CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A002900050001-7
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September 29, 1960
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SUMMARY
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Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 ONF1DEN TIAL INTELLIGENCE WEEKLY SUMMARY CURRENT COPY NO V- OC I NO. 4446/60 29 September 1960 Document me. / Review of this doeument by CIA has determined that 0, CIA bps y1, oh)e ion 1 at I TS 0 froontains nofbiig of CIA Interest Daft Reviewer ,.~_.._ 14 MAY 1980 CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE State Dept. review completed DIA review(s) completed. 25)25X1 25X1 ~/'~ Cz.+` 4PPU"I!AL 14 MAY T980 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 CURRENT INTELLIGENCE WEEKLY SUMMARY r 29 September 1960 T H E W E E K I N B R I E F OF IMMEDIATE INTEREST KHRUSHCHEV AND THE UNITED NATIONS GENERAL ASSEMBLY . . . . Page 1. The performance of Khrushchev and his bloc colleagues at the UN indicates that they view this session of the General Assembly primarily as a contest with the West for gaining influence among the uncommitted nations of Asia and Africa. The weight of these nations in the UN has been increased by the admission of 16 new members, and probably one more will be admitted in the near future. Khrushchev has shown concern that the adverse re- action to his bid to revamp the UN secretariat may jeopardize his efforts to gain Afro-Asian support. He has moved to counter this reaction by linking his UN reorganization plan with the popular issue of dis- armament. He has also called for extensive revisions in the UN Charter in order to reflect changes in the world balance of forces since 1945. Khrushchev?s extreme anti-Western tone probably is calculated to strengthen his hand Also in dealing with the Sino- Soviet dispute, The West retains control of the powerful 21- member Steering Committee, which voted to continue the moratorium on Chinese representation; the full assembly will vote on this issue later robably early in October, CUBA AND THE CARIBBEAN o , o , , a , c a a o o e o 0 a s e Page 7 Fidel Castro?s UN address demonstrated the degree to which Cuba has become committed to Soviet foreign policy objectives. He particularly emphasized the Guantanamo base issue, probably foreshadowing some Cuban demand for the withdrawal of US forces. In the Dominican Republic,Trujillo has no yet indicated when,he will bow to "popular de- mand" th t h a a o o a o s o 0 0 0 o e o Page 9 Colonel Mobutu's commission of technicians, an- nounced last week as the operating executive of the Congo, is now functioning, but he appears to be under increasing pressure to effect a reconciliation CONFIDENTIAL ' i THE WEEK IN BRIEF Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 a e resume the presidency. REPUBLIC OF THE CONGO Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 29 September 1960 challenge. p CONFIDENTIAL. PART I (continued) between President Kasavubu and ousted premier Lumumba. Mobutu has not gained any significant new support and still faces the determined opposition of the represent- stives:t of several African states who are working continuously on behalf of Lumumba, A round-table conference of Congolepe'pbliticA1 leaders expected to convene in Leopoldville around 1 October, at which time pro-Lumumba forces ay present,.:a-!sOrious Forces loyal to General Phoumi's Savannakhet Revolutionary Committee have abandoned Sam Neua.town in northeastern Laos in the face of heavy pressure from Pathet Lao guerrilla units. Elements of Captain Kong Le's paratroopers are also reported to have been dropped in the Sam Neua area prior to the withdrawal and may have combined forces with the guerrillas for the final takeover. Phoumi also has suffered a reverse in Xieng Khouang Province, *hsre the provincial military commander has declared himself in support of Souvanna. Simultaneously with these developments, military commanders from the opposing Souvanna and Phoumi camps agreed in Luang Prabang to a cease-fire pend- ing a full-dress conference to be held shortly to work out a political compromise between the two groups, There is a distinct possibility, however, that the loss of face suffered by Phoumi through his recent reverses may dissipate arly.dis osition to- ward compromise he might have had. NOTES AND COMMENTS EAST GERMANS CONTINUE PRESSURE ON BERLIN , . . Page 11 . Page 1 The Ulbricht regime has taken further steps to assert its claims of sovereignty over the Soviet sec- tor of Berlin and the right to control Western.civil- ian access to the city. Without giving unlimited support to East Germany, Moscow's note of 26 Septem- ber in response to the Western protests of 12 Sep- tember strongly backed East Germany's claims to con- trol over West German traffic to the city, reiterated charges that the Western powers have misused the air corridors, and endorsed East German moves to restrict CONFIDENTIAL THE WEEK IN BRIEF Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 PART II (continued) access to East Berlin, Bonn is now implementing a f li i m ted countermeasures against the East German e OUTLOOK FOR MALI AND SENEGAL e . , o , With the recent dissolution of the Soudan-Senegal federation and transformation of Soudan Into the Re- public of Mali, Soudanese leaders have declared void the accords between France and the dissolved federation. They appear willing, however, to consider some new ties with Paris, most likely in the economic sphere. At the same time, they have proclaimed their Inten- tion to accept help from "all sources" and have made overtures to the United States and Soviet bloc coun- tries. The Soudanese evidently plan to work for the eventual overthrow of the present Senegalese leaders NIGERIA BECOMES INDEPENDENT a o a o 0 0 0 0 o v o 0 0. Independence on 1 October for the British-created Federation of Nigeria--whose 35,000,000 people make it Africa's most populous country--will mark the emergence of a state which may eventually exert a decisive influence on African political alignments. Difficulties arise from the fact that the country's political equilibrium is threatened by rivalries among its three tribally based major political group- ings. In foreign affairs, the new state, while preserving close ties with the West, can be expected to assert its independence, and assume an increasingly active part in the pan-African movement, POLITICAL TURMOIL !'IN UGANDA. The renewed drive of the traditional rulers of Buganda-'!,!key region of Britain's East African pro- tectorate of Uganda--to assure their political future is creating a major new colonial crisis for Britain. London's efforts to push constitutional reform to enable the protectorate to achieve early iii .Page 4 Page 6 Page 8 THE WEEK T1 RRTRZ' Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 PART II (continued) independence as a unified state may bog down unless Buganda can be induced to participate in the central protectorate government. Hammarskjold is attempting to mitigate the Jordan- UAR crisis through private talks with King Husayn and Nasir. He hopes to dissuade the King from,taking his complaints before the UN General Assembi Page 9 The Libyan Gov- ernment is under fire on the issue of corruption among high-level officials, and King Idris is ex- pected to undertake a major shake-up of the cabinet. NEHRU-AYUB MEETINGS IMPROVE INDO-PAKISTANI RELATIONS Page 11 Nehru?s five-day visit with President Ayub of Pakistan in connection with the signing of the Indus Waters Agreement appears to have established a per- sonal rapport which will promote closer relations between the two countries. While the momentum now attained may lead to the solution of some other problems, neither Nehru nor Ayub appears ready to 25X1 make the compromises necessary to begin bargaining on the Kashmir dispute. TRIBAL UNREST ALONG THE AFGHAN-PAKISTANI BORDER Tension is mounting along the Afghan-Pakistani frontier Following the outbreak of fighting among Pushtoon tribes living along the border north of the Khyber Pass, The danger of clashes between Afghan and Pakistani army units will increase as each side takes measures to support its tribal partisans. Both countries have shown considerable concern that the other will go too far and cause the con- flict to spread. Prime Minister Chang Myon?s principal rival in the Democratic party has decided to organize a new conservative opposition party. Although Chang feels that a clear-cut break of this kind will ultimately SECRET iv Y a , Page 13 4 o Page 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 PART II (continued) strengthen his own position, his government will be temporarily weakened by this development and by ad- ministrative inefficiencies which will probably re- sult from the current purge of bureaucrats of the Rhee regime. Meanwhile, there is growing popular pressure for negotiation of a status-of-forces agree- ment with the United States? SPAAK?S WORRIES ABOUT NATO 0 0 0 0 0 0 e v o o NATO Secretary General Spaak, who visits Washington. from 2 to 4 October, is primarily concerned with dis- cussing the difficulties posed by De Gaulle's national- ist attitude. Limited progress on the question of an integrated air defense plan was achieved on 28 Septem- ber when the North Atlantic Council approved a system covering a small part of France. Paris still objects to the ro o d NA p p se TO medium-range ballistic missile program. Spaak feels the Congo crisis has exposed the weakness of NATO consultation procedures, and he seeks, in a recently initiated study of NATO's long- term pro ems, a means of strengthening them. Page 14 FINNISH POLITICAL PROBLEMS The most difficult issues facing the recently reconvened Finnish parliament are the question of Finland's association with the European Free Trade Association (EFTA) and the related problem of broaden- ing the Agrarian minority government. Immediately in prospect are economic negotiations with the So- viet Union which the Finns believe must be satis- factorily concluded before steps can be taken to affiliate with EFTA. Domestic issues such as new farm-income legislation may contribute to pres- sures for a new general election. SECRET THE WEEK TN RRT1't' Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Page 16 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 JGI.L[G ! Now CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 PATTERNS AND PERSPECTIVES MONGOLIA IN BLOC AND WORLD AFFAIRS . . . . . . . . . . . Page 7 Although Mongolia is the oldest Soviet satellite and historically one of the most obedient, there is a strong undercurrent of nationalism, and many Mongolians probably view economic ties with Peiping as a hedge against total Soviet domination. Mongolia tried in July to adopt a neutral position in the Sino-Soviet dispute and, although it now has taken Moscow's side, the attempt testifies to Peiping's prestige in Ulan Bator. In furtherance of its effort to acquire at- tributes of sovereignty, Mongolia has sought to ex- pand contacts with non-Communist countries, par- ticularly in Asia and Africa. In addition to the bloc nations, India, Burma, Indonesia, and Guinea now recognize Mongolia. RECENT DEVELOPMENTS IN MIDDLE EAST OIL , . In setting up the new Organization of Petroleum Exporting Countries (OPEC), Saudi oil boss.Abdullah Tariki and Juan Perez Alfonzo, Venezuela's minister of mines and hydrocarbons, hope to put into effect an oil policy concerted among the governments of the world's major net oil-exporting countries. They envisage a system for sharing markets, fixing prices, and controlling production. Although the OPEC's prospects for full realization of the plan are poor, the existence of the organization constitutes a threat Which may make the international oil com- panies more cautious in their planning for the future. SECRET . Page 11 THE WEEK IN BRIEF Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 vow 29 September 1960 PART III (continued) SEARCH FOR NEW POLITICAL ALIGNMENTS IN ITALY . . . . . . Under Italy's present political truce, Premier Fanfani's minority government--made up entirely of Christian Democrats--has the parliamentary support of three small divergent center parties. New political alignments continue to be the main preoccupation of all groups. The local elections on 6 November will throw light on the alliances to be formed there- after by the Christian Democrats for control of im- portant city governments. Whether a broader base for the national government can be formed, however, will probably not be clear before the Nenni Socialists hold their party's postelection congress. SECRET vii THE WEEK IN BRIEF Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Page 15 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 OF IMMEDIATE INTEREST KHRUSHCHEV AND THE UNITED The speeches and behavior of Khrushchev and his bloc col- leagues at the UN indicate that their principal objective is to gain, influence axnohg, the umcnanitutt-d nations of Asia and Africa. Khrushchev's strategy probably is based on his belief that the admission of 16 new member states--15 of them from Africa-- will hasten what he views as a shift in the balance of forces in the UN away from Western predominance and that this proc- ess- will make the General As- sembly an increasingly favorable arena for advancing Soviet aims. Bloc tactics are aimed at exploiting those issues that provide opportunities to demon- strate a community of interest between these new nations and the Communist world. Khrushchev has decided to make anticoloi+- aia1i m the central theme of the bloc's case at this session. His harsh indictment of United States policy, based mainly on the U-2 and RB-47 incidents, and his renewed advocacy of "general and complete disarma- ment" are designed to buttress the anticolonial line in this all-out bid for the allegiance of the uncommitted nations. Foreign Minister Gromyko set the theme in welcoming the new member states on the open- ing day when he contrasted the USSR's readiness to provide "selfless assistance and sup- port" with thdr~gllegdd,;grudging attitude of the Western powers, which he claimed regard the new African nations as "unripe" and "Adolescent". .countries . While the West "sighs" over NATIONS GENERAL ASSEMBLY their admission, said Gromyko, the Soviet Union is "'truly joyful.,, Khrushchev developed this theme in his speech on 23 Sep- tember when he announced at the outset that "one of the chief features of this epoch and its very essence is...the awakening of the erstwhile back- ward, downtrodden, and oppressed peoples." He welcomed the new member states, saying,"The coun- tries that have cast off the burden of colonialism are a huge and active peace force," Appeals to Uncommitted Nations In addition to his effort to discredit the West, particu-- lar.y ;the United States, in the eyes of the Afro-Asian nations, Khrushchev chose four "positive" issues as his platform for win- ning Asian-African support and sympathy for Soviet positions. He devoted the bulk of his speech to a vigorous arraign- ment of the "colonial regime" in all its forms, climaxing it by the introduction of a declara- tion calling for immediate in- dependence for all colonies, trusteeship territories, and "possessions and leases on for- eign soil." Second, he called for the participation of neutral na- tions in the next round of dis- armament negotiations. Third, he attacked the role of the Western powers and Secre- tary General Hammarskjold in the Congo crisis, ; 'demadded, -that Euro- pean. coiatingents be .withdrawn SECRET PART I OF IMMF,DTAP ` TATmt'nvom Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 ,"me 'WOW SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 from the UN force in the Congo, leaving only Afro-Asian troops, and reiterated the USSR's in- sistence that the UN must sup- port only Lumumba as the "pre- mier of the lawful Congolese Government." Finally, he proposed that the UN secretary general's of- fice be replaced by a three-man "collective executive body" composed of representatives of the West, the Communist bloc, and neutral nations. Bid to Revamp UN Machinery Khrushchev probably had three main objectives in mind in making this final proposal: (1) to win favor with the Afro- Asian bloc by proposing that the'neutral nations be given a position of equality with the West and the Communist bloc on the UN's top administrative body,; (2) to express the USSR's ex treme displeasure with Hammar- skjold's handling of the Congo situation, inhibit his future freedom of action in the Congo, and reduce the effectiveness of future UN operations of this type; and (3) to stake out a bloc claim to a larger role in the UN which Moscow insists would more accurately reflect the "actual situation that ob- tains in the world today." The Soviet leaders have long been dissatisfied with the UN Secretariat's personnel set- up and procedures; they feel the Western powers, particularly the United States, have a predomi-' nant voice and unfair advantage in the UN administration. It is unlikely that the USSR, had? any serious expec- tation of gaining early accep- tance of this reorganization plan or that it intends to i.press it to a vote in the Gen- eral Assembly. This proposal, instead, was conceived primarily as the opening move in a long- term effort to bring about chang- es in UN personnel and policies more favorable to bloc interests. Khrushchev's suggestion that the time has come to consider the removal of the UN headquar ,teas to another country to "fa- cilitate the effective work" of the organization similarly was designed, not as a serious propo- sal, but as a means of assert- ing the USSR's dissatisfaction with present arrangements and a desire for changes that would reflect the bloc's enhanced power and prestige in the world. Adverse Reaction The Russians seem to have been caught by surprise by the uproar that greeted Khrushchev's attack on Hammarskjold and his reorganization plan. They ap- parently failed to appreciate that these moves would permit the West to counter with charges that the USSR is seeking to wreck the UN. Moscow radio has complained that "cold war ad- herents" have seized on Khru- shchev's proposal to distract attention from the "more im- portant questions" facing the General Assembly. Khrushchev's subsequent moves reflected his concern that this adverse reaction threatened to overshadow and jeopardize his primary objective of winning support and sympathy among the Asian-African states by exploit- ing the anticolonialist line. Having failed to gain signifi- cant Asian-African support for his attack on Hammarskjold,Khru- shchev shifted to the disarmament SECRET PART I OF IMMEDIATE INTEREST Page 2 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 AJL Vf \L i CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 issue to justify his proposed reforms. He told newsmen on 24 September that unless his proposal is adopted, "we will be unable to solve the disarma- ment question" because it would be impossible to have an inter- national armed force, created in accordance with a disarma- ment treaty, under the command of Hammarskjold. Khrushchev insisted that he was not attacking the secre- tary general personally and that the USSR was seeking only "better organizational forms" to assure "true peaceful coex- istence" and impartiality that would protect the interests of all nations. Soviet diplomats in New York stressed to newsmen that Khrushchev had made, "no formal proposals" and that his UN plan was merely a "suggestion." On 25 September, Khrushchev assured correspondents that even if'his proposal is not accepted, the USSR has no intention of withdrawing from the UN or boy- cotting future disarmament nego- tiations. Two days later, he moved to broaden his position by coming out for a revision of the entire UN Charter to bring it into line with changes that have occurred since 1945. He com- plained that when the UN was created, it was dominated by the United States, which wants to continue to dominate it. "This cannot go on," he said. He an- nounced that the USSR would con- tinue to fight for his proposal and predicted that the time would come when "everybody will accept that point of view." Sino-Soviet Problem It is likely that Khru- shchev's preoccupation with.the dispute with Peiping played an important part in his decision to make anticolonialism the keystone of his UN position. His great emphasis on this is- sue seems at least partly cal- culated to strengthen his hand in dealing with the Sino-Soviet dispute, in which the question of the correct policy to be pur- sued toward the uncommitted na- tions has figured prominently. Khrushchev may believe that his drive to reassert unquestioned Soviet ideological and political leadership of the bloc would be best advanced by portraying the USSR as the fervent champion of the "ant i;-9.mperialist forces." In this respect, his per- formance at the UN, strongly backed by the array of Eastern European satellite party leaders, can be viewed as part of Khru- shchev's sustained campaign to bring pressure on the Chinese leaders by demonstrating their isolation within the 'bloc. F party leaders rather than govern- ment chiefs had accompanied Khru- shchev because there were "others" than the Western powers whom "we wished to impress with our solidarity'." Khrushchev's statement following his two- hour meeting with Tito on 28 September that "we have fully come to terms" and that "our viewpoints coincide or are very close" seems to have been a calculated gesture of contempt for the Chinese leaders, who have long directed their most abusive=..attacks against the Yugoslav regime. These demon- strative gestures toward Tito are another means of serving notice on the Chinese that Khru- shchev has no intention of making any concessions to Pei- ping's views. SECRET PART I OF IMMEDIATE INTEREST Page 3 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Sino-Soviet Treatment of Speech The great importance that Soviet leaders attach to Khru- shchev's UN performance is re- flected in the unprecedented. publicity Moscow has given his speech. Some 400 Moscow radio items covering the speech in the three days after it was de- livered add up to more than twice the publicity given his UN speech last year and greater attention than Moscow has ever paid any previous Khrushebev speech. Most commentaries focus on his proposals for disarmament and liquidating colonialism. Com- paratively little attention has been given his plan to revamp UN machinery and his suggestion about moving UN headquarters. Peiping, alone among bloc countries, has go far made no, comment on the speech. The New China News Agency issued a 1,600- word summary of the speech on 24 September. The summary, which included all df Khru-- shchev's major points but con- tained no editorial comment,. was reprinted in the Chinese press and broadcast in greatly short- efied form J. domestic and foreign- language news programs, President'Eisenhowei''s Speech In unusual but not unpre- cedented coverage, Izvestia published the full text of President Eisenhower's speech. Moscow commentators disparaged it as "colorless," "mere soph- istry," "disappointing," and "nothing new." Moscow's most favorable comment was that "many people" noted the "entire- ly quiet and restrained tone" of the speech, but this observa- tion appeared only in a talk to foreign audiences and was de- leted from a home service version of the same commentary. Peiping reported briefly on 23 September that the President gave "a long speech" and followed up later in the day with"a heav- ily slanted 1,200-word account-- twice as long as the TASS ini- tial account but much more de- nunciatory. 1isenhower-Khrushchev Meeting Soviet officials in New York are apparently encouraging Western press speculation that Khrushchev would favor a meet- ing with President Eisenhower. The Soviet premier, while con- sistently evasive in dealing with journalists' questions on a meeting, has attempted to convey the general impression that he would be receptive to a US initiative, Moscow's account of UAR President Nasir's address includes his call for a Khru- shchev-Eisenhower meeting and nQtes that Khrushchev was one of the first to rise to acclaim the speech. In an interview with an Austrian paper, Khru- shchev took the position that he was still the "insulted party" and could not take the "first step," but implied that if a third party offered to "mediate," his response would be favorable. Other East-West Issues Khrushchev's UN speech revealed no major changes in Soviet positions on outstanding issues. His proposal for gen- eral and complete disarmament in three. phases over a four- year period is identical with the Soviet plan of 2 June 1960, with.the exception that a re- duction of conventional forces was moved from the second to the first stage, in order "to take into account the wishes of the Western powers." Khrushchev called for the expansion of future negotiations to include SECRET PART I OF IMMEDIATE INTEREST Page 4 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RD P79-00927A002900050001-7 ,~I UKI I lvnw CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 neutral states. The accompany- ing disarmament statement said "all basic areas of the world" should be represented, but it, in effect, ruled out Chinese participation by linking Pei- ping's participation in dis- armament talks with its admis- sion to the UN. on Hammarskjold provoked exten- sive resentment in the neutral bloc--as a Nepali delegate put it, Khrushchev made "a lot of enemies" by this move. On the other hand, Soviet disarmament proposals appear to have had their usual appeal to these same neutral members. In a letter to the General Assembly president on 26 Sep- tember, Khrushchev proposed that the assembly increase the num- ber of members of the ten-na- tion disarmament committee by adding India, Indonesia, the UAR, Ghana, and Mexico. Khru- shchev's move disregards the fact that the ten-nation com- mittee resulted from an agree- ment among the big-four foreign ministers in August 1959, not from a decision by the UN. Although the nuclear test ban talks resumed in Geneva on 27 September, Khrushchev did not deal with this problem in his speech. However, he repeated during a press conference on 25 September the standing Soviet position that the USSR will not resume nuclear weapons tests unless other powers do so. On the questions of Germany and Berlin, Khrushchev reaffirmed his post-summit position that the USSR will "wait awhile with the solution of the question of a German peace treaty" and seek agreement with the West at an- other summit conference "in a few months' time." Reaction at the UN Reactions to the major speeches at the UN have in the main followed predictable lines. The reception UN delegates ac- corded the speeches of Khruschev, Castro, and Nkrumah has been generally restrained, but many delegates have privately admit- ted their amazement at their tone and content. The attacks Hammarskjold's Position Hammarskjold's vigorous defense of the office of the secretary general and his in- terpretation of its role in in- ternational situations aroused a warm response. Nehru is re- ported planning to come strongly to Hammarskjold's defense, and other neutral leaders such as Sukarno of Indonesia and Koirala of Nepal will probably follow suit. While continued Soviet bloc attacks will make Hammar- skjold's position exceedingly difficult, it now seems unlikely that Moscow can force his res- ignation. Hammarskjold's Congo policy, although under attack by Ghana, Guinea, and the UAR, has been supported by other African states, particularly the new UN members. Several African delegates have criticized Nkrumah's militant speech to the assembly, and even some members of the Ghanaian UN delegation were re- portedly deeply disappointed by the speech. The Sudanese for- eign minister expressed the hope that the UN members will not be taken in by "African politicians' agitation in support of Lumumba --an obvious reference to Nkrumah ---as he claimed such individuals did not speak for most Africans. High-level Representation So far about 16 heads of nonbloc governments have come to the United States for the UN session in addition to Khrushchev and six European satellite lead- ers. Of the 15 newly admitted SECRET PART I OF IMMEDIATE INTEREST Page 5 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 African states, sev- eral have heads of government in attend- ance or expected, and Prime Minister Balewa of Nigeria is expected after his country's anticipated admission in early October. President Tour6 of Guinea is scheduled to arrive shortly, and the prime minister of Burma may appear later. Committee ChaiFma- nshIPs Despite the un- usual atmosphere President: Frederick Boland, Ireland Vice Presidents: US, UK, USSR, France, China, Japan, Libya, Sudan, Pakistan, Bulgaria, - Venezuela, Panama, Canada Committee Chairmen: First (Political & Security Affairs) Special Political 5eeonId CEconomic & Financial) Third (Social, Humanitarian Corea, Ceylon Augusta, Haiti Stanovik, Yugoslavia & Cultural Mezincescu, Rumania Fourth cTrusteeship~acTiacTii~ aq - FihjAdministrative & Budget) Majoli, Italy ~~- Sixth (Legal) Ortiz Martin, Costa Mica the Steering Committee consists of the thirteen vice presidents, the chairmen of the seven main committees and the president, who created by the presence of many government leaders, the usual work of the assembly is proceeding fairly smoothly. The powerful General (Steering) Committee of this sessionvwas established without incident. Its composition still throws the balance of voting power on the side of the West, particu- larly as related to the crucial issue of Chinese representation. The General Committee determines the inclusion of all items on the assembly's agenda, assigns items to the main committees, and fixes the priority of each item. All decisions of the Genes eral Committee are subject to the approval of the assembly as a whole. The General Com- mittee may not discuss the sub- stance of any item, except inso- far as this bears on inclusion of the item on the agenda. The president of the General Assem- bly chairs the committee and casts the deciding vote if there is a tie decision. The Communist bloc won two committee chairmanships this year, whereas in the past they 29 SEPTEMBER 1960 have usually held only one. Strong Indian opposition within the Afro-Asian caucus to the Philippine candidacy for chair- man of the Third (Social, Human- itarian, and Cultural) Committee threw the election to Mezincescu of Rumania. Stanovik of Yugo- slavia chairs the important Second (Economic) Committee. The Afro-Asian bloc was success- ful in capturing the chairman- ship of the mott important com- mittee of the assembly, the First (Political) Committee, now chaired by Corea of Ceylon. An ardent anti-colonialist--Pachachi of Iraq--chairs the Fourth (Trusteeship) Committee. Chinese Representation The Steering Committee on 27 September upheld the United States by supporting the mora- torium on Chinese representation with a vote of 12 for, 7 against, and one abstention. This prelim- inary victory in the Steering Committee will help the Chinese Nationalists retain their UN seat when the full assembly votes on the committee's recommendation, probably early in October. The general debate will probably con- tinue until mid-October. P SECRET PART 1. OF IMMEDIATE INTEREST Pave 6 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 UL+ti!\V i CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 CUBA AND THE CARIBBEAN Fidel Castro's address be- fore the United Nations General Assembly on 26 September showed the degree to which Cuba has be- come committed to Soviet foreign policy objectives. Reactions among Latin American delegates were generally negative, but delegates of some of the new African states were impressed and struck by Castro's "sincer- ity." A member of the French delegation expressed the opin- ion that Castro's simple language, effective delivery, and unsophisticated concepts were on a level to make a maximum appeal to the "simple" Africans. United States should expect him to provoke a US request for his recall as a pretext for a Cuban demand that Ambassador Bonsai be called home. Castro's particular empha- sis on the issue of Guantanamo follows two public references to the base earlier this month, one by Fidel and the other by Raul Castro, in which an early demand for US withdrawal from the base was intimated. Al- though these statements have emphasized that any "aggres- sive acts" with respect to the base would originate with the United States, the Cubans might attempt to provoke the US into an action that could be used to challenge US treaty rights to the base before an interna- tional tribunal. The American Embassy in Havana, in response to the grow- ing climate of hostility in Cuba, is encouragii6g ;American citizens to leave the island. A former Foreign Ministry offi- cial advised an American Embassy officer on 23 September that in view of the temperament of the new Cuban chargd d'affaires in Washington, Flores Ibarra, the Meanwhile, there is an in- creasing volume of travel to the Sino-Soviet bloc by Cuban students, labor unionists, artists, and others. A number SECRET PART I OF IMMEDIATE INTEREST Page 7 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 196Q of Cuban students have evident- ly received scholarships at bloc educational centers. Two top officials of the Cuban Com- munists' Popular Socialist par- ty left for Moscow early this month. The Cuban Communists con- tinue to strengthen their po- sition. In an evident response to a decision at the party con- gress in August to unite all revolutionary groups into a single front under "the leader- ship of Fidel Castro," Commu- nists are organizing "united fronts" at the local level in many parts of Cuba. These fronts are probably intended to become the bases for provincial, then national, political machines. Although the Castro regime has become increasingly dis- credited elsewhere in Latin America, there still are some politically potent non-Commu- nist leaders in a number of countries ready to defend Cas- tro. SECRET Guerrilla warfare in the mountains of central Cuba con- tinues, and government forces are reported by the Cuban press to have suffered casualties in efforts to dislodge the several hundred guerrillas estimated operating there. Dominican Republic ,The carefully organized "popular" demonstration of loyalty to Trujillo took place as scheduled on 24 September and apparently went off in a routine manner. The dictator has not yet indicated when he will,;bow to "popular demand" that he resume the presidency from puppet President Balaguer, The economic situation con- tinues to grow worse, and unemployment and hunger are becoming more apparent in the capital city. Despite the Soviet ac- tion in early September calling on the UN to en- dorse the OAS condemnation of the Trujillo regime, the Trujillo-controlled Radio Caribe made its most openly pro-Communist broadcast to date on 26 September, when it stated that "for many years the US has been try- ing to blame everything on the USSR, and now it is time to listen to the sound of the Russian bell as well." The radio praised Moscow for "bringing forth" many ,+:!nationalist movements in Africa and Asia, PART I OF IMMEDIATE INTEREST Page 8 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 a.)iii.IlLi CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 REPUBLIC OF THE CONGO Colonel Mobutu continues to speak for the Congo Govern- ment and has put his planned commission of technicians into operation, but he appears to be under increasing pressure by diverse elements to effect a reconciliation between Presi- dent Kasavubu and ousted pre- mier Lumumba. A round-table con- ference of Congo lpsc' pbl;i,tita,i' ieaders, is:,>ekpect9d to convene in Leblkaid#ii:le )arOuhd 1 acbober, at which time pro-Lumumba forces may present a serious challenge to Colonel Mobutu. Mobutu hag not gained any significant new support and still faces the de- termined opposition of the rep- resentatives of several African states who are working contin- ually on behalf of Lumumba Following his coup on 14 September, in which he took over control of the Congo adminis- tration in order to permit po- litical factions to come to an agreement, Mobutu has attempted to set up an effective ap&liti- cal adthinistrative regime. The need for attention to the Congo's collapsing economy was emphasized by the chief of the UN's technical mission on 28 September. He warned that the Congolese leaders were con- centrating on politics and over- looking the "panorama of disas- ter spreading around theme" The UN official charged that the Congolese ministers were dodging their executive responsibilities and that it was almost impossi- ble to arrange UN aid because there were no responsible Con- golese officials around to ac- cept it. Mobutu has not been able to neutralize Lumumba, however, or to build up a firm popular or military base. With the public support of Kasavubu, Mo- butu has recently installed a commission of technicians, headed by Foreign Minister Justin Bomboko. Mobutu has been unable.. ,to prevent, Lumu aba; partisans froii inte.rferin'g.?'with the. eos is- sion,s activity through terrorist tactics. Although he has been able to effect the with- drawai%.of troops from the Katanga frontier, Mobutu's influence over the armed forces is de- pendent on the regularity of pay by the UN Command,; and ele- ments-at Camp Leopold have rioted recently because of dis- satisfaction with their pay. The governor of Leopoldville Province, who is generally re- garded as a I4umumba :supporter, has warned of possible, armed clashes in the capital within a week. Mobutu,.apparently under 'pressure from army officers, is involved in efforts to ar- range a round-table conference of Congolese leaders. His plan appears to have strongest sup- port from adherents of Lumumba, who see In it a way for the premier to regain his previous position, but President Kasavubu and Premier-designate Joseph Ileo have indicated their will- ingness to participate,. How- ever, they have stated that Lumumba will not be permitted to regain power. For his part, Lumumba is unwilling to accept a cabinet position in lieu of the premiership. If a con- ference is held and some type of rapprochement results, Col- onel Mobutu would probably be the principal loser. SECRET :PART I OF IMMEDIATE INTEREST PA q Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Mobutu's effort to arrest two of Lumumba's close ad- visers, Antoine Gizenga and Maurice Mpolo, was frustrat- ed' by the interven- tion of Moroccan of- ficials in, the Congo, despite Gizenga's re- ported assassination attempt against Mo- butu. Mobutu has al- so been prevented from arresting Lu- mumba by the UN pro- tective guard,princi- pally Ghanaians, a- round the premier's residence. Both con- ditions have led Mo- butu to protest to the UN Command. The UN's decision to re- place Ghanaian troops in Leopoldville with Tunisians from Kasai Province was reversed after the personal Atlantic Ocean FEDERATION OF RHODESIA AND NYASALAND appeal of President Nkrumah to Hammarskjold. CONGO REPUBLIC 29 SEPTEMBER 1960 zoo In addition to the problems raised by the efforts of Ghana, Guinea, and the UAR in the Congo, the UN Command also faces diffi- culties with Belgium. Hammar - skjold has officially protested the activities of Belgian offi- cers--disguised as British or French--in Kasai, Province, where they were observed leading se- cessionist troops. The UN of- ficials may face major diffi- culties with Brussels when the role of Belgian military and civilian personnel in Katanga receives greater publicity. The 600 Belgians serving with Katanga's troops and advising in the government departments, in addition to the larger number employed by the mining indus- try, have kept the province functioning economically and ,politically. 1110cl Attitude The USSIR's direct. involve- ment" in the Congo virtually ceased with the closing of the Soviet and Czech embassies in Leopoldville on 17 Sep- tember. Soviet leaders prob- ably feel, however, they may be able to re-establish bloc influence in Leopoldville in the near future. While Mo- butua, forces retain control, however, Moscow is unlikely to try to reassert itself overtly in the Congo. SECRET PART I OF IMMEDIATE INTEREST Page 10 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Khrushchev, in his speech on 23 September before the UN General Assembly and later in answers to newsmen, reaffirmed the USSR's support for Lumumba and reiterated Soviet charges that the UN Command has compli- cated the functioning of the law- ful Congolese Government. Mos- cow's propaganda attention to SITUATION A three-battalion force loyal to General Phoumi's Savan- nakhet Revolutionary Committee on 28 September abandoned the town of Sam Neua, with its air- field, in the face of heavy pressure from Communist Pat.het Lao guerrilla units. Elements of Captain Kong Le.'s Second Paratroop Battalion are also re- ported to have been dropped bear Sam Neua and may have partici- pated in the final takeover of the town. The present status of Phoumi's units is unclear, but just prior to the fall of Sam Neua they had been reported planning to retreat to Muong Peun, about 20 miles southwest of Sam Neua town, Muong Peun is described as being a good defensive position, but re- supply and reinforcement of the position would be difficult be- cause of its relative inacces- sibility by land and because its airstrip is only marginally serviceable. The situation in Sam Neua is unclear, but it is apparently nominally under control`of the Souvanna Phouma government. The internal Congo developments, however, has been scant over the past week. The one or two daily Soviet commentaries have echoed Khrushchev's statements and charges and have accused Mobutu of paying lip service to a reconciliation with Lumumba, while continuing his UN-backed "plottings." Pathet Lao officially supports the Souvanna regime, and its cease-fire order for all regions loyal to Souvanna presumably ap- plies to Sam Neua, now that Phoumi's forces have been routed. Vientiane's control is pre- carious, however, and will be only at the sufferance of the Pathet Lao, at least until the token paratroop force is sub- stantially augmented by rein- forcements from Vientiane. General Amkha, the Vientiane garrison commander, is reported to have flown to Sam Neua, on 29 September to investigate conditions there. On the same day that Sam Neua fell, military commanders from both the Souvanna and the Phoumi camps met with the King in Luang Prabang and agreed to a cease-fire between their op- posing forces and to a "common front" against the Pathet Lao. It is not,clcar what effect Kong Le's action in dropping paratroopers on Sam Neua will have on this arrangement. There are grounds for suspecting that he may have taken the action unilaterally without the approval of Souvanna and General Ouane, SECRET PART I OF IMMEDIATE INTEREST Uaxr'N Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 '1 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 CURRENT INTELLIGENCE WEEKLY iS Ate' 29 September 1960 SAYAB URY NORTH VIETNAM Hanoi ,/ VIENTIANE j the armed forces commander. It was also agreed at Luang Prabang that a full-dress conference would be held "shortly to attempt to iron out the political dif- ferences between the two groups. whole effort toward a new accom- modation between Vientiane and Savannakhet may collapse as the result of the developments in Sam Neua and Xieng Khouang. SECRET GULF OF TONKIN Phoumi has sus- tairied yet another re- versal in the defec- tion of the military commander of Xieng Khouang Province to Souvanna's side. With the loss of Sam Neua, his defection in effect swings the entire Second Military Region over to Vientiane, leaving Phoumi with only the Third and Fourth Military Regions in southern' Laos still loyal to him. Phoumi reportedly has strongly protested Vientiane's action in promoting the Xieng Khouang com- mander's defection. Under the politi- cal settlement that was apparently shaping up as the result of the initial confronta- tion between the two, sides in Luang Prabang, Souvanna would resign as premier but would be retained in a new "government of na- tional unity." There is considerable danger, however, that the Pakse PART I OF IMMEDIATE INTEREST Page 12 of 12 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 "Will SECRET . CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 NOTES AND COMMENTS EAST GERMANS CONTINUE East Germany continues to seek tacit acknowledgment of its "sovereignty" over East Berlin and to exercise its alleged rights to control travel to the city. A new and potentially seri- ous challenge to Western rights has been the attempt to force Western diplo- mats to secure per- mits before visiting the Soviet sector of Berlin, as has been the case for visits to East Germany. The East Germans are claiming that US Am- bassador Dowling ac- knowledged the re- gime's authority dur- ing his visit to the Soviet sector on 22 September by showing his identification documents to East Ger- man police. The East German news agency formally denied a Western press report that a Soviet Embassy spokesman had said personnel of the three Western powers would be excepted from the permit requirement to visit East Berlin; this leaves open the possibility that the regime will attempt to bar such personnel. to control West German traffic to Berlin. Taking the same line the Soviet commandant took in his answer to the three Western commandants, the note reiterates the charge that the Western powers have misused the air corridors. By asserting COMG i 1MUN/CATIQN ROUTES BETWEEN = Kassel o REPUBLIC fe WEST GERMANY AND BERLIN -o Canal Air Corridor, Control Points for Allied Traffic: A Soviet Alw AlVed Interzonal Border Crossing Points: s East r, ,ws that Western rights in the cor- ridors are limited to the sup- ply of Berlin garrisons, the note leaves the door open for continued harassment or even Soviet withdrawal from the four- power Berlin Air Safety Center. Without'giving unlimited ;,support to East Germany, Mos- cow's note of 26 September, an- swering the protest of the three powers against the partial block- ade of Berlin from 21 August to 4 September, strongly backs the East German claim to the right The refusal of the Soviet commandant in Berlin to accept SECRET S BE ETRLIN PART I I NOTES ANn rnvm vTC n-,-- 1 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 the US commandant's protest concerning East German police action against Ambassador Dowling suggests that Moscow may be prepared to back East German efforts to gain at least de facto acknowledgment of the regime's authority in East Berlin over Western as well as West German representa- tives. The East Germans have un- dertaken minor harassment of Western and West German traffic to the city in an effort to probe for weak spots in the Western position. On 22 Sep- tember, a US Army truck was detained by East German police at the Soviet checkpoint out- side West Berlin on charges the driver had violated traffic regulations. Soviet authorities At the checkpoint backed the East German police. Subsequently the Soviet com- mandant in Berlin refused to take any action against the East Germans, stating that he could take measures only in so far as Soviet officers and troops were involved but not in cases involving East German repr esent~ht Ives. The East Germans are intro- ducing without adequate notice new requirements for documenta- tion of truck traffic entering East Germany. Six West German trucks an route to West Berlin to be turned over to the French garrison were held up at the Marienborn checkpoint from 17 to 19 September and their drivers fined because their papers did not show the end user. This has not previously been a requirement. SECRET American officials note that fines on West German truck traffic have been steadily ris- ing in recent months, with the to- tal. for August approximately five times that of May. The East Germans have also legis- lated new requirements for doc- umentation of agricultural prod- ucts in transit through East Germany, requiring special cer- tification for absence of plant diseases. American officials believe these regulations might be invoked as a legal basis for interfering with grain and potato shipments to West Berlin. There has been no repeti- tion of Soviet fighters flying close to Western commercial air- craft in the Berlin corridors, as happened two weeks ago. Bonn is now implementing a few limited countermeasures against the East German economy, including withholding new per- mits for deliveries of West German goods under the 1960 in- terzonal trade agreement. Bonn, tfioreover , is 'not ~ implement ing the 1961 in tat zonal aareeder , which was signed in August. West German officials are also taking a somewhat more optimistic view concerning the effects on the East 25X1 German economy of a selec- tive embargo on irs and steel shipments. PART IT NOTES AND COMMENTS Page 2 of .17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 lemp" SECRET 29 September 1960 OUTLOOK FOR MALI AND SENEGAL Soudan's decision on 22 September to acknowledge the dissolution of its federation with Senegal and to transform Soudan into the Republic of Mali has cleared the way for the two states to establish in- dependently their orientation in the international community. With this decision, the Souda- nese abandoned their efforts to sustain the legal fiction that the Mali Federation still ex- isted despite Senegal's seces- sion on 20 August. The deci- sion, apparently prompted by the UN General Assembly's post- ponement on 20 September of ac- tion on the disrupted federa- tion,'s pending application for UN membership, led to the speedy admission this week of both Sou- dan--as Mali--and Senegal. While Senegal's continued close collaboration with France and the West seems assured for the present, the question of neutralist-inclined Mali's or- ientation has become more ur- gent. Maintaining that France's recognition of Senegal earlier this month invalidated the co- operation accords negotiated last winter between France and the Mali Federation, the Sou- danese have declared the new Mali Republic "free of all po- litical obligations and ties toward France." This position suggests that President Modibo Keita may soon lead Mali out of the French Com- munity and demand the evacuation of the four bases and approxi- mately 4,400 troops which France maintains there under the old accords and regards as important to the containment of the Al- gerian rebellion. Keita reported- ly stated earlier this month that recognition of Senegal by France would lead to an all-out effort--including a resort to the UN if necessary--to force the eviction of the French troops. On the other hand, Mali's essentially moderate reaction so far apparently reflects a will- ingness to consider possible new arrangements with Paris, at least in the economic sphere. In a statement on 22 September, Keita placed his country in the same category as Ivory Coast, Upper Volta, Niger, and Dahomey. These four West African states were permitted in August to be- come independent within the French Community without first negotiating cooperation accords with France, as the Mali Federa- tion had done; following their recent admission to the UN they announced their readiness to conclude such agreements. Keita had earlier indicated to special American representative SECRET PART II NOTES AND COMMENTS Page 4 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Yost in Bamako that, while co- operation with France would be more limited in the future, it would not cease entirely. Mali apparently plans to remain, at least for the present, within the French franc zone. France, mindful of the con- sequences of its abrupt with- drawal from Guinea in 1958, appears to be taking a cautious follow up Foccart's initial con- tacts with Mali leaders. France's attitude would al- most certainly harden, however, if Mali should openly recognize and attempt to aid the Algerian rebel government. that Paris may yet resort to extreme 25X1 measures in. an effort to retain control of its bases in the area. The Soudanese have publicly pro- claimed their inten- MALI (SOUDAN) Bamako (Aii base) tion to accept help from "all sources." Keita's regime sent a special delegation to Moscow and Prague earlier this month-- and flexible approach to the problem with a view to sal- vaging as much as possible of previous ties. A French financial miss on ar- rived in Bamako this week to it discussed possible "economic, cultural, and technical coopera- tion," according to the Czech radio--and is preparing to send to Moscow soon a second mission to be headed by Vice President Kone. At the same time, Keita has asked the United States for mil- itary assistance in the form of trucks and small arms as well as for devel- opment aid. He and other Mali leaders have expressed a strong desire to avoid Guinea's depend- ence on bloc aid. In Africa, contacts have been made both with pro-Western Ivory Coast and with leftist- oriented Guinea, toward which .many Soudanese, especially ex- tremist elements, feel a close SECRET PART II NOTES ANn rnMUVVTe 5 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 affinity. So far, however, Keita has shown no inclination to tie his country closely to either. Keita recently expressed suspicion that Ivory Coast leader Houphouet-Boigny might be acting as an "instrument of French influence," but he also stated that his country did not intend to fall under the "trust- eeship" of Guinea. Keita has also secured a promise of financial support from Ghana's President Nkrumah. In return, the Soudanese leader publicly endorsed Nkrumah's pan-African objectives, which include Algerian independence. Independence on 1 October for the British-created Feder- ation of Nigeria--whose 35,000,- 000 people make it Africa's most populous country--marks the emergence of a state which may in time exert a decisive influ- ence on African political align- ments. With the unifying force of British authority removed, the leaders of its three major political groupings must subor- dinate traditional tribal, re- gional, religious, and cultural differences, as well as personal rivalries, in the interest of preserving national unity. Each of the three largely tribal groupings dominates one of Ni- geria's three regions; unlike most other emerging African states, however, no one of them is yet strong enough to assert its authority over the entire country. Power at the federal level is in the hands of a coalition of the conservative Northern People's Congress (NPC) and the Eastern Region's more radical, neutralist-flavored National Council of Nigeria and the Cam- eroons (NCNC). This government was installed last December after a hotly contested elect1 n in which the NPC won 149 and ttive NCNC--together with an allied' Toward Senegal, however, the Soudanese apparently in- tend to maintain a vindictive policy. Keita has stated that economic ties between the two countries--more vital to Senegal's economy than to Soudan's--would remain severed as long as the present leaders of Senegal retain power. Another Mali official stated on 22 September that his government would do "everything possible" to bring about the downfall of Senegalese President Senghor. party--89 of the 312 seats in the federal House of Representa- tives. Nigeria's third major party--the Western Region's ruling Action Group--took the remaining 74 seats; it consti- tutes the opposition in the present legislature. Abubukar Tafawa Balewa--a well-liked and capable moderate representative of the Moslem north--heads the federal coali- tion. His position ultimately depends, however, on the favor of Nigeria's single most power- ful personality--Ahmadu Bello, the Sardauna of Sokoto and premier of the Northern Region, the largest and most populous of Nigeria's three regions. While the coalition seems secure for the present, there is apparently considerable be- hind-the-scenes maneuvering in- spired largely by the desire of some southern elements to squeeze the northerners out. Any such attempt--blocked so far by the enmity between the two major tribal groups of the south--would arouse a sharp re- action in the north, where the Moslem rulers fear, above all, domination by the more dynamic Christian and animist tribesmen of the South. The appointment SECRET PART II NOTES AND COMMENTS Page 6 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET 29 September 1960 as governor general of Dr. Nnamdi ' Azikiwe--one of Nigeria's first nationalist leaders and the long- time president of the NCNC--has already disturbed many northern leaders. Meanwhile, current dis- orders in the north appear to reflect growing restiveness on the part of some non-Moslem tribesmen over the region's essentially feudal political and social structure. In foreign affairs, the Balewa government, while recog- nizing a basic identity of in- terests with the West and com- mitting Nigeria firmly to the support of the UN as well as active membership in the Common- wealth, has indicated its inten- tion to pursue a policy which takes account of the neutralist and pan-African feelings within the NCNC. Pledged to working for closer ties among African states, the government has al- CaAMI 0U ready announced its intention to call an early conference of West African states and to send a Ni- gerian battalion to join the UN force in the Congo. Nigeria's present top leaders, however ' have made no secret of thir opposi- tion to the pretensions to Af- rican leadership and the "union now" ideas of Ghana's Nkrumah. Balewa apparently intends to delay as long as possible the establishment of diplomatic re- lations with Soviet bloc coun- tries. It seems likely, however, that formal ties will be estab- lished immediately with the UAR', which has recently stepped up its efforts to cultivate northern Moslem leaders. British influ- ence will still be considerable, however, because of the employ- ment of large numbers of British civil servants.\ SECRET Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 " 11 RITISH ;LOONS Tm.) Maidugurii \j Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 _ftwp~ 11W CURRENT INTELLIGENCE WEEKLY STMMARy 29 September 1960 POLITICAL TURMOIL IN UGANDA The renewed drive of the traditional rulers of Bu- ganda--key region of Britain's East African Uganda Protectorate and source of much of its eco- nomic wealth--to assure their political future is creating a major new colonial crisis for Britain. London's efforts to push constitutional reform in Uganda to enable the protector- ate to achieve early independ- ence as a unified state may bog down unless Buganda can be persuaded to partici pate in the protector- ate government. The Buganda King and his ministers have for several years been apprehensive over any efforts either by the British administration or Uganda nationalists to undermine the royal authority. The King's activities have con-' tinually frustrated British efforts to submerge Buganda with- in a larger Uganda state and have cre- ated such cleavages within the Uganda na- tionalist movement fear that the elections planned by Britain for next February will lead to a popular govern- ment and undermine the tradi- tional royal regimes. In op- position to the current elec- toral registration campaign sponsored by the British in Uganda, the Buganda legislature on 21 September denounced such activity. It also opposed any increase in the power of the Uganda protectorate government to deal: with intimidation of that no dominant faction has emerged to speak for the Africans. Discussions in London be- tween Bugandan and British of- ficials deadlocked in mid-Sep- tember when the Bugandans broke off the talks because of their dissatisfaction with the terms of London's promises to safeguard the province's sepa- rate identity. The King and his delegation were accorded a triumphant' reception in Kampala on their return from London. Buganda leaders, who have the backing of tribal rulers in three other regions of Uganda, voters--a practice frequently ascribed to the Bugandan King's government. On 23 September the Buganda legislature, reportedly carried away by the enthusiasm of the crowd in the visitors' gallery, voted to terminate the region's agreement with Britain and ap- pointed a committee to set the date for independence. This action, along with a decision to curtail Buganda's representation in the central Uganda legisla- ture, in effect declared Buganda's secession from Uganda. However, legislative leaders favor a federal relationship with the other Ugandan provinces. SECRET PART II NOTES AND COMMENTS Pave 8 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Iftow 1"8001 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Britain is expected to react sharply to Buganda's moves. The chief secretary-- second-ranking British official in Uganda--expects a crisis but believes one at this time would be better than a few years hence when Buganda might con- front inexperienced Ugandan leaders with the choice of civil war or fragmentation of a new nation. He has hinted that Britain is prepared to use the governor's reserve MIDDLE EAST DEVELOPMENTS powers to remove Bugandan min- isters and curtail the King's influence. On 26 September the British official publicly announced that London would not permit Buganda to change the basic protectorate agreements unilaterally, would not recognize any secession so long as the British govern 25X1 Uganda,, and would consider no constitutional changes at this time. Xing Husayn arrived in New York this week with the hope of obtaining through UN mediation some sort of redress for the assassination of Jordanian Prime Minister Majalli, for which he holds the UAR responsible. UN Secretary General Hammarskjold is trying to prevent the Jordan- UAR crisis from reaching the General Assembly by undertaking private talks with Husayn and Nasir, and by attempting to arrange, in response to a Jor- danian proposal, a confronta- tion of the two Arab leaders. Hammarskjold, in addition to proposing that both countries cease their propaganda warfare, intended to impress on Nasir the dangers to Middle Eastern sta- bility of continued attempts at subversion and terrorism. F Nasir is un- likely, however, to agree to a detente which does not involve equally conciliatory measures by Jordan. an out rea of large-scale hostilities seems less likely, at least while Husayn is in New York. The continued maintenance of Jordanian troops in a status 25X1 of alert in field positions could eventually cause serious problems. ----]troop morale has been low an rations poor, while 25X1 many of the soldiers who live in northern Jordan are unhappy, over the prospect of fighting neighbors and, in some cases, SECRET PART II NOTES AND COMMENTS Page 9 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 relatives across the border. The US Army attache in Amman has said, moreover, that there have been indications that Bedouin domination of the present opera- tion was causing a rift within the Jordanian Army between the Bedouin "command aristocracy" and others, such as Circassians, Christians, and Palestinians, who feel they have been left out. Libya A governmental crisis has resulted from the recent exposure of corruption among high-level officials. Dissatisfaction with the Kubar government has in- creased, especially in urban areas, and some of the popular resentment is directed against King Idris for his delay in taking promised remedial action. In response to a petition signed by a majority of the members of parliament, Idris has ordered parliament to reconvene in extra- ordinary session on 8 October to discuss the latest scandal con- nected with government fi- nancing of the Fezzan road project. SECRET PART I I NOTES Axn rnMMrMme Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 10 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 The King has already re- placed almost the entire pro- vincial. Cyrenaican Executive Council. He is also expected soon to accept the resignation proffered by Prime Minister Kubar more than six weeks ago and to undertake a major shake- up of the federal cabinet. Many prominent politicians-- such as former Prime Minister Ben Halim--who might ordinarily be considered possible replace- ments for Kubar now are likely to be ruled out because they too have been implicated in unsavory dealings. One likely choice to suc- ceed the prime minister might be Husayn Maziq, the governor of the Province of Cyrenaica. An- other might be Sheik Abd al- Hamid Dibani, the minister of justice, who has occasionally been acting prime minister. Both are, men of integrity, and 25X1 either could be expected to con- tinue Libyan policies generally favorable to the West. NEHRU-AYUB MEETINGS IMPROVE INDO-PAKISTANI RELATIONS Indian Prime Minister Neh- ru's five-day visit with Presi- dent Ayub of Pakistan in con- nection with the signing of the much-heralded Indus Waters Agree- ment appears to have established a personal rapport which will promote closer rela- tions between India and Pakistan. The formal ending of the 13-year-old Indus waters dis- pute removes a major irritant in the relations between the two nations. The new agreement, along with last year's border accord and continuing contacts between the nations' leaders, may provide sufficient momentum to enable the two nations to move on to settlement of other outstanding issues, such as relaxation of visa restric- tions, implementation of through rail travel, and a set- tlement of the outstanding debts arising from partition of the subcontinent. Additional lower :level talks are planned on these is- sues, but since each country feels that it made the con- ciliatory gestures that paved the way toward an Indus settlement, each probably ex pects the other now to take the initiative in further concessions. Regarding any possible solution to the long-standing SECRET PART II NOTES AND COMMENTS Pace 11 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 `SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 dispute over the status of Kash- mir, neither leader appeared willing to modify his basic po- sition. They apparently discussed the question dispassionate- ly during their long, frank,pri- vate conversations, with Ayub reportedly stressing the point that only he and Nehru are strong enough to push through a solu- tion over the opposition of cer- tain elements within their coun- tries. Both leaders recognize that with the settlement of the Indus waters dispute, all remaining points of disagreement; are minor compared with Kashmir;, and both agree that a settlement of the Kashmir question holds the key to long-term stability in Indo- Pakistani relations. However, neither appears ready at this time to make the compromises necessary to permit.a serious bargaining for a settlement. TRIBAL UNREST ALONG THE AFGHAN-PAKISTANI BORDER Tension is mounting along the Afghan-Pakistani frontier following the outbreak of fight- ing among Pushtoon tribes liv- ing along the border north of the Khyber Pass. The danger of clashes between Afghan and Paki- stani army units will increase as both Kabul and Rawalpindi take measures to support their tribal partisans, although ef- forts will probably be made to keep the disturbances localized. The current unrest involves long-standing conflicts among several tribal groups in this area and between the tribes and the two governments. Neither government controls all the tribes in its own territory, and both governments compete- to ex- tend their influence among them, with little regard for the inter- national boundaries. Most of the recent fighting, which began in early September on the Pakistani side of the line,. seems to be centered in Khar, in the Bajaur region. The Nawab of fair, a local ruler who controls a semi-autonomous state, has had chronically poor relations with the Pakistani Government and reportedly has recently request- ed Afghan Government support. The Afghans, possibly in re- sponse to this request, apparent- ly are assisting the enemies of the Khan of Khar, a rival of the Nawab. Kabul has canceled all army leaves, is calling up reserv- ists,. and is sending additional armor and infantry units to the border, both north and south of the Khyber Pass. The Afghan Government is also recruiting tribal irregulars, and many-- perhaps a thousand--have already crossed the border to spark fur- ther unrest and encourage tribal opposition to the Pakistani Gov- ernment. Pakistani Air Marshal As- ghar Khan says the Pakistani Air Force is organizing an air drop should it be necessary to bring troops into the area, which is relatively inaccessible by land routes from Pakistan. Afghanistan too has long had considerable difficulty with tribes on its side of the bor- der, especially with the Moh- mands, a powerful Pushtoon tribe living on both sides of the bor- der. Since a shooting incident in 1958, Kabul has increased its garrison in the area and pushed SECRET PART II NOTES AND COMMENTS Pave 12 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 REGION OF TRIBAL DISTURBANCES its road-building program to facilitate extension of its con- trol. Afghan regulars are en- countering serious tribal re- sistance as they try to push close to the border opposite Bajaur and Dir. In addition, there are in- dications of widespread unrest in several Af- ghan cities, probably reGlting from the call- .L of the reserves. Both Kabul and Rawalpindi have shown considerable concern that the other side may go too far and cause the conflict to spread. Kabul .appar- ently has placed its Soviet-supplied MIG-17 jet fighters an the alert in the event of a Pakistani. attack. Pakistani Foreign Min- ister Qadir announced on 28 September that "the government of Pakistan is holding itself in readiness for all eventualities and is capable of dealing effectively with all attempts at violating Pakistan's frontiers." As an in- dication of the extent of Pakistan's concern, Qadir's deputy on the same day called in the Soviet and American ambassadors to present his government's views on the situation SOUTH. KOREAN POLITICS South Korean Prime Minister Chang Myon, already threatened with a formal split of his Demo- cratic party, may disrupt govern- ment operations if he carries out the large-scale purge of government officials he has initiated. Faced with popular pressure for a status-of-forces agreement with the United SECRET PART II NOTES AND COMMENTS Pace 13 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 cri-lDvIr Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 -WWI CENTRAL INTELLIGENCE WEEKLY SUMMARY 29 September 1960 States, Chang may feel forced to popularize his administration by publicly pushing for an agreement. Kim To-Yop,Chang's erst- while rival for the prime minis- tership and the nominal leader of the Democratic party's "old" faction, on 22 September an- nounced his intention of with- drawing from the party and or- ganizing a conservative oppo- sition party. Kim's effort to force a party split probably was designed to block any fur- ther loss of members to Chang's "new" faction. Chang is con- fident the split ultimately will benefit him by encouraging the transfer of sufficient members from the "old" faction to the prime minister's group to give him a majority in the National Assembly. Chang is carrying out a large-scale dismissal of senior government, provincial, and police officials appointed dur- ing the Rhee administration. The purge is designed to win popular support for the new government by removing unpop- ular local officials and al- legedly corrupt remnants of the old regime. It also may be motivated in part by a desire to establish within the government an organization per- sonally loyal to Chang. The anti- corruption drive is almost cer- tain to demoralize government employees and reduce the effec- tiveness of the present adminis- tration. Inspired by the nationalistic sentiment which has been evident since the April revolution, the press, members of the Nation- al Assembly, Korean employees of US military installations, and student demonstrators are exerting pressure on the govern- ment for the early conclusion of a status-of-forces agreement with the United States. Chang has indicated that his government is under compulsion to demonstrate progress toward this goal, and, faced with mounting difficulties on domestic issues, he may de- cide to popularize his adminis- tration by publicly pushing for an agreement, Vice Minister of Foreign Affairs Kim Yong-sik recently told the American Embassy that he believed the government would be largely relieved of pressure on this issue if nego- tiations were begun, despite the fact that a final agreement might require many months, as Chang's 25X1 government could take considerable talks. credit for merely opening formal SPAAK'S WORRIES ABOUT NATO Secretary General Spaak, who visits Washington from 2 to 4 October, is primarily concerned with discussing the difficulties posed by French attitudes, as well as over the shortcomings of NATO's consultation procedures, as shown in the Congo crisis. Even before De Gaulle on 5 September publicly advanced his thesis that "world powers" should have a superior status within the alliance, Spaak had observed that the French President did not want true tripartite consultation or even a directorate of three, but support for his own pol- icies; that unless he can have this, De Gaulle is against NATO. SECRET :PART II NOTES AND COMMENTS Page 14 of 1' Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Of the specific military issues that have vexed 'Gaullist France's relations with NATO, limited progress on integrated air defense was achieved on 28 September when the North At- lantic Council approved crea- tion of an integrated air de- fense system that would include a section of France bordering on West Germany. French planes in the area as well as in Ger- many will remain integrated in the NATO command, and the French radar system will be brought into the Allied warning net. While there apparently has been no change in De Gaulle's position since he removed France's Mediterranean fleet from NATO wartime control, con- tinuation of some practical co- operation is illustrated by French participation in cur- rent NATO naval exercises. At- tention will now focus on French objections to the Ameri- can proposal of 1 April for the establishment of a NATO medium- range ballistic missile program. NATO authorities hope to re- solve this issue by the time the annual ministerial meeting convenes in December. 21 September. Spaak has found in the handling of the Congo crisis new ammunition for his continu- ing campaign to improve pro- cedures of consultation. He has pointed to Belgium's fail- ure to seek the permanent coun- cil's advice in advance of the crisis, the failure Of NATO members to give Belgium their early advice on it, and the conflicting positions of NATO members in the UN Security Council debates. One immediate consequence has been Brussels' plans to trim its NATO con- tribution, probably by pulling back its two divisions in Ger- many from forward positions. Spaak foresees similar difficulties arising from the coming UN General Assembly debates on Algeria which, he fears, will put France's ties with the alliance to a severe test. These are high among the 25X1 problems dealt with in a major long-term study of the alliance, on which informal discussion began in the North Atlantic Council on SECRET PART I I NOTES AND CCkm,!;iti r:.. Page 15 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 'Wool SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 2S September 1960 FINNISH POLITICAL PROBLEMS The most difficult prob- lems lacing the. recently reconvened Finnish parlia- ment are. the question of Finland's. association with. the European Free Trade As- sociation (EFTA) and the re- lated issue of broadening the minority government in order to break the political impasse on the domestic scene and to strengthen the government's hand in prospective economic nego- tiations with the Soviet Un- ion, Finnish officials hope to pave the way for eventual asso- ciation with EFTA by first reach- ing agreement with Moscow on most-favored-nation treatment for Soviet exports. Preliminary talks are already under way, and President Kekkonen has ac- cepted Premier Khrushchev's in- vitation to visit Moscow in SECRET PART II NOTES AND CGMMENTS Paaea 16 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 .. SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 FINNISH DIET FINNISH SOCIAL PEOPLE'S DEMOCRATIC PARTY OPPOSITION 200 SEATS late November in connection with the expected conclusion of an agreement. During his visit to Finland earlier this month, Khrushchev implied the USSR would not block Finland's association with EFTA provided measures were taken to maintain Sovd et-Fin- nish trade. Once this problem has been resolved, the govern- ment probably will propose to parliament that Finland associ- ate with EFTA--a move which seems certain to be approved in view-of the.aimost:solid,support from the non-Communist parties and most economic groups. FARMERS PARTY Probably the most contro- versial domestic issue facing parliament and one which is likely indirectly to influence the EFTA and government questions concerns proposals for new farm income legislation which the Agrarians are expected to intro- duce. The Social Democrats in particular are determined to oppose vigorously any arrange- ment which in their view grants excessive benefits to farmers. This issue may be used by the opposition parties as a bargain- ing point by which the Agrarians might: ?be;_Ypressed to broaden the govern- ment. Another question which may receive considerable atten- tion is that of the desirability of hold- ing new general elec- tions in :view of the continuing impasse in Finnish political af- fairs. Although elections are not scheduled to be held until July 1962, pressure to hold them at an earlier date is likely to increase markedly if the Agrarians continue to refuse to broaden the government except on terms. unacceptable to, opposition parties. In the two unsuccessful attempts to reorganize the gov- ernment last summer, the Agrarians proposed giving disproportionate- ly high representation to the splinter opposition Social Dem- ocrats while barring the regular Social Democrats from any cabinet posts. Despite some fears that the Communist-f ront Finnish Peoples Democratic League might further increase its strength as a re- sult of dissensidn~ within the Social Democratic and Agrarian parties, there appears to be in- creased confidence among the democratic parties about facing the electorate during a period when the economy is booming and economic prospects are bright. An uneasy feeling persists, how- ever, that even if the Commu- nists made only moderate gains in the election, President Kekkonen would be inclined to grant them representation in a new government SECRET PART II NOTES AND COMMENTS Page 17 of 17 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Iq Next 5 Page(s) In Document Denied Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 MONGOLIA IN BLOC AND WORLD AFFAIRS Mongolian Communist leaders were forced into a difficult decision this summer. After the Bucharest conference made it clear that the Soviet Union ex- pected satellite support in its feud with Peiping, the Mongolian central committee met and on 5 July issued a surprisingly non- committal resolution. On 14 August, however, after Premier Yumzhagin Tsedenbal, who is also party first secretary, had ap- peared at the Kremlin, Unen, the official Mongolian newspaper published an article firmly de- claring for the USSR. Yet, ~ayn Shanr regardless of Moscow's induce- ments or pressures, the fact that the oldest Soviet satel- lite had hoped to stay out of the polemic testifies to the resurgence of Chinese influence in Mongolia. Historically, the Mongo- lians sought to import Russian influence to reduce that of the Chinese. This effort, captured and distorted by the Bolshevik revolution, brought the Mongo- lian Communists to power in 1921 behind an advancing Soviet Red Army which not only crushed White Russian remnants who had fled to Mongolia but also broke the centuries-old grip of Chi- nese suzerainty. Now the Chinese have reap- peared in the role of economic helpers. Although determined to prevent any restoration of Chinese ascendancy, elements in the Mongolian party, restive HI)J after years of un- questioning obedience to the Kremlin, prob- ably welcomed an op- portunity to widen contacts with the Chi- nese as a hedge a- gainst continued total subservience to the USSR. Nationalism There is no long- er an organized Bud- dhist church around which national feeling can rally, as it did in Tibet. The lamas were ruthlessly elimi- nated in the purges of the mid-1930s, and the monastery preserved in Ulan Bator serves only to impress Buddhist visitors. The Communists also have made some attempt to reorient along more Marxist lines the Mongols' strong sense of pride in their history and cultures With Mos- cow looking over its shoulder, the Mongolian Government in 1941 officially adopted a modified Cyrillic script; Russian is a required language in the expand- ing school system and although there is a university, about SECRET: PART II.I PATTERNS ANn PRPRDV0MT 7V r%--- of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 u-l~\.+l~Lr ! CURRENT INTELLIGENCE WEEKLY S 29 September 1960 1,000 youths are sent to study in the USSR each year; and there has been some effort to replace classic Mongol heroes, including Genghis Khan, with more ortho- dox symbols of proletarian in- ternationalism like Marshal Choybalsan, a carbon copy of Stalin who died a year before his mentor. The Mongol nomads form a reservoir of nationalism, but they are politically voiceless. Instead, the most striking re- cent opposition to complete sovietization was spearheaded by a Mongolian professor, Dr. Rinchen, who, between 1956 and 1959 wrote a number of books and poems which extolled tradi- tional Mongol culture and were unflattering to the USSR. At- tacked in the Mongol press as "bourgeois nationalist," Rinchen was eventually dismissed from his post at Choybalsan University. Rinchen's defense of Mon- gol culture--his willingness to snipe at "the new life of fraternal peoples"--appears to have been symptomatic of wide- spread dissatisfaction with the effort to remake Mongolia in the Soviet image. in the USSR report that their Mongolian acquaintances are contemptuous of both Chinese and Russians, much preferring Western companions to th from the bloc. Party Purge "Nationalism," Unen said in criticizing Rinchen, "cre- ates the soil for bourgeois in- trigues"--a reference to the factionalism which divided the Mongolian People's Revolution- ary party for five years, cul- minating in March 1959 with the purge of Dashin Damba and the end of "collective leadership" in Mongolia. Tsedenbal, long Choybal- san's heir apparent as head of state and party, assumed both jobs when the marshal died in 1952. Only 36 at the time, Tsedenbal may not have had a really firm power position in the politburo when Stalin's death brought on the inter- regnum of collective leadership in Moscow. In April 1954, Tseden- bal was released from his post as party first secretary, and into the vacancy stepped Dam,ba, who had been second sec- retary since 1947, With Damba leading the party and Tseden- bal the government, Mongolia embarked on its own collective leadership experiment, a step Unen hailed as "the most impor- an principle of party leader- ship.'" SECRET PART III PATTERNS AND PERSPECTIVES Page 8 of, 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29:September 1960 Damba seemed in control of the 13th Mongolian party con- gress in March 1958. He at- tacked the Choybalsan cult--and indirectly the marshal's pro- tege Tsedenbal- -charging that it "flagrantly violates revolu- tionary legality." Even more significant were Damba's remarks about the effort to get Mongo- lian herdsmen to settle in co- operatives--a perennial objet- tive~of the regime. Stressing that the movement to coopera- tives should be voluntary and stimulated by incentive, not coercion, Damba clearly implied that the pace of socialization should take Mongolia's tradi- tional culture patterns into account. Such concepts were not in harmony with general bloc ef- forts at the time to tighten socialist control over agri- culture, and they certainly were not in keeping with Tseden- bal's ambitions to catapult Mongolia immediately into the 20th century via Communism. By 1958, collective leadership was pass& in the USSR, and Tseden- bal knew whom to see. Following Tsedenbal's No- vember 1958 trip to Moscow, the party central committee met in plenary session, after which Tsedenbal once more emerged as first secretary, while Damba reverted to second secretary "for better centralization of party leadership." It quickly became apparent that social- ization was going to be acceler- ated. By early 1959 Tsedenbal had consolidated his position, and on 31 March Damba was purged along with five other members of the politburo. The charges against Damba were vituperative, revealing the depth of Tsedenbal's animo s- ity, as well as indicating that Moscow shared this feeling. TASS was prompt to report Damba's "lack of principle and dis- honesty, stupid political backwardness, conservatism, and inertia, egotism, and opportun- istic conciliation." The Soviet journal Parf Life gave Tseden- bal space in which to condemn Damba for criticizing Choybalsan, now restored to his pedestal as "an ardent advocate of the friendship of peoples." In his. article, Tsedenbal outlined "a great revolutionary measure in- tended to promote rapid develop- ment of productive forces in agricul hare" --essentially, speedy conversion of Mongolia's pastoral economy to one more closely approximating agricul- ture in the Soviet Union. In retrospect, it appears that Damba attempted a cautious de-emphasis of the Soviet pres- ence during his five-year con- trol of the party. His willing- ness to oppose the recognized Soviet faction and his desire to accommodate Mongolian charac- teristics in socializing the economy point in this direction, giving his struggle for person- al power a distinctly national- istic tone. It was during Damba's tenure that Chinese in- fluence experienced a renascence in Mongolia--a renascence Damba may have welcomed, but only to the extent that it might in some degree offset Soviet control. "Socialist Competition" Before the Communist vic- tory in China, Mao Tse-tung told the American writer Edgar Snow that "the Outer Mongolian repub- lic will automatically become a part of the Chinese federation when the people's revolution has been victorious in China." This has not been repeated publicly since Mao took over the mainland, but the implications did not escape Moscow's notice. When the Sino-Soviet treaty was signed in 1950, a note was appended in which the Chinese Communists-ac- knowledged Mongolia's independ- ence, just as Chiang Kai-shek had done a few years before. SECRET PART"III PATTERNS AND PERSPECTIVES Page 9 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Stalin may not have trusted Mao completely, but he was con- tent to restrict, rather than entirely prevent, renewed Chi- nese activity in Mongolia. The 1952 joint Sino-Soviet-Mongolian railroad treaty kept Chinese construction crews from cross- ing Mongolia's southern boundary, but that same year Peiping and Ulan Bator agreed to "consoli- date cooperation" in an econom- ic and cultural pact. At the time it was signed, this agree- ment was rather vague as to just how far the two parties intended to carry their co- operation, but the agreement was used subsequently as some- thing of an open-end contract providing the justification for specific Chinese economic aid programs. With Stalin out of the pic- ture, the reins of Moscow's hegemony loose, and the economic drain of the Korean war over, Peiping developed a more tangi- ble interest in Mongolia. By agreement with the Ulan Bator, the first of at least 10,000 Chinese laborers began arriving in 1955. These workers have built housing projects, bridges, a glass factory, food-process-- sing plants, and a brick kiln; they are building or will build more roads, bridges, and apart- ment houses, plus additional factories for Mongolia's nas- cent industry; some 2,000 Chi- nese are swarming over the Harkhorin state farm construc- ting a sizable irrigation system. All this is financed by Peiping, whose grant and credit aid to Mongolia since 1956 reached a total of $115,000,000 with the extension of a new $50,000,000 loan last May. Communist China's trade with Mongolia has multiplied about 50 times since 1952, a rise which to some extent has been at Soviet expense. This point was formally noted in 1957 when the 1958-60 Soviet- Mongolian trade agreement was signed. At Ulan Bator's re- quest, it was agreed that Mon- golian exports to the USSR could be reduced because of the "signif- cant'. expansion of economic re lations with other countries." The USSR still dominates Mongolian trade, as it does the field of economic assistance. Moscow provides farm machinery, industrial equipment, and heavy installations such as thermal power plants; aid projects have developed mineral resources and transportation. Viewed strictly in terms of projects, Chinese economic activity in Mongolia would seem to complement that of the USSR. In balmier days of the Sino-So- viet alliance, Moscow may have found this an acceptable, if not wholly desirable, modus vivendi as long as the Chinese did not push for equal status in Mongo lia. The Chinese, in fact, have been careful to stay within the permissive framework of "social- ist brotherhood," and they have avoided any pronouncements or specific actions which could be interpreted as interference either in Mongolia's :internal affairs or in Soviet-Mongolian relations. Peiping thus is not openly challenging Moscow's position in Mongolia, but the return of Chinese influence tends to erode that of the USSR. Peiping seems to be following a policy of patience and of gradual en- croachment intended slowly to reorient Ulan Bator's political allegiance. There have been some indi- cations that Moscow is reviewing its position in Mongolia in the light of Sino-Soviet differences. TASS gave cursory treatment to Chou En-lai's visit to Ulan Bator last May when new assist- ance, pledged to Mongolia's Third Five-Year Plan (1961-65), which suggests that the USSR was less than pleased. SECRET PART III PATTERNS AND PERSPECTIVES Page 10 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Moscow's 9 September loan to Mongolia of over $153,000,- 000 for the new Five-Year Plan stipulates repayment on "easy terms," defers repayment of earlier loans, and provides for sending Soviet technicians and workers to Mongolia. This last may be particularly significant as the USSR in recent years has left the labor field almost en- tirely to the Chinese. The agreement brings total Soviet aid since 1956 to well over $275,000,000. On 20 September, a further Sino-Mongolian agree- ment was announced providing Chinese labor, presumably for construction projects to be undertaken in connection with the Chinese loanin May. Diplomatic Relations Ulan Bator has made a serious effort in recent years to gain acceptance as a legit- imata.a independent state, bid- ding especially for contacts with the Afro-Asian countries. Burma, India, Indonesia, and Guinea now recognize Mongolia. As yet there are no nonbioc ambassadors in Ulan Bator, but Indonesian, Indian, and Burmese ambassadors in Peiping are ac- credited there. Guinea has not yet appointed a diplomatic rep- resentative, but President Sekou Tour6 visited Ulan Bator on 10 September. Diplomatic relations with Peiping and Moscow present the expected picture of "socialist unity." Molotov served as Soviet ambassador in Ulan Bator until recently, but Mongolians privately expressed a dislike for him. There is an interest- ing, although unconfirmed, re- port that in early 1958, the USSR appropriated some Mongo- lian territory rich in cobalt-- an action which was said to have led to a stiff protest from Mongolian Foreign Minister Avarzed. Avarzed did lose his job in mid-1958, and the report alleged this was at Molotov's insistence. Mongolia and the Mongolia's efforts to join the United Nations date from 1946. Membership requires a two-thirds endorsement of the General Assembly and is subject to a Security Council veto, as was used by Nationalist China in 1955. Khrushchev, in .his address to the General Assembly on 23 September, called for Mongolia's admission along with that of Communist China. The USSR may, however, be planning to ask this General Assembly merely to rec- ommend Mongolia for membership. If successful, such a move would give the Communists a propaganda victory by according Mongolia some measure of international recognition. It would not re- sult in membership for Mongolia, but would afford the bloc a talking point for urging accept- RECENT DEVELOPMENTS IN MIDDLE EAST OIL Saudi oil boss Sheikh Ab- dullah Tariki and Juan Perez Alfonzo, Venezuela's minister of mines and hydrocarbons, have taken a major step toward real- ization of their plan, for uni- fied action by the world's major) net oil-exporting countries. On 14 September the formation of the Organization of Petroleum Exporting Countries (OPEC) was announced in Baghdad. Its mem- bers--Saudi Arabia, Kuwait, Iraq, Iran, and Venezuela--haves about SECRET PART III PATTERNS AND PERSPECTIVES Page 11 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Nm~ SECRET 1W CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 80 percent of the free world's known oil reserves and account for almost half of the oil moving in international trade. However, OPEC is already showing signs of weakness. Iran, whose coopera- tion is essential, now appears to be having second thoughts about "solidarity" with the Arabs. Prelude to Baghdad Talks For more than two years Tariki and Perez have been working toward a world-wide system of prorationing oil out- put by agreement among the 1 1. world's major net oil-exporting countries. They advocate an organization with power to set production levels in each country and determine each mem- ber's share of the world market, and thus to maintain an artifi- cially high price for oil. Tariki and Perez realized Iran and Iraq would have to join if the plan were to succeed. Iraq was not likely to join any new group in which the UAR, a minor producer, would have either membership or strong influence. When Tariki visited Baghdad in late August, he and the Iraqis agreed that the UAR would not be included and that the Arab League--in which the UA.R plays the leading role--would be given only observer status. Iraq then warmly endorsed Tariki's plans for a preliminary meeting and insisted that it be in Baghdad. The task of assuring Irani- an attendance fell to Iraq. Tariki had long sought: to interest Iran in prorationing schemes. Iran, feeling that Baghdad would consider a re- fusal to attend the meetings.an affront to Qasim, agreed to participate as an observer. Its decision was probably in- fluenced by the fact that Bah- rein, which Iran claims as its territory, was not invited. On 12 September representa- tives from Iraq, Saudi Arabia, Kuwait, Qatar, Iran, and Vene- zuela began discussions which led to the formation of the new organization. Fuad Ruhani, acting man- aging director of the govern- ment-owned National Iranian Oil Company (NIOC), represented Iran in the absence of Abdullah Entezam, chairman of the company, who was on a trip to the United States, Both Iranians strongly back most of the present pol- icies,. of the international oil industry, but Tariki proposed an agenda that included a number of proposals extremely hostile to the oil companies. Such pro- posals would have conflicted wIt?h,,,Tdhra.n's polfcy''of mild SECRET PART III PATTERNS AND PERSPECTIVES Page 12 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 harassment of but basic accom- modation with the companies operating in Iran. Ruhani warded off Tariki's proposed agenda by.changing Iran's, status from:observer:to dele- gate-in order to present an- other agenda. According to Ruhani, his object was to prevent discus- sion of such matters as pro- posals for correlating the amount of oil produced with oil reserves, raising the govern- ments' share of prof- its from the present 50 percent, ;,,and adopting a formula for changing prices. The announced de- cisions of the meet- ings were close to the Iranian proposes! als. Aside from the decision to form the OPEC, the most impor- tant was agreement on the need to main- tain present prices. Issuance of a final communique was post- poned until 24 Sep- tember, when the several governments simultaneously an- nounced the results SECRET -low While withdrawal is a distinct pos- sibility, it seems more like- ly that Iran will remain a member and attempt to act as a restraining influence on Tariki and Perez, while also using its membership to win some concessions from the consortium. The conference decides to form a permanent organization to be called Organization of Petroleum Exporting Countries for regular con- sultation among its members to coordinate and unify the policies of the members and determining the attitude which members should adopt. Principal aim of the organization shall be to unify petroleum poli- cies for member countries and to determine the best means for safeguard- ing the interest of member countries individually and collectively. Members shall demand that oil companies maintain their prices steady and free from all unnecessary fluctuation. members shall en- deavor to restore present prices to the levels prevailing before the re- duction. Members shall study and formulate a system to ensure the stabi- lisation of prices by, among other means, the regulation of production with regard to the interests of the producing and of the consuming na- tions, and to the necessity of securing steady income to the producing countries, an efficient and regular supply to consuming nations, and a fair return on their capital to those investing in the petroleum in- dustry. If sanctions are employed by a company against any member country, no other member shall accept any offer of a beneficent treatment whether in the form of an increase in exports or an improvement in prices which may be made by any such company with the intention of discouraging the application of the unanimous decision reached by the conference. of the meeting. Iranian offi? cials, feeling they had ex- erted a moderating influence at the meetings and had ac- tually championed the Western oil companies' cause, were sur- prised at the reaction of the companies, which viewed Tehran's role in the meeting as Iranian "solidarity" with the Arabs. At least one US firm halted negotiations for an oil concession in Iran. Kuwait and OPEC Until very recently Kuwait had been content to keep out of the controversies between the oil industries and the area's oil-producing countries. This policy has helped Kuwait, which produced no oil before World War II, move to third place-- after the United States and Venezuela--among the free world's oil producers. Now, however, Kuwait is showing SECRET PART IIT PATT1 RNS Awn PFRSPVrTTVVS Pa.iP 13 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29)Zeptember 1960 signs of wanting more than substantial oil revenues. Many influential Kuwaitis want their country to have a larger voice in the management of the Brit- ish- and American-owned Kuwait Oil Company as well as some control over changes in prices for its oil. It was Kuwait that asked Tariki to organize an emergency meeting of oil-producing coun- tries following the August cut in the posted prices for Middle East oil. British officials remain convinced, nevertheless, that the oil policies of the Kuwaiti Government will continue to be determined by a preoccupa- tion with the size of the coun- try's oil revenues. from the Gulf of Aqaba to the Mediterranean. All members except Kuwait need funds. Excepting Vene- zuela, each member has been urging the oil companies to increase production in its own territory at faster rates, even at the expense of other area countries. Iran, for example, holds that it should :return to its former position as the Persian Gulf's leading oil pro- ducer, and it is concerned with the Arabs' rapid increases in output. Saudi Arabia has told Aramco that its production should increase faster, noting that Kuwait, whose production is half again as large as Saudi Arabia's, has no pressing need for additional revenues. Prospects for OPEC The OPEC has serious structural and conceptual weak- nesses, which reduce its threat to the international oil in- dustry. Most of the member governments are unstable and suspicious of each other. Iran, for example, tends to distrust the Arab states and to hold them in contempt, recalling vividly the fact that the Arabs took advantage of the shutdown of Iran's oil industry follow- ing nationalization in 1951--52 to achieve their present export position. The Arabs are resentful that Iran stepped into the breach during the Suez crisis and supplied Israel with oil when Moscow decided to halt shipments to Israel. Most of Israel's petroleum needs are still being met by Iran, and it appears likely that Iranian shipments will increase further as Israel begins full-scale operation of its new pipeline International proration- ing of oil would be extremely difficult, if not impossible, without the cooperation of the oil industry and the major con- sumers. For the Middle East, the principal consumers are Western European countries, which also take a sizable por- tion of Venezuelan petroleum exports. They are not as de- pendent on Middle East oil as the Arabs tend to believe. Europe is plagued with a coal surplus, partly because of the heretofore cheaper price of oil. Proration implies at least stable and possibly increased oil prices. Under such conditions the continuing shift from coal to oil might be slowed down and possibly reversed. The oil fields in Algeria and Libya will provide Europe with increasing quantities of crude oil. France has cut its imports of Middle East crude sharply. Neither Libya nor Algeria was represented at the Baghdad talks, although the way SECRET PART III PATTERNS AND PERSPECTIVES Page 14 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 SECRET 29 September 1960 is open for them to join. How- ever, Libya is preoccupied with becoming a major oil-producing nation and would not be likely to agree to suggestions that it limit its oil exports. Determination of each country's share of the market would be a major, and quite likely insurmountable, stumbling block. Saudi Arabia probably would press for some formula relating production to reserves, since this would give it larger production increases than any other country except Kuwait. Tariki has stated, however, that Kuwait is a special case, and a modification of any formula for the other members would be needed to halt the continued rapid increase in Kuwaiti out- put. Venezuela is unlikely to agree to any export proration- ing based on reserves because of its sharp disadvantage in using this criterion. Iran, on the other hand, has suggested a production-to- population relationship, which, since it is the most populous of the several countries, would make it pre-eminent in pro- duction. Despite these weak- nesses, the OPEC will likely make itself felt in oil councils in coming months, especially, in determining price changes. Tapline Problem The negotiations that have been going on for five years between the American-owned Trans Arabian Pipeline Company (Tap- line) and the Arab states through which it passes are no closer to solution now than a year ago. The company con- tinues to hold that an agree- ment with Saudi Arabia must precede agreements with the transit countries of Jordan, Lebanon, and the UAR. Cairo, however, has insisted that its demands for additional revenues be met and has again threatened to shut down the pipeline. Tap- line's dispute with the UAR was sharpened in July when the com- pany halted shipments of crude to the HOms refinery in the Syrian region because of non- payment of bills. The refinery is continuing operation with larger imports from the Iraqi Petroleum Company (IPC), but Syria is now paying a higher price for the crude oil. Baghdad-IPC Off and on since the July 1958 revolution, Baghdad and the IPC have been negotiating changes in the company's concession a- greement. Thus far, although the company has made a number of offers--including the sur- render of about 90,000 square miles, or about 52 percent of its total concession---no agree- ment has been concluded. A new round of negotiations began in late September, but prospects for a settlement of outstanding issues continuerremote.. The faction-ridden and di- vergent parties supporting the two-month-old Italian govern- ment--made up entirely of Chris tian Democrats--were forced in- to a semblance of unity by a threat to the existence of the democratic system in Italy; Nevertheless they are still seeking new national political alignments, and the outlook for such alignments may be clarified by the 6 November elections for municipal and SECRET PART III PATTERNS AND PERSPECTIVES Page 15 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September :.1960 provincial governments and by the subsequent congress of the Nenni Socialists. These local elections--which are to be held in most of the nation--are ex- pected to indicate trends to be exploited by the parties as they approach nation- al elections, due by 1963. Supporting Parties a.vi e The political truce which led to investiture of Pre- mier Amintore Fan- fani's minority gov- ernment will be strained by the fall elections. Three main aspirations are apparent among the four parties now backing Fanfani. The majority of the Liberals and right-wing Chris- tian Democrats and one or two Democratic Socialists and Re- publicans probably hope to re- constitute the old quadripartite coalition cabinet in which the three divergent small center parties participated with the Christian Democrats. Some Liberals and right-wing Chris- tian Democrats want to rely more directly on the monarchists (Italian Democratic party), who abstained in the investiture vote. The Republican and Demo- cratic Socialist parties and COMMUNITY MOVEMENT 1 - '.. DEMOCRATC SOCIALISTS 17 AI '.:INDEPENDENT LEFT I the left-wing Christian De- mocrats, however, have urged that the present cabinet serve as a transition to a reformist government of the center-left, involving more definite parlia- mentary support from the Nenni Socialists--whose abstention in Fanfani's favor was the first time the party had failed to vote against a premier-designate since 1947. The Fanfani government is committed to resign if any of the parties with- draws its support. A Chris- tian Democratic deputy is said to have complained that Fanfani heads not a gov- ernment of the center but rather a government of di- vergent currents. "I'm afraid," he said, "that if a Re- publican sneezes, Fanfani will die of pneumonia." VOTE CONFIRMING FANFANI GOVERNMENT 5 AUGUST 1960 0 SUPPORT -VALUUJIAN UNIUN IUVUI LIBERALS(PLI) 5-INDEPEND'T. MONARCHISTS - N EO-FASCISTS (MSI) ... MONARCHIST SECRET The center parties jumped in- to the breach in order to cope with threats to Italian democracy --threats exempli- fied by Tambroni's neo-Fascist-backed government and the Communist-led rioting in protest against it. PART III PATTERNS AND PERSPECTIVES Page 16 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 Reluctant minority elements and ideological disagreements among the parties, however, keep the. fuftdamental hostilities. With- in and among these ';parties alive. The Liberals include a group'. which nearly, blocked the party's..support of the Fanfani government, on the grounds that acquiescence in the ouster of Tambroni's cabi- net, which had been backed by the neo-Fascists, immediately after the June-July disorders would be yielding to the pres- sure of Communist mobs. A.1- though the Republican party is of the center-left, the leader of one of its dissident factions, former Defense Minister Pac- ciardi, has been meeting with neo-Fascists, former Fascist activists, and other extreme right-wing elements to discuss plans for forming a national front "in defense of the re- public" against a center-left government. Both left and right-wing Christian Democrats are repre- sented in the cabinet, but the search for party unity is impeded by a struggle over the positions which various factions will occupy on the election lists. The chronic problem of Guiseppe Saragat's Democratic Socialists--that of trying to compete with Pietro Nenni.'s party as representative of the Socialist electorate--is inten- sified by Nenni's announced in- tention to run independent elec- toral lists in areas where the proportional rather than the majority system prevails--cities Democratic Socialist bargaining; position vis-a-vis the Chris- tian Democrats. Saragat is al- ready trying to win back some Socialist support by ;pointing out that Nenni's 15 September speech showed that he intends to continue electoral and post- electoral alliances with the Communists in some of the cities with less than 10,000 inhabitants where the majority electoral system still applies. The Christian Democrats have announced that they would make no commitments regarding alliances after the elections, and have pledged that they will not run linked electoral lists with rightist groups, although they are presumably leaving the way open for continuance of their alliance with the neo- Fascists in some of the cities-- probably less than 1,000--now jointly controlled. Nenni, for his part, has indicated that he intends to "rescue" the Chris- tian Democrats from such depend- ance on the right and that after the elections his party will of- fer to collaborate with them in cities where political stalemate now prevents the. mayors and city councils from functioning. The Nenni Socialists and monarchists are threatened by internal cleavages over the question of relations with, respectively, the Communists and neo-Fascists--the only parties remaining in the opposition. The Socialists and monarchists cannot continue abstaining indefinitely without producing some sort of quid pro quo to placate their minorities. over 10,000 and provinces. This problem was illustrated by a leader of the Socialist In places where the Nenni left. wing, who complained that Socialists run lists with no "For about a decade we voted Communist taint, Saragat's against the governments of party may lose a major part of (Christian Democratic premiers) its already small electoral Scelba, Segni, Pella, and Fan- appeal, as was the case in the Tani. Now that they're all to- 1956 elections. Such a develop- gether in the same government, ment could seriously weaken the we sustain them with our SECRET PART III PATTERNS AND PERSPECTIVES Page 17 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 abstention." Nenni's 15 Sep- tember speech stressed the fact that his party has already re- ceived some "quid" for its "quo" in the passage of a provincial electoral law such as it has been urging since 1953. Controversial legislation, such as the nuclear energy plan or a prospective bill against monopolies, could disrupt the cooperation of the parties supporting the government. The first major strain will probably come when the Christian Demo- crats choose partners for im- portant city government coun- cils after the local elections. The 6 November elections, involving more than 32,000,000 voters in some 6,700 of the 7,800 Italian communes and Italian Elections - Key Communes SECRET about 80 of the 92 provinces, will determine the control of important city governments and of the less important pro- vincial councils, About a month before he became! premier, Fanfani stated confidentially that the municipal governments of Florence, Venice, Genoa, Rome, Milan, and Turin were in danger of falling into the hands of the Communists and Socialists after the elections. The Communists and Social- ists--who together control some 1,800 communes--took over con- trol of Bari and Genoa in the early spring, after the neo- Fascists withdrew support from the Christian Democrats in both cities. A Christian Democratic mayor was subsequently re-elect- ed' in Bari, but with only 24 votes from a 60-man city coun-' cil. A government-appointed commissioner--al- ways unpopular with local inhabitants-- now substitutes for a city council in Genoa, Naples, Venice, and Florence because of local political stale- mates. The new provin- cial election law passed by parliament in early September replaces the old majority method with a modified proportion- al system which frees the Nenni Socialists from the need to run joint lists with the Communists in order to obtain representa- tion. If--as is ex- pected--the Christian Democrats and Com- munists maintain their present strengths and the Socialists make a good showing independ- ent., of the Commu- nists, and :Nenni's autonomist faction maintains its control PART I 17 nemmt+v*Ta e.KTr% n~v cn~s .rvve~~a T'^ - 18 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927A002900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 SECRET W CURRENT INTELLIGENCE WEEKLY SUMMARY 29 September 1960 of the Socialist party congress --then the Christian Democrats will be tempted to adopt a broad policy of alliances with the Socialists in city and pro- vincial governments, several of which--including the cities of Adria and Agrigento--are al- ready governed by such a coali- tion. Sicily presents a partic- ularly thorny problem. Even though elections for the Sicilian regional assembly are not being held at this time, the city and provincial elec- tions there will revive the quarrel over the composition of the regional government. The Democratic Socialists question the propriety of the Christian Democrats' alliance with the neo-Fascists in the Sicilian government after disavowing that group's support on the national level. The Christian Demo- crats recently reject- ed' a proposal by the Democratic Socialists that a new Sicilian government be formed including both Social- ist parties and the Sicilian Christian Democratic dissidents headed by Silvio Milazzo. A Nenni Social- ist party congress will follow the local elections, possibly expect to produce electoral successes, to make a strong showing at the congress, and to be able to intensify pres- sures on the Christian Demo- crats to form a center-left government depending on Social- ist parliamentary support. New Catholic Party? There are indications that, to prevent such a rapproche- ment, some members of the 25X1 Christian Democratic right wing are discussing formation of a new Catholic party. Disgruntled ex-premier. Tambroni and right-wing leader Guiseppe Togni, a minister in several postwar governments, are men- tioned as possibilities to head SICILIAN REGIONAL ASSEMBLY 7 JUNE 1959 ELECTION in January. A decisive fight may take place then between the party's "autonomists," who favor independence from the Communists, and its pro-Commu- nist left-wing, which was forced by the majority to go along with the party's abstention on the new government rather than join the Communists in voting against Fanfani> There have been re- ports that the left wing, in- furiated by the increased in- fluence of the "autonomists," has been almost at the point of breaking away. The autonomists a new party. There are indi- cations that Luigi Ged.da, chief of Catholic Action's civic com- mittees, is involved. Gedda, who in the 1951-52 local elec- tions unsuccessfully urged Premier de Gasperi to link the Christian Democrats with the neo-Fascists, presumably hopes for another such alliance on a national scale, along the lines of Tambroni's recent ill- fated experiment. It is not yet clear whether those involved in rumors of a SECRET PART III PATTERNS AND PERSPECTIVES Page 19 of 20 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 Approved For Release 2008/12/03: CIA-RDP79-00927AO02900050001-7 29 September 1960 new party see it only as a threat to hold over the heads of the Christian Democratic left wing. Such a split-off does not seem likely to get the backing of top Vatican of- ficials, who urge Catholic unity. Outlook With:the calm of the present political truce broken by the local elections, the general uneasiness that was reflected in the June-July demonstrations will again come into the open. Because the widespread apprehension over revival of Fascism has been temporily reduced, the Christian CONFIDENTIAL Democrats will again be tempted to maintain their own single- party government at any cost --as in the case of Tambroni. Nevertheless deeper dis- satisfaction--over maldistri- bution of economic benefits and lack of political vitality and direction--will exert in- creasing pressures on them for a change of course. it is difficult to see how the party can avoid making such a change without risking so much loss of popular support that political control could be maintained only be recourse to extrale a