WEEKLY SUMMARY

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CIA-RDP79-00927A004600120001-0
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SUMMARY
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4 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 b November 1964 CENTRAL INTELLIGENCE AGENT:: OFFICE OF CURRENT INTELLIGENCE State Dept. review completed Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Impe SECRET (Information as of 1200 EST, 5 November 1964) THE COMMUNIST WORLD Page COMMUNIST LEADERS GATHER FOR MOSCOW CELEBRATIONS 1 Consultations in Moscow this week end among leaders of Sino-Soviet bloc parties, including Chou En-lai, -probably will establish a framework within which Sino- Soviet differences will be confined in the future. SOVIET INTERNAL DEVELOPMENTS 4 The Pravda editorial for 1 November, a long policy announcement, was intended to reassure the party and the people that the Brezhnev-Kosygin leadership will not initiate new moves inimical to their interests. BLOC ECONOMIC SUPPORT FOR THE UAR 5 Credits extended this year will permit Cairo to move ahead with development projects but will do little to ease its current financial crisis and its shortages of consumer goods. NEW CABINET IN SOUTH VIETNAM The new civilian government is composed primarily of experienced technicians, but their ability to develop strength and political support to concentrate on the war effort remains in doubt. SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 SECRET ASIA-AFRICA (continued) wage AREA NOTE On Indonesia 7 AREA NOTES On Saudi Arabia and on Congo 8 NEW REGIME IN SUDAN Khartoum is quieter, but various factions in the new civilian government are jockeying for position. The Communists form the most solid bloc in the cabinet. FRANCE TRYING TO DISENGAGE IN GABON Paris appears to have decided to withdraw its support from unpopular President Mba, but seems uncertain what to do about any successor regime. INTRIGUE CONTINUES IN TANGANYIKA AND ZANZIBAR Radical elements on Zanzibar claim to have uncovered a "counterrevolutionary plot." The authorities in Tanganyika are supporting the buildup of Mozambique nationalist guerrilla capabilities. THE MLF AND THE ALLIANCE The prospect that the multilateral nuclear force may actually be formed has aroused strong French opposition which could have some disruptive effects within the alliance. AREA NOTE 13 On Britain ITALY'S NATIONAL MUNICIPAL ELECTIONS The 22-23 November elections will be widely viewed as a plebiscite on the Moro government and,,if the Socialists suffer greater than expected losses, the party will have to reconsider its participation in the government. WEST GERMANY MOVES TO PLACATE ISRAEL Bonn is pressing German aircraft firms to offer attrac- tive jobs to missile scientists working for the UAR and is also cooperating with Israel by assisting in nuclear research and providing military aid. AREA NOTE L5 On Nordic Foreign Ministers SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY P,ige ii Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 SECRET WESTERN HEMISPHERE TURMOIL IN BOLIVIA The military leaders who overthre,u President Paz Estenssoro have not yet formed a government, and the delay is opening the way for extreme leftists and Communists to exert their influence. Pge ;6 FREI TAKES OFFICE IN CHILE The new president is pledged to conduct a vigorous program of economic and social reform, but he is confronted with major national fiscal problems. His success may hinge on his party's fate in the congression al elections next March. REPERCUSSIONS OF BRAZILIAN MILITARY INVESTIGATIONS Military investigations which have turned up cases of political corruption and subversion are causing serious problems for President Branco and straining the administration's relations with congress. AREA NOTES On Ecuador UN MEMBERS TRYING TO RESOLVE ARTICLE 19 IMPASSE There is increased activity from all sides to avert a showdown as many nations intensify their efforts to resolve the problem before the General Assembly con- venes on 1 December. SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page iii Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 SECRET Consultations in Moscow this week end among leaders of Sino- Soviet bloc parties probably will establish the framework within which the Sino-Soviet conflict will be conducted in the immediate future. have previously taken a promi- nent role in the polemic. Their presence is probably intended to lend authority to the group by showing that the dominant militant faction in the Chinese party is represented. Chou En-lai will head a high-level Chinese Communist del- egation. His presence will per- mit the first face-to-face nego- tiations between Chinese and So- viet leaders since the Moscow confrontation in July 1963. It probably reflects a Chinese esti- mate that recent developments in the USSR can be exploited to Peiping's immediate advantage. The Chinese will almost certainly seek to make the pro- posed December preparatory meet- ing of 26 Communist parties the central issue in discussions. They probably believe that con- fusion in Moscow and strained relations between the CPSU and other Communist parties have increased the pressure on the Soviets at least to postpone this meeting. The Chinese delegation ap- parently was carefully chosen to convey the impression that Peiping is ready for serious negotiations. Chou is the Chi- nese leader presumably most ac- ceptable to the Soviets and only two of the men accompanying him Since Khrushchev's downfall, Moscow and Peiping have appar- ently been cautiously awaiting moves which would reveal each other's intentions and possibly end the truce in polemics. Al- though the new Soviet leaders quickly reaffirmed most of the positions long attacked by Pei- ping, they have sought to create the impression of a. desire to ease the tone of the conflict. The Chinese, for their part, welcomed Khrushchev's removal, addressed a congratulatory mes- sage to the new leaders, and in- dicated they were adopting a posture of "watchful waiting." They also served notice, however, that they would not compromise on "principles" by reprinting statements of pro-Peiping for- eign Communists underlining ob- stacles to a rapprochement created by Moscow's adherence to previous positions. The lull in polemics since Khrushchev's removal and the recent exchange of courteous messages suggests that both Mos- cow and Peiping intend to pre- serve maximum room to maneuver. SECRET Page 1 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 SECRET In the talks the USSF will probably try to avoid a fcrmal split with China in accorcance with the general desire it the Communist world. The Soviets will probably represent these talks as an opportunity for Pei- ping to reconsider its opposi- tion to a new conference and the preparatory meeting. The Russians undoubtedly will again disavow any intention to "excom- municate" the Chinese or to es- tablish a new centralized Com- munist organization. The Pravda, editorial called for restoi ion of unity on the platform of the Moscow pronouncements of 1957 and 1960 and on the basis of "complete equality and voluntary cooperation." Possibly in response to information that Chou En -lai would attend Moscow's 7 Novem- ber anniversary celebrations, the Soviets have now drawn the lines clearly on two major posi- tions most sharply attacked by Peiping over the past year--the Partial nuclear test ban treaty and the proposal for a prepara- tory meeting for a new interna- tional Communist conference. Moscow broke the post-Khrushchev silence on the test ban with a Pravda editorial on 1 November hailing the treaty as a proof of the "positive results," achieved by Soviet foreign pol- icy. The next day a, communique on Soviet talks with an Austrian Communist delegation stressed the need to proceed with the preparatory meeting. The Soviets also sharpened political battle lines by pub- licly inviting the Yugoslavs to attend the Moscow ceremonies and by ignoring the Albanians. It seems likely that Chou's most immediate objective is to get the meeting postponed. The Chinese probably calculate that postponement would be viewed by SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 2 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 `fry I%d SECRET other Communists as a victory for Peiping and would handicap Moscow's efforts to maintain its leadership of the bloc. Chou will probably press for renewal of bilateral talks with the Soviets offering this as a. way out of the impasse which existed before Khrushchev's re- moval. Such a move would prob- ably be well received by the European Communist parties and would be aimed at confronting the Soviets with a choice be- tween appearing to rebuff an ostensibly conciliatory offer or postponing the preparatory meeting. The Eastern European dele- gations will be primarily inter- ested in impressing upon the new Soviet leadership that any future tactics employed in the Sino-Soviet dispute can not be SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY at their expense. The determi- nation of the Eastern European leaders to look to their national interests is reflected in the decision by Czechoslovak party leader Novotny and Rumanian party leader Gheorghiu-Dej not to join their counterparts from Poland, East Germany, Bulgaria, and Hungary at the meeting. This is strikingly true in Novotny's case. He has had a long record of obediently re- sponding to Moscow's beck and call. Gheorghiu-Dej is contin- uing his long-standing policy to attend meetings of bloc lead- ers. Despite the unusual impor- tance of this meeting for the future of the Communist movement, he probably reasons that his in- dependent posture and maneuver- ability in bloc affairs is best preserved by not personally as- sociating himself with collec- tive bloc decisions. Page Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 SECRET The Pravda editorial for 1 November, a Tong policy pro- nouncement by the new leader- ship, was essentially an exten- sion and elaboration of the first such statement which appeared in Pravda on 17 October. The editorial reassured the party and the people that the new team would work for the improvement of socialist democ- racy and legality and the eradi- cation of violations of law and order. It stressed that col- lective leadership now will be strictly observed. The editorial also gave the impression that, in compari- son with Khrushchev, the new leaders will bring to their prob- lems a more solid and business- like approach. Boasting and idle talk were again castigated, -as was any "vulgarizing depre- ciation" of ideological work. There were no references to reallocation of resources among the military, heavy in- dustry, and the consumer. How- ever, the grandiose--and in large part unrealistic--long- range goals approved at the 22nd party congress were.repeated. According to official doctrine, achievement of these targets by 1980 will bring the USSR to the stage of Communism. Pravda reiterated several themes put forward by Khrushchev during the past two years. It stressed that labor productivity should be improved by greater use of modern technology and in- creased efficiency rather than by following the traditional course of simply adding to exist- ing capital assets. Investment should be concentrated on proj- ects which would show a quick return and maximum results for minimal expense. Wasteful pro- ductive processes and low-quality output were again severely crit- icized. Attacking "subjectivism in planning," the editorial argued that it is necessary to "learn to make the right use of economic levers and methods in economy, cost accounting, prices, credit and profits." This may be another indication of continuing support for the economic liberalism concepts as- sociated with Liberman. The role of incentives was recognized clearly in the call for drastic improvement in the quality of industrial output, including consumer goods and housing. The strong- est thing Pravda could say for agriculture was that "certain successes" have been achieved. Khrushchev's penchant for issuing sweeping decrees and his. incessant revamping of the party and governmental adminis- trative networks were roundly scored. The idea that "com- plex economic problems can be solved .by mere injunction, that it is only necessary to re-ar- ganize administrative machinery ...or split a trust in two... is thoroughly wrong:" SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 4 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 '%No SECRET `"' The Communist Wind BLOC ECONOMIC SUPPORT FOR THE UAR The USSR and Eastern Euro- pean Communist countries are winding up negotiations on sup- port for the UAR's economic de- velopment program. A Soviet credit of $280 million extended last May to finance projects under the UAR's second Five- Year Plan (1965-1970) has been followed by new credits from Rumania and East Germany for over $50 million. Current ne- gotiations with Poland may re- sult in additional economic credits. Total bloc economic assistance since 1955 now amounts to almost $1.1 billion. Contracts implementing the Soviet credit were concluded in September. Soviet assistance will continue to be concentrated in Egypt's metallurgical, petro- leum, and electric power indus- tries. Over half the new credit is to be used for two projects --expansion of iron and steel facilities at Helwan and con- struction of a second lubricat- ing oil plant at Suez. Other projects include construction of a heavy machinery plant, a machine-tool factory, and a thermal power station, and es- tablishment of 20 new technical training centers. Rumania, extending its first credit to Egypt, agreed to help build two cement plants and a soda products plant and to provide equipment and installa- tions to extract and concentrate phosphates. According to the Egyptian deputy premier for in- dustry and mining, Rumanian aid for these projects will total $18 million. Additional credits may be forthcoming, however, as the Rumanian ambassador to the UAR indicated last August that his country would extend $70 mil- lion in economic credits. The new $35-million East German credit is to be used to construct textile factories, cement p,.ants, and metallurgical and electrical installations as well as to as- sist the mining industry. Czechoslovakia, although extending no new economic credits to Egypt, has agreed to partici- pate in a number of new indus- trial projects utilizing funds still available from a Czech credit of $57 million extended in 1962. Previously, only $10 million of that credit had been designated for specific use. The new bloc aid will per- mit Cairo to move ahead with economic development projects, but it does little to ease Egypt's current financial crisis and its shorts es of consumer goods. SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY 25X1 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 %00 *400, SECRET The new civilian government headed by former Saigon Mayor Tran Van Huong is composed pri- marily of experienced tech- nicians. Its ability to develop the necessary strength and po- litical support to concentrate on the war effort, however, re- main in doubt. The cabinet was announced on 4 November, four days after Huong was approved as premier by the High National Council. Huong, who has outlined a pro- gram including political and economic freedoms within limits of wartime discipline, serves as his own defense minister. Nguyen Luu Vien, retaining the Interior Ministry, also acts as first deputy premier. US-trained economist Nguyen Xuan Oanh is second deputy. The cabinet mem- bers are predominantly from the southern part of the country. The new leadership is probably acceptable to General Khanh, who has been formally designated to remain armed forces commander. Khanh and other senior officers show little enthusiasm for the gov- ernment, however. Their sup- port may become even more halfhearted should the now government prove unwieldy or be slow in producing results. There are also indications that Buddhist leaders, particu- larly the more radic Quang have reservat al Tr.. *nnG ahnnt , the new government. 25X1 25X1 The week's military ac- tivities were highlighted by an enemy mortar attack on Bien Hoa Air Base on 1 No- vember. Five US B-57 bombers were destroyed and 13 B-57s were damaged in addition to 11 other aircraft. The Viet Cong's success in mounting this "high-impact" operation may encourage the Communists into further ventures of this kind. SECRET Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 SECRET Indonesia: President Sukarno was due to return to Indonesia this week from his most recent global tour. His seven-week trip included a three- day visit in Moscow in late Sep- tember and a briefer stop in Shanghai on 4-5 November. Acting president Subandrio, concurrently first deputy prime minister and minister of foreign affairs, was asked, during a recent speech to police officers, how the revolution would be con- tinued if Sukarno were no longer able to lead. According to the Indonesian press, Subandrio re- plied that the revolution would go on by making the entire pub- lic "progressive" and not through a clash of forces or by "playing at a coup d'etat." During Sukarno's absence, a polemic developed between Com- munist and non-Communist elements in Indonesia over a series of issues. The debate, waged chiefly through press articles, w;ls ex- pressed in strong terms and for a few days was unrestricted. Either at Sukarno's orders or with the prospect of Sukarno's return in view, acting president Subandrio on 29 October sressed to non-Communist leaders the need for unity and for tho ces- sation of argument, and the tone of the debate has softened considerably. Adam Malik_ the minister of trade who has chal- lenged the Communists repeatedly during recent months and who was a leading figure in the debate, was summoned to Tokyo on 19 October by Sukarno SECRET Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 SUDAN SANKURII iBVl I NDI) BUJUMBURA MFLELE t~~I Rebellion , aFr, Su xiiAS i KWANGC3 J Xabonga~' Z SOUTH .4T/l\ A N G 0 L A OCEAN 4 NOVEMBER 1964 Frol,incin7 boundaries h.- beerz 'rsterpolotr d jrom -Img I 46222 majrs and intelligeii eports. and arc nv1 d . ' t,7 ? REPUBLIC OF THE CONGO International boundary Province boundary Q Naticnal capital * Province capital Approximate area of uprising c BRAZZAVILLE AKE Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 - SECRET .woe Saudi Arabia: King Saud was deposed on November in favor of Crown Prince Faysal by the united vote of the cabi- net, religious leaders, the royal family, and a consulta- tive council of distinguished persons. The armed forces and the national guard appeared to play a passive role, and the change is receiving general sup- port from the populace. Congo: The rebel military posit on appears to be crumbling rapidly in the face of continu- ing government advances. Gov- ernment troops in the northwest have cleared the rebels from the Bumba and Boende areas and are heading toward Ikela, 190 miles west of Stanleyville. Other government forces have freed Sankuru Province of organized King Faysal has not yet appointed a new prime minister. He may continue to exercise that office himself with his brother and deputy premier, Prince Khalid, carrying the burden of routine work. Ultimately, Fay- sal is expected to design Khalid as heir annarent. rebel units. In the southeast- ern Congo, Belgian Colonel Van Der Walle's "Fifth Brigade"-- composed of a 120-man mercenary force, Congo Army elements,and a Belgian logistics team--began its drive north from Kongolo to Kindu on 1 November. The govern- ment military position in the east, in the Uvira-Bukavu-Goma area, has also improved. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page 8 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 SECRET NEW REGIME IN SUDAN The situation in Khartoum is quieter, but the stability of the newly formed civilian government is uncertain. Some shuffling of cabinet posts is already taking place. The Sudanese Communist Party won a major victory dur- ing last week's negotiations, despite its numerical weakness. Lack of real leadership and fragmentation among the non-Com- munist groups apparently enabled the Communists to get three and possibly four ministerial posts. Although their portfolios are for the most part minor ones, the Communists are the only co- hesive bloc in the cabinet. Some members of the civilian National Front which organized the new government, and which includes representatives from political parties and professional groups, reportedly opposed early Commu- nist efforts to dominate the front. President Ibrahim Abboud, who led the former military junta, has been retained as nominal head of state and chief of military affairs. The de- fense portfolio, however, is held by the new prime minister, Sir Khatim al-Khalifa. Abboud has been given limited legisla- tive veto powers, presumably to minimize the chance of factional deadlocks within the cabinet. The National Front appar- ently is now intended to func- tion as a political party, and front leaders presumably hcpe to control the elections that have been scheduled to take place next March. In the past, however, the traditional politi- cal parties have consistently failed to form any cohesive al- liance, and their divisions in- crease the possibility tha', the Communists will dominate front activities. The future role of th- arm is still unclear. Southern spokesmen also seem dissatisfied with their limited role in the new govern- ment. They had hopes that. at least three portfolios would be assigned to southerners, and have already refused to accept one of the two southern candi- dates finally named. SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 BRAZZAVILLE -' SLEOPOLDVILLE Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 SECRET FRANCE TRYING TO DISENGAGE IN GABON France's apparent decision to withdraw its support from unpopular President Leon Mba has plunged Gabon into a new polit- ical crisis. The President left Gabon for Paris on 25 afte~ng informed that French troops guarding him would be withdrawn on 1 Novem- ber. Mba's unwanted presence in France where he had hoped to plead his case before De Gualle has further complicated an already delicate problem. Since last February, when the French reinstated Mba after he had been ousted by a mili- tary coup, anti-Mba and anti- French sentiment has grown as Mba has shown his vindictive- ness. The immediate cause of Paris' decision to withdraw its support was probably the stepped-up campaign of terror waged by Mba's goon squad over the past six weeks. Even some local Europeans have been victimized during this period. Gabonese officialdom is attempting to maintain an air of normalcy despite the fact that the French withdrew their guard unit from the presiden- tial palace on 1 November. Official announcement of Mba's departure was not made until 31 October when the government bulletin explained that the purpose of the trip was to consult with Paris on aid mat- ters. Mba's cronies are calling for still more repressive meas- ures against opposition elements who have evidently not yet at- tempted to exploit the situation. Local French diplomats have continued to emphasize Mba's pro-Western position in foreign policy. They are probably trying to justify past French support of him, and may also be uncer- tain over Paris' final decision. The most widely popular suc- cessor at this point would prob- ably be the imprisoned Jean Aubame, Mba's principal political opponent, who headed the sh?.3rt- lived provisional government last February. Jean Marc Ekoh, who was a member of the provisional government but who is at liberty, also appears to have considerable support. Both men are high?_y competent politicians of the older generation, and have been generally pro-West and part:.cu- larly favorable to the US. They have become strongly anti-French, however, as a result of Paris' support of Mba. Paris has now apparently become uncertain as to how to proceed. To protect their own interests, the French are prob- ably maneuvering to confine Mba.'s leading opponents, especially Auba.me and Ekoh, to a subordinate role in any successor regime, if not to exclude them altogether. Paris is particularly interested in protecting access to Gabon's considerable mineral resources, which include the most concen- trated high-quality uranium 1e- posits in the Western world. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page l0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 v S"o SECRET INTRIGUE CONTINUES IN TANGANYIKA AND ZANZIBAR Tanganyika and Zanzibar-- newly renamed the United Republic of Tanzania--continue to be the scene of considerable political intrigue, part of it directed against neighboring Mozambique. Some 150 Zanzibaris--mostly Arabs--were arrested last week by a few radical members of the Revolutionary Council on the island. The action was prompted by rumors of a "counterrevolu- tionary plot" with "British involvement." Vice President Karume approved the arrests, although the regular Tanzanian police authorities were not involved. Over the past few weeks, however, Karume has become gen- erally somewhat more moderate and has shown signs that he is beginning to distrust many of the radical elements around him. He recently ordered the dissolu- tion of the Revolutionary Trade Union and Students Union, two of the three Communist-front organizations on which the power of the Revolutionary Council is based. Soviet military aid has arrived on the mainland Asia-Arica According to local rumor, the Soviet arms are destined for the Tanzania-based Mozambique nationalists, but it is more likely that they are for the Tanzanian Army, possibly for a planned fourth battalion. Gov- ernment leaders have stressed that they need such weapons to defend their Mozambique border in case the Portuguese retaliate for Tanzania's sheltering the nationalists. One Tanzanian battalion is training with Chinese small arms delivered in early September, while the two remaining have British equipment. Other arms, more clearly intended for nationalist opera- tions in Mozambique, have been provided by Algeria, which has been trainin nationalist guer- rillas. population. A detachment of Zanzibar troops with Soviet antiaircraft guns was shipped to Mtwara last month, but was returned because it had engaged in a wave of banditry against the TanL7anvikan The Algerian ambas- sa or o anzania had said earlier that arms shipments for the nationalists would be arriving from Algeria by both air and sea in the near future. He also stated that the Mtwara airfield on the Mozambique border is being lengthened and improved, presumably to facil- itate anti-Portuguese activities. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Page it Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 SECRET The showdown on the multi- lateral nuclear force (MLF) ap- pears to be approaching. The prospect that the force may actually be formed has aroused the French to active opposition, although the US has agreed that it is not feasible to have a MLF charter by the year's end, and that the new British Govern- ment must have time to decide about joining. A crisis within the alliance becomes a, distinct possibility during or even be- fore the next NATO ministerial meeting scheduled for mid-Decem- ber. Britain's new Labor govern- ment earlier this month launched an alternative proposal for com- bining existing national nuclear deterrent forces of NATO mem- bers into a seaborne MLF. The seaborne component would be significantly smaller than the 25-ship, 200-missile force ad- vanced by the US, however, and all forces would be placed in a new NATO nuclear commander under SACEUR. The plan is de- signed to preserve a. useful role for Britain's existing V-bomber force and Pershing land-based missile battalions, its TSR-2 supersonic strike aircraft now under development, and its pro- grammed nuclear submarines to be equipped with US-furnished Polaris missiles. The Wilson government hopes that the full commitment of these forces to NATO can be exchanged for a SECRET greater voice in the use of the US' strategic nuclear deterrent forces. West Germany, which has until now demonstrated a strong interest in setting up a sea- borne MLF by the end of the year, has not yet reacted strongly either to the UK plan or to the prospective delay. German spokesmen have indicated they are willing to examine the Brit- ish idea, although they are re- portedly disturbed that the de- sired timetable will not be kept. Italy and the Netherlands have advised the US they were not prepared to make a decision to join the MLF until early next year. Both are probably relieved that. London is taking a more active role in discussing nu- clear arrangements in the al- liance. In principle, the UK plan would provide a place for De Gaulle's force de frappe. The French, however; have a.Twa.ys passively opposed an MLF as in- consistent with their concept of European nuclear defense strategy, which would invalve a nuclear deterrent independent of US control or participation. They probably see nothing new in the UK plan. It has probably increased French anxiety that any MLF will foreclose possi- bilities of a Gaullist-style Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Party Leader Deputy Leader; Treasury; and coordinator of domestic affairs Chairman of the Planning Committee; Economic Affairs Home Office Education and Science Social Services and Wales Agriculture Labor Technology Steel Housing Transportation Foreign Affairs Commonwealth Affairs Defense Foreign Trade Health Scotland Pensions Power Aviation Public Building and Works Land and Natural Resources Post Office Law Colonies Overseas Development OTHER PARTY LEADERS Chairman of the Party Vice Chairman of the Party General coordinator, party strategy & tactics Chief Whip, House of Commons Deputy Whip, Commons Party Leader, House of Lords Deputy leader, House of Lords Sir Alexander Douglas-Home Reginald Maudling Edward Heath Sir Edward Boyle Quintin Hogg Sir Keith Joseph Christopher Soames Joseph Godber Ernest Marples lain Macleod John Boyd-Carpenter Enoch Powell R.A. Butler Duncan Sandys Peter Thorneycroft Edward du Cann Richard Wood Michael Noble Mrs. M. H. Thatcher Mr. J.W.W. Peyton Angus Maude J.E. Ramsden F. Corfield Miss M. Pike Sir John Hobson; Sir Peter Rawlinson Julian Amery Robert Carr Lord Blakenham Michael Fraser Selwyn Lloyd Martin Redmayne William Whitelaw Lord Carrington Lord Dilhorne Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 SECRET European confederation, and make a. common Franco-German defense policy impossible. In a 29 October talk with US officials in Pa.ris,a senior French Foreign Ministry official's personal view was that if the Britain: Conservative leader -D_o_u_gTa.s-Home has given the key posts in his "shadow cabinet" to Maudling and Heath, but without favoring either as heir apparent for the leader- ship. The US Embassy in London believes Douglas-Home probably has not yet made up his mind who should be his successor. Major responsibility under him is split between the two front runners--Maudling for party operations, Heath for policy planning. This should give both.men ample opportunity to prove themselves in opposition. Other potential leadership contenders who have been given posts in which they might dis- play their talents include lain Macleod, who will lead the party's opposition to any government attempt to renationalize the steel industry. Ma.cleod's ability as one of the party's sharpest debaters apparently offset the resentment caused by his refusal to serve under Doug- las-Home while the party was in office. US continues to press for MLF De Gaulle, who now more than ever regards the proposal, as a "smoking bomb" in his hand, will take some counteraction having serious disruptive effe within the alliance. Enoch Powell, the other rebel against Douglas-Home's leadership, also has been taken back into the fold as spokesman on transportation. His brief includes trucking, another area which Labor has promised to na- tionalize. R.A. Butler no longer is discussed as a candidate for the leadership. There has been some speculation that Butler remains as foreign affairs spokes- man only because he declined to be "kicked upstairs" to the House of Lords. Most Conservatives feel the party needs a new leader before the next elections, which might come within eight- een months. Douglas-Home's assignment of younger "modern- izers" to important posts prob- ably is a. first step in the se- lection and develo ment of a successor. SECRET CURRENT INTELLIGENCE WE]!CLY SUMMARY Page 13 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 SECRET ITALY'S NATIONAL MUNICIPAL ELECTIONS The 22-23 November nation- wide municipal elections will be widely viewed as a plebiscite on the center-left government's performance to date. The Socialists (PSI) are expected to be the only major party to register heavy losses. The major difficulty for the PSI is that the two successive Moro governments in which they have participated failed to make any significant progress on the coalition's reform program. Although the government has gained some credit for its suc- cess in arresting the increase in inflation, this seems unlikely to prevent PSI losses since the party's working-class following fears that the stabilization program will cause increased unemployment. In recent weeks, the PI has drawn some comfort from the prospect of exploiting the re- percussions of Khrushchev's ouster in the Italian Communist Party (PCI). It is doubtful, however, that this issue witl adversely affect the PCI, which is expected to re ister ele=:- toral sins. WEST GERMANY MOVES TO PLACATE ISRAEL The West German Government is attempting to deal with long- standing Israeli complaints about the employment of West Ger- man missile scientists and tech- nicians by the UAR. Bonn has felt that a law barring such ac- tivity would be unconstitutional, but it is taking other steps to satisfy Israel. Bonn has also publicly revealed that it is co- operating with Israel in the nu- clear field and giving Israel military aid. A few of the estimated 75- 100 German missile men in Eg ecentl left SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Now SECRET Bonn on 26 October confirmed press accounts that "for years" it has had a military assistance agreement with Israel. Expanding on the official admission, the German press stated that West Ger- many has supplied about $50 mil- lion worth of military equipment, trained Israeli military person- nel, and helped establish Israeli arms factories. Bonn has revealed that it is also cooperating with Israel in the peaceful uses of atomic energy. According to the West The Nordic Foreign Ministers meeting in Reykjavik on 27-28 Oc- tober dealt primarily with UN matters. The ministers agreed that the UN peacekeeping operations in Cyprus would be necessary af- ter the present 31 January dead- line, and that the need for the Nordic contingents there will continue for several more months at least. They also supported enlarging the Security Council and the Economic and Social Coun- cil. Iceland will ratify this measure next week; Norway, Den- mark,and Sweden by the end of the year, and Finland early in]965. On the Article 19 question, the ministers agreed unanimously German Scientific Research Minis- try, $1.6 million is being ex- pended during 1963-64. Research is being undertaken at the Weiz- mann Institute in Israel, where two top German nuclear physicists are currently on "temporary duty." In publicizing these activi- ties, Bonn risks endangering its relations with the Arab states. For the sake of clearing the air with Israel, however, it evi- dently has decided to run this risk. Bonn still appears far re- moved from formal recognition of the Israeli Government, a move which could result in UAR rec- oenition of East Germanv_ on the legal validity of the US position, but expressed the hope that the time gained bS the postponement of the Gen- eral Assembly opening, which is supported by the Nordic coun- tries, will be used to find an acceptable solution. The Swedes and Norwegians were especially insistent that this is basically a political question, and that the major powers are responsi- ble for finding a solution. A Finnish Foreign Ministry official however, stated that the Danes and Norwegians will almost cer- tainly vote with the US in the event of a confrontation. SECRET 6 Nov 64 CURRENT INTELLIGENCE WEEKLY SUMMARY Page 15 Approved For Release 2007/10/26: CIA-RDP79-00927A004600120001-0 Approved For Release 2007/10/26: CIA-RDP79-00927AO04600120001-0 I%W i ~4w' SECRET AI % The military leaders who over- threw President Paz Estenssoro on 4 November have not yet formed a government although radiobroadcasts continually refer to a military junta. General Alfredo Ovando Candia, the commander in chief of the Bolivian armed forces, suppos- edly heads the "junta." General Hugo Suarez Guzman, the commanding general of the army, has announced that he will be a member of the junta, but his status is unclear. Vice President Barrientos, the key figure in the ouster of Paz, was scheduled to confer with Ovando on 5 November regarding the form of government to be established The military revolt was trig- gered by the mutiny of a portion of the Ingavi Regiment, a security de- tachment of the Army General Staff, in La Paz on the morning of 3 Novem- ber. Both Ovando and Suarez were held briefly by the mutineers. It is unclear whether Barrientos was directly connected with the La Paz uprising; he claims he had nothing ?Qi - Paz Estenssoro Gen. Barrientos to do with it. Nevertheless, he an- nounced his support of the rebels. Other military units, most opposi- tion political parties, and the min- ers joined the rebellion as the day progressed. Paz resigned on 4 No- vember when it became evident that a civil war would ensue if he at- tempted to remain in power. He left for Lima, Peru. The absence of any effective government, with resultant v.olence and chaos, provides an opporunity for Communists and other extremist elements to exert their influence in the formation of a new government. Extreme leftist Juan Lechin, ex - vice president and head of the Na:ional Leftist Revolutionary Party ;PRIN), has already tried to force his par- ticipation in the junta. He appears to have failed, but his attitude can be expected to influence those who will organize an interim government. Communist inroads can be controlled only if the new government quickly imposes strong military rule. The nation's tin miners, who are under Communist and extr