasion as the principal spokes- man among the Asians on the broader issues. Peiping will welcome these 25X1 developments as evidence of the success of its efforts to court A yub. The Chinese have recently stepped up their campaign to expand their ties with the Ayub government and thus to encourage Pakistan's movement toward a more "independent" international posi- tion. The Pakistan commerce minister has just returned from Peiping with Chinese proposals SECRET 1 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 SECRET E for an expansion of trade. Paki- stan International Airlines-- the only nonbloc carrier flying regular service to mainland China--now is acting as world- wide general travel agent for the official Chinese tourist agency. Last week the official Chinese and Pakistani news agen- cies signed a friendship and cooperation agreement. Chinese efforts to promote closer relations with Pakistan will probably increase further during the months ahead. Peiping is working hard to expand Chi- nese influence in the whole Afro- Asian bloc and is probably count- ing on assistance and support from Pakistan. Indonesia-Malaysia: Although there is no evidence that Dja- karta directly inspired the 21- 25 July rioting between Malays and Chinese in Singapore, In- donesian activities certainly contributed to the tense atmos- phere which precipitated them. The violence further strains Malaysia's tenuous internal re- lationships and can easily be exploited as part of Indonesia's long-range program against Malaysia. months has been directed at in- flaming Malay racial feeling against the Chinese who comprise about 75 percent of Singapore's population. During the weeks preceding the riots, local Malay extremists promoted a separate propaganda. campaign that was 25X1 virulently anti-Chinese and hostile to the Chinese-dominated Singapore government. An Indonesian propaganda campaign during the last four SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 WWMOI~ too SECRET Rwanda-Burundi: The con- tinuing bitter tri al rivalries in Rwanda and Burundi (shown on Congo map on reverse of this page) may soon lead to another attempt by Rwandan refugees to invade their homeland from Bu- rundi. The refugees are members of the minority Tutsi tribe who fled three years ago when the majority Hutu tribe seized power from them. They made several invasion attempts early this year and once got within 25 miles of Kigali, the capital, before Rwan- da's 1,500-man army and police force stopped them. The US Embassy in Kigali reports strong indications that a renewed attack is likely in the next few weeks. Refugee military leaders reportedly are gathering in northeastern Burundi. The Tutsi forces may be tougher this time. Some have had guerrilla training in Communist China, and others have acquired rifles while fighting alongside Congolese rebel forces. The Tutsi-dominated Burundi Govern- ment winks at the refugees' ac- tivities. New reprisals by the Hutus against Tutsis still in Rwanda are likely if another invasion is attempted. In the wake of previous forays, some 10 000 Tut- sis were slaw htered. SECRET 31 July 64 Page 10 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 N"Moo, %W CAMEROON REPUBLIC OF THE CONGO Province boundary National capital Rebel held region Rebel activity 0 100 200 Miles 0 100 200 Kilometers CENTRAL AFRICAN REPUBLIC 6ANCL gJnoa9 1, r Lnnivnn u MYAt- DOMBE ..,(LAC LEOPOLD II) OOJUIUCUAA VILLE LUALA `1 KATANGA- / LAs ., ? eAnrml ' ...~ \^ Elisaaeth,ille i +t NORD LA AL KI VU OR rnwaer, Gom J..~./ ~. ,,, WANDA' Bukavu ?K ALI Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 10.1-1 Rebels continue in eastern Congo, and ing little resistance now almost worthless tional Army (ANC). %%No SECRET to advance are meet- from the Congo Na- Small groups of insurgents, including ANC deserters, are ad- vancing northward toward Stan- leyville after the capture last week of Kindu, capital of Mani- ema Province. The commander of the Stanleyville garrison has sent two companies to meet the rebels, but neither is consid- ered reliable. Whether Stanley- ville falls may depend on the attitude of its volatile resi- dents. They vigorously cheered Tshombd on his visit there on 25 July, but supported Antoine Gizenga's leftist regime two years ago. In Albertville, rebel-held capital of North Katanga, Gaston Soumialot announced on 21 July the creation of a "Provisional Government of National Libera- tion" with himself as president. If Stanleyville falls, Soumialot may move his "government" there. So far few of the disorganized and uncoordinated rebels acknowl- edge his leadership, but he may become their titular leader by default. New violence has broken out in Mai-Ndombe Province in the western Congo. Rebels captured at least two towns this week. Their statement that they intend to "march on Leopoldville"--lit- tle more than a hundred miles away--may cause some consterna- tion in the capital and complicate TshombC's problems there. Tshombd is increasing his efforts to organize a force to engage the insurgents. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 11 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 SECRET Since the referendum in January proclaiming Ghana a one- party state, the Nkrumah regime has continued to move toward totalitarianism and still closer ties with the Communist world. With Nkrumah reaffirming his fundamental bias for Marxism- Leninism, Communist influence in the country is expanding steadily. Nkrumah's coterie of left- ist and pro-Communist advisers in recent months has gained in- creased authority over the man- agement of Ghana's economy at the expense of Western-oriented civil servants. The recently appointed minister of finance, K. Amoaka-Atta, is a vociferous exponent of socialism and closer economic ties with Communist countries. Other extremists dominate the committees set up to administer the seven-year development plan inaugurated last March. The ultimate goal of the plan is a totally social- ized economy. Through import-licensing procedures, vigorous efforts are being made to reorient trade to the "socialist" countries. The current goal is to increase im- ports from these countries from 10 percent of Ghana's total in 1963 to 30 percent this year. Ghana recently shifted from West- ern sources to the USSR for the bulk of its crude oil require- ments. This decision was influ- enced in part by Ghana's desire to utilize credits with the Com- munist countries and to con- serve foreign exchange, but political considerations are also behind the move. Ghana's involvement with Communist countries has deepened on other fronts. The Soviets have begun constructing for the Ghana Air Force a large base at Tamale in northern Ghana which will be capable of handl- ing heavy aircraft. Recently the USSR provided two naval patrol-boats. Peiping has ex- tended a new interest-free credit of $22.4 million, al- though Ghana has drawn only about $3 million from a. $19.6- million credit granted in 1961. Total economic grants and credits by Communist countries to Ghana now stand at $212 million. The educational system, one of the few remaining bastions of Western influence, is ex- pected to receive a substantial infusion of Soviet teachers this fall. The regime's ideological institute at Winneba, where political cadres are taught Marxist-Leninist theory adapted to the special requirements of "Nkrumahism," already supports a lecture campaign in the second- ary schools and will shortly implement a system of compul- sory political courses in both secondary and advanced schools. SECRET 31 July 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 12 Approved For Release 2008/03/27: CIA-RDP79-00927A004500100001-3 Approved For Release 2008/03/27: CIA-RDP79-00927AO04500100001-3 ,%We 111111111110 BULGARIA Kormaki ' Teblos Kyreaia