WEEKLY SUMMARY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00927A004600080001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 31
• Document Creation Date: December 21, 2016
• Document Release Date: February 26, 2008
• Sequence Number: 1
• Publication Date: October 9, 1964
• Content Type: SUMMARY

WEEKLY SUMMARY
CENTRAL INTELLIGENCE AGENCY
OFFICE OF CURRENT INTELLIGENCE
State Dept. review completed
ARCHIVAL RECORD
PLEASE RETURN TO
AGENCY ARCHIVES,
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(Information as of 1200 EDT, 8 October 1964)
F-age
INTERNAL DEVELOPMENTS IN THE SOVIET ECONOMY
With agriculture in good shape this year, Soviet econo-
mists have turned their attention to the debate on
economic liberalism, and the question of consumer
welfare.
SOVIET-INDONESIAN NEGOTIATIONS IN MOSCOW
Moscow publicly endorsed Sukarno's policies and agreed
in principle to supply additional arms. It seems likely,
however, that the Indonesians also received private
warnings not to risk even limited British military re-
taliation.
SOUTH VIETNAMESE POLITICAL SITUATION STILL FRAGILE
Premier Khanh is taking a tougher stand to head off
new labor agitation, but there are signs of new
political problems.
AREA NOTE
On Syria
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ASIA-AFRICA (continued)
NONALIGNED CONFERENCE UNDER WAY
The dispute over Congo Premier Tshomb6's attendance
may be followed by other moves which will raise diffi-
culties for the West.
THE CYPRUS SITUATION
Turkish Cypriot leaders have still not agreed to ar-
rangements for opening the Nicosia-Kyrenia road, and
this issue prevents settlement of the problem of ro-
tating the Turkish garrison on the island.
PEIPING SCORES AGAIN IN AFRICA
Communist China's campaign for wider recognition is
making headway among moderate leaders of the former
French dependencies, who have previously given Taipei
crucially important diplomatic support.
AREA NOTE
On Southern Rhodesia
LEOPOLDVILLE'S MILITARY POSITION IMPROVES
Congo Government forces have fared better this week
than their Premier. Tshombd went to Cairo to attend
the nonaligned conference but is now being held there
as "hostage" for the Egyptian and Algerian embassies
in Leopoldville.
UNITED KINGDOM ELECTIONS
The public opinion polls show the Tories and Labor so
close that the elections will probably be decided in
the marginal constituencies. Despite a comeback by
the Tories since early this year, Labor still appears
to have the edge.
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EUROPE (continued) Page
POLITICAL SITUATION IN ITALY
The Christian Democratic National Council's support
for the center-left coalition and its program has
minimized the threat of an immediate government crisis
but unresolved factional differences in that party
have strained relations within the coalition.
LABOR PROBLEMS IN BRAZIL
The government's slow progress in achieving an equita-
ble balance between wages and the cost of living is
causing increased dissatisfaction within organized labor
and permitting a resurgence of Communist influence.
AREA NOTES
On Guatemala
ECUADOR JUNTA LOSES SOME PRESTIGE AND AUTHORITY
The junta's concessions to Guayaquil demonstrators
protesting tax reforms has cost the government pres-
tige and somewhat undermined its ability to carry out
needed reforms.
AREA NOTES
On Dominican Republic and on Bolivia
15
THE ISSUE OF CHINESE REPRESENTATION IN THE UN 21
A resolution to give Nationalist China's seat in the
UN to Communist China may be supported by a simple
majority during the General Assembly session open-
ing 10 November.
PROSPECTS FOR APPLICATION OF ARTICLE 19 RECEIVE SETBACK 22
India's public support of the Soviet and French positions
that peacekeeping costs are not binding on member states
which are unwilling to pay will make it far more dif-
ficult to line up Afro-Asian support for application of
Article 19.
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INTERNAL DEVELOPMENTS IN THE SOVIET ECONOMY
The Soviet economic scene
is presently characterized by a.
good year in agriculture and by
the reopening of the debate on
economic liberalism begun two
years ago. In November the cen-
tral committee is to discuss
longer range measures to improve
agriculture. Reports of a re-
cent Khrushchev speech to top
economic and political officials
indicate that he called for
greater attention to the con-
sumer but added that other eco-
nomic-sectors would not be ne-
glected.
Khrushchev has singled out
improvement of the standard of
living as the "main task" in the
further development of the econ-
omy. He also stressed the lead-
ership's concern with agricul-
ture and chemicals as well as
with defense and other indus-
tries not directly related to
the consumer. While the offi-
cial summary of his speech--a.ll
that is yet available--empha-
sizes the consumer goods indus-
tries, it does not indicate rel-
ative priorities for the vari-
ous economic sectors. His past
promises to the consumer have
not been fulfilled.
Khrushchev failed to specify
the timetable for improving the
lot of the consumer. His sugges-
tion that it would be "expEdi-
ent" to plan development for a
"more lengthy period" than the
present long-term plans indicates
that important shifts of resources
will not take place immediately.
In addition, his expression of
confidence that the various eco-
nomic organizations "will reveal
fresh reserves" in order to meet
post-1965 plan goals implies a
continuation of tautness in the
Soviet economy.
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Since mid-August, the press
has been allowed to carry arti-
cles on ways to improve indus-
trial management and organization.
This debate has been associated
with the name of Liberman, who
proposed in 1962 that plant
"profitability" be substituted
for much of the detailed central
regulation now exercised by the
planning authorities. Most of
the present contributions re-
iterate Liberman's approach by
emphasizing that efficiency,
quality, and meaningful incen-
tives cannot be achieved unless
control is decentralized. They
add, however, that if profit-
ability is to be a workable suc-
cess criterion, prices must re-
flect full costs of production.
Most of the articles stress the
problems involved in meshing
such a system into the Soviet
context.
Official reservations about
these recommendations have been
expressed by the Finance Minis-
try, and the chief critic of the
liberalism approach has been
Chairman of the Economic Council
of the RSFSR Afanasyev. He con-
fined his suggestions, however,
to traditional admonitions to
work better within the present
system, and he allows for some
possible reorganization. This
administrative approach avoids
the profit and price questions,
but Afanasyev does not explicit-
ly reject that line of attack.
In the most recent contribution
to the debate, Liberman has advo-
cated a high-level permanent
commission to consider the vari-
ous suggestions and submit pro-
posals for legislation.
Two recent decrees demon-
strate that the regime continues
to search for economic incert-
tives within the framework of
the present system. The first
decree seeks to increase the
motivations for introducing new
technology by raising the bonuses
paid to the workers' funds of a
plant, according to a percentage
scale. This, however, is baLi-
ca lly an extension of current
practice and is not likely to
produce much improvement. The
other decree establishes a bonus
plan for railroad workers and
grain handlers to speed the
transfer of grain to storage
points and distribution centers.
The omission of sailors and long-
shoremen from this program ig-
nores the problems entailed in
coordinating grain shipments
that are jointly transported by
railroads and waterways.
As of 1 October about 95
percent of the harvest of small
grains and legumes had been com-
pleted. Despite certain weather
problems in parts of the New
Lands, over-all prospects'point
to a total harvest of 120 to
125 million tons of grain, the
best since the record year of
1958, when an estimated 125
million tons were harvested.
The Soviet population, however,
has increased by about 21 million
since that time. State procure-
ments of grain have already ex-
ceeded the previous record 57
million tons bought in 1958 and
1962. Given the need to replen-
ish stocks held in state reserves,
the state procurement plan of 67
million tons may possibly be
fulfilled.
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Although the improved agri-
cultural outlook should reduce
the drain on its gold stock,
the USSR still appears concerned
with its depleted reserves.
To encourage the sale of
privately held gold jewelry to
the state, and possibly to dis-
courage its illegal export, the
government has sharply increased
the price it will pay for gold
bought from the population.
on 5 September providing "cr
investiment of some $400 r,i llion
in egg and poultry factor-es
by 1970. Other costs involved
in this program will raise= the
total to about $3 billion An
intriguing aspect of this Pro-
gram is the designation o.1' the
State Committee for Aviation
Technology as the only naional
industrial committee charted
with organizing the produ,-rtion
of machines and equipment for 25X1
the poultry industry.
There is no evidence that the
industry price will be raised.
Collections from the popu-
lation and increased production
should improve the USSR's gold
position marginally.
Khrushchev's program this
year for "intensifying" agricul-
ture was underscored by a decree
Responsibility for r4crgan-
izing the "industrial" prc,duc-
tion of eggs and poultry was
one of the duties assignee the
high-level commission established
under party presidium member
Podgorny last April. Thi com-
mission is also charged with
working out the "industri