PROBABLE SHORT-TERM DEVELOPMENTS IN FRENCH POLICY

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CIA-RDP79R01012A002000030001-7
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December 1, 1953
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Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000-0R001-7 ASSISTANT DIRECTOR, ONE 9 07/./=PAAAr-j, rtc NATIONAL INTELLIGENCE ESTIMATE ?LT SECURITY SECURITY INFORMATIQN PROBABLE SHORT-TERM DEVELOPMENTS IN FRENCH POLICY NIE-63/1 Approved 24 November 1953 Published 1 December 1953 DOCUI1:11:-.N;T NO. 1 NO CHANGE !N CLASS. DEC LASSnED CLASS. CHANGED TO: TS S C NEXT REVIEW DATE: AUTH: HR 70-2 DATE: 3 29 - ell REVIEWER: ..C.122a,at The Intelligence Advisory Committee concurred in this estimate on 24 November 1953. The FBI abstained, the subject being outside of its jurisdiction. The following member organizations of the Intelligence Advisory Committee participated with the Central Intel- ligence Agency in the preparation of this estimate: The intelligence organizations of the Departments of State, the Army, the Navy, the Air Force, and the Joint Staff. CENTRAL INTELLIGENCE AGENCY MET Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 DISSEMINATION NOTICE 1. This copy of this publication is for the information and use of the recipient designated on the front cover and of individuals under the jurisdiction of the re- cipient's office who require the information for the performance of their official duties. Further dissemination elsewhere in the department to other offices which require the information for the performance of official duties may be authorized by the following: a. Special Assistant to the Secretary for Intelligence, for the Department of State b. Assistant Chief of Staff, G-2, for the Department of the Army c. Director of Naval Intelligence, for the Department of the Navy d. Director of Intelligence, USAF, for the Department of the Air Force e. Deputy Director for Intelligence, Joint Staff, for the Joint Staff f. Director of Intelligence, AEC, for the Atomic Energy Commission g. Assistant to the Director, FBI, for the Federal Bureau of Investigation h. Assistant Director for Collection and Dissemination, CIA, for any other Department or Agency 2. This copy may be either retained or destroyed by burning in accordance with applicable security regulations, or returned to the Central Intelligence Agency by arrangement with the Office of Collection and Dissemination, CIA. 3. The overseas dissemination of this intelligence will be limited to a period of one year or less, at the end of which time it will be destroyed, returned to the forward- ing agency, or permission requested of that agency to retain it in accordance with IAC-D-69/2, 22 June 1953. WARNING This material_ contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. DISTRIBUTION: White House National Security Council Department of State Department of Defense Mutual Security Agency Operations Coordinating Board Atomic Energy Commission Federal Bureau of Investigation Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 ? Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 --VoRtreow PROBABLE SHORT-TERM DEVELOPMENTS IN FRENCH POLICY THE PROBLEM - To estimate probable French domestic developments and foreign policies over the next 18 months.' CONCLUSIONS 1. France, which is overextended in at- tempting to meet its internal and ex- ternal commitments, will remain one of the problem areas of the Western coali- tion. However, no critical deterioration of the French situation is likely during the period of this estimate except pos- sibly with respect to Indochina. On the other hand there is virtually no prospect of an early "revitalization" of France. Such a revitalization would require fun- damental changes in French institutions and attitudes which, if realized, probably could not become really effective during the period of this estimate. 2. Right-center governments are still likely to predominate. The chances for a left-center government coming to power are still less than even. In any case no French government likely to come to power in the next 18 months will be able to achieve both economic growth and financial stability. 3. The next six months or so will prob- ably be decisive for EDC. We believe that French failure to ratify EDC within this 'Long-term developments in France are covered in NIE-63, "France's Probable Future Role in the Western Security System," 23 January 1953, the conclusions of which remain largely valid. The present estimate supplements NIE-63 and con- centrates on probable short-term domestic and foreign policy developments, particularly in the light of developments since the publication of period would mean the virtual abandon- ment of the present treaty. However, we believe that France will ratify EDC with- in this period if (a) France's remaining conditions, especially on the Saar, are largely satisfied; (b) it remains con- vinced no fruitful discussions with the Bloc on Germany are likely; and (c) it is under continued pressure from its allies to ratify.' 4. However, certain types of allied pres- sure might delay rather than hasten rati- fication. For example, although we be- lieve that any alternative method of permitting West German rearmament is more unpalatable to the French than EDC, if one of these alternatives were for- mally proposed by the US or the UK, the 2 The Assistant Chief of Staff, G-2; Department of the Army, and the Director of Intelligence, US Air Force, would have this paragraph read as follows: "The next six months or so will probably be de- cisive for EDC. We believe that French failure to ratify EDC within this period would mean the virtual abandonment of the present treaty. Since France is fundamentally opposed to Ger- man rearmament and is more apprehensive of the threat of a resurgent Germany than of So- viet Communist aggression, French ratification of EDC continues to be conjectural. - Even though ? France's present remaining conditions including a favorable settlement of the Saar question are satisfied, French ratification cannot be assured unless: (a) France is under continued powerful pressure from her Allies to ratify, and (b) France is convinced no fruitful discussions with the Bloc on Germany are likely." 11.11116161T 1 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 %-dikedler-T French might seize upon the allied pro- posal as a pretext for lengthy discussions which would further delay West German rearmament. 5. French ratification of EDC would re- move the chief obstacle to its implemen- tation, though France would still seek to limit any German military buildup and to prevent the emergence of West Ger- many as the dominant Western European power. 6. On the other hand, if France failed to ratify EDC, it would probably seek to gloss over failure to ratify by expressing willingness to discuss West German re- armament in association with NATO. Such negotiations would almost certainly prove long and difficult, with France in- sisting on detailed safeguards at least as effective as those contained in EDC, thus incurring the grave risk inherent in the prolonged delay in the realization of a German military contribution to the de- fense of Western Europe. In these cir- cumstances, the cohesion and effective- ness of NATO itself would be endangered. 7. In Indochina, we believe that even if the Laniel?Navarre Plan is successful the French do not expect to achieve a com- plete military victory in Indochina and probably aim only at improving their position sufficiently to negotiate a polit- ical settlement. 8. If no negotiations take place within the next 18 months, France would prob- WHAT AILS FRANCE? 2 ably continue its effort in Indochina, pro- vided that: (a) the US assumed virtually the total financial burdens of the war; (b) the planned buildup of Vietnam forces permitted reduction of French forces; (c) the Indochina states re- mained in the French Union; and (d) France continued to receive US sup- port for its position in Europe and North Africa. 9. If the above French conditions were not largely satisfied France would prob- ably propose UN intervention or direct military participation by the US. Fail- ing in this, France would probably seek in time to negotiate directly with the Communists for terms which would per- mit withdrawal with minimum loss. 10. In contrast, we believe that France is determined to retain control, by force if necessary, over French North Africa. It will probably make some concessions to- ward local autonomy, but these almost certainly will not satisfy the local nation- alists. Nevertheless, French security capabilities probably will forestall the de- velopment of any serious threat to French control during the period of this estimate. However, widening differences between France on the one hand, and the North African Nationalists supported by the Arab-Asian countries on the other, will throw increasing strains on US relations with both sides. DISCUSSION to change. In particular, the semiparalysis which characterizes the present Assembly and the spiritual malaise which appears to grip the French people limit the ability of French gov- ernments to cope with France's internal prob- lem. 11. France's political and economic weak- nesses are attributable largely to the rigidity of political, economic, and social institutions rooted deeply in the past and highly resistant Declassified ? Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Nikiirint= 3 12. France has also been unable to deal effec- tively with its numerous international prob- lems. It is overextended in attempting simultaneously to: (a) maintain domestic eco- nomic stability and politically tolerable stand- ards of living; (b) meet its NATO force com- mitments; (c) maintain at least parity of strength and influence with West Germany; (d) continue a major military effort in Indo- china; and (e) cope with the lesser but grow- ing problem of North African Nationalist un- rest. Reluctant to face up to the contraction of its position as a world power, France is hav- ing great difficulty in reconciling itself to the resurgence of West Germany in Europe and in coping with growing nationalist pressures in French possessions overseas. France's inter- nal weaknesses and fear of Germany create serious obstacles to the growth of Western unity and strength, and make France vulner- able to Soviet efforts to divide the NATO allies. PROBABLE DOMESTIC DEVELOPMENTS 13. A stronger French government and basic constitutional, economic, and social reforms are essential to a revitalization of France. In- creasing awareness by the French themselves of these needs was demonstrated during the ministerial crisis of June 1953. 14. However, the present French Assembly is so divided, the multiplicity of special interest groups so great, and underlying social cleav- ages so numerous, that the chances for a strong French government or for essential re- forms during the period of this estimate are very slight. The inability of conflicting in- terest groups in the Assembly to reach agree- ment on increased powers for the executive makes extensive constitutional revisions un- likely during this period. The present Assem- bly is unlikely to produce any government which would press forward vigorously with any major reforms. Special interest groups have such influence both within and outside the Assembly that even with the grant of de- cree powers no government could deal effec- tively with France's domestic problems, as shown by the current experience of Laniel. Finally the French people themselves are so divided that even if new elections were held during the next 18 months, such elections would be unlikely to result in more effective governments than have been possible with the present Assembly. 15. With France facing continued economic difficulties, probable further strikes, a presi- dential election in December, and pressure for a decision on EDC, further cabinet crises are likely. Right-center governments are still likely to predominate during the period of this estimate. 7.-l'he disintegration of the Gaullist Party and the willingness of its two successor groups to participate in the government have broadened the parliamentary base of right- center coalitions. 16. We believe that the chances for a left- center government coming to power are still less than even. During the ministerial crisis of June 1953, a shift away from the right- center orientation of the last several French cabinets almost occurred when Pierre Mendes- France, backed primarily by left-center ele- ments, narrowly failed of investiture. Since then, the unexpectedly strong worker support for the August strikes probably strengthened the left-center parties. Nevertheless, the right-center parties in the Assembly still hold the only present non-Communist coalition majority. A left-center majority could be achieved only by splitting off elements from right-center parties, which seems unlikely dur- ing the period of this estimate. Even if a left-center government came to power, the normally right-center majority in the present Assembly probably would shortly bring about its downfall. Such a left-center government might therefore seek to consolidate its strength by new elections, though it would be unlikely to secure an effective governing ma- jority. 17. We do not believe that any government likely to come to power within the next 18 months will be able to achieve both economic growth and financial stability. Progress toward financial stability will probably con- tinue, but at the expense of economic growth. Government attempts to induce private in- vestment in industry by restoring confidence in the franc will probably be largely unpro- ductive. In addition, the great need for new ...11111011111* Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 4 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 *EOMMX" housing will not be satisfied from either public or private sources of investment. 18. The present French Government, or any successor government of the right-center will probably continue Laniel's current policy of retrenchment in an effort to stabilize the franc, to balance the budget, and to restore France's international solvency. This policy will result in reduced outlays for defense and public investment. Laniel has already de- cided to cut the 1954 military budget to $3,170 million ? $350 million less than probable mili- tary expenditures in 1953. He also proposes to eliminate many of the direct appropriations for industrial modernization and equipment, originally budgeted at $1 billion for 1953, with the proviso that they can be reinstated if no other means of financing can be found. 19. The execution of the "sound money" and retrenchment policy will continue to be ham- pered by the determined resistance of pressure groups on the left and right. Labor will op- pose cuts in social expenditures and housing. Not only the Socialists, but also many follow- ers of the present government coalition are opposed to a reduction of the public invest- ment program. Conservative interests will obstruct tax reforms. Farmers will strongly resist any substantial curtailment of agricul- tural subsidies. 20. The economic policies of a left-center gov- ernment would probably differ only in em- phasis. Such a government would probably attempt to follow the general policies advo- cated by Mendes-France. It would make some further cutbacks in France's military outlays, particularly with respect to Indochina, and give closer attention to France's domestic eco- nomic problems. Further cutbacks in mili- tary outlays might permit an upward revision in the public investment and social security programs, but not to the extent which would probably be demanded by the left elements of the coalition. Moreover, some elements essential to the coalition would probably suc- cessfully oppose revision of the tax structure, major reductions of agricultural subsidies and other important changes in the economic structure essential to an effective domestic program. Thus, a left-center government would slightly improve the outlook for eco- nomic growth, though probably at the cost of postponing still further the balancing of France's budget and external accounts. 21. The continuing weaknesses of French gov- ernments will further stimulate the dissatis- faction of the many Frenchmen desiring stronger government; consequently there is a slight chance of a rightist coup, particularly in the event of intensified social strife. Con- sidering the present political weakness of the extreme right, we believe such a coup highly unlikely during the period of this estimate. Should such a coup occur, it would probably be projected more from a military than a political party base. At the other extreme, the French Communists will probably con- tinue "united front" tactics and increase their strength slightly, but will almost certainly not be able to gain entry into the government or stage a successful coup during the next 18 months. 22. The Domestic Outlook. Therefore, we estimate that there is little likelihood of dras- tic political or economic change in France over the period of this estimate at least. On the one hand, there is little prospect of critical deterioration of the French internal situation; on the other, there is virtually no prospect of early "revitalization" of France. Such a revitalization would require fundamental changes in French institutions and attitudes which, if realized, probably could not become really effective during the period of this esti- mate. 23. During the period of this estimate, the security and usefulness of US military - instal- lations in France are unlikely to be seriously affected. However, there are likely to be fur- ther delays in the negotiation of base rights and certain other US-French agreements as well as some further conflict over construction schedules and requirements. Under a left- center government, it might be necessary to work out new agreements or modify present ones. This would, temporarily at least, in- crease such delays and conflicts. The French Communists could, if they chose to risk vio- lence, carry out substantial acts of sabotage against US lines of communication, but their Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 valeibiAW. capability for sabotage Would almost certainly be reduced to ..minor proportions within a short period. PROSPECTS FOR EDC 24. In proposing a European Defense Com- munity (EDC) in 1950 the French hoped simultaneously to meet US pressures for Ger- man rearmament, while maintaining French control over the extent of this rearmament and avoiding direct West German entry into NATO. However, France's continued internal weakness, the drain of the Indochina war, and West Germany's rapid revival have increased French fear of Germany, and have led succes- sive French governments to delay ratifying EDC. The French also have seen in such postponement a lever with which to extract concessions from France's NATO allies and West Germany itself. Finally, France desired to await the results of the West German elec- tions and to explore the possibility that the new Soviet regime might shift its attitude toward German reunification, on the chance that either of these developments might lead to the abandonment of EDC without France being responsible for its failure. 25. Adenauer's overwhelming victory and the lack of any shift in Soviet policy toward Ger- many have brought EDC to the fore again in France. Moreover, many of the "conditions" France has insisted upon have either been sat- isfied or are in process of being realized. A series of French protocols to the treaty have been agreed to, though not yet officially accepted. France has received US support for its policies in North Africa and greatly in- creased US aid in Indochina. The UK has agreed to close association with the EDC. 26. However, there remain still further obsta- cles to French EDC ratification, all of which in one way or another reflect continued French apprehensions of West Germany re- surgence. One has been the widespread hope in France that international tensions can be relieved by a four-power conference, thus avoiding the necessity for German rearma- ment. Although high French officials have stated that France would no longer have to await a great power meeting before deciding 5 on EDC, we believe that should such a con- ference meet or appear likely, France would seize upon this excuse to delay ratification. Moreover, in event of East-West negotiations on Far East issues, France's desire for a nego- tiated settlement in Indochina might make it unwilling to prejudice the success of such negotiations by simultaneously 'ratifying the EDC. 27. The French are also apprehensive lest a rearmed Germany drag EDC into Eastern ad- Ventures; they particularly fear that West Germany might ultimately jeopardize the peace in its efforts to regain territory now under Soviet control. Therefore, the French Government may seek a Western security declaration to the USSR against German aggression, on the grounds that such a declar- ation would improve the chances for EDC ratification. However, any Soviet overtures to the French seeking common action to prevent West German rearmament would be unlikely to deter the French from ratification. Such tentative approaches as the USSR has already made have apparently met with no response from France. 28. Probably the most important French con- dition to EDC ratification is a satisfactory solution of the Saar question. The French regard this issue as a test of German sincerity in advocating European unity. At a mini- mum the French will continue to insist on the political separation of the Saar from Ger- many, preferably through some form of "Eu- ropeanization." They also insist that the Franco-Saar economic union be continued pending creation of a broader European eco- nomic union. 29. The chances for agreement on the Saar have been improved in that the strong post- electoral domestic position of Adenauer en- ables him to make greater concessions to the French. In meeting French demands, he might even concede that the present Saar legislature be allowed to continue in office un- til the Saar accords have been ratified. How- ever, Adenauer will insist that German- oriented parties, currently banned in the Saar, be given full political rights. ..0151.1111141Pr Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 T 30. French desire for a normalization of the Saar question, and West German desire for EDC ratification and full implementation of the Contractual Accords make both sides anxious to reach agreement on the Saar issue. Therefore, despite the differences in the present positions of the two, we believe that these desires are so overriding as probably to produce some acceptable compromise. 31. Ratification of EDC is also partially de- pendent upon agreement on the European Political Community (EPC) , which is to have political supervision over both the Coal-Steel Authority and the EDC. The French Social- ists in particular insist that at least broad agreement be achieved on the EPC prior to EDC ratification, but the main obstacle to such agreement is the division in the French Assembly itself over the extent of the supra- national powers the EPC should have. The moderate left seeks relatively broad suprana- tional powers for the EPC. They believe that France will thereby be best able to contain a resurgent West Germany as well as advance Western European economic and political in- tegration. The right is largely opposed to such supranational powers lest France's sov- ereignty and national interests be progres- sively undermined. 32. The parliamentary importance to EDC of the EPC question lies in the fact that present- ly uncommitted votes from either the mod- erate left or the right are essential to parlia- mentary approval of EDC. Some 25-30 percent of the French Assembly ? the "die- hard" anti-Germans and the Communists ? will not vote for German rearmament in any form. Another group, chiefly ex-Gaullists and other rightists, would probably allow some form of limited German rearmament but op- poses EDC as involving the disappearance of the French national army. On the other hand, the MRP and most of the Radicals will probably vote for the treaty. Sizeable num- bers of Socialists and the bulk of the Inde- pendent and Peasant Parties are also probably favorable. There are recent indications that a large bloc of as yet uncommitted Socialist votes will swing toward the EDC if their EPC policies are followed. For domestic political reasons, however, a right-center government may prefer to seek its support from the right wing, including some ex-Gaullists, perhaps by watering-down the supranational features of the EDC and EPC at the risk of losing the uncommitted Socialist vote. Therefore, the government can probably gain sufficient addi- tional votes from either left or right by suita- ble maneuver to assure at least a small ma- jority in the Assembly for either the present or a modified EDC. Some further delay may occur in the Council of the Republic, but we believe that with Assembly approval the main obstacle will have been surmounted. 33. The next six months or so will probably be decisive for EDC. We believe that French failure to ratify EDC within this period would mean the virtual abandonment of the present treaty. However, we believe that France will ratify EDC within this period if (a) France's remaining conditions, especially on the Saar, are largely satisfied; (b) it remains convinced no fruitful discussions with the Bloc on Ger- many are likely; and (c) it is under continued pressure from its allies to ratify.3 34. Effect of External Pressure on French Ratification. Left to its own devices France would probably continue to postpone ratifica- tion. On the other hand, we believe that the French Assembly would respond affirmatively to continued diplomatic persuasion by The Assistant Chief of Staff, G-2, Department of the Army, and the Director of Intelligence, US Air Force, would have this paragraph read as follows: "The next six months or so will probably be de- cisive for EDC. We believe that French failure to ratify EDC within this period would mean the virtual abandonment of the present treaty. Since France is fundamentally opposed to Ger- man rearmament and is more apprehensive of the threat of a resurgent Germany than of So- viet Communist aggression, French ratification of EDC continues to be- conjectural. Even though France's present remaining conditions including a favorable settlement of the Saar question are satisfied, French ratification cannot be assured unless: (a) France is under continued powerful pressure from her Allies to ratify, and (b) France is convinced no fruitful discussions with the Bloc on Germany are likely." Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 4 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 -ZINNMS= France's NATO allies. However, certain types of allied pressure might delay rather than hasten ratification. For example, although we believe that any alternative method of per- mitting West German rearmament is more unpalatable to the French than EDC, if one of these alternatives were formally proposed by the US or the UK, the French might seize upon the allied proposal as a pretext for lengthy discussions which would further delay West German rearmament. 35. Effect of French Ratification or non-Rati- fication. French ratification of EDC would remove the chief obstacle to its implementa- tion. However, even if EDC comes into effect, France will seek, through its influence in this and other European institutions, to prevent the emergence of West Germany as the dom- inant Western European power. Because of fears of West German expansionism, the French will almost certainly seek to limit the pace and extent of any German military build- up. France will also attempt to postpone West German admission to NATO. There will be further tensions in Franco-German rela- tions even if EDC is ratified. 36. An outright defeat of EDC in the French Assembly is unlikely, since we do not believe that the government would bring ratification to a vote unless it felt assured of an Assembly majority. Since French failure to ratify EDC in the next six months or so would probably mean the virtual abandonment of the present treaty, we believe that France, fearful of the impact on US policy toward Western Europe, would seek to gloss over failure to ratify by expressing willingness to discuss some form of West German rearmament in association with NATO. Such negotiations would almost cer- tainly prove long and difficult, with France insisting on detailed safeguards at least as effective as those contained in EDC, thus in- curring the grave risk inherent in the pro- longed delay in the realization of a German military contribution to the defense of West- ern Europe and intensifying Franco-American and Franco-German frictions. In these cir- cumstances, the cohesion and effectiveness of NATO itself would-be endangered. 7 PROBABLE FRENCH POLICIES IN INDOCHINA 37. The gradual deterioration of French will to continue the Indochina war has been checked at least temporarily by the Laniel- Navarre Plan and by the greatly increased US financial assistance. The French are rein- forcing their own units, accelerating-the build- up of Indochinese national armies, and seek- ing to regain the military and political initiative. Despite strong parliamentary op- position, the French are likely to implement their promises of independence for the three states, on the basis of voluntary association With France in the French Union. No French government could continue the war outside of this French Union framework. 38. However, the implementation of the Laniel-Navarre Plan will probably be the last major French offensive effort in Indochina. We believe that even if the Laniel-Navarre Plan is successful, the French do not expect to achieve a complete military victory in Indo- china. They probably aim at improving their position sufficiently to negotiate a settlement which would eliminate the drain of the Indo- china war on France, while maintaining non- Communist governments in the Associated States and preserving a position for France in the Far East. 39. In view of its strong desire for a reduction of its Indochina commitments and for a solu- tion of the Indochina problem, France will continue to seek discussion of the Indochina issue in international conferences and will al- most certainly favor a conference between the US, UK, France, the USSR, and Communist China on Far East issues. We believe that in such conferences, or in any direct negotiations with the Viet Minh if necessary to obtain an agreement, France would press the US to con- sent to French acceptance of terms which the ' For a more comprehensive statement of the sit- uation in Indochina see NIE-91, "Probable De- velopments in Indochina through Mid-1954," 4 June 1953; and NIE-63. However, these papers were published before the Laniel-Navarre Plan developed. The estimates with respect to French policy in Indochina contained therein are super- seded by paragraphs 37-41 of this estimate. Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 ikikinhaa US would regard as weakening the Western position in Indochina and thus in Southeast Asia as a whole. 40. If no negotiations take place within the next 18 months we believe that France will take measures to reduce its Indochina com- mitment. However, in spite of the burdens of the Indochina war, France recognizes that it derives substantial advantages from its pres- ence in Indochina and would probably con- tinue the war in Indochina, provided that: (a) the US assumed virtually the entire financial burden of the war; (b) the planned buildup of Vietnam forces permitted reduction of French forces; (c) the Indochina states maintained their association with France in the French Union; and (d) France continued to receive US support for its position in Europe and North Africa. 41. In the event that the above French condi- tions were not largely satisfied, France would probably propose UN intervention or direct military participation by the US. Failing in this, France would probably seek in time to negotiate directly with the Communists for terms which would permit withdrawal with minimum loss. PROBABLE FRENCH POLICY IN NORTH AFRICA 5 42. In French North Africa, on the other hand, we believe that France is determined to retain control, by force if necessary, since France regards this area as the most vital part A fuller examination of France's North African policy is contained in NIE-69, "Probable Develop- ments in North Africa," 12 September 1952. 8 of its overseas empire. France's deposition of the Sultan of Morocco, its repression of nationalist elements in Morocco and Tunisia, and its insistence on measures which enhance the role of the French "colons" in these areas indicate France's determination to maintain its position in North Africa. 43. The deposition of the Sultan has tem- porarily bolstered French control in Morocco, but will probably result in driving the nation- alists to adopt more extreme positions. The French will probably make some concessions toward local autonomy in both Tunisia and Morocco, but these concessions almost cer- tainly will be neither timely nor compre- hensive enough to satisfy the nationalists. In particular, the nationalists will be antagon- ized by French insistence that the "colons" be given a disproportionately large influence in local government. Nevertheless, we believe that French security capabilities will forestall the development of any serious threat to French control during the period of this esti- mate. ? 44. Accordingly, we do not believe that the security of US bases in French North Africa will be seriously threatened during this period. However, widening differences between France on the one hand and the North African Na- tionalists supported by the Arab-Asian coun- tries on the other, confront the US with a policy dilemma and will throw increasing strains on US relations with both sides. French resentment of any US support of the nationalists will be enhanced by French sus- picions that the US is seeking to advance political and commercial ambitions of its own in North Africa. 90,8011fPf Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 MEW Declassified and Approved For Release 2012/09/18: CIA-RDP79R01012A002000030001-7 t ?