WEEKLY SUMMARY

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A005000090001-9
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RIPPUB
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S
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36
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December 20, 2016
Document Release Date: 
May 3, 2006
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1
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Publication Date: 
October 8, 1965
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SUMMARY
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25X1: 000090 M $ xch,ded prom outorribtic downgrading and decPassi?i cation 25X1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Relea 2007/03/06 : +8Ji4M960927A005W090001-9 C O N T E N T S (Information as of noon EDT, 7 October 1965) VIETNAM At least nine missiles were fired on 5 October at US aircraft attacking the vital transportation lines link- ing Hanoi with China to the northeast. One plane was shot down. Most of the SAMs came from an unconfirmed site on Cat Ba Island off the coast east of Haiphong. The same day the Chinese claimed they too downed one of four US aircraft allegedly over Chinese territory. North Vietnamese commentary on negotiations continues to stress that the US must accept Premier Pham Van Dong's four points before there can be any "political settlement" of the war. In the South, Viet Cong mili- tary activity is still at a relatively high level, and the political situation in the northern provinces re- mains unsettled. Page The Communist World SOVIET INDUSTRIAL REORGANIZATION ENHANCES BREZHNEV'S POSITION 5 The Supreme Soviet, which met last week to enact the industrial reorganization presented at the party cen- tral committee plenum several days earlier, also made several top-level appointments which appear to reinforce Brezhnev's influence in the hierarchy. TITO'S VISIT TO BULGARIA 7 Despite persistent basic policy differences between the Bulgarian and Yugoslav regimes, state relations have im- proved somewhat in the past year. Tito's visit--his first since 1947--was to re-establish contacts between the two national parties. NEW ELEMENTS IN THE CHINESE COMMUNIST LEADERSHIP Two tough veteran revolutionaries--Tao Chu, chief of the party's central-south regional bureau, and army Chief of General Staff Lo Jui-ching--have reached posi- tions which will make them important figures in the event of a struggle for the succession after Mao goes. SECRET Page i WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approvor Release 20Q71gf ;- -RDP7927A005000090001-9 PEKING BACKS AWAY FROM AFRO-ASIAN CONFERENCE It now is extremely doubtful that the long-heralded Second Afro-Asian Conference will be held as scheduled in Algiers on 5 November. Asia-Africa THE INDIA-PAKISTAN SITUATION Violations of the cease-fire have declined, but neither India nor Pakistan has withdrawn its forces from forward positions. Pakistan is still trying to keep the Kashmir issue in the public eye, and continues to infiltrate guerrilla forces into Indian-held Kashmir. The Indians are increasingly insistent that the issue is not nego- tiable. Economic repercussions of the fighting are be- coming more apparent. Peking and New Delhi have stepped up diplomatic countercharges, and the Chinese also are evincing irritation over Pakistan's recent actions. THE COUP IN INDONESIA The army, having countered a leftist coup on 1 October, is for the time being firmly in control of Indonesia. The question remains as to whether it now will follow President Sukarno in a conciliatory political settle- ment or whether it will insist on major moves against the Communists. ADDITIONAL SOVIET ECONOMIC AID FOR BURMA A new Soviet economic aid offer, details of which re- main to be worked out, resulted from Premier.Ne Win's recent visit to Moscow. Past Soviet aid totals only about $14 million. Peking has provided six times as much. SECRET Appro? co 42elease 10@ M DP79-00929,8605000090001-9 Approved For Releaco 2007/03/06 : qX-Q `P9`00927A005 090001-9 NASIR RESHUFFLES CABINET IN EGYPT His removal of the left-leaning All Sabri from the pre- miership may have been intended in part to placate the US. Nasir probably hopes that the new cabinet under Zakariya Muhieddin, who evidently will concentrate on internal problems, will increase efficiency and revivify the nation's spirit. RHODESIAN INDEPENDENCE AT ISSUE IN LONDON As the talks between Harold Wilson and Rhodesian Prime Minister Ian Smith opened, their positions seemed as conflicting as ever. ANTI-TSHOMBE POLITICIANS JOIN IN CONGO 20 A new party led by the interior minister has won one of the four top positions in Parliament. The coerce- naries'off ensive against rebels in Fizi is moving slowly. MAJOR PARTIES CLASH IN NIGERIAN REGIONAL ELECTIONS 21 A conservative alliance seems ahead by a small margin because it controls the electoral apparatus, but the frustrated progressive opposition may resort to violence. NYERERE TIGHTENS CONTROL IN TANZANIA Following an overwhelming election victory, President Nyerere has assumed control of foreign affairs himself and is balancing off rival radical factions. Europe COMMON MARKET EDGING TOWARD HARDER LINE WITH FRANCE The other five members still hope to end the crisis in the EEC before the mere passage of time does serious damage to the organization, but they appear increas- ingly unwilling to accept De Gaulle's terms. SECRET Page iii WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approv or Released"/ 0T CIA-RDP79 27AO05000090001-9 BRITISH LABOR PARTY CONFERENCE SHOWS FIRM WILSON CONTROL 24 Prime Minister Wilson's successes in strengthening the economy and controlling the Labor Party organization have dissipated Conservative hopes for an early return to power. Western Hemisphere DOMINICAN GOVERNMENT STILL CHALLENGED FROM LEFT AND RIGHT 25 Left- and right-wing forces continue to block progress is establishing the authority of the provisional govern- ment and returning the country to normal conditions. OPPOSITION GAINS IN BRAZILIAN GUBERNATORIAL ELECTIONS 26 Supporters of former President Kubitschek have ap- parently won the elections in Guanabara and Minas Gerais, causing a strong reaction within the military. GUEVARA'S FALL FROM POWER IN CUBA Guevara has been dropped from the leadership apparently because his opposition to Castro's views on ideology and practical policies, particularly the economic ones, made him too dangerous and disruptive an influence. His whereabouts remains a mystery. PROBLEMS OF BOLIVIAN JUNTA INCREASING Dissatisfaction among the miners remains, additional political disturbances are threatened, and some mili- tary officers are urging political changes. SE CRE T Page iv WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For ReleQae 2007/03/06Sk IfL,-Qg927A00SW0090001-9 The North Vietnamese again demonstrated their acute sensi- tivity to attacks on the vital lines of communication between Hanoi and the Chinese border to the northeast by reacting vigor- ously to a US air strike in that area on 5 October. At least nine missiles were fired while US Air Force and Navy planes were conducting strikes against im- portant bridges and an ammuni- tion depot near Kep. One US aircraft was shot down by a mis- sile--the fifth lost to a SAM thus far. A Chinese Communist news release claimed that Chinese fighters shot down one of four US aircraft which allegedly penetrated Chinese airspace the same day. At least seven of the mis- siles fired on 5 October were seen to come from Cat Ba Island, off the North Vietnamese coast east of Haiphong. This prob- able SAM site has not yet been confirmed by photography. A navy pilot acting as coordinator for one of the strikes reported seeing another missile being launched from an area southwest of Kep Airfield. This site also lacks photographic confirmation. Hanoi. Comment on Negotiations Hanoi continued its public commentary on negotiations this week. Although the comments reflected no change in its basic terms on a political settlement, the frequency with which the subject was discussed suggests an effort to justify the DRV's position,and to counter any impressions that it is unyield- ing or negative. The discussion may also represent a continua- tion of what Hanoi considers a public dialogue with the US. Following last week's of- ficial Foreign Ministry memoran- dum which re-emphasized the DRV's insistence on its four- point proposal of last April, Premier Pham Van Dong this week restated DRV terms for a set- tlement on two separate oc- casions. At a Hanoi reception celebrating Communist China's National Day on 1 October, the premier demanded not only Ameri- can recognition of the four points but also that the US "prove it by practical deeds" before any talk about a politi- cal solution can take place. SECRET Approved For Release 206/03/06 ECIk-R6P79-0627AO05000090001 9 Approver Release 2007/03/06 : CIA-RDP79- 27A005000090001-9 Chu Lai uang N m i~phuCu f SOUT6 C A M B O D i A tVIETNA t .,%Ca Lat _ Ben Cat' 11 Phan R Bien /oa l"' 1N i _ _l ahan Thiet . G The Indochina -South 'China Area now- South Vietnamese military boundaries Kuei-yang :.-.- T 4? ' Lao Cai i Nan-ning Ong r ng N O- R T H MP'ing-hsiang Phong~ V 1 E T N A M'.ti"?- - ~t,/ tiY Sal /c .~.'~ TRI >.ivispn vision .'HUOC Pr,r,(c N1,0+ Division cur?- III CORPS Rung Sat Special Zone (VNN) Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Release 2007/03/(SECME700927AO05Op0090001-9 In an interview with an Egyptian journalist on the 5th, broadcast by Radio Hanoi, the premier returned to the less precise language of the 23 Sep- tember DRV memorandum on negotia- tions, asserting that the US must "declare" its acceptance of the four points before a "political settlement can be considered." The Liberation Front (NFLSV), has again joined in the commen- tary on negotiations after sev- eral weeks of ignoring the sub- ject. An NFLSV central committee statement of 29 September con- demned US "acts of aggression" and said that there can "be no contact or political solution" as'long as they continue. On 2 October, in a statement to the Red Cross on prisoner-of-war treatment, the front used the POW issue to try to pressure the US into direct talks with it. The statement said "as long as the US refuses to recognize the NFLSV as the only authority com- petent to settle all questions concerning South Vietnam there can be no basis for any contact to discuss prisoners of war." Peking Maintains Hard Line Peking continues to mani- fest its hard line on Vietnam. In a four-hour press conference on 29 September, Foreign Minis- ter Chen Yi attempted to refur- bish the image of a resolute and formidable China--an image which has been dimmed by Peking's failure to follow through pub- licly on its commitments to North Vietnam. He declared that China was ready for an invasion by the US and its henchmen, including the Soviet Union. Chen asserted that the war in Vietnam was go- ing well for the Viet Cong and reiterated Peking's opposition to negotiations except on its own terms. On 3 October Premier Chou En-lai reformulated the Chinese position on assisting the Viet- namese Communists in what ap- pears to be another effort to harden Peking's public warnings without actually increasing the Chinese commitment. Chou de- clared that if the US presses ahead along the "dangerous path' of war expansion, China "will unhesitatingly" join the "Indo- chinese people" in "completely driving the US aggressors out of Indochina and the whole of Southeast Asia." The Chinese treatment of the alleged shootdown of the US aircraft over China on 5 October followed the pattern of pre- vious such incidents and re- flected no escalation of Peking's earlier open threats. New China News Agency quoted a responsible official of the Chinese Defense Ministry as declaring that the SECRET PAGE 3 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approver ReleJJ E6?CIA-RDP79^27A005000090001-9 US "air intrusion" was "another ex- tremely serious war provocation" and another step toward "imposing war on the Chinese people in disregard of the repeated warnings, of the Chinese Government." The official, however, concluded with the standard warning implying that China would not take the initiative in provoking a war, declaring that if the "US dares to come, we will dare to hit back." South Vietnam 25X1 In a major address on 1 Octo- ber reviewing his first 100 days in office, Premier Ky characterized the military situation as improved, and spoke of plans for social and economic betterment in the fu- ture. Several cabinet changes were also announced, including the eleva- tion of General Co to deputy premier for pacification, in addition to his duties as minister of war. The si- multaneous announcement of a new secretary for rural construction and subsequent discussions of rural pacification with US Embassy offi- cials indicate a renewed interest by the Vietnamese Government in this key aspect. The political situation in northernmost I Corps, meanwhile, remains unsettled. Buddhist re- sentments have focused on the ci- vilian chief of Quang Tri Prov- ince--a Catholic and Dai Viet party member. Further nonviolent pres- sure for his removal seems likely, according to the US consul in Hud. For the first time, I Corps com- mander General Thi has been openly criticized by militant students in Hud. A newspaper published by these elements also criticized US policies and military presence in South Vietnam. This may foreshadow a. renewed antigovernment campaign, although the student group respon- sible presently does not have a large following. Despite record high casualties during the past two weeks, Viet Cong military activity continues at a relatively high level, includ- ing several recent battalion-size attacks. Heavy fighting flared again during the week in the Phu Cu Pass area of Binh Dinh Province-- the scene of two major engagements during the previous week. Further heavy fighting in this area seems likely in view of the concentration of government and Communist forces, including probable elements of the North Vietnamese 325th Division. Viet Cong forces are also show- ing increased resistance to US Army and Marine patrols in Bien Hoa Prov- ince and near Da Nang. Meanwhile, the number of incidents in the delta area south of Saigon continues at a hi h level. SECRET PAGE 4 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Rele a 2007/03/06 : CIA-RDP79-00927A00y 0090001-9 SECRET SOVIET INDUSTRIAL REORGANIZATION ENHANCES BREZHNEV'S POSITION The USSR Supreme Soviet, meeting last week to enact the industrial reorganization pre- sented by Premier Kosygin at the party central committee plenum several days earlier, also made several top-level appointments which appear to have a political overtone. Belying rumors which had been widely current, Kosygin and party First Secretary Brezhnev emerged from the meetings with their positions intact. Brezhnev, in particular, has managed to re- inforce his influence in the Kremlin hierarchy. The Supreme Soviet swept away the system of regional eco- nomic councils (sovnarkhozy) es- tablished by Khrushchev and created 28 vertically organized industrial ministries. The USSR Council of Ministers remains an oversize body of 100 members, despite the shuffling of minis- terial personnel. Changes at the deputy premier level, the actual locus of governmental power, should have the effect of strength ening Brezhnev politically. Dmitry Polyansky, a close associate of Brezhnev and a. major architect of the agricultural program put forward by the first secretary last March, was pro- moted from deputy to first deputy premier, a post he now shares with Kirill Mazurov. His eleva- tion, together with the promotion earlier in the week of Fedor Kulakov--believed to be close to Polyansky--constitutes a reaffir- mation of the regime's commitment to a new approach in agriculture. With his promotion,-Polyan-. sky now outranks in the Council of Ministers Aleksandr Shelepin, another of the ambitious younger leaders, who now is the sole party presidium member serving in the council below the rank of first deputy premier. More- over, the speeches of both Kosygin and Brezhnev at the plenum contained no mention, as might have been expected, of Shelepin's party-state control apparatus. Indeed, Brezhnev's call for a large role for pri- mary party organizations within the new ministerial system, suggests that the power of Shele - pin's organization may be weak- ened. Nikolay Tikhonov, one of three newly appointed premiers, has old ties with Brezhnev. In the past a deputy chairman of Gosplan, he now is probably serving as minister without portfolio, much as Polyansky has served for three years. The two other new deputy premiers, Nik- olay Baybakov and Vladimir Kirillin, have no obviously close connections with any of the top leaders. Baybakov, however, was chairman of Gosplan from 1955- 1957, a period when Kosygin be- came involved in central planning prior to his chairmanship of Gosplan in 1959 and 1960. Kiril- lin has had important positions in both the party and government. The election of Brezhnev to the Presidium of the Supreme Soviet gives him a formal govern- ment post from which he can SECRET Approved For RdPM#b 9007/03/(IEKDtA9iRlaRt7 W927A00A0@RQ9Q@Q1-9 Approver Release 2007/03/06 : CIA-RDP79- 7A005000090001-9 USSR COUNCIL OF MINISTERS CHAIRMAN A. N. K.Aygi. GLPUTY CHAIRMAN [.line nl .sta a y'.nn na COinninlrnt DEPUTY CHAIRMAN T F CFMA QUESTIONS M. A. -h ku FIRST DEPUTYa,CHA1AM ,I RMAN K. C. DEPUTY CHAIRMAN V. I. Dymnhh Malerin! Tedwal 111,1 TA. DEPUTY CHAIRMAN N ko FOREIGN ECONOMIC QUESTIONS V. N. Novikav ?_--.] SERVICE UNIT ADMINISTRATION OF AFFAIRS (H ..keep ...... M. S_4n y ko ALL-UNION MINISTRIES AVIATION INOIISTRY CHEMICAL & DIE MACHINE BUILDING AGRICULTURE P. V. V VHAAc. K. E. BrekRev CIVIL AVIATION CONSTRUCTION. ROAD A COMMUNAL MACHINE BUILDING. 1'r. F. LeAinov _ Y, 5, N...1,HVV DEPUTY CHAIRMAN M. A. I_-,bk. DEPUTY CHAIRMAN V S., Milnnrv Ire O. ecl onx,. MILITARY INDUSTRIAL QUESTIONS DEPUTY CHAIRMAN N. A. ICRI, v =BUILDING MATERIALS INDUSTRY 4 1 L tahm.ncrv , II ICIRONIC INDUSTRY FOREIGN TRADE CULTURE A. I. Shekh, N. S. R ..,1ioS - Y. A FDrtseva GENERAL MACHINE BUILDING- S. A. AI.... V- HEAVY, POWER & TRANSPORT INSTRUMENT MAKING,MEANS OF MACHINE BUILDING AUTOMATION & CONTROL SYSTEMS V F. Lhigali. K. N. RudiHYO MACHINE BUILDING FOR LIGHT & MACHINE TOOL BUILDING - F000 INDUSTRY & PRODUCTION OF & TOOL INDUSTRY-- IIOIISEHOLD APPLIANCES - V. N. Wye nirt A. I, Koaeoueov RADIO INDUSTRY - - RAILWAYS V. U. &,I. yk.v IT. P. BcshchE TRACTOR & AGRICULTURAL - TRANSPORT CONSTRUCTION MACHINE BUILDING 1. F. SC-A- Yc. F. KAA..ikov. OTHER MINISTERS A. A,Gu,eglyed V. D, -Lebrdcv V. A. KPIamk.... - - A,Y . Ky..b,.?PkA 4, A. KsraveycV V. M. Ky.bikA!. A. V. KVAJIgv A,-P.- CHEMICAL INDUSTRY L, A. KY EARHA GOMMUNICATIDNS N. IA. P.-- For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved DEPUTY CHAIRMAN V. A. Kirillin IILI UIY CHAIRMAN n v I I P~. Itl Vdu HR Ty dq.iR Ud k,IhC CPRn A COMMISSIONS OF THE PRESIDIUM ER OFFICIOMEMRERS IChOERN,el of RePuNDMCeand, of MIMINIMrN) STATE COMMITTEES CONSTRUCTION I. T. NRVLkOv MATERIAL IS TECHNICAL SUPPLIES - - SCIENCE & TECHNOLOGY iC R. DyCNNhs V. A. Ki:lllin CINEMATOGRAPHY - CIVIL CONSTRUCTION & ARCHITECTURE A. V, Roo.,., - - M. V.PA.okhiD CULTURAL RELATIONS WITH - FOREIGN ECONOMIC RELATIONS FOREIGN COUNTRIES S. K. R ..O., &y- S. A. Sk-hkae Approved For Relee 2007/03/06SICLP-6927A000090001-9 participate in high-level meet- ings with leaders of other gov- ernments. Khrushchev, before he became premier in 1958, used the same device. Conceivably, this might be preliminary to Brezhnev's also taking the post of chairman of the Supreme Soviet Presidium should Mikoyan, as persistently rumored, retire from that post on his 70th birth- day in November. Some differences in emphasis and approach to policy questions can be detected in Kosygin's and Brezhnev's speeches at the plenum. The program launched there shows, however, that there is unity enough in the collective leadership to enable it to act 25X1 decisively on pressing current TITO'S VISIT TO BULGARIA The major accomplishment of Yugoslav President Tito's 22-27 September official visit to Bul- garia--his first since 1947-- was to re-establish contacts be- tween the two national parties. Such contacts had remained in abeyance despite limited improve- ment of state relations in the past year. The essential problem has been the conservatism of the Bul- garian party hierarchy, many of whose members fear the possible divisive effects of Yugoslav doc- trinal unorthodoxy on the Bulgar- ian party. Their apprehensions will not quickly disappear. Although Yugoslav-Bulgarian economic relations were not stressed in the joint communiqud signed at the end of the visit, increased economic cooperation apparently figured prominently in the talks. When addressing itself to the international scene, the communiqud reflected positions more identifiable with Belgrade than with Sofia. Thus, the moder- ate references to US aggression in Vietnam contrasted sharply with Sofia's customary hard stand on this issue. The communiqud also repeatedly stressed the Yug- oslav position that "national peculiarities" require different approaches to Communism, and made no reference to the unity of "the socialist movement." There were also gains for Sofia., however. Tito's visit to Bulgaria, as well as the one by Rumanian party chief Ceausescu earlier in September, probably strengthened Bulgarian party boss Zhivkov's domestic position. By inviting two such independent- minded leaders, Zhivkov may have been responding in part to Soviet advice to improve Sofia's external posture in the wake of the anti- regime conspiracy discovered last April. The visits also are con- sonant with Zhivkov's efforts over the past 20 months to promote SECRET PAGE 7 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 25X1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Release 2007/03/0NA tlCL'r l 927A005AN090001-9 the normalization of relations in the Balkans and to ease Sofia's political isolation from her neighbors. Nevertheless, strains in Yugoslav-Bulgarian ties are still apparent, and basic policy differ- ences persist. Friction periodi- cally arises over the Macedonian minorities resident in each coun- try. In addition, Yugoslav diplo- mats in Sofia have frequently complained that while it is rela- tively easy to establish innoc- uous contacts such as sending Yu- goslav musicians to Bulgaria, it is quite difficult to develop con- tacts in the journalism and pub- lishing fields, and particularly to exchange political information. These long-standing difficulties are unlikely to be easily or quickly resolved. SECRET PAGE 9 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 Approver Release 2007/03/06 : CIA-RDP79-009'27A005000090001-9 SECRET NEW ELEMENTS IN THE CHINESE COMMUNIST LEADERSHIP Two tough veteran revolu- tionaries--Tao Chu, chief of the party's central-south regional bureau, and army Chief of Gen- eral Staff Lo Jui-ching--are be- coming increasingly important figures in the Chinese Communist regime. They have a strong back- ground in party, propaganda, or security work and are probably representative of the kind of men being groomed for major leadership roles. Each is 58, several years younger than most of the 71-year-old Mao Tse-tung's immediate lieutenants. Neither man is on the polit- buro, the Chinese equivalent of the Soviet presidium, but this may mean merely that they were second-ranking offi cials in 1958, when formal additions were last made to the body. Both would almost cer- tainly be included in a public listing if a new one were issued today. Tao Chu, a former political commissar in the army, was secretary of the Kwangtung provincial party committee in the 1950s. In 1961 he was named first secretary of the central- south bureau, one of six newly created and powerful regional bureaus of the party. He ac- quired a major government posi- tion for the first time in De- cember 1964 when he was named vice premier. In the summer of 1965 Tao emerged as an influential party figure of national importance when half a dozen articles pre- senting his views on agriculture and various aspects of culture, obviously mirroring views held by Mao Tse-tung, were published in authoritative newspapers and journals in Peking. Such ex- posure of an individual's name in national publications is un- precedented in recent years, and apparently reflects an effort to build up Tao's stature as a party leader capable of formulating concrete policies which put Mao's high-flown and nebulous precepts into practice. Tao's articles urge a greater role for politics in agriculture--a prescription that allegedly will bring about a "new great leap forward" throughout China-- and adoption of an extremely stiff anti-intellectual line in cultural affairs. Tao's exhortation demand- ing a political solution to rural problems was fol- lowed closely by the establish- ment of a new central committee unit named the Political Work Department for Agriculture and Forestry. Its formation com- pletes a process begun in 1964 to establish an army-style polit- ical structure throughout the economy. SECRET Appro~ga#o~~ZeleN 'Y0y7/&MgAgA 8IYA-RDP79 %O%2 A0&5000090001-9 Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 SECRET Tao Chu has a harsh, color- ful style that evidently appeals to Mao Tse-tung. In a recently published speech to a group of theatrical workers he asserted that a "little coercion" of in- tellectuals is a good thing. Noting that people generally con- demn Emperor Chin Shih Huang Ti for burning books and burying scholars alive 2,200 years ago, he defended the right of the Communists to do "the same sort of thing," in order to consoli- date their rule and their ideo- logical position. In the same speech Tao declared flatly that he was imposing a total ban on performance of traditional plays and opera in the central-south region. He said: "Only revolu- tionary modern plays now will be allowed to be written and pro- duced. Is that not too crude and arbitrary? No. Man is like that. Sometimes he has to be put under pressure." According to a Soviet prop- aganda blast at Chinese leaders made in 1963, Tao Chu once cal- lously advised a visiting Czech- oslovak official to accept phil- osophically the possible loss of his entire country in a thermo- nuclear war, and to think in- stead of the benefits such a war would bring to the world Commu- nist movement. Lo Jui-ching is not a the- oretician like Tao Chu, but his numerous positions and influence in the army, party, and security apparatus make hint one of the most powerful men in China. He ,is chief of general staff of the People's Liberation Army (PLA); secretary general of the mili- tary affairs committee, the party's supreme organ for making military policy; a member of the party's key secretariat; and a vice premier. Lo was minister of public security from 1949 to 1959, and there is evidence that he is still actively involved in public security work. In addition, Lo Jui-ching has to function as a de facto military commander most of the time since his superior, Minis- ter of National Defense Lin Piao, is chronically ill. Lo rather than Lin usually represents the military at ceremonial affairs and often makes important mili- tary pronouncements. Both Tao and Lo appear to be Mao's personal favorites and are not closely associated with the other leaders. Both appear to have reached positions which will make them important figures in the event a struggle develops over the succession after Mao goes. SECRET Approved For Release 2007/03/0 KLCIA RDP'9-00927A005e~009'0001-9 Approvedr Release 2007/03/06 : CIA-RDP79-7A005000090001-9 SECRET PEKING BACKS AWAY FROM AFRO-ASIAN CONFERENCE It now is extremely doubtful that the long-heralded Second Afro-Asian Conference will be held as scheduled in Algiers on 5 November. There is a marked lack of enthusiasm among most moderate African and Asian na- tions and a growing resentment of heavy-handed Chinese efforts to stage-manage the proceedings. This is evident even among the more militant and radical na- tions that are normally sympa- thetic to Peking. Algeria, the host country, has not yet issued formal invita- tions, and the 15-nation prepar- atory committee has not met since late June when it announced post- ponement of the conference until November. Officials in Algiers have indicated both publicly and privately that they would just as soon the whole thing were postponed or dropped altogether. The Chinese also now appear to be having doubts about the de- sirability of the conference. The Chinese had hoped to duplicate their success at Ban- dung ten years ago, but have re- cently become disenchanted be- cause it now is clear that they would not be able to control the Algiers conference. Peking has adamantly insisted that the Soviet Union be excluded and that all participants agree on an explicit condemnation of "US imperialism." On both issues Peking ap- pears to have received resound- ing rebuffs. The UAR endorsed Soviet attendance in the communi- qud at the conclusion of Nasir's visit to Moscow on 1 September, although the Egyptians are not anxious that the conference be held next month. Foreign Minister Chen Yi apparently came a cropper during his visits to Algeria, Guinea, and Mali in early September and seems to have antagonized his hosts in all three countries. In Bamako he reportedly railed against Moscow's "defection to the imperialists," and lectured angrily on Mali's shortcomings as a socialist state. Chen appears to have bee n equally tactless in Guinea, and both visits ended without the custom- ary joint communiqud, ap parently as a result of sharp dif ferences over the Afro-Asian Conference. In Algeria, Chen is reported to have castigated officials for inviting the UN Secretary General as an observer, and in his wide- ranging press conference on his return to Peking he delivered a virtual ultimatul that China would not attend an Afro-Asian gathering at which the Soviets were seated. 25X1 25X1 SECRET Approved,A~ R ease /~0~3/ I I DP79-00Q2 Q0W0090001-9 Approved For Relasse 2007/03/06: CIA-RDP79-00927AOOSK0090001-9 SECRET Violations of the cease-fire have declined and both India and Pakistan now seem willing to see the incidents along the front fur- ther reduced. Neither has with- drawn its forces from forward po- sitions, however, and tensions re- main high. President Ayub has issued strict instructions to Pakistani troops to observe the cease-fire, and Pakistani officers reportedly now are more willing to comply. The Pakistanis continue, however, to stress the extreme fragility of the cease-fire arrangement in an effort to keep the Kashmir is- sue before the public eye. They have most recently alleged an Indian build-up for an attack near Ferozepore. Infiltration of Azad (free) Kashmir forces into Indian-held Kashmir apparently continues. Pakistani newsmen in Azad Kashmir reported recently that they had observed several companies of men without insignia who were described by a local official as being reg- ular Azad Kashmir units trained as guerrillas and preparing to in- filtrate Indian lines. Although India continues mopping-up efforts, upwards of 3,000 infiltrators, who began their intrusions in early August, are believed still at large behind Indian lines in Kash- mir. The UN observer mission which is to supervise the cease-fire is still far from fully operational, and fewer than half it s members have arrived. The US Embassy in New Delhi reports the impression that the UN operation is still wobbly, uncertain, and ineffec- tive. The embassy states that strong and creative leadership by General MacDonald and his mis- sion is needed at the various points of conflict, since Indian politicians and civil servants seem poorly informed and some- what baffled as to how to pro- ceed. There is still no sign of give by either side on the basic issue underlying the recent con- flict--Kashmir. Pakistani offi- cials stress that progress on this issue is vital if peace is to be maintained on the subcontinent. The Indians, on the other hand, are increasingly insistent that the Kashmir question is not nego- tiable. Backed by a buoyant pub- lic opinion and obviously reflect- ing a sense of having "won" the war, Prime Minister Shastri, Con- gress Party boss Kamaraj,and De- fense Minister Chavan have all taken an adamant public position on this issue in the past week. Chavan and Kamaraj in addition have reflected Indian sensitiv- ity to possible Western pressure on India to compromise. Kamaraj has declared that any power which aids Pakistan is an "enemy" of India, and Chavan has threatened to "go it alone" if the West seeks to cut off aid to India. SECRET Approved For R41??e 2007/Oiy/D8KX7fPFo.I 1 (Y0927AO060090N1-9 JAM. 6 KASH proved For Release 2007/03/06 : CIA-RDP79-0ft 7AO05000090001-9 CHINA IflDIfl- PAKISTA(1 ORDER OF BATTLE IAIFINDI (1949) ind "~..~ ? io W. ,PAKIS 'A o 6 11-1 X " 14 Par'cistan?s forces number 67.000 in the Kashmir area and 64,000 opposite northwest India.,, j Indian forcesnunaber 100,01 in Kabrttir. nd 150,b60 in northt ,est Indict, ullundur Tithwc azilka PAKISTAN INDIA Infantry div on n Infantry brigade l l=1 Armored division ? 25 5? 75 (t] Armored brigade j MILES Approximate territory (App - -- -11, Miles) uccupleu on cc .epr I I Ka'r FatuhawaIa 25X1 Approved For Reline 6WJkRJP19-00927A00W0090001-9 Attempts to make progress on the Kashmir issue within the UN have also made little progress. Secretary General Thant says that last week Soviet Foreign Minister Gromyko was "somewhat" negative concerning a proposed four-power Security Council committee to as- sist Thant in implementing the re- cent Security Council resolutions. UN Under Secretary Bunche, describ- ing the idea as "moribund," attrib- uted Moscow's stand to India's "stiff opposition." The Soviets probably are also concerned that their participation in such a com- mission wouldgive Peking new am- munition to charge US-Soviet col- lusion. Satisfied that a cease-fire of sorts has been effected, the Soviets will probably now move cautiously and avoid any initia- tives which run the risk of alien- ating Pakistan or especially India. Recent Soviet protests concerning the organization and financing of the UN cease-fire observer mission seem intended to underscore the standard Soviet contention that only the Security Council--with its big-power veto--has the au- thority to establish the guide- lines of UN "peacekeeping" opera- tions. Economic repercussions of the recent conflict are becoming more apparent in both India and Pak- istan and are likely to multiply. The military confrontation has caused disruptions in both land transport and ocean shipping. Production cutbacks or shutdowns in many factories have increased unemployment. A tight credit situation is also evident in Pakistan, and in parts of west- ern India rice and wheat rations have been cut. On the Sino-Indian border there has been almost no activ- ity on the ground, but both sides have stepped up the tempo of dip- lomatic charge and countercharge. Almost daily Peking and New Delhi exchange notes alleging frontier incursions. Sino-Pakistani relations ap- pear on the surface to be as warm as ever, and Peking is evidently seeking to consolidate and in- crease its ties with Rawalpindi. The Chinese, however, are evinc- ing signs of irritation with re- cent Pakistani actions. They were probably angered by Paki- stan's reported last-minute re- quest that they not intervene, and they doubtless find Paki- stan's agreement to a cease-fire under UN auspices particularly allin SECRET Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 Approver Releasee0?] 6,; J4-RDP79- 7A005000090001-9 The Indonesian Army, having countered a leftist coup on 1 Oc- tober, is for the time being firmly in control of the country. It would like to use the opportu- nity to take major steps against the Communists, including the banning of their party and prob- ably the execution of party lead- ers. particularly outraged the army because it involved the torture and murder of six of the army's top generals. President Sukarno, however, in the interest of national unity and fearing the political ascend- ency of the army, has asserted that the present situation is a political problem that requires a political solution and that he wishes to settle it himself. In a statement following a cabinet meeting on 6 October at Bogor Pal- ace, he stressed the need to avoid divisiveness in Indonesia's polit- ical life or between the military services. He apparently hopes to return the Communist Party to the favorable political position it enjoyed before 1 October. The major question is whether the army will follow Sukarno in a conciliatory political settle- ment or whether it will insist on anti-Communist action. The coup was carried out by a group which called itself the "30 September movement" and was led by Lt. Col. Untung of Sukar- no's palace guard. The action SECRET PAGE 16 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 Approved For Relel 2007/03/0&-;r 61 QP,~,9,pp927A005WO90001-9 Meanwhile the PKI is trying to undercut the army's efforts to move against it by denying com- plicity in the coup. The party-- officially silent since 1 October --has issued a statement on 5 October through its information bureau declaring that the PKI central committee did not par- ticipate in the 30 September movement and that the coup group did not request the approval of party members whose names were included in the short-lived "Rev- olutionary Council." The party fully supports the "message of President Sukarno"--presumably his call to preserve unity and not take revenge--and calls on all members and sympathizers to help carry it out. Although the army has tried to suppress the statement, it has become public knowledge. Subandrio alluded to it on 6 Oc- tober, and the world press is reporting it. Internally it may take a few days to filter down to lower levels in view of pres- ently disrupted party communica- 25X1 tions. Militant PKI elements in Central Java meanwhile are engaged in skirmishes with the army. \ SECRET PAGE 17 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approve br Release ZQVI / -RDP79-0 227AO05000090001-9 01.L:4 ET ADDITIONAL SOVIET ECONOMIC AID FOR BURMA More Soviet economic aid will be extended to Burma as a result of Premier Ne Win's re- cent visit to Moscow. Burma's minister of mines, now touring the USSR studying min- ing and fishing industries, in- dicated that Soviet aid may be forthcoming for such enterprises in Burma. The USSR may also pro- vide aid for industrial construc- tion, oil exploration, and geo- logical surveys. However, details of the new Soviet credit remain to be worked out. Total Soviet economic aid extended to Burma since 1956 has amounted to only about $14 mil- lion, accounted for mainly by the Kyetauktaung dam, a techni- cal institute, a hospital, agri- cultural equipment, and a hotel. Most of these projects have bees, completed except for the dam, a modest project which is in the final stages of construction. Several other Soviet aid projects agreed to in the mid-1950s were canceled by Burma as uneconomic. By way of comparison, the Chinese aid effort in Burma totals $84 million, one of Peking's largest economic aid commitments in the free world. Chinese aid projects include paper, textile, and plywood plants, bridges, sugar mills, and irrigation projects. Other Communist economic aid to Burma has been provided by Poland, which recently extended a $10- million economic credit and Czech- oslovakia, which has supplied a small amount of agricultural equipment. NASIR RESHUFFLES CABINET IN EGYPT President Nasir, in pursuit of a plan nourished since his re-election in March, last week designated Zakariya Muhieddin to form a new cabinet to increase efficiency and revivify the na- tion's spirit. The regime evi- dently intends to concentrate on solving internal problems. No changes in foreign policy have been announced, but Cairo may be considering a reduction of its involvement in expensive foreign operations. Prime Minister Muhieddin has been a close and loyal as- sociate of Nasir's since the 1952 revolution, and he is ex- pected to administer Nasir's policies faithfully. Previously head of Egypt's security service as well as a vice president, Muhieddin will probably tighten SECRET PAGE 18 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Rele 2007/03/06 : CIA-RDP79-00927A00Q0090001-9 SECRET up the regime's surveillance and control of subversive groups like the Muslim Brotherhood, which has recently re-emerged as a focus of public discontent and disorder. The retention of a highly qualified group of economic min- isters implies that the economic rationality they have recommended may now gain greater acceptance. In the past Nasir's concern for rapid economic growth and for influence in world affairs fre- quently led him to reject the advice of his economists. Now, however, Egypt's precarious economic position is forcing him to face realistically this greatest threat to his regime. Former prime minister Ali Sabri has been appointed sec- retary general of the flounder- ing Arab Socialist Union (ASU), Egypt's sole legal political organization. Nasir created this state party to instill revo- lutionary consciousness and fer- vor in the people, and hopes that the energetic, ideologically oriented Sabri can provide the forceful leadership the ASU needs if it is to have any chance of overcoming the apathy that has gripped it since its inception in 1962. The shift of the left-lean- ing Sabri to a position of es- sentially internal significance may have been motivated in part by a desire to placate the US from whom Nasir desperately needs to obtain a new PL-480 food as- sistance agreement. Without this aid, which has amounted to $150 million annually, Egypt's economy would have to undergo sharp cutbacks, slowing growth and leadin to public disaffec- tion. RHODESIAN INDEPENDENCE AT ISSUE IN LONDON As Harold Wilson and Rho- desian Prime Minister Ian Smith opened talks this week in London, the Wilson government appeared determined to talk tough. The British. prime minister, with the full support of his cabinet, will threaten severe economic sanctions if Rhodesia makes a unilateral declaration of independence (UDI) as expected within the next few weeks. Al- though a definite course of ac- tion apparently has not been de- cided on, US Embassy officials in London believe that a UK em- bargo on Rhodesia's major ex- port crop, tobacco, would be a virtual certainty, and that this might in turn lead to a wide-scale trade embargo. SECRET Approved FortF f 'asV200'f( /b&YdW4I -0092MUM00090001-9 Approve!"I%r Release 2007/03/06 : CIA-RDP79-D 0327A005000090001-9 SECRET The UK is concerned lest sanctions provoke Rhodesian re- taliation against Zambia, from which the UK imports 50 percent of its copper. Zambia relies on Rhodesia for coal, rail ac- cess to the sea, and electric power. Zambia's moderate presi- dent Kenneth Kaunda would pre- fer to continue his policy of restraining the Rhodesian na- tionalists based in Zambia and avoiding an open conflict with Rhodesia. However, a UDI would put him under heavy pressure from domestic militants and from the Organization of African Unity, which would probably call for a government in exile for the na- tionalists and military action against Rhodesia. The Rhodesian security forces are considered fully ca- pable of preventing widespread insurgency, and only a compre- hensive and sustained embargo by the UK and other Western na tions would seriously endanger the Rhodesian econom . ANTI-TSHOMBE POLITICIANS JOIN IN CONGO Intensive political maneu- vering following the opening of the Congolese Parliament has led to an open challenge to Premier Tshombd. On 1 October, Interior Min- ister Nendaka announced the for- mation of a new group--the Congo- lese Democratic Front (FDC) to oppose Tshombd's national coali- tion, Conaco. Tshombd's oppo- nents had been attempting to organize such a voting bloc since early last month. An FDC candidate narrowly defeated a Conaco man for the Senate presi- dency. However, Tshombd-sup- ported candidates won the Senate vice-presidency and both top positions in the more powerful Chamber of Deputies. Conaco is still the largest voting bloc in Parliament, but Congolese political alliances are fragile. Meanwhile, Colonel Hoare's offensive against the rebels' Fizi redoubt on the northwestern shores of Lake Tanganyika is still proceeding slowly. SECRET Approved Fop IFBse 20 R/$6~, A-)W79-009:Uq&A?OOW90001-9 Approved For Reese 2007, EC-IM P79-00927A0 000090001-9 MAJOR PARTIES CLASH IN NIGERIAN REGIONAL ELECTIONS All four major Nigerian par- ties are involved in a campaign for regional parliamentary elec- tions to be held in the country's Western Region on 11 October. The conservative, incumbent party appears to hold a slight edge by virtue of its control of the election machinery and its back- ing by the group which dominates the federal government. The frustrated opposition may resort to violence. The Western Region has been politically unsettled since 1962 when a split in the then ruling Action Group brought an unpopular splinter party to power. This splinter, now known as the Nigerian National Democratic Party (NNDP),probably would not win a majority of the 94 par- liamentary seats in a fair elec- tion. Its major liability is the serious economic situation in the West--once the federation's richest region--brought on mainly by the decline in the price of cocoa, the state's main crop. In an effort to retain power, the NNDP has turned to general pressure tactics and apparently to electoral rigging. It has banned all public meet- ings and demonstrations. On 30 September the electoral com- mission announced that 15 NNDP candidates had been returned unopposed. The opposition is challenging this in the courts, and may yet turn to more dras- tic measures. A similar devel- opment in the federal elec- tions last December resulted in a boycott and a major political crisis. Sporadic violence has al- ready been reported in the West, although the region has been flooded with police and army units. Despite federal Prime Minister Balewa's promise to use whatever force is necessary to maintain order, a major up- rising would seriously tax fed- eral security forces and could severely strain the federation itself. The election pits the NNDP, allied with the Northern Region's powerful conservative Northern People's Congress (NPC), against a progressive alliance of the Action Group and the National Convention of Nigerian Citizens (NCNC) which controls the Eastern and Mid- Western Regions. Barring a major upheaval, the postelection period will probably see defections to the 25X1 winning side and possibly the West's return to a virtual one- party system such as prevails in the other three regions SECRET PAGE 21 WEEKLY SUMMARY Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 Approved Foe Release ~O@~/~3iQ6r,G~q,-RDP79-0(A005000090001-9 NYERERE TIGHTENS CONTROL IN TANZANIA President Nyerere, strength- ened by the outcome of Tanzania's national elections late last month, has tightened his control of the government. His reorgan- ized cabinet reflects his deter- mination to concentrate on domes- tic development and may presage a period of improved relations with the US. Nyerere's overwhelming per- sonal endorsement at the polls gave him freedom to make exten- sive changes in his one-party state. He has assumed the ex- ternal affairs portfolio and transferred his radical national- ist foreign minister, Oscar Kam- bona, to the Ministry of Regional Administration. Nyerere is likely to continue his policy of non- alignment and his support for southern African liberation, but he may try to tone down his more extremist countrymen in order to improve Tanzania's image in the West, particularly the US. During the past year the emphasis on supporting Congolese rebels and other "liberation" movements has drained the coun- try's resources, jeopardized its security, and strained relations with Washington. Nyerere's ex- pectations of Communist eco- nomic aid have not been fulfilled, and he has become increasingly aware that only the major Western powers can provide the bulk of the aid he needs. His appoint- ment of a top-notch, trusted career officer to be the new ambassador to Washington is in- dicative of the impression he is trying to create. The new finance minister is an able, long-time confidant of Nyerere. Other changes have improved the government's competence and energy in the development field. Nyerere apparently is con- tinuing to balance the factions represented on the one hand by Kambona and on the other by party leaders allied with Vice President Kawawa. Those on the Kawawa group resent the ambi- tious Kambona, who was studying in England while they were build- ing the preindependence party, and they have been maneuvering to oust him as party secretary general. By relieving the over- worked and ailing Kambona of . his foreign affairs role instead, Nyerere has put him in a posi- tion to control and consolidate party and government structures at the regional level. At the same time the trans- fer of Kambona's closest cohort from the Ministry of Home Af- fairs, which controls police, refugee movements, and clandes- tine arms, places all security and defense under the Kawawa faction which is as radical as Kambona but more responsive to Nyer er e . SECRET PAGE 22 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 Approved For Relee 2007/03/p?VAV7-~,00927A00S@00090001-9 Europe A more determined opposition to De Gaulle's efforts to recast the Common Market may be emerg- ing from talks among France's five EEC partners. The loose "coali- tion" is still eagerly looking for an end to the crisis before the mere passage of time does serious damage, but it appears unwilling to accept De Gaulle's terms or even the toned-down interpreta- tions which some French officials have been passing out. New instructions which Bonn has given its EEC delegation in Brussels reject any revision of the EEC treaty to diminish the role of the commission or to elim- inate the provisions for majority voting. Bonn is willing to talk about improving cooperation be- tween the commission and the mem- ber governments, but it is wary of any formal understanding on either issue. With respect to financing the common agricultural policy--the question which sparked the French walk-out on 30 June-- the Germans will insist that sat- isfaction of the French on this be linked to progress on matters of interest to the other members. Although still under consid- eration, Belgian Foreign Minister Spaak's proposal for at least one meeting of the Six without the commission is also being treated with greater caution. The Dutch and the Germans are insisting that any such meeting be in the EEC framework, that it be a reg- ular session of the EEC Council, and that the commission be called in on any discussion of matters under its purview. The Italians also want the five to reach agree- ment on agricultural financing before they talk to the French. If the five decide to pro- 25X1 ceed with the Spaak offer, it is questionable that the French will accept, even thought De Gaulle might welcome an agricul- tural agreement just before the French presidential elections on 5 December. When council Presi- dent Fanfani met with French For- eign Minister Couve de Murville in New York on 29 September, Couve was emphatic that the EEC treaty must be "aylapted to the realities of intergovernmental relations" through gentlemen's agreements negotiated in an intergovernmental framework before an agricultural settlement is reached. He also made it clear that France would not attend a meeting of the Six during the electoral campaign. The five thus face the possibility that the French boy- cott will continue until at least early next year, and al- though they are exasperated with De Gaulle's blowing hot and cold, it is uncertain how far their courage will permit them to go. Pressure to take pending commu- nity decision, some with unavoid- able deadlines, may be equaled by pressures to avoid decisions in hope something will turn up, or out of fear that they might provide De Gaulle the excuse to leave the community. 25X1 SECRET PAGE 23 WEEKLY SUMMARY Sg 86& Approved For Release 2007/03/06 : CIA-RDP79-00927AO0590001-9 Approved For Release 2O 3 : I DP79-00927A005000090001-9 SEG~tE~` BRITISH LABOR PARTY CONFERENCE SHOWS FIRM WILSON CONTROL Prime Minister Wilson emerged from the Labor Party's conference last week with increAsed stature as a national leader and a tight grip on the party organization. He successfully turned back left- wing attempts to put the confer- ence on the record criticizing the government's foreign and domestic policies. His success helped to dispel the public's belief that the trade unions and the party's left wing exercise a veto over the government's policies. With the approach of a new parliamentary session, Labor Party supporters are increasingly opti- inistic that the Wilson government will remain in office despite its extremely narrow majority in Com- mons. The pound sterling's posi- tion is stronger, and there is im- provement in Britain's balance of payments compared with the same period last year. As a result, the optimism which filled Conservative Party ranks following the election of their new leader, Edward Heath, has been dissipated. In addition, faulty tactics by Heath--notably in condemning out of hand the government's new economic plan which leading businessmen helped to draft--have tarnished his pub- lic image. The US Embassy in London reports that Heath now realizes that such attacks on government policy have been too broad and negative. He therefore intends to use the Conservative Party conference--opening next week in Brighton--to spell out a constructive prescription for Britain's economic health and to build the groundwork for a vig- orous attack on the government's program when Parliament assembles on 9 November. In the meantime two by-elec- tions are expected, one in the Tory stronghold of London/West- minster and the other in the Labor seat of Erith/Crayford. Both results will be carefully scrutinized to detect an shift in 7 ty standings. SECRET 25X1 Approved ft9Veeease /Oiu~PbP79-00 179k'b15GO5OO90001-9 Approved For ReI Se 2007/0000 - 9-00927A09ii+'00090001-9 Western Hemisphere DOMINICAN GOVERNMENT STILL Incidents in Santo Domingo during the past week suggest that Communist groups have begun car- rying out their reported terror- ist campaign to delay elections and create anti-US sentiment by provoking clashes between Domini- cans and US troops. In four separate incidents, six US sol- diers and nine Dominicans were wounded. Former president Joaquin Balaguer claims, however, that the terrorist strikes are not the work of extreme leftists or Com- munists but rather of the "re- actionary element," which hopes, by spreading fear and panic, to establish an atmosphere conducive to a violent right-wing coup. The Octo er om ng of the offices of the pro- rebel weekly magazine Ahora may have been carried out by rightist elements. The propaganda chief of Juan Bosch's Dominican Revolutionary Party (PRD), Jose Pena Gomez, has stressed to Ambassador Bennett his concern over the mounting pressures from the extreme left. Pena Gomez painted a picture of CHALLENGED FROM LEFT AND RIGHT intense Communist effort to suc- ceed to the PRD's pre-eminent position in the rebel camp. He said the Communists were especially active in the labor field and had taken over the leadership of the PRD labor movement. Pena Gomez termed the arms collection program almost a total failure, although he did indicate that rebel leader Caamano has made a good try. The program for integrating rebel officers into the armed forces remains stalled, although 27 rebels who individually requested integration this week were accepted at the ranks they held in April and assigned to army posts outside the capital.----~ 25X1 The hassle over control of the University of Santo Domingo continues unresolved. The post- ponement of a scheduled meeting of the university's governing body until 9 October leaves the campus in the hands of the Communist- influenced insurgent university council. The delay indicates the weakness or disorganization of the legitimate authorities, who apparently still hope for force- ful support from Garcia Godoy. The President's intentions, how- ever, remain unclear. SECRET PAGE 25 WEEKLY SUMMARY Approved For Release 2007/03/06 : CIA-RDP79-00927A8 0005090001-9 Approved Releas J,/9 j; jj A-RDP79-OD927AO05000090001-9 SECHE The slanted newscasting and use of a rebel slogan on commer- cial radiobroadcasting which re- sumed on 4 October give little indication that the stations in- tend to abide by the political truce called for in the institu- tional act. Even the official Radio Santo Domingo has been critical of the US and the In- ter-American Peace Force for the continued occupation of several public school buildings by IAPF troops. Also, the continued operation of the Voice of the Dominican Armed Forces at the San Isidro Air Base in defiance of a government order to close remains as a challenge to Garcia Godoy's position as supreme authorit of the armed forces. I I OPPOSITION GAINS IN BRAZILIAN The gubernatorial elections in Brazil on 3 October have re- sulted in apparent victories in the key states of Guanabara and Minas Gerais by candidates con- nected with forces in opposition to the Castello Branco govern- ment. In both states, nearly complete returns show supporters of former president Kubitschek far ahead. The outcome may also undercut the presidential as- pirations of the incumbent gov- ernors, Carlos Lacerda of Guana- bara and Magalhaes Pinto of Minas Gerais, who had campaigned for other candidates. The strong showing by Fran- cisco Negrao de Lima in Guana- bara and Israel Pinheiro in Minas Gerais, both Social Demo- crats, presents serious problems for the administration. In ad- dition to his close ties to Kubitschek, Negrao de Lima has GUBERNATORIAL ELECTIONS accepted Communist Party support in the campaign. The final results in the other nine states involved prob- ably will be unavailable for at least several days, but incom- plete returns show one or two disturbing trends as far as the government is concerned. The strong showing in Alagoas of Social Democrat Muniz Falcao, for example, suggests a continuation of corrupt local politics that the administration has been de- termined to eliminate. Military leaders have re- acted strongly to. the election results, which they regard as representing a resurgence of leftist influences and corrup- tion. President Castello Branco is under pressure to take some action that will "reassert the authority" of the government. 25X1 SECRET PACE 2F WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Release 2007/01}t,:,r6J F~I?~9-00927A0Dk00090001-9 Ernesto "Che" Guevara has been dropped from the Cuban leadership, apparently because his opposition to Castro's views on ideology and practical poli- cies, particularly the economic ones, made him too dangerous and disruptive an element. Guevara's views on future Cuban economic development, the part Cuba should play in the Sino-Soviet dispute, and Cuba's role as a catalyst and supporter of revolutions in Africa and Latin America all seem to have been determining factors. Guevara was the chief arch- itect of Cuba's economy and the policy of accelerated industri- alization at the expense of agri- cultural production. By late 1963, the new industries had proven inefficient and the Cuban economy was in chaos. Soviet advisers, among others, recom- mended a "rationalization," with heavy stress on agricultural production, economic decentrali- zation, and the use of material incentives to increase produc- tion. Castro has been imple- menting this change, but Guevara apparently continued to oppose it. By excluding Guevara and four of his close associates from the new central committee of the Cuban Communist Party, Castro has renounced the economic policies they once represented. In a speech on 28 September, Castro revealed that he would shortly explain Guevara's six months' absence and constitute a party central committee. When the 100 members were announced three days later, Guevara and four of his proteges--two of whom are still government minis- ters and another a vice minis- ter--had been excluded. No other minister or high official was so slighted. Moreover, the new party's five-man economic committee is headed by Carlos Rafael Rodriguez--a long-time opponent of Guevara's economic policies. In addition to following precepts in internal matters which reflected Chinese more than Soviet inspiration, Guevara apparently continued to press for Castro's acceptance of the more militant Chinese policies in international affairs. Here, too, Castro's policies have un- dergone a significant shift, however, and Guevara's views have been ignored. Guevara's disappearance last March, im- mediately after his return from Africa and Peking, suggests that the positions he took there were a factor in Castro's decision. In another speech on 2 Oc- tober, Castro read what he said SECRET PAGE 27 WEEKLY SUMMARY 8 Oct 65 Approved For Release 2007/03/06 : CIA-RDP79-00927A005000090001-9 Approved For Release 20vk(wK QLA 12DP79-00927 A005000090001-9 was a letter from Guevara. Al- though it specifically expressed support for Cuba's foreign pol- icy, it indicated differences with the Cuban leader since the early days of the revolution. In an attempt to convey the im- pression that his withdrawal was voluntary, the letter said Guevara was abdicating all of alive. his official positions in Cuba because "other lands of the world" demanded his efforts. There is, however, no evidence to support rumors which have located Guevara in a number of Latin American countries or in the Congo. Inde.ed.there is no concrete evidence to permit con- jecture whether he is still Despite its success in quelling the September rebellion in the mines, the Bolivian junta faces multiplying problems. Dis- satisfaction among the miners remains, additional political disturbances are threatened, and some military officers are urg- ing political changes. In an attempt to pacify the miners, the junta has offered them a small basic wage increase. Initial reaction to the proposal appears to be favorable at some mines Trouble of another kind may develop in Cochabamba this week end in connection with a meeting of top-level leaders of the center-right Bolivian So- cialist Falange (FSB). Growing concern on the part of ranking officers with mili- tary involvement in politics also presents a potentially serious problem for the junta. A group of senior officers re- cently presented a memorandum asking the junta to: (1) an- nounce immediately the date for elections; or (2) set up a mixed cabinet including civilians; or (3) turn the government over to the supreme court. Barrientos apparently dissuaded this group from pressing the issue, but he admitted to US Ambassador Hen- derson that the memorandum is an accurate reflection of a sentiment which is spreading from officers to the lower ranks. SECRET 25(1 28 Approved For Release 207/03/06 M6A-RDP79-0092?/ Ot5080090001-9 25X1 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Release 2007/03/06 : CIA-RDP79-00927AO05000090001-9 Approved For Release LO :jCIA-RDP79-00A27AO05000090001-9 Approved For Release ?0ff t.-gIA-RDP79-00927AO05000090001-9