NOTES ON GATES'S AUSTIN SPEECH (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90G01353R000500600010-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 29
• Document Creation Date: December 27, 2016
• Document Release Date: July 5, 2012
• Sequence Number: 10
• Publication Date: May 31, 1988
• Content Type: MISC

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STATNOTE FOR:
OFFICE OF THE DEPUTY DIRECTOR
31 May 1988
Public Affairs Office
Room 1016 Ames Bldg.
Mary Evelyn,
Here are the folder and a copy of Mr. Gates'
Austin speech of 26 May for your records.
STAT
O/DDCI
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TABLE OF CONTENTS
Schedule of Events/Contacts
Summary Memo
Biographies
Austin Council on Foreign Affairs
Board of Directors
List of Distinguished Speakers
(Friends of the LBJ Library)
News Articles
Background
Correspondence
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AUSTIN FOREIGN AFFAIRS COUNCIL
LYNDON BAINES JOHNSON LIBRARY
26 MAY 1988
WHAT IS GOING ON IN THE SOVIET UNION
BY ROBERT M. GATES
DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE
INTRODUCTION
THE SELECTION OF MIKHAIL GORBACHEV AS GENERAL SECRETARY IN
THE SPRING OF 1985 SIGNALED THE POLITBURO'S RECOGNITION THAT
THE SOVIET UNION WAS IN DEEP TROUBLE -- ESPECIALLY ECONOMICALLY
AND SPIRITUALLY -- TROUBLE THAT THEY RECOGNIZED WOULD SOON
BEGIN TO HAVE REAL EFFECT ON MILITARY POWER AND THEIR POSITION
IN THE WORLD. DESPITE ENORMOUS RAW ECONOMIC POWER AND
RESOURCES, INCLUDING A $2 TRILLION A YEAR GNP, THE SOVIET
LEADERSHIP BY THE MID-1980S CONFRONTED A STEADILY WIDENING GAP
WITH THE WEST AND JAPAN -- ECONOMICALLY, TECHNOLOGICALLY AND IN
VIRTUALLY ALL AREAS OF THE QUALITY OF LIFE.
AS A RESULT OF THESE TRENDS, THE POLITBURO RECOGNIZED THAT
THE SOVIET UNION COULD NO LONGER RISK THE SUSPENDED ANIMATION
OF THE BREZHNEV YEARS, AND COALESCED AROUND AN IMAGINATIVE AND
VIGOROUS LEADER WHOM THEY HOPED COULD REVITALIZE THE COUNTRY
WITHOUT ALTERING THE BASIC STRUCTURE OF THE SOVIET STATE OR
COMMUNITY PARTY.
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STRENGTHENING THE LEADERSHIP AND HIS POSITION
THERE IS STRONG SUPPORT IN THE POLITBURO FOR MODERNIZATION
OF THE SOVIET ECONOMY. EVEN SO, NEARLY EVERY STEP GORBACHEV
SEEKS TO TAKE TOWARD STRUCTURAL ECONOMIC OR POLITICAL CHANGE IS
A STRUGGLE, AND SUPPORT IN THE POLITBURO FOR HIS INITIATIVES
SHIFTS CONSTANTLY. INCREASINGLY, AS GORBACHEV HAS ATTEMPTED TO
PUSH THE REFORM PROCESS FURTHER, OPINION IN THE POLITBURO HAS
BECOME POLARIZED; INDEED, AN OPEN SPLIT HAS DEVELOPED. PARTY
SECRETARY LIGACHEV -- THE NUMBER TWO MAN -- HAS BECOME MORE
VOCAL IN HIS CRITICISM OF GORBACHEV'S AGENDA. APPARENTLY
BELIEVING GORBACHEV TO BE VULNERABLE FOLLOWING THE DISTURBANCES
IN ARMENIA, LIGACHEV REPORTEDLY AUTHORIZED PUBLICATION OF A
VENOMOUS ARTICLE DEFENDING STALIN AND QUESTIONING GORBACHEV'S
PROGRAM.
GORBACHEV COUNTERATTACKED, APPARENTLY TRUMPED LIGACHEV IN A
POLITBURO DEBATE ON THE ISSUE, AND HAS REDUCED HIS ROLE. AND
LIGACHEV NOW AT LEAST IS SOUNDING MORE SUPPORTIVE -- PERHAPS TO
SHOW UNITY AT THE TIME OF THE SUMMIT.
THE POLITICAL WAR IS FAR FROM OVER, HOWEVER, AND THE STAKES
ARE HIGH; IN THE SHORT TERM, CONTROL OF THE PARTY CONFERENCE IN
LATE JUNE AND WITH IT THE IMMEDIATE FATE OF THE REFORM AGENDA
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IS ON THE LINE. FOR THE LONGER TERM, THERE WILL BE CONTINUING
BATTLES OVER PACE AND SCOPE OF MODERNIZATION AND WHO HOLDS
POLITICAL POWER. EVEN GORBACHEV ADMITS THE STRUGGLE WILL LAST
A DECADE OR MORE; FOR HIM, THERE WILL ALWAYS BE A LIGACHEV AND
LEGIONS OF LITTLE STALINS.
THE STRUGGLE WITHIN THE POLITBURO IS ALL THE MORE IMPORTANT
TO GORBACHEV BECAUSE BELOW THE POLITBURO, SUPPORT FOR CHANGE --
AND ESPECIALLY FAR-REACHING CHANGE -- IS EVEN SHAKIER.
OPPOSITION FROM THE PARTY CENTRAL COMMITTEE AND PARTY APPARATUS
IS A CRITICAL PROBLEM FOR GORBACHEV. SENIOR LEVELS OF THE
ECONOMIC BUREAUCRACY STAND TO LOSE THE MOST IF GORBACHEV MOVES
TO DECENTRALIZE THE SYSTEM AND ARE IMPORTANT OBSTACLES TO
IMPLEMENTATION OF HIS PROGRAM. WHILE MANY SENIOR OFFICIALS OF
THE NATIONAL SECURITY BUREAUCRACIES UNDERSTAND THE CONNECTION
BETWEEN A STRONG DEFENSE AND A HEALTHY ECONOMY, THEY ALSO ARE
UNHAPPY WITH THE IDEA OF GREATER CONSTRAINTS ON DEFENSE
SPENDING AND SKEPTICAL OF PROMISED BENEFITS. OTHERS, FOR
EXAMPLE THE KGB, ARE CONCERNED ABOUT THE POTENTIAL FOR
INSTABILITY AT HOME AND IN EASTERN EUROPE CREATED BY ANY
RELAXATION OF POLITICAL CONTROLS. THE SOVIET POPULATION SEEMS
TO BE PASSIVELY SUPPORTIVE, BUT THEY HAVE SEEN CAMPAIGNS FOR
CHANGE COME AND GO. THEY ARE SKEPTICAL THAT GORBACHEV'S
EFFORTS WILL PRODUCE LASTING RESULTS OR EVEN IMMEDIATE
PAYOFFS. THE INTELLIGENTSIA ARE PROBABLY THE ONLY GROUP THAT
COMES CLOSE TO GIVING WHOLE-HEARTED SUPPORT.
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IN SUM, GORBACHEV STILL VIGOROUSLY SUPPORTS RESTRUCTURING,
HAS MADE HEADWAY IN OBTAINING POLITBURO SUPPORT, BUT FACES A
LARGELY HOSTILE PARTY AND STATE BUREAUCRACY AND A CONSERVATIVE
AND APATHETIC POPULATION. EVERY RUSSIAN AND SOVIET LEADER FROM
PETER THE GREAT TO THE PRESENT SEEKING CHANGE OR MODERNIZATION
HAS FACED FORMIDABLE OPPOSITION. BUT, UNLIKE THEM, GORBACHEV
REALISTICALLY CANNOT RESORT TO WIDE-SCALE TERROR AND VIOLENCE
TO ELIMINATE THOSE WHO STAND IN HIS WAY. HE MUST RELY ON A
LONG TERM, LARGELY NON-VIOLENT-PURGE OF PARTY AND BUREAUCRACY
AND PLACEMENT OF HIS SUPPORTERS IF HE IS TO REMAIN IN POWER AND
TO SUCCEED AT ALL. THE CENTRAL QUESTION IS WHETHER HE WILL GET
ENOUGH TIME.
MODERNIZATION OF THE ECONOMY
ALTHOUGH BY 1985 GORBACHEV HAD BEEN ON THE POLITBURO FOR
SIX YEARS AND A CENTRAL COMMITTEE MEMBER FOR 14 YEARS, HE NOW
ADMITS THAT WHEN HE BECAME GENERAL SECRETARY HE UNDERESTIMATED
THE SEVERITY OF THE ECONOMIC PROBLEMS AFFLICTING THE SOVIET
UNION. ACCORDINGLY, HE SEEMS TO BE INCREASINGLY RECEPTIVE TO
MORE RADICAL PROPOSALS FOR CHANGE.
TAKEN AS A WHOLE, THE REFORM MEASURES PUT IN PLACE IN
GORBACHEV'S THREE YEAR TENURE ARE AN IMPRESSIVE PACKAGE.
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NEVERTHELESS, THE REFORMS DO NOT GO NEARLY FAR ENOUGH. THE
REFORM PACKAGE AS NOW CONSTITUTED IS A SET OF HALF MEASURES
THAT LEAVES IN PLACE THE PILLARS OF SOCIALIST CENTRAL
PLANNING.
BECAUSE OF INTERNAL CONTRADICTIONS AND THE RETENTION OF SO
MANY ELEMENTS OF THE PRESENT SYSTEM, EVEN IF FULLY IMPLEMENTED
BY 1991 AS INTENDED, THE REFORMS WILL NOT CREATE THE DYNAMIC
ECONOMIC MECHANISM THAT GORBACHEV SEEKS AS THE MEANS TO REDUCE
OR CLOSE THE TECHNOLOGICAL GAP WITH THE WEST. TO THE CONTRARY,
AGGRESSIVE IMPLEMENTATION OF REFORMS IS CAUSING SERIOUS
DISRUPTIONS AND TURBULENCE IN THE ECONOMY. SPECIFICALLY:
-- SOVIET GNP GROWTH FELL TO ABOUT .5% IN 1987, DOWN FROM
ALMOST 4% IN 1986.
-- GORBACHEV'S QUALITY CONTROL PROGRAM IS DISRUPTING
PRODUCTION.
NEW INITIATIVES IN ORGANIZATION AND MANAGEMENT ARE
CREATING CONFUSION AND APPREHENSION IN SOME QUARTERS,
AND BUREAUCRATIC FOOT-DRAGGING AND OUTRIGHT RESISTANCE
IN OTHERS.
-- DESPITE CONSIDERABLE RHETORIC, NONE OF THE PROPOSALS SO
FAR GREATLY CHANGES THE SYSTEM OF ECONOMIC INCENTIVES
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THAT DISCOURAGE MANAGEMENT-INNOVATION, TECHNOLOGICAL
CHANGE AND PRIVATE INITIATIVE.
-- A SHARP DECLINE IN SOVIET HARD CURRENCY EARNINGS (THE
RESULT OF FALLING OIL PRICES AND THE DEPRECIATION OF
THE DOLLAR) WILL LIMIT MUCH NEEDED SPECIALIZED IMPORTS
FROM THE WEST.
-- TRYING TO RESHAPE THE ENTIRE STALINIST ECONOMIC
STRUCTURE GRADUALLY WHILE LEAVING KEY PROBLEMS OF PRICE
REFORM AND THE GOVERNMENT MONOPOLY OVER GOODS UNTIL
LAST IS LIKE A PHASED CHANGE FROM DRIVING ON THE RIGHT
HAND SIDE OF THE ROAD TO THE LEFT -- TRUCKS FIRST, CARS
LATER. THE RESULTS ARE LIKELY TO BE SIMILAR. TO
ILLUSTRATE JUST HOW TOTALLY OUT OF KILTER THE SOVIET
ECONOMY IS, CONSIDER THAT RENTS FOR HOUSING -- WHICH IS
GENERALLY AWFUL HAVE NOT BEEN RAISED SINCE 1928; THE
CURRENT PRICE OF BREAD WAS SET IN 1954; AND FOOD PRICES
OVERALL IN 1962. STATE SUBSIDIES ARE SO HUGE THAT IT
IS CHEAPER FOR A PEASANT TO FEED HIS PIGS BREAD THAN TO
GIVE THEM GRAIN. (AND THE SOVIET PEOPLE KNOW ANY PRICE
REFORM CAN ONLY HURT THEM.)
-- FINALLY, FOR A MODERNIZATION DRIVE THAT DEPENDS IN
SUBSTANTIAL MEASURE ON HARDER WORK, THERE ARE FEW
REWARDS FOR SUCH WORK. UNSATISFIED CONSUMER DEMAND IS
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REFLECTED IN CONTINUING LONG LINES IN STATE STORES AND
RISING PRICES IN THE COLLECTIVE FARM MARKETS. AND
GORBACHEV OFFERS LITTLE HOPE OF SIGNIFICANT CHANGE FOR
YEARS.
THUS, WHILE IMPORTANT BATTLES HAVE BEEN WON IN PRINCIPLE,
THE WAR TO CHANGE FUNDAMENTALLY THE MAIN PILLARS OF THE
STALINIST ECONOMIC SYSTEM REMAINS TO BE FOUGHT AND WON.
POLITICAL REFORM
GORBACHEV'S PLANS FOR THE POLITICAL SYSTEM REMAIN LESS
WELL-DEFINED THAN HIS ECONOMIC AGENDA. BUT HE AND HIS ALLIES
HAVE SHOWN A GROWING CONVICTION THAT THE REVITALIZATION OF
SOCIETY AND ECONOMY CAN SUCCEED ONLY IF THERE ARE SIGNIFICANT
CHANGES IN THE POLITICAL ARENA AS WELL. THE REGIME APPEARS TO
BE MOVING ON AT LEAST THREE FRONTS TO CREATE THE POLITICAL
CLIMATE IT SEEKS:
THE FIRST IS IDEOLOGY. GORBACHEV'IS FRUSTRATED WITH
THE STRAITJACKET OF INHERITED DOCTRINE THAT OPPONENTS
OF CHANGE HAVE SOUGHT TO IMPOSE ON HIM. HE SEEKS TO
EXPAND HIS ROOM TO MANEUVER BY AN INCREASINGLY OPEN
ATTACK ON STAGNATION IN IDEOLOGY AND BY DEPICTING HIS
OWN.PROPOSALS AS AN EFFORT TO RETURN TO LENIN'S
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ORIGINAL INTENT AND EXPAND THE BOUNDS OF WHAT IS
PERMISSABLE UNDER SOCIALISM.
THE SECOND FRONT IS DEMOCRATIZATION. GORBACHEV'S
CAMPAIGN FOR "DEMOCRATIZATION" IS DESIGNED TO
REVITALIZE THE COUNTRY'S POLITICAL INSTITUTIONS.
INITIALLY, THIS WAS MOSTLY RHETORIC. IN RECENT MONTHS,
HOWEVER, AS THE JUNE PARTY CONFERENCE HAS DRAWN CLOSER,
HIS PROPOSALS HAVE TAKEN ON NEW LIFE. THE SOVIET PRESS
HAS PUBLICIZED NUMEROUS PROPOSALS TO BE CONSIDERED AT
THE CONFERENCE, INCLUDING CALLS TO LIMIT THE TERMS OF
OFFICE FOR PARTY OFFICIALS, MANDATORY RETIREMENT, AND
USE OF SECRET BALLOTS IN ELECTIONS. GORBACHEV
APPARENTLY BELIEVES THAT WITHOUT SUCH REFORM, IT WILL
BE IMPOSSIBLE TO BREAK THE RESISTANCE WITHIN THE PARTY
TO HIS AGENDA.
THE THIRD FRONT IS GLASNOST, OR OPENNESS. TIGHT
CENTRAL CONTROLS OVER THE FLOW OF IDEAS AND INFORMATION
LIE AT THE HEART OF THE SOVIET SYSTEM. REMARKS BY
GORBACHEV AND HIS KEY ALLIES INDICATE THAT THE NEW
LEADERSHIP BELIEVES THAT THIS APPROACH IS INCOMPATIBLE
WITH AN INCREASINGLY WELL-EDUCATED SOCIETY, COMPLEX
ECONOMY AND THE POLITICAL NEEDS OF THE MOMENT. I SEE
OTHER MOTIVES AS WELL BEHIND GLASNOST, NOT LEAST OF
WHICH IS USE OF AN APPARENT LIBERALIZING FORCE TO
ACHIEVE SOME RATHER OLD-FASHIONED OBJECTIVES.
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GLASNOST IS BEING USED TO CRITICIZE OFFICIALS
GORBACHEV SEES AS HOSTILE AND TO PRESSURE THEM TO
GET WITH THE PROGRAM.
IT IS BEING USED TO HIGHLIGHT PROBLEMS HE WANTS TO
ATTACK -- SUCH AS ALCOHOLISM AND DRUG ABUSE,
STALIN'S LEGACY, AND BUREAUCRATIC INERTIA -- IN
ORDER TO MOBILIZE SOCIETY BEHIND HIS CAMPAIGNS.
HE HOPES TO USE THE ATMOSPHERE OF GREATER OPENNESS
TO COOPT INTELLECTUALS AND PARTICULARLY ENGINEERS
AND SCIENTISTS TO BE FULL PARTNERS IN THE ATTEMPT
TO MODERNIZE THE ECONOMY -- TO OVERCOME THEIR
CYNICISM.
IT ENABLES THE REGIME TO COMPETE WITH FOREIGN AND
OTHER UNOFFICIAL SOURCES OF INFORMATION. SINCE THE
,POPULATION WILL HEAR ABOUT RIOTING IN KAZAKHSTAN
AND ARMENIA AND THE DISASTER AT CHERNOBYL ANYWAY,
GORBACHEV BELIEVES IT IS BEST TO PRINT THE NEWS AND
PUT AN OFFICIAL SPIN ON IT.
FINALLY, HE INTENDS TO LEGITIMIZE BROADER
DISCUSSION OF PROBLEMS AND POSSIBLE SOLUTIONS THAN
PERMITTED HERETOFORE IN ORDER TO BREAK THE BACK OF
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DOMESTIC RESISTANCE AND INCREASE HIS ROOM FOR
MANEUVER AT HOME. FURTHER, HE SEES THE EXPANSION
OF POLITICAL DEBATE AS A NECESSARY STEP TO ACHIEVE
HIS LONGER RANGE GOALS.
TO KEEP GLASNOST IN PERSPECTIVE, THERE HAS BEEN A
MORE OPEN AIRING OF PROBLEMS, BUT ONLY A VERY LIMITED
EXPANSION OF POLITICAL DEBATE. EVEN THIS HAS LED TO
CONTROVERSY OVER THE POLICY ITSELF AND OPEN CRITICISM
BY OTHERS IN THE POLITBURO THAT "OPENNESS" HAS GONE TOO
FAR. GORBACHEV HIMSELF HAS CAUTIONED MEDIA OFFICIALS
NOT TO GO TOO FAR LEST THEY UNDERMINE SOCIALIST VALUES
OR CREATE A CLIMATE OF DISRESPECT FOR PARTY OFFICIALS.
YET, GORBACHEV ALREADY HAS SET LOOSE FORCES THAT WILL
BE IMMENSELY DIFFICULT AND PAINFUL TO LEASH -- AS MUST
HAPPEN AT SOME POINT. THIS WAS ESPECIALLY EVIDENT
DURING THE RECENT DISTURBANCES IN ARMENIA AND
AZERBAIZHAN.
WHILE GORBACHEV'S BOLD POLITICAL MOVES AND RADICAL RHETORIC
HAVE SHAKEN THE SOVIET SYSTEM, HE HAS NOT YET REALLY CHANGED
IT. THE ULTIMATE FATE OF HIS VISION OF REFORM WILL DEPEND ON
HOW SUCCESSFUL HE IS IN PUSHING AHEAD WITH ITS IMPLEMENTATION
OVER THE NEXT DECADE IN THE FACE OF DESIGN FLAWS, ECONOMIC
DISRUPTION, TREMENDOUS OPPOSITION AND, WORSE, APATHY.
BUREAUCRATIC AS WELL AS POPULAR HOSTILITY IS LIKELY TO GROW AS
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DISRUPTION AND DISLOCATION BROUGHT ABOUT BY CHANGE RESULT IN
ECONOMIC SETBACKS AND, IN ALL LIKELIHOOD, A WORSENING SITUATION
FOR THE CONSUMER. WHAT GORBACHEV IS SUCCESSFULLY CHANGING IS
THE OFFICIALDOM OF THE PARTY AND STATE BUREAUCRACY. ONCE
AGAIN, THE PURGE HAS BECOME THE VEHICLE FOR CONSOLIDATING AND
ENHANCING PERSONAL POWER, AS WELL AS FOR IMPLEMENTING CHANGE.
IT IS BY NO MEANS CERTAIN -- I WOULD EVEN SAY IT IS
DOUBTFUL -- THAT HE CAN IN THE END PULL OFF REJUVENATION OF THE
SYSTEM, BUT HE HAS DEMONSTRATED A WILLINGNESS TO RISK HIS POWER
AND POSITION IN THE EFFORT. AS MUCH AS ANYTHING, THIS
INDICATES HOW DESPERATE HE BELIEVES THE SOVIET PREDICAMENT
REALLY IS.
IMPLICATIONS FOR FOREIGN POLICY
THERE SEEMS TO BE GENERAL AGREEMENT IN THE POLITBURO THAT,
FOR NOW, ECONOMIC MODERNIZATION REQUIRES A MORE PREDICTABLE, IF
NOT BENIGN, INTERNATIONAL ENVIRONMENT. THE ELEMENTS OF FOREIGN
POLICY THAT SPRING FROM DOMESTIC ECONOMIC WEAKNESS ARE A MIX OF
NEW INITIATIVES AND LONGSTANDING POLICIES. FIRST, GORBACHEV
WANTS TO ESTABLISH A NEW AND FAR-REACHING DETENTE FOR THE
FORESEEABLE FUTURE TO OBTAIN TECHNOLOGY, INVESTMENT, TRADE AND,
ABOVE ALL, TO AVOID MAJOR NEW MILITARY EXPENDITURES WHILE THE
SOVIET ECONOMY IS REVIVED. GORBACHEV MUST SLOW OR STOP
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AMERICAN MILITARY MODERNIZATION THAT THREATENS NOT ONLY SOVIET
STRATEGIC GAINS OF THE LAST GENERATION BUT WHICH ALSO, IF
CONTINUED, WILL FORCE THE USSR TO DEVOTE HUGE NEW RESOURCES TO
THE MILITARY IN A HIGH TECHNOLOGY COMPETITION FOR WHICH THEY
ARE ILL-EQUIPPED. THE SOVIETS KNOW THAT DETENTE IN THE EARLY
1970S CONTRIBUTED SIGNIFICANTLY TO DOWNWARD PRESSURE ON WESTERN
DEFENSE BUDGETS, SLOWED MILITARY MODERNIZATION, WEAKENED
RESOLVE TO COUNTER SOVIET ADVANCES IN THE THIRD WORLD, AND
OPENED TO THE USSR NEW OPPORTUNITIES FOR WESTERN TECHNOLOGY AND
ECONOMIC RELATIONS.
-SECOND, A LESS VISIBLE BUT ENDURING ELEMENT OF FOREIGN
POLICY -- EVEN UNDER GORBACHEV -- IS THE CONTINUING
EXTRAORDINARY SCOPE AND SWEEP OF SOVIET MILITARY MODERNIZATION
AND WEAPONS RESEARCH AND DEVELOPMENT. DESPITE SOVIET RHETORIC,
WE STILL SEE NO SLACKENING OF THEIR WEAPONS PRODUCTION OR
PROGRAMS. AND, FURTHER, SOVIET RESEARCH ON NEW, EXOTIC WEAPONS
SUCH AS LASERS AND THEIR OWN VERSION OF SDI CONTINUES APACE.
VIRTUALLY ALL OF THEIR PRINCIPAL STRATEGIC WEAPONS WILL BE
REPLACED WITH NEW, MORE SOPHISTICATED SYSTEMS BY THE MID-1990S,
AND A NEW STRATEGIC BOMBER IS BEING ADDED TO THEIR ARSENAL FOR
THE FIRST TIME IN DECADES. THEIR DEFENSES AGAINST US WEAPONS
ARE BEING STEADILY IMPROVED, AS ARE THEIR-CAPABILITIES FOR
WAR-FIGHTING. AS OUR DEFENSE BUDGET DECLINES AGAIN, THEIRS
CONTINUES TO GROW, ALBEIT SLOWLY.
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THE THIRD ELEMENT OF GORBACHEV'S FOREIGN POLICY IS
CONTINUED AGGRESSIVE PURSUIT OF SOVIET OBJECTIVES AND
PROTECTION OF SOVIET CLIENTS IN THE THIRD WORLD. UNDER
GORBACHEV, THE SOVIETS AND CUBANS ARE NOW PROVIDING MORE THAN A
BILLION DOLLARS A YEAR IN ECONOMIC AND MILITARY ASSISTANCE TO
NICARAGUA; MORE THAN A BILLION DOLLARS WORTH OF MILITARY
EQUIPMENT WAS SENT TO VIETNAM, LAOS AND CAMBODIA IN THE FIRST
SIX MONTHS OF LAST YEAR; MORE THAN FOUR BILLION DOLLARS IN
MILITARY EQUIPMENT HAS BEEN SENT TO ANGOLA SINCE 1984. AND, OF
COURSE, CUBA GETS ABOUT FIVE BILLION DOLLARS IN SOVIET SUPPORT
EACH YEAR. AT A TIME OF ECONOMIC STRESS AT HOME, THESE
COMMITMENTS SPEAK CLEARLY ABOUT SOVIET PRIORITIES.
THE FOURTH ELEMENT OF GORBACHEV'S FOREIGN POLICY IS NEW AND
DYNAMIC DIPLOMATIC INITIATIVES TO WEAKEN TIES BETWEEN THE US
AND ITS WESTERN ALLIES, CHINA, JAPAN, AND THE THIRD WORLD; TO
PORTRAY THE SOVIET GOVERNMENT AS COMMITTED TO ARMS CONTROL AND
PEACE; AND TO SUGGEST MOSCOW'S INTEREST IN DIPLOMATIC SOLUTIONS
TO THIRD WORLD PROBLEMS. THE FOREMOST EXAMPLE OF THIS IS THE
DECISION TO WITHDRAW FROM AFGHANISTAN. WE CAN AND SHOULD
EXPECT OTHER NEW AND BOLD INITIATIVES, PERHAPS INCLUDING
UNILATERAL CONVENTIONAL FORCE REDUCTIONS THAT WILL SEVERELY
TEST ALLIANCE COHESION. SIMILARLY, NEW INITIATIVES WITH CHINA
AND JAPAN SEEM LIKELY IN AN EFFORT, TO OVERCOME BILATERAL
OBSTACLES TO IMPROVED RELATIONS AND TO EXPLOIT PROBLEMS BETWEEN
THEM AND THE US. AND, IN THE THIRD WORLD, THEY WILL SEEK TO
TAKE ADVANTAGE OF ANY RELAXATION OF US VIGILANCE OR CONSTANCY.
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THESE NEW INITIATIVES ALSO ARE INTENDED TO BREAK SOVIET
FOREIGN POLICY OUT OF LONGSTANDING TACTICAL DEADENDS AND TO
MAKE THE SOVIET UNION A MORE EFFECTIVE, FLEXIBLE AND VIGOROUS
PLAYER THROUGHOUT THE WORLD. THE RESULT IS LIKELY TO BE A
SOVIET POLITICAL CHALLENGE TO THE US ABROAD THAT COULD POSE
GREATER PROBLEMS FOR OUR INTERNATIONAL POSITION, ALLIANCES AND
RELATIONSHIPS IN THE FUTURE THAN THE HERETOFORE ONE DIMENSIONAL
SOVIET MILITARY CHALLENGE. CONSIDERABLE NEW THINKING,
FLEXIBILITY AND POLITICAL AGILITY WILL BE NEEDED ON OUR OWN
PART TO ANTICIPATE AND COUNTER SOVIET INITIATIVES AND TO AVOID
BEING OUTMANEUVERED AND PLACED CONSISTENTLY ON THE DEFENSIVE.
CONCLUSIONS
WHILE ACTUAL CHANGES IN THE ECONOMY OR POLITICAL LIFE OF
THE SOVIET UNION SO FAR HAVE BEEN MODEST, WHAT GORBACHEV
ALREADY HAS SET IN MOTION REPRESENTS A POLITICAL EARTHQUAKE.
HE IS PULLING ALL OF THE LEVERS OF CHANGE IN A SOCIETY AND
CULTURE THAT HISTORICALLY HAS RESISTED CHANGE -- AND WHERE
CHANGE USUALLY HAS BEEN VIOLENT AND WRENCHING. THE FORCES HE
HAS UNLEASHED ARE POWERFUL BUT SO ARE THE PEOPLE AND
INSTITUTIONS HE HAS ANTAGONIZED -- THUS SETTING IN MOTION A
TREMENDOUS POWER STRUGGLE AND PURGE NO LESS DRAMATIC FOR THE
ABSENCE OF SHOW TRIALS AND TERROR.
14
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THE STRUGGLE IS ESSENTIALLY BETWEEN THOSE SEEKING TO
PRESERVE THE STATUS QUO -- AND THEIR POWER IN IT -- AND
GORBACHEV AND HIS ALLIES WHO SEEK TO REPLACE THOSE NOW IN POWER
AND, IRONICALLY, TO TURN THE CLOCK BACK, BACK BEFORE STALINISM
TO LENINISM. GORBACHEV SEEKS TO RESTORE IN THE USSR A SYSTEM
IN WHICH SOME -- THOUGH CERTAINLY NOT ALL -- ELEMENTS OF THE
STALINIST ECONOMIC STRUCTURE AND BUREAUCRACY ARE ELIMINATED
THUS OPENING THE WAY TO GREATER FLEXIBILITY AND INNOVATION AND
THEREBY TO MODERNIZATION AND IMPROVED PERFORMANCE.
IN THE POLITICAL ARENA, GORBACHEV'S LENINISM MEANS THE
CONTINUED POLITICAL MONOPOLY OF THE COMMUNIST PARTY, ITS ROLE
AS SOLE ARBITER OF THE NATIONAL AGENDA, ITS CONTROL OF ALL THE
LEVERS OF POWER, AND ITS ULTIMATE AUTHORITY OVER ALL ASPECTS OF
NATIONAL LIFE -- INCLUDING THE LAW. IT ALSO MEANS A MASSIVE
PURGE OF THE PARTY AND GOVERNMENT BUREAUCRACY, NOW UNDERWAY.
GORBACHEV'S OWN BOOK MAKES CLEAR THAT "DEMOCRATIZATION"
SOVIET-STYLE DOES NOT MEAN MOVING THE USSR AWAY FROM
MARXISM-LENINISM AND ITS ESSENTIALLY TOTALITARIAN STRUCTURE.
HIS RECENT ACTIONS IN SUPPRESSING THE DEMOCRATIC UNION AND
OTHER SUCH EMBRYONIC OPPOSITION PARTIES PROVE THE POINT. THE
DICTATORSHIP OF THE COMMUNIST PARTY REMAINS UNTOUCHED AND
UNTOUCHABLE.
15
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WESTERNERS FOR CENTURIES HAVE HOPED REPEATEDLY THAT RUSSIAN
ECONOMIC MODERNIZATION AND POLITICAL REFORM -- EVEN REVOLUTION
-- SIGNALED AN END TO DESPOTISM. REPEATEDLY SINCE 1917, THE
WEST HAS HOPED THAT DOMESTIC CHANGES IN THE USSR WOULD LEAD TO
CHANGES IN COMMUNIST COERCIVE RULE AT HOME AND AGGRESSIVENESS
ABROAD. THESE HOPES, DASHED TIME AND AGAIN, HAVE BEEN REVIVED
BY GORBACHEV'S AMBITIOUS DOMESTIC AGENDA, INNOVATIVE FOREIGN
POLICY AND PERSONAL STYLE.
THERE IS A CHANCE -- A VERY SMALL ONE IN MY VIEW -- THAT
GORBACHEV IS SETTING LOOSE FORCES THAT NEITHER HE NOR THE PARTY
WILL BE ABLE TO CONTROL AND THAT, CONTRARY TO THEIR INTENTIONS
AND EXPECTATIONS, ULTIMATELY MAY BRING A FUNDAMENTAL AND
WELCOME TRANSFORMATION OF THE SOVIET UNION AT HOME AND ABROAD.
AS WE HOPE THAT THIS REMOTE POSSIBILITY SOMEDAY COMES TO PASS,
I WOULD ADVISE, IN OLIVER CROMWELL'S FAMOUS WORDS, THAT WE
"TRUST IN GOD, BUT KEEP YOUR POWDER DRY.".
ENDURING CHARACTERISTICS OF SOVIET GOVERNANCE AT HOME AND
POLICY ABROAD MAKE IT CLEAR THAT -- WHILE THE CHANGES UNDERWAY
OFFER OPPORTUNITIES FOR THE UNITED STATES AND FOR A RELAXATION
OF TENSIONS -- GORBACHEV INTENDS IMPROVED SOVIET ECONOMIC
PERFORMANCE, GREATER POLITICAL VITALITY AT HOME, AND MORE
DYNAMIC DIPLOMACY TO MAKE THE USSR A MORE COMPETITIVE AND
STRONGER ADVERSARY IN THE YEARS AHEAD. WE MUST NOT MISLEAD
16
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OURSELVES OR ALLOW OURSELVES TO BE MISLED INTO BELIEVING
OTHERWISE.
IN CONCLUSION, THE QUESTION I AM MOST FREQUENTLY ASKED IS
WHETHER IT IS IN OUR INTEREST FOR GORBACHEV TO SUCCEED OR
FAIL. THE FIRST THING THAT WE MUST ADMIT IS THAT THERE IS VERY
LITTLE THAT THE UNITED STATES CAN DO TO INFLUENCE THE OUTCOME
OF THE STRUGGLE GOING ON INSIDE THE SOVIET UNION. THAT SAID,
WE SHOULD ASK OURSELVES IF WE WANT THE POLITICAL, SOCIAL AND
ECONOMIC REVITALIZATION OF THE HISTORICAL AND CURRENT SOVIET
SYSTEM. I THINK NOT.
WHAT WE DO SEEK IS A SOVIET UNION THAT IS PLURALISTIC
INTERNALLY, NON-INTERVENTIONIST EXTERNALLY, OBSERVES BASIC
HUMAN RIGHTS, CONTRIBUTES TO INTERNATIONAL STABILITY, AND A
SOVIET UNION WHERE THESE CHANGES ARE MORE THAN A TEMPORARY
EDICT FROM THE TOP AND ARE INDEPENDENT OF THE VIEWS, POWER AND
DURABILITY OF A SINGLE INDIVIDUAL. WE CAN HOPE FOR SUCH CHANGE
BUT ALL OF RUSSIAN AND SOVIET HISTORY CAUTIONS US TO BE DEEPLY
SKEPTICAL.
WHILE WE CANNOT SIMPLY CLOSE OUR EYES TO MOMENTOUS
DEVELOPMENTS IN THE USSR, WE SHOULD WATCH, WAIT, AND EVALUATE.
AS ONE OF MY COLLEAGUES HAS SAID, WE SHOULD APPLAUD PERESTROIKA
BUT NOT FINANCE IT. WE SHOULD NOT MAKE CONCESSIONS BASED ON
HOPE AND POPULAR ENTHUSIASMS HERE OR PLEASING PERSONALITIES AND
17
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ATMOSPHERIC OR SUPERFICIAL CHANGES THERE. WE SHOULD, HOWEVER,
TAKE ADVANTAGE OF OPPORTUNITIES WHERE THE TERMS ARE FAVORABLE
TO US OR WHERE WE CAN BRING ABOUT DESIRABLE CHANGES IN SOVIET
POLICIES -- WHETHER TO ADVANCE HUMAN RIGHTS, FREER EMIGRATION,
STRATEGIC STABILITY, SOLUTIONS TO SOVIET GENERATED PROBLEMS
SUCH AS AFGHANISTAN, OR EVEN EXPANDED BUSINESS TIES (IF THERE
IS NO TRANSFER OF SENSITIVE TECHNOLOGY). ABOVE ALL,'WE MUST
ESTABLISH REALISTIC CRITERIA BY WHICH WE CAN JUDGE IN THE
COMING MONTHS AND YEARS WHETHER POLITICAL OR ECONOMIC CHANGE IN
THE SOVIET UNION GENUINELY IS RESHAPING THE FOUNDATIONS OF THE
SYSTEM -- OR WHETHER THE TOTALITARIAN STRUCTURE OF THE SOVIET
UNION, INCLUDING THE INSTRUMENTS OF CENTRAL CONTROL AND
REPRESSION, ENDURES DISCREETLY IN THE SHADOWS AVAILABLE AT THE
BECKON OF GORBACHEV'S SUCCESSOR, OR EVEN FOR GORBACHEV,
THERE ARE MANY UNCERTAINTIES SURROUNDING THE SOVIET UNION
TODAY, BUT ONE FACT IS CLEAR: WHETHER GORBACHEV SUCCEEDS,
FAILS, OR JUST SURVIVES, A STILL LONG COMPETITION AND STRUGGLE
WITH THE SOVIET UNION LIE BEFORE US. SEEING THIS REALITY
CLEARLY -- THE OPPORTUNITIES AS WELL AS THE DANGERS -- WILL BE
AN'EXTRAORDINARY CHALLENGE FOR THE UNITED STATES AND THE
WESTERN DEMOCRACIES IN THE YEARS AHEAD.
18
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 L(,1/P. 111/IAUD.,l , .1 11 n.ll v
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1J1St - ., 6.yJJ rrw uu-u, .
rib'utio,,.
Ori5 _ DDCI
STAT
24 May 1988
STAT
MEMORANDUM FOR:
FROM:
SUBJECT:
biography.)
Deputy Director of Central Intelligence
William M. Baker
Trip to Austin, Texas to Address the
Austin Council on Foreign Affairs and
Friends of the LBJ Library
1. This is background information for your trip to Austin on 26-27 May
to address the Austin Council on Foreign Affairs (ALFA) and Friends of the
Lyndon Baines Johnson (LBJ) Library, and to attend a reception and dinner.
The event will take place at the LBJ Library, 2313 Red River Street, on the
campus of the University of Texas. will accompany you on the
trip. Contact phone number: [phone] or [phone] x256.
2. Arrangements for your Address: You are asked to be at the LBJ
Library at p.m.-- or the time that your arrival allows-- on the 8th floor
in the offices of the Director of the LBJ?Library, Harry J. Middleton.
Mr. Middleton and Admiral Bobby Inman will meet and escort you to the
Frank C. Erwin Atrium foryour address. Mr. Middleton will give opening
remarks and you are scheduled to speak at 6:05 p.m. Admiral Inman will
introduce you. The suggested format is 25 minutes of remarks followed by
30 minutes of questions and answers. Adjournment is at 7:00 p.m. and
Admiral Inman will give closing remarks. A microphone and podium will be
available on the dais. Mr. Middleton and Admiral Inman will be seated in the
front row. DCI security is-taping your remarks for the Agency's historical
files. The LBJ Library is videotaping the program for its records and with
your consent will release it to Austin Cable TV and to the Ford Forum in
Boston. Prior to release you will be sent a copy of the tape for approval.
As long as we have the right of refusal, I recommend that we agree to this
broader coverage. A still photographer will be available to take
photographs. Any quotes published from your speech in the Friends's
Newsletter are to be reviewed by this office.
Approximately 500 members of the Austin Council on Foreign Affairs and
friends of the LBJ Library will be in the audience. The attendees represent
leaders of the business and university communities interested in foreign
affairs. Although the media has not been invited to--cover the event, a
reporter could be in the audience. The organization does not know whether
foreign nationals will be present. Mr. James T. McInnis who is the Agency's
Officer-in-Residence at the University of Texas will attend. (See tab for h) s
0FFICIAI IigE nN Y
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3. Reception and Dinner: After your speech, you are asked to proceed to
the wine and cheese reception in the Great Hall on the 2nd floor of the
Library. There will not be a receiving line. At 7:30 p.m. Admiral Inman will
escort you to the private dinner in the Presidential Suite on the 8th floor.
The following will be attending the dinner:
Admiral and Mrs. Bobby Inman
Dr. William Livingston) (Vice President, University of Texas and
Dean of Graduate Studies
STAT
STAT
*Mr. and Mrs. Walt Rostow
*Mr. and Mrs. Harry J. Middleton) Director, LBJ Library
The climate toward the Agency at the University of Texas has not been all
positive. Recently, our Agency's Officer-in-Residence James McInnis was
challenged on his role as a lecturer at the University and accused of helping
"recruit college students to work for CIA." On March 22 was the
keynote speaker of a three-day program on campus about the CIA which included
a speech by About a week later when our recruiters were on
campus there was an anti-CIA demonstration involving about 150 students who
"pounded on office windows and doors where CIA recruiters were interviewing."
Since the University is on break, no demonstrations are expected. (See tab
for news articles.)
officials that you may meet during the event.)
4. Background: The Austin Council of Foreign Affairs has a membership
of approximately 400 business, community, and academic leaders. (See
background tab for list of the Council's Board of Directors.) Friends of the
LBJ Library have a local and national membership of 1600. In many cases,
members belong to both organizations. The Council and the LBJ.Library have
joint meetings when the lecturer for the program speaks on foreign affairs.
Since 1971, the Friends have had a distinguished lecturer program.
Michael Dukakis, John Kenneth Galbraith and General William C. Westmoreland
have addressed the organization recently. (See tab for list of speakers.)
A half million people visit the LBJ Library museum exhibits and displays
each year. The building and grounds of the LBJ Library, the first to be
located on a university campus, were donated by the University of Texas and
are operated by the National Archives of the General Services Administration.
(See front pocket for brochures.)
*(See tab for biographies of dinner attendees as well as other University
Office of Personnel reports that 130 alumni from the University of Texas
work for the Agency.
(b)(6)
STAT
(b)(6)
STAT
(b)(6)
(b)(6)
STAT
STAT
STAT
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UrriUiML UJt UIYLT
DDCI SCHEDULE/CONTACTS
AUSTIN, TEXAS
26-27 May 1988
Thursday, 26 May
1:UU p.m. EDT Depart, National Airport
CDT Arrive, Austin Airport
6:OU p.m. Frank C. Erwin Atrium, 8th floor
Opening remarks, Harry Middleton
Introduction, keynote speaker
Admiral Bobby Inman
6:U5 p.m. Address
The Honorable Robert M. Gates
25 minutes of remarks and 30 minutes of Q&A
Arrive,-University of Texas
Lyndon Baines Johnson (LBJ) Library
Office of the. Director, 8th floor
2313 Red River Street -
Phone: [phone] or [phone] X256
Met by Admiral Bobby Inman
President of Austin Council of Foreign Affairs (ALFA)
Mr. Harry J. Middleton
Director, LBJ Library
7:UU p.m. Closing remarks
Admiral Bobby Inman
Reception, Great Hall, 2nd floor
Private dinner, Presidential Suite, 8th floor
Adjourment
Remain overnight
Friday, 27 May
Depart midmorning, Austin Airport
Agency Aircraft
Arrive, Wichita, Kansas
(Contact for arrangements: Assistant Director LBJ Library Charles Cockran
Phone: [phone])
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 I \ A
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yJ 1j :
FORM 610 USEEDITIPREVIONOUSS 4 U.S. Government Printing office: 19$5-494614pNl5e
i_7a
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ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Letter to Harry J. Middleton - Austin Foreign Affairs Council
26 May 1988
FROM: EXTENSION
William M. Bake rG~,,~
Di
t
NO.
~~"^
rec
or, Public Af i rs
DATE
31 Mar 88
TO: (Officer designation, room number, ands
building '
APR 1988 -71- /_
DATE
RECEIVED FORWARDED
OFFICER'S
INITIALS
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
1.
DDCI
61
~~
2.
3.
PAO
4.
5.
6.
7.
8.
9.
10.
11,
12.
13.
14.
EXEC Ek C
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15.
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Central intelligence Agency - -
14 APR 1988
Mr. Harry J. Middleton
Director
Lyndon Baines Johnson Library
2313 Red River Street
Austin, Texas 78705
I accept with pleasure your kind invitation to address the Austin Foreign
Affairs Council at the LBJ Library on May 26th. I will look forward.to
meeting with you and members of the Council and also attending the dinner
party following the reception. A member of the Public Affairs staff will be
in touch with you concerning the arrangements.
Best wishes and please give my regards to Bob Inman.
STAT
STAT
STAT
STAT
I - ER
Registry
I - DPAO
1 - PAO Ames
1 - PAO Chrono
1 - MED(Subject)
1 - Jean
Sincerely
Deputy Di recto"r of Cen?r Intel i igence
DCI/PAO/WMB
Distribution: %U
Orig. - Addressee
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STAT
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STAT TO:
PAO
1016 Ames Bldg.
Another speaking engagement to put on the
books. Would you prepare a formal response
As you can see `-this engagement was initiated
by Admiral Inman. Will keep you posted on
further communications with the Admiral.
STAT
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ER 1246X 88
Lyndon Baines Iohnson Library
2313 Red River Street Austin, Texas 78705
March 18, 1988
Mr. Robert M. Gates
Deputy Director
Central Intelligence Agency
Washington, D.C. 20505
On behalf of the Austin Foreign Affairs Council and at the
suggestion of -its president, Bob Inman, it is my pleasure to
extend this invitation to you to speak at the LBJ Library on
May 26.
The format we propose is a presentation at 6:00 P.M., followed
by a reception. If you are willing, we would then like to cap
the evening with a small dinner party in the Library.
We will, of course, cover your expenses and try to make your
time here interesting.
If you are receptive to this invitation, I will be delighted
to work out the details with any member of your staff.
,Sincerely yours,
Harry J. Middleton
Director
DCr ,
EXEC
REG
A Presidential Library Administered by the National Archives and Records Administration 0
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