WHY U.S. IS LOSING THE COLD WAR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003100100006-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 14, 2016
• Document Release Date: May 5, 2003
• Sequence Number: 6
• Publication Date: November 2, 1951
• Content Type: MAGAZINE

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U. S. News & World Report
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WHY U. S. IS LOSING
THE 'COLD WAR'
Governor Dewey, After Far Eastern Trip, Says Russia
Outspends and Outsmarts This Country on Propaganda
Bullets and armed might are not the
only forces in this world-wide conflict.
We are also engaged in a death struggle
of ideas, and ideas can be more important
than bullets in the grand decision.
In Hong Kong last summer I was told
a story I did not fully believe, but it is
one of the most important stories I have
ever heard. An American who has spent
many years in the Far East said that the
Russian budget has equal appropriations
for the armed forces, for propaganda and
for revolutionary activity in other coun-
tries. He firmly believed that to be true.
Some others that I know believe it is true.
Nobody can analyze the Russian budget
so, of course, nobody knows for sure.
But we do know one thing-there is
enough truth in the story to make it clear
why America is taking such a terrible beat-
ing all over the world on the propaganda
front. I do not believe we have to take this
beating. I refuse to admit that Commu-
nists are smarter than we are at anything
if we will only apply our brains to a job.
If the story about the Russian budget is true, and it is
certainly partly true, how does the American budget com-
pare with it?
We have a 58-billion-dollar defense budget. We are spend-
ing thousands of millions in assisting the free nations to
defend themselves. The Marshall Plan has worked and is
working in country after country. There has been a general
stiffening of the backbone of the free world.
Yet we spend practically nothing to win the world to our
side in the field of propaganda. We move in with our physi-
cal strength, with our economic assistance, but we pay little
attention to the spiritual strength of our allies. So the Rus-
sians, posing as liberators, have extended and consolidated
their position to the point where the Kremlin now controls
over 800 million people, or one third of the world, and they
have done it without shedding the blood of a single Russian
soldier in the last six years.
Now I am not asking that we increase our propaganda
appropriation to 58 billion dollars. That would be ridiculous.
I am not asking that we increase it to even 1 billion. I want
to start using our brains. What I want is to see America start
winning back the minds and hearts of people all over this
world who have been successfully lied to by the Kremlin
propaganda machine. First of all, we have got to put a lot
of old ideas behind us.
In the past, where our information services were not ac-
tually, in the hands of left-wingers who tried to stab us in
the back, they were in the hands of sin-
cere bunglers who tried to sell America
as a commodity and not as an ideal, They
presented an America which was a glit-
tering picture of how wealthy and com-
fortable life could be under freedom and
democracy. They boasted that we had
more automobiles than all the rest of the
world put together, more telephones,
more radios, more electric toasters and
more electric dishwashing machines.
They told the simple facts of how
.every American had shoes and how the
standard of living on public relief was far
higher than the average standard of living
of others who work for a living in the rest
of the world-as it surely is. They painted
pictures of average American homes with
two-car garages, gas stoves, refrigerators
and even green tile bathrooms.
Now what was the effect of this in
Asia? The average Asian never saw a gas
stove. He doesn't have enough dishes even
to want a washing machine. He never
hopes to have a telephone. He and 12 or
14 members of his family live in four or five small rooms. He
never saw a bathroom, particularly a green tile bathroom.
The average Asian knows he will never own an auto-
mobile. He hopes most earnestly that tomorrow he will have
enough rice and fish to feed himself and his family. That is
almost the limit of his personal ambition because his struggle
is to stay alive.
So what has been the effect of our propaganda on our
Asian friends? It played directly into the hands of the Com-
munists. They would have paid us to spread it and they
were delighted to help spread it for us. They told the Asians:
"Look how rich America is. See how all the people
have shoes and clothes and coats and automobiles and
telephones and paved highways and hospitals and radios
and even a new, expensive thing known as television."
Then the Communists added the crusher:
"You see, everything we have told you about America
is true. They exploit the rest of the world and rob Asia
for their own comforts. They are rich and you are poor.
Down with the Americans."
With the aid of our own propaganda the Russians suc-
ceeded in making us hated by millions of people who have
always liked and admired us. We have played the Russian
game for them. I propose that we stop it and never again do
it so long as we live.
After all, hate is the easiest emotion to arouse. And the
Communists deal in simple terms. In many hours of conver-
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sations in many countries of the Pacific this summer I sought
the answer to this problem. How can we combat this simple,
evil propaganda of greed, envy and hate?
How can we convince them that only in the free world
can their living standard rise-that killing Americans, or
British or French-or their own landowners and merchants
will not create any more wealth for anyone?
Most of all, how can we convince them that we Americans
do not want one acre of their ground or one single slave in all
the world? How can we convince them that all we want is to
have a free and peaceful world in which we can all exchange
goods and services to the advancement of mankind?
The best answer I received in all the Pacific countries
was from a wise Chinese on Formosa. He has spent his life
first as a teacher, then as a soldier, now as an important gov-
ernment official. He pointed out that for centuries the white
men of Europe have occupied Asian territory and they have
often exploited the Asian people. This was easy to do be-
cause the Europeans had superior weapons and a few could
conquer many. But, he points out, the day is gone when a
gunboat can be sent up a river and thousands of native
Asians will peacefully surrender.
Today the Asian insists on running his own country but
he is still an easy prey for demagoguery and falsehood. The
Communists know the masses of Asia have admired America
in years past, so the Reds spend most of their time painting
America as the source of all evil.
"But," my Chinese friend pointed out, "what has been
Russia's strength can become Russia's weakness. Every Com-
munist movement in Asia has Russian masters. The people
are beginning to see it. America's great opportunity," he
said, "is to point out to Asia in words of one syllable that
the Russians are taking them over, and hammer it home day
after day after day."
"The way to appeal to the hearts of the people of Asia,"
he continued, "is for America to champion Asia for the
Asians-not for the Russians. Korea for the Koreans-not for
the Russians. China for the Chinese-not for the Russians.
Japan for the Japanese-not for the Russians. Indo-China for
the Indo-Chinese-not for the Russians. Indonesia for the
Indonesians-not for the Russians."
Here is the greatest, simplest opportunity we have ever
had. People can understand it. And it is true.
Today, Soviet Russia is the only European empire or
U. S. ARMS AID: "Ideas can be more important than
bullets in the grand decision"
STALIN POSTER: "America is taking a terrible beating
all over the world on the propaganda front"
Asian empire which is seizing and running Asian lands and
imposing imperialistic, unequal treaties upon their helpless
Asian satellites.
The Chinese can understand it. It is said there are 200;000
Russians running the government of Mao Tse-tung in China
today. Others calculate the figure to be higher. No one knows
the exact number. The Russians are smart. They stay in
their compounds and do not show themselves on the streets
much. But with such an enormous number, and most of them
young, they appear increasingly. Moreover, they drink too
much. The people are slowly becoming unpleasantly con-
scious of the Soviet occupation.
You don't have to draw any pictures for the Japanese.
The Russian threat has hung over their islands all their lives
and they understand the danger very clearly.
But the people of the critical areas of Southeast Asia have
no knowledge of the Russians. They do not know what it
is to live under the heel of Moscow. Their most skillful native
Communist revolutionaries are Moscow-trained, but the
people don't know it.
I propose that our country start telling them the ugly
truths and stick to that and little else. We believe in "Asia
for the Asians-not for the Russians.",Let's start saying it and
proving it and let's start winning back the friends we have
lost for the cause of freedom.
I have another basic proposal to make concerning our re-
lations to other nations of the Pacific. It involves not only our
propaganda but the highest Government policy. It is this:
We must stop trying to make the rest of the world over into
our own image. Nothing has made us so many enemies and
nothing ever will. Nothing has cost us more dearly than the
proud but childish assumption by our people and by our
Government that the rest of the world must copy us.
To be perfectly blunt about it, the peoples of Asia do not
want to copy us. Moreover, they cannot be made over into
our likeness and it is time we stopped trying it. j
If we are going to have any friends left in the `Pacific it is
time we began recognizing that they have a totally different
background from ours. It is time we began recognizing that
they intend to keep on having that background. They like
their culture. They like their music, which is utterly alien
to our ears. They like their family tradition. They like it
even as we in America love. every tradition of our own and
every one of our precious liberties. They want a govern-
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ment of their own people-good or bad-and not one run by
or for any other country.
It was very interesting to me that in eating the food of
many countries I visited this summer, most of it had the most
curious appearance, often appearing to be quite inedible.
Yet I found that I liked almost all of it very much. The only
really bad food I had in two months was at a place where
they tried to imitate American food in our honor. And be-
lieve me it was awful.
I think the same thing is true of all Asia. When they are
themselves, in their own best tradition, they are superb.
When we expect them to try to imitate us, we are digging
our grave. It just won't work and we'd better stop it.
The cultures of Asia are very old. While many of our an-
cestors were still primitive, many of the peoples of Asia were
enjoying their third thousand years of cultured literary and
SOVIET TROOPS: "They have done it without shedding
the blood of a single Russian soldier"
artistic tradition. We in the West made immense progress
in a few centuries and have now passed all the world in
both technical and material achievement. But we can't
make people like us just because of that.
The greatest mistake we have made in the past is to ex-
pect nations whom we hope will be our friends to pattern
their systems of government, of justice, of education, and of
social relations after ours.
"If you don't mind," they say, "we like our own system
very much. If we can't be your friend under our system,
then we're sorry, we shall have to forego the pleasure."
When I consider how deeply we Americans have resented
past European criticism of our own manners and institutions,
I can't say that I blame the Asians in the least for their re-
luctance to accept us as their model.
The truth is, of course, that there is deep beauty and rich-
ness in Asian culture. We have much to give to each other.
But we will never give each other anything unless we start
off with a genuine respect for the culture and the traditions
of those we expect to be our allies.
Nothing is more infuriating to them than the smart-Alex
news reports that are filed from so many Asian countries
criticizing their form of government or poking fun at their
leaders, their habits and their customs. It takes the patience
of a Buddha to submit peacefully to the abuses and the
falsehoods wh'ch have been heaped not only by individuals
but even by our own Government upon the leadership of
many Asian countries which are our friends. Some of them
are our friends even to the point at this moment of fighting
and dying on our side.
Surely their customs are different and surely their govern-
ments are not the best of all governments in the best of all pos-
sible worlds. But with complete impartiality I venture the sug-
gestion that there is nobody within the sound of my voice who
is willing to suggest that we in America have the most honest,
the most competent, and the best of all possible governments.
In 10 short years Communism has increased its sway from
180 million people of Russia to 800 million people. It does
not intend to leave a single spot of light, a single area of
freedom on all this earth. There is no use denying the fact that
whatever temporary retreats or changes of policy they may an-
nounce, the Soviet Union intends to wipe us out and the rest
of the free world with us.
In the face of this menace and unending challenge we
need every friend we can get. We need them whether they
are black, brown, yellow or white. We need them whether
they are Christian, Moslem, Buddhist or Confucian. We
need them as equals, as friends and allies.
The only possible way we can save our civilization is to
win World War III without fighting it because an atomic
world war would destroy everything. The only possible way
we can win World War III without fighting it is to have
overwhelming strength and overwhelming numbers.
There are 270 million free people in the Pacific today,
almost the same number as there are in Western Europe.
Added to the population of North and South America and
Western Europe we would total 870 million strong. That is
more than Stalin's 800 million. For the first time the free
world would have not only superiority of industrial power
and resources but also more people.
This is one reason I have advocated a total Pacific Alliance
similar to the North Atlantic Alliance. But if we are to get ,
a Pacific Treaty, we must deal as equals with proud peo-
ple of the Asian nations. We must respect them. We must
stop the condescending attitude that America knows better
than they do how their own affairs should be run. If we will
use the brains God gave us, we will treat others as we would
like to have them treat us. If we will accept them as they are
and help them develop their own traditional talents and
skills, we have a right to hope that they will respect us as
we are and be glad to join us in equal partnership for the
protection of the free world.
In this period when world leadership has been thrust
upon us, we must grow rapidly to an intellectual maturity.
We must develop a wisdom and patience in dealing with
others that we have never known. To preserve our very exist-
ence, we must do it fast.
With new-found respect for our friends and allies and
with a high degree of competence in our relations with them,
I am confident we can win through this dreadful period of
trial without total war.
Let us dedicate ourselves to a better understanding of
the free peoples of the world. Let us unite in a mighty com-
pany in the common defense of our liberties. Let us be so
strong and so numerous we can win the peace without war.
(From an address by Governor Thomas E. Dewey of
New York at Hartford, Conn., Oct. 16, 1951.)
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VOLUME XXXI-No. 18 U.S. News & World Report WASHINGTON, D. C.
WORLD WAR III1
RUSSIAN STYLE,
IS HERE
New Strategy Conquers 600 Million People, Rolls On
World War Ill, Russian style, is being lost by
U. S., won by Russia, hands down.
Conquests to date are among history's
greatest-600 million people in five years.
Fifth column, revolution, assassination,
propaganda, purges, satellite wars are Rus-
sia's weapons in the world's new World War.
Atom bombs may never be used.
U. S., preparing for imaginary war of the
future that Russia will not start, is losing real
war Russia now fights in her own way.
World War III is here. It has been here
for five years. In the real war to date, Rus-
sia, definitely, is winning, U. S. losing.
. U. S., arming, is getting set for an
imaginary war of the kind Russia will
avoid at almost any cost. Russia is ac-
tively waging war of the kind that pays
returns, war fought in the name of
peace for conquests that enrich a con-
queror.
War that U. S. prepares for would
blow up much of the world, if started.
Nobody wins, all lose, that war. War, as
Russia is waging it, aims at conquest of
earning assets, not of bomb-blasted rub-
ble. Russian strategy is that of a modern
imperialism.
War, Russian style, is proving highly
profitable to Russia.
In Eastern Europe, at no cost in Rus-
sian life, modern war has yielded Russia
the second largest industrial complex in
all Europe.
In Asia, without cost in Russian lives,
World War III has brought China, with
its man power and industrial potential,
into the Communist empire.
Poland, Rumania, Bulgaria, Czechoslovakia,
Hungary are gone. China is, too.
India is wobbly. So are Indo-China,, Burma,
Malaya, Indonesia. Iran totters. So do Egypt,
Jordan, Iraq and Morocco.
In U. S., Britain, France, Italy, elsewhere,
fifth columns are at work, trouble is exploited.
Russia, winning, knows where she's headed.
U. S., losing, seems bewildered, punch-drunk,
moving toward eventual inflationary crack-up.
World War III may be lost by default:
All but the fringes of the great Eura-
sian land mass today are within that em-
pire. Through Southeast Asia, in the
Middle East, even in Western Europe,
those fringes are being prepared for
eventual conquest. In the Western
Hemisphere, advance units of Commu-
nism are busy scouting the ground, pre-
paring for the day, maybe distant, when
war, as Russia's strategists conceive it,
can be carried forward successfully.
War preparation, U. S. style, aimed at
some imaginary war that Russia will not
fight unless attacked, is geared to yield
disaster for all.
If this imaginary war of the future is
fought, it promises to blow up everybody
and everything. Its conception is that
of horror and obliteration. Its aim, as
officially outlined, is to leave the world
a shambles that nobody but a Com-
munist would want to try to run.
If the U. S.-style war is not fought,
there is the prospect of. economic dis-
aster when preparation for that imagi-
nary war slows. Communists plan to be
around to pick up the pieces.
Either way it goes, so far as anyone
can learn from this country's planners,
the end product of American planning
is something like chaos.
Strategists for U. S. are only now
starting to fathom World War III as Rus-
sia actually is waging it, for profit.
Ideas, they discover, are a major Rus-
sian weapon. Propaganda commands as
much, or more, thought and effort in
Russia's warmaking as does armament.
Peace, as an idea, is paying off through
preparation of the ground for conquest
more handsomely than scores of divi-
sions of troops could do. Fifth columns
are on hand to exploit trouble, to grab
power where opportunity offers. Com-
munists grabbed Eastern Europe, with
150 million people and strong industries,
through this method.
Assassination is encouraged as a trou-
ble brewer. A Puerto Rican radical tried
it on President Truman. Assassins can
prepare the ground for revolution, as in
Iran, or Pakistan, or Jordan.
Shooting war itself has its place-
guerrilla war, civil war, international
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SEM
war. China was taken in civil war. Indo-
China is threatened in guerrilla war.
Malaya is, too. Korea is waged as inter-
national war. All are Communist-
planned, Communist-directed wars. None
costs a Russian soldier. Vast conquests
are made without sacrifice of Russian
life, at small cost in Russian resources
and armament.
Using modern weapons, modern tech-
niques, Joseph Stalin, directing World
War III from the kremlin, is making it
pay-in peoples, raw materials, indus-
tries brought into his new empire.
U. S., slow on the uptake, its officials
bewildered by new-style war, is back
on its heels, out of ideas, able to think of
aSW
9.;;1:C 2Criil~u t ~r4,
nothing but armament for the imaginary
war that Communists are determined
not to fight. The one-track strategy of
present American planners calls for get-
ting armed to the teeth.
The catch is that Communist strate-
gists, retaining the initiative after five
years of war, are in a position to call
reverse signals. if danger really seems to
threaten. One bright morning they can
be all sweetness and light, smiling, talk-
ing business, making concessions, agree-
ing to arms cuts. Inflated by vast arma-
ment effort, the bubble in U. S. could
burst, and then there would be more
pieces for Communists to pick up in dif-
ferent parts of the world.
That's as the Communist strategists
plan it-inflation and bust. for U. S. be-
World War III, the real war and not
imaginary war, started in earnest on
March 12, 1.947.
President Truman on that day pro-
claimed the "Truman Doctrine," calling
for U. S. effort to check the expansion
of Communism. Before that day, Stalin
had moved cautiously to expand his em-
pire. He accepted the Truman Doctrine
as a declaration of World War III and
shaped his strategy accordingly.
followed move as the Russians maneu-
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gain. U. S., countering, pushed the Mar-
shall Plan of gifts to friendly nations in
Europe. This plan was supposed to stop
the Communists. Stalin then countered
for Russia by a coup that took Czecho-
slovakia. A Russian general took over in
Poland. Purges went forward in Ru-
mania and Bulgaria to strengthen the
Russian hold. Bids for power were made
in elections in France and Italy. Com-
munists lost, but proved themselves, the
largest single party in each of those
countries-a fifth column of major size
and importance.
U. S. planners, frightened, turned all
attention to Western Europe. Stalin,
who is smart, shifted to Asia.
Communists took China while U. S.
officials looked on, unmoved. A war was
fought by U. S. to save China from
Japan. But U. S. then found China in
Russia's empire four years after the war
supposedly was won. Top officials were
unimpressed, assumed the attitude that
nothing could be done. War flared in
Indo-China, tying down important
French forces, placing an economic drain
on France. Guerrilla war flared in Mala-
ya, tying down important British forces,
placing an economic drain on Britain.
Still unimpressed, with all U. S. offi-
cial attention centered on ways to bol-
ster Western Europe, the hint came that
U. S. interests no longer extended to
Korea. Formosa and Korea apparently
were to be had for the taking. Stalin
moved in June, 1950. Through a puppet
regime in North Korea he acted to stake
his claim to South Korea.
The U. S., resisting, joined Britain
and France, tying important forces down
in Asia, where top American officials
had been determined they never would
be tied down. The drain of World War
III on American resources was in two
directions-toward Western Europe and
toward Korea in Asia. In U. S., feverish
churning started to prepare for an imagi-
nary war of all-out destruction.
Stalin now is moving again to shift
the battlefront and to prepare the ground
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for what he expects to be new victories
in the real, modern-type world war that
he is fighting.
POSTERS IN PRAGUE
Revolt against the West has struck
Iran. Assassination was used in Jordan
and Pakistan to prepare the way for
trouble. Revolution of a sort stirred in
Egypt. Rumblings of trouble began to
be heard in French Morocco. New fronts
were being opened, as 1951 moved to-
ward a close in the fifth year of World
War III. American strategists still had
their eyes glued to Western Europe and
their plans geared to the imaginary war
that Russia would never fight. In the
fifth year of war, .Russia still could wage
war in the name of peace.
The United States, leading industrial
power of the world, at this point ad-
mittedly remains on the defensive, out-
smarted, outmaneuvered at every turn.
Everything is geared to the one-track
idea of a war to blow up the world. As
a few officials outside the central plan-
ning ground see it, U. S. is busy losing
the world in a war its leaders cannot see
or understand.
Victory, to date, is going to a nation
and a system that is highly vulnerable
to counterattack of a modern variety,
waged with modern weapons.
Communist Russia, besting the United
States in World War III, is a weak na-
tion.
Stalin holds power only through con-
trol over secret police and the Army.
Nearly 10 per cent of Russia's popula-
tion is in political prisons, working on a
slave-labor basis. In 30 years, the Rus-
sian people have enjoyed no chance to
blow off steam. Periodic purges elimi-
nated dissenters, leaving bitterness be-
hind. Peasants are turned into day la-
borers, land is nationalized. There is no
single language, no common bond for
discordant nationalities that make up
Russia.
Industry remains primitive, compared
with U. S. Transport is weak, very vul-
nerable. Armed forces, while large, are
of uncertain reliability in war that might
carry them to other parts of the world.
The whole Russian empire is filled with
disgruntled people-held in virtual
slavery-working for a relatively few
privileged Communist rulers who get all
the gravy, held in bondage by secret
police and armed guards.
Counterattack, geared to exploit the
weakness of Russia, is beginning to be
considered by officials in U. S. who rec-
ognize World War III for what it is, but
who are not now in power.
Ideas are seen as the most potent
weapon in U. S. hands. Present propa-
ganda methods of the U. S. Department
FIGHTING IN KOREA psychology as highly unrealistic. An
The technique pays off-in peoples, raw materials, industries appeal to slaves, offering the chance of
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freedom, and sold by Americans who
are trained in putting across mass ap-
peals, might prove explosive. That, at
least, is the view of those who know
how to reach masses of people. What is
needed, in their view, is a positive type
of "crusade" to sell freedom in practical
terms.
Sabotage, too, is.a wide-open field of
operations. With no support from the
West, against hopeless odds, workers in
several countries of the Communist em-
pire already are carrying on effective
sabotage. In Hungary, Czechoslovakia,
Poland, there are slowdowns in industry.
Peasant revolt is reported from many
areas, even from isolated parts of Soviet
Russia herself. There are ways to encour-
age and aid sabotage of Communism.
Fifth-column opportunities appear
to be wide open in many areas. In China
there still is a chance to promote civil
war in some areas. Parts of Eastern Eu-
rope are described as ripe for local re-
volts. Assassination is a two-edged sword
that not only Communists but also local
partisans can use. Dollars have paid off
in more than one instance when dealing
with Communist leaders who love the
good things the West offers. Methods
to stir trouble are many. Yet American
officials, to date, have frowned upon
their use.
Pressure for revolt, obviously, is seeth-
ing in major sections of the new Russian
empire. Living standards are being
ground down. Peasants are losing land.
Purge and threat of purge are develop-
ing desperate men who are not afraid of
chance taking. Those who are advocat-
ing a counterattack against Communism
insist that a tiny fraction of effort and
money going into arms, if devoted to
weapons for revolt, could produce star-
tling results. Russia, with nothing to sell
but slavery, without real strength to chal-
lenge the West; has won control over
600 million people and vast territory by
exploiting dissatisfaction.
The degree of unhappiness and dis-
content within the Russian empire is
pictured as more intense than in any
other part of the world.
A promise to blow up the unhappy
people of the Russian empire is not cal-
culated to encourage them to look hope-
fully to the United States. A chance to
do some revolting on their own, with
the hope of freedom, might get results.
To 'win World War 111, instead of los-
ing it, the United States is to be forced
to turn against Russia's Communists
the weapons that Communist Russia
uses against the West.
As things are going now, U. S., arming
to the teeth, is losing the war. Russia,
without committing troops of her own,
is winning with ideas, propaganda and
revolution.
?
BLOW BY BLOW-Russia Still Gaining
After Five Years of War
Communist coups grabbed most of Eastern Europe by 1947.
Attack on Greece then was made to flank Turkey, control Eastern
Mediterranean.
U.S. countered with the Truman Doctrine. Money, arms, officers went
to Greece.
War was on, as Russia saw it. It was U. S. vs. Russia in March, 1947.
Arms aid started to Turkey. U. S. vowed to "contain" Communism.
Marshall Plan for economic aid to U. S. friends was proposed.
Czechoslovakia fell to Communist coup February, 1948. Czechs
had wanted Marshall Plan aid.
Berlin was blockaded in March, 1948. Aim was to get the West out.
"Air lift" was begun to beat blockade. U. S. won after 14 months.
Communists were jolted by election defeats in Italy in April, 1948,
in France in November, 1948.
Bloody uprisings, Communist directed, broke out in Malaya.
Tito was denounced by Communists for deviation in June, 1948.
Coup in Hungary brought all-Communist Government in May, 1949.
Drives stepped up as Communists shifted strategy to Asia.
China fell to Communist armies. Chiang fled to Formosa in October,
1949.
War in Indo-China flared more actively.
U. S. Navy plane was shot down over the Baltic in April, 1950.
Attack on South Korea was launched in June, 1950. U. N. resisted.
Chinese invasion of Korea followed defeat of North Koreans. Korean
war flared anew.
Defense for Europe, under General Eisenhower, was set up in skel-
eton form April, 1951.
Tibet was conquered by Communist invaders in May, 1951.
Setback in Japan was suffered by Russia when the West signed a
separate treaty.
Uprising in Iran, with Communist backing, forced out British in
October, 1951.
Assassinations foretold more trouble in Jordan and Pakistan.
Norway was threatened by Russia in October, 1951.
Shooting war began in Egypt.
Truce talks in Korea, on and off, brought no results after 125 days.
Communist drives, in five years, gained a vast empire, 600 million
people.
Approved For Release 2003/05/23 : CIA-RDP80R01731 R003100100006-5
15
 THE NEW YORK TIMES, WED
or Release 2003/05/23 : CIA-RDP80R01 0031001000
Iran Is Seen as an Example
Of Too-Late U. S. Planning
State Department . Early Aware of Thorny
Oil Issue, but Hewed to Daily Tasks
By JAMES RESTON
special to THE NEW YORK TIMES.
WASHINGTON, Oct. 30-The
delicate job of trying to find a so-
lution to the Iranian oil crisis has
now been given to two young and
energetic members of the State
Department, Assistant Secretary
of State' George C. McGhee, and
the head of the Department's Pol-
icy Planning Staff, Paul H. Nitze.
Mr. McGhee is an able geologist
and former oil company official
from Texas, a protege of former
Under Secretary of State Will
Clayton and a wealthy former
Rhodes scholar, whose area of re-
sponsibility now covers every
critical point from Morocco to
Pakistan.
Mr. Nitze took over the Policy
Planning Staff from George F.
Kennan a couple of years ago after
a distinguished academic career at
Harvard and an equally successful
career in Wall Street and various
branches of the government.
So far, they have made some
ing that detailed planning by Mr.
Nitze, when his staff recognized
the problem more than a year ago,
would at least have been a more
hopeful enterprise than interven-
tion by Mr. Nitze now.
Mr. Nitze, however, was spend-
ing a good deal of his time then on
short-range problems rather than
on long-range planning, just as he
is spending a great deal of time
now negotiating with Premier Mo-
hammed Mossadegh of Iran, and
just as his deputy, John Ferguson,
is off in Paris working on other
immediate problems.
This is not, of course, Mr. Nitze's
fault. He does what he is told, and
he was assigned to the Iranian ne-
gotiations by Secretary of State
Dean Acheson, who is the man who
has argued with more eloquence
for a State Department ivory
tower than anybody else.
Negotiations Displace Planning
The best critique of the Policy
Planning Staff was prepared under
the direction of Mr. Acheson him-
self. This was just before he be-
came Secretary of State, when he
was a member of the Hoover Com-
mission: in that job, he supervised
the commission's report on the
State Department, which included
the following:
"The Secretary of State should
continue the present high-level
planning activity under a Planning
Adviser, with special emphasis on
freeing him and his staff of cur-
rent problems, upon providing him
with a broad-gauge staff, and upon
utilization by him of competent ad-
vice from inside and outside the
progress, but the general feeling
here is that the United States in-
tervened in the problem too late
and cannot now be expected to find
any compromise that will satisfy
the United States, Britain or Iran.
The arrival of Mr. Nitze in the
current negotiations illustrates at
least one aspect of the problem.
He is head of one of the newest
and most important sections of the
State Department, created several
years ago so that there would be
at least one area in the depart-
ment where men would be free to
concentrate, not on the immediate
problems of the moment, but on
problems that could be seen on, the
contained the nationalistic feelings wee s s ow, l is s Ill.! spen In
States In erven ion w s y' And the point of the criticism
not hopelessly, hampered by being heard here on Iran is not so
events.
Nobody here is prepared to say much that the planning staff was
today that early intervention by negotiating rather than planning
e United States would have over- in the past, but that, as Mr. Nitze's
Iran Case No Surprise Government.
"The present Policy Planning
Iran was such a problem. The Staff has been a valuable aid to
crisis that developed there was not the top command of the State De-
a surprise. When the Soviet Union partment, especially as an 'antic-
resorted to the use of force in Ko- ipator' of problems. At present,
rea almost everybody, including however, its effectiveness appears
Mr. Nitze and his staff, agreed to have been lessened by a ten-
that more trouble was to be ex- dency of the top command to util-
pected elsewhere on the perimeter ize it on day-to-day problems. * * *"
of the Soviet Union, and particu- Far from being removed, this
larly in Iran. criticism is more relevant today
Mr. McGhee discussed the prob- than ever before. Even after
lem with the is h many months Greece, Palestine, Korea and Iran,
before the crisis really broke, but there is still no clear understand-
neither Mr. McGhee's office nor ing, even within the United States
the Policy Planning nning Staff really Government, let alone with Lon-
went to work urgently on the im- don, on the basic interests of the
plications of the situation until it United States and Britain in the
had reached a point where United
a seriousl whole Moslem world.
t t"