RUMANIA ON THE EVE OF ITS FOURTH PARTY CONGRESS

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16 July 1,165 RUMANIA ON THE EVE OF ITS FOURTH PARTY CONGRESS CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE ease 2006/11/06 CIA-RDP79-00927A004900110003-6 GROUP 1 Excluded from automatic Approved Fore ease 2006/11/06: CIA-RDP79-009204900110003-6 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, ' 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- ON OR REVELATION OF WHICH IN ANY MANNER TO AUTHORIZED PERSON IS PROHIBITED BY LAW. DISSEMINATION CONTROLS This document MUST NOT BE RELEASED TO FOREIGN )VERNMENTS, If marked with specific dissemination rrols in accordance with the provisions of DCID 1/7, ocument must be handled within the framework of the limitation so imposed. Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 VftVO SECRET Rumanian nationalism promises to be the driv- ing force behind the activities of party leaders at the fourth Rumanian party congress which convenes in Bucharest on 19 July. Meeting within four months after the death of party first secretary Gheorghe Gheorghiu-Dej, the congress will be under the leader- ship of his successor, Nicolae Ceausescu, and will enunciate programs at least as stridently national- istic as any that would probably have been advanced by Gheorghiu-Dej. Although Moscow has shown its displeasure with Rumania's increasingly indepen- dent policies over the past several years, the congress is expected to strengthen the already firm party control of Ceausescu, to adopt certain Yugoslav party practices, and to advance Rumania's ambitions in the Communist world. Unlike earlier Rumanian party congresses--the last held five years ago--the upcoming fourth congress will serve as a public platform for summing up past achievements and listing the future goals of Rumania's evolutionary course toward national Communism. The accomplishments likely to be stressed include completion of agriculture collectivization in 1962, the regime's successful defiance of the Moscow-directed Council for Mutual Economic Assistance (CEMA) in 1963, the April 1964 declaration of 1u- mania's independent role, pro- gressive "Rumanization" of na- tional minorities, and success- ful completion of most goals of the six-year plan (1960-65) es- tablishing a broad industrial base. The outline of the future course the leadership wishes to take is contained in a series of documents, including new party statutes, an economic plan, and a revised constitution, which it will be the business of the congress to adopt or endorse. All of these papers bear Ceau- sescu's personal stamp and are strongly nationalistic in character. Together, they pro- vide for the further evolution of Rumanian national Communism. Their adoption by the congress at a time of heightened fric- tion with the Soviet Union over Warsaw Pact matters will be hailed in Rumania as the begin- ning of a new era. The Party Statutes Prepared by the 31 May - 2 June central committee plenum, the draft party statutes empha- size Rumanian national interests as distinct from those of the Soviet Union. The preamble un- derscores this by stating that the party "bases all its activity on Marxist-Leninist learning, SECRET Page 1 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 ,*me 11"W SECRET applied creatively to the con- ditions and specific pecularities of our country." The new stat- utes are replete with references to "patriotism" and "love of fatherland," and the nationalis- tic line is pointedly advanced in the section on the armed forces. This section, in con- trast to other East European Com- munist party statutes, specifi- cally charges that Rumania's army is to be educated for "defending revolutionary victories, the nation's borders, independence, national sovereignty, and peace." The draft also includes a number of provisions presently unique to the Yugoslav party, the pio- neer developer of national Commu- nism, One of these, for example, changes the title of the party chief to secretary general, and another eliminates candidate party membership. The statutes also call for changing the name of the Ruma- nian Workers' Party to the Ru- manian Communist Party in con- formity with the "present stage of development of our society, the stage of the completion of socialist construction, and to the final aim of the party-- the building of the Communist society." Only two other par- ties in Eastern Europe have claimed to have reached this stage of development, Czechoslovakia in 1960 and Yugoslavia in 1963. To be consistent with this change the revised draft constitution calls for Rumania to be designated a "Socialist Republic"--rather than a "Peoples Republic" as it now is--upon final approval of the new constitution by the Grand National Assembly in late July. Aside from the possibility of gaining a certain prestige for the Rumanian party in Communist circles, these changes in the name of the party and the state also indicate that the regime is taking pains to make clear it remains Communist. The continuing goal of the party to establish "close bonds with the masses" also is ap- parent in the draft statutes. Thus, party seniority is to be granted to former "revolution- ary" elements such as ex - Social Democrats who now are party members. Included in this concession would be all who participated in strikes during the 1930s as well as a number of moderate leftist elements. With the abolition of the probationary period for member- ships, the party is reflecting its new view of itself as a less militant leader in a more ma- ture society. Unprecedented in Eastern Europe except for Yugo- slavia, this step will ease the admission of young professionals and white-collar workers, partic- ularly from the party's Union of Working Youth. The resulting enlargement of party ranks, while presumably intended to improve and extend political control throughout the country, will probably also bring new ideas and new energies into the party. Consonant with the draft statutes of the party, the draft constitution enunciates an un- swerving independent policy SE CRE T Page 2 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 SECRET course and prepares for further evolution toward achievement of a national Communist society. In contrast to the consti- tution adopted in 1952 which contained glowing tributes to the Soviet Union in its preamble, the new constitution makes no reference to that country. The pervasive independent line of the revised document is rein- forced by language drawn from the April 1964 declaration. Rumanian foreign policy will strive for "relations of friend- ship and fraternal cooperation with socialist states and co- operative relations with coun- tries of other sociopolitical systems" based on "principles of respect for sovereignty and in- dependence, equality of rights and mutual advantage, and non- interference in internal affairs. As a hedge against the auto- maticity clauses in existing mili- tary alliances, including the Warsaw Pact, the draft spells out the conditions under which the Grand National Assembly can declare war. The new constitu- tion states that "war can be de- clared only in case of armed ag- gression against the Socialist Republic of Rumania (SRR) or against another state toward which the SRR has mutual defense obligations assumed in interna- tional treaties, if the situation has developed for which an obli- gation of war is established." The draft constitution clearly is designed to rally popular support behind the gov- ernment,stressing as it does the "democratic" privileges of na- tionalities and intellectuals. The effectiveness of such an ef- fort may be limited, however, because the constitution also indicates that assimilation of the minority groups will con- tinue. The draft also emphasizes collective work in the govern- ment and moderately strengthens the role of the State Council by granting it stand-by powers to act when the Grand National As- sembly is unable to meet. The State of the Party The stability and strength of the Rumanian party leader- ship now and during the past decade have stemmed from its unusual unity. The present group comprises 19 individuals, most of whom have been members of either the secretariat or the politburo since 1957. The smoothness of succession following the death last March of long-time party boss, Gheor- ghiu-Dej, was a good illustration of the party leadership's homo- geneity. At that time, the key party posts were quickly filled, apparently without con- sultation with Moscow. Besides Ceausescu, the top leadership includes three other politburo members, Premier Ion Gheorghe Maurer, head of state Chivu Stoica, and Gheorghe Apostol. During the preparations for the congress, this group has con- tinued to depict itself as "col- lective." As they did during the period of succession to Gheorghiu- Dej, these four men, like most of SECRET Page 3 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 Approved For Release 20WGRE( A-RDP79-00927AO04900110003-6 NNW Imp, COMPOSITION OF RUMANIAN POLITBURO & SECRETARIAT 3rd Party Congress,June 1960 GHEORGHIU-DEJ, G. CEAUSESCU, N. MAURER, 1. G. APOSTOL, G. STOICA, C. BODNARAS, E. BORILA, P. DRAGHICI, A. MOGHIOROS, A. GHEORGHIU-DEJ, G. (1) CEAUSESCU, N. MAURER, 1. G. APOSTOL, G. STOICA, C. BODNARAS, E. BORILA, P. DRAGHICI, A. MOGHIOROS, A. BIRLADEANU, A. (3) COLIU, D. RAUTU, L. 16 July 1965 STOICA, C. BODNARAS, E. BORILA, P. DRAGHICI, A. MOGHIOROS, A. STOICA, C. RAUTU, L. (6) NICULESCU-MI ZI L, (1) Died on 19 March 1965 (2) Promoted to full politburo member in late March 1965 (3) Elected to candidate membership in November 1962 (4) Dropped from membership in March 1961 (5) Elected to membership in March 1961 (6) Elected to membership in March 1965 SECRET Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 ik~ NOW SECRET UMANIA'S FOUR PIVOTAL LEADERS CEAUSESCU MAURER STOICA APOSTOL the party hierarchy in the weeks preceding the congress, have ad- dressed the customary meetings of the Bucharest city committee, the regional party meetings, and con- ferences of mass organizations. In addition, Ceausescu, Stoica, and Maurer also have jointly spoken for the first time before special sessions of high-ranking officials from the ministries of the armed forces and of internal affairs. While the intention has been to gain backing and allegiance, es- pecially of the latter two groups, these joint appearances have under- lined the collective character of the leadership. The joint appear- ances may also have served to dis- abuse those who might hope for dif- ferences in the hierarchy on de- fense and security policies. However, it seems inevitable in most collective leaderships that one man rises to a position of "first among equals," and in- formed observers believe that Ceausescu is just such a man. Moreover, despite the outward ap- pearances of unity, it will not be surprising to find other leaders jockeying for relative increases in power as the party congress approaches. Ceausescu is apparently at- tempting to consolidate and fortify his own position inside as well as outside the party by placing men he trusts in responsi- ble positions. Within the party, he reportedly intends to diminish the role of the politburo and in- crease the authority of the sec- retariat, which he heads. The deft hand of Ceausescu seems evident in the treatment given party leadership in the revised statutes. These enun- ciate the principle of collec- tive leadership. A new provision specifies, however, that a "party SE CRE T Page 5 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 SECRET member may hold only a single post of political leadership that demands permanent activity, whether in party or state or- gans." Ceausescu could apply this provision to relieve Presi- dent Stoica of his position as a central committee secretary and thus add to his own relative influence within the collective leadership. Ceausescu may also try to reduce the power of internal af- fairs minister and politburo mem- ber Alexandru Draghici who could pose a threat to his pre-eminent position. Aware of the chal- lenge Draghici represents through his control of the Minis- try of Internal Affairs and his considerable influence in the army, Ceausescu may plan to re- move him from the ministerial post at the coming congress. Cornel Onescu, whom Ceausescu recently appointed deputy inter- nal affairs minister, is rumored to be Draghici's replacement. Commentary in the party press suggests that the party positions of still other members of the hierarchy may also be af- fected at the coming congress. Alexandru Moghioros and Petre Borila, each of whom is known to be seriously ill, may not be re-elected to the politburo. Moghioros and Borila are the only two members of the party hierarchy who have not addressed any of the precongress meetings. Stefan Voitec, a candidate polit- buro member and Ceausescu sup- porter, may replace Moghioros. There is no information avail- able on Borila's possible suc- cessor. Apostol and Maurer may also be overshadowed by Ceau- sescu's influence at the congress. Their background and political style do not seem compatible with those of the increasingly asser- tive party first secretary. Domestic Policy Changes The fourth party congress will endorse Rumania's gradual move away from Soviet influence in the past year or so, the ex- pansion of cultural and other contacts with the West, and the accompanying modest slackening of internal discipline over the populace. Like its counterparts in Hungary and Poland, the Ru- manian leadership has become in- creasingly convinced of the wisdom and necessity of winning at least the grudging cooperation of the population in order to assure at- tainment of the regime's ambi- tious foreign and domestic plans. In its drive for acceptance, the regime has imitated some of the devices used by the Hungarians and the Poles. Wherever pos- sible, it has substituted persua- sion for coercion--a practice to which the coming congress is ex- pected to give added impetus. Perhaps the most obvious area of internal liberalization is the cultural sector. Initiated in mid-1963 and consisting of three broad stages--de-Russifica- tion, glorification of Rumania's national cultural heritage, and re-establishment of Rumania's cultural ties with Western Europe --this liberalization policy con- tinues in force, subject to close control and scrutiny by pol- icy-making bodies in the govern- ment. SECRET Page 6 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 `.r _ftwr SECRET Ever conscious of their nationality and proud of the Latin origin of their language, Rumania's leaders chose the Maxim Gorky Institute in Bucha- rest as one of the first im- portant targets of de-Russifi- cation. Closed down in Septem- ber 1963, the institute, which specialized in providing Rus- sian-language training, became part of the Slavic Languages and Literature Department at the University of Bucharest. A number of other steps also have been taken since the lat- ter half of 1963 which have had the net effect of removing the USSR and the Russian language from any special position in Rumanian life. The activities of a Soviet reading room in the center of Bucharest have been discontinued; obtrusive Russian names recalling the first flush of postwar "friendship" have vanished from the fronts of movie houses and theaters and have been replaced by their orig- inal nonpolitical names; and streets named after Soviet party figures, military leaders, and scientists have been renamed. Implemented without any formal declaration of policy by the leadership, these changes serve as surface indicators of pos- sibly more basic changes to come in Rumanian policy. The regime also has given greater attention to Rumania's national cultural heritage-- particularly in the literary sec- tor--by the frequent recalling of the names of famous Rumanian authors and composers from the past. Paralleling this has been the almost frenetic movement to re-establish contact with West- ern literature. At a recent meet- ing between party. leaders and representatives of cultural life, party first secretary Ceausescu gave additional impetus to the gradual cultural thaw by calling for diversity and individualism in literary style and by empha- sizing the value of direct con- tacts with writers and artists from all countries. He added a cautionary word, however, by citing the need to analyze ar- tistic and literary works from a Marxist-Leninist--and by im- plication a Rumanian nationalist --standpoint. As a result of cultural liberalization, Rumania has in the past year endorsed such pre- viously taboo authors as Kafka, permitted displays of abstract art by Rumanian artists, and allowed more frequent performances of modern Western music. In ad- dition, de-Russification and at- tention to national traditions have brought about the partial re- habilitation of several leading bourgeois scholars of the inter- war period. While relaxation of regime controls over the cultural sec- tor is probably designed to satisfy the ever-increasing desires of the intellectuals for greater freedom and easier con- tacts with the West, these con- cessions also advance the re- gime's campaign to broaden its base of support. This care- ful liberalization of cultural policy may eventually lead to a relaxation in domestic policy of benefit to the general popu- lace. SECRET Page 7 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927} 004900110003-6 ~ftw %W SECRET INDEXES OF RUMANIA'S ECONOMIC DEVELOPMENT, 1959-70 Plan Five Year Plan (1966-1970) ? The planned growth of investment and of gross agricultural production during 1966-1970 is estimated, as is the planned growth of agricultural production in 1965. Other figures are from Rumanian official sources. SECRET Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 %0 %400 SECRET The Economy As Rumania approaches its fourth party congress, its lead- ers have reason for satisfac- tion with the economy's perform- ance. Most of the goals for economic growth during the 1960- 65 plan probably will be met. Since 1959, Rumania has sus- tained one of the highest indus- trial growth rates in the world, 15 percent a year, and has more than doubled both capital in- vestment and foreign trade turn- over. Agriculture, however, re- mains a major cause for concern since output increased little after 1959 and has fallen far short of plan goals. The Rumanian leaders are confident of the soundness of their new economic policy. After many years of subservience to Moscow, they have decided to set their own industrialization goals and to conduct their for- eign trade so as to best serve their national interests. Ac- cordingly, they are willing to cooperate with CEMA only to a limited degree, have greatly ex- panded trade with free world countries, and negotiated sub- stantial medium-term credits from these countries. The economic plan for 1966- 70, to be approved by the con- gress, provides for a continua- tion of the successful policies of the past plan period. Em- phasizing rapid industrial growth and development of a broad industrial base, the plan continues to give priority to the chemical, machine building, metallurgical, and electric power industries. Apparently no signif- icant changes in the still highly centralized system of economic planning and management are con- templated, presumably because of the success of the present system. Rumania is the only Eastern Euro- pean country that has not recog- nized a need for major economic reforms in industry. Rates of planned economic growth during 1966-70 are to be high but not as high as during the past few years. The planned annual rate of growth for na- tional income is 7 percent, com- pared with 9 percent achieved during 1960-64. The rate for industrial production is to be about 11 percent compared with 15 percent during 1960-64. The industrial goals appear generally realistic, since a large number of plants currently under construc- tion will come into production during the next plan period. The difficulties encountered in raising agricultural produc- tion during 1960-64 have led the regime to set for 1966-70 more realistic and lower goals in agriculture than in the previous plan. These call for an increase of only 20 percent in total ag- ricultural output above the 1961- 65 average, to be accomplished largely by expanding programs of mechanization, land improvement, and use of chemical fertilizer. SECRET Page 9 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00Q27,A004900110003-6 ~++ SECRET Sri The expected slowdown in over-all economic growth will not greatly affect the growth of consumption. Real wages of workers are to increase 4 to 4.5 percent a year, almost as fast as in 1960-64, and farmers also are to receive a share of the planned 30-percent increase in total consumption. Compared with the anticipated results of 1961-64, capital investment from state funds will increase 50 percent during 1966-70. Based on the expected level for 1965, the annual rate of growth is only 6-7 percent, less than half the annual rate achieved during the 1960-64 period. The allocation of investment will be similar to that during 1960-65, with in- dustry receiving over half the total and agriculture about 14 percent. According to the plan, for- eign trade turnover is to increase, but at the annual rate of 7 per- cent rather than the 16 percent achieved in 1960-64. Requirements for imported machinery and equip- ment are likely to grow far less than during 1960-64 because of the much slower growth planned for investment. Growth of trade with the free world, which increased 232 percent during 1960-64, is expected to slow down, although the regime will reportedly seek to increase the free world's share to 35-40 percent of total foreign trade during 1966-70, compared with 32 percent at present. Although the Rumanians hope to import $1 billion worth of machinery and equipment from the free world during 1966-70, the main problem will be to expand exports rapidly enough to cover imports. During 1958-64, Ru- mania incurred a cumulative com- modity trade deficit with the free world of $150 million, which was approximately covered by medium-term credits. Al- though free-world countries may be willing to extend additional medium-term credits to Rumania, repayments will soon become-a problem, and Rumania will prob- ably wish to limit its imports in order to keep total indebted- ness at a reasonable level. Foreign Policy The Fourth Congress will lay the basis for continuation of the main lines of Rumania's foreign policy, incorporating the changes that have occurred in this field since the last party congress in June 1960. Taking advantage of the in- creased maneuverability afforded by dissension in the Communist world, Bucharest has conspic- uously broadened its contacts with both the non-CEMA Communist states and the free world, while at the same time largely eliminat- ing its subvervience to the USSR. It has maintained friendly rela- tions with the other Eastern European countries, including Albania and Yugoslavia, and taken some small steps to im- prove its political and cul- tural ties with Communist China. At least indirectly, some of the Eastern European countries have been influenced in their thinking by the suc- cesses of the Rumanian policy. SECRET Page 10 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 Approved For Release 2006/11/06: CIA-RDP79-009 7A004900110003-6 SECRET Bucharest has from the be- ginning supported Moscow in the Sino-Soviet dispute, although this support has become progres- sively less evident. At least since April 1964, when the Ru- manian party issued its so-called declaration of independence and followed up with a flurry of ex- plicitly anti-Soviet speeches, Bucharest has repeatedly demon- strated its disagreement with se- lected aspects of Soviet policy. Most dramatically, it refused to bend to pressures to attend the international Communist meeting held in Moscow last March. The Rumanian position has been to re- frain from participation in in- ternational Communist party meet- ings which might formalize the intra-Communist split and detract from regime efforts to build an image of "neutralism" within the world Communist movement. This position, together with Rumania's emphasis on its historical attachment to Bessara- bia and the regime's de-Russifi- cation campaign, has underscored Bucharest's determination to in- sist upon recognition of its na- tional sovereignty. Rumania may even intend to reduce its Warsaw Pact commitments and ties. This would be a final and most signif- icant step, since the pact is the only formal instrument of control over Rumania remaining in Moscow's hands. Rumania's dissatisfaction with its Warsaw Pact obligations came into sharp focus at last January's pact conference. At that meeting, then party leader Gheorghiu Dej reportedly objected strongly to a proposal for in- creased integration of Rumanian military units under the Warsaw Pact Joint Command--headed by Soviet Marshal Grechko. Al- though an integrated command would have been consistent with Soviet efforts to transform the pact from a device for political control over Eastern Europe into something closer to a true mili- tary alliance, Bucharest had already expressed its strong disapproval of precisely this kind of alliance. Grechko then visited Bucha- rest on 24 May and 15 June, sug- gesting that Rumanian-Soviet friction over pact affairs had become more intense. This was also the impression left by party chief Ceausescu when he failed to make any mention of the pact or the USSR in his ad- dress to the mid-June meeting of the Rumanian armed forces party organization. This speech was delivered in the interval between Grechko's two visits. Rumanian Armed Forces Min- ister Salajan is technically one of Grechko's deputies within the Warsaw Pact Joint Command. Recurring examples of lack of coordination between them, how- ever, indicate a breakdown of communications which detract from pact capabilities. More- over, the Rumanian regime has exhibited little interest in im- proving its lackluster air and air defense forces--from the standpoint of equipment and per- formance the poorest of any in the pact. It also had reduced the basic conscript term from 24 months to 16 months--the shortest of any Communist country --almost certainly over Moscow's objections. During the last SECRET Page 11 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 Approved For Release 2006/11/06: CIA-RDP79-0092004900110003-6 SECRET three years, however, the re- gime has modestly improved its ground forces, particularly through, the acquisition of tac- tical surface-to-surface mis- siles (FROG and Scud). Rumania's efforts to ex- pand relations with the non- Communist world, especially Western Europe, also reflect its quest for increased independ- ence. The level of diplomatic representation has been raised with a number of Western Euro- pean countries, including Aus- tria, Belgium, France, and Great Britain. Bucharest has entered into a variety of technical, scientific, and cultural accords with individual Western coun- tries. These accords have been supplemented by increased ex- changes of visits by governmen- tal, parliamentary, technical- scientific, and academic delega- tions, as well as artistic groups. Rumanian-US relations also have improved considerably since 1960. Agreements have been con- cluded for the settlement of claims of US nationals arising out of war damages, nationaliza- tion of American property, and commercial and financial debts. Since the Rumanian party's dec- laration of independence in April 1964, diplomatic represen- tation between the two countries has been raised to ambassadorial level and negotiation for eco- nomic, cultural, and political exchanges have, increased. US-Rumanian relations pres- ently are under some strain. Difficulties in negotiations with US suppliers for key indus- trial installations have dis- turbed regime officials. However, Bucharest has hewed to a reason- ably restrained line on Vietnam, probably because of its desire for closer US ties, the economic aspects of which could be of great importance in the regime's drive for independence. Despite such restraint, the foreign policy report at the coming party con- gress will be critical of certain US policies, particularly those involving Vietnam. The Uncertain Outlook With the April 1964 declara- tion, Rumania's leaders estab- lished policy lines from which it would be difficult--if not dis- astrous--to turn, and about which they cannot procrastinate. What the leadership appears to want is a degree of independence from the USSR approximating that en- joyed by the Yugoslavs. The up- coming congress will undoubtedly establish the basis for arriving at this goal. To achieve it will require continued successful resistance to Soviet pressures, adroit han- dlingof the country's expanding relations with the free world, continued economic growth, and the loyalty of the party, police, and army to Ceausescu. (SECRET NO FOREIGN DISSEM) SECRET Page 12 SPECIAL REPORT 16 July 65 Approved For Release 2006/11/06: CIA-RDP79-00927A004900110003-6 Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6 V4.0 SECRET SECRET Approved For Release 2006/11/06: CIA-RDP79-00927AO04900110003-6