CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A006200160001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: September 18, 2002
• Sequence Number: 1
• Publication Date: February 7, 1962
• Content Type: REPORT

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TOP SECRET
7 February 1962
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7 February 1962
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
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4. Communist China: Peiping party journal defends regime's
retreat from "leap forward" policies. (Page t i)
5. Argentina. Foreign Minister Carcano says government has
now decided to break relations with Cuba;' says Uruguay also
will break with Havana. (Page it i)
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7. Yogoslavia: Increased ethnic nationalism challenging Bel-
grade's authority said hindering economic and political
programs. (Page tv)
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9, Finland: Communists not likely to participate in.new gov-
ernment. (Page v)
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 CENTRAL INTELLIGENCE BULLETIN
7 February 1962
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Communist China: The existence of continued opposition
within the Chinese Communist party to Peiping's retreat from
"leap forward" policies is implied in an editorial in the most
recent issue of Red Flag, the party's theoretical journal. Con-
demning "separatism" and "neglect of party discipline," the
7 Feb 62 DAILY BRIEF
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editorial justified PeipingPs decision to switch from its extrem-
ist economic programs to its present policy of "adjusting, fill-
ing. out, and raising standards" by quoting Lenin's a roval of
altering programs "a hundred times" if necessary.
A high-level meeting. or politburo session may now be un-
derway; most of the Chinese Communist leaders have recently
been identified as being in :Peiping. The resolution of intra-
party differences would be higb on the agenda of issues to be
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*Argentina Foreign MLnister Carcano stated yesterday even-
ing.that .the Argentine government has now decided to break re-
lations with Cuba. He told US .Charge Hoyt that the move will be
made after other countries have been notified of the decision and
as soon as the UN debate on Cuba's charges against the United
States is finished. Carcano said that Uruguay and Argentina are
working. together on this and will sever relations with Havana
simultaneously, he added that. a special envoy was being sent to
Chile in hope that it might .be possible to get the Chilean govern-
ment to take the same step,
oyt notes that the ability of the Argentine military leaders
short delay if convinced that the move definitely will be ma:
act by 10 February, but may well be willing to go along' with a
to maintain pressure on. President Frondizi is probably still the
key to assuring that Argentina will actually sever relations with
Cuba. Argentine military officials had earlier told the US serv-
ice attaches in Buenos. Aires that they had a secret agreement in
writing with Frondizi that there would be a break with Cuba, and
they made clear their intent to insist that their demands for such
action.be met. They reportedly have been demanding that Frondizi
7. Feb 62 DAILY BRIEF
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ugos vi o n increase of ethnic nationalism in.Yugo?
slavia's six republics is causing policy differences within the
central government and may be hindering the implementation of
Belgrade's economic and political programs. In mid-January,
for example, Macedonian and Slovene members of the parlia-
mentary committee charged with drafting a new constitution
were so vehement on the issue of preserving "states' rights"
that Tito's personal intervention was necessary to effect a com-
25X1 promise. Similar differences over the economic plan for 1962
led in late. December to its open criticism in parliament, with
two Slovene deputies taking the unprecedented action of voting
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7 Feb 62
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Finland: The Communist-front Finnish People's Demo-
cratic League lost 3 of its 50 seats in the 4-5 February par-
liamentary election and will probably again be excluded from
the cabinet. A majority coalition is likely to succeed the pres-
ent minority Agrarian government. However, the. victory of
President Kekkonen's Agrarian party, which gained 7 seats to
become, with 54 seats, the. largest party in the 200-mandate
parliament, is a further endorsement of Kekkonen's foreign
policy that good relations with the USSR are vital for Finland's
survival.
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In mid-January, Kekkonen won an overwhelming victory
for. re-election to a second six-year term as president. Mos-
cow's satisfaction with Kekkonen's re-election, and with the
latest arms negotiations, reduces the likelihood of any imme-
diate. Soviet pressure on Kekkonen to admit the Communists to
7 Feb 62
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Dissension Within the Chinese Communist Party
The Red Flag editorial. is typical of Chinese Communist
commentary over the past month on "intraparty ideological
struggles:' The attacks are directed at "certain comrades"
who did not approve of the cutback to more realistic economic
goals and still want to "accelerate the speed of work:' These
people, the editorial states, are out of touch with the attitudes
of the masses and unable to distinguish what is practical and
what is, impossible.
Although at least two provincial first party secretaries
closely associated with the "leap forward" program have been
discharged or demoted, the regime evidently does not contem-
plate a major purge. A People's Daily article on .10 January
emphasized Mao's dictum "to cure the disease, but save the pa-
tient," It urged severity in criticism but suggested.that ".organiza-
tional disposition" of erring individuals should not be necessary
except. in the most extreme cases. The authorities apparently
feel that left deviationists are not likel to become a serious
danger to the present leadership.
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Regional Independence Grows Markedly in Yugoslavia
Yugoslavia is composed of six republics and two auton-
omous regions containing six distinct nationalities. These
peoples have diverse religious and cultural heritages, com-
pounded by occupation of the north by the Austrians and the
south by the Turks, which left Slovenia and Croatia rela-
tively industrially developed and Macedonia, Montenegro,
and Bosnia-Herzegovina poverty-'stricken. The Tito regime
has attempted to speed the growth of the backward areas,
despite the resentment engendered in the other republics.
The growth of regional independence appears to stem pri-
marily from the program of economic and political decentrali-
zation introduced with Western financial assistance. early last
year, and from the disappointing economic results. achieved
under this new program. Aathough the regime intended decen-
tralization .to spark local initiative and considers debate of eco-
nomic issues healthy, it may feel that the regimes. of various
republics have: exceeded acceptable limits and fear. that dissent
may spill over into purely political questions.
Economic nationalism has become particularly evident in
Slovenia, which in recent months has established its own air
and shipping lines, apparently primarily for. prestige reasons.
Breaking with past practice and other. republics, the Slovene
parliament last month decided to enact a "resolution of direc-
tion" rather. than an economic plan for 1962. This "resolution"
will only outline broadly the aims and problems of the republic,
such as productivity, industrial production, and exports.
The other. republics are apparently also experiencing strong,
though less obvious, surges of nationalism. The heads. of both
the Croatian and. Bosnia-Herzegovinan parties are. known to be-
lieve that the 1962 plan is unrealistic and excessive.
In the generally permissive atmosphere, open disagreement
with official proposals has also been noted for reasons other than
regional interests. The Yugoslav trade unions have, for example,
7 Feb 62 CENTRAL INTELLIGENCE BULLETIN
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announced their opposition to a proposal for public financial
participation. in the public health plan. The rubber-stamp
Yugoslav parliament in late December rejected draft amend-
ments to an existing economic law on.the;grounds that it had
not had time to study them. A group of deputies in the Mon-
tenegrin parliament in early December challenged a plane
redistricting courts. and was defeated by only six votes.
7 Feb 62 CENTRAL INTELLIGENCE BULLETIN Page 5
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 Approved Fo
THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
Military Representative of hhe President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Civil and Defense Mobilization
The Director, National Aeronautics and Space Administration
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Assistant Secretary of Defense (International Security Affairs)
The Assistant Secretary of Defense
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, PaciFic
The Director, Defense Intelligence Agency
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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