CURRENT INTELLIGENCE WEEKLY

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CIA-RDP79-00927A000400170001-1
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RIPPUB
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S
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20
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December 15, 2016
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May 18, 2004
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1
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Publication Date: 
February 4, 1955
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REPORT
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DE MALd Fer'Release 2004/06/24: CIA-RDP79-009!2 A000400170001-1 COPY NO. 1 `+ OCI NO.1052/55 4 February 1955 INTELLIGENCE WEEKLY iii CURRENT CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE CONFIDENTIAL i3CC I DOCUMENTNQ. 25X1 NO CHANGE IN CtASS_ n "-~ cLASS. CHANGED TO: State Dept. review completed 1 iVEXT REVIEW DATE: M H ' Approved For Releas2404/06/24: CIA-RDP 40017010 REVIEWER. 25X1 Approved Fc .Release 2004/06/24: CIA-RDP79-0092 000400170001-1 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly has been prepared prima- rily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the im- mediate appraisal of the Office of Current Intelligence. Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 OIL, Approved For lease 2t if i Mt00927AO 0400170001-1 4 February 1955 This publication ceases in its present form with this issue. Beginning next week it will be incorporated in a new weekly publication: The Current Intelligence Weekly Summary. 25X1 HUNTINGTON D. SHELDON Assistant Director, Current Intelligence Approved For Release 200 / lqq 00927A000400170001-1 - NF1D'Et4T1 i Approved Foelease20 4/0 -RDP79-00927A ..00400170001-1 SUMMARY OF CONTENTS THE SOVIET WORLD . . . . . . . . . . . . . . . . ... Page 4 Communist strategy on Formosa issue--inflationary pressures in Eastern Europe. INDIA SEEKING TO EXPAND ITS INFLUENCE IN SOUTHEAST ASIA . . . . . . . . . . . . Page 6 India, since the Geneva conference in July 1954, appears to have become increasingly concerned over the spread of Communism in Southeast Asia and as a result is attempting to increase its own influence in the area. Indian advances will appeal in varying degrees to the Southeast Asian government, but Peiping is unlikely to acquiesce in the development of a strong Indian sphere of influence around China's southern periphery. THE CURRENT BRITISH ATTITUDE ON MIDDLE EAST DEFENSE . Page 8 Britain apparently still considers Egypt the key to the defense of the Middle East, and remains con- vinced there can be no effective area defense arrange- ment without direct Western participation. PAKISTAN'S LEADERS FACE DIFFICULTIES IN ACHIEVING POLITICAL STABILITY . . . . . . . . . . . . . . . . . Page 10 Efforts by Governor General Ghulam Mohammad and his small ruling group to establish a constitutional framework for government in Pakistan are likely--as in the past--to be interrupted by irresponsible action on the part of dissident politicians. The oligarchy's immediate reaction may be to cease serious efforts to restore constitutional government. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 2 CONFIDENTIAL Approved For Release 2004 . A-RDP79-00927A000400170001-1 Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 we SECRET THE ECONOMIC SITUATION IN TURKEY . . . . . . . . . Page 13 Turkey's financial situation, both foreign and domestic, has steadily deteriorated during recent months despite good prospects for long-range economic development. The Menderes government appears deter- mined to continue an ambitious program of military and economic development regardless of inflation and heavy foreign indebtedness. THE FATE OF STALIN'S LAST HIGH COMMAND . . . . . . . Page 16 The fact that at least half the members of Stalin's 1952 presidium have lost their position on the presidium and are no longer a part of the central administration in Moscow is a reflection of an im- portant disavowal of the Stalinist heritage and of considerable political turbulence during the past two years. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 3 SECRET Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 Approved Fd*Release 2004/pfRt-RDP79-0092f.YCU00400170001-1 THE SOVIET CWORLD While Peiping stepped up the pressure on the offshore islands last week, Moscow sought to maintain maneuverability. Through diplomatic channels Moscow moved to obtain UN consid- eration of Peiping's main charge--American aggression against China--while together with Peiping it opposed limiting dis- cussion to the offshore islands. Both governments hinted that Peiping would eventually attend Security Council discussions. They may consider that by airing Peiping's charges against the United States in the UN they can gauge the degree to which the United States and particularly its major allies are prepared to compromise. Ambassador Bohlen believes that the Soviet Union, in its activities at the UN,, may be trying to provide face-saving cover for Chinese Communist attendance without retracting the position that the Formosa question is an internal affair. It may also hope to provide the Chinese Communists with an inter- national forum and move them one step closer to UN membership. Behind the present Communist strategy may well lie some difference of interest between the USSR and its ally on this issue. Peiping's desire to seize Formosa has probably brought it to actions that conflict with Moscow's desire to reduce international tension while strengthening the bloc for long- term competition with the West. Moscow has consistently left the Sino-Soviet alliance unmentioned in relation to Formosa. The major Sino-Soviet communique of 11 October 1954 enunci- ating agreement on various areas of Sino-Soviet relations con- tained no Soviet commitment on Formosa but merely the usual denunciation of American aggression. Khrushchev, speaking in Peiping at that time, carefully avoided anything resembling a commitment of support for China's aim of liberating Formosa, promising only the support of the Soviet "people," not the government. Since then Moscow has given no evidence of a change in its position on Formosa. Whether or not the Chinese Communist offshore islands campaign was more the result of Peiping's impetuosity than a joint strategy, the importance of the Sino-Soviet alliance to both powers probably now has resulted in a co-ordinated strategy to gain maximum advantage by a combination of diplomatic and military action. The USSR'can be expected to deter Communist China from action involving a substantial risk of general or major war in the Far East. Peiping, it seems, will pursue a 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 4 Approved For Release 2004/0?I c' 4TRDP79-00927A000400170001-1 Approved Foi elease 2004/0 S6/ C, RDP79-00927'00400170001-1 relatively cautious military policy for the time being--one designed to avoid involvement with American forces--regardless of its attitude toward UN action on a cease-fire. In Eastern Europe; the general failure of the Satellite economies to meet production targets for consumers' goods since the inauguration of the new course has resulted in increased inflationary pressure. Although consumers' goods have become available in greater quantities during the past 18 months, wage increases, price reductions, and lower taxes have caused a disproportionately rapid advance in purchasing power. Rumors of an impending currency reform have been noted in varying intensity in Poland, Rumania, Hungary and East Germany. Only in East Germany, however, do they appear plausible and even there the regime will have to move cautiously in order to avoid a crushing blow to worker and peasant morale, In Poland, a recent statement by the first secretary of the United Workers' Party, Boleslaw Bierut, before the third plenum of the party's central committee on 25 January reveals that during 1955 Poland will continue to implement its new course policies and de-emphasize the rapid development of heavy industry. Hungary, on the other hand, while continuing the new course, plans a significant increase in the rate of industrial growth for this year. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 5 Approved For Release 2004/0~/24C- kTRDP79-00927A000400170001-1 Approved Fo'elease 20041 Elf -RDP79-0092?4000400170001-1 , RN INDIA SEEKING TO EXPAND ITS INFLUENCE IN SOUTHEAST ASIA India, since the Geneva conference in July 1954, appears to have become increasingly concerned over the spread of Commu- nism in Southeast Asia and as a result is attempting to increase its own influence in the area. Indian advances will appeal in varying degrees to the Southeast Asian governments, but Peiping is not likely to acquiesce in the development of a strong Indian sphere of influence around China's southern periphery. India, which has long tended to assume that Southeast Asia lies within its orbit, had its complacency shaken by the Commu- nist gains at Geneva, Prime Minister Nehru warned Ho Chi Minh last October that the Communists would "run into trouble" if they sought to extend their holdings beyond Vietnam. Nehru's attitude further hardened following his visit to Communist China, during which he was apparently impressed by Chinese unity and strength. An additional factor may have been British influence. London, while encouraging Nehru's ambitions in Southeast Asia, has long sought to induce him to take a more realistic view of Peiping. Apparently believing that South Vietnam will eventually fall under Chinese domination, New Delhi has reaffirmed the position that Cambodia and Laos are within its sphere of influence by recognizing Cambodia on 13 December and by posting a consul general to Vientiane in Laos on 8 January. Meanwhile, Indian members of the International Control Commission in both Laos and Cambodia have injected themselves into local politics. In Laos, where the cease-fire agreement calls for a political settlement between the royal government and the Communist-controlled Pathet Lao, the Indians have sought to "bring the two sides together." They are convinced that the Pathet Lao are not really Communists but good nation- alists who can be weaned from the Viet Minh. In Cambodia there has been Indian support for Son Ngoc Thanh, a former dissident leader, in his effort to make a political comeback at the expense of the king. India may see the Afro-Asian conference as an opportunity to promote its leadership among Southeast Asian countries. The American embassy in New Delhi believes that Nehru can be counted on to combat any Chinese Communist effort to dominate the conference, and that he might take the initiative himself. He may press for wide acceptance of the so-called five principles 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 6 Approved For Release 200 6TZ4ECIA-RDP79-00927A000400170001-1 Approved For Reese 2004/06/ C* P79-00927A1J 400170001-1 of coexistence in the hope that by further committing Peiping to the principle of nonaggression, a powerful moral force will develop which the Chinese will find difficult to ignore. Responsiveness to Indian leadership varies. Burma and Indonesia are the most favorably inclined. The Cambodian king occasionally displays neutralist tendencies, and the Laotian premier holds views similar to._those of the Indian truce offi- cials regarding the Pathet Lao. Both countries, however, as well as South Vietnam, have increasingly turned toward the United States. Thailand, Malaya and the Philippines are the least susceptible to Indian blandishments, although there are elements in each which favor Indian views. In its effort to cultivate New Delhi, Peiping has been tolerant of India's ambitions since India has not attempted to include military commitments in its program. China's policy is probably only a temporary expedient, however.. Chou En-lai has often indicated that the Communists aim to win control of all Vietnam, to neutralize Laos and Cambodia and to frustrate any Western-supported Southeast Asian alliance. The Viet Minh, in violation of the Geneva agreement, is continuing to improve its military capabilities with Chinese assistance, is aiding the Pathet Lao to consolidate its control of northern Laos, and is maintaining an active underground in South Vietnam, Laos, and Cambodia. There are, moreover, numerous indications that Peiping. is attempting to expand its influence elsewhere in Southeast Asia, both by diplomacy and subversion, and it may eventually come into conflict with Indian efforts. Page 7 SECRET Approved For Release 2004/06/24: CI R P79-00927A000400170001-1 Approved For.,please 2004/06/24-k ;RDP79-00927 00400170001-1 SEC THE CURRENT BRITISH ATTITUDE ON MIDDLE EAST DEFENSE Britain apparently still considers Egypt the key to the defense of the Middle East, and remains convinced there can be no effective area defense arrangement without direct Western participation. Although London has welcomed the re- cently announced plans of Turkey and Iraq to conclude a pact, it does not expect this agreement to contribute much toward regional defense and is now attempting to prevent any adverse Egyptian action. The British believe the participation of Egypt in any Middle East defense system is essential, partly because of its location and manpower, but especially because of the Suez base with its workshops and storage depots. Under the Suez agreement concluded with Egypt last summer, Britain retains for seven years the right to reoccupy the base in the event of an external attack on Turkey or any signatory of the Arab League Collective Security Pact. Having achieved this right after three years of difficult negotiations, Britain does not want to jeopardize it by alienating Egypt. British officials' assessment of the requirements for a regional defense agreement has made them unenthusiastic toward the "northern tier" approach, the first step in which was the Turkish-Pakistani pact concluded in April 1954. Lon- don believes that no organization for this area can be ef- fective without direct Western participation. Foreign Secre- tary Eden has stated, however, that he is equally anxious to encourage "indigenous initiative" in developing regional de- fense. Consequently, Iraqi premier Nuri Said's proposal last fall for a modification of the Arab League Collective Security Pact aroused considerable Foreign Office interest because it contemplated the eventual adherence of Britain and the United States. Britain's existing treaties with Iraq and Jordan also influence its attitude toward a regional defense arrangement. Of particular concern is the treaty with Iraq, which expires in 1957. Britain recognizes that the present treaty cannot simply be renewed, but is anxious to retain the use of the Shaiba and Habbaniya air bases. London had hoped that its minimum requirements in Iraq could be ensured through a multi- lateral regional agreement. It now appears that bilateral 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 8 Approved For Release 2004/06/2 t[A`RDP79-00927A000400170001-1 Approved ForRElease 2004/0!Y?CR? RDP79-00927A D0400170001-1 discussions will be necessary, since Nuri Said has promised the Iraqi parliament he will submit his proposals for re- vision to it by March. Revision has apparently not been discussed in detail, but Britain has already informed Nuri that his suggestion of an arrangement similar to the Suez agreement is unsatisfactory, partly because of Iraq's proxim- ity to the Soviet border. The Anglo-Jordan treaty does not expire until 1968, but sentiment is developing in Jordan favoring revision. There has been increasing criticism of the prime minister for not having secured modification of the treaty during his talks in London last December. Shortly after Iraq and Turkey announced their agreement on 13 January to conclude a treaty, Foreign Secretary Eden informed the premiers of the two countries that Britain was "most encouraged" by this development. Actually, however, London expects little from the proposed pact because of the lack of roads between the countries, Turkey's NATO commit- ments and the deficiencies of the Iraqi army. Eden has men- tioned to Nuri Said the need for a prompt follow-up to the communique announcing the intended agreement and has inquired about Iraq's plans for consulting with the United States and Britain, Meanwhile Britain has been attempting to dissuade Egypt from any action adverse to the proposed treaty. Stressing the need for serious thought about Middle East defense, the British ambassador in Cairo has expressed Britain's hope that Egypt will press for an early adjournment of the current meet- ing of Arab prime ministers until more information on the pact is available. Acting on the instructions from London, he has pointed out that Britain realizes there can be no real Middle East defense without Egypt, and that Eden looks forward to discussing defense questions during his mid-February visit to Cairo. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 9 SECRET Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 Approved For&elease 2004/0612A.RGl4 RDP79-00927? 00400170001-1 PAKISTAN'S LEADERS FACE DIFFICULTIES IN ACHIEVING POLITICAL STABILITY Efforts by Governor General Ghulam Mohammad and his small ruling group to establish a constitutional framework for gov- ernment in ''akistan are likely--as in the past--to be inter- rupted by irresponsible action on the part of dissident poli- ticians. The oligarchy may react by ceasing serious efforts to restore constitutional government; The governor general's first effort to improve Pakistan's government structure took place in April 1953, when factional- ism within the dominant Moslem League party had led to politi- cal disorganization and religious rioting in West Pakistan. At that time, Ghulam Mohammad used his essentially viceregal powers to dismiss Prime Minister Nazimuddin and to replace him with the present prime minister, Mohammad Ali. The governor general was supported by Finance Minister Chaudhuri Mohammad All, Defense Secretary Iskander Mirza and General Ayub, commander in chief of the army, all of whom hau been seriously concerned over the political and economic deterioration and over the Moslem League's failure to provide the leadership expected of it since 1947, when Pakistan became independent. The governor general and his immediate entourage hoped to remain in the background and to use the prime minister to re- store the Moslem League to political leadership. The political bankruptcy of the league continued, however, and its disastrous defeat in the East Pakistani provincial elections of March 1954 led to its virtual demise. The subsequent revolt of dissident Moslem League leaders at the time of the "constitutional coup" on 21 September final- ly convinced the governor general of the uselessness of trying to work through the league. This group took open control of the government, Mirza and General Ayub accepting cabinet posi- tions, and maintained only a veneer of constitutionality by keeping Prime Minister Mohammad Ali. Despite this second disappointment, the group's strong British civil service tradition and its lack of dictatorial aspirations have led it to undertake still another attempt to establish a more or less democratic government. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 10 Approved For Release 2004/b6T2c:I -RDP79-00927A000400170001-1 Approved For Ruse 2004/06/SE(13P79-00927AOQf400170001-1 This time the oligarchy is making no use of the Constit- ue.nt Assembly dismissed last October. It is writing a new national constitution. It is revising the provincial struc- ture of West Pakistan, uniting four provinces into one, pre- sumably to eliminate opportunities for potential dissidents to establish themselves in local centers of power. The governor general's group has also formed a "nonparty" cabinet, including opposition leaders H. S. Suhrawardy o.i the Awami League and A. H. Sarkar of the Krishak Sramik party. Both of these organizations belonged to the United Front which won the elections in East Pakistan in 1954. The ruling group is faced with a major difficulty, however, in finding reliable individuals to help rebuild the structure of representative government. Since it has apparently abandoned the national Moslem League organization as such, it can count in West Pakistan only on more or less loyal individual league leaders who took no part in the September "coup," Having no support from the Moslem League leaders in East Pakistan, most of whom participated in the September revolt, the ruling group seems to be trying to utilize the opposition United Front or- ganization as the means through which representative govern- ment can be restored there. Ghulam Mohammad presumably hoped by appointing two of its leaders to the cabinet to gain United Front support for his program. The unscrupulous nature and personal ambitions of many of the individuals with whom the oligarchy is forced to deal in both East and West Pakistan are likely to create diffi- culties, however. Suhrawardy, the most unstable element in the present government, is already denouncing the policies of the government. He may be seeking to build up enough support to force the governor general to buy him off by making him prime minister. It seems almost certain that because of increasing res- tiveness on the part of Suhrawardy and men of his ilk) the ruling group will sooner or later be faced with the problem of disciplining dissident members of the government. Ghulam Mohammad might again try to counter dissidence with political maneuvers, but it seems more likely that his fund of good will would be exhausted. Mirza, who would succeed the gov- ernor general as leader of the ruling group if Ghulam Moham- mad's precarious health should fail, *is a career civil ser- vant and has little patience with politicians. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 11 SECRET Approved For Release 2004/06/24: CI DP79-00927A000400170001-1 Approved For F1ase 2004/06/~kDP79-00927AQa?400170001-1 With the concurrence also of Defense Minister Ayub and senior military and civil service officials, therefore, either Ghulapi Mohammad or Mirza would probably adopt blunter tactics than heretofore to keep Pakistan politically and economically alive. This presumably would entail abandonment of present constitutional plans in favor of more frankly authoritarian government, indefinite postponement of the restoration of. popular government, and more open reliance on the army as the ultimate political arbiter if necessary. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 12 Approved For Release 2004/0Wl'2c ATRDP79-00927A000400170001-1 Approved For Re1'se 2004/06/25 H P79-00927A0QQ,400170001-1 THE ECONOMIC SITUATION IN TURKEY Turkey's financial situation, both foreign and domestic, has steadily deteriorated during recent months despite good prospects for long-range economic development. The Menderes government appears determined to continue an ambitious pro- gram of military and economic development regardless of infla- tion and heavy foreign indebtedness. Despite growing industrialization, an extensive public works program, and increases in agricultural production, the purchasing power generated by the government's investment and defense programs has outrun the supply of consumers' goods, causing price rises and continuing inflationary pressure (see chart A, p.15). Some factories have been forced to close down because of exhausted inventories and others are operating at 25 percent of capacity. Mounting foreign trade deficits and a critical shortage of foreign exchange also are seriously injuring Turkey's abil- ity to purchase from abroad essential-industrial equipment, raw materials and consumers' goods (see charts B, D, and E, p. 15). The economic stabilization program which was announced last May failed primarily because the government followed an inflationary policy. The value of the Turkish pound has fallen sharply in the free market.(see chart C, p.15), In spite of these trends, the budget the Menderes govern- ment has submitted to the Grand National Assembly for the fis- cal year beginning in March 1955 provides for a 30-percent in- crease in over-all expenditures and:a 44-percent increase in government investment. Much of this. increase will have been absorbed by the rise in prices. The apparent determination to accelerate the pace of eco- nomic development is in contradiction to Ankara's assertion that investments would be studiously limited in view of con- tinuing domestic inflationary pressures and the critical for- eigb payments position. It is significant that 30 percent of the investment expenditures would depend on foreign exchange despite the critical shortage. Foreign commercial debts are estimated to total approxi- mately $150,000,000. West European countries have concluded bilateral trade and credit arrangements with Turkey in an at- tempt to assure the eventual payment of these debts. Medium- term credit estimated to total over $300,000,000 has been 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 13 SECRET Approved For Release 2004/06/24: C -RDP79-00927A000400170001-1 Approved For Re1sefse 2004/06/2?. p.P79-00927A0eG400170001-1 ECR promised to Turkey if the commercial debt problem can be solved. Ankara's ability to pay off these debts, and at the same time purchase additional essential imports, is doubtful, however. Menderes unsuccessfully sought a half-billion-dollar loan from the United States government during his visit to Washington last summer and is again making approaches for a substantial American loan. In the effort to overcome difficulties in obtaining large foreign credits, Ankara is turning to barter agreements with the countries of the Soviet bloc. Exports to the Orbit during the the first nine months of 1954 were 62 percent greater than Turkey's total exports to the Orbit in 1953, and they repre- sent 20.5-percent of its total export trade. By mid-December Turkey had accumulated a $2,500,000 credit balance in trade with the USSR and favorable balances ranging from $a1},O00,000 to $3,000,000 with Hungary, Poland, and Rumania. There are also indications of increased trade with Bulgaria and East Germany. Rumors persist that the USSR has offered credits or loans to Ankara. Despite this commercial trend, however, the political orientation of Turkey toward the West will almost certainly not be affected. A recent survey of the Turkish financial situation by American officials concluded that a 44-percent devaluation would "assist the government in restoring stability at home and solvency abroad." Menderes apparently regards such a measure as politically unwise; he reasserted in December be- fore a committee of the Grand National Assembly that devalu- ation "would never be possible." The continuing belief, how- ever, that the currency will eventually be devalued is an-im- portant factor in the black market and has become a matter of increasing concern to the Turkish business community. American officials, mindful of Turkey's strategic loca- tion, defense contribution, and the importance of its contin- ued leadership in the Middle East, believe that Turkey's eco- nomic problems can and must be coped with. As the government's investment program pays off gradually in terms of finished goods, inflationary pressure,!shouid be relieved and some meas- ure of economic stability restored. While acknowledging the inherent dangers and probable ultimate expense for the United States, these officials tend to regard the long-term prospects of'the Turkish economy with restrained optimism. 4;Feb 55 CURRENT INTELLIGENCE WEEKLY Page 14 Approved For Release 2004/06/2" Cc' RDP79-00927A000400170001-1 Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 ECONOMIC SITUATION IN TURKEY PRICE INDEX 1950 = 100 I I RETAIL L J 1953 ~ 1! /,//! 11 A S 0 N D J F W A M 1954 MONTHLY AVERAGE FOREIGN TRADE (Value in Millions o U. S. Dollars) r DEFICIT POSITION OF TURKEY WITHIN EUROPEAN PAYMENTS UNION (CUMULATIVE) (in millions of U. S. Dollars*) *EPU Units expressed in terms of U.S. Dollar H ~i i 111 ff IC IAL RAik 360 O r 1553 A S O N D IF F M A M J J A S J F M A M J J A S O N D J F M A M J J A S 1353 1954 4,1 I ' ww. l~~= +,~~pnnR~~~~ccnnccp~~~ `l tk!'4^Ei IMPORT / y I~ I RTT I - -- - ~ 0 1946 47 48 49 50 51 52 53 54 0 TOTAL TURKI E FOREIGN TRADE January - September $3$40W,000 PIESE NT RI ACK a eix i EX CHAN GE R ATE J A N U A R Y ? : ft t T DEFICIT $107,000,000 DEFICIT $140,000,000 Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 Approved For lease 2004/QyM -RDP79-0092700400170001-1 , THE FATE OF STALIN'S LAST HIGH COMMAND At least half of the 25 full members and 11 candidate members of the party presidium created by Stalin to replace the politburo at the time of the 19th Party'Congress have lost their `position'.oii the . presidium and. are no. longer a part of.the central administration in Moscow (see chart, p.20). Those who did not die of natural causes were purged, demoted, or trans- ferred to full-time jobs in the provinces. This pattern rep- resents an. important disavowal of the Stalinist heritage and reflects the political turbulence of the past two years. It may also indicate that what was once widely interpreted as a Malenkov clique within this group has been dispersed in def- erence to collective leadership. Three from the original list--J,V, Stalin, A.Y. Vyshinsky and M.F. Shkiryatov--apparently died from natural causes. Three others have been purged or probably purged: L.P. Beria? V.M. Andrianov, who was mysteriously removed as first secre- tary of the Leningrad Oblast Party Committee in November 1953; and the prominent theoretician D.I. Chesnokov, who has not been identified in a position since early 1953. Two other members have taken significant demotions., S.D. Ignatiev, onetime minister of the MGB and'member of the central committee secretariat, is apparently still so closely associated with the ill-fated doctors' plot as to necessitate his remaining, at least temporarily, in the prov- inces He is currently the first secretary of the Bashkir party committee. L.G. Melnikov, who also appears to have suffered in the Beria affair, was removed as party boss of the Ukraine in June 1953, and at the same time probably lost his membership on the presidium. He is now ambassador to Rumania. Still others may have been demoted. D.S. Korotchenko has moved from the top government post in the Ukraine to the largely ceremonial position of chairman of the Ukrainian Supreme Soviet presidium. V.V. Kuznetsov, formerly chairman of the all-Union Central Council of Trade Unions, now is a dep- uty minister of foreign affairs. Five men brought into the presidium as members or candidates in 1952 and added to the central committee secretariat have been removed from both the presidium and secretariat and sent away from Moscow to less desirable jobs, 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 16 SECRET Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 Approved For Relftse 2004/06/2,5E`CIRP79-00927AOQQ400170001-1 A special case is that of P.K. Ponomarenko. He has given up his post on the'secretariat and been sent to work away from the capital, but his retention as a candidate member of the presidium and party chief of Kazakhstan suggests that his de- motion, if any, has been slight. The list ends with a group of three--those removed from the party presidium, but kept in their old job or transferred to a position considered equivalent to that which they held .before October 1952. They are O.V. Kuusinen, chairman of the presidium of the Karelo-Finnish Supreme Soviet; N.S. Patolichev, first secretary of the Belorussian Communist Party; and P.F. Yudin, a party functionary with considerable foreign affairs experience, now serving as Soviet ambassador to China. Only Deputy Premiers Kosygin, Malyshev and Tevosyan, Party Secretary Suslov, Finance Minister Zverev and Foreign Trade. Minister Kabanov were able to retain important positions in Moscow after being removed from the presidium following Stalin's death. Presidium candidate member Shvernik, formerly a full member, also seems not to have suffered, his present job paralleling his place on the old politburo. The remaining nine members of Stalin's presidium are full members of the present body. All but two of these were mem- bers of the politburo. The two new men, M.Z. Saburov and M.G. Pervukhin, are in the select category of having been promoted despite the drastic concentration of power following Stalin's death. The only other original presidium member to be promoted after leaving the presidium is A.M. Puzanov, who is now chairman of the RSFSR Council of Ministers. If, indeed, a Malenkov clique once existed among some of the younger members of the 1952 presidium, it has probably now been so dispersed as to have lost most of its effective- ness. Alleged cronies of Malenkov--Andrianov, Ignatiev, and Ponomarenko--are a case in point. Thus-developments since Stalin's death would suggest that either the clique was never an important force, or that it was an element in Malenkov's strength which he no longer needs or has been deprived of. 4 Feb 55 CURRENT INTELLIGENCE WEEKLY Page 17 Approved For Release 2004/06/2f:~I~A-RDP79-00927A000400170001-1 Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1 TEE FATE OF THE 1952 PARTY PRESIDIUM ROVED FROM RETAINED AT ONI"ER CENTRAL ADMIN- ISTRATION J,z V. Stalin L. P. Beria S. D. Ignatiev A. Y. Vyshinsky V. N. Andriancv L. G. Neluikov N. F. Shk.ryatcv D. I. Ghesnokov D. S. Korotchenkc V. V. Kuznetsov A. B. Aristov L. I. Brezhnev N. G. Ignatov N. A. khailov N. M. Pegov P. K. Ponomarenko* N. A. Bulganin* C. V. Kuusinen L. M. Kaganovich* N. S. Pat~lichev N. S. Khrushchev* P. F. Ywd-in G. M. Malenkov* A. I. Nikoyam* V. M. +o1otov* N. G. Pervukhin* N. Z. Saburov* K. E. Voreshilov* N. N. Shvernik* A. N. Kosygin V. A. Nalyshev I, F. Tevosyan N. A. Suslov L. G. Zverev I. G. Kabanov A. N. Puzanov * Me,uber of present presidium Approved For Release 2004/06/24: CIA-RDP79-00927A000400170001-1