CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A001000020001-0
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S
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33
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December 16, 2016
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January 27, 2005
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1
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Publication Date: 
October 4, 1956
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SUMMARY
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Approved For Release 2005/02/14: CIA-RDP79-009220100002000 D CO FIDENTIAII COPY NO. I8 OCR NO. 6114/56 4 October 1956 DOCUMENT NO- L No CHANGE INS LASS. C7 RECL&,SV CLASS. GHANGEO TOi NEXT RE ILEW DATE: REVIEWER ;)-ATE!. CURRENT INTELLIGENCE WEEKLY SUMMARY CENTRAL INTELLIGENCE AGENCY I I I OFFICE OF CURRENT INTELLIGENCE State Department review completed 25X1 OOw DthT1At~ 25X1 25X1 AIB.CIIIVAL "-Z RETUJ vas, 77 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 Approved For-?elease 2005/02/14: CIA-RDP79-00927000020001-0 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 CONFIDLN I IAL jr Approved For Release 2005/02/1 9-00927A0 00020001-0 OF IMMEDIATE INTEREST THE SOVIET-YUGOSLAV TALKS . . . . . . . . . . . . . . . Page 1 Discussions now under way in the Crimea between President Tito of Yugoslavia and leaders of the Soviet Union probably are an attempt to find at least a temporary solution to problems in Soviet-Yugoslav re- lations which have been developing this summer and which stem from fundamentally opposed concepts concerning the doctrine of "independent roads to socialism.',' Soviet leaders apparently feel that they must either modify their soft line toward the Satellites or risk loss of their hegemony in Eastern Europe. Tito would be reluc- tant to accept any trend toward tighter controls. SUEZ DEVELOPMENTS . . . . . . . . . . . . . . . . . . Page 3 In the UN Security Council debate beginning 5 October, Britain and France hope to obtain substantial backing for a Suez settlement along the lines of the 18-nation plan for international control. Six of the 11 council members, including Iran, support the Suez Canal Users' Association and can be expected to support the inter-' national control principle. The position of the other three non-Communist members--China, Peru, and Cuba-- remains in doubt. The USSR will probably veto any Western resolution providing for international control: ARAB-ISRAELI SITUATION . -. . . . . . . . . Page 5 Tension has remained high along the Arab-Israeli borders since the Israeli attack on Jordan on 25 Sep- tember. Iraq thus 'far has done little'in.response to Jordan's request for aid. Egypt has made some prop- aganda gains out of the situation by rushing small arms 25X1 i Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 THE WEEK IN BRIEF 9271000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY NOTES AND COMMENTS POLISH DRIVE FOR INDEPENDENCE CONTINUES UNCHECKED . . . . . . . . . . . . . . . . . . Page 1 Despite indications that the USSR is attempting to slow the pace of liberalization in the Satellites, Poland shows no sign of altering its course of seeking increased internal freedoms and independence from the Kremlin. This policy has been a factor in the conduct of the Poznan trials, which generally have been open and free, partly because of the influence of Western public opinion. PROSPECTS FOR HATOYAMA VISIT TO MOSCOW . . . . . . . . . . . . . . . . . . . . . . . Page 2 Japanese prime minister Hatoyama plans to go to Moscow on 6 October in the hope of restoring diplomatic relations between Japan and the USSR without a formal peace treaty. While the USSR has agreed to continue negotiations for a peace treaty including a territorial settlement after relations are renewed, this is un- likely to placate Hatoyama's opponents, and they may break away from the government party on the grounds that Japan's territorial claims have been sacrificed. ii Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 THE WEEK IN BRI$F Approved For Release 20 25X1 Approved For Release 20~ R"kk0927L0A1000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 PORTUGAL STALLS AZORES BASES AGREEMENT . . . . . . . . . . . . . . . . . Page 5 Portugal is stalling on negotiations for renewal of the Azores bases agreement, which expires at the end of 1956. Portuguese leaders excuse the delay by ex- pressing concern over a possible change in the American attitude on colonialism, particularly Goa, and by pointing to the shifting defense picture in Western Europe. THE TANGIER CONFERENCE . . . . . . . . . . . . . . . . . Page 5 The Moroccan government has called a nine-power conference for 8 October to end the international regime in Tangier. The eight foreign governments which have administered Tangier--France, Spain, Britain, Italy, Portugal, Belgium, the Netherlands, and the United States--seek to retain an international organ- ization of some sort to protect their economic interests in the area. ALGERIA . . . . . . . . . . . . . . . . . . . . . . . . Page 6 An upsurge of terrorism in Algeria during September has strengthened the hand of those critics of the French military program who feel immediate political action by Paris is necessary to save the French position in Algeria. DISTURBANCES LIKELY IN CUBA . . . . . . . . . . . . . . Page 8 The Cuban government is alert to the possibility of revolutionary activity in the near future. President Batista probably no longer enjoys the solid support of the army, but there are as yet no signs of widespread SOVIET PLANS FOR AN EARTH SATELLITE . . . . . . . . . . . . . . . . . Page 9 Soviet representatives at two recent international scientific meetings tended to be noncommittal on the USSR U plans for an earth satellite. This reticence, which contrasts with previous announcements, may mean that the Soviet Union has decided to avoid international commitments which would require it to reveal its techniques in the guided missile field, or merely that a detailed announcement is to be held off until a successful launching is more certain. Estimates give the USSR the capability to launch a small earth satellite successfully by early 1957. 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 THE WEEK IN BRIEF Approved For Release 2005/02/1 CIA-RD-P79-00927A k CRE T 20 000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 NEW SOVIET YOUTH SQUADS COMBAT CRIME . . . . . . . . . . . . . . . . . . . . . . Page 10 The reactivation ofo,Soviet Communist Youth League (Komsomol) "light cavalry" squads in the Odessa Oblast of the Ukraine, announced on 23 September, highlights the serious problem of law enforcement in the USSR. One of the major functions of these units presumably will be to engage in surprise raids on places of amusement or public assembly to deal with acts of "hooliganism" and crime. COMMUNIST CHINA INCREASES UNIVERSITY ENROLLMENT . . . . . . . . . . . . Page 10 In an effort to increase the supply of technical personnel, Peiping has almost doubled new enrollments in institutions of higher learning and prohibited industry and administrative organizations from re- cruiting middle school graduates capable of university work. The program is a 180-degree turn from the 1955 policy of encouraging students to discontinue their schooling and join the labor force. TRANSPORT PROBLEMS IN COMMUNIST CHINA Rail congestion and traffic tie-ups in Communist China during the past month have slowed freight movement and in some areas have temporarily reduced indust-rial output. EAST GERMAN SHIPPING TO BY-PASS WEST GERMANY A new East German canal under construction since April will link the Elbe River and the Baltic Sea and permit diversion to the East German ports of Wismar and Rostock of shipping which now must pass through West Germany. The new canal will parallel the existing Elbe-Trave canal running from the Elbe to the port of Luebeck in West Germany, and is further evidence that the East German regime envisages a long-term division SECRET iv Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 THE WEEK IN BRIEF Page 12 25X1 25X1 Approved For Release 2005/02/1$ VR 79-00927AQe 1000020001-0 PATTERNS AND PERSPECTIVES COMPOSITION OF THE CHINESE COMMUNIST PARTY'S GOVERNING BODIES . . . . . . . . . . . . . . . . . . . Page 1 The composition of the Chinese Communist Party's governing bodies, as revealed at the party's eighth congress, confirms that Mao Tse-tung continues to dominate the party. The proceedings at the congress also pro- vided nearly conclusive evidence that Liu Shao-chi and Chou En-tai have retained the second and third positions, and that Teng Hs$aa=b1nff has ned the top handful of party leaders. PROBLEMS FACING THE WEST GERMAN GOVERNMENT . . . . . . . Page 4 The Bundestag session that opened on 27 September will serve largely as a sounding board for the 1957 national elections in West Germany. Each party will seek to extract the utmost in political benefit from controversies over reunification, rearmament and European integration. Chancellor Adenauer's popularity has waned somewhat,and his Christian Democratic Party is on the defensive. He may feel forced to accept com- promises incompatible with his previous strong pro- CURRENT INTELLIGENCE WEEKLY SUMMARY GREECE AND THE CYPRUS PROBLEM The Greek government and the opposition are antie- ipating a major crisis in November, which they expect to follow a decision by the UN General Assembly on whether or not to consider the Cyprus issue. Prime Minister Karamanlis is believed to be canvassing possible courses of action to meet the test, which is bound to .come no matter what the assembly decides, while opposition leaders are co-operating in a campaign to overthrow him and force new elections. Page 6 SOVIET BIOLOGICAL WARFARE DEVELOPMENTS.. . . . . . . Page 7 Recent indications point to intensified Soviet interest in biological warfare. The USSR's defensive capability in this field is restricted by deficiencies in sanitation, public health and crop protection. The Soviet Union is probably attempting to acquire a capability adequate for retaliation in kind against a BW attack. SECRET v Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 THE WEEK IN BRIEF 25X1 Approved For tease 2005/02/1,5E1'R79-00927!"000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 25X1 SECRET Approved For Release 2005/02/4-: CIA-RDP79-00927AO01000020001-0 THE WEEK IN BRIEF Approved FQLaplease 2005/0N flff P79-009201000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY OF IMMEDIATE INTEREST THE SOVIET-YUGOSLAV TALKS Discussions now under way in the Crimea between Presi- dent Tito of Yugoslavia and leaders of the Soviet union probably are an attempt` to find at least a temporary solu- tion to problems in Soviet-Yugo- slav relations, which stem from fundamentally opposed concepts concerning the doctrine of "independent roads to social- ism.' Background of the Dispute Although Tito's distrust of the USSR was not completely overcome during his visit to Moscow last June, his present suspicions are primarily the result of a series of events which occurred during the summer months. Despite their initial public concurrence with the Soviet line--a line which has since been reversed--Yugoslav officials apparently were dis- turbed at the harsh Soviet re- action to the Poznan riots in Poland. The Yugoslavs have been equally concerned over the apparent change since June in Soviet propaganda concern- ing international Communist re- lations. Tito's concept of genuinely "independent roads to socialism," ostensibly ac- cepted by the Soviet leaders in June, has, in essence, been contradicted by Moscow's sub- sequent emphasis on interna- tional Communist unity and by its outright criticism of "national Communism." The related Soviet change in attitude toward the Satel- lites in general, however,ap- pears to have been the major area of friction. The USSR this summer warned the Satel- lites that limits to the liberalization programs--pro- grams which apparently have been actively encouraged by Yugoslavia--had been trans- gressed. Marshal Bulganin visited Poland in July and cautioned a Warsaw audience that "antiparty" tendencies were afoot and must be halted. The Polish press, Bulganin claimed, exhibited such trends. In addition Bulganin stated-- contrary to the official Polish view--that the Poznan riots were instigated by Western imperial- ist agents to exploit such un- healthy situations. As an apparent follow-up to this form of warning, the central committee of the Soviet Communist Party on 3 September sent a letter to the Satellites, admonishing them that the USSR, not 'Yugoslavia, is the correct model to follow in building socialism. According to this letter, the Yugoslav concept of the "independent roads to socialism" thesis is incorrect and is not to be accepted by the Satellites. Already upset by these developments, the Yugoslavs received an additional jolt in early September from what they considered to be un- warranted Soviet interference in their internal affairs. Yugoslavia this summer had placed on trial for treason a number of former Yugoslav party officials who had defected to the East after the Yugoslav- Cominform break in 1948. Soviet and Satellite press coverage of these trials, considered in SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART I OF IMMEDIATE INTEREST Page 1 of 5 Approved Felease 2005/0~11rc1[C.l P79-00901000020001-0 Belgrade to be unfriendly in tone and misleading in substance, was publicly attacked by the Yugoslavs as being "Cominform- ist -inspired," and as a direct attack on the Tito regime. The Soviet Dilemma There may be differences among the Soviet leaders cone cerning Khrushchev's over-all liberalization policies, but the hierarchy probably is un- animous in the opinion that some form of action must now be taken to strengthen Soviet con- trol over Poland and Hungary, to halt the trend in those countries toward overdemocrati- zation and independence. It was evidently considered advis- able to make these impending changes known to Tito. Although presumably taken immediately to heart in Czecho- slovakia, East Germany, Rumania, Bulgaria and Albania, Soviet warnings to the Satellites this summer were apparently largely ignored in Hungary and actively resisted in Poland, reactions which must have produced pro- found shock in Moscow. The de- mocratization trend in Hungary has accelerated during the past month and, according to the American legation in Budapest, the situation is dangerously close to getting out of hand. Poland's internal democratiza- tion program has gone ahead without visible pause; the re- gime is apparently encouraging a new and decidedly more inde- pendent view of Poland's rela- tions with the USSR and, simul- taneously, a closer and more favorable look at both Yugoslav independence and economic practices. The USSR is faced with a dilemma of major proportions by these developments in the Satellites. The decision to adopt a tougher attitude to- ward at least Poland and Hun- gary will, if it is to be suc- cessfully implemented, threaten the efficacy of the USSR's general foreign policy line of relaxation and peaceful coex- istence. Failure to act deci- sively, on the other hand, might inevitably lead to a not-too- distant choice between military intervention or a loss of control over some of the Satellites. Tito's Trip Tito's sudden trip to the USSR on 27 September, following eight days of conversations with Soviet party first secretary Khrushchev in Yugoslavia, was reportedly the result of an urgent, last-minute decision. According to Yugoslav officials, Khrushchev's attitude, as re- vealed during talks at Brioni, was uncompromising and reflected an almost complete reversal of earlier Soviet pronouncements concerning both Yugoslavia and the Satellites. Tito reportedly threatened to make the whole dispute public; this allegedly was countered by Khrushchev with his invitation for Tito to visit the USSR and to hold talks with other Soviet leaders. Tito's acceptance apparently was predicated on his belief that every feasible effort must be made to preserve the Soviet "new look" toward his own country and the Satellites. Before reaching any kind of agreement with the USSR, Tito, at a mini- mum, would.,probably insist that the USSR assure him of its genuine. acceptance of the legit- imacy of Yugoslavia's independent Communist role and withdraw its recent warnings to the Satellites that Yugoslavia is SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART I OF IMMEDIATE INTEREST Page 2 of 5 --Approved ForrWease 2005/02/14: CIA-RDP79-0092777801000020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY not a model for these countries to follgow, The Soviet leaders, for their part, presumably invited Tito to the Crimea in order to persuade him that a "get- tough" policy toward at least two of the Satellites, Poland and Hungary, is absolutely necessary if Communist power in those countries is to be preserved. Implementation of this new policy would be made doubly difficult if it were actively resisted by Yugoslavia, whose prestige and influence in Poland and Hungary has grown .considerably during recent months. Yugoslav support for a somewhat harder policy in these countries, on the other hand, might soften the appear- ance of a reversion to Stalinism and might also, by facilitating the Soviet task., reduce the harshness of the new measures, If the USSR proposes--as some press reports allege--that some new form of international Communist organization be formed with Yugoslavia as a member, Tito would probably resist such a plan. He believes he can exert his ideas and influence most effectively through bi- lateral relations with other Communist parties, rather than through an organization which the most powerful member, the 25X1 USSR, u dominate. 25X1 In the UN Security Council debate beginning 5 October, Britain and France hope to ob- tain substantial backing for a .Suez settlement along the lines of the 18-nation plan for international control. Six council members, including Iran, support the Suez Canal Users' Association (SCUA) and can be expected to support the .principle of international rule. The position of the other three non-Communist members,-- China, Peru, and Cuba-- remain in doubt. The USSR will probably veto any Western resolution providing for international control. Foreign Minister Shepilov, who arrived at the UN on 3 October, told reporters that the West's "hot-headed and im- practical projects" were no way to a solution of the Suez dis- pute. He added that the Security Council debate could achieve "serious progress," if the par- ticipants displayed the necessary "realism, mutual understanding and trust." Moscow will probably rely on the Egyptians to defend their own case effectively. The Soviet delegation will work very closely with the Egyptian SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART I OF IMMEDIATE INTEREST Page 3 of 5 Approved FQ&&elease 2005/ 4t jDP79-0092 601000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY delegation for a co-ordinated approach, at the same time keeping the door open to other means of negotiation. Moscow's propaganda continues to men- tion, though with reduced em- phasJs, . a six-power conference and the Egyptian proposal for a 45-nation conference, as the best means for a solution to the Suez dispute. Egyptian Position The Egyptians have sent a strong delegation to the UN debate amid many indications that they hope the debate will provide a setting for negotia- tions leading to an acceptable settlement. This apparent de- sire for negotiations is not accompanied, however, by any indication that Egypt's posi- tion on the canal problem has shifted. Egyptian spokesmen still insist that Egypt must control and operate the canal. Cairo is willing to negotiate on details concerning inter- national rights of canal transit. Canal operations have generally proceeded smoothly. On 2 October, two British ships had accidents which caused minor traffic delays. Press reports from Port Said state that the first Soviet pilot guided a vessel in the canal on the same day. Seven other Soviet pilots reportedly have passed their qualifying examinations. Canal authorities now claim to have a force of over 200 pilots either on duty or in training. If this claim is true, the Egyptian admin- istration has about the same number of pilots as the old Suez Canal Company just before nationalization, although not all the present pilots can handle large vessels. British and French Position The possibility that force will be employed to resolve the dispute seems to have receded. Prime Minister Eden and Premier Mollet have agreed that military action would be resorted to only in the event of almost total interruption in canal traffic or of developments in Egypt which would convince British public opinion of the necessity for military action. the canal. While 15 of the 18 nations that backed the earlier West- ern plan for international con- trol have formally joined SCUA, there is no agreement on how to bring Nasr to accept inter- national control. London evidently has come to believe that the users should send a maximum volume of ships through the canal, while withholding tolls as much as possible, to test Egypt's ability to operate 25X1 25X1 25X1 SECRET 0927A0010000Page -0 of 5 PART I Approved For Release OF IOMMEDIATEC~4'~~ 9 Approved Foc. (ease 2005/Q2 tAffDP79-0092T,p,9'01000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 25X1 Tension has remained high along the Arab-Israeli borders since the Israeli attack on Jordan on 25 September. After much debate and queries to Britain and the United States, Iraq appears to have decided to do little or nothing for the time being about Jordan's request for aid. The Egyptians, however, have made some propa- ganda gains out of the situa- tion by expediting small arms and ammunition to Jordan by air. The Jordanian foreign minister's mission to Baghdad appears to have foundered on Iraq's reluctance to risk provoking Israel or to give away any of its own hard-won equipment. Although Iraqi premier Nuri Said rejected at once Jordan's request for a division of Iraqi troops, he did indicate he would like to establish a military supply base in Jordan and possibly to send a "guard force" to look after Iraqi materiel. The Iraqi chief of staff, however, has indicated that no Iraqi troops will be sent to Jordan until there has been an agree- ment with Amman on joint mili- tary planning. This proviso in itself would be likely to postpone any Iraqi troop movement indefinitely. SECRET Cairo was apparently spurred to at least token action by reports of the Jordanian appeal to Iraq. Ambassador Mallory reported that Egyptian transport planes circled Amman ostentatiously before landing their cargoes of arms. Press reports in addition indicated that still another meeting of Arab military chiefs was held in Cairo to consider helping Jordan, and Radio Cairo helped Jordan's King Hussain out by asserting that in the 25 Sep- tember raid, 200 Israelis had been found dead--shot in the back, because they were fleeing the fury of Jordan's defenders. 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART I OF IMMEDIATE INTEREST Page 5 of 5 . Approved For,$,glease 2005/02I'L4I~R-FDP79-00927,4@1000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 NOTES AND COMMENTS POLISH DRIVE FOR INDEPENDENCE CONTINUES.UNCHECKED Despite indications that the USSR is attempting to slow the pace of liberalization in the Satellites, Poland shows no sign of altering its course of seeking increased internal free- doms and independence of the Kremlin. The Polish press has published blunt criticism of. ,Soviet-Polish relations, the leading Polish party newspaper has reprinted statements hail- .ing Yugoslav independence, and various groups continue to urge the adoption of further reforms. The Polish drive for in- dependence appears to be sup- ported primarily by a relatively small portion of Polish society consisting of party members, intellectuals and writers; it does not appear to have wide public participation. Contin- uation of the drive for liber- alization at its present pace, however, may serve to spur the generally quiescent Polish public to take an active part in future developments. Demands for-Change Numerous articles and radio broadcasts have advocated the Yugoslav practice of establish- ing workers' councils with power to run the factories with a minimum of interference from the authorities. Factories run by.such councils would have wide latitude in purchasing raw materials, planning produc- tion, and marketing the finished product, particularly as regards sales abroad. One prominent Polish economist has gone so far as to advocate reliance on a market economy to guide the production of locally run factories. The single-list election system was attacked in a 25 September article in Glos Pracy, organ of the Trade Union Federation, which called for a change in the law to permit the nomination of at least twice as many candidates as there are seats in the Sejm. The trade union paper has not been a lead- ing critic of the regime in the past, which suggests that the idea of election reform may have originated with the govern- ment. Such a change would not mean loss of control by the regime, as the candidates would still be selected by the Com- munist-controlled national front, but it.would allow the people to reject those candi- dates they regarded as least capable of representing their interests. Poznan Trials The regime's liberaliza- tioft policy has influenced the conduct of the Poznan trials, which generally have been open .and free, in response in part at least to the pressure of Western public opinion. Show trials in the past have tended to place the necessity for internal security and control above the advantage of creating a favorable impression. The prosecution has admit- ted that the confessions of the defendants were secured by means of secret police strong-arm methods, and the court has invalidated them as evidence. Defense counsels have elioited admissions from prosecution witnesses that out of fear of police beatings they told the court what their examiners had told them to say. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART II NOTES AND COMMENTS Page 1 of 13 . Approved FoNWease 2005/02/14: CIA-RDP79-00927 01000020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMf 4 October 1956 The judges have allowed the accused considerable freedom to describe the-background of the riots, including the use of anti-Russian slogans. Several Western newspapermen, lawyers and diplomatic observers have been present at the trials and have conversed freely with de- fense attorneys. The defendants are enjoying the fairest trial yet witnessed in a Communist country, although not. all the 25X1 procedural safeguards of Western judicial procedure have been available to them. PROSPECTS FOR HATOYAMA VISIT TO MOSCOW Japanese prime minister Hatoyama now plans to go, to Moscow on 6 October in the hope of obtaining a quick a- greement to'normalize relations between Japan and the USSR. 25X1 25X1 Moscow removed a major ,obstacle to the prime minister's trip by agreeing to a renewal of relations without a formal peace treaty on the basis of five points previously advanced by Japan, to which was added the stipulation that negotiations on the territorial problem would continue follow- ing the restoration of diplo- matic ties. Under the proposed agree- ment, the USSR and Japan would end the state of war, exchange ambassadors, and implement the fisheries pact. The USSR would repatriate.the Japanese citi- zens it has held since the end of the war and would support Japan's admission to the UN. Even opponents of Hatoyama within the ruling Liberal- Democratic Party apparently consider his visit to Moscow inevitable. While they still oppose his mission, their primary tactic now is directed toward obtaining a pledge that the Japanese delegation will insist on the immediate return to Japan of Shikotan and the Habomai Islands, an"act the USSR has previously made con- tingent on the conclusion of a peace treaty. Some Japanese Foreign-Min- istry officials believe that Hatoyama's chief lieutenant, Minister of Agriculture and Forestry Kano, who will ac- company the prime minister, will agree to this stipulation in Tokyo, but will maneuver as he pleases in Moscow. They do not expect the Japanese mission to succeed. in obtaining a concession from Moscow on the territorial dispute, and they believe Kono expects to win credit for nor- malizing relations while leaving to others the onus of subse- quently losing the southern Kuriis. Former prime minister Yoshida feels he could rally a large body of public opinion in opposition to Hatoyama's policies toward the Soviet Union. A Moscow settlement un- reasonably adverse to Japan might well cause the Yoshida faction to withdraw from the government party in the hope that the former prime minister's faction would ride to power under a new conservative a- lignment by exploiting the sacrifice of vital Japanese interests and territorial claims. 25X1 SECRET PART II Approved For Release /R2/AJD%WJg190927A001000020001VRge 2 Of 13 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 Next 1 Page(s) In Document Exempt Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 Approved FoK.BwIease 2005/02/14: CIA-RDP79-009270401000020001-0 SECRET PORTUGAL STALLS , AZORES BASES AGREEMENT Portugal is stalling on negotiations for renewal of the 1951 Azores bases.agreement, due to expire at the end of 1956. Portuguese leaders excuse the delay by expressing concern over a possible change in the American attitude on the colonial issue, particularly Goa, and by point- ing to the shifting defense pic- ture in Western Europe. Technical annexes with new provisions for American air transit- facilities in the'Azores were approved by the Portuguese military in August, following almost a year of negotiation.,. The major changes include per- mission to set up and operate an early warning system, to station an American intercep- tor day-fighter squadron, and to increase the number of American personnel on the islands. These provisions are, however, subject to the approval of Foreign Minister. Cunha and Prime Minister Salazar in the course of negotiations for a renewal of the over-all defense agreement. Ambassador Bonbright be- lieves the Portuguese are hold- ing out on the Azores bases agreement to the last moment as the only weapon at their disposal to "keep the US honest" in relation to Goa. Both Cunha The Moroccan government has called a nine-power con- ference for 8 Octobere to abro- gate the international regime installed in Tangier by the 1923 statute. Morocco hopes to end foreign domination of the city's government which has ex- isted since the eighteenth century. and Defense Minister Santos Costa have admitted that the government was stalling, but both expressed the. hope that an agreement would be reached by mid-November. They cited "the uncertainties of Ameri- can policy in an election year" and the possibility that the colonial issue may be in- jected into the election cam- paign. They are particularly worried about President Eisen-- hower's renewed invitation to Nehru to visit the US and what the US may do or say on Goa. Prime Minister Salazar believes the threat of war in Europe is receding. The Portu- guese are watching closely the current developments regard- ing the American base in Ice- land and the signs of increas- ing emphasis on the use of nuclear weapons in the defense of Western Europe. Lisbon probably will con- tinue to refuse to extend American rights in the Azores for the duration of NATO. Since Portugal succeeded in limiting the 1951 agreement to a five-year period, it is almost certain to insist on a similar limitation in a new agreement. The eight foreign govern- ments involved--France, Spain, Britain, Italy,. Portugal, Bel- gium, the Netherlands, and the United States-seek to retain an international organization of some sort to protect the heavy concentration of foreign population and financial and communications installations SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART II NOTES AND COMMENTS Page 5 of 13 Approved Forease 2005/0c8:~LAIkDP79-009211000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY in Tangier. The most that is hoped for is that the Mor- occan government ? will create a free port and a free trade zone and main- tain Tangier's free money market and banking facilities, Some powers, particularly-Spain, want a Moroccan pledge never to per- mit any form of mil- itary installation in Tangier, 1. The Moroccans would con- sider such a request a derogation of 0 Vejer de la Frontera _tBarbate ar -C 1= bo Trefe l C U , p a ) K Algeciras TBR Punta & (U K) Europa their sovereignty and might be antagonized by the sugges- tion. 1Arclla The greatest boon to Tan- gier's lagging economy would be to continue the free money market. This, however, is' likely to be opposed by France, which considers the free ex- change system of Tangier injurious to the stability of the franc. Retention of the free market will depend in large part on French-Moroccan financial negotiations now under way in Paris. The Moroccan government is. apparently unprepared and is.totally inexperienced in conducting an internationAl conference. Its bargaining strength will lie primarily in strong nationalist demands for reincorporation of Tangier into Morocco, the desire of the An upsurge of terrorism in Algeria during September has strengthened the hand of those critics of the Mollet- Lacoste military program who MILES 25 I I 1 1 1 eight powers to retain Moroccan good will, and potential dis- agreements among the eight, 25X1 In spite of recent concil- iatory statements by the Moroc- can foreign minister, the Moroccans may attempt to ab- rogate the 1906 Act of Algeciras,_ which is the basis for the 1923 statute and existing. limitations on customs duties. The financially distressed Rabat government would like to increase its revenue, Such a demand would again invite the attention of the Soviet Union, which as suc- cessor to Czarist Russia con- siders itself a signatory of the 1906 act, The USSR in- quired of Paris and Rabat in September why it was not in- vited to the 8 October con- ference, San Roque i~ feel immediate political action by Paris is necessary to save the French position in Algeria. Many liberal Frenchmen in Algeria are less.optimistic SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART II NOTES AND COMMENTS Page 6 of 13 Approved For cease 2005/022 c k- DP79-0092 ' 1000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 about the situation than re- siding minister Robert Lacoste. They maintain that the security situation has greatly worsened in the last six months despite the tremendous build-up of French forces. They point to the spread of rebel activity into new areas and the multi- plication of attacks against persons and property, especial- ly in urban areas such as Algiers. Some responsible officials in Paris are also gloomy over the military Picture. These officials admitted privately last month that the "pacifica- tion" claimed for certain areas was considered temporary and meant only that French control had been re-established for the daylight hours. They acknowledged that reports they had received indicated that 90 percent of the Moslem pop- ulation is now infected with the concept of Algerian in- dependence. Developments in the guer- rilla conflict during September appear to sustain these more pessimistic appraisals of the situation. Urban and rural terrorism, economic sabotage, and ambushes of Small military" detachments apparently increas- ed as compared with the two preceding months, while at the same time the total area re- garded as "insecure" expanded, especially in the west. Terrorist acts reached a new high in Algiers, the capital, during the last week of the month. On 1 October, Lacoste warned that the rebels had received instructions to ?t{~NIUH IAHARA Geuta(sp.) Oran Melilla ce An Insecure area Principal area of rebel activity since 1 September 9_ 100 240. 3510 400 SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART IT NOTES AND COMMENTS Page 7 of 13 Approved Fo . (ease 2005/02/14: CIA-RDP79-0092 01000020001-0 SECRET maintain a "climate of terror" during October and could be . expected to step up their effort to widen the breach between the settlers and the Moslems. On the political front, Lacoste has persuaded the French cabinet to defer defini- tion of a new status for Algeria pending further developments in the Suez crisis. Mollet still expects to propose a new Algerian regime to the National Assembly sometime before the end of October.. This plan is virtually certain to fall short of recognizing Algerian inde- pendence and is therefore un- likely either to provide a basis for fruitful negotia- tions with nationalist leaders or, if imposed., to gain any substantial measure of support from the Moslems of Algeria. 25X1 DISTURBANCES LIKELY IN CUBA An increasing number of reports have claimed that rev- olutionary activity in Cuba is planned in the near future; and disturbances therefore seem likely, Batista probably no longer enjoys the solid support of the army,'which is a deter- .mining factor in the situation, and there is some evidence of dissatisfaction, particularly among the younger officers. The American embassy states that a movement led by determined military personnel, relying on surprise and general apathy, might be successful. 25X1 is pose a ha 25X1 current conspiracies in Cuba are related to activities of exiles, including Fidel Castro, whose "26 of July Movement" is also active in Cuba and was purportedly contacted recent- ly by Cuban Communists. There are as yet. no signs of widespread civilian unrest. The comparatively prosperous population appears generally apathetic toward the political situation, and a movement relying principally on civil- ian support would probably have little chance of success. Discontent, however, was heightened by the government's decision to hold partial elec- tions in 1957 in the face.of opposition demands for general elections as soon as possible. Increasing resistance was indicated by the Barquin'con- spiracy and an abortive civil- ianassault on an important military garrison a short time later. 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART II NOTES AND COMMENTS Page 8 of 13 Approved For. Lease 2005/0l4 RDP79-00927 1000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY SOVIET PLANS FOR AN EARTH SATELLITE Soviet representatives at two recent international scientific meetings tended to be noncommittal on the USSR's plans for an earth. satellite. This reticence, which contrasts with previous announcements, may mean that the Soviet Union has decided to avoid inter- national commitments which would require it to reveal its techniques in the guided missile field, or merely that a de- tailed announcement is to be held off until a successful launching is more certain. Estimates give the USSR the capability to launch a small earth satellite successfully by early 1957. At a meeting of scientists organizing plans for the Inter- national Geophysical Year (IGY) at Barcelona from 10 to 15 September, the Soviet repre- sentative commented vaguely that "Russia is studying the launching of an artificial satellite by means of rockets." Previous information had indi- catedthat the USSR would dis- cuss its earth satellite plans in detail at Barcelona. At an international astronautical meeting in Rome later last month, the Soviet delegation similarly made no formal announcement of an earth satellite program,al- though it did propose inform- ally that the USSR and the United States pool their knowl- edge on the subject. In addition, the leading Soviet scientist in the field, L. 1. Sedov, commented at the Rome meeting, "I guess the United States is ahead, on the whole, of all the countries." The successful launching of an earth satellite requires solving many of the same scientific and engineering problems encountered in the development of a long-range ballistics missile, with the added requirement of a long- life Hower supply. Because the Soviet Union has shown a high capability in the guided missile field, earlier announce- inents of plans to launch a satellite appeared feasible. On 16 April 1955, the USSR announced the formation of a Permanent Interagency Commis- sion fcr Interplanetary Communi- cations. This organization, composed of scientists whose competence in such fields as astrophysics and nuclear.energy is internationally recognized, was given the task of organizing work on an automatic laboratory for scientific research in cosmic space. In August 1955, shortly after the United States announced plans to launch a satellite, Sedov, the chairman of this commission, revealed that the USSR had similar plans. A month later, Khrushchev boasted to West Germany's Chan- cellor Adenauer, who was then in Moscow, that the USSR was ahead of America in the building of space satellites, In January 1956, Professor G. I. Pokrovsky, reportedly a member of the Inter- planetary. Communications Com- mission, stated in a Soviet newspaper that the Soviet Union would launch an artificial tellite in 1956 by a method different from the three-stage rocket launching procedure on which American plans are based. While attending a Jet Pro- pulsion Congress in West Germany in 'ehruary 1956, Soviet scien- tists reportedly stated that the USSR planned to launch 12 to 14 satellites in their program. The scientists stated that mal- .function of components and errors in calculation were expected and that they would be satisfied if 50 percent of the vehicles launched attained their cal- culated orbit. Such a program would be comparable to the American program. 25X1 Prepared by 051) (Concurred in by.ORR) 25X1 SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART I I NOTES AND COMMENTS Page 9 of 13 Approved F 0,elease 2005 (0 NEIgkRDP79-0092 001000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 NEW SOVIET YOUTH SQUADS COMBAT CRIME The reactivation of So- viet Communist Youth League (Komsomol) "light cavalry" squads in the Odessa Oblast of the Ukraine, announced on 23 September, highlights the seri- ous problem of law enforcement in the USSR. One of the major functions of these units pre- sumably.will be to engage in surprise raids on places of amusement of public assembly to deal with acts of "hooliganism" and crime. So-called "light cavalry" units of the Komsomol were first formed about 1928 for the pur- pose of aiding party and state organs in eliminating "bureau- cratism" in economic enterprises. Their principal function evi- dently consisted of flying raids, undertaken jointly with special commissions of the COMMUNIST CHINA INCREASES UNIVERSITY ENROLLMENT In an effort to increase the supply of trained technical personnel, Peiping has almost doubled new enrollments in institutions of higher learning. The regime has gone so far as to direct industry and adminis- trative organizations to release employees to study for college entrance examinations and to prohibit them from recruiting middle school graduates eligible for university study. A need for greater enroll- ment in institutions of higher. ?1earning-was first ex- pressed by Chou En-lai at a meeting of the party's central committee in January4 Two weeks later, Peiping announced that a 12-year education program was being drawn up to provide Workers and Peasants Inspection, designed to expose shortcomings in factories or on collective farms. After having served its purpose as a "major form of mass control and criticism from be- low," the "light ca v/airy" was abolished in the mid-1930's. During the past two years, Soviet youth has been called upon more and more frequently to aid the militia (ordinary police) in the struggle against crime and delinquency. The Odessa campaign is reportedly patterned on the successful one launched in Leningrad two years ago. The organization of the "light cavalry" in Odessa Oblast appears designed to glamorize militia assistance activity and extend it to include rural areas. 1,000,000 highly trained per- sonnel of college professor, engineer, and medical doctor caliber. In April, the government announced a goal of 170,000 new college students for this fall, despite.the fact that only 140,000 middle school. graduates were expected to take college entrance examina- tions. The deficit was to be made up by government workers, discharged servicemen, Overseas Chinese and industrial workers. Candidates for the examinations from industry and government were to be released from their .duties three'months before the examinations to afford them time for study. Government organizations, furthermore, SECRET 25X1 Approved For Release 2005/02/14: CIA- D ET0927A00100002000~Oge 10 of 13 PART I I NOTES AND CO Approved Fo Iease 2005/02/14: CIA-RDP79-009 &1000020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SU RY 4 October 1956 were directed not to hire :stu- dents who passed the college entrance examinations. Peiping's announcement on 1 Septeiykber that 180,000 new students--nearly twice the 1955 figure--began the academic year, showed that these emergency measures achieved their immedi- ate objective. However, the basic problem of a shortage of qualified middle school graduates to fill college en- rollment quotas remains to be solved. The regime itself is. partly responsible for this shortage through its past encouragement of students to join the labor force As recently as July 1955, the minister of education, Chang Hsi-Jo, affirmed the government's position that primary and junior middle school graduates should be encouraged to enter the labor force, in TRANSPORT PROBLEMS IN COMMUNIST CHINA Rail congestion and traf- fic tie-ups in widely. separated localities in 'Communist China ,in the past month have slowed freight movement and in some areas have temporarily reduced industrial output. In his 18 September speech at the Chi- nese Communist Party Congress, Chou En-Lai stated that the preseit transport situation was "tense." Wang Shan-tou, director of the State Council's transport . planning office, in his speech before the congress said that Chinese transport in 1956 was being required to .carry a freight volume which originally had been planned for 1957 and that "contradictions" the belief that only a small portion of them could aspire to further education. With this sanction of the govern- ment, peasants took their children from school in order to increase family incomes, and "mass diecontinu.ations" of studies reached 50 percent in some areas. At this year's session of the National People's Congress, however, Chang criticized peasants for the practice, saying it would seriously hinder the state's development of higher education and national construction projects. Continued use of this year's emergency measures will,probably be necessary to enable the regime to attain the 1962 enroll- ment goal of 850,040 set in the recently announced Second Five- Year Plan, a figure more than double this year's total enroll- ment in institutions of higher learning; 25X1 (Concurred by ORR and OSI between transport capacity and transport volume were appearing. China's rail construction and repair program,. although extensive, has barely kept pace with the country's general economic growth, and the in- creasing requirements of in- dustry and mining have period- ically resulted in transport bottlenecks. For the past several years official announce- ments and editorials have re- peatedly pointed out that the volume of rail traffic was approaching the capacity of the railway system. During August and September a com- bination of circumstances produced several-bottlenecks. SECRET PART I IApproved For Release. 2 OTES_ 2 : V& 7.'500927A00100002000 ge 11 of 13 Approved FoZoWease 2005/0201 tCIA:.F3pP79-009 1000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY Han9cho Extensive repair work on the Lanchou and Chengtu lines west to Pao-chi caused con- siderable congestion in that city. EAST GERMAN SHIPPING TO BY-PASS WEST GERMANY A new East German canal under construction since April will link the Elbe River and Baltic Sea and permit diversion to the East German ports of Wismar and Rostock of shipping which now must pass through West Germany, Since purely economic considerations do not seem to justify construction of the canal, the project is further evidence that the East German regime envisages a long- term division of Germany. The new canal will parallel the existing Elbe-Trave canal run- ning from the Elbe to the port of Luebeck in West Germany. Both East German and Czechoslovak shipping will be SECRET 7 i ion, heavy rains following typhoon Wanda early in August caused nu- merous washouts and local tie-ups in the North China provinces of Honan, Shantung, Hopeh, and Anhwei. Since Chinese railroads are opera- ting at a point close to capac- ity, such local congestion will probably reoccur frequently.: In the future a larger pro- portion of rail investment apparently will have to be devoted to improvement of existing lines and facilities rather than to new construction. 25X1 25X1 Approved For Releas 20 5 0 /14 : CIA-RDP79-00927A001000020001-0 4 PART II NOTES AND COMMENTS Page of 13 Approved Far Release elease 2005/02/14: CIA-RDP79-0092ZAf 1000020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY able to by-pass West Germany via the new canal, which is to be completed by 1960. In 1955, about 2,500,000 tons of such trade passed through the West German port of Hamburg, and the possibility of losing this business has.caused some consternation in Hamburg commercial circles. Luebeck, another West German port, is also involved in this trade. The projected canal will be 73 miles long and will be able to accommodate vessels of 1,000 gross tons. It will cost about four percent of the total funds East Germany plans to spend on construction during the current five-year plane In addition, port facilities at Wismar and Rostock, which handled 4,500,000 tons of freight in 1955 as compared with 1,000,000 tons annually before World War II, are now being expanded to provide for the further increase in freight expected when the canal is finished. Critically short supplies of construction materials and manpower for construction will ,SECRET EAST GERMANY International boundary ----Existing canal Limit oT Soviet occupation New canal link to be constructed 4 OCTOBER 1956 probably necessitate a substan- tial diversion of construction material from other sectors of the economy in order to complete the canal within the plan period. 25X1 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART II NOTES AND COMMENTS Page 13 of 13 Approved Fc r$eJ ase 2005/02/14: CIA-RDP79-00922 Q 1000020001-0 SECRET CURRENT INTELLIGENCE WEEKLY, SUMMARY 4 October 1956 PART III PATTERNS AND PERSPECTIVES COMPOSITION OF THE CHINESE COMMUNIST PARTY'S GOVERNING BODIES The composition of the Chinese Communist Party's govern- ing bodies, as revealed at the party's eighth congress, con- firms that Mao Tse-tung con- tinues to dominate the party. The proceedings at the congress also provided nearly conclusive evidence that Liu Shao-chi and Chou En-lai have retained the second and third positions, and that Teng Hsiao-ping has joined the top handful of party leaders. Mao has been the undis- puted leader of the party since 1935. Liu has been his prin- cipal lieutenant and his main spokesman in party affairs since 1945. Chou has been premier of the Peiping regime since 1949 and has been con- sistently ranked third by Pei- ping since 1953. Teng, secretary general of the central com- mittee, joined the politburo only in 1954. Mao is to remain chair- man of the central committee and its politburo. Liu is to be the senior vice chairman, with Chou next in line. These three leaders are to be the top three members of the politburo's new standing committee. Teng is to be a member of the standing com- mittee, and is the new head of the central committee's secre- tariat. Standing Committee The new six-man standing committee., which also includes two party leaders--Chu Te and Chen Yun--who for years have been formally ranked fourth and fifth, will probably come to be the center of power in the party and regime. The com- mittee is similar in composi- tion to the party's old secre- tariat, which had evidently been discharging the wide powers of the politburo between meetings. Mao may turn over the direction of the committee to Liu Shao- chi, who apparently directed the party meetings which pre- ceded the congress and part of the congress itself. The new secretariat, under Teng, probably will be confined to its constitu- tional role of directing the routine work of the central committee. Teng's post will thus be similar to his previous office of secretary general. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART III PATTERNS AND PERSPECTIVES Page 1 of Approved F,QLJaplease 2005/02/14: CIA-RDP79-OO9ZW1000020001-0 SECRET 4 October 1956 The central committee al- so elected a 21-man control commission which will probably retain its predecessor's func- tion of broad supervisory authority over the party. The new body contains no major. figures, however, and like the old commission will be unable to take action against members of the central committee. The politburo has been enlarged from 13 members to 17 full and six non-voting members. Eighteen of the 23 occupy key posts in the party and regime. The politburo has retained four of Mao's old comrades who no longer seem to be important figures: Chu Te, Lin Po-chu, Tung Pi-wu, and Lin Piao, who is evidently too ill for any work. One of the ten new mem- bers, Liu Po-cheng, appears to owe his politburo post to prestige gained as a military leader many years ago. Two of the key figures on the polit- buro are Liu Shao- chi's deputies on the government body which supervises Chou En-lai's State Council (cabinet). These are Peng Chen, who is also mayor and party boss of Pei- ping, and Lo Jung- huan, who concur- rently directs the political officer system in the armed forces. Eight important members of the new politburo.are vice premiers in the government under Chou En-lei. In addition to Teng Hsiao-ping, they are: senior vice premier Chen Yun, an ?economic.specialist; Peng Te-huai,.minister of defense and the regime's top military man; Ho Lung and Chen I, one- time military leaders who have been utility men for Chou; Li Fu-chun,. long-range planning .director; Li Hsien-nien,.a top economic co-ordinator; and alternate member Ulanfu, boss of Inner Mongolia. The other alternate mem- bers are: Cheng Wen-tien, Chou's senior deputy foreign minister; Lu Ting-i, director of the party's propaganda de- partment; Chen Po-ta, one of Lu's deputies and a longtime spokesman for Mao Tse-tung; Po I-po who directs the re- gime's annual economic plan- ning; and Kang Sheng, long reported as the party's CHINESE COMMUNIST PARTY ORGANIZATION 1955 0 1956 CENTRAL COMMITTEE ( 68 Members) MAO TSE-TUNG Chairman TENG HSIAO-PING Secretary General POLITBURO MAO TSE-TUNG Chairman Members LIU SHAG-CHI CHOU EN-LAI CHU TE CHEN YUN KANG SHENG PENG CHEN TUNG PI-WU LIN PO-CHU CHANG WEN-TIEN PENG TE-HUAI LIN PIAO TENG HSIAO-PING SECRETARIAT MAO TSE-TUNG Chairman Secretaries LIU SHAO-CHI CHU TE CHOU EN-LAI CHEN YUN SECRETARY GENERAL'S OFFICE Liu Lan-tao Dep Sec Gen Ma Ming-fang Dep Sec Gen Sung Jen-chiung Dap Sec Gen Tan Chen-lin Dep Sec Gen Yang Shang-kun Dep Sec Gen CENTRAL COMMITTEE ( 170 Members) MAO TSE-TUNG Chairman LIU SHAO-CHI CHOU EN-LAI CHU TE CHEN YUN Vice Chairman Vice Chairman Vice Chairman Vice Chairman LIU SHAO-CHI Vice Chairman CHOU EN-LAI Vice Chairman CHU TE Vice Chairman CHEN YUN Vice Chairman TENG HSIAO-PING PENG CHEN PENG TE-HUAI LIN PIAO LO JUNG-HUAN LIU PO-CHENG LIN PO-CHU CHEN I HO LUNG TUNG PI-WU LI FU-CHUN LI HSIEN-NIEN ULANFU LU TING-I KANG SHENG CHANG WEN-TIEN CHEN PO-TA PO I-PO MAO TSE-TUNG LIU SHAG-CHI CHOU EN-LAI CHU TE CHEN YUN TENG HSIAO-PING SECRETARIAT Secretaries TENG HSIAO-PING Tan Cheng. PENG CHEN Huang Ko-cheng Wang Chia-hsiang Li' Hsueh-feng Tan Chen-lin Alternate Secretaries Infu Lan-tao Yang Shang-kun Hu Chiao-mu SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART T I T PATTERNS AND PERSPECTIVES Page 2 of 8 25X1 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 Approved F4V.Zoease 2005/02/14: CIA-RDP79-0093iA001000020001-0 secret police chief. Kang's decline from sixth to twenty- second place on the politburo may reflect either the recent Soviet practice of excluding the secret police chief from the inner circle, or a failure by Kang's apparatus in the Kao-Jao "conspiracy" against other party leaders in 1954. Central Committee The new central committee, which has more than twice the membership of its predecessor, is likely to be little more important as a body. Although the committee will probably meet much more often than in the past, its function will continue to be essentially that of approving the policy decisions taken by a small group of politburo members. The new central committee includes the great majority of the actual leaders of the party, government and military establishment. Several persons have been left out, however, whose posts would seem to justify their membership, and many have been named simply as a reward for past performances or in deference to ethnic and professional groups. The composition of the committee is more significant as a reflection of the rela- tive power positions of the top leaders. Mao's friends and proteges occupy more slots than those of any other leader. However, Liu, Chou, Teng and Peng Te-huai are well repre- sented. Lesser numbers of proteges of most other members of the politburo can also be identified. Su Yu, the regime's chief of staff who has been out of the news for months, was elected to the new committee but ranks several slots below his deputy, Chen Keng, who has been identi- fied as "acting" chief of staff. Chou Shih-ti, commander of the air defense forces which were slighted in Peng Te-huai's speech on military affairs, .was not elected to the commit- tee, and another man has just been identified by a Communist newspaper as holding Chou's post. Almost all of the polit- buro members, and most of the 97 full members of the new central committee have records-- in terms of residence, journeys, writings or liaison work--which indicate strong bonds with the Soviet Union. Although Mao and his principal lieutenants are not Soviet puppets, as were certain earlier party leaders, they can be expected to view the maintenance of the Sino- Soviet alliance, in Liu Shao- chi's words, as the party's "supreme international duty." 25X1 SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART III PATTERNS AND PERSPECTIVES Page 3 of 8 Approved Fgx.Rplease 2005/02/1 CIIA-RD 79-009W4M1000020001-0 CURRENT INTELLIGENCE WEEKLY :.SUMMARY The Bundestag session that opened on 27 September will serve largely as a sounding board for the 1957 national elections in West Germany. Every issue will be debated not so much on its merits as for its effect on the voters, and each party will seek to ex- tract the utmost in political benefit from controversies. over reunification, rearmament and European integration. Chancellor Adenauer's popularity has waned somewhat, as recent public opinion polls have indicated, and his Chris- tian Democratic Party is con- sequently on the defensive. He will find it increasingly difficult to get his way in legislative matters and may have to accept compromises in- compatible with his previous strong'prb-Western stand. The chancellor has already started the fight to retain command of the situation. On the basis of his meeting of 29 September with Premier Mol- let, Adenauer is playing up the prospects of a Saar settle- ment favorable for West Ger- many, and in a speech in Brus- sels on 25 September he advo- cated a new and looser concept of European unity. German unification remains the primary concern of the Bonn government. Adenauer is under heavy attack on this is- sue for inflexibility and in- action. The chancellor hopes to meet the growing criticism on this score, not by any shift of policy, but by a continued exchange of notes with Moscow. The USSR has not yet re- plied'officially to Bonn's note of 7 September asking for an exchange of ideas and re- iterating its demands for free all-German elections and free- dom for a united Germany to join any alliance. Over the coming months Adenauer may find himself more isolated in his own party on the freedom-of- alliance stand. The Adenauer government must also move to meet opposi- tion charges that it deliber- ately keeps Bonn-Moscow rela- tions frigid. Bonn officials virtually ignored Soviet ambas- sador Zorin, who has not been replaced since his recall in July. Bonn's ambassador to Moscow will remain in the Feder- al" Republic for several months undergoing medical treatment. Pressure to improve this state of affairs, and to adopt a more liberal policy on trade and cultural relations with the USSR, is likely in parliament and the press. As a move in this direction and against Adenauer's wishes,. his party has decided to join all other parties in accepting a Soviet invitation to send. a Bundestag delegation to Mos- cow. The government will meet increasing demands for a more radical change of policy toward the European Satellites. Even coalition members see little merit in Bonn's refusal to es- tablish diplomatic relations because the Satellites have recognized East Germany. None- theless, the government is fearful that if it gives in on this score, it will encourage the recognition of the Soviet- zone regime by other free world states. While all parties agree that ambassadors should not be exchanged with East Germany, the government will have to make some concession to repeated demands for a more positive attitude toward interzonal con- tacts. Many West Germans are genuinely worried that a, formid - able cultural gulf is being created which will enormously complicate a future unification. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART III PATTERNS AND PERSPECTIVES Page 4 of 8 Approved RQL&Iease 2005/02/14: CIA-RDP79-00S274,p01000020001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 4 October 1956 Rearmament Another matter on a par with unification and equally explosive as the election ap- proaches is that of rearmament. Although the build-up of the army, navy and air force is already well launched, the pub- lic remains apathetic or skep- tical of the utility of the program in an atomic age. Adenauer must convince the West Germans that rearmament as presently planned is neces- sary, and, at the same time, satisfy NATO that the program is adequate to Western defense needs. To meet the widespread antipathy to conscription, the government decided on 27 Sep- tember to make the draft term 12 instead of 18 months. This decision precipitated a.special session of the North Atlantic Council, which expressed con- cern and asked for reconsidera- tion. The government, however, is not likely to consider any change politically possible and is in some doubt about the feasibility of initiating con- scription before the September 1957 election. The shortened draft term has even added to the govern- ment's domestic difficulties because the Defense Ministry now plans to recruit 70,000 additional volunteers and pro- vide added pay incentives cost- ing $190,000,000--a plan likely to be fought by Finance Mini- ster Schaeffer. He is already unhappy over the government's intention to reduce taxes and increase social benefits in an effort to win votes. Adenauer is particularly critical of the reported in- tention of the United States and Britain to shift their strategic emphasis from con- ventional to atomic weapons and reduce their ground forces in Europe. Not only have these reports caused Germans to question Adenauer's plans for a 400,000-man army, but they are giving rise to demand for an army supplied with atomic weapons. Despite these complications, the recruiting of volunteers has continued at a high rate in recent weeks, and the De- fense Ministry insists that it will meet its goal of 96,000 men in uniform by the end of 1956. The complete build-up, however, seems certain to be stretched out beyond the pro- jected three to four years. European Co-operation To divert attention from his inability to do much about, German unification, Adenauer intends to push for progress in West European co-operation. A major, obstacle to French- German co-operation was removed on 29 September when Adenauer and Mollet agreed on the terms of a Saar settlement which will transfer the area to Germany on 1 January 1957. This will add the votes of the Saarlanders in next year's election. If Luxembourg objections can be met, Adenauer will have an agree- ment on the canalization of the Moselle to push through a some- what unwilling parliament this fall. Adenauer's principal in- terest in the field of integra- tion now is a mechanism for co- ordinating the policies of Euro- pean nations, partly to increase Germany's voice in world affairs. He cites the Suez crisis as il- lustrating this need. In Brus- sels on 25 September, the chan- cellor called for a new political organization open to all European countries and having as broad a field of activity as possible. To make British membership pos- sible, he turned his back on "perfectionism," and said the new organization need not be entirely supranational. His new approach is an ap- peal to Europe to stand more squarely on its own feet and for European states to co-ordinate their actions in an organization in which the US is not a member. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART III PATTERNS AND PERSPECTIVES Page 5 of 8 25X1 Approved, 4W,.2elease 2005/0;9fiCR&iFDP79-096WC001000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY The Greek government and the opposition are anticipat- ing a major crisis in November, which they expect to follow a decision by the UN General Assembly on whether or not to consider the Cyprus issue. Prime Minister Karamanlis is be- lieved to be canvassing possible courses of action to meet the test, which is bound to come no matter what the assembly decides, while opposition leaders are co-operating in a campaign to overthrow him and force new elections. Possible Government Actions Karamanlis continues to hope for American support con- cerning the Cyprus issue in the UN, if not ultimately on a sub- stantive decision, at least on the inscription issue. He be- lieves such support would en- able him to surmount the coming challenge even if Greece were eventually defeated and might substantially increase his support in parliament. In anticipation of possible UN rejection of the Cyprus item, opposition circles and the press are speculating on a wide range of courses Karamanlis might adopt: (1) the resignation of his government to permit the formation of an opposition coalition government; (2) a call for new elections to seek a new mandate for his regime; (3) the convocation of a crown council which, under the king's chair- manship, would determine future Greek policy on Cyprus; (4) the severing of diplomatic relations with Britain or Turkey, or both; and (5) the imposition of a personal dictatorship based on palace and army support. Karamanlis will probably do everything in his power to retain his position by con- stitutional means. He has out- lined for the'progovernment press a domestic propaganda line regarding the appeal to the UN on Cyprus which assumes that his government need not resign if defeated in the UN. If his government seems in danger of falling, he may take dramatic steps--breaking rela- tions with Britain or Turkey, or both--to appease Greek popu- lar opinion. Oposition Moves Opposition leaders are rumored to be rebuilding the Popular Front coalition, which won a plurality of the vote in the February 1956 elections. The'Communist-front United Demo- cratic Left, the fellow-travel- ing Democratic Party of the Working People, the left-of- center National Progressive Union of the Center, and the centrist Liberal Party are widely believed to have agreed to form a new front under the leadership of Liberal Party chief George Papandreou. Presumably, the long-standing rivalry between Papandreou and Liberal Democratic Union head Sophocles Venizelos is re- sponsible for the absence from the front thus far of the latter's party. In an apparent attempt to neutralize the palace, which has consistently supported Karamanlis, opposition leaders have been co-operating in a press campaign to expose dubious business and political activities among members of the court, and a left-wing opposition deputy has lodged a parliamentary interpellation concerning the palace and secret government funds, which will probably cause difficulties for the government when parliament reconvenes on 15 October. It is widely believed in government circles that neither the opposition, the SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000020001-0 PART III PATTERNS AND PERSPECTIVES Page 6 of 8 Approved F"lease 20051021$k 'EP79-009 4001000020001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY Communists, nor Britain wants the Cyprus issue solved. The opposition appears convinced that this issue will cause Karamanlis' downfall. Cyprus has also increasingly embit- tered Greek-British and Greek- Turkish relations, causing the virtual demise of the Balkan alliance and seriously weaken- ing NATO unity in the eastern Mediterranean. Government leaders profess not to under- stand the British attitude, since they feel any succeeding government in Athens would necessarily be less moderate on the Cyprus question and more inclined to reckless ac- Lion. Prospects Karamanlis' government prob- ably has a better chance than any successor government, under present circumstances, of ad- hering to a firmly pro-Western stand. Any successor would likely be a weak coalition of conflicting factions which, while nominally nationalist, would be susceptible to Com- munist influence and might lead eventually to dictatorship of either the right or the left. Karamanlis' position at the moment is relatively secure, although it might be dangerously weakened by any incident involv- ing Britain or Turkey. 25X1 25X1 SOVIET BIOLOGICAL WARFARE DEVELOPMENTS Recent indications point to intensified Soviet interest in biological warfare. The USSR's defensive capability is restricted by deficiencies in sanitation, public health and crop protection. The Soviet Union is probably attempting to acquire a capability ade- quate for retaliation in kind against a BW attack, Recent Developments The USSR in 1955 was for the first time instructing its troops in the defensive prob- lems posed by biological warfare as well as nuclear and chemical warfare weapons. i Soviet references to bio- logical warfare in the past were usually contained in propa- ganda statements charging other nations with using this "un- lawful" weans of warfare. How- ever, Soviet defense minister Zhukov in addressing the 20th party congress in February stated: "If a war is unleashed in the future, it will be char- acterized by a mass use of air power, various types of rocket weapons, and various means of mass destruction such as atomic, thermonuclear, chemical and bacteriological weapons." This is the first known statement by a high-level official to give bacteriological warfare a role in Soviet military planning. The Geneva Convention of 1924, ratified by the USSR, not only prohibits the use of bac- teriological warfare, but does not permit its use in retalia- tion as it does in the case of chemical warfare. The USSR has declared that it will not be bound by the latter restriction. The tenor of Soviet defensive doctrine is to treat BW as an expected form of attack. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 PART III PATTERNS AND PERSPECTIVES Page 7 of 8 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0 Next 1 Page(s) In Document Exempt Approved For Release 2005/02/14: CIA-RDP79-00927AO01000020001-0