WEEKLY SUMMARY #94

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Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP78-01617A002300200001-3
Release Decision: 
RIFPUB
Original Classification: 
S
Document Page Count: 
23
Document Creation Date: 
December 27, 2016
Document Release Date: 
May 22, 2013
Sequence Number: 
1
Case Number: 
Publication Date: 
March 17, 1950
Content Type: 
REPORT
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PDF icon CIA-RDP78-01617A002300200001-3.pdf710.28 KB
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fl Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 D SE ?coP?'NOs 8 WEEKLY SUMMARY IDs zet F.O. 001 no G-.1=7G:; 13 class. ~i Glees. C :: :: TD: ;S 3 0 DDA F-=o, 4 Apr 77 Auth: DDA PYG. 771'.763 Date: 3I-t-10. Ay:. CENTRAL INTELLIGENCE AGENCY ~'caM v f.~fi #Fr l~roA Cec SE RET Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 3 $d~ Declassified and Approved For Release 2013/05/22 : 6IA-RDP78-01617A002300200001-3 1. This publication contains current intelligence exclusively and therefore has not been coordinated with the intelli- gence organizations of the departments of State, Army, Navy, and Air Force. 2. This copy may be either retained, or destroyed by burning in accordance with applicable security regulations, or returned to the Central Intelligence Agency. This document contains information affecting the na- tional defense of the United States within the meaning of the Espionage Act, 50 U.S.C., 31 and 32. as amended. .Its transmission or the revelation of its contents in any manner to an unauthorized person is prohibited by law. n Page 1 ,,WESTERN' EUROPE ,. 2 EASTERN EUROPE ,...,, 5 NEAR EAST m AFRICA ............ 7 FAR EAST .., .10 '.WESTERN HEMISPHERE..,...,,.,.11 ARTICLES Current Soviet Tactics in Germany . , ... , , , , . 13 Tibet Invasion. Prospects 0 .... , . .. , , , . , ,15' e. O SECRET M Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 a a H I G H L I G H T S Kremlin optimism concerning the Soviet power position in. the world is reflected both in the tone of the recent pre -election speeches and in current Soviet tactics in Germany. This increased confidence appears to be basedvan a Kremlin estimate that the "consolidated" peoples democracies are gaining strength, on recent Soviet atomic achievements, and on the Communist vic- tory in the Far East (see page 5). In Germany, this con. . fidence has recently been evidenced by an uncompromis- ing designation of the East German regime as the sole focal point of German unity and by Soviet insistence upon y~{ making political progress toward the establishment of a Peoples Democracy in East Germany (see page 13). The USSR is unlikely at present to go`so far as to con- clude a separate peace treaty with the East German Gov- ernment unless the Western Powers make a separate agreement with West Germany. Prospects appear to be decreasing at present that India and Pakistan will come to armed conflict over the Bengal situation (see page 8). Although the area will con- tinue to be a source of disturbance, both sides appear to be fully aware of the grave military and political conse- quences which would result from armed hostilities. Mean- while, Prime Minister Nehru's conduct of India's affairs appears to be meeting with strong opposition both within and without the Government (see page 7). Shaken in his o hope that,hi.s leadership would be accepted both in India- and throughout Asia, Nehru may eventually be persuaded by his powerful political opposition to adopt a more real- istic and possible pro-Western policy. a a -1- a SECRET Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 ri Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 NATO Prospects Some. strengthening of the still embryonic .North Atlantic Treaty Organization-(NATO) may soon take place as a result of the widespread desire, at both public and governmental levels, for greater Western .unity 'in the face of increased Soviet aggressiveness. UK Foreign, Minister Bevin, for example, feels that immediate consideration should be given. to creating amore effective and coordinated organization. Most European countries strongly favor strengthening the NATO as a means both of committing the US more fully to support of Western Europe and of assuring the continuation of US military and even economic aid. The trend will probably be toward the use of the NATO as the focal point for stressing the close inter-relationship within the Atlantic community and its common interests in the cold war. The sphere of NATO activities could be readily expanded from primarily military to political and economic cooperation. The high-level NAT Council, composed of the .foreign ministers of -NAT signatory nations, will probably be used increasingly as a forum for coordination of Western cold war policies; and new groups may be formed within .the NATO to deal with common problems. .Trade Control. Evasion Western attempts to control trade between West Germany and the .East German. republic (GDR) are being evaded by West .German industrial interests, who simply fail to channel .transactions through.the interzonal. trade office. Although the moratorium on licenses for steel shipments to the Soviet zone is in force, a brisk trade,, estimated. to be more than the value of the trade agreement in this cate- gory, is being carried on through private arrangements with the GDR. For example, the moratorium has not deterred West German steel interests from granting a private credit account of at least 15 million deutsche marks to the GDR, and manufacturers are reportedly underbidding each other in efforts to obtain steel orders from the Soviet zone. A major reason for this evasion of trade controls seems to be the manufacturers' desire, to develop and expand existing markets in the GDR and the Soviet bloc countries. Markets for the bulk of all. :West German steel shipments to the GDR could have been found outside the Soviet orbit. At present there seems to be no desire on the part of the West German government authorities to put a halt to these extra-legal transactions. The continuation of this trade control evasion will contribute to the weaken- ing of other controls over strategic goods moving to the east and will also remove a strong Western bargaining point for dealing with the USSR on matters concerning access to Berlin. Tension Eased The danger of government collapse has been temporarily reduced by the passage of the anti-sabotage bill and the gradual sub- siding of the current strike wave. Although Communist threats to spread social disorder and to sabotage-MDAP have momentarily unified the government, controversial SECRET rl Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 Ii Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 SECRET FRANCE D domestic issues will soon arise in Parliament and prob- ably cause renewed disagreement among the members of the present coalition. The Communist threat. has made. the Socialists and Radical Socialists reluctant to be responsible for the fall of the government, but. their re- cent, defection from the Cabinet has left Bidault with an unstable minority government. Moreover, the conditional O support given Bid'ault by the Socialists could lead to a political crisis without warning. The Radical Socialists could also refuse to support the government on a wage- price issue, but. the party will probably hesitate to take ,this step prior to the reform of the present electoral law. BELGIUM Leopold Issue The critical split in the Belgian Cabinet and the sharp dissension in Parliament resulting from King Leopold's faililre to receive a sub- stantial majority in the recent "popular consultation" will uu make a final settlement of the Leopold issue most diffi- cult. Although 57 percent of the total vote favored Leopold's return, he was decisively defeated in Brussels and in the highly important industrial Walloon provinces. In addition .to strong Socialist and Communist opposition, certain Catholic and Liberal Ministers within the Government are against the King's return.' If Premier Eyskens' resigns as he has threatened to do if Leopold returns,:-the pro- Leopold forces would have extreme difficulty in forming a stable Cabinet.. Although the easiest solution would be for Leopold to abdicate voluntarily, the King's stand has been unyielding during the past five years of bitter con- troversy and he will probably be most reluctant to abdicate during the present controversy. a SECRET Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 a Cold War The tone of pre-election speeches of Polit- buro members indicates a hardening of the Kremlin's attitude toward the West. The Soviet attitude is apparently based on the Kremlin.'s estimate of the increased strength of the "consolidated" peoples democracies, Soviet atomic achievements, and the tremendously changed situation' in the Far East. The Kremlin is also apparently convinced that the "economic crisis" which it believes began in the US in October 1948 is growing steadily worse. Molotov stated in his speech that the fate of peoples is being determined in the first place by the economic development of the state and that the economy of the US is rolling toward a precipice. The pre-election, speeches also indicate that the USSR will continue to exploit any weakness in the Western economies in order to hasten the day of Western economic collapse. Moreover, as the Soviet orbit economies become stronger; the USSR will prosecute the cold war with increased vigor. Farm Control Further measures to increase the Soviet war potential by securing complete state control over agriculture may be instituted soon. The most important Soviet measures will probably bring about drastic reductions in private use of the land and individual owner ship of livestock. The results of increased state control over land and livestock would assure a better supply of food to the industrial population and armed forces by forc- ing Soviet farmers to spend virtually all their time. on collective farm production. SECRET Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 Centrist Coalition The proposed centrist coalition govern- ment under the 63 -year old Republican revolutionary hero, General Plastiras, is encountering per- sistent opposition from rightist circles. Apparently assured of the support of some 55-60 percent of the new'Parliament, the three center leaders (Venizelos, Papandreou, and Plastiras) have agreed on a moderate program which specifically recog- nizes the constitutional position of the Crown and-promises a continuation of a firm pro-Western and anti-Communist policy. These guarantees, however, have not modified rightist and Palace objections to Plastiras. The King has already made unsuccessful attempts to enlist US support in splitting the new ?;% centrist bloc, and he may well try to delay the appointment of a Plastiras government as long as possible in the hope that the center bloc can be at least: weakened, if not broken up,-in the meantime. Although eventually the King would probably be forced to name a Plastiras government, the new centrist coalition would remain vulnerable to opposition pressures. The wage-price issue, which might well furnish the government's first real test in view of the recent sharp rise in inflationary tendencies, provides a particularly good opportunity for a joint onslaught on the government by the right wing, which dominates the top trade union leadership, and the ultra-leftists in the Chamber. The failure of a centrist government under'this or any other of the numerous post- election stresses would almost certainly leave Greece without any other workable governmental combination within the press ent Parliament. New elections would then be an imminent probability, this time under a majority system of voting so that a "strong" government could more easily be formed. Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 Nehru Under Fire Prime Minister Nehru's conduct of . India's affairs is'encountering strong opposition from both. within and without the government. Deputy Prime Minister Patel, supported by a majority of the Cabinet, has become sharply'critical of several'major aspects of current: Indian. policy; reportedly charging that.. Nehru has: (1) tossed away the potential benefits of closer ties with the US and UK in the unrealistic hope that India might achieve lasting friendship with Communist China and the USSR as well; (2) failed to make a sufficiently deter- mined effort to come to terms with Pakistan; and (3) fright- ened away foreign and domestic investors with the spectre of socialism at, a time when India has urgent need of private investments above and beyond the funds the government itself can. obtain. Meanwhile, Nehru is being pressed to take a more belligerent attitude toward Pakistan by extrem- ist anti-Moslem elements; notably in West: Bengal and among the Sikh and Punjabi. refugees. This double attack on. Nehru's policies has un- doubtedly shaken his hope that his leadership would be accepted within. India and throughout: Asia. His current mood is apparently one of frustration and indecision: although he privately concedes Patel's contention that India has no real friends, he stubbornly refuses to change his foreign policy, and although he asserts that capital has noth- ing to fear from his government, he fails to support legis- lation which would make those assurances convincing. The fact that a powerful group in the Cabinet favors a more realistic policy, ?a view which evidently stems from the sober fears of the business community about continuing. SECRET Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 SECRET political and economic tension, shows promise that a more stable and more pro-Western India may develop. Until Nehru can be persuaded to come to terms with Patel's group, however, the present intra -governmental dissenstion will dissipate the energies of India's leaders and will make the government more vulnerable to pres- sure from those opposing any compromise with Pakistan. Bengal Situation The possibility of armed conflict between India and Pakistan over the Bengal situation seems to be decreasing for the moment. Although India has sent additional troops into the Calcutta area, the Indian Government is thoroughly aware of the grave military and international consequences which an invasion of Pakistan would entail. Pakistan, for its part, realizes that it would have little chance of winning any war with India. The situation in East and West Bengal, however,. will remain. a source of continued disturbances. Over- population, the existence of large religious minorittes in both provinces, and the effects of economic warfare be- tween India and Pakistan provide a strong basis for social unrest. In addition, the Bengalis are a people noted for . a volatile temperament and predisposition toward violence. Thus far, the persecution. of Hindus In West Bengal has apparently been more widespread than the maltreatment -of the Moslem minority across the border, and resentment is strongest among the West Bengal Hindus. The principal danger, consequently, is that new anti-Hindu outbreaks in East Pakistan may not only provoke retaliation in West Bengal but also enable the Bengali, leaders and various reactionary Hindu groups to bring strong pressure for Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 f Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 SECRET; a intervention on the part of the Indian Government. A number of West Bengali groups would welcome such an opportunity to press for action for the reincorporation of East Bengal into India. FRENCH NORTH AFRICA Pro-US Sentiment Increased French sensitivity to any indication of US influence on. Arab activities is becoming more apparent as North African nationalists make outspoken bids for US support. The French feel that the US attitude toward North African colonial countries is unrealistic and that the Atlantic Charter has encouraged unrealizable ambitions among North African natives. The North Africans, for their part, believe the US policy of avoiding friction with the French does not take into consideration the importance of the Arab attitude in case of war with the East. Arab nationalists say that they are not yet committed to either the West or the Soviet sphere and that they are open to persuasion by concrete examples of US friendship. Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617AO02300200001-3 Ho's Orientation Although Moscow-trained Ho Chi Minh has never been proven to be eithera Tito-like nationalist-or a Moscow -dominated Communist, recent developments may indicate his sub- servience to the Kremlin. Broadcasts from the Ho- coritr olled radio. in Indochina have reportedly attacked Tito and failed to mention the diplomatic recognition .extended by the Yugoslav Government to the Ho regime. French authorities have also reported that Ho is on his way to'Peiping and Moscow to sign treaties of alliance with Mao Tse Tung and Stalin. Ho's brief flirtation with Yugoslavia regarding recongition may have been the result of. a mistake by his Bangkok representative, who made the initial approach to Tito along with a general invitation to all nations. Election Issue President Rhee's supporters in. the Korean National Assembly have de- feated a strong movement to reduce the powers of the executive and establish a "responsible Cabinet." The move to reduce executive powers began with the conser- vative, wealthy, and relatively talented Hankook-Democratic Party but drew support from all factions in, the Assembly, which has been increasingly critical of administration in- efficiency and police intimidation. Little cooperation can now be expected between the Assembly and the President .until after the next Assembly elections, scheduled for late spring. It is apparent that, despite this victory, $$hee has lost much of his former strong support in. the Assembly. If:Rhee permits a "free atmosphere" during the coming elections, the Hankooks may well win sufficient seats to reintroduce and pass the disputed bill. `I Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 SECRET Improved Stability Prospects for greater stability, in the Caribbean have improved, as a result of the report and recommendations of the Organization of American States (OAS) investigating committee, which has been studying the far-reaching and complex factors contri- buting to unrest in that area. Although ill feeling still exists among the Caribbean countries--the Dominican Republic, for example, has reportedly threatened to break relations with Cuba--the work of the committee has already alleviated tension. If the Council of the OAS, as expected, approves the recommendations, a further contribution toward restor- ing tranquility to the Caribbean will be made. Three of the four countries involved in the controversies which gave rise to the investigation, Cuba, the Dominican Republic, and Guatemala, were found to have been implicated in activities aimed at unseating other governments. The fact that the 'committee's frank report and recommendations are to be made public should have a salutary effect on the govern- ments concerned and will probably cause them to hesitate in the future before indulging in hostile activities against their neighbors, Anti-US Feeling Acceptance by Colonel Jacobo Arbenz of extreme leftist labor and political support in his campaign for the presidency will immediately increase the influence of pro-Communist and anti-US ele- ments in. Guatemala. Recent nationalist anti-US agitation r,r Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 n. which has already damaged US prestige includes attacks against the US-sponsored Institute of Inter-American Affairs and the calculated insult to the US at the recent Caribbean Olympic Games. This growing anti-US senti- ment, which may become a threat to US interests in the area, will be further aggravated, by the recent leftist alignment of Arbenz, whose political commitments will provide anti-US and pro-Communist agitators with a measure of protection during the forthcoming presidential campaign, CUBA Communist Strength The Communists, whose political isolation during recent years had limited their influence in Cuba, have now considerably improved their political position through their recent align- ment with moderate conservative parties in support of the Grau-Batista candidate for mayor of Havana, This align- ment may even result in victory for some minor Commu- nist candidates, and the Communist Party will almost certainly gain votes. Even more important, by using the electoral campaign for propaganda purposes, the Commu- nists will probably be able to win support on certain key issues from their temporary allies, SECRET F1 Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 Current Soviet tactics in Germany reflect both the Kremlin's growing optimism regarding its improved world power position and its increased confidence in gaining eventual control over all of Germany on Soviet terms, These tactics are characterized by an. un.compro- mising designation of the East German regime as the sole focal point of German. unity and by Soviet insistence upon political progress toward the establishment of a Peoples Democracy in. East Germany. This Soviet attitude is evi- dent in.: (1) the demand for absolute acceptance of the National Front policy of German. unity through friendship with the USSR; (2) consistent reiteration by East German political officials that the Oder-Neisse boundary is per- manent, and their acceptance of the recent; Polish decision to evict the German minority; and (3) the purge of the bourgeois parties in. East Germany. The USSR is unlikely to change its present tactics as long as the Kremlin does not foresee participation of West Germany in an effective political and military Western bloc. The USSR is unlikely to conclude a separate peace treaty with the East German Government (GDR) in the near future unless the Western Powers sign a separate peace agreement with West Germany. The USSR could, however, take action short of a formal peace treaty, such as a declared termination of the state of war. Ariy ad- vantages accruing to the USSR from a separate peace treaty at this time would be limited to propaganda and the enhancement of the prestige of the National Front and the GDR. Moreover, the conclusion by the USSR of a separate treaty with . East Germany would weaken the Soviet claim, Declassified and Approved For Release 2013/05/22 : CIA-RDP78-01617A002300200001-3 n. C. based on the Yalta and Potsdam agreements, to a voice in West Germany and the Ruhr. The Kremlin may also be reluctant to conclude a separate peace treaty in the belief that it would lead to the alignment of West Germany with a Western political and military bloc. Continuation of present Soviet tactics in Germany will lead to further political consolidation in East Germany resulting, for all practfcal. purposes, in a one-party system by the time of the scheduled October 1950 elections. At the same time, continued efforts will be made to expand and strengthen the East German internal security force. The USSR is unlikely to undertake actual troop withdrawal or rectification of the Oder-Neisse line, in order to enhance Soviet-Communist appeal in Germany. The current Soviet attitude toward the German problem, combined with con- tinued harassing actions in Berlin, also reduces the like.- . hood of an early Soviet offer to reopen Four Power nego- tiations on Germany. The city of Berlin will remain a "special situation" for the USSR and will probably be sub- jected to increased economic and political pressure in the near future. 76 78 so 82 86 88 90 92 94 96 98 100 102 104 106 NINGSIA K A an B Yarkand 38 Kar hal' arkhlik -. N I N G S A Chieh.m Wu*ei K ' un8 Kho Napa T ae 36 /000 36 1VT 7' 00 K o o Cs /~