BI-WEEKLY PROPAGANDA GUIDANCE NUMBER 80

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CIA-RDP78-03061A000100050002-5
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December 4, 1961
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25X1C10b Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 Next 1 Page(s) In Document Exempt Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 Appt~oved For Rele 2000/08/27?: CIA-RDP78=0305M~A000100050002-5 FINLAND Republic of Finland Suamen Tasavalta CAPiTAI: Ielsinki. FLAG: The national tlag contains an ultramarine cross with an extended right hori- zontal on a white background. The Aland Islands (Ahvenanmaa) have, in addition, a provincial flag. ANTHEM: hfaana~iaelaulzc (in Swedish, Vdrt 1?ud) (Our Motherland). MONETARY uN~T: The markka of zoo pennia is a nonconvertible paper currency Fvith several official exchange rates. Par value is set at z?777 S7z8? of fine gold. One markka equal $o.o3zz5 (or $r equals 3zo markkaa). There are coins of z, 5, ra, zo, 50, zoo, zoo, and 50o markkaa, and notes of roo, 500, z,0oo, 5,000, and zo,ooo markkaa. WEIGHTS AND MEASt~RES: The metric system is the legal standard. HOLIDAYS: hTew Year's Day, r January; Epiphany, 6 January; Labor Day, z May; St. John's Day, zo June; All Saints' Day,. z November; Independence Day, 6 December; Christmas, z5 December; Boxing Day, z6 December. Movable reli- gious holidays include Annunciation, Good Friday, Easter Monday, Ascension, and White Monday. TIME: z p.m.=noon GMT. zLOCATIC>l~t, SIZE, AND EXTENT Finland, part of Fenno-Scandia (Scandinavian Peninsula, Fin- land, Carelia, and hula Peninsula), lies between S9? 48' and 70? 5' N. (about 7zg miles) and zo? 3J' and ;;r? 35' E, (about 337 miles). About one third of its total length lies above the Arctic Circle. It has land border on the tv~st with Sweden (536 km.), on the north and west with Norn?ay (7zg km.), and on the north and east ~~?ith the USSR (z,z6g km.). The sea boundary, Gulf of Finland on the south and Gulf of Both- nia on the west, i r,roo km. The total area is 337,oog km. (z3o,zzo sq. mi.), of which 305,396 sq. km. is land, 3z,Gz3 sq. km. water, excluding seas. Despite territorial losses to the USSR after World ~Var II amounting to 44,zo4 sq. km. or about zz~O of the country's total prewar area, Finland remains one of the largest European states. There arc ten provinces: Lappi, Oulu, Vaasa, Iiuopio, Turku-Pori, Hame, Mikkeii, Iiymi, Uusimaa, and Ahvenanmaa (Aland Islands). South and west Finland consists of a coastal plain with a severely indented coastline and thousands of small islands steel+:i:~ out to the Aland Islands. Central Finland is an ex- tensive ]aloe plateau with a majority of the country's 55,000 Iakes; 40% of the area of Mikkeli Province is water. North Finland is densely forested upland, and in the Norwegian border area are the highest elevations (Haltiatunturi near Enontekio , 957, y e rises r,3z4 meters or 4,344 feet above sea level). Extensive, .Russians, Swedes, and Germans), there were only two numeri- i t d n erconnecte Iake and river systems provide important natural waterways. The navigable length of internal }akes and canals totals z,7oo miles, the floatable length zG,Soa miles. aCLIMATE The climate is unusually mild for the high latitude. During winter Finland's temperature averages from r8? to zz.G? F. warmer than in similarly situated regions, zo.8? F. warmer in its average annual temperature, which is 33.8? F. Helsinki's temperature during z957 ranged from a tow of zz.z? F. in March to a high of 64.4? F. in July. Snow cover lasts from about go days in Aland to z5o days in Enontekio. It is gen- erally deepest in March, averaging a5,6 inches. Average annual rainfall over the years 2886-2935 has ranged Fmm a loGV of zo.4 inches in north Finland to a high of z7.5 inches in south 4FLORA AND FAUNA Forests, chiefly pine, spruce, and birch, are economically the most significant flora. There are over z,zoo native species of higher plants plus several thousand other forms. Of z3,5oo species of fauna, only 45a are vertebrates. Fur-bearing animals (otter, marten, emline) are declining in number, while elk, fox, and beaver have increased. Of some 30o species of birds, half of which nest in Finland, perhaps the best known is the cuckoo, the harbinger of spring. Thirty-three of some 68 species of fish have econoznic importance; in fresh waters the perch, walleyed pike, great northern pike, and others are plentiful. Salmon remains the favorite of flyrod enthusiasts. More than z r,goo species of insects have been found in the country. r'POPULATION On 3z December z959 the total population was 4,433,700; 63.4% Iived in rural districts, 36.6 Jo in towns. Population density averaged r4.3 per sq. km., from a high of 79.9 in Uusimaa Province to a low of z.r in Lappi Province. The five largest towns at the end of rg5g were: Helsinki, 453,800; Tam- pere, rz3,Gao; Turku, rz3,ooo; Lahti, G3,8oo; and Oulu, 54>700. At the end of z957 the sex ratio was r,o8z females per z,ooo males. Some 4zo,ooo evacuees were resettled in Finland fol- lowing the loss of the CareIian Isthmus and other territories. ?ETHNIC GROUPS Excluding resident aliens 0 405 at the end of r chi fl Gaily insignificant non-Finnish ethnic groups: Lapps and Gypsies. There were z,52g Lapps in r949, living chiefly in Inari, Utsjoki, Enontekio, and Sodankyli. Several societies have been estab- lished to foster the preservation of Lappish language and cul- ture. There were an estimated 3,56g Gypsies in x954, half chil- dren, found chiefly in Vaasa Province and adjoining regions. Studies indicated that r8% were completely nomadic in rg54~ 37% partially. About z5% were regularly employed as wage- earners; 40?,% of the adults over z6 years were unable to read. 'LANGUAGE Division into two language groups, Finnish and Swedish, has had considerable cultural and political significance in the past. In i95o Finnish-speaking were gz.z%, Swedish-speaking 8.640 of the population. (comparable percentages in z8go 86.o7?fo , and r3.56%). Decline in the Swedish-s caking element has Approved For Release 2000/08/27~~~IA-RDP78-03061A00010005~002-5 ~, Approved For Release 2000/08/27 :CFA-RDP78=03061~A0001000500~~-a ~ [s-is] bec:u due to LL higher rate of .emigration and a lower birth rate. Largest awarabers of Swedish-speaking Finns are found in the .;land Islands {g6.3% of their population in 1950), Uusimaa I'.ovince (z5.z~~c}, and Vaasa Province (28.6%). Swedish, the Second legal language, is given constitutional safeguards. Use of other languages is numerically unimportant: in IgSo only a.IZ% spoke Russian, 0.06% Lappish, and o.o$%p other languages. Fir.-? Wish belongs to the Finno-Ugric language group, and is closely related to Estonian, remotely to Hungarian. gREtIG10N Religious freedom is guaranteed in the constitution, but 9.3.3/0 of the populace belong to the Evangelical Lutheran Nataonal Church, which enjoys state support. Its supreme body is the Church Assembly, with jurisdiction over internal affairs; it also initiates church law, which requires the approval of parliament and the president of the republic. Also state-supported is the Greek Orthodox Church in Fint:uid, which had 74;3oy com- municants on 2 January 1953. Other religious bodies number 14, of which .the largest are the Free Church, Adventists, Je- hovah's Witnesses, Swedish Lutherans, Methodists, Baptists, Roman Catholics, and Jews. The Civil Register comprises those individuals who prefer not to affiliate with any church. Their number was zo2,538 at the end of Iy~7. eTRANSPORTATION At the end of Ig56 there were 35,o3z km. (21,763 miles) of main roads, largely gravel, under the Administration of Public Roads and Waterways, At the. end of 1957 there were 184,836 motor vehicles including Iz6,864 passenger cars and 55,820 commercial vehicles. In addition, there Isere SG,zSz motorcycles. Of the 5,256 km. (3,266 miles) of railroads in operation in Ig57, 5,200 km. (3,169 miles) were state-owned. The merchant marine totaled 777,068 gross tons at the end of 1957 (compared to the 257,000 tons remaining after World War Ilj; 274 were steamers and 186 motor ships. More than half of the ships are more than z5 years old. The maximum annual capacity of Finnish shipyards is -about 150,000 gross tons. The most im- portant harbors are Helsinki, Kotka, and Turku. In recent years about 45%a of the foreign trade is carried in Finnish bottoms. Owing partly to the loss of the Saima Canal after the war, canal traffic is about half of the prewar tonnage. Two companies, Aero (or Finnair) and liar-Air, are engaged in civil air transport over domestic routes. In 1957 they had 95 planes, of which zo were in scheduled service. The most important airport is Seutula (Helsinki). Twice weekly service between Helsinki and Moscow was inaugurated by Aero in February Ig56. After the UK, Finland uses more domestic air routes in ratio to population than any other European country. 10COMMUNICATIONS Postal and telegraph service are state operated. Telephone lines are bath skate and privately owned. There were 88,153 tele- phones connected with the state system, and 436,477 telephones connected with privately owned lines in 1957? Radio receivers are. licensed, the number in 1457 being I,rII,8g7. Of the licensees, 51.8% lived in rural regions. Broad- casting on both AM and FM frequencies is centralized in a joint-stock company Yleisradio, go% of its shares owned by the state. Experimental television broadcasting began late in 1956, regular programming on 1 January 2958. Suomen Televisio, an affiliate of Yleisradio, has transmitters at Helsinki, Lahti, Turku, aiau Tampere, III~ISroRv Fia~land, formerly a province of the Swedish kingdom (I150'S- 18oq) and an autonomous grand duchy of Russia (1809-2gr7), has been an ~~de~ea~ljt; ~?~ease-2~~~38~~7 present-day Finns, hunters, trappers, agriculturists, came to Finland by way of the Baltic regions during the first centuries A.D., spreading slowly from south and west to east and north. Swedish control was established gradually following several re- ligious crusades, the first around 1 154. By 1 z93 Swedish rule had extended eastward as far as Karelia, with colonization by Swedes in the southwest and along the Gulf of Bothnia. As a result of over six centuries, of attachment to the Swedish realm, h'innish political institutions and processes (marked by growing constitutionalism and self-government), economic life, and so- cial order developed largely along Swedish lines, After Sweden's military defeat in r8o8-og, Finland was trans- ferred to Russia. Alexander I granted Finland a privileged au- tonomous status, continuing the grand duchy's constitutional heritage. He, like his succe3sors, took a solemn oath to "confirm and ratify the Lutheran. religion and fundamental laws of the land as well as the griviiE.ges and rights- which each class and all the inhabitants have hitherto enjoyed according to the con- stitution." During the quies-cent years of the conservative reac- tion {28o9-6z), a nationalist movement found support. Toward the end of the Igth century a Russian drive to destroy Finland's autonomy ushered in sever~~~rge:~g~~igq~ ~~'~~~f all males Study Group, o t rg ern en a organizations, r4 years of age or a er an 8a.4 v o em es gainfully ;.:b~,;,~ ~-p~~~gved ,For Rel?~e 2000/08/27': CIA-RDP78=030'6r4'A000100050002-5 c:tt:l~los?cd, a total of r,984,z8a. The average age of retirement is high; in 1950 nearly 59% of the men and zo% of the ~~,~omer, aged 65 and above were still gainfully employed. The percentage of the labor force in the various sectors , of the economy as of IgSo was: agriculture 39.3;'0, forestry S.9ojo, mining o.3%, manufacturing and handicrafts z1.zGjo, construc- tion 6.z%, commerce 8.I%, transport and communication 5.4%, services 11.4 per and others a.a%. Owing to a large number of births inullediately after the last war, a Io% increase in the labor farce was expected between IySo and 1960, and a 14% increase between r96o and 1990, or approximately 500,000 new workers: The problem of expanding employment opportunities in order to avoid both large-scale emigration and unemployment is being studied. The two major trade union federations are the Confederation of Finnish Trade Unions (Suomen Ammattiyhdistysten Kes- kusliitto or SAIL) having 37 affiliated trade unions with a combined membership of a38,680, and the Confederation of Salaried Employees (Toimihenl;ilo ja Virkamiesjarjestojen Kes- kusliitto or TVK, fornierly the HTK), having z6 affiliated unions representing Io6,93o members early in Ig58. In addition there is the STTK (Suomen Teknillisten Toimihenkilojarjesto- jen Keskusliitto), representing five groups of managerial and supervisory employees. Since 1957 the SAK has been a member of the ICFTU. The Finnish .Employers' Confederation (Suomen Tyonan- tajain Keskusliitto or STK) consists of z8 affiliated trade as- sociations representing a,1oo employer groups. Working closely with the STK are the Confederation of Commercial Employers and the Confederation of Agricultural Employers. The STK is a member of the CFIE. Labor relations are generally regulated by collective -agree- ments, usually of a year's duration. Disputes over their terms are heard by a labor court. While mediation of labor disputes is provided for by law, work stoppages have occurred. A serious general strike took place during I-r9 March 1956, idling 500,000 workers. Workers' protective. legislation is extensive, the first laws stemming back to the last century. There are both public and private labor exchanges. The unemployment situation was worse in 1955 than in any previous postwar year; in March; there were 98,IO0 registered unemployed or z.6% of the total population, a majority of whom were, however, placed in various work projects sponsored by central anil local authorities. zYAGRICULTURE Finnish farming is characterized by the relatively small propor- tion of arable land under cultivation (only about 8% is agri- cultural land} and by the large proportion in forest land; farming is everywhere set within the frame of the forest. In IgSo, 15.5 million hectares were used as follows: garden plots 0.1%, cultivated land 15.6%, meadows I?.4%, cleared pasture. 0.4%, forest land 69.6%, roads I.o%, and fallow land II.g%. Small-sized fauns were created by a series of land reforms beginning with the Lex Kallio of 1922 and continuing through -the Land Expropriation Act of 1945. In 1950 out of a total of 465,655 holdings, 203;905 were under z hectares; 187,834 were between z and Io hectares; 62,498 were between Io and z5 hectares; II,z15 were between z5 and loo hectares; and zz3 were more than loo hectares. Finnish agriculture also is marked by the predominance of fodder production (hay, oats, and other crops whose ensilage value has been greatly improved by the AIV method--after A.I. Virtanen), the excess of milk production over domestic needs (res,.~p~itsoda~?~f~~~s?u}d0~0~0d~~d~,: C and the deficiency in cereals (a prewar-self-sufficiency of 90% increment has exceeded the annual removal. has dropped to about 40%). The principal agricultural products in 1957 (in million kg.) : CEREALS MII.R HACOIS ECCS Production ?gLg 3,153 64.3 35.0 Lnports 4o9.g - 0.1 - Exports ~ - 63r 0.6 4.6 Consumption 6gg.4 2,5x2 63.8 30.4 The significant increase in rnitk production has been largely due to government price supports and export subsidies {-amount- ing to Iz,Soo million markkaa in 1959), increased use of ferti- lizers, and progressive rationalization of the dairy industry. During, the crop year 195556 milk made up 60% of the total value of all agricultural production. Because of growing consumer preference for margarine (in Finland the consumption of butter fell from 16.1 kg. per capita in Ig55 to Iz.6 kg. in 1957, while in the same period the per capita consumption of margarine rose from 5.8 kg. to 8.I kg.) and of foreign market (chiefly the UK) uncertainties, there has -been extensive dis- cussion of the readjustment of agricultural production. Among. measures advocated have been the increase of cereal production, a decrease in .the production of fodder and in the imports of foreign concentrated fodder, and a strengthening of butter's competitive position. Use of agricultural machinery increases. The number of tractors increased from 14,452 in 1950 to about 55,000 at the end of 1958. By 1958 approximately 80% of the farms had electricity. zsANIMAL HUSBANDRY Considerable progress has been made in cattle breeding, chiefly Ayrshires. The number of cows has remained fairly constant during the last decade, I,138,z6o in 1957. About go% of the country's more than 400 dairy plants are cooperatively organized, with an average of 532.7 suppliers per plant. In recent years the numbers of horses and sheep h~yve declined while chickens have increased significantly. In 157 there were 275346 horses, 1,844>744 cattle, 534,249 pigs, 457,460 sheep, 6,308,444 poultry, and 18,448 beehives. z3FISHING Fishing is an important source of -food. In 1953 a total of 219,900 persons took part in fishing, but only 3,goo as full-time professional fisherman. The total catch was 6o,17a: tons; 42,532 tans from the sea, x7,639 tans from inland waters. The most important species, in tonnage, were: Baltic herring 30,885 tons; perch, 4,882 tons; northern pike, 4347 tolls; coregonus aIbula, 4,049 tons; bream, 3,534 tons; whitefish, 2,813 tons; sprat, 1,784 tons; pike-perch, 1,590 tons. Eleven vessels engaged in Icelandic herring fishing during 1951, bringing in a catch of L5 million kg. The monetary value of fish caught in the sea in 1957 was 2,956 million markkaa, inland lakes 2,460 million markkaa. =FORESTRY In 1951-53 Finland had zI.8 million hectares of forest land (91.9% of total land area), of which 19.3 million hectares were productive woodland. The most important varieties were: pine 43.7%, spruce 35.7%, and birch 18.3%. As of 1 January 1957 62.3% of the productive woodland was privately owned, 28.3% owned by the state, 7.4% by companies, the rest by communes and religious bodies. The growing stock (including bark) amounted to 1,491 million cubic meters. The annual growth (excluding bark) was 46 million cubic meters. The total timber felled for sale in the 1957 cutting season (chiefly spruce pulp- woo~ softwood logs, pine ul wood, fuel wood, and pitprops) ~'7o8~A~308t1a~10,~50t~~~5y the annual ~?~ Approved For Release 2000/08/27 : CI'A-RDP78-03061JA00010005000~~~5and [a6-3o]F 'i'hcrc ha; tacen ever-widening acceptance of modern forestry important industrial regions center around Helsinki, Tampere; practices.:1 significant role is played Uy both public and private Turku, Lappeenranta, Lahti, Jyviiskyla, and the valleys of the foresters as well as by national forestry legislation. Kymi and Iiukemiiki rivers. In Ig56 privately owned joint stock z1i f1"i I N 1 N ~ companies accounted for 78So of the gross value of production In Iy53 there were Aga firms engaged in mininc and quarrying, and employed nearly 75% of the industrial labor force. The ten employing 8,4u workers.:Vlining has shown significant advances. largest industries were: during recent decades owing to increased operations at the state-owned Outokumpu copper mine and the opening of new mines elsewhere.. Outokumpu, with reserves put at zo million tons of 4io ore, increased its production from 399,x00 tans of raw oee in 1934 to x,387,668 tons in 1957 and its production of copper from 13,455 tons to z5,8z7 kons in the same period. Copper production in Finland is double the domestic consump- tion. Most important new mines are the zinc mine at Vihanti (4oz,S7o tons of raw ore in t9J7), the state-owned titanium iron ore mine at Otanmaki 009,783 metric tons of iron concentrate in 1937), and a nickel mine at Leppavirta expected to .compensate partially for the loss of the Petsarno mines, Total ore mined in Finland rose from 450,000 tons in 1939 to z million tons in 1456. The production of ore concentrates and metals in 195y included: capper .concentrates Izz,zoo tons; pyrites zgz,3oo tons; zinc concentrates 80,800 tons; lead con- centrates 4,500 tons; iron concentrates x09,800 tons; itmenite concentrates Io5,7oo tons; electro-copper a5,8oo tons; gold 494 kg., silver r1,6zo kg. Finland is self-sufficient in cement, lime, and various crushed and ground limestone products. Limestone production in 1457 ~cas approximately z.3 million tons. =7ENEROY AND POWER The total energy requirements of Finland in 1957 were the equivalent of 13.7 million tons of coal, of which zz7~~ was produced by water power, 39.8~~ by domestic fuels, 18.7~,~ by imported solid fuels (coal and coke imports in 1457 were 3,059 million kg.), and 18.8% by imported liquid fuels (petroleum imports in 1957 were g6.z million kg.). The total consumption of energy during the period IgzB-55 increased approximately x.75 times; it is estimated that energy requirements by 1970 will be double the 1955 figure. The increase in the demand for electrical energy has averaged about 13% per year; it will probably continue to grow at the rate of 8% after 1960. The 1957 consumption of electrical energy was 7,090 million kwh. The demand for electricity continues to exceed output despite continuous construction since the ~var (especially in northern Finland) of hydropower and thermal power plants. During. the last five years new construction has made available an average annual increase of 440 million kwh, compared to the average annual growth in demand of 590 million kwh. The estimated energy potential of Finland's water resources has been placed at 18,000 million kwh per year, of which 7,030 mil- lion kwh per year was being utilized in 1957. Studies of the country's future power requirements indicate the need not only for fuller utilization of these hydroelectric resources but even greater use of thermal generation in normal water situations and larger, ilnports of fossil fuel than in the past. The pos- sibilities of atomic power are being explored. 28INDUSYRY Since the end of ~8orld War II industrial progress has been noteworthy. Contributing factors include: forced stimulus of reparations payments, larger quantities of power, increased. min- ing operations, growing mechanization of agriculture and forestry, development of transportation and communication. In 1956 there were a total of 7,x65 industrial (including mining) estab- lishments, which employed 318,.569 wage earners and 55,498 vertising Managers Association (Mainoshoitajain Yhdistys). salaried staf~rO>a~a~E#I~~I~Rel~~e ~aAlt~l~0~ll~~n: CfS~FRR~7C$+`0$?~1~A~c000100050002-5 Iti DUSTRY FIRMS WO RKERS CROSS VALVE OF OVTPV7 (MILLION biARKKM} Foodstuffs 1,542 30,133 193~~5.8 Paper zoz 2$,215 130,884.5 Electricity and gas 46z 9,891 6x,838.9 Wood products 754 30,177 51,034.9 Textiles 340 36,73= 50,804.1 Footwear and clothing 573 3o,z51 4,017.8 Transport equipment 48z z7s419 41,477.6 Machine 3z8 z4~9o6 39,371?z Chemical Ig8 8,851 37,188.0 Metals basic 66 6,z4z 35,783.6 Industrial (handicraft) establishments, each employing less than five workers, numbered Ig,o79 in r95z with a total labor force of approximately 30,000. The most important industrial exports include wood products, pulp and paper, ships, paper-making and other kinds of ma- chinery, electrical apparatus, and cables. The index of industrial production for 1457 stood at 115 (1954=100); in Ig58 it fell about g%. Productivity per working hour rose from 84 in 1945 (1938=100) to 170 in 1958. The rise in industrial productivity is one of the most inr,portant explanations for the fact .that Finland managed to pay of? war reparations and pass through a period of enormous reconstruction without inflation or other unbalancing factors. ="DOME571C TR~~DE Domestic trade is carried on through the customary wholesale and retail channels; in Ig53~ 3045 establishments engaged in wholesale trade, employing 33.479 Persons. Their 1952 sales were 478,148 million markkaa. They may be divided into organi- zations affiliated with the Finnish Wholesalers Association; the Kesko wholesale company controlled by. rural retailers; the cooperative wholesales SOK and OTK; producer cooperative wholesales such as Valio and Hankkija; and specialized whole- sales such as the Teknillisen Tuonnin Keskusliitto, an associa- tion of importers. ' Of 33,35z retail establishments in 1953, iS~5a5 were privately owned, 4,6zz by joint stock companies, and 8,755 by cooper- atives. Sales at retail were 391,696 million markkaa in 195x. Cooperatives play a prominent role in the distributive field. Office hours are gener~clly from g a.m. to 4 p.m.; government offices are open from 8:30 a.m. to 4 p.m. {3 p.m. in summer). Stores and shops are open from 8:30 or g a.m. to 5 p.m., Monday through Saturday, but some stores close at 1 p.m. on Saturday, Most of the trade fairs in Helsinki are arranged by Suomen Messut, an organization especially established fqr that purpose. The zz general and z1 specialized fairs held under its auspices from Igzo to 1957 drew about 3.6 million spectators. Since 1952 Suomen Mes:sut has been responsible for the official Finnish trade displays abroad. There is steady acceptance of modern advertising techniques, including three-color advertising in newspapers. &rva-Latvala is one of the most important advertising agencies. Advertising associations include the :Finnish Sales and Advertising Associa- tion (Suomen Myynti- ja Mainosyhdistys), the Council of Advertising Agencies (Mainostoimistojen Liitto), and the Ad- output with a r ss value of 834,760 million markkaa. The It~ost Finnish foreign trade is characterized by the following: (z}-the ~ 3Approved For Rela~e 2000/08/27 :CIA-RDP78-030~A000100050002-5 dominant. role of forest products in the export trade; 77.6% of the total value of exports in Ig58 was derived from round and hc~vn timber, wood industry products, and paper industry products; (z) an increase in the export of metal industry goods, wl;ich in 1958 n7ade up 13.7?,p of the value of exports; (3) a considerab',e export of butter and cheese (about 4% of the total value of exports in Ig58), made possible by large-scale state subsidies; (4) extensive imports of raw materials (5L3/o of the total value of imparts in Ig58), fuels and lubricants (14.0%), and finished consumption and investment goods (34.7%); (5} a changed geographical distribution of foreign trade compared to the prewar pattern, marked by increased trade with the USSR and declining trade with Germany and the UK. During 1958 the value of imports amounted to 233,132 million markkaa, exports 247,866 million markkaa. Despite the devalua- tion of the markkaa in September Ig57, the volume of exports in Ig58 fell 3oJo from the 1959 level, imports by II%. The conditions of foreign trade have been greatly liberalized in recent years, and at present trade and payments restrictions in Finland are at approximately the same level as in the Scandi- navian countries. Principal exports in Ig58 (by value, in millions of markkaa) were: Paper industry products I15.z Woad industry products 57.8 Metal and engineering industry praducks 34.0 Raund and hewn timber 19.3 agricultural products Ia.ry Other items Io.g Principal imports in Ig58 (by value, in millions of markkaa.) were Raw. materials and accessories 119.5 Finished producer goods 48.6 Fuels and lubricants 3z.ry Finished consumer goods 323 Principal trade partners in 2958 (by value, in millions of markkaa) were 1953 -f- 9,695 1954 -}- 4,481 1955 -~- 4,299 1956 -25,571 1957 -=5,542 1958 -i-14,734 The balance of payments during the period Ig53-57 in billion markkaa was: YEAR RECEIPTS PAYMENTS BALANCE 1953 1573 145?I -{-rY.z 1954 184.8 17z.o -1-x2.8 1955 zrry.I 2oz.5 -1-x4.6 =956 2x8.9 z31.g -r3.o 1957 z6o.4 262.2 - I.8 A surplus ?on transportation has generally contributed to a favorable balance of payments. On 3r January IgSg the total foreign exchange reserve stood at 60.3 billion markkaa, a figure higher than at any corresponding period since the end of the war, yet modest in comparison to other countries. It was held in the following categories (in billion markkaa) : gold- q.8; convertible currencies and transferable OEEC 36.0; nontrans- ferable OEEC 5.q; Eastern bloc currencies so.3; other cur- rencies o.5. az63ANKING The central or government bank is the Bank of Finland (Suomen Pankki), established in 1811, with headquarters in Helsinki and Iz branch offices. Possessing extensive autonomy though subject to parliamentary supervision, and endowed with extensive mone- tary and fiscal powers, the hank's affairs are administered by a five-man board of management appointed by the president of the republic. It has an exclusive monopoly over the issuance of notes and has negotia#ed virtually all foreign credits reloanecl to Finnish borrowers (since 195b through an affiliate, the Mort- gage Bank of Finland). The bank's total assets as of 31 January 1959 were Is7,6gg million markkaa, of which q,85o million were in gold and 54,4x4 million in foreign exchange. Other banking and credit institutions at the end of 1957 included: six commercial banks with 553 branch offices (reduced by merger to five banks and 937 offices on I October 1958), and assets of zlz,IZ3 million markkaa; 4i1 savings banks with 2.6 million deposit accounts totaling 118,650 million markkaa, and assets of 134,709 million markkaa; 9 mortgage banks with assets of 16,834 markkaa; 563 cooperative credit societies with assets of 90,085 million markkaa; a central bank for cooperative credit societies with assets of zb,448 million markkaa; a post office savings bank with z,o93 branches and assets of 65,571 million markkaa. In 1955 the total amount of credit made available was 46o,glg million markkaa, of which the Bank of Finland provided 3.6%, the Institute of National Pensions II.8%, commercial banks 34.6%, mortgage banks I.6%, post office savings bank 5.z%, savings banks zo.ry%, cooperative credit societies 13.4?fo, and insurance companies g.1%. The Bank of Finland discount rate has ranged from b.5% to 8%, and in October 1958 was reduced to ry.z5%. The average interest. rates of lending institutions on 3r December s957 were as follows: EXPORTS IMPORTS BALANCE tJK 54,8rI 4o,r z4 14,687 USSR 42,780 41,937 843 West Germany 26,946 38,6ory -II,66x Sweden 8,925 19,285 -so,36o France 15,328 =a,885 4,443 TJS 1x,471 Iz,478 -1,007 Netherlands Io,gz4 9,973 951. Belgium-Luxembourg g,ool 6,561 z,44.o 13razil 5,9aa 8,586 2,664 Poland 6,563 7,276 -713 Denmark ry,4zo 5,501 1,919 Other countries 47,775 31,919 15,856. surplus of exports -{-, a surplus of imports -): n aEPOStrs toANa Commercial banks 4.51i?Io 7.95% IgSo - ry,66g million markkaa- Savings banks 5.32 7.96 ~95~ App 3~ For Release 2000/08/27 : CIA~~.~~~010010002-; a18ALANCl2 ?~ PAYMENTS Finland?s terms of trade since 1950 have been as follows (a ice; ~, Approved For Release 2000/08/27 :CIA-RDP78-03061-A000100050002-5 ? ? Finland [33-371 During rJSS and early r9J9 interest rates fell. At the end of xgSS approximately zo jo of all deposits were tied to the index, at the rate of So%, Currency in circulation rose from 27,9 million markkaa at the eud of r94S to 69?r trillion markkaa at the end of r95S. ~'~INSURANCE Insurance is highly developed and diversified. In r9JG there were ten companies engaged in life insurance (the uldest ttetiun in 1374). with total assets of 34,$92 million markkaa. Uver two million policies were in force; premiwns amounted to 6,699 million markkaa and claims paid 6,836 million markkaa. I'ifty- five firnts were engaged in other than life insurance, with assets of 39,4rz million markkaa; premiums paid during r955 were Ig,ig7 million markkaa, claims paid r4,94z million markkaa. There were. 252 sickness benefit societies with 133,213 mctnbers; 48 funeral aid societies with 86,695 members; 39 pensions societies with 44,624 members. In 1956, z6g local fire insurance associations were in opera- tion with premium collections of 557 million markkaa and claims paid, 3.37 million markkaa; g4 local livestock insurance associations with premium collections of z5 million markkaa and claims paid 16.8 million markkaa. 1'~'orkmen's compensation and automobile third party insurance are compulsory. Other forms of insurance include forest fire, glass, burglary, rain, water damage, maritime, fidelity guarantee and credit, fishing tackle. a~SECUp.ITIES There is an eschangc at Felsinki (established in 19rz) author- ized to deal in stocks. Ie has a board of governors: six chosen by the Helsinki chamber of trade, three by the banking as- sociation, and .three by members of the exchange. Five of the 45 firms represented in the exchange in Ig57 were banks. In 1957 the total sales in the exchange amounted to 2,332 million markkaa, of which 1,777.5 million represented industrial shares (chiefly of such companies as the Kymmene, Finska Gummi, Pargas, -and ~Vartsila), 370.4 million markkaa bank shares, and 42.1 million markkaa insurance shares. The general share index in 1957 stood at 430 (Ig48=t;oo). 35PUBLlC FINANCE Budget estimates are prepared by the Ministry of Finance and submitted to parliament. They are referred to the finance com- mittee and subsequently reported back to the legislature. Sup- plementary budgets are usual. State revenues and expenditures for Igg7 in thousands of markkaa were as follows: REVEN VES Taxation 219,951,1 16 Public services 3,ry1g,616 Interest and dividends 17,573,294 Miscellaneous 31,351>530 State enterprises 2,112,832 Revenue proper 274,708,388 Capital revenue zo,18o,ry8ry ESYENDITVRES President of the republic 38,334 Parliament 5X4,041 Government and chancellor of justice 133,329 Government chancellery 37,415 Ministry for foreign affairs 840,654 Ministry of interior Iry,8go,g6g Ministry of ;usti~~ ?1'~d Foa~~ease 2000/08/27 Ministry of Einar e~ 3,649,893 ~sinistry of defense 11,80x,875 Minislry of education x7,587,071 Ministry of agriculture Ministry of communications and public works .15,795,968 Io,ryo6,471 Ministry of trade and industry 4,956,040 Ministry for social affairs 45,764,Ix8 Miscellaneous 4o,ry63,12I Pensions and relief payments. 6,807,633 interest on public debt ~ 7,ozo,43z State enterprises and forests I,86o,400 Expenditures proper z98,66ry,o16 Capital expenditures- aor,936,346 Finland's public debt (itt billions of markkaa) is summarized below D EC. 1955 DEC. 1956 DEC. 1957 nEC.Igg8 Internal debt 55.7 66.6 6g.g 68.3 Ordinary Loans 43.0 50.7 52.9 6L5 indemnity bonds, etc. 6.8 ~ 7.1 7.4 7.3 Short-term credit -? -- - Lz Cash debt (net) S,g 8.8 g.6 1.7 External debt 61.3 61.5 81.8 79.0 TOTAL DEBT IIry.a Z28.I 151,7 147.3 (in millions of dollars) Sob.3, 554.5 472.7 459.8 By September 1958 the total debt had risen to 163.1 billion markkaa ($So6.z million). ~;~TAXATCON During x957 the state rt;venue from taxation amounted to 218,951 million markkaa, of which .Direct taxes (I,ODO MAR%%AA) ry2,58o,601 Customs duties ~ 41,6310735 Excise duties 19,46o,rya8 Stamp duties ro,43z,6g5 Purchase tax 68,723,983 Automobile and motorcycle tax Bryl,go4 Export levies 6,250,000 Of the direct tax revenue, q8% came from income and property taxes. Taxpayers in 1455 in the various taxed income groups were as follows: TAXED INCOb1E NVMHER OE TAXPAYERS Izo,ooo- 299,999 markkaa 394,986 300,000- 499,999 331,4$9 500,000= 799,999 Io6,849 8oo,aoo-I,499,ggg 330305 I,Soo,oo0-3,999,999 8,828 4,000,000 and more 815 In the communes during 1957 the tax per loo markkaa of income vas as follows: all communes r1.z4 markkaa; towns 11.98; .market towns 11.45; rural districts Io.3o, The taxed income was (in Iaa,ooo markkaa): all communes 5,762,392; towns 2,801,335; market towns 540,659; rural districts 2,420,348? a7CUSTOMS AND DUTIES In r957 the customs department reported a total revenue of 43,i2z million markkaa, of which 42,418 million markkaa were derived from impart duties, 4 million markkaa from export duties, the rest from miscellaneous fees and lines, The,pcrcentage of state revenue obtained from customs was 19.8%; in 1938 it had been 48.1 %? Duties, .bath specific and ~ ad valorem, have .u~fiq?-'F~D~~~4~0~~41~(~4~~0~~ific rates 'in Ig55 were 15 times the prewar levels. Beginning in 1956 there bas taken place a progressive liberalization of trade condi- Approved For Rel~erse 2000/08/27 :,CIA-RDP78-03U6"fA000100050002-5 tines, including; duties. In the fall of r9yS the free list rc- i~,rc~eutr..d about Sz;'~, of the total imports on private account f.~;nx the principal ti'est European countries. There is as yet no free port but there are free warehouse facilities in Iielsinki, 'Turku, and Hanko. :i"Ft3REIGN INVESTMENTS l~or a ~xumber of years only the state and the Bank aI Finland wc;re able to negotiate long-term loans abroad, although in some cases individual firms obtained credits an a state guarantee. Private loans without such guarantee were few, alnxast ex- clusively -for lxurchase of ships. Since 1958 these loans have become mare frequent and medium-term import credits were made available by different countries. The most important post- svar public credits include an UIrTI~'RA loan of $3 million., an h:xpart-Inxport Plank lawn of 4,Soo ntillion markkaa, and seven loans from the IBRD totaling $roz million. Private import credits were negotiated in West Germany 'chiefly, also in the Netherlands, Sweden, Switzerland, UI~, and US. During r953 private credits. obtained from different countries totaled 4,400 million markkaa. The interest payments on all foreign loans in rg~8 amounted to 3,goo million markkaa. I'reland's long- term liabilities (in millions of markkaa) on 3r December 1958, were: UFti 5oa Other EPU countries 43,$oa USSR 6,400 US 34~3~ south America r,ryoo IBRD r3,goo roo,roo 3~ECONOAAIC PolICY Problems arising from the war-reparations, loss of resources in the ceded territories, compensation to the evacuated and displaced population, and reconstruction-have dictated the main lines of Finnish economic policy. Reparations were originally fixed at $30o million (r938 price level), payable in six years. They were subsequently scaled down to $226.5 million payable in night years. The value of goods delivered was very much higher in current prices; one carefully `worked-out estimate put the total indemnity bill at $949 million at 1944 prices (reparations plus impositions laid down in the Paris Peace Treaty and Potsdam Conference). The reparations pa}::::ats amounted to 6.4% of the total net product in r945> declining to about z.1% in i95r: During the first year 78% of all exports were reparations goods; the reparations payments of the first six years were the .equivalent of 340,000 freight carloads of goads. Finland's success in meeting these heavy obligations was due mainly to four factors: (r) the rapid development of industry and of productivity per worker; (z) a favorable export situation for forest products; (3) foreign capital investments and loans; (4) remission of most. of the penalty payments on reparations. Extensive governmental control of the economy was inevi- table, over supplies, prices; wages, rents, foreign trade, and foreign exchange. A crucial role was played by the Bank of Finland, which was charged with maintaining the value of the markka against serious inflationary pressures, safeguarding for- eign exchanfie, creating employment, and stimulating industrial expansion. Many of the controls have now been abandoned, although not completely in reference to trade with the dollar area and the Eastern bloc. Some growth in government-owned assets amounted to 1 ~ y,965 million markkaa, and their earnings in r957 reached Ig,zr4 million markkaa. hinland has participated in the work of the :'~ordic Economic Collaboration Committee, and views the proposed Nordic Com- mon Market with cautious optimism. 4UHEALTH Public health and medical personnel in r959 included 2,558 physicians (one -per r,7ra population), r,56z public. health nurses, r,664 midwives, 7,03o nurses, 2,567 nurses' aides, z,75t mental hospital nurses, r,657 dentists, 3rG dental technicians, and Szo dispensing chemists. In 1956 there were 360 civilian hospitals (zz5 general, 37 mental, z7 maternity, z8 tuberculosis, 43 epidemic diseases), with a total of 34,886 beds (or eight per r,ooo inhabitants). An overwhelming majority (324) were publicly owned. In r958 the death rate was 8.9, the infant mortality rate 23.7 per thousand. Respiratory illnesses are common, but otherwise the health standard is high. Public health laws, notably the uniform Public Health Act passed during the war, establish standards followed by the provincial and lacat autlxorities. "5oCIA! WELFARE In recent decades the social services have been greatly expanded and diversified. Total social service expenditures during r956 were 91,r8r million markkaa, of which approximately 48% was met by the central government, z3% by local governments, z4% by employers, and 5?Jo by the beneficiaries. Total social welfare expenditures in r955 amounted to ro.8% of the net national income. The major social service areas are: (r) care of the aged, disabled, and needy, (z) care of war victims: ~5'1daWS, orphans, invalids, displaced persons; (3) maternal and child care: allowances for mothers, children, and families, loans for establishing homes, vacations for .mothers, housekeeping assistance, free school lunches; and (4) care of alcoholics and vagrants. Each local governmental unit is required to establish and maintain a social welfare board under the supervision of the' national Ministry far Social Affairs. There are also private welfare organizations, some of which (like the Mannerheim Child Welfare League) have won widespread recognition. The Ministry for Social Affairs is also responsible for such matters as health insurance, workers' protective legislation, unemployment insurance, labor exchanges, and pensions. A new national pensions law enacted on z3 May i95b widened the coverage and increased the benefits. Expenditures under the new law, which went into effect in 1957, are approximately three times those under the 1937_ law. 4zHOUSING The end of World War II found Finland facing a critical housing shortage. Some 1 r z,ooa dwellings were lost in the ceded territories, and homes had to be found for the displaced persons; r4,ooo dwellings were severely damaged during the war; and only a modest amount of new housing was built from 1939 to r944? To deal with this situation, it was necessary to divert large investments into construction. During postwar years as much as r3% of the gross national product was devoted. to building, compared to a prersar rate of around 9%. As high as 65% of the total investments was in this field. Government participation, chiefly in making large-scale credit available on reasonable terms, vas inevitable. Among other laws, the Land Acquisition Act and the Arava Law stimulated building. During 1949-55 a total of 68,000 dwellings were built under the provi- sions of the first law. During r94g-56, 48,800 million markkaa in Arava funds were loaned; and about half of the building in enterpriAp~"(~Jtedl~Qr Re~~IS~~O~~/2~ere6~lA-R~P7~Sa6v9iyll~:p~i ~Oq~fp~erj3a,7og dwellings establishments owned entirely or largely by the state. Their built in 1957 {with a total of ro5,8zq rooms), nearly 54% :. ~ Approved For Release 200008/27:CIA-RDP78-03061A000100050002-5 Finland L43-467 tiverc built by private .individuals, 34?/o by housing or real estate companies, 6 /o by communes. Overcrowded conditions persist, especially in larger towns. 9:;~I?U-CATION - Illitcracy is virtually nonexistent (o.z%). As long ago as the 17th century, church law required everyone to be able to read. Compulsory school attendance dates from 19z1, at present be- tween the ages of seven and r6. A new public school lacy came info force an I August 19SS, replacing earlier statutes of z9z1, 1923, IgzG. The law provides for a regular primary schools of six years, followed by.a so-called citizen's school of two years, whose curriculum includes vocational and technical subjects. The administration of the elementary schools is vested in local school boards, subject to national supervision, Tuition is free, as are books and school supplies, one hat meal a day, medical and dental cluck.-ups. In 1959 there were 6,608 elementary schools, with zS,zlz teachers and 6zz,331 pupils. The schools receive .financial grants from the central government, which in 1957 amounted to 18,761.7 million markkaa. Postelementary students may continue their education either at secondary vocational schools (5zo in 1957, with 4,689 teachers and 45,3zz pupils) or at secondary schools (4zz, with .8,168 teachers and z61,S8z students) and subsequently at institutions of higher lcai?ning. Onc third of the schools are state owned, two thirds either by municipalities or privately. All receive grants from the central government (amounting to 5,g~8.9 mil- lion markkaa in Ig57), tuition costs are modest, and considerable scholarship aid is available. Higher education falls into three categories: (1) universities and institutions of university status; (~) people's high schools or colleges; (3) workers' academies. Entrance to the universities is through annual matriculation examinations. There were 14 universities and institutions of university rank in 1957 (includ- ing tour teachers' colleges), with a total of x,881 teachers and 1$,086 students. Among the best known are the University of Helsinki (founded 1640), with 9,877 students in 1957; the Finnish University at Turku (founded Igzz), with 1,801 stu- dents; the Institute of Technology, with z,z58 students; the Helsinki School of Economics, with I,zrz students. In addition, there are Iz training schools for primary teachers and two for kindergarten teachers. People's high schools (which numbered 83 in x957, with 3zo full-time -and part-time teachers and 6,344 students) and workers' academies (9r with 149 full-time teachers and 53,380 participants) are evidence of the widespread interest in popular or adult education. These ventures also receive state subsidies wider certain conditions. There are other educational institutions such as the Sibelius Academy and the Drama School of the National Theater. '~LiBRARIES AND MU5EUMS Finns are a book-reading people (over z,ooo titles published annually), and libraries play a significant role. In 1957 there were 553 central public libraries and 3,z7z branch and institu- tional libraries. Their total holdings reached nearly five million volumes; approximately II million books were borrowed during 1956. State subsidies cover about half of the actual operating costs of libraries, and in 1956 they amounted to 77 million markkaa. There are 17 scientific and university libraries, the most important being the Library of Parliament, the University of Helsinki Library (its Slavic division is world famed), the Library of the Finnish Litxerary Society (unriva]ed folklore collections), is~magnifi elnt)~N~fr~~%'~~~'I~'~`I~'c~$'~s~0~~~'~~'7 The museum movement has grown rapidly since the war, and there are more than 300, representing a wide range of interests. Among the better known are: the outdoor museums at Seura- saari (Helsinki) and Turku; the Mannerheim, National, and municipal museums and the Athenaeum art gallery in Helsinki; the Turku castle and cathedral; the Runeberg museum at Porvoo. 9?'ORGANIZATIONS The right to organize is guaranteed by the constitution, and organizations have come to play a central role in alI areal of Finnish life. As is well known, the cooperative movement is highly developed. In 195(1 there were approximately 5,700 local cooperative associations in diverse fields (food stores, creameries, credit societies, meat packing, egg sales, forest products, machin- ery, peat moss, sawmill, electricity, telephone, housing, bull breeding), with a combined membership of nearly two million persons and annual sales of 313 billion markkaa.- The major cooperative wholesales or central organizations in 1957 were: CENTRAL ORGANIZATION NUMBER OF SALES CAPITAL AFFILIATED (in million markkaa) COOPERATIVES SOK (wholesale) OTK (wholesale) Elankkija (wholesale agriculture) Valio (year IgSG/57} (butter exports) Tuottajain Lihakcskuskunta (meat producers) Ikarjakunta (meat producers) Muna (egg export) blctsaliitio (1956/57) (private forest owners) 370 55,47z.a 3,z5o.7 zz4 49,z7o?7 4,z72,6 563 z9,317?z 777.6 3z7 36,454.5 r,o57.5 z3 3,398.9 z37.6 z6g 5,7zo.z z53.5 zz6 gzz.z 20.4 - 4,I18.0 SIO.G Osuuskasso~en Keskus 563 zz,77a.3 (loans) z,zoo.o (a credit society) Labor (agriculture) 8g z,Gz2.o z77?z Emigheten (butter and cheese The cooperatives, found both in rural and urban areas, have developed extensive educational and informational programs; there is a lively cooperative press and many training schools. In this field of activity such organizations as the Pellervo Society for the rural cooperative movement and the KK (F:ulutusosuuskuntien Keskusliitto) play important initiating and coordinating roles. Occupational and trade associations are numerous. In agri- culture the most influential ,include the Federation of Agricultural Producers (Maataloustuottajiiin Keskusliitto}, the Federation of Small Farmers (Pienviljelijain Keskusliitto) and. the Federa- tion of Agricultural Societies (Maatalousseurojen Keskusliitto). In industry and commerce ;Ire' the Finnish Industrial- Federation (Suomen Teollisuusliitto), :Federation of I-iandicrafts and Small Industry (Kasi ja Pienteollisuus Keskusliitto), Federation of Private Enterprisers (Yksityisyrittajain Liitto), and the Finnish Foreign Trade Association (Suomen Ulkomaankaupp3liitto). There is a Helsinki chanrber of commerce and a Central Chamber .of Commerce of Finland (Suomen Keskusauppaka- marl). Most influential cultural and philanthropic organizations in- clude the Finnish Academy, the Finnish Cultural Fund (Suomen Iiulttuurirahasto), and the Wihuri Foundation, At the level of international cooperation are such organizations as the Norden societies and the League for the United Nations (Kansalaisjar- jestojen YK-liitto). :'011~~P~?P78-03061 A000100050002-5 Freedom of press is guaranteed by the constitution, and there is no peacetime censorship. In Ig57 there were z94 newspapers FApproved For ReFeese 2000/08/27 :, CIA-RDP78-03b'~1A000100050002-5 sss ' errio:~~ l47--Sol in 't~:,a?auuring 195q, 291,724 foreign passengers arrived in the country, of whom 70,16$ came by sea, 44,392 by air, and 237,264 by land. The largest numbers of tourists came from Sweden (169,678), Germany (15,530), Norway (Ig,zz7), US (9,IG5), the UK (8,IO5), USSR (7>431), and Denmark (6,189). 48FAM?US ~IId1~1$ , Great Finnish literary figures include Elias Lonnrot (ISoz-84), compiler of the national epic, the Kalevala; Johan Ludwig Runeberg (1804-77), the mast important of the Igth century Finnish-Swedish writers, known for his -Elk Hunters and Songs of Ensign Stdl; Aleksis Kiwi (1834-72), the founder of modern Finnish-language literature, author of The Seven Brothers; Juhani Aho (1361-Ig2r), master of Finnish prose; Eino Leino (iS78-Igz6), perhaps the greatest lyrical poet to write in Fin- nish; and Frans Eemil Sillanpaa (b. 1888), a Nobel prize winner (1939),. known to English-language audiences through his Meek Heritage and The Maid Silja. Popular with US fiction readers is Mika Toimi Waltari (b.Igo8). Edward Alexander Wester- marck (1862-IgS9) was a noted anthropologist. Major political figures of the Igth century were Johan Vilhelm Sncllrnan (Iu~o6-HI) and Georg Zachris Yrjo-Koskinen .(1830-Igo3). Inseparably linked with the history of independent (b.z3gg~>. A leading sculptor is t~'aino ~'l'oldemar Aaltonen (b. 1;941. Finnish music has been dominated by the name of Johan (Jean) Julius Christian Sibelius (18G5-Ig57). Three representative painters are Albert Edelfelt (1854-1905), Axel Gallen-$alicla (ISGS-1931), and Pekka Iialonen (1865-1933)? Artturi Ilmari Virtanen (b.1895) won a Nobel prize in chemistry in 194J. An outstanding athlete was Paavo Johannes Nurmi (b.1897)? 4"DEPSNDE9VCIE5 Finland has no territories or colonies. ~6BfBLIbGRAPHY Aaltoncn, Esko. Consatnter KK, Igg4. Cooperation in Finland. Helsinki: Brotherus, Karl Robert. Katsarts Sttoane~z valtiollisen jarjestys- vurodon lcistorialliseeu kekitykseen. Helsinki: Soderstrom, 2948. Cederberg, Arno Rafael. Suomcn Itusinta laistoriaa 1898-r94z. Helsinki: Soderstrom, Ig43? Fiula~zd Year Book r94q. Helsinki: Mercator, Ig47? Grano, Johannes Gabriel, and others. Suomi: A Gee:eral Hand- book on the Geography of Finla~td. Helsinki: Geographical. 'Society of Finland, z95z. (Fennia, Vol, 7z.) Halila, Aimo Oskari. Sztonzerz kansakoululaitoksen Helsinki: Soderstrom, 2949-50. 4 vols. Jackson, John Hampden. Finland. London: Allen z94o. Jutikkala, Eino Kaarlo Ilmari. Suo~~ien talonpojan I2istoria. Helsinki: Suomalaisen Kirjallisuuden Seura, 2953. Juva, Einar Wilhelm, ed. Srronzcn kausan aikakirjat. Helsinki: Otava, 193y-38. Io vols. Korhonen, Arvi, ed. Suonzen derstrom, 2949. z vols. historian kdsikirja. Helsinki: So- Laine, Yrjo Kullervo. Sstonterz poliittise~z tyoviienliikkeezz histo-; ria. Helsinki: Tammi, 1946. 3 vols. Mannerheim, Carl Gustaf Emil von. The Memoirs of Marshal Mannerheim. New York: Dutton, x954? Mead, William R. Farming i~t Finland. London, Athlone, r953? Oittinen, Reino Henrik. Tyovae~tkysymys ja tyifvderlliike Suo- mesa. Helsinki: Tammi, 2948. Onza Maa. Helsinki: Soderstrom, zz vols. (6 already published), ' 1959? Paasivirta, Juhani, ed. Suonzen poliittinen tyovaenliike, 1899- ? rggq. Helsinki: Kansanvalta, x949? Platt, Raye Roberts. Finland and ,its Geography. New York: American Geographical Society, 2955? Shearrnan, Hugo. Finland: The Adventures of a Small Power. London: Institute of World Affairs, z95o. Strode, Hudson, Finland Forever. New York: Harcourt Brace, . r95z? Suolahti, Gunnar, and others. Sztoauen kulttzrurishistoria. Jyvas- kyla: Gummerus, x933-36. 4 vols. Srto~nen tilastollinen vuosikiria. Helsinki: Central Statistical Office, new series Igo4-date. Tanner, Vaino Alfred. The Witter War. Stanford: Stanford University Press, 1957? Unitas. Helsinki: Pohjoismaiden Yhdyspankki, 2929-date. Vallinkoski, Jorma Vaino, and Henrik Schauman. Sztomen historiallinen bibliografia rq~6-rgjo. Helsinki: Finnish His- torical Society., 1955-56. 2 vols. Wuorinen, John Henry, ed. Finland and ?ll'orld War II. New York: Ronald, 1948. Finland is Marshal Carl Gustaf Emil von Mannerheim (2867- Wuorinen, John Henry. Nationalism in Modern Finland. New 1951). T~of Ainl~~an 9~ arct~ec s are w 11 nown abroad: t Eliel sa l~r ~ ~ ~r ~~~~(21~aLtc>~IA-R7~~'~i~'~~~~0~~~3f~~~-5 Approved For Release AS A LEADIlVG LIGHT 0/08/27 :CIA-RD~R`18-03061A00~0~00050002-5 STATECRAFT AiVD FOREIGN`"' FFAIRS: In HisCory Of Moscow Khr, ushchev is pictured as the man who produced the general plan far the reconstruction of Moscow, and as the man who guided and . directed the axchitects in rebuilding and modernizing the city. In the voluminous Universal His orY, published by the USSR Academy of Science, we read quotations from Khrushchev speeches which indicate his ability to prognosticate future developments of the world. In 1961 publications of the CPSU under the title International Relations And Foreign Polite Of The USSR, Khrushchev is quoted and described as the angel of peace, leader of nations, and outstanding pacifist, :.:On:the>..;.subject of Khrush~ chevs visit to the 15th session of UN we read as follows: "Despite the fact that Khrushchev's presence isi: New York coincided with the presidential campaig:c+ his presence in the USA became "the center of political life in America, relegat~:Y~.s the election campaign to the second place." (Page 5?5,) Similar quotations and expressions can be found in a special edition of 2 volumes, devoted to the Khrushchev trips to India, Burma:, Indonesia. and Afganistan, launched as party academic publications in 1961 under the title The Awakening East. AS A UNIVERSAL GENIUS- WITH UNDERSTANDING AND INITIATIVE IN CULTURE, LITERATURE, S'CICIOLOGY AND SCIENCE: In the CPSU's publication "Communist", (No, ]2 fox 195?) there was an article by Khrushchev under the title "For the Closer Union of literature and? Art WithLife of the Dilation". -This article has been reprinted and quoted in many other Soviet publications, -- in magazines, newspapers and iui separate pamphlets. Hie pronouncements on the subject became the bible and the guide for all those who tried to carry out and enforce the "party line", In the third volume of The His~or~r Of Soviet Literature (1961 publication of the USSR Academy of Science) there is a statement which says: "N. S. Khrushchev demonstrated to all of us the real meaning of and the implications of what constitutes 'the genuine and the ct~nscious creative freedom' '!, In the magazine "New World" for September 1961, in an editorial entitled "The Greatest Document of oux epoch", Khrushchev's pronouncements are identified a.s~"the guiding rule for all Soviet people in their daily life and actions". AS A FATHER OF HiS PEOPLE AND A BENEFACTOR OF HUMANITY STRIVIlVG FOR THE PEACE OF THE WORLD, In a populax book by P. Lopatin, Khrushchev is described as a man who has opened wide horizons for the family of the Soviet peoples, aid as the man who , in promoting technical accomplishments, has contributed enormously to the material as well as the spiritual-treasures of Soviet people. In Literaturnaya Gazeta of September 16, 1961, in the article under the title "Son of the People" we read: "Every word pronounced by Nikita Sergeevich is imbued with the deepest respect for the- work of those who create everything valuable on this earth. The people are reciprocating to him with their deepest love and affection. You can depend on our Nikita". And so on and so forth in same vein. Stories about the Khrushchev's fathexly benevolence to the masses are producing hundreds if not thousands ofarticles; quotations and references appear in all publications, and all official speeches refer to him or to his pronouncements- in this vein. The personality cult of Stalin i~ dead. But the personality cult of Khrushchev is second to none and all indications are that it will reach, if not surpass, that created around Stalin. The cult of personality remains, -- it is a built-in, inevitable a:nd essential part of the communist authoritarian system -- only the main character changes. (End) Approved For Release 2000/08/27? CIA-RDP78-03061A000100050002-5 20pt~/08/~_ = C~~~?~D_P30fi1A0001000500b2-5 ? The Creation of An Image Authoritarian communism. is dependent upon the existence of an idealized leader to justify its authority. If there is no uniquely endowed individual, .the Party creates one.' The -p~iblic 'image of Stalin was $he result of a well developed campaign?in which all of the cha.xactexistics of a charismaitic leader were ~ . attributed to him. That image has now been destroyed al.xriost single hancledly day the man who is replaci~ig him as the infallible, wise and good leader of the roople, All protests of the Soviets 'and their puppet leaders to the coiitrary, their explanations that "individuals represent collective leadership and the ? ssence Qf communist society" and that there is no 'cult of personality" around any communist leader, do not coincide with the facts. Sorne techni+~ues used by the corrtm.unists tc- create.a cult ,of persoi~.ality, ixi this :instance around the figure cif Nikita Khrushchev, are noted bxie#ly in'the~ pass~.ges below. ? A5 A LEADER OF THE .PARTY AND THE GOVERNMEI'JT:AND.?A .HER.C) GAF THE CIVIL WAR The Histor Uf Moscow, publication "of the USSR Academy of Science. Khrushchev is not mentioned in the first five volumes, bui: the sixth volume, omits the name of Stalin entirely while rne?ntioning Khrushchev nine times. The Histor ~C)f The C'.ivil War In The USSR, publication of CPSU, Moscov~r. The' first three-volumes, published under ? Stalin, contain only one casual mention c-f K:hrushchev. The fifth volume, published in 19'59 azzd 1964, however?, is Yieavily interspersed with quotations from Khrushchev'~~ speeches, arranged to impress the reader with .his importance as a national hero of the civil war -~ despi?~e. the well known fact that the highest position occupi~ecl by Khrushchev duxin:g this period was as a student at the Party school of the Ninth Soviet Arm.y~ This fact does not prevent the official Soviet historians from including N. S, Khrushchev i.xx the categaxy of the "party leaders,. collaborators and, disciples of V, I, Lenin who organized the victory of the Great Revolution"., (Page 314 History Of The. Communist P~ Of The USSR 1959). ~ . AS A PARTY PHILC~SC3PHER AND THEORETICIAN: Up to 1957 nothing was recorded on the subject. In 1958, however, in an article. iii the USSR A.cadeYx.y of Scienc:e's periodical ''Questcins of Philosophy" { ~ p g g? ?v ?and.A. D. Shershuxiov quote Khrushchev No. ll a es 3.5-39) `? A V. Shche to .:. ? a s though lie ? were ari outstanding the oretic fan ~ and s oc ioloj;is~. , ? . In 1959 the praise of Khrushchev as a theoretician becomes more pxonoui~cea and we read.'-~~"The principl:~ cif Marxism-Leniiisni reee;ivod thQoretical developxnerit and elaboration iri the .report by N. 5 Khrushchev to the 21st Party Coiigres3..'. The problems of the building ,~f the new stages ;in the developxnerrt of commu~isrn in USSR received creative andiimaginative treatmeiYt in the report of the N. S..Khrushchev to'the 21st Party Congress". (Histor 'C7f The Cornmuiiist Pam Uf The USSR, 1959, page ?72~,) ' Tn 1961 the stature of Khrushchev as a theoreticiar~.:and philosopher Iooms still larger and acadernicion. M. Minn in his article "Comrnunisxn and State", published in Pravda., 23 September 1961, omits any passage from Marx or Lenin while quoting Khrushchev as an authority on the subject, In tribute to Khrushchev the philosopher and thinker, his speeches are being published in millions of ` copies and, at the present time, complete works by Khrushchev are appear- ing ixi Moscow on expensive `{per and with expensive bindings. The circulation is I44,`040 sets. Besides this, the following publications are already in circulation;. Peace Without The Armaments- Peace Without .The Wars (2 volumes, Moscow 1964, 952-pages); For Peace, Disarmament And Freedom Of Now (Moscow 1964, 336 pages); The Forei n Polic Cif The USSR (2 volumes, Moscow 1961, .12.87 pages); .The C;ontxoll~ Fi~ures__Tn The Develo?~ment In The National Econ_^om~r (Moscow 195, I4~ pages, 2 million copies. (continued) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 (Cont.) ~ ~ ~ _ 4 December 1961 Approved For Release 20Q0/08/27 : C1A-RDP~78-03061A00.0~00050002-5 "Its tied up with so many they factors ~~- th.is developme of the Eastern European cauritries. Its development partly resulted from the last war, and partly conditioned by feax of future waxs. See what happened in Hungary -- terrible thing that .happened,.iri.Hungary. Arid?yet I'thixtk that probably the . ,. reason fox that was the fear that it was going to lead to a World War. Just at that tame a different invasion by the g'rench and the British was taking place... Ancl it lookeri a:Imost.as though it was going to burst into a World Wax. ;. If so, the Russians ~-'the Soviets were going to take nog chances in Hungary . ? joining the enemy. You saes. it's their instinct of self-preservation--: They bohaved in a brutal rnar 'in Hungary. STEYENSONi t1Non-alignment, Mr. Prime Minstet', ~ is -- serves a useful,puspUSe.:~in-the U~iited Nations: It ~apears negotiations between the align;d. countries. It ha,s the ef~ct of sustaining pressure tin 'them in.peaeeful directions. It serves many --;it's been a guide to public opinion around the world .-- serves very many useful purposes: But when norS.~alignrnent leans. one way or the ~ other -= one way more than the other - - it .-does have the effect of provoking extremism. And it also has the effect of encauragixsg the Soviet Union to mare extreme adventure s, and this ~ ?~ turn would lead to the Barrie in this country, and also to loss of confidence in the United Nations. "I think this problem is something that you have to deal with all the time. We have felt, with respect to grour delegation; that frequently we don't share the common views orx political issues in`the United Nations, but we do respect your non-alignment. And ~ otYier issue's,' in the field of colonialism, in the field of executive action by the United Nations; `in?the Congo, in .the Middle East, and so on that you've just mentioned, here we' find common ground, and I should like very much to take this occasion while you are here with me this- marning to ,express the gratitude of my government for the service that India has rende.xed in the effort to unify the Congo, and in many othcix cases, to ? establish a United Nations prasence, to use this instrumentality more effec- tively.t'c? preserve peace,ir~. the~tzrorld:' I think it's been a vexy useful service and I'm, very grateful to you,' ~s'i.r.'! . NEHRUs "Non-alignment is a b~xsic policy, but in its application to particular circumstances or resolutions, that is a muter of judgment. Non- alignment... the background that governs our thinking, but then (in regard ?~ to resolutions, `it's not as if because we are non-aligned we must agree or not agrea to soxxethg:`; ~;:a:that requras a?n independent judgment as to which is likely to lead (to the object we've aimed at ?), ~ We do avoid, generally speaking,i we .may not succeed always -- we try to avoid mere condemnations which often.rn.ake at ci3fficult to bring the differing gspcrups.together. "But in regard to particular things, we should expr+sss our> opinion clearly - - in regard to achieviii:g''results.: It is -not a result in our opiszion. merely to . ~ ~~ y =-11 rnay be ~neces,sa:ry sorriatime"s 'T'ha.t damn somebodx. ? S'I'EV''ETVS~N ?,"We.don''t -- you see?, we`find it d:iffcult?to~nnder?~stand how India can take`s. pcis?itioin of ixnp~.~tialaty between nuclear tests'by>the United States and th?e Soviet Union. This form of non-alignment, of trying... to find a.positiarr of non-identification between right and wrong, or good and evil, can,. I'm .sure you'll -appreciate, cause some confusion in this country.'.' NEHRU'. ? "fihere is no difficulty in choosing betweenn right and wrong;' i? the question appears rin that sense; 'It doesri't? always`appear clearly in -that way, between wii:ite s.xicl? black.' ' fibers ? are zriany sha'de~s 'of gray. Brut"aga?iu, the question,, is ;what you ~.re aiming at, I do not quite know what-you have in ;the fact that the Sotriet ?Urxion?'re e~xrneid nuclear tests `.was : a "Obviously, , vexy bad thing; bad ?fi~orn everypoint of vieui; its resrzlts~ and in its` bxeach. . of a covenant -'- voluntary?covenaxit,` no`doubt!- still`it:.ws.s bads=- ?bad'i.n.~itself -- it was a bad example if followed by others, and 3t vitiated-the ?atrnasplze.re of earning togetk~er.. All that wa.s vexy bad. (c antinued) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 4 December 1961 Approved Faelease 200x/08/27 :CIA-RDP7~!l~03061A000100050002-5 - '.,x, ! r Prime Minister Jawaharlal Nehru and Ambassador Adlai Stevenson Tallc 'on TV Excerpts from a TV exchange, recorded at the US UN Headquarters at New York on 12 November 1961 and broadcast by WABC -TV the; following day. Participants;. Adlai Stevenson and Jawaharlal Nehru of India. NEHRU: "Broadly, non-alignment- means not tying yourself up with blocs of nations - - .nations or relations - - that is, trying . to view things a s far as possible not from the military point of view, though that has to come in sometimes, and tryixxg to view matters independently, and trying to maintain friendly relations with all cowries, " . 5TEVEN5t7N: "That's one thing I haven't been. able to understand lately. Here we've seen refugees shot in cold blood under the barbed wire in Berlin, we've seen the double-dealing of the Soviet Union in respect to nuclear tesfix?g, and now the detonation of an enormous bomb with the- consequence, and many others, dire consequences for the human race, and yet I don't see that thin stirs up the kind of indignation among the non-aligned pec-ple that one would suspect, that one would anticipate." NEHRU: "You're right, Governor, to some extent. I think that you'll find almost everyone deploring this, but you're right that the degree of indignation may be lesser elsewhere than in the United States. -That depends cn how it affects them personally. Now suppose there is a nuclear test in ~3frica. The African nations would be wild. Nat that the thing is the same whether it's in Africa or Europe or somewhere else, but it's near their door they personally are affected by it, and they'll shout. "You can .only exp7.ain that by past conditioning of all these countries. At the Belgrade Conference, we had a majority o? African countries, newly independent, who ~.re .full of their awn problems, and the rest of the world doesn't seem to exist for them except vaguely as an imperialist-colonialist world, against~hich they are fighting to free themsQlves. Yau-see, on that background, -which they've grown into, they react accordingly. 4f course if you put it to them that this is very bad -- they did say so at Belgrade -- is very bad and should not:have been done and so on, but, having said, so, they reverted to their own problems." STEVENSON: "Haven't we in the United States shareid the attitude of ?aadia -- your attitude about calox~ialism and about what you mentioned was such a concern at Belgrade -- and also about self-deterr~Yination, and I believe we share your views that this should be the objective of -- for all peoples everywhere -- but we think it should. be for peoples everywhere, and not just North and South but also East and West. And that this great wave of independence that has swept the world and freed a billion people and created 42 new nations, I think, since the war, hasn't reached same of the other regions of the world -- I speak specifically of Eastern Europe, where govern- ments have been imposed on the people. by force of arms and are maintained in that manner. "Isn't it -- wouldn't it be true that if colonialism ancL non-colonialism and self-determination applies to Africa, that it should also apply to Eastern Europe, and give those people an equal opportunity for self-determination ?" NEHRU: "Yes,. that would be an ideal thing, but there is a difference in the type obviously. There is the old-style colonial type ?in Africa or Asia, and this is not that type at all. It is ;not colonialism; it is a domination of a certain group or party, aided by outside (interference ?j from another country. Now I dislike the, second thing also but it is different. It?s --,those elements that run to farm of other colonialisms do not apply here, and -- but it may be, of course, and sometimes is, that the second type is even worse-from the human point of view than the other, (continued Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 - 4 December 1,961 Approved For Ruse 2000/08/'27 :CIA=RDP78-061A000100050002-5 "There~s no question of putting it in the same category as any other ~- the U, S, government staxted its tests underground -- (WORDS UNCLEAR) -- but then the thing is about the future -- for us to say, well,.. the Russians have had a go, therefore it's only right that the Americans should have time to ga ahead doing the same thing to equalize -- that creates difficulties. "The Russians are completely wrong, no doubt, but when we think a thing is evil -- that is, nuclear tests -- we have to say at every stage T+ao more: It isn't a question of equalizing, although Russia may have possibly, i don't know, gained an advantage by some tests -- I can't / saw/. "That bec ame s a political, technical que scion, a military qua scion, call it xvhat you Like, in which we are not ixi a position to judge. But in this particular matter, obviously, it was Russia that took the steps that we consider very wrong; " STEVENS4N: "Well, I+m very glad to hear you say the other day that you were -- that you believed the solution of this matter was in the exec~.tian of a treaty p~ovidin.g for control and 'inspection of nuclear weapons, and the sooner the better, " NEHRU: "You see, the alternatives are so terrible to contemplate: The reality facing the world today, ~ thexets a nuclear war, is so {amazing ?) in its consequences that you can acarcely (write ?) it, and I'm quite aura nabcle wants it in the woxld. $ut certain basic, we 11, urges of an out-of-date men- tality govern nations, and so they take step by step until it becomes a matter of national honor not to retire, not to submit to something, and then you have wars; " O {End) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 {Cant.) 'December 1961 Approved For Releas'~2000/08/27 : CIA-RDP78-0306'00100050002-5 '' "It's tied up with so many other factors ~+~-this development of the Eastern European countries. Its development partly resulted fxom the last war, and partly conditioned by fear of future wars. See what happened in Hungary -- texrible .thing that happened in Hungary. And yet I think that probably the reason for that was the fear ths.t'i~ was going to lead to a World War. Just at that time a different invasion by the French and the British was taking place. And it looked almost as though it we.s going to burst into a World War. If so, the. Russians -- the Soviets were going to take. no chances in Hungary joining the enemy. You see, 'it's their instinct of self-preservation-~. They behaved in a brutal manner in Hungary, STEVENSON: "Non-alignment, I~Jtr. Prime Minister, is -- serves a useful puxpase ixi the United Nations. It .ape~.rs negotiations between the aligned countries. It has the effect of sustaining pressure an them in peaceful directions. It serves many -- it's been a guide to public opinion around the tivorld -- serves very many"useful purposes. But "when non-alignment Leans ~*~ way or the other -- one way : e than the other -- it does have the effect :~f provoking extremism. And~?=~~]s`o has the effect of encouraging the Soviet Union to more extreme adventure s, and. this i.;~ turn would lead to the same in this country, and also to loss of confidence in the United Nations. "I think this probleix~. is something that you have to deal with all the time. tNe have-felt, with respect to ~rour delegation, that frequently we don't share the common views an political issues in .the United Nations, but we do respect your noxi.?ali:gnment. And in other issues, in the field of colonialism,. in the field of executive action by the United.Nations, in the Congo, in the Middle East, and so on that you've just. mentioned, here we find common ground, and I should like very much to take this occasion wiaile you are here with me this morning to express the gratitude::af my government for the service that ?audio has- rendered in the effort to unifgthe Congo, and in many othtrr cases, to establish a United Nations presence, to use this instrumexrtality more effec- tively to pxe serve peace in the world. I -think it's been a very useful service and I'm-very grateful to you, sir." NEHRU: 'Non-aligrrnent is a basic policy, but isY its application to particular circumstances or resolutions, that is a m~.tter of judgment. Non- alignment.... the background that governs our thinking, but then: {in regard ?~ to resolutions, it's not as if because we are non-aligned we must agree or not agree to something. that requires an independent judgment as to which is likely to lead {to the object. we've aimed at 7), We do avoid, generally speaking, we may not.. succeed~y"s -- we try to avoid mere condemnations which often make it difficult to~.ixua?g the differing gs~oups together. -... >. "But in regard to particular things, we should express our opinion clearly in regard. to achieving results. It is not a result in our opinion merely to damn somebody. That may be necessary- sometimes --" STEVENSON: "We don't -- you see, we find it difficult to undertstand how India can take a position of impartiality between nuclear tests by the United States and the Sovi#~t Union. This form of non-alignment, of trying to find a position of non-identification between right and wrong, ar good and evil, ran, I'm sure you'll appreciate, cause some confusion iri this country." NEHRU: "There is no df~cuTty in choosing between right and wrong, if the question appears, in that sense. It doesn't always appear clearly in that way, between white and black. There are many shades of gray, But again the question is what you are aiming at. I do not quite- know what you have in mind, Governor, about nuclear tests. "Obviously, the fact that the Soviet Union resumed nuclear tests was a very bad thing, bad from every point of view, its results, and in its breach of a covenant -- voluntary covenant, no doubt -- still it was bad --bad in itself -- it was a bad example i# followed by atriera, a.nd. it vatiated the atmosphere of coming together. Ali. that was very bad. (continued) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 ? 4 December: 1961 Approved For Release 2000/08/~7 : CIA=RDP78-03061A000100050002-5 Prime Minister 3awaharlal ~te~ru and Ambassador Adla;i Stevenson Talk an TV - r.r I r r ^n rW.1.~.rilR~q~I~~R~ nom. E~ccexpts"from a TV exchange, recorded at the US UN H~eadquartexs at New Yoxk on l2 November 1;961 and broadcast by wA~C -TV' the following day. Participants: Adlai Stevenson and 3awaha"rl,al Nehru of 3:ndia. NEHRUi "$roaclly, non-alignment means. not tying yourself up with blocs of "nations '-- nations or xelations -- that "is", trying to view things as far as passible not from the military point of view;, though that- has to come in sometimes, and trying to view matters independently, `and trying to xna~intain friendly xelations with all countries." STEVENSQN: "That's one thing I Haven't.been able'to understand lately. I-iexe we've seon refugees shot. in cold blood under tl7e bax~beci wire in Berlin, we've seen the double-dealuxg of the Soviet Union in respect to nuclear test~~:~~ and now the detonation of an' enormous bomb with the consequence, and many ethers, ,dire consequences for the human race, anal yet ;[ don.'t see that thi, stirs up the kind of indignation among the xion-aligned people that one would suspect, that one would anticipate." r NEH.RU: "You'_re right, Governor, to some extent, I think that you'll find almost everyone deploring this,- but you're right th rlanned economies do not lend themselves to the type of analysis attempted zn this Survey', This second ci~nsideration also prevents the inclusion of 'Yu,goslavia. The territory covered by the present Survey thus includes the -a~ncommunist Western-oriented countries of Europe, the economies of which a.re largely responsive to the. free play of market forces rather than government fiat. 1 CE OF EUROPE This small area is thus one of the most prosperous and productive regi~aY f th 1 PYRGHT ~~~ western art of the eo ra her's Euro e p g g p p possesses an. economic az~c`. cultural importance out. of all proportion to its size. With. only 3 percent of the ~~~orld's land surface and 10 per cent of its population and no longer. possessed ..;?~ natural resources of great variety and abundance, the people, of Western .i?:urope create case to 25 percent of the world's national income, produce nearly 2~J percent of the world's food supply, 30 percent of the steel and nearly F~.s large a propt~r#ion of the coal' and account for 40 percent of the foreign trade of the world. of war-damaged plants was followed by steady e~tpan- ~ion and rriocier~nizatian ?pf ,productive facilities, which Y.~a.ye resulted in much more ~:~tensive and persistent gains..in E~uropean? productivity during the past decade +.han have been ~ac.hieved. in.; other parts cif` the -free worldl. .Ai.s ;a result, Western Europe's.more than 30U million peciple, today e:n~oy a s#andard of living far higher than ever before .and at ~:ee~st a third above tb~at of the smaller 'nu'mber who;were;~living, in-thee same'ter.ritory before 'World-War II. SOCIAL PROGRESS This remarkable productive achievement has been accompanied by social and political developments of: equally great-significance;,, Although fears of wide- spread nationalization have pro,vecl to be without fpundatian, national govern- rnents have come to accept .responsibility; far m`bre than ever before, for the ?~se of monetary and~;fiscal powers to promote full employment and economic growth and t o protect the individual against economic ,lu~;zards. Though its roots extend far into the past, the .welfare'.-state has came intc~ full flower in Western Europe only in the postwar years:.rFull er~ploytnent, higher -real wages and- such social provisions as farriily allowances and subsidized.,housing have greatly _;a~nproved the economic position. of those at the base of the ancome pyramid. ti~teeply progressive income;taxea~;~and.? sharp increases in the caste of domeartic and other personal services.have brought a~radical alteration in the living standards of those at the upper i.ncorne levels. These changes,. whichl~.ave? gone furthest in the xiorthern industrial countries and are hardly yet. substantial' it'the' poorer .countries of the soutli, are bringing profound changes ~n the .s:ocial` hierarchy and, a tranaformatian iri the character of t he market for cor~sume'r gciads in Europe. The traditional class saci.ety and the class markets organized to supply necessities to the poor and luxury goods to the rich have not yet~'disag~'eared, but na vbserwer can fail to note.the emergence of a new attitu.cle ~on tho;part c#'cansum.ers and suppliers alike. What was formerly a class society"characteirized bsr wide differences in income and manner of living has. become a i'~iuch more democratic comrriunity wit~e a.rnuch narrower range of spendable income. The trend towards income eyqu alization means that far the first time. the average family ca,ncontemplate the purchase of types. 'of goods, such as washing machine; s, ,refrigerators, television sets and automobiles, that were previously out of reach. Manufacturers are' responding to this new. mass demand by developing ~;nase..productivn of standardized articles, as their American counterparts have been d~aing since the 1920s~~: , . , Political,ly~as. ~wel1 a.s .eectxaomieally Western Eurc-.pe has emerged- stronger than before World Wa'r II.-.,The threat of eamxnunism fras~;a within-and without; which seemed'so~ menacing immediately after the war, ~~ receded promptly as a . 2 (C rrntinue d) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 . . , 4 December 1961 QQ,,,,~~, e~ Fgr.Fease 20~Q0/08/27 : CIA-RDP78- 061A000100050002-5 caY~i~t~1o o pu c and p vote enterprise proved equal tc~ the tasks of restor- ing full employment and expanding production, Government wartime controls were were soon disca.rded~; though in some, countries at the price of considerable inflation. F~,n,c~tiariizlg democratic. gover~;ment has beerirestored in most of the countries wliere''it ?was abandoned during, the interwar period or' under enemy ..... ~s~ ~_ - - - ~.. ECONOMIC INTEGRATION FQrernost...amang postwar political developments are the attempts at closer econoxxiic - sand in same.ca.se.s political -integration. Hitherto for ?ecades, and' in many cases for centuries., :the countri es'of Europe held tena- ciously to their individual separate existences, thei r separate sovereign gov- '.rntnents, their- separate defense establishments and economic policies. ?.=a.t since-the 'e`nd of World War Il,.the N1~.~':Q member nations have surrendered ..ach of t ki~;i:r military autan.amy,to en.su.re a stronger common defense. In the ":-:EC (arid its successor organization, .the OECD) the nations of Western !~ u.r~pe hz~ve movedtowards the voluntary coord~.nation of economic ?policies. 3elgiurri Lugcex?nbourg and..the 11TetherlancJ,s. established Belelux, a customs union ~;~rhich has been functioning fox.severa2.years: 'Tbe.'European Coal anc~ steel --?~rr~xnunit+cj was forrri`ed %n 1952 by the three Beaelux countries a...n.d ~Tc'rrany, ~:~ice ar;d z+_aty. The most ~mpre.ssive:step towards econor.r,ir., e.,.;-1:ISprhap.s ,rc'.a'stiial Palitlcs.l, i~rtegration came with the e~~ta.blishment izi 1' `:~;3 of t:ie .cropean E~anc~.~nic Community (ar}d 'at .the same time the I.:u.ropean ~.toxnic "' ~~ ray Cci~rim.~x?ity) by the .same six countries. ~ The' trQns~kin;~ pe:~aod, which Kill -..~.~d to elsminat~:~on of~tariffs and trade restr~ctiori s,between the a~ix rnEinber `countries and establishment df ~a common tariff an goods from the outside world, is already well .under way and. should, be virtually complete before 1970c In 1959 the Euro n F e pea r e Trade Association,- which contemplates removal ?of trade rLstrictions an i~zdu.$tr.al g~c,ds between its members -the 'U'nited Kingdom, '~~enrnark, ~?ar;vay, :Sweden, Austria, Switzerland and Portugal,- and with '~a'~.nland as a probable associate member -was established with a:view towards eventually servizag as a:means of~prornoting a wider base for'Eurapean ir9ra- :;~. an: The,:~e are ?thP first steps.. in the direction o?l "the unity of V~este:rn -.:urape; " w?xich ~::ir C~~iver Franks has described as. "the one great `creative 3~:,.ztical a.c?ea. tk:s.t.has emerged since the- Second World War. " He s.dds, "If the ~'E`; ?f'one community, one .society in Europe, is to have any validity, it must ~~xs.dually clothe .itself with economic meaning. " (Satu.rday review, January 16, ~;~s~.) These initial efforts to integrate the national economies of Western Europe c.a s beginning to give economic meaning to the idea of eventual European unity. ? 5GOPE OF-THIS VOLUME ` This then, :is the- new Europe with which this Survey is concerned, a '`"~~?oPe:~tre.ns~arrning itself: in.respect to social. structure, economic achievement ;ncl?political;;institutions. The present volume :follows in general the pattern the earlier survey of America's Neede and Resources, -but the approach has Dependent countries and a dozen ar mre ?different lan ua e A g g s. fter a brief cv?iew of the ;factors responsible for Europe's postwar recovery (in Chapter 1), ,.s Survev attemr~tc t~ ??,e~ ..,,.... __ ~ _ .._ __ __ ._ _...,,, ~,,,,, .. .+J4Vila ,,.aurvyes ~?neeas" and ''resources" in their strictly economic ~ccinnotat~,ons. Consumers' needs are c~.efined not as what.peQple ought to consume, n'terms of their physiological, rz~ental ar spiritual requirements (if rodeed these. could ever be determined), but ? t?ather as what they ch~sose to con:surne, as reflected?in actual purchases of v~.ri.ous #~inds of goods and service~s_ and spending patterns `at various income levels.. The. same approach has been ~fallowe,d in cansiclering expenditures U: gove?rnmr.nts and investment spending by individuals, governments and business enterprises. The. basic approach in measuring needs has been the gross national pro- ?c111ct; or gross national expenclitu.re, and. the components thereof (Chapter 4). This :measures, the ms.rket ~'al:ue of,, or the amount paid for, the finished goods and services: de livered annually to final users within the national economy. The needs o? consumers have always been the largest component ?f gross product and the ? 3. (Continued) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 -December 1961 Approved -For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 . major categories are considered in the present volume.(in Chapters 5 through 12}: food and drink,. housing, household operations, tra.n.sportation, education, health and racial security. The last three are to a large extent services supplied to corisum ers through government. channels .and ar,e thus paid for indirectly by consumers in the form of taxes and contxibutioris. Government operations and services are analyzed in Chapter 13 ands capital investment by government and by public and private enterprises and individuals in Chapter 14. Resources have been considered first in terms of the human resaurces - population, manpower and education (Chapters 2, 3 and 14} -and then in termr~ cif the physical or natural resources -land and agriculture, forest and ocean Resources, energy and power sources and other minerals (Chapters 15 throug;li ?)). Inasmuch as Europe is becoming increasingly dependent on overseas sources far a large proportion of its industrial raw. materials, resources are discussed in terms of foreign as well as domestic supplies. The discussion of .foreign trade (Chapter 20) is obviously also relevant: in this connection. In several of the' later chapters of the volume consideration is given ~o some of the important problex~ns and opportunities that are influencing the development of the European economies.. One of these (analyzed in. Chapter 21) ~s the persistent inflation, which has affected in varying degrees .the, countries d~f Western Europe during the postwar period, .and. foreign exchange problems x~vlated to it. These issues will become of more critical importance as trade 7:?~~rriers are removed within the European regional groupings. Other probler?~s ~~.iscussed in Chapter 2Z} arise from the disparity in economic development any '+.ving standards between the agrarian south and the more prosperous industrial Gauntries- of the center and north and the efforts to narrow this gap. Another oro?? blern, which has been receiving a great deal of attention in Europe since World W.ar II, is the' nature of European capitalism. and how i:t can be made more ec~mpetitive and effective. -This is considered in Chapter 23, while Chapter 24 discusses recent-gains in European labor productivity ~~.nd the possibilities of ~~~x.rther advances. An evaluation of present and forthcoming technological developments and their probable effects on the European economy is presented zn Chapter 25. In Chapter 2~ -the movement towards European economic integra- tion is analyzed, w~h special consideration given to the European Economic Community -anew power complex .capable of .dominating the- European heartland.- Finally, an attempt is made (in Chapters 27 and 28) to summarize :yriefly the entire volume and to present concluding observations. METHOD _ OF APPROACH It is apparent- from the foregoing that this volume involves a topical treatment of economic developments and problems and .a "European approach'u ~?~.ther than acountry-by-country analysis. Many mono?;raphs and a nurr, bar of Lxcellent economic geographies have been published which follow the latter approach in describing the economic situation of the various individual countries. In the present volume the attempt has been made to discuss the needs s.nd resources of the European. people and fhe problems facing them, first, in terms of Western Europe as a whole and then in terms ~~f the special character- .stics and divergences of particular regions and of the individual county?ies. This approach, it is believed, will be followed more anci more as European inte- gration advances, since it has the advantage of revealing the el~:ments common to the European scene, as well as the intercountry~ differences some of which may need to be resolved. The. descriptive and analytical parts. of this. Survey are focussed on measurement of past trends, especially developments s'.ince the end of World War II and in the 195~s, and interpretation of these changes in relation to the prospects of future growth of the European economy. In most countries war damage had been made good by 1950, and the ensuing decade has been one of unprecedented economic .growth. The middle year of that decade, 1955, was a fairly representative year of full employment and peacetime expansion; it was moreover the latest year for which full in~orr~at3.on;w?a,si.a,.vai,.la~~-the time work on the Survey began. For these reasons data ht~.ve been presented far that year in considerably greater detail than for other postwar years, and 1955 has thus served as a "base year" from which future projections have been made. 4 (C ont,inue d) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 _' ?' ~ ~ 4 December 1961 dpproved For R"Lslease 2000/08/27 :CIA-RDP78-03061A000100050002-5 Statistics for later years of the 1950 decade have of course been incor- porated in the text to the extent that t hey were- available at the time the manuscript was deli~?ered to the printer. Full-scale research operations began with establishment of a Geneva office in the spring of 1957 and ended with the closing of that office in September 1959. This means that the manuscript, which began going to the printer before the end of that year, included annual data for the years 1955 and 195? and in most cases also for 1958. During most of 19C~~', while the flow of manuscript and receipt and revision of galley proof was continuing, every effort was made to incorporate the latest annual statistical data then available and to take account of significant new developments in the wegion. This means that, where practicable, data for 1959 have been included, e~ut even this has not been possible in all chapters, particularly some of those prepared by contributors who were not members of the staff. In addition to describing past trends and current conditions, an impor- tant part of the task of this Survey has been to project the changes in population, 4rnployment, working hours, productivity, gross national product and its compcxc t:7~ts and the increase in the output of the requirements for essential raw ~~i~.teriala from the base year 1955 to the year 1970. This future year was selected as One sufficiently far ahead to bring significant developments into prominence yet not so fax distant as to involve too many unknowns. In attempting to forecast vhe Europe of 1970 from the Europe of 1955, it has been assumed that 1970 would. ~.,a a year of high-level activity and that the intervening period would be free xrorn war (althou.gh the cold war would continue) and from major economic depressions or periods of violent inflation. Even under these "normal" conditiont.~~ v,~e future is always surrounded with uncertainty and no "projection" can prete~~e "~o be more than a fallible human judgment ?based on the best available evidence. It is with the full understanding of this truth that projections of future develop- ments are presented in the present volume. The Europe surveyed in this volume is revealed as a region undergoing remarkable -and unexpected -renaissance. Whereas the shock of World War I ushered in two decades of economic stagnation and political defeatism, the shock of World War II became the inspiration for a resurgence of activity - political, econarnic and social - far a new leap forward such as twenty years ago few observers would have believed possible. In this dynamic situation the people of Western Europe have registered achievements but they have also ~3a.countered problems. Although they have recorded impressive economic gains, ~~~ey have perceived the possibility of setting goals more ambitious than ever 'before in their history, and to attain these will require sustained effort not mere ?;, over a decade bu.t for at least a generation. Yet no one who has watched the course of events in Europe since 1945 and. who has studied the manifold changes in the pattern of its society can doubt ~`h~.t its peoples have demonstrated a capacity to adapt themselves to the changing :~:Zd.itions of the contemporary scene, to seize the opportunities presented by modern technology and, once again, with new confidence to take their rightful ~,~lace among the leading nations of the free world. 5 (End) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 !~ 4 December 1961 Resod ~~~ '"~leas~e ?~C~O~/08/?~7 : CAA-Rg~7 -0~0~~~0~~~~~5(~Q~-~ TFi-e` on rasa o e ocia ~.s n erna Iona on rl~n n m The Congress of the Socialist International (R ome -- 2 3 -2 7 ?ctober 1961) - ~+ Condemns as an act of savage brutality the erection of the Berlin wall which has sealed off 1? million German people and deprives them not only of their own freedom but also of their contact with the free part of Germany and with the rest of the non-Communist world. This action, which violates human rights, gives expression to the expansionist poli~cia:s of the Soviet Government. ~~ The parties of the Socialist International declare their solidarity with the people of Berlin and their steadfast determination to ensure that this freedom is preserved. The division of Germany does not help the cause of ace: in fact, its continuation presents a constant source of danger in the heart of Europe. -The rights of the German people to their national unity cannot be denied -yet this cannot and must not be achieved by vtAoletie~e. ~~ To stand firm against Communist pressures and provocations is not enough. A peaceful solution must be found by negotiation. A Western diplomatic i-~itiative is required. A settlement must provide for free access to West F?erlin by land and air, guaranteed and controlled by the ~~'our Powers. The United Nations could be given responsibilities as an added guarantee of this freedom and the presence of agencies of the United Nations in Berlin might bri.z~ n.ew life and hope to the city. "A settlement requires that the facts be faced that the frontiers of Germany cannot be changed by force, and that the unity of Germany depends upon a relaxation of international tension. In the meantime, arrangements far technical cooperation between and with the administration of a divided Germany must be improved in the interests of the welfare of the people. The tension could be eased and the prospects of German unity improved by an agreement ~n controlled disarmament in Central Europe, including the prohibition of nuclear weapons under conditions which will not modify the military balance. "The Socialist International reaffirms its firm belief in the inalienable right of every people to self-determination. It urges the powers responsible for the solution of the German problem, and all who are deeply concerned with it, Lo recognize as a basis of their practical policy this principle which is recog- nized in the Charter of the United Nations. The human rights which have +-p~.en violated in Berlin can be reaffirmed, ana the tensions in Europe relaxed and the danger of war removed only if the dignity and freedom of man are recognize=1 as a basic law of international policy. " Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 " 1+ Decembex 1961 Approved For Rt~ase 2000/08/27 :CIA-RDP78-0~61A000100050002-5 CPYRG The conflict of HUM~.NISMS (6 )~ The st'~ niggle for happiness. By Adam Schaff Przeglad Kulturalny NoT, October 19, 1961 CPYRGHT Vexbatim What is happinessg~ s is a pro em w point of view of the individual concerned, but it is very difficult to analyze it when one passes to the field of inter-subjective. communication and general philosophical reflection. This is also a problem on which, to write from the scientific point of view, it is not-only difficult but also dangerous. This problem, .which is eery.interesting because of its' central, character fob man, can easily lead a scientist astray due to a,ts amb3.guity and complexity. This is precisely why. the definition.of the point from which we intend to begin the analysis, and of the aspect which we shall be .most concerned. with, in this analysis, 3.s particularly important. One af. the.p.assible divisions of the points of view on the problem of happiness is the following; the positive approach, i.e. the. definition of the components of the subjective state of a happy individual, or the definition of t~,~e subjective state of p?ssession is identified with happiness.' and the ne~;;ative appraa,ch, i.e. the consideration of the factors which disturb the peppiness at the individual, and of the .methods of overcoming them. -These are interca'snected approaches,-but still very different., For to analyze the necessary conditions of .a phenomenon is one thing, and to analyse its sufficient conditions is another .thing. The removal of obstacles which make impossible far. an individual.to.reach the state of happiness is a necessary condition, but it is insufficient for the individual. to be really happy. For this depends on a number of other conditions connected-with the individuality . of the given .person; with this physical and psychological state, with histor y and. social conditions, etc,. Far. the state of happiness is connected with the given individual living in given conditions. This is why that. which constitutes the basis and cause of happiness of one person can be a source of just the opposite state. for another person.. $ow far, will this.be true when we take into consideration the time factor and the .changeability of human requirements and attitudes accompanyin~;.the changes in.social conditions? T When approaching tYie problem from its positive aspect, as an attempt at enumerating the factors which ensure a.man concrete happiness, we are asking a question to which there is no .answer... For whether we .speak about the state of a happy individual, i.e. about his or hex feelings ,.,ar whether we give a pseudo- abjective farm to this question and ..speak about the goods whose possession means happiness - we are dealing with afield which is so much saturated with t'rae subjective, element that any.atteinpt at obtaining a generally valid answer is bound to fail.. 'For it is not a.paraaox that certain people must be unhappy to feel happy: The roads of individual psychology are to.o complicated to be contained in a formula or a scheme, That is precisely why the consideration of the problem. of the conditions which are necessary for a human individual to be happy does not exhaust the problem, and daes.not provide.an answer either to ~"lze question: "what is happiness?" or to its transposition "when is a man happy,?". Nevertheless, an analysis of the necessary conditions of human happiness is, in my opinion, more interesting and more productive (particularly ryn the-aspect of social activity), than the_ apparently wider problem of sufficient conditions. I do not want to-say by this that the problem is not worth considering. If we are clearly aware of the amount. of subjectivism. in this problem, and thus avoid mystification resulting frotri badly constructed questions, an analysis of the problem of the necessary conditions for happiness might contribute to the knowledge of human personality and of the futility of the quest for "perfect happiness" for everyone. A negative answer is nevertheless an answer and the xevelatian of the futility of the quest is the result of research. Whexeas this broader cancept.of happiness~mostly.giveS negative results, the narrower one from the point of view of the necessary conditions mostly gives positive results. Primarily in the realm of human activities, in the realm of struggle for the happiness of people. It is for this reason that I consider this, sphere of investigation to be more interesting and fruitful. This sphere. is one of investigation. into social conditions for human happiness.. Social in the two-fold sense of the word; first in the sense that happiness should not be considered in its aspect concerning a, given individual, but ~,n that concerning th.e .m~-asses of people; and second, in respect to the possibility :of and necessity for social work aimed at assuring the chance, if not the certainty, of a happy life to the masses. CPYRGHT Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 . ..~ ,,~ Approved For Release 2000/08/27 :CIA-RDP78-03061A0~0100050002-v , We shall now concentrate upon the problems of social conditions for human happiness. For the reason i.e. that - although theoretical - it is not abstract and reaches deeply into the. practice of social life, into the sphere of action. The problem of happiness is exactly a typical problem, where the cool reserve of a theoretician is out of place and an. attitude of active engagement should, be taken. This is prompted by the character and the_impartance of the problem in 1 if e . Reflections upon conditions for,samething usually begin with a definition of this something.. Otherwise there is the danger of eom~~lications and mis- understandings emerging from the multitude of meanings of the terms used. This ~~lsa concerns such a diversity. of meaning as that implied by the idea of ''happinc.~~ s'et, I propose to sin against the prevailing custom for the following reasons:. 1. This would inevitably lead us into a maze of complicated enquiries into the variety of meanings of the term: 2. our investigation would necessarily take on the character .of historical research because of the. dependence of the t~efinition upon an accepted point of view. This is:nat my intention in this context, and is not the objective of our research. Thus we must renounce it (a definition), the more so since the current intuitive sense of the word "_~~.~ppiness" in one of its meanings or .any text-book definition which speaks in one way or another about "happiness"being a state of intensive satisfaction *,~ith something, will meet our requirements. While taking into account the ..~ntrovers al character of every word- here, and of all the possible additions ~~o them {this corresponds closely to the. statements formu:Lated at the beginning of our study, that everyone knows. when he is happy although it is very hard to se,;~7 what this means), we may safely embark upon .investigating the social conditions for hurrian happiness and the activities connected with it, even r^].yirlg upon such general and vague intuitive feeling as that inherent in the w~~rd "happiness". Everybody,.is happy ox unhappy.in his awn way. And yet despite subjec- tivism in the feeling of happiness and. unhappiness, d~espit;e .the variety of individual human pastures, there is here too something in corrunan with all people. For nobody is happy when he is deprived of something which; he desires strongly in some walk of life, There are things which all people covet in common and which. play .an important role to all. .Being deprived of them makes every normal individual (except pathological cases) unhappy, This sphere of negative denominations unites in the problem of happiness the views and feelings of all the people, a fact which does not belie the individual and subjective character c:~f this problem. Tn this way we .get hold of something stable and concrete in this nebulous affair, something which, thanks to its universal character, is more 1:1wb1e to evaluations and can mare easily beams the subject of the conscious e~.c~rivity of the people. And on this the significance and the importance of this sphere mainly rests. A man suffering hunger. and misery a man who can not satisfy his material needs on a minimal level set by the historic stage of development of the given ~~:~mmunity, is not, and can not be han - ~ py .Thera is a fascinating Chinese fairy - t.?:,,1e about the crapc~ror who- was looking for the shirt of the happy man, and ~Ti7~n finally he had found it, it appeared that he did not even have a shirt. This ~~'able, although fascinating, is in its direct sense profoundly false and was c-.~mposed by people who have a shirt on their backs for the consolation of those ?~~:ro are deprived of one. Hunger and misery certainly do oat make one happy. On the contrary,-being the cause of the profound and real unhappiness they drive people to revolt and struggle. This is a struggle far the-right to happiness, _i or the removal of all obstacles an the road leading to happiness, even though the liquidation of hunger and misery itself does not of itself make people happy. Hun er and misery are not tYze only sociai.3,y widespread cause of the un- harr~inpss a~' pea le. There is still lack of freedom, national oppression economic ex loitation racial o ression and all other instances" of inequality in social relations. Tn all these and other similar instances the point is to deprive the p~:ople of some objects ar relations-desirable by them. And although deprivation .~f freedom: or of social equality is something- different to the deprivation of the .,raterial goods necessary for living; nevertheless-man feels this lack no less sharply and painfully. The struggle for the right of freed am is just as strong ~n incentive for rebellion as hunger and misery. This is also a struggle for the ?ight to personal happiness, for here the indispensable condition of this state ~f the individual is involved, the.conditian which actually does not suffice to .rake the individual happy, but. whose absence suffices to make him unhappy. Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 Approved For RLase 2000%08/7.: CIA-RDP78-0~61A000100050002-5 It is clear that the absence of other objects ar relations too, may bring about a situation in which the individual feels unhappy. Unrequited love, for example, unsatisfied thirst for fame, for respect, etc. These phenomena are so Gammon that we may .treat them as a social phenomenon. There is however a definite difference between the phenomena of tl~e first and second category. The difference is that in the first category obstacles to individual happiness are imposed by the existing sacial relations, whereas in, the second category the obstacles are -the ?outebme of the psychalagica,l pr~oper.ties Qf the' 3.ndividual in question, or the intimate relations with another rind iv idu~,l (lave for example). ' Hence in the first category social interf.erence,.is,possible;,'sinee the change in the erroneous sacial relationship ~ and it may b~ changed by social ~~.rganised people -eliminates the source of suffering of they individual, while in the events of .the second categGry_societ.y:is unable., to interfere. At any rate it cannot interfere..directly (indirect interference is.pbssible through the ^~~..teration in the::soc.ial rel,atir~ns;.moulding; the mentality- of tYie individual, but ~~~.~is ihterference 'is :usually unintentional. and sporitaneouS) .` From the point of view of-'the' conscious and collective: act~nn of. people the first category is r~~~~rticularly ~,nteresting. And it s.ths,whch., under the various definitions ^.nd titl.es~., in various shspes and formulations, has constituted for centuries 4w!e~ component part of progressive social movements, of which the quintessense is the struggle for.` the establishment.. of the .best. possible conditions `f?r people's hcppiness. ' It ma,y also be; put differently:. the. struggle far the establishment of the conditions which.cantribute most to the development:. of .human mentality. Tn this very sense,- those .:who- see. the. ~.im of thier sacialactivity in forging cut the conditions ct'f individual happiness, are .humanists in the best meaning of the word.. We:aquire.in this way an additional critera.an far assessing the value of social movements and their programmes, the. assessment of. the various- f~~rms of humanism: ~ , *~ . _ All social movements speak about human happiness and include the struggle for it in :their .pro~;ramrnes . .How -cou];d it be otherwise? How could, they count on support from any. quarter unless they did.? It is alao~necessary to bear in mind that even typical anti-humanism, typical .ideologies of genocide and hatred, like Hitler ism and.all variations of c,olQnialism and racial~.sm, operate with cliches of the struggle for man's happiness. .The $itlerite "Ubermensch" and every racialist struggle for somebody's interests and some-body's right to happine:ss,too,:obviously, but the difference is. whether everybody is considered to be human ar not. Far the sake of justice it should be added that modern anti- humanists have predecessors of long standing, from certain humanists of ancient times, who considered slaves as talking tools. This constitutes an element of the thesis about the historic, and in this sense, xelative character of the assessment of the various fortr~ of humanism. This problem is all the more important.and.deserves all the more attention because the real moral conflict occurs in case of a clash of different concepts of hun~nism and the incidental concepts of an individual's happiness with the methods of struggle far winning them. In this field the main conflict of the contemporary era is connected with the clash of socialist humanism with the competitive varieties of humanism, which Pram the point of their phil~sophieal context can be called idealistic and fram:the point of their .social bearers - baur~;eois . Tt is a well known fact that ~ at least two factors distinguidl socialist humanism from the remaining varieties of_humanism - which still e~cist or ,.already belong to history. as In the first place its concept of the individual, ~ product of society and established social relations, above all class relations. As distinct from the trends, in which.. the pattern of an individual;is either :the free will or the heterogenaus will of a higher being in the: relations towards the eargmunity, social re~.atians created by man:,. which at the .time create a mp~n in the sense of a social unit, are the pattern of socialist humanism. In this field, the latter. represents the main contxadictic~n between m~.teriali5m and idealism. Again the starting point of any kind ~of humanism, as well as any further considerations of hums,n affairs, depends.on the p}~ilosophic.character of ,the, concept of a unit. The latter. includes also the consideration of an,individual's happiness largely because.hurnanism is as much a theory of the human individual as well a.s the theory of his happiness. Both the manner of unrlers.tanding this happiness and the manner of its realization ar.e accordingly closely connected with the method of understanding a human individual.. Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 -~ ~ t im artant I~4-c~~@~'f~cie~a~~s2b'~ l~~ecu`~~'a~~'~~~~~,1 ~9ee~5 ~ n . p socialis human~.~m w c militant humanism which sexes its task and goal above all in the struggle for ideal and their realization. The latter.alsa fully applies to the p~ablem of an individual's happiness. Humanism is the essence of scientific socialism, while the essence of this humanism is its concept of an individual's happiness..- In Marxism everything is subprdinated W p}xilc'>spphy, political economy, .the sc;cial and political concept . After all, these are .theoretical inwtruments which sexve one practical purpose: the struggle for a better and happier life of the people. -Such was the under- standing of young Marx who argued that revolutionary philosophy represents an idealcagical weapon of the proletariat. Such also is the sense of the Marxist thesis on the tics of theory with practice. For this reason the theory of happiness appears in Marxism in a particular form: not as `an abstract reflection of the concept of happiness or its components, but as a revolutionary idea of sue}1 a transformation of social relations which will make possible the c~^eation of the best conditions for a happy life, and which will remove obstacle? l:t:in~dering the est~+.blishrnent of. such a life -for the people . Marxist socialism presents the prablem~of an individual's happiness-from the negative side, which :im;~lies that itsinvestigates the obstacles standing in the path of a happier life for the people, as well as the means to remove these obstacles. It is precis%1y this kind of concept which yields tYie mast positive and real results: Tn many countries of the world people starve and live in misery. As is known, two thirds of mankind suffer hunger permanently. Marxist socialism shr?ws a concrete path of sacirzl changes irhich may remove this state of affairs -end create conditions for a better life of men. There is na preaching or insipid moralising of satiated persons. The hungry and the miserable hear in these words an announcement of happiness and sense fully the profound humanism of the idea so beautifully expressed by Marx's friend, Heinrich Heine, in his Winter Tale: But a new song, a more worthy .song, I promise to sing, brothers. We want to create a paradise on Earth, The lane] of milk and honey. We want to live happily on the Earth, Ancl not to rot in perpetual misery. May not the lazy stoms.ch waste What diligent hands have created. Here bread grows copiously, There will be enough f'or everyone, Enough of laughter, and beauty, myrtle and roses, And na less sweat--peas. Let the pods crack and there will be plenty Of peas far those who like it. And the heaven we will leave to - Angels and sparrows. Marxist socialism approaches similarly the problem of national suppression, religious persecution, racial persecution, discrimination against women, economic exploitation etc. Tt shows to people the path of liberation from a situation which weighu heavily on them and makes them unhappy in one way or the other. Marxism neat only states that it is passible to live a different, better and happier life, but also teaches haw this should be done, mobilises and organises ;ceople for the struggle against that which obstructs their happiness. It does.. n;:~t offer illusions of another world, consolations with cheap moralising, but tells them to struggle and gives them the certainty of victory in this struggle. It is a political theory in which a theory of morality, humanism and happiness is also contained. Is there therefore any wonder that it appeals to those who suffer and long for a better, happier life? No wander that everywhere in the warlc9,thasc to wham the words of the International: "Condemned peoples of the Earth. rise, rise those whc suffer hunger ..." are addressecl, respond to them? This is a specific. theory of happiness. It is in feet a theory of social ~anditions far individual happiness starting-from the preraise that no one may guarantee full happiness far an individual, because this also depends on the ;.ndividual himself, but that it is possible and necessary to create conditions for the happiness of all. 4n these canc7itians, the social conditions of happiness, Marxist socialism concentrates. The.' active character of humanism contained in it, its attractiveness t:~ those who suffer and dream r.,f personal happiness, are connected with it. Its successes in the conflict between the various forms of humanism, characteristic of our era, are also connected with it. Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 ' sTl4'~v F~~~sef ,~,~00/O~v2 A~~C I,A~~2~[~~78-O~f 61 AO~b(~fAO~'~ There are authors with famous names who consider that the end of the age. of ideology has come now: It is difficult to argue with them since in view of the enormous ambiguousness of the. woad "ideology", no one knows very well what they are really talking about. .There are over twenty. different, someti s very remote, meanings of "ideology". Thus, does this sense mean what Destutt de Tracy meant who onto introduced it together with the name itself, ar the meaning pejoratively used by ,Napoleon,. or that which Marx and Engels used and after .them only with certain modifications Lenin and Stalin,. or MannheimTs sense of-the word.} "ideology" referring to Mexxism; and perhaps some differen sense, one of; many now circulating? This ambiguousness has played a trick on . ii~.any a man. And if the abave_mentioned authors understand ,the word "ideology' as it is used in the phrases."feudal ideology", "bourgeois ideology" or ''~aroletarian ideology" thus they understand the word "ideology" a's a' system o ~d.eas and views of the social life peculiar fox a: given social class in given historical,conditions, their diagnosis is certainly erroneous. The end of th af;e of ideology {in the, most popular sense of the word used) not only has not dome but on'the contrary - we are on1.y entering-the period of its true flower ng. .Simply. because ideology will gradually become an ever more powerful and ef- zective weapon in the struggle of'~the two main competing political-social systems which most generally may be called capitalism and socialism. The peaceful co-existence of these two social-political systems is~ a rea situation which need not. be invented, From the moment of the formation of th first socialist States alongside the capitalist States, from the moment of th abandonment of war as means of the settlement- of conflicts and differences of views between them - peaceful co-existence has become a fact though some peop do not like this word even today. The atmosphere of co-existence changes, depending upon the situation, but as long as star does not break out - co- existence is a fact. It does not follow, of course, that conflicts and divergencies of intexes between the system of capitalist states and the system of socialist states are disappearing, that the competition between these systems and the peculiar struggle are, vanishing. They cannot vanish so long as these states maintain their differences in systems, for should these differences vanish it would entail the collapse of~one of the two opposed systems in the present world. Precisely on this account the claims of certain western politiciens, against b~,ekgraund, are based either on verbal misunderstanding or an utopian inclina- tions, very detrimental to political life. CPYR HT Ideological differences are differences of outlooks an, the ideals of social 13.fe,,an its proper structure and mechanism. Let us, leave aside the question of .the genesis of these differences and of their social background, which would necessarily bring a Marxist to loggerheads with a Thomist, an existentialist or a follower of another, non-Marxist philosophy. Both the Thamist, the existentialist, the Marxist, and ethers have nevertheless to agree, if in the vapors of their philosophizing they do net forsake common sense, that the partisans of the private ownership of the means of praduction (with all the consequences resulting from it for-the organization of social life), and .the partisans of the social ownership of the means of praduction, accept different systems. of values and hence different models of procedure. These are precisely the ideological differences in the specific meaning of the word. `In'' inter'~ir~.t.3.ana.1: rela~iai~ ~t~od'a'3- the question is not. that the principle of coexistence should be transformed into a utopian. program for removing ide- alogiealr:differences which cannot be removed, but on the elimination of the danger of the extermination of the population in .the event of an armed conflict. The ideological differences will have to remain, and on them the main attention will. be focused: in step with the removal of the danger of an armed conflict, it is precisely in the sphere of ideology that a competitive struggle between bath systems will develop more and mare. This is not only unavoidable, but also correct. Far it should be admitted that the two competing camps, or in any case the parties and the: groups guiding their life, are convinced about the superiority of the system of values and of the models of procedure represented by them. If it wi11 not be possible to compel people by force to accept one of them, and this probably is the most advantageous situation for mankind, it will became necessary to convince them of the superiority of this or that system. For peaceful coexistence does net foresee the stability of the world nor a division into spheres of influences in accordance with traditional diplomacy. Should Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 Approved For 14~lease 2000/08/27 :CIA-RDP78-~061A000100050002-5 the "high negotiating aides" even desire this (in which em se they would act unreasonably), life would delete these erroneous calculations.. If armed force does not intervene, people will wish to choose a way of life which .in their understanding is the best and will do this regardless of anybody's desixes. Thus peaceful coexistence does not guarantee the status quo, the stability of the established social order, In admitting ideological differences., it also foresees a growing competitive struggle for the minds and hearts of the people to whom both systems will appeal. By what means? By means of facts, which on the basis of the principle "verbs docent exempla txahunt", are the strongest weapon in this peaceful competitive struggle of different systems and by means ni',the ideology connected with these facts. Thus we are returning in a natural Tay to our main problem - to the social ~ cc~ndtions of the happiness of the individual. In the last instance, the ideological differences which were previously xeferred to, the differences of views and attitudes of people toward, the ~~rablems of social life, can be boiled down to differences of views on social ~anditions for the happiness of the individual and on the methods of producing. c:.. ~:ch conditions . This is the essence of the controversy among people concerning the principle of private ar social ownership of the means of production,~of a ~xational or international attitude in relations between nations and states etc. etc. Regardless of formulas and arguments, the final question is how a better life is to be lived, and what conditions axe necessary to give people the best chance of a happy life. The theory of happiness once again descends from the heights of abstxactian to the hard ground of social life. The competitive struggle. under conditions cif peaceful coexistence will therefore proceed mostly in the ream of ideology, appealing to the convictions and views of people on the matter of .happiness in life, or, at least, an con- ditions favouring such a life, Thus, this struggle is bound to acquire the character of a collision of various kinds of humanism with increasing intensity, It has alxeady been said that even barbaric anti-humanism, tries to speak to people in our-era in the language_of the theory of happiness. This is un- daubtedly a sign of the times ("Signum temporis"). However, the collision of various kinds of authentic humanism is really an interesting phenomenon.. As is known, contemporary humanistic tendencies have a different origin and different character in respect to their substance and social background. Apart from the general watchword of a full flowering of human personality, which is common to all vaxieties~of humanism, the differences here are enormous. Let us only compare the materialistic and activist attitude of socialism humanism, with the creational and contemplative humanism of Christianity, or with the subjective and at the same time activist humanism of the existentialists. A different starting point, socially and philosophically, of particular con- cepts of humanism plays a decisive rate in the manner of salving the problem of conditions for human happiness, in their attitude of optimism or pessimisttt (as in the case of social~.st and existentialist humanism respectively), in the struggling or contemplative-preaching attitude (as in the case of socialist and Christian humanism}. Since, however, in our era, as stated previously, these problems descend from the clouds of philosophical abstractionism to the hard ground of social life and social struggle of men, the practical concept (of happiness) from the point of view of the requirements and choices of people who desire a better, happier life, and are ready to struggle for it, is more important than the study of philosophical reasons and differences in world-outlook of particular kinds of humanism, and .of their concepts of personal happiness. The philosophical reasons and subtle considerations in the controversies over the autonomy of individual character, or social conditions on which it depends, are of no, or hardly any, importance, to these people. From this point. of view two problems are of paramount importance.: 1) does theory ~arovide a realistic proposal for tk~e libexation from social evil, and 2) are there given practical examples of the realization of such proposals which can convince interested people. In the. case of socialist humanism, both realistic theoretical proposals, as well as .practical proofs, exist, and this is the basis of its power, the secret of-its success. People who do not under- stand and prefer to enjoy the climate of "wishful thinking" and dopy reality, will certainly be surprised with its actual development and will lose in the competitive struggle. 2 Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 Approved Forll~lease 2000/0$/27 : CAA-RDP78~3061A000100050002-5 Of course, an overall criticism of socialism can be cultivated, and its humanism can be obstinately denied, but soanex or later the hungry and extorted (~SIt will come to the conclusion that hunger in a wand of plenty will be wiped out only when the system of extortion is abolished. No hope of a reward in the other world, or the solace of absolute morality, will be able to stand up to the simple fact that social life, can be so arranged that people will not be obliged to go hunga",y while working for others. In this field socialist humanism has important assets on record which guarantee its superiority over its competitoxs. A similar situation obtains in nationals racial etc. oppression. Phis, which inspires people fighting against slavery and for a better life, is again the real prospect of freedom and its attractive examples. To the Asian and African people, and also increasingly to the people of Latin America, the Soviet Union or People`s China will be the hexo and example, and certainly not Portugal, Belgium ar any other great Western power which cultivate some form of colonialism ar patronizes it. Words will not suffice when practice and facts are involved. socialist humanism also en,~oys in this field a tremendous superiority ovex its competitors. Finally, the problem of peace represents a key point in the "plebiscite" on the different concepts of humanism. Amore important problem to people Fighting far their personal happiness does not exist today. Also in this case not the wards, but above all the deeds, are involved. For or against universal ~~is~;rmarnent - is the only reasonable prospect for the solution of a difficult situation into which mankind has stumbled today. There is no doubt that both deeds and decision taken in this matter will exert their influence on the choice between attitudes, as well as between the different varieties of humanism. We live in a beautiful epoch in which the problem of an individual's happiness, the problem of its realization, has emerged from the sphere of words and philosophical deliberations into the sphere of a practical struggle and practical realization. It is a fact which brings boy to a real humanist and a real warrior for the happiness of all mankind, It is increasingly difficult to ~,~lay a wolf' in sheep's clothing. It is increasingly difficult to act as a platonic adherent and to avoid engagement in the struggle for or against. Life calls far a definite choice and decision. Hence it is necessary to decide Tl~,is will also leave its mark on the struggle of different concepts of humanism, an the chances fox a victory of their appeal to the masses. Independent of ~L-heir awareness under the spontaneous pressure of the needs of life and the craving for happiness, they repeat after the poet in different languages and ways: "We want to live happy on earth, and not decay in perpetual misery ..." Trzis is precisely what humanism teaches them. On it xests above all its i'orce and historic importance. Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 4 December 19b1 ~A~pr~ved F~r Fe~sg 20/08/27 :CIA-RDP78- 061A000100050002-5 O ut o e ther a.de of t eir auths; Sober Estimates of Soviet Economic Prowess On 11 C)ctober 1961, one of the Soviet delegates at the UN's Second Committee (Lavrichenko) stated (following the line of his Forty Chief): "Mr. President, in the current development of world economy there appear quite definitely two trends, to lines of development. While the economy of world capitalism is developing at a slow rate, is experienc- ing crises and shocks, the economy of the world socialist system is characterized by rapid and stable rates of growth, by overall continuous rise in the economy of all socialist countries.. , .If the socialist countries' share ~n world industrial output? was about 1~3 in 1958, in 1960 it rose to 3b%, with the USSR accounting for nearly 20 percent....Already in the current decade (1961-1970) the Sa~riet Union, wh~.le creating the material and technical basis of commurisrn, will surpass in per capita production the United States. " With this claim that t he USSR was responsible for nearly 20% of word industrial output it cid not seem exhorbitant that, when assessmErlts for UN contributions vaere being considered, the Soviet Union's share should be 14. 97%. but in the UN r'ifth Committee, another Soviet delegate (Roshchin) protested ',:hat this was too high, and. expounded why the Soviet Union should not have to ~~e.ke such a large contribution. According to the UN record, Roshchin stated in substance: "One of the main factors cited in the Committee's _~. e. on Contri'oci- tions7 of reference was the temporary dislocation of national economies arising out of the Second World War. In that connection, the Committee had merely repeated what it had said in its previous reports, namely, teat the consequences of war dislocations were largely refiected in the ne,tiona~. income figures and therefore the countries concerned were receiving appropriate consideration for war damage under the existing system of ai:owances. It had thus failed to recognize the cont;.nuing ir:~porta:-ice of that factor for many countries and, in particailar, for the Soviet t,rion whose economy had been dislocated by the war. In the Soviet U~iion, the war had destroyed over 7 m:iltion buildings, leaving 25 rrili.icn people homeless. Industry, transport and agricuitL;rc had suffered tremendous damage. Damage to personal property of Soviet cit:itiens was e;;timated at b79, 000 million roubles in terms of p~?e-war St~.~te prYces. The material and human devastation caused by the war were still felt at the present time: there was still a housing shortage anti tha last census had shown that there were 20 million more women than men in the Soviet Union, Those data illustrated the importance of the factor which the Committee underestimated. "' A, third Soviet delegate, Chernyashev, thought that the Soviet contribution should 'be 1~, 5%, and that the U. S, contribution should rise from 32, 02% to 38.5%. Tf the figures proposed by Chernyashev were taken as a measure of relative r,4tional income, then Soviet national income would be 37. 7% of U. S, income. I~oshchin's ratio is actually a pretty fair one, about 3% low. An authoritative Western estimate is 41%. With such a ratio, it seems improbable that Soviet production, especially per capita, will surpass the U, S. by 1970. Actually, supposing continued development on both sides according to existing patterns, Soviet industrial production should be about b0% of that of the U. S. in 1970. Per capita industrial production would be somewhat less, as would overall national production. Soviet bloc industrial production in 1970 will probably be about 53% of NATO production; if other countries such as Japan and India were added to NATO figures, the Soviet bloc's proportion would be still lower. (It might be added that Chernyashev was only speaking of the "regular" UN budget, which does not include such UN activities as operations in the Near East and the Congo, UNICEF, and for the Palestine ~e?ugees, to ail of which the Soviet Union contributes little ar nothing. Taking into account these activities, Soviet con- tributions in 1960 amount to 7. 5% of U. S. contributions. (End) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 Approved For I~lea~~~ 0~0/b08,~2~heC~~g,~~~A3061A000100050002-5 The Creation of An Image Authoritarian communism is dependent upon the existence of an idealized leader to justify its authority... If there is no uniquely endowed ixvdi+vidual,-the Party creates ane. The public image of Stalin was the result of a well developed campaign ixi which all of the cha.xactexistic s of a charismatic leader were attributed to hixn. .That image has now been destroyed almost single handedly by the man who is replacing him as the infallible, wise and good leader of the people. Ail protests of the Soviets and their puppet leaders tc~ the contrary, their explanations that ".individuals represent collective leadership and the e~senee of communist e~ociety" and that there is no "cult of personality" around any communist leader, do not coincide with the facts. Some techniques used ~:~v the communists to create. a cult of personality, in this instance around the " a:igure of Nikita Khrushchev, are noted briefly in the passages below. AS A LEAI?ER OF THE PARTY AND. THE GOVERNMENT AND A HERO OF THE CIVIL WAR The Histor Of Moscow, publication of the USSR Academy of Science. Khrushchev is not mentioned isY the first five volumes, but the sixth volume omits the name of Stalin entirely while mentioning Khrushchev nine times. The Histor Of The Civil. War,In The USSR, publication of CPSU, Moscow. The first three volumes,. published under ~ Stalin, contain only one casual mention of Khrushchev. The fifth volume, published) in 1959 and 1960, howeve?? is heavily .interspersed with quotations from, I~hrushchev's speeches, arranged ' to impress the reader with his.unportance as a national. hero of the civil war - ~.espite the well known fact that. the highest position occupied by Khrushchev during this period was as a student at the Party school. of the. Ninth Soviet Arxray~ This fact does not prevent. the official Soviet historians from including N, S, Khrushchev ixi the category of the "party leaders, collaborators and disciples of V, I, Lenin who organized the victory of the Great Revolution". (Page 314 - Histor Of The Communist Party Of The U55R 1959). AS A FARTY PHILOSOPHER AND THEORETICIAN: Up to 1957 nothing was recorded on the subject. In 1958, however, in an article in the USSR Academy of Science's periodical "Questions of Philosophy" (No. 11, pages 35-39) A. V. Shcheglov and A. D. Shershunov quote Khrushchev as though he were an outstanding theoretician and sociologist. In 1959 the praise of Khrushchev as a theoretician becomes more pronoux~c.ec' and we read -- "The principles of Ma.rxisrn-Leninism received theoretical development and elaboration in the report by N. S, Khrushchev to the 21st Party Congress, .. The p roblerns of the building of the new stages in the development of communism in USSR received creative and imaginative treatment in the report of the N, 5. Khrushchev to the 21st Party Congress". {Histor Of The Communist p-a,rtY Of The USSR, 1959, page 724,} In 1961 the stature of Khrushchev as a theoretician and philosopher looms still ]:anger and academician M. Mi~tin ixi his article "Communism and State", published in Pravda, 23 September x.961, omits any passage from Marx or Lenin while quoting Khrushchev as an authority on the subject. In tribute to KhrushchEv the philosopher and thinker, his speeches are being published in millions of copies and, at the present time, complete works by Khrushchev are appear- ing in Moscow on expensive ~aa.pex and with expensive bindings. 'The circulation i,s 100, 000 sets. Seaides this, the following publications are already in circulation: .Peace Without The Armaments- Peace Without The Wars (2 volumes, Moscow 1960, 952-pages); For Peace, Disarmament And Fr edom C7f Nation (Moscow 1960, 336 pages); The Forei n Polio Of The USSR (2 volumes, Moscow 1961, 1287 pages); The Controlli~ F~res_In,T~he. Develo~mexrt In T_he National Economy (I+/lc~scvw 195, 14~ pa'ges, 2 million cnpaes, } __ ~.___ __~._ . (continued) Approved For Release 2000/08/27 :CIA-RDP78-03061A000100050002-5 Approved For Release 2,000108/27?: CIA-RDP78-03061A0'+0~0100050Q02=5` A$ A I-BEADING LIGHT I1V STATECRAFT ANI7 FQREIGN AFFAIRS: ^ Tan: His~Y Of Mo~..,s. C?w IKhrushchev' is pictured~as the `man who produced the general plan for the reconstruction of Ntrascaw,?'a,nd a's the man who guided-and directed the architects ~ri rebuilding .and modernizing the city, ' 'Iri the `volufrii.naus Universal. `Hiss, published by -the ~ USSR Academy of Science, we-read qu?tations frtirri Khrushchev speeches which indicate his ability toyprogriosfiicate_ future developments of`the world.' ' In 1961 publications, of fibs CPSU fitxider'tlie title. International Relations And .,, ~ _~ Foreign F'o~ !C~f The USSR, Khrushchev is quoted and `described as the angel of peace, leader c-f natioxis., and autstariding pacifist. On the subject of Khrush~? chey;s visit to the; 15th session of UN we read as follows: "Despite the fact that Khru~hcliev's presence in ItiTew~Yoxlc~ coincided, with the presidential campaz~:~: leis presence in the USA became the center of political life in America, rele~at:~::~ the election campaign to the second place. " (Page 575. } Similar quotations' and expressions can b'e~found in a special edifiion of ~ volumes, devoted to the' Khrushchev trzps try India, Burrna~, ~Irsclonesia and ~'~fganistan, launched as party academic publications in 19b1 under the title 'l"he Awakenin ~ - ~ .: Ea g st. AS A~ UNIVERSAL GENIUS` Vl1'ITH i?TVDERSTANDING A1VD INITLA'TIVE IlV C'JLTUR ~ ,E LITER~,TURE., SOCIOLOGY' AND SCIENCE: ~ ~ Inthe CPSU's pubiication'~rCornrrtia.nist",` (No. ]2 for 195?} there was an article by K.lirushcliev: under the title''FFor the Closer Uhan Qf I.atexature and Art WithLife of tPie'~3at9.on,"; ~ This- arfi'icle has' been reprinted and quoted in many other Soviet pub~lications,~ --'in rna;gazines, newspapers and i,n separate pamphlets; ` His pronouncements on the subjeot became the bible and' the guide -for all those who tried to carry aut and enfore~-.tlie '!party line". In the. third volume of The History Of Soviet Literature (1961 publication of the USSR Acad'er,;ay of Science} there. itaterrie~nt t~rhiclY says: ''N, S, Khrushchev demonstrated to all of us the real meaning of and the ixnplics.tians of what constitutes 'the genuine and the' conscious c?reafiive fre+edomi ~",' Iri the rin:agazine "New World" ":~r September 1961, in an ed~.tQria.l'entitled''The Greatest Docurrient of our' Epoch", Khrushchev's pron.ouncemerrts are identified as "the 'guiding rule for all Soviet people in their daily Iife and actions". ' AS E1 7~'A TIER OF`' HIS ` PE OP.~E AN D A BENE F~,C T OR OF HUM.ANI'TY STR IViNCr F'OR 'THE PEACE OlE' THE WOR IJD In a popularbook by P. Lopatin, Khrushchev is described a.s.a~xnan who has opened wide horizons for-the family of the Soviet' peoples, and as the'man who. , in promoting technical accomplishments, has contributed enormously: to the material as we].1 as the spiritual~treasures.of~Soviet'people. In Lxteraturna~ra. Gazeta of September I6, 1961, in the article under -the title "Son of the People" we read: 'iEvery word pronounced bSr `Niicita Sergeevich is' imbued with the deepest respect fcir the work of those who create everything valuable' on this earth. The people are reciprocating to him'witli their deepest love and affection; You can depend'on our Nikita~'. And so on and so forth in same vein. Stories-about the Khrushchev's fatherly benevolence to the masses are producing hundreds if not tliousa:nds of articles; quotations and references appear in all publications, and all official speeches refer to him or to his pronouncements in this vein,... The personality cult. of Stalin is dead.. But the .personality .cult `of Khrushchev is second to none and all ira.dicatians are that it will reach, if not surpass, that created around Stalin. The cult of personality remains, -- it is a built-in, inevitable a.nd essential part of the communist authoritarian system -- only the main character changes. (End} Approved For Release 2000/08/27: CIA-RDP78-03061A000100050002-5