CURRENT INTELLIGENCE WEEKLY SUMMARY

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A000700110001-4
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
42
Document Creation Date: 
December 16, 2016
Document Release Date: 
January 19, 2005
Sequence Number: 
1
Case Number: 
Publication Date: 
January 26, 1956
Content Type: 
SUMMARY
File: 
AttachmentSize
PDF icon CIA-RDP79-00927A000700110001-4.pdf3.53 MB
Body: 
Approved,F r lease 2005/02/10: CIA-RDP79-0092007.-4 CURRENT INTELLIGENCE WEEKLY SUMMARY II CONFIpENT AUT CLASS. CHANGED TO: TS NEXT REVIEW DATE: NO CHANGE IN CLAS ,' DECLASSIFIED COPY NO. .9 OCI NO. 0055/56 26 January 1956 DOCUMENT N0. CENTRAL INTELLIGENCE AGENCY III OFFICE OF CURRENT INTELLIGENCE SEC DIA and DOS review(s) completed. Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 25X1 Approved ForR lease 2005/02/10: CIA-RDP79-00927000700110001-4 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 T H E W E E K I N B R I E F OF IMMEDIATE INTEREST USSR APPLIES NEW PRESSURE TO NORTHERN, TIER STATES . . . . . . . . . . . . . . 6 , r Page 1. The USSR is bringing new diplomatic pressure to bear on Turkey and Iran, key states in the northern tier Baghdad pact grouping. These moves follow Soviet offers of arms and economic assistance to the Arab states, which apparently were a decisive factor in halting, at least temporarily, further extension of the Baghdad pact. The USSR is now trying to deal a frontal blow, crippling the pact in spirit if not, in body. ARAB-ISRAELI SITUATION . . . . . . . . . . . . . . . . Page 3 Border incidents continue on the Israeli-Egyptian frontier. Israel reports it used "heavy artillery" in countering alleged Egyptian attacks on border patrols in the El Auja area. New truce arrangements for the El Auja zone, the possibility that Syria will. release Israel military prisoners, and Israel's apparently continuing reassessment of its internal and external position account for the relatively static conditions prevailing MOLLET WILL ATTEMPT TO FORM FRENCH GOVERNMENT . . . . . . . . . . . . . . Page 4 If French Socialist leader Guy Mollet succeeds in forming a Republican Front government, it will probably be with Communist backing. The Communists will then be able to claim that a popular front has actually been achieved. Right-center leaders (Faure-Pinay) have indi- cated a willingness to tolerate a Republican Front government, but they still demand that the Republican Front disclaim acceptance of Communist support as a prerequisite to their support. ~ONFIIfE1Nt x Approved For-Release 2005/Q~ Wt-RDP79-00927 Q0700110001-4 SEC ET /02/ : CIA-R 25X1 25X1 Approved For Release 2005 DP79-00927A000700110001-4 THE WEEK IN BRIEF Approved Forplease 2005/Q?Et d&RDP79-009270700110001-4 26 January 1956 NOTES AND. COMMENTS Soviet Bloc Activity in Africa: The.Soviet bloc's effort to expand is economic and diplomatic influence in Africa is continuing. There are reports of new Soviet moves in Libya, Liberia, the Belgian Congo, the Sudan and possibly Morocco. . . Page 1 25X1 Warsaw Pact Nations Meet: What is believed to be the first session of the political committee of the Warsaw pact since its creation last May is scheduled to convene in Prague on 27 January. It will probably enroll East Germany as a full mili- tary partner and discuss long-range planning for Soviet bloc defense production. F_ I . . Page 2 25X1 High-Level Chinese Delegation Tours Soviet Bloc: The high-level Chinese delegation headed by Vice Premier Marshal Chu Te touring the Satellites has been enthusiastically received, particularly in Prague and Budapest. American observers report that the Chinese are receiving more attention than comparable Soviet delegations. In general, the Satellites' treatment of the Chinese suggests they are following the Soviet line laid down last Feb- ruary that the Communist camp is headed jointly by the USSR and Communist China. I. . Page 25X1 Soviet Forces in Germany in Winter Training: Soviet forces in Germany are conducting a normal winter training program after completing the annual fall rotation of incoming recruits and.outgoing dis- chargees'in December. The rotation did not affect Soviet ground strength in Germany which remains at about 400,000. . . . . . . . . Page 3 Khrushchev's '.'New Lands" Speech: Khrushchev's recent criticisms of the shortcomings of the "new lands" development program do not indicate there will be major modifications of that program. Most of his criticisms were standard complaints directed at perennial deficiencies and bureaucratic mis- management in Soviet agriculture. Page 4 25X1 SECRET ii Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 THE WEEK IN BRIEF Approved For.Release 2005/ 1e T=RDP79-00920700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 Japanese-Soviet Negotiations: Top Japanese government and party officials have discounted persistent Tokyo rumors that Japan will compromise on the territorial issue in order to reach a settlement with the USSR. Despite strong popular support for a firm Japanese position, however, Tokyo is likely to compromise rather than let the talks fail. Page 5 N. Korea N. Vietnam, Outer Mongolia Move for Recognition: There' have' been' an increasing .riumbe.r.of Sino Soviet bloc overtures in the last month aimed at obtaining diplomatic recognition of North Korea, North Vietnam and Outer Mongolia. So far, the recognition of Outer Mongolia by India and North Vietnam by Indonesia are the only instances of recognition of these countries by non-Orbit countries. I .. . . . . . . . . . Page 6 Peiping Accelerates Socialization: Communist China is moving far more rapidly than scheduled in early 1955 toward complete socialization of in- dustry, commerce, and agriculture. The accel- erated drive may add temporarily to China's economic problems, and arouse widespread dis- affection, but government controls over the population are believed adequate to enforce the program. . . . . . . . . . . . . Madame Sun Yat-sen's "Goodwill" Tour: Peiping has made Madame Sun Yat-sen 's visits to India and Burma the occasion for reviving the concept of a high-level conference of all Pacific powers. Madame Sun Vat-sen's failure to comment on Indian- Pakistani relations and her acceptance of Paki- stan's invitation for a visit demonstrate: that' the Chinese Communists apparently will not allow past strong Communist criticisms of Pakistan to interfere with their Policy of courting that Page 7 country and other SEATO powers. . . Page 8 25X1 Indonesia: The moderate Masjumi party, which leads the present Indonesian cabinet,has managed thus far to keep the. government in office, but its chairman, Natsir, faces an attempt, apparently backed by President Sukarno and the Nahdlatul Ulama (NU), to deprive him of party leadership. His probable successor, Sukiman, would be less likely to resist the extreme brand of nationalism increasingly practiced by President Sukarno and the National Party and supported by the Communists. . . . . . . . . . . . . . . . . . Page 9 SECRET 'iii Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 THE WEEK IN BRIEF Y Approved For ease 2005/09/,Q,fff DP79-009270 0700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 The Bombay Riots: New Delhi intervened for the first t me on 23 January to bring to an end the week- old rioting in Bombay and some other cities over India?s most critical domestic political problem-- the linguistic states issue. The rioting will probably die down in the near future and be followed by political negotiations. This might eventually lead to a decision not to divide Bombay. E . . . . . . . . . . . . . . . . . Page 10 North Africa: n Morocco, the nation- aiists continue to express a desire for discussions with American officials concerning US air bases. . . . . . . . Page 12 Cyprus: Governor Harding returned to Cyprus on 25 January, following several days of discussions in London, for talks with Archbishop Makarios. Harding will tell Makarios that London is willing to modify "objectionable language" in its formula for a settlement, if the archbishop will agree to denounce terrorism and co-operate in estab- lisping self-government. The British seem confi- dent, however, they can stamp out terrorism whether Makarios agrees to co-operate or not. . . . . . . . . . . . . . . . . . Page 13 25X1 Monnet Marshaling Support for EURATOM Proposals: The 33 political and trade union leaders w o attended the inaugural meeting of Jean Monnet's Action Committee for a United States of Europe in Paris on 17 and 18 January agreed to support parlia- mentary resolutions which would pave the way for the EURATOM (European atomic agency) plan. The conference made a promising initial attack on the current political obstacles facing the European integration movement. I I . . . . . . . Page 13 25X1 Antitax Movements on Poujade Model in Italy and Greece: The Pau adf -anti ax movement's success in the French National Assembly elections of 2 January has encouraged the formation of similar organi- zations in Italy and Greece, and may lead to a new extreme rightist movement in West Germany. While the initiative seems in no case to have come from Poujade, reports of existing or pro- jected contacts between him and surviving elements of the prewar extreme right suggest that efforts may be made to foster and manipulate Poujadism in their interest. I I . . . . . . . .-. Page 14 SECRET iv Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 THE WEEK IN BRIEF Approved For. Release 2005/00/,a,?,k4A*RDP79-009270700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 PATTERNS AND PERSPECTIVES THE SOVIET LEADERSHIP ON THE EVE OF THE 2 O t PARTY CONGRESS . . . . . . . . . . . . . . . . . Page 1 The emergence of Party First Secretary N.S. Khrushchev as the dominant figure in the Soviet party presidium is probably the most significant of the changes in the collective leadership in the three years since Stalin's death. Group rule continues, however, and policy is apparently still made in committee where the other leaders exercise a moderating influence on Khrushchev. Preparations for the 20th Party Congress in February have been accompanied by political maneuvering and personnel shifts-at the intermediate level. 25X1 THE SOVIET FOREIGN MINISTRY SINCE STALIN'S DEATH . . . . Page 4 The reorganization of the Soviet Ministry of Foreign Affairs and a number of shifts in foreign service personnel are the latest in a series of trans- fers, appointments, and administrative realignments which have taken place periodically since Stalin's death. Assignments within the Sino-Soviet bloc are now held primarily by party careerists turned diplomat, while posts outside the bloc continue in the hands of career diplomats. These changes appear to be aimed primarily at making the Foreign Ministry a more effective instrument of the Khrushchev-Bulganin diplomacy. They may, however, be related to Foreign Minister Molotov's public humbling in September, and it is possible that many of the changes within the ministry since Stalin's death have been the subject of controversy between Molotov and the party leaders. 25X1 'PEIPING ACCELERATING ECONOMIC PROGRAM . . . . . . . Page Many important upward revisions have recently been made in Communist China's First Five-Year Plan, suggesting that Peiping, as did the USSR, will complete its first plan well ahead of schedule. The plan covers the period 1953 through 1957?. Plan goals for socialization of farming, industry and commerce have already been achieved, and industrial production during 1956 may approach the plan target for 1957. Important elements of the economic construction program are ahead of schedule, an achievement partly due to strong Soviet and Satellite SECRET v Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 THE WEEK IN BRIEF Approved Forlease 2005/0?RDP79-0092700700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 technical and material support. Financing of the new course will require continued emphasis on austerity, and the program will continue to be faced by problems re- sulting.from a severe shortage of technicians, overem- phasis on quantity rather than quality, and passive re- sistance by peasants to joining the co-operative system. CONFLICTS IN PAKISTAN. . . . . . Page 10 The ability of Pakistan's government to make domestic decisions and to evolve a consistent foreign policy is being reduced by ideological and political conflicts which have arisen since East Pakistan re- ceived a greater voice in government six months ago. None of the warring political factions is yet strong enough to overthrow Pakistan's present leadership, but the prospect of the government's achieving stability and of continuing its wholehearted co-operation. with the West seems less assured than a year ago. Top Pakistani officials are now emphasizing the advantages of neutralism, possibly to promote additional American aid and support. THE UNREST IN SPAIN . . . . . . . . . . . . . . . . . Page 12 The past few months have been marked by wide- spread public dissatisfaction in Spain over price rises, by increasing dissension within the Falange, and by signs of deep disillusionment with the regime on the part of university students. There are indi- cations that Franco is disturbed over the situation and may attempt to deal with it by reshuffling his 25X1 SECRET vi Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 THE WEEK IN BRIEF Approved For tease 2005/02/,1A.~G1P79-00927/00700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 OF IMMEDIATE INTEREST USSR APPLIES NEW PRESSURE TO NORTHERN TIER STATES New Soviet diplomatic moves toward Turkey and Iran are aimed at convincing the states along the USSR's south- ern borders that their partici- pation in the Western alliance system is not necessary because there is no Soviet threat. The presence in the USSR in early January of several top-ranking Soviet diplomats from Near Eastern posts sug- gests that Moscow is carefully co-ordinating its campaign against the northern tier. The Soviet ambassadors to Iran and Turkey returned to their posts on 19-20 January after an ab- sence of approximately two and one half months in the USSR. Concurrently the appoint- ment of a new Soviet ambassa- dor to Pakistan, Ivan F. Shped- ko, was announced on 19 January. Shpedko has had considerable diplomatic experience in the area. He may bring offers with him designed to take ad- vantage of growing sentiment in Pakistan that neutralism pays better than alignment with the Baghdad pact and SEATO. Soviet bloc offers of arms and economic assistance to the Arab states appear to have been a decisive factor in causing at least a temporary halt in the extension of the Baghdad pact. The success of that So- viet campaign also set the stage for a frontal diplomatic drive on the members of the pact, in which the USSR sees its best chance to date of crippling the spirit, if not the body, of the pact. Turkey Although Turkey has sharply rebuffed friendly Soviet over- tures in the past, Moscow has persisted in its efforts to neutralize this keystone of the Western alliance system in the Middle East. Khrushchev argued forcefully with the Turk- ish ambassador in November for an improvement in Soviet- Turkish relations and admitted that past Soviet policy toward: Turkey was "an error." "Northern Tier" Arab League 26 JAN 1956 LEB, ISR.I SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 OF IMMEDIATE INTEREST Page 1 of 5 Approved For Flease 2005/02/'4A&GI,9-R~P79-00927Add00700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 In his Supreme Soviet speech on 29 December, Khxush- chev again admitted that some part of the blame for the un- favorable state of Soviet- Turkish relations lay with the USSR. President Voroshilov went out of his way on 10 January to outline to the new Turkish am- bassador the importance of good relations between the two coun- tries and repeated Khrushchev's remark that the blame for un- favorable Soviet-Turkish rela- tions was not all on one side. Unlike previous encounters be- tween Soviet leaders and the Turks, no reference was made to Turkey's role in NATO. Voro- shilov urged an improvement of relations between the USSR and Turkey independent of other relationships. According to President Baya.r, Voroshilov also told the ambassador that the USSR was willing to give Turkey unlimited economic aid "with no strings attached," and to help it out of its present financial straits. Baya.r said that the USSR has stepped up its campaign against the present Turkish government through the distri- bution of leaflets in principal Turkish cities where there are "large numbers of marginal work- ers" who might be influenced by Soviet propaganda. The leaf- lets attack the pro-Western policies of the government and call upon the people to bring about a. change. Moscow probably-does not expect the Turks to respond favorably to its offers at this time, but calculates that ulti- mately Soviet "bargains" in economic and financial assistance will have some effect. Turkish officials have voiced some con- cern lest the Soviet offers, if propagandized in Turkey, might increase the power of opposition elements. While it is unlikely under present conditions that the Soviet offers will be given any immediate consideration, the Turkish government is ex- ploiting them to expedite the long-awaited loan from the Unit- ed States., After a. brief period of coolness following Iran's ad- herence to the Baghdad pact, Moscow is again pursuing a policy of aggressive cajolery aimed at encouraging Iran to reappraise its military align- ment with the West. Hard on the heels of ex- ceptionally cordial treatment of the Iranian parliamentary delegation in Moscow, Foreign Minister Molotov on 13 January attended an Iranian embassy reception and told the Iranian ambassador that if Iran is not satisfied with the assurances of nonaggression contained in the 1927 Soviet-Iranian treaty, it could be replaced by a four- power guarantee of Iranian neutrality. According to the Iranian minister of foreign affairs, Molotov stated that the USSR would be happy to participate in such a. guaran- tee if Iran would withdraw from the Baghdad pact. SLCRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 OF IMMEDIATE INTEREST Page 2 of 5 Approved For 41ease 2005/02 1R + I DP79-00927A400700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 Iranian officials fear an increase of neutralist senti- ment, unrest among the popula- tion, and indecision in the government if Moscow should propagandize such an approach. A Tehran newspaper has already stated that the idea of a new nonaggression treaty with the Soviet Union has been mentioned in Tehran political circles. : :'It seems likely, in view: of increasing Iranian economic ARAB-ISRAELI SITUATION . Border incidents continue on the Israeli-Egyptian fron- tier. Israel reports it used "heavy artillery" on the fron- tier on 21 January in counter- ing attacks on border patrols in the El Auja area. Incidents on the Egyptian- Israeli frontier may be reduced if Egypt and Israel observe the new UN arrangements in the El Auja zone. These call for demarcation of the border and the withdrawal of both Egyptian and Israeli military forces from the zone. UN secretary general Hammarskjold obtained Egyptian agreement to the ar- rangements on 22 January. UN truce supervisor General Burns had earlier received a letter from Israel "confirming" accept- ance. The Israelis claim that the UN Security Council resolu- tion of 19 January condemning PART I difficulties partly induced by Soviet refusal to buy Iranian rice, that the USSR will soon propose revival of trade and possibly some form of economic assistance. In the unlikely event that Moscow does not soon follow through on the de- marche in Moscow, the Shah's trip to Moscow tentatively scheduled for May may be the occasion for further offers. Israel for its attack on Syria on 11-12 December failed to con- sider the whole history of Syrian-Israeli relations. A long-standing thorn in these relations may be removed, how- ever, if, as seems likely, Syria fulfills the UN request that all Israeli military prisoners be returned. The Syrian chief of staff has indicated to the American army attache that if necessary he will do this on his own initiative. Passage of the UN resolu- tion has brought renewed Is- raeli efforts to press for arms from the Western powers--mainly the United States. It is proba- ble that purchasing missions have already been sent to likely markets of supply. The Syrian chief of staff told the Ameri- can attache in Damascus he believes Israel has an arms purchasing mission in Prague, but there is no confirmation of this. A group of Israeli army engineers--possibly a SECRET Approved For ReoJ IMMED/IAA/TE : IINTEREST-00927A0007001100 p0a1g-4e 3 of 5 25X1 Approved For Release 2005/02ZDP79-00927QO 0700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 purchasing mission--is to leave in early February for a three- week visit to London and proba- bly to Continental Europe. Traditionally moderate newspapers in Israel have re- cently speculated along alarm- ist lines concerning Israel's course if the United States refuses or delays approval of its arms request. The American embassy in Tel Aviv believes these editorials may be part of a propaganda effort to sup- port Tel Aviv's pressure for aims.. The embassy also suggests this press speculation may indicate a growing conviction that Is- rael may be required to adopt measures stronger than in the past. Thus far, however, there has been no indication of in- tent. to initiate full-scale hostilities or another major border attack, although a tough MOLLET WILL ATTEMPT TO FORM FRENCH GOVERNMENT If French Socialist leader Guy Mollet succeeds in forming a Republican Front government, it will probably be with Commu- nist backing. The Communists will then be able to claim that a popular front has actually been achieved. Right-center leaders '(Faure- Pinay)'.zave indicated a willing- ness to tolerate a Republican Front government, but they still demand that the Republican Front disclaim acceptance of Communist support as a prerequisite to their support. The Popular Re- publican party (MRP) in particu- lar would like to stay close to the Socialists, not only to thwart a popular front but to posture on the frontier will almost certainly be maintained. The Israeli government may be forced to pay more atten- tion to its internal political problems if the Progressive Party carries out its threat to resign from the present gov- erning coalition over the long- debated compromise on wage in- creases. vailing at present. The Arab states, meanwhile, also continue to be largely preoccupied with their own in- ternal problems. Consequently, the new truce arrangements for-the El Auja zone, the possibility that Syria will release Israeli military prisoners, and the apparent continuation of Israel's careful reassessment of its current internal and external position account for the rela- tively static conditions pre- protest its reputation for so- cial liberalism. Most parties to the right of the Socialists, including the Mendes-France Radicals, are worried not only about a popular front evolving from Communist support of a Socialist premier but also about joint Communist-Socialist efforts to abrogate the law permitting state aid to church schools. There is some speculation that to prevent such a popular front the MRP will be willing to offer Mollet its support if he will make so forth- right a statement on foreign policy as to force the Communists to qualify their support. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 OF IMMEDIATE INTEREST Page 4 of 5 25X1 Approved For eease 2005/02/10 : CIA-RDP79-00927700110001-4 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 The Republican Front is experiencing difficulty in distributing the prospective cabinet posts within its own camp. Mendes-France is report- edly reluctant to accept the over-all direction of economic affairs including finance, and wants instead the Foreign Min- istry. Mollet reportedly feels such a move might frighten the 'right-center, from which the Republican Front will have to get support for its foreign policy. The Socialist leader would prefer having a Radical in the economic post to reassure conservative deputies and busi- ness interests. The two leaders are also at odds over other appointments. Mollet is cool to Mendes-France's wish to accommodate Mitterrand of the Democratic Resistance Union and Chaban-Delmas, the Gaullist Social Republican lead- er. Although the Republican Front thus faces considerable difficulty in forming a govern- ment, the need for rapid action, 25X1 particularly in regard to the Al- gerian problem, is expect d speed up the process. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 OF IMMEDIATE INTEREST Page 5 of 5 -App oved.Eor- e~ease_ -nno, P79:-0Q927 0 0Z0D'1:10001 CUR RENT INTELLIGENCE WEEKLY SUMMARY 26 January 1,956 PART -II Soviet Bloc Activity in Africa The Soviet bloc's effort to expand its economic and dip- lomatic influence in Africa is continuing. There are reports of new Soviet moves in Libya, the Sudan, Morocco, Liberia, and the Belgian Congo. While presenting his cre- -'dentials to the king of Libya, Soviet ambassador Generalov offered to supply immediately 40,000 tons of wheat and spoke of "unlimited" economic assist- 'ance, according to Prime Min- ister Ben Ilalim. Generalov also n' dicated to the Chairman of the Libyan Petroleum Commission that the USSR wishes to apply for an oil concession in Libya, but this subject has apparently not been brought up officially. with Egypt, which. regards those countries as falling within its sphere of influence. The re- action of Libyan and Sudanese leaders has not been unfavorable to-bloc approaches, probably because of their awareness of the increased bargaining power the offers will give them vis- 25X1 a-vis the United States. Pen IIalim says he will definitely limit the USSR to normal diplomatic activities, buut might be "most reluctantly forced to accept" Soviet eco- nomic aid, unless he has clear eviCynce of support from his Western allies. Sudanese premier Azhari publicly stated on 22 January that his government had sent delegations to Czechoslovakia and other Eastern and, Western European countries to shop for arms. The Soviet bloc's eager- ness to establish trade rela- tions with the Sudan' and. ,Czech- oslovakia's active role as arms seller-to underdeveloped areas make it likely that Azhari will get very good terms from the Communists. It is probable that Moscow has co-ordinated its moves in Libya and the Sudan very closely 'SECRET LIBERIA The Soviet-Liberian nego- tiations pressed by A. P. Volkov at President Tubman's"_ inaugura- tion have so far''resulted in a j oi,nt commun iquue " and two notes which, as interpreted by Moscow, left an impression that an ex- change of ambassadors was im- minent. The American embassy believes that this was the re- sult-of naivete on the part of Liberian drafters. Tubman on 24 January declared that the legislature would not take ac- tion on the Soviet proposal during this session. The em- bassy believes Tubman will re- main firm. BELGIAN CONGO V. I. Avilov,., .the Soviet ambassador to Belgium, told the governor general of the Belgian Congo during his current tour there that the USSR, intends to compete both. peacefully and PART I I Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 NOTES AND COMMENTS PAGE 1 of15 Approved For F, a ase 2005I ( 1e J-RDP79-00927A000700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 successfully in all markets, and indicated Soviet interest in establishing trade with the Congo. Any economic agreements involving the Congo would have to be proposed in Brussels, through the Belgium-Luxembourg Warsaw Pact Nations Meet What is believed to be the first session of the political committee of the Warsaw pact since its creation last May is scheduled to convene in Prague on 27 January. It will probably enroll East Germany as a full military partner. The Soviet regime has shown the importance it attaches to this meeting by including Foreign Minister Molotov and Defense Minister Zhukov in the Soviet delegation. The assumption of full responsibilities under the Warsaw pact by East Germany is possible now because of the formalization of the East German army on 20 January. Although High-Level Chinese Delegation Tours Soviet Bloc The high-level Chinese Communist delegation now tour- ing the Satellites has been enthusiastically received in the various Satellite capitals, particularly in Prague and Budapest. The head of the dele- gation,Marshal Chu Te, a famous figure in the Chinese Communist movement, is a politburo member and vice premier. The Chinese junket, which is one of tk',,,: broadest under- taken by high-level Chinese fig- ures in several years, started with a brief stop in Moscow on economic union. According to a Soviet official, the USSR does not plan to open a con- sulate in the Congo. It might use the services of the Czech consul in any commercial trans- actions. (Con- 25X1 curred in by ORR) East Germany was a signatory of the pact in May 1955, it was excluded from participation in the Joint Command established at that time. The committee reportedly will also discuss long-range planning for Soviet bloc defense production. It will probably give guidance to the Council for Economic Mutual Assistance in the co-ordination of Satellite economic plans. The Soviet journal New Times has stated that economic co-ordination of Communist countries will be "further strengthened in the nearest future." 25X1 (Concurred in by ORR) 18 December and has included official visits to Rumania, East Germany, Hungary and Czech- oslovakia. Chu Te attended the Rumanian Second Party Congress from 23 to 27 December and de- livered a major speech which was given wide coverage by the Communist press, including the Cominform journal. The group participated in the birthday celebration for East German president Wilhelm Pieck in East Berlin on 4 January and will be represented at the meeting of the Warsaw pact political com- mittee which will convene in SECRET PART I I Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 NOTES AND COMMENTS Page 2 of 15 Approved For jase 2005/ CP4fV-RDP79-00927A0000700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 Prague on 27 January. A member of the group, Marshal Nieh Jung-chen, has been designated as Communist China's official observer at the meeting. Official speeches and press coverage in both Hungary and Czechoslovakia stressed, without specifically referring to ties with Moscow, the signif- icance of close economic and cultural relations with Peiping. The receptions accorded the Chinese delegation in Buda- pest and Prague have been characterized by American offi- cials as equal to and possibly greater than the receptions granted to comparable Soviet delegations. The delegation arrived in Prague on 17 January and for the next three days was treated to a round of official speeches, tours and state re- ceptions. The American embassy noted that the regime leader- ship was "so busy looking after the Chinese that when the new Soviet ambassador arrived in Prague, only second-or third- Soviet Forces in Germany In Winter Training Soviet forces in Germany are conducting a normal winter training program after complet- ing the annual fall rotation of incoming recruits and out- going dischargees. The rotation did not affect Soviet ground strength in Germany, which remains at about 400,000. . Infantry units have ap- parently reached the inter- PART II stringers were at the airport to meet him." The embassy also commented that a statement in a speech given by Premier Siroky might sound as if Czechoslovakia, put Communist China "above the USSR in importance to the bloc." This apparent faux pas was cor- rected the following day, how- ever, when President Za.potocky placed the friendship of China "next" to that of the USSR. The attention devoted to the visiting Chinese by Prague and Budapest is in harmony with the Soviet line--introduced in February 1955--that the Com- munist camp is headed jointly by the USSR and Communist China. Although Soviet and Satellite leaders have used this formula. in referring to the leadership of the Communist camp, the Chinese Communists continue to refer to the Communist camp as headed by the USSR alone. Thus, in his reply to Zapotocky, Chu Te stated that Czechoslovakia and Communist China are "equal brothers" in the camp of Socialism "headed by the USSR.." mediate training pha,se--company group exercises emphasizing physical condition. A rein- forced battalion conducted exercises on January, a few weeks earlier than is usual for this type of field problem. The rotation of rocket launcher, field artillery, and antiaircraft artillery units from home stations to firing SECRET Approved For R Il,-~e~20Ap5~02C/oO~ C -RDP79-00927A0007001Page 3 of 15 25X1 Approved For Lase 2005/01SECRDP79-00927700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 ranges has become. extensive. Intensified artillery training may be expected this winter with the improved weapons Khrushchev's "New Lands" Speech Speaking on 21 January be- fore a conference of Komsomol members engaged in the "new lands" program, Communist Party first secretary Khrushchev criticized bureaucratic mis- management and called for great- er efforts to raise the pro- ductivi ty of agricultural labor. brought in as part of the pro- gram of improving field and antiaircraft capabilities of the Soviet forces in Germany. F__ I Khrushchev's criticisms of the shortcomings of the 'tnew lands" development pro- gram do not indicate there will be major modifications of that program. Most of his criti- cisms were standard complaints directed at perennial deficien cies of. Soviet agriculture. Main New Lands area Areas of Secondary Consideration SOVIET NEW LANDS PROGRAM SECRET 25X1 FAST I I Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 NOTES AND COMMENTS Page 4 of 15- Approved For Lease 2005/02/SECRE 1P79-009270700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 Khrushchev's "suggestion" that a part of the poor lands having a high salt content and too shallow topsoil be used for animal husbandry was an inte- gral part of the "new lands" program as initially conceived. In newly formed state farms, such marginal lands were planned to make up not more than 25 percent of the cultivated area. In practice, however, the ini- tial effort was devoted almost exclusively to meeting the goals for increasing the sown area, and poorer soils now con- stitute over half the total. Since the effort to expand the sown area is now nearly complete, Khrushchev's sug- gestion that mare effort be put on livestock production is timely but not a major change. Khrushchev also promised a limited additional agricul- tural expansion in eastern Siberia and the Far East. He described these areas in glow- ing terms, 'hut his key state- ment was, "W' shall not force the development of work on fur- ther reclamation of virgin land in eastern Siberia and the Far. East." During 1954 and 1955, local reclamation projects, to be com feted by 1955, were Japanese-Soviet Negotiations The Japanese and Soviet negotiators, Matsumoto and Mal- ik, gave no indications of will- ingness to male early conces-' sions when they resumed their discussions in London on 17 January. In a barbed exchange reiterating previous positions on the prisoner-of-war issue Matsumoto insisted that Japa- nese -etainees be returned prior to the sigaing of a ' treaty, while Malik asserted that the PART II established in areas from Irkutsk to Sakhalin, but these areas were of seco l.rln. r consi(lr`,0").. iii. t'..1:. `'new lands"program. Expan- sion will apparently stay within the limits set by the new Five- Year Plan, under which land may be reclaimed if great capital investment is not required ,anr if a good stable harvest can be obtained. Khrushchev's exhortations to raise agricultural labor productivity, especially in ani- mal husbandry, reflect,- the goals of the Sixth Five-Year Plan, which calls for increases in labor productivity of 73 p,---!r- cent on' state farms and 100 per- cent on collective faros, Such rates of growth have never been achieved in the past, but are now necessary because of in- creasing demands being placed on the labor resources of the USSR. Soviet agriculture has been notoriously extravagant in its use of labor, particulaLr-. ly in animal husbandry, which employs more than half the agricultural labor force, and in which.productivity is be- lieved to be still below the prewar level, 25X1 (Prepared by OR1 USSR, by offering to free all prisoners after conclusion of a treaty, was granting better terms than the United States gave at San Francisco. Malik, obviously angered by the Japanese statements and confident of the strong Soviet bargaining position, reminded Matsumoto that Japan had surrer_- dered unconditionally. 'ie im- plied that Japan must cease SECRET Approved For Releg8$ Jg05I02DI1 : CIA RDP79-00927A000700110001-4 N Page 5 of 15 Approved For,Jease 2005& ,1i-RDP79-00927 0700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 introducing artifical obstacles in the negotiations and must make concessions if the talks are to succeed. At their meeting on 24 January the negotiators, in an article-by-article discussion of the Japanese draft treaty, agreed on noncontroversial clauses and minor questions of terminology but avoided dis- cussion on territorial and other disputed issues. A dis- pute did arise, however, over the Soviet demand for most- favored-nation treatment, which Matsumoto would not concede. Such treatment would undercut Japanese enforcement of the embargo on the shipment of stra- tegic materials to the USSR. N. Korea, N. Vietnam, Outer Mongolia, Move for RecognTITIon There have been an in- creasing number of Sino-Soviet bloc overtures in the last month aimed at obtaining diplo- matic recognition of North Korea, North Vietnam and Outer Mongolia. So far, the recog- nition of Outer Mongolia by India and North Vietnam by Indonesia, are the only instances of recognition of these coun- tries by non-Orbit countries. Persistent Tokyo rumors allege that Matsumoto is secret- ly empowered to reach a compro- mise settlement with the USSR, perhaps by agreeing to the re- turn of only one of the southern Kuril islands which Japan claims. These speculations have been discounted by top officials of the Foreign Ministry and the ruling Democratic-Liberal Party, and it appears likely that Matsumoto will receive strong popular support for firm- ness on Japan's territorial de- mands, as he has on the prisoner issue. The Japanese government is likely, however, to compro-? mise rather than let the talks fail if ultimately faced with such a prospect. 25X1 25X1 To bolster the Soviet po- sition supporting Outer Mongo- lia's candidacy for membership in the United Nations, the USSR has lately permitted Outer Mongo- lian officials to adopt a more independent pose in inter- national relations. The current visit to New Delhi of Outer SECRET PART I I Approved For ReI TES AND /1COOMM NTSP79-00927A00070011 f~%164 6 of 15 Approved For Iease 2005/WRgT-RDP79-00927AZP700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 Mongolia's ambassador to India, who normally resides in Peiping, marks the first time since 1925 that the USSR has permitted an Outer Mongolian official to engage in bilateral contacts with any nation outside the Communist bloc. Efforts apparently are being made to obtain recogni- tion from the newly independ= ent Sudan, whose loosely word- ed replies to congratulatory messages from all the Orbit countries hinted at possible recognition of Communist China, North Korea, and East Germany. The Viet Minh has indicated its readiness to exchange dip- lomatic representatives with the Sudan, and North Korea has Peiping Accelerates Socialization Communist China is moving far more rapidly than scheduled in early 1955 toward complete socialization of industry, commerce and agriculture. All private enterprises reportedly have become joint state-private enterprises in major Chinese cities, including Peiping, Shang- hai, Canton and Tientsin, which were the principal remaining strongholds of private capital. Co-operative farming is far ahead of original estimates for this date. "Socialism has fundamen- tally replaced capitalism in China," the Peiping People's Daily concluded on 22 January. Direct state or party control appears to have been estab- lished over nearly all eco- nomic groups in China except a minority of farmers and ped- dlers and handicraft workers in rural areas. The Chinese Communists have pushed socialization well publicized a Sudanese note an- ticipating "the most amicable relations" between the Sudan and North Korea. date. The recognition of Outer Mongolia by India may set a precedent for the recognition of that country, and possibly North Vietnam, by certain of the Afro-Asian neutrals. Efforts on behalf of North Korea are less likely to prove fruitful, however, in view of the UN de- nunciations of North Korea in connection with the Korean war. Where efforts to obtain recog- nition are unsuccessful, these countries will presumably con- tinue to stress commercial and cultural ties, with an eye to obtaining recognition at a later beyond the Five-Year Plan goals announced last July. Under the original plan, only half the private industrial firms were "gradually" to become joint state-private enterprises be- tween 1952 and 1957. Similarly, only one third of the peasants were to be farming in co-opera- tives by 1957. Last summer, Peiping actually scheduled an increase in private retailing between 1954 and 1957, explaining that state and co-operative commerce had overextended itself. This plan was abandoned after a speech by Mao Tse-tung in October and a party central committee directive, both of which urged acceleration of socialization in cities. In July, Mao had abandoned a cautious schedule enunciated in the Five-Year Plan by sparking a mass drive toward co-operative farming. SECRET Approved For Rele 2005A0h10 - - P79-00927A00070011100g01 7 of 15 25X1 Approved For ease 2005/02/~tifPDP79-009270 0700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 There will be major prob- lems of consolidation and ad- ministration of the new joint state-private enterprises and co-operatives, although public reaction to "socialist trans- formation" probably will be greater in rural areas than in cities, where indirect controls over capitalists have been strong since the early days of the re-' gime. The Peiping press is al- ready discussing the next move into the final stage of social- ism, i.e., into collectives in the countryside and state enter- prises in the city. This is apparently to be attempted dur- ing the next two or three years. No clear reason for this important and unexpected speed- up of socialization has emerged. Mao insisted in a December Madame Sun Yat-sen's "Good-will" Tour Madame Sun Yat-sen's recent visits to India and Burma, fol- lowing hard on the Bulganin- Khrushchev tour of those coun- tries, were apparently designed to keep the initiative for "peace" in Communist hands and to expand contacts with all countries receptive to Peiping's advances. Madame Sun's trip was an anticlimax to the Bulganin- Khrushchev visit, evoking "no great enthusiasm" in India and an embarrassingly small turnout in Burma, according to officials in both countries. Unlike the Soviet leaders, Madame Sun avoided making provocative statements. Her failure to com- ment on Soviet support for Indi- an claims to Kashmir and her acceptance of Pakistan's invi- tation for a visit suggest that statement that the leadership had simply underestimated the pressures and capabilities for moving toward socialism and for China's economic develop- ment. Soviet advisers have probably emphasized the diffi- culties of state planning while there is still a. sizable private sector with capitalistic inter- ests in. conflict with the state's aim to monopolize all profits. The effects of the ac- celerated program will be most pronounced in the countryside, where peasants have reacted by selling off and killing farm animals. The regime's controls over the population, however, are probably sufficient to en- force the program. 25X1 I Prepared by ORR) 25X1 the Chinese Communists will not allow past strong Communist SECRET Approved For Releas ROTE 0 /10 : CIA-RDP79-00927A000700110001-4 AND COMMENTS Page 8 of 15 Approved For Rase 2005/02/10,;dQff P79-00927A 700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 criticisms of Pakistan to inter- fere with their policy of court- ing that country and other SEATO powers. Madame Sun repeated Chou En-lai's proposal of last year for a high-level great-power conference on Far Eastern prob- lems and called for all Pacific powers, including the United States, to sign a "collective peace pact" to replace existing "antagonistic military blocs." Indonesia The moderate Masjumi-led government coalition in Indo- nesia, having survived the re- cent withdrawal of two Moslem parties from the cabinet, is continuing its efforts to re- main in office until the elect- ed parliament is seated,.prob- ably in April, Prime Minister Harahap has announced that Dutch-Indonesian negotiations-- the issue which sparked the cabinet withdrawals--will be continued. The Masjumi's principal reason for wanting to continue in office at present is its desire to influence the selec- tion of some 20 appointive rep- resentatives of racial minority groups to the recently elected .parliament. Should these rep- resentatives vote with the Mas- jumi, the party would probably have a plurality in the new parliament. The Masjumi's success in avoiding an immediate cabinet .collapse as a result of the withdrawal of the Nahdlatul Ulama (NU) and the Islamic League is a minor victory, how- ever, when weighed against the fact that the Masjumi is well on the way toward isolation PART II Peiping's propaganda continues to suggest that it desires a general con- ference only as an alternative to a high-level American-Chi- nese meeting, and Madame Sun's proposal was probably in- tended to probe Indian and Burmese receptivity to the idea of a general conference on Far East problems, Thus far, Indian and Burmese officials have not indicated their views on the proposal, I 25X1 from other Moslem parties. Its chances for participation in the next cabinet have been con- siderably reduced. The Mas- jumi also faces increasing in- ternal disunity which appears to be abetted by the NU and probably by President Sukarno. Leaders of the NU--the only other large Moslem party--claim they want to co-operate with the Masjumi but probably can- not do so as long as Natsir re- tains chairmanship of that par- ty. There are strong indica- tions that the NU will back an effort by the Masjumi deputy chairman, Sukiman, either to take over leadership of the par- ty or to withdraw his sizable faction. Possibly as a move in this direction, Sukiman told the press on 24 January that he regarded the government's negotiations with the Dutch as a "national tragedy" and would prefer not to continue them. Any change in the Masjumi leadership or organization in favor of Sukiman would probably lead to greater Masjumi accom- modation to the position of the National Party, which won a SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 NOTES AND COMMENTS Page 9 of 15 Approved For upase 2005/02/~P79-00927A700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 plurality in the 1955 elections and now leads the opposition. Although an alliance between Sukiman and the NU would theo- retically strengthen conserva- tive forces in Indonesia, it The Bombay Riots New Delhi intervened for the first time on 23 January to bring an end to the week- old rioting in Bombay and some other cities over India's most critical domestic political problem--the linguistic states issue. The rioting will prob- ably die down in the near fu- ture and be followed by politi- cal negotiations. The seriousness of the riots was indicated by, among other things, the unusual. insults hui -Led at Prime Minister Nehru. Nonetheless, the strategy of both the Bombay government and New Delhi appears to have been to let popular passions have a relatively free hand in the hope that they would wear them- selves out. New Delhi is capa- ble of taking drastic, effective action to end such riots and has done so in the past. It apparently has been awaiting the first signs of exhaustion among Bombay rioters to step in with full force.? The Congress Party high command announced on 23 Janu- ary that the government would not alter its decision at some time in the future to divide Bombay into three new states-- namely, Bombay City, Maharash- tra, and Gujerat. This an- nouncement will probably be accepted as final by opponents of the move. Moreover, the Congress Party's refusal to accept the resignation of local officials unless they simultaneously would provide little resistance to the extreme brand of nation- alism increasingly evidenced by Sukarno and the National Party and supported by the Communists. resign from the party itself should greatly discourage this form of protest against the government's decision. Use of Indian army troops for the first time on 23 January also indi- cates that New Delhi is now prepared quickly to stamp out further disturbances. Indian Communists, who have capitalized on the situa- tion in Bombay by indulging in their standard tactics of throwing acid bombs and attack- ing police stations and public utilities, are probably not strong enough effectively to oppose the government's firm new. actions. Though it has been re- ported that Communists were directing the Bombay riots, their part has; probably been exaggerated by Congress Party leaders anxious to discredit the Communists following the Bulganin-Khrushchev visit and to hide the probability that many rioters belonged to the Congress Party. The rioting on this same issue in Bombay last November was apparently inspired by Socialists and only subsequently exploited by Com- munists. Top Communist leaders in Bombay are now under arrest. The most important factor likely to restore peace may be the informal announcement on 23 January by the chief minis- ters of West Bengal and Bihar states of their agreement to end boundary differences by seeking to merge the two states SECRET Approved For Relea Sn5 D2fl 0 .0%~,NTS79-00927A000700110001-4 N Page 10 of 15. 25X1 Approved Fc rease 2005/02i?1bICRDP79-00927A000700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 into a single unit. This polit- ical maneuver, if accepted by the people of the two states, would make the merged state the most populous and probably the richest one in India, would challenge Uttar Pradesh, now holding first place, and would be in strong contrast to the division of Bombay into three minor states with knotty ad- ministrative and economic prob- -_1 DAMA.j, oa PART II INDIA PROPOSED NEW STATES Boundary proposed by the States' Reorganization Commission lems and with little political influence. Recognition of these facts might lead Bombay's politicians to reconsider their insistence on their state's division and to decide that they too should favor a single, enlarged Bombay state even more powerful than the present one. This was the recommendation originally made Present boundary a MILES 400 AN DAMAN AND NItOBAR IS. (F. D.; SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 NOTES AND COMMENTS Page 11 of 15 25X1 Approved For R ease 2005/02/10: CIA-RDP79-009 00700110001-4 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 by the States Reorganization Commission in its report sub- mitted last October, which was later modified by the Congress Party high command in response to provincial protests. Nehru and his government would welcome a reunification of Bombay, since this would fur- ther decrease provincialism and increase the spirit of national .unity. Nehru has personally opposed the division of India along linguistic lines, and his government approved it in 195 only in response to growing pop- ular agitation. As shown by the Congress Party's recent adoption of Nehru's new proposal that India eventually be divided in- to only five regional groupings, Nehru is still working to counter the efforts of provincially mind- ed divisive elements in the In- dian population. 25X1 25X1 The death on 23 January of Hadj Thami el Glaoui, the pro- French pasha of Marrakech, does not appear to have poli ticLLl significance. Isti.q,lal party offie.. als continue to indicate publicly and privately their desire for governmental discussions of the American air bases constr,,ictad. under a 1950 US-French agreement. The principal nationalist ob- jective is to procure a financial settlement with which to modern- ize the Moroccan economy and reduce the heavy trade deficit. The Nationalists also seek the renunciation of American extra- territorial rights in Morocco as well as all special privileges SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 NOTES AND COMMENTS Page 12 of 15 Approved Fo ase 2005102 U. 1RDP79-00927A 700110001-4 -SE mor- CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January enjoyed by foreign countries under the 13-power Algeciras Convention of 1906. The most recent approach concerning the bases was initi- ated by Moroccan minister of finance Abdelkader Benjelloun in his capacity as secretary general of Shoura, the rival nationalist party. Denjelloun sought an opportunity to dis- cuss the bases with a "quali- fied high American official." He admitted that his objective was American financial assist- ance :end added that Moscow Cyprus Following several days of discussions in London, Governor Harding returned to Cyprus on 25 January for talks with Archbishop Makarios which are expecterd to be crucial. Hard- ing plans to tell the archbish- op that the substance of Lon- don's formula for a Cyprus settlement cannot be changed, 'b'ut that he will welcome fur- ther talks using the formula as a basis. According to the- British Foreign Office, Harding will 'tell Makarios that London will not "be difficult" a mudi- ficatiou Df objectionable language in the formula if the archbishop will agree to de- nounce terrorism and co-operate in establishing self-government. The British apparently distrust Iakarios and fear that blonnet Marshaling Support For EURATOM Proposals The inaugural meeting of Jean Monnet's Action Committee for a United States of Europe in Paris on 17 and 18 January made a promising initial attack on the current political ob- stacles facing the European .1956 has made both direct and-,.in- direct offers'. of financial 'aid to Morocco. HO said the Egyp- tians have also hinted that they are willing to help Morocco financially. These claims are believed to be exaggerated. Benjellotn's approach does not appear to have had the backing of_either the Istiglal. party or of the Moroccan arnvern he might not live up to any agreement. A, They seem anxious to reach an early decision and are confident they can stamp out terrorism whether Makar ios agrees to co-overate or not. Makarios' acceptance of the British formula may depend on Harding's willingness to make textual changes which Makarios can use to convince his followers that the British recognition of self-,'etermination is genuine, and on the arch- bishop's own estimate of Brit- ish ability to suppress unrest. 'integration movement. The 33 committee members at the meeting included such prominent figures as French Socialist Party leader Guy Mallet, the secretary general SECRET 25X1 25X1 25X1 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 PART II - NOTES AND COMMENTS Page 13 of 15 Approved F r R lease 2005TE1CO-PIQ-RDP79-00900700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 of the Italian Christian Demo- cratic Party, Amintore Fanfani, and West German Socialist Par- ty chairman Erich Ollenhauer. They agreed unanimously to a substantive program for Euro- pean integration and to an outline of political strategy. In general, the Action Committee's program is the one approved in principle by the foreign ministers of the six European Coal-Steel Community countries last June, but its political strategy is to focus for the present on EURATOM, the plan for a European atomic a- gency. Committee members will try to get suitable parliamen- tary resolutions passed at an early date in an effort to guar- antee that parliamentary major- ities will be available to rat- ify:the EURATOM treaties once they have actually been nego- tiated. By this device, and al- so by attempting to influence the form and content of the treaties in the drafting stage, they hope to avert another de- bacle such as befell the EDC treaty. Monnet's activities on be- half of EURATOM have, with some exceptions, apparently been fa- vored by most of the "pro- Ant itax Movements on Poul ade Mode : in Ita,.y and' Greece - The Poujade antitax move- ment's success in the French National Assembly elections of 2 January has encouraged the formation of similar organiza- tions in Italy and Greece, and may lead to a new extreme right- ist movement in West Germany. While the initiative seems in no case to have come from Pou- jade, reports of existing or projected contacts between him and surviving elements of the European" government. leaders in the CSC countries. In West Ger- many, his apparent success in getting the opposition Social Democrats to support the project is being recognized as a unique achievement, possibly having wider implications for future West German foreign policy. According to the American embassy in Bonn, however,` some govern- ment officials who have supported EURATOM only as part of a general movement toward European inte- gration are concerned that Mon- net has postpcned until ..pril. any political action on the common market proposals. In Fiance, Monnet seams al- so to have gained support for EURATOM from elements of the new National Assembly which are widely separated on other issues. The Republican Front press has endorsed the atomic energy proj-. ect, and an effort is reportedly being made to have the assembly take up at an early date the Monnet committee's resolution supporting it. The American embassy in Paris has commented, however, that the close associa- tion of the Socialists with the Monnet committee maybe lessening the attractiveness of integra- tion to onservative ele- ments. prewar extreme right suggest that efforts may be made to foster and manipulate Poujadism in their interest. Italy presents some of the same conditions responsible for the rise of Poujadism in France and Poujade-type move- ments have recently been re- ported in Rome, Naples, Milan, and Bologna. There is much dis- content among small businessmen SECRET 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 PART II NOTES AND COMMENTS Page 14 of 15 Approved Fo ase 2005/ i--RDP79-0092 A ,{}0700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 in Italy with the Segni govern- ment's "interference" in pri- vate enterprise, and evidence of this was seen in the out- bursts against cabinet repre- sentatives at the Rome Conven- tion of Small Industries last week. Prospects for an Italian Poujadist movement will be better indicated in local elec- tions this spring. Poujadist groups may be encouraged by the success of the movement i'ri France to run lists, particu- larly in view of the growing political vacuum on the right caused by quarreling of mon- archist and neo-fascist parties. Poujade has reportedly told an Italian press corre- spondent that he plans to visit Italy in the spring in connec- tion with the formation of a '"middle-class international." While it is unlikely that Poujade himself has as yet formulated any long-range project for international organization of rightist middle- class elements, he would pre= sumably welcome foreign move- ments of this type as strength- ening prospects for his own organization in France. SECRET In West Germany, Otto Strasser, Nazi leader who broke, with Hitler in a struggle for power within the Nazi party, is reported planning a trip to France to meet Poujade soon. Strasser returned to Germany about a year ago and has since tried to establish an authoritarian-minded po- litical following, but so far with little success. Strasser may hope that a Poujadist con- nection would attract other extreme right elements to his support. A Poujadist party has al- ready been organized in Greece and will present candidates in the elections scheduled for 19 February. If this group has an electoral success similar to that of its French proto- type, the small fascist organ- izations which have been nurs- ing cells in several European cities may be emboldened to seek broader support. The French group, as soon as it had demonstrated extensive popular support, reportedly began receiving substantial financial backing, from well- known World War II French col- laborators. C 25X1 PART II Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 NOTES AND COMMENTS Page 15 of 15 Approved Fob- Reloease 2005/02/10 : CIA-RDP79-0092 O 0700110001-4 SECRET CURRENT INTELLIGENCE WEEKLY' SUMMARY 26 January 1956 PATTERNS AND PERSPECTIVES THE SOVIET LEADERSHIP ON THE EVE OF THE 20th PARTY CONGRESS The emergence of Party First Secretary N. S. Khru- shchev as the dominant figure in the Soviet party presidium is probably the most significant of the many changes in the col- lective leadership in the three years since Stalin's death. On the eve. of the 20th Party Con- gress, Khrushchev's pre-eminence is reflected by his ability to control personnel appointments, by the adoption and continuation of major policies associated prominently with him, and by the gradually increasing defer- ence accorded him by lesser leaders. Despite this show of strength, collective leadership will probably continue. The other top members of the hier- archy--Bulganin, Kaganovich, and Mikoyan---appear to work compatibly with Khrushchev, and they occupy positions of great importance in both the party and government where their ex- perience and ability are prob- ably felt to be essential. Therefore, while Khrushchev's pre-eminence now appears to be an accepted fact, the common interests of those at the top level may dictate that these other leaders continue to serve in capacities where they can act as a moderating influence on Khrushchev. Khrushchev's Recent Gains Since the demotion of Malenkov, Khrushchev has pressed steadily forward, seemingly making decisions with increasing confidence and sometimes arbi- trariness, and apparently re- ceiving little or no opposition, even to his more dubious under- takings. His daring policies, presented with great persuasion, have played no small part in his political success. His really solid gains, however, have been made in securing the appointment of his political associates to positions which are likely to carry a slot on the party's central committee to be elected at the congress in February. Over a third of the old central committee members have died,,been purged or relegated to lower jobs. . Their places: on the new central committee will probably be taken by the men who have succeeded them in their party or government work. A significant number of the new appointees were closely associated with Khrushchev, either when he was party boss in the Ukraine or party first secretary in Moscow oblast. Others by their actions and speeches appear to be loyal to him and in accord with his methods and policies. Some of the more signifi- cant appointments of Khrushchev associates from the Ukraine and Moscow are given.in the table on page. 2. None of these listed was on the last central committee elected in October 1952; all may be expected to be on the new central committee elected in February. Appointments made at the July 1955 central committee plenum have been generally in- terpreted as a sign of Khru- shchev's growing strength. They undoubtedly strengthened loyal- ties already existing and may have created others. A. I. Kirichenko, who along with M. A. Suslov was made a member of the party presidium, was associated with Khrushchev in the Ukraine. N. I. Belyayev, one of the new secretaries elected at the plenum, seems to have been astrong supporter of Khrushchev's agri- cultural policies, and D. T. Shepi- lov, another new secretary, seems equally a supporter of Khrushchev's methods and policies in foreign relations and a trusted emissary. SECRET PART I I I Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 PATTERNS AND PERSPECTIVES Page 1 of 13. Approved For Release 2005/02RIBgDP79-0092 A0 (A700110001-4 26 January 1956 Other Khrushchev associ- ates and friends elected to the central committee in 19,52 have received promotions. L..R. Korniyets was named minister of agricultural procurement and 1. A. berov made chairman of the Committee of State Security. Z. T. Serdyuk was promoted from oblast committee secretary to be party boss in Moldavia. It also seems likely that Khrushchev's influence figured in the promotion of General A. A. Grechko, former Kiev,military district command- er, to marshal's rank. The recall of L. G. Melni- kovs closely associated with thrushchev in the Ukraine since 1938, from the Soviet embassy in Rumania to head the Ministry of Construction of Coal Industry Enterprises probably saved him from losing his central commit- tee membership. The most recent indication of Khrushchev's strength was noted in the dismissal of A. I. Niyazov, party boss of Uzbek- istan. This action was taken on zG ,iecember, presumably at a special plenum of the Uzbek central committee which followed immediately the two-day visit of Khrushchev and Bulganin to Uzbek- istan on their return trip from South Asia, There have been several other personnel shifts and signs of maneuvering at the interme- diate level, possibly in prepa- ration-.for'the 20th Payty Con- gress. Position of the Other Leaders As indicated above, Khru- shchev does not seem to be FORMER KHRUSHCHEV ASSOCIATES PROMOTED TO PARTY OR GOVERNMENT JOBS THAT PROBABLY CARRY A SLOT ON THE CENTRAL COMMITTEE Deputy Chairmen, USSR Council of Ministers: V. A. Kucherenko - also Chairman of the State Committee for Construction P. P. Lobanov - agriculture overlord in the Council of Ministers USSR Ministers: 1. K. Kozyulya - Urban & Rural Construction V. V. Matskevich - Agriculture USSR State Prosecutor: R. A. Rudenko Commander, Moscow Military District: K. S. Moskalenko Central Committee "Apparatus" Department Heads V. M. Churayev - Party Organs for the RSFSR N. P. Dudorov - Construction V. P. Mylarshchikov - Agriculture for the RSFSR Republic Party Bosses: V. P. Mzhavanadze - Georgia RSFSR Oblast and Krai First Secretaries:. A. P. Kirilenko - Sverdlovsk Oblast M. M. Stakhursky - Khabarovsk Krai A. I. Struyev - Molotov Oblast G. V. Yenyutin - Kamensk Oblast facing strong opposition with- in the presidium. Bulganin, whom Khrushchev nominated for the position of chairman of the Council of Min- isters, seems content to play a supporting role, and a friend- ly atmosphere seems to exist between the two leaders. Mikoyan appears to approve fully of the current state of affairs. He apparently took over the reins of government during the recent Khrushchev- Bulganin trip to South Asia, and there have been several indications that Khrushchev and Mikoyan are particularly close to one another. The position-,of Kaganovich is less clearly defined, .partly because he has been subjected.. to foreign scrutiny less often, than some of._:the other. leaders. In, fact, however,. he is. one of the key economic experts for the 25X1 SECRET PART II I Approved For e e 2005/02/10 : CIA-RDP79-00927A000700110001-4 RNS AND PERSPECTIVES Page 2 of 13 Approved For Release 2005 NE&fs --RDP79-009270700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 regime. His speech at the revo- lution anniversary celebration on 6 November was a forceful ad- vocacy of the policies of the regime. As for Molotov, he has been relegated almost to the position of an ideological deviationist, whose future, both as foreign minister and as a member of the party presidium, would seem to be considerably less than cer- tain. Molotov's position also suffers because there do not appear to be any other "forces':' within the party hierarchy to support his "Stalinist" orien- tation in foreign affairs. (See Part III, p. 4) Malenkov, of course, has been demoted to second rank in the government, and his once powerful voice in the presid- i im?. now .seems to. be all but. silenced. The other members of the presidium do not seem to have been included in the governing collective. The leadership has had to cultivate.other:forces care- fully lest they become dis- affected. The army, for in- stance, might logically harbor dissident elements. Yet the officer corps is probably in a better position under Khrushchev and Bulganin than it was under Malenkov, both in respect to budget allocations and to pres- tige status. Marshal Zhukov, undoubtedly the man to contend with in the military, is prom- inently associated with the policies of the regime and with the activities of the top lead- ers. Marshal Konev, with ties to Khrushchev, may have been placed close to the center of the military scene to protect the politicians' best interests. Weaknesses of the Leadership Although the leadership does not appear to be seriously divided, it displays several other weaknesses, not of a. crit- ical nature, but possible sourc- es of trouble in the future., control is gradually becoming centered in fewer hands at the top, and the leaders seem reluctant to let younger men fill the void within the party hierarchy left by the elimina- tion of Beria and the down- grading of Malenkov and Molotov. Thus, while vacancies in both the presidium and secretariat were filled at the July plenum of the central committee, these accretions did not broaden the inner core.of leadership. Another possible source of weakness--impulsiveness in de- cision making--stems in no small part from Khrushchev's own personality. He has spon- sored, and the regime has adopt= ed, uch ill-planned projec..s as the corn-hog venture and the new lands program. He has un- necessarily offended influential foreigners by his untimely re- marks, and has caused the other leaders to monitor his conver- sations and censor his indis- cretions in the press. Some opposition within the collective seems probable, particularly since the leader ship has permitted the members it has discredited to retain positions of importance. Signs that this opposition may have made itself felt have been sug- gested by such developments as the failure to replace Molotov, the unexplained announcement and subsequent denial that Mal- enkov had been promoted to first deputy chairman of the Council of Ministers,.and the dispute between Pravda, and Izvestia over newspaper coverage of the corn program. More recently, passible signs of dissidence have been noted in the post- ponement of the Supreme Soviet in December, and the recent delay in convening several republic parity congresses. SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 PART III PATTERNS AND PERSPECTIVES Page 3 of 13 Approved F r Re ease 2005/(1T-RDP79-009?710700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 If, in fact, disaffected elements have gotten together, it seems likely that they would decide to act promptly, either to force a postponement in the congress, itself, or to prevent a Khrushchev "walk away" at the congress-by focusing at- tention, ahead of time, on some dubious appects of his leader- ship. Preparations for the congress are now taking place in a normal manner, however, and the recently published draft directives for the new Five- Year Plan follow closely the policies enunciated earlier in speeches by Khrushchev and Bul- ganin. Conclusions Group rule continues to prevail. The top group of leaders has decreased in size and the "chairman" has become significantly stronger. Policy, however, apparently is still being set. by committee. It is also important to note that Stalin-like adulation of Khrushchev has not set in, nor are there signs that it is about to begin. The other top members of the regime have leading roles to play and they seem satisfied with their lot and confident about the future. They seem increasingly sure of themselves and their policies. The party congress has been ordered to convene in order. to endorse these policies and the leadership that has been responsible for inaugurating THE SOVIET FOREIGN MINISTRY SINCE STALIN'S DEATH The Soviet Ministry of Foreign Affairs has recently reorganized part of its head- quarters staff in Moscow and made a number of personnel shifts both in Moscow and a- broad. These changes are the latest in a series of transfers, appointments and administrative realignments which have taken place periodically since Stalin's death in March 1953. These moves seem to have been aimed 'primarily,.at making the Foreign Ministry a more ef- fective instrument of Soviet diplomacy and only secondarily, if at all, at increasing the political reliability of the foreign service. The shifts may be related, however, to Foreign Minister Molotov's public humbling and loss of status last September. If so, it is possible that many of the changes within the ministry since Stalin's death were op- posed by Molotov and that further institutional developments and personnel shifts may take place. Post-Stalin Developments A drastic personnel shake- up in the ten months following Stalin's death affected almost 70 percent of the top Foreign Ministry -positions. By 10 Jan- uary 1956, only nine of the ap- proximately 76 top men in the ministry remained in positions to which they had been appointed prior to Stalin's death, and many of the men assigned soon thereafter had been moved to other posts. A new trend in personnel assignments developed. Over,the past 34 months, 20 former party careerists turned diplomat were brought into the ministry and assigned to high-level posts. Two of them, successively, head- ed the ministry's press division; a third is, possibly, head of its personnel division; and the ,SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 PART III PATTERNS AND. PERSPECTIVES Page 4 of 13 25X1 Approved For Release 20CSfIC7REpA-RDP79-0090700110001-4 CURRENT INTELLIGENCE WEEKLY S;UMMARY 26 January 1956 other 17 were assigned to dip- lomatic posts in Sino-Soviet bloc countries. At the pres- ent time the Soviet Union's top diplomatic posts in all Communist countries except East Germany are held by these ex-party careerists. Apparently Foreign Ministry training is considered less important in Satellite relations than party organizational, propaganda, and industrial experience. Simultaneously with the influx of party men into the ministry for work within the bloc, steps were taken to re- vitalize and improve the qual- ity of diplomatic representa- tion with non-Communist states to which only traditionally trained diplomats were assigned. Furthermore, steps were taken to increase the number and prestige of diplomatic missions maintained abroad. In March 1953 the USSR had 43 foreign. missions--the UN mission, 28 embassies, and 14 legations; now it has 48--the UN. mission,. 40 embassies, and 7 legations. ALBANIA E BULGARI--E GREECE- HUNGARY-E RUMANIA-E YUGOSLAVIA-E SOUTHEAST ASIAN DE~IC-` BURMA-E NORTH VIETN AIO INDIA-E PAKISTAN-E INDONESIA-E THAILAND-L GEOGRAPHICAL DESK RESPONSIBILITIES 'SECRET GREAT BRITAIN-E NEW ZEALAND-L CZECHOSLOVAKIA-E POLAND-E Recent Developments Within the past two months a sharp increase in personnel transfers and assignments.has taken place and a, reorganization of two of the geographic divi- sions of the ministry has been carried out. More high-level changes have been effected in the min- istry in the last two months than in the preceding seven. Heads of nine diplomatic mis- sions (Ethiopia, Albania, New Zealand, Lebanon, Uruguay, Egypt, Thailand, Pakistan, and North Vietnam) were removed. All of them, except the charge in Uru- guay, and the ambassador to North Vietnam,. had held their posts for two years or more. The New Zealand post has not yet been filled, but ambassadors were appointed for the first time to Libya and West Germany, where diplomatic relations were only recently established. The new ambassadors to Czechoslovakia. (post vacant. 25X1 PART I II Approved For Re %V g/0 j/ :1qft- jTI j7A000700110 p1a-g4e 5 of 13 Approved FQrRelease 2005/sELDRErF-RDP79-009 00700110001-4 26 January 1956 since the transfer of N. P. Firyubin to Yugoslavia iri Au- gust), Albania, and North Viet- nam are former high party of- ficials turned diplomat. since Stalin's death. I. T. Grishin, the ambassador to Czechoslovakia,, was party boss in the important Stalingrad oblast; L. I. Krylov, the ambassador to Albania, was formerly party boss in Orel Oblast; and M. V. Zimyanin, the ambassador to North Vietnam, USSR MINISTRY OF FOREIGN AFFAIRS (CHRONOLOGY OF RECENT CHANGES) 7 October 1955 F. 1. Baranenkov appointed Member of the Foreign Ministry's Collegium 7 November 1955 5th European desk (Balkans) created and V. F. Nikolayev appointed Acting Head 7 November 1955 Scandinavian Desk created and M. G. Gribanov appointed Head, 21 November 1955 B. I. Karavayev replaced A. P. Korobochkin as Minister to Ethjopia 22 November 1955 S.'S. Nemchina,promoted from Minister to Ambassador to, Syria 26 November 1955 V. A. Zorin appointed Ambassador to West Germany 6 December 1955 L. I. Krylov replaced K. D. Levychkin as Ambassador fo;Albania 10 December 1955 I. T. Grishin appointed Ambassador to Czechoslovakia 10 December 1955 N. I. Generalov released as Ambassador to Australia (diplomatic relations had been broken on 23 April 1954} and Minister to New Zealand and appointed Ambassador to Libya x x 16 December 1955. S. P. Kiktev re laced V. A. Belyayev as Minister, to" Lebanon 23 December 1955 S. S. Mikbailov appointed Minister to Uruguay 31 December 1955 Ye. D. Kiselov replaced D. S. Solod as Ambassador to Egypt 2 January 1956 P. K. Yermoshy promoted from Minister to Ambassadorao Iceland 4 January 1956 I. N. Yakushlh,replaced F. P. Dolya as Ambassador to Thailand 19 January 1956 I. F. Shpedko re laced A. G. Stetsenko as Ambassador to alcistan 20 January 1956 M. V. Zimyan n replaced A. A. Lavrishchev as AmbassadortoTlVorth Vietnam was formerly the second secre- tary in Belorussia. These ap- pointments continue the post- Stalin policy of assigning for- mer party officials as ambas- sadors to Satellite counk..eies. Another post-Stalin trend furthered by recent diplomatic action is that of upgrading mis- sions. The legations in Ice- land and Syria have both been raised to embassies with the subsequent promotion of the in- cumbent chiefs of mission.. In addition, relations with Uruguay have been regularized by the appointment of a minister. The Uruguayan post had been held by a, charge since N. V. Gorel- kin was released in August 1952. Organizational changes, too, have been recently car- ried out. The Third and Fourth European Divisions (geographic desks) in the ministry's Mos- cow offices were reorganized in late October or November. This reorganization resulted in the re-creation of the old Fifth European Division as the Scandinavian Countries Divi- sion and the old Balkan Countries Division as a. new Fifth European Division. The old Fifth Euro pean.and.the Balkan Countries Divisions had been merged into the Third and Fourth European Divisions, respectively, shortly after Stalin's death in March 1953. The heads of the newly created divisions were both formerly deputy division heads. Conclusions Taken individually, the current transfers and appoint- ments appear to be consistent with personnel policies followed within the ministry since Sta- lin's death and therefore appear to have only routine signifi- -canoe. The large number of changes in such a short period of time, however, suggest the possibility that more is in- volved. Some of the shifts may SECRET Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 PART III PATTERNS AND PERSPECTIVES Page 6 of 13 Approved Fq4JRe 2005/.SEREIT-RDP79-009Q0700110001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 have been the subject of controversy between Molotov and Khrushchev or Bulganin, with Molo- tov's humbling in Sep- tember an incident in a battle over decisive action on transfers and assignments, favored by the party leaders. The -key to any connection between the recent personnel shifts and Molotov's difficulties might be found in the appoint- ment early in October 1955 of a former de- partment head of the Communist Party cen- tral committee, F. I. Barenenkov, to the Collegium of the For- eign Ministry. The collegium is chaired by Molotov and has as its members the deputy foreign minis- USSR MINISTRY OF FOREIGN AFFAIRS Minister V. M. Molotov 1st Deputy Minister A. A. Gromyko Deputy Minister N. T. Fedorenko 1st Deputy Minister V. V. Kuznetsov Deputy Minister V. S. Semyonov Collegium Member F. I. Baranenkov Collegium Member S. P. Kozyrev Protocol F. F. Molochkov Treaty & Legal .G. I. Tunkin Press L. F. Ilyichev Consular A. P. Vlasov Economic -------------- Administrative S. P. Kozyrev r--_ Persannel ters and a "number of other im- portant chiefs," all appointed by the Council of Ministers. It advises the minister and its members have the right of appeal to the Council of Ministers if they disagree with any of the minister's decisions. Baren- kov has a background of per- sonnel work in the apparatus of the party's central committee and may have been transferred to the ministry to oversee person- nel administration for the Khrushchev-Bulganin group. Collegium Member L. F. Ilyichev Colleglum Member S. K. Tsarapkin Collegium Member M. A. Kostylev International Organizations S. K. Tsarapkin 1st European A. A. Arutyunyan 3rd European S. G. Lapin 5th European V. F. Nikolayev* Near & Middle East Countries G. T. Zaitsev American Countries A. A. Soldatov 2nd European V. Ya. Yerofeyev 4th European Scandinavian Countries M. G. Gribanov Southeast Asia B. M. Voikov Far Eastern I. F. Kurdyukov The continued reliance on career diplomats for posts outside the bloc, however, indi- cates that Khrushchev and his associates, despite their ob- vious impatience with diplomats and traditional diplomacy, still feel that formal missions to non-Communist countries should be headed by professional diplo- ma.ts. The top Soviet leaders may be expected,. however, to bypass these career diplomats in the future as in the past by means of special missions when- ever they feel Soviet aims could be furthered. in .tha.t way. PEIPING ACCELERATING ECONOMIC PROGRAM Many important upward re- visions have recently been made in Communist China's First Five- Year Plan, suggesting that Pei- ping, like the USSR, will com- plete its first plan well ahead of schedule. The final draft of the plan, covering the period 1953 through 1957, was completed only last year. Its success is dependent on continued support from the Soviet bloc, which is providing thousands of technic cia.ns and essential. capital equipment on a priority basis. Mao Tse-tung set a, new course::for 1956 in late Decem-. tier when he stated that the par- ty and the country should turn their full attention from ques- tions of the speed of "social- ist transformation"--which have now been settled--to problems of economic development--agri- cultural and i:ndus:tnial SECRET United Nations 40 Embassies 7 Legations ---Presumed to exist *Acting Head 25X1 25X1 Approved For Release 2005/02/10 : CIA-RDP79-00927A000700110001-4 PART III PATTERNS AND PERSPECTIVES Page 7 of 13 CURRENT INTELLIGENCE WEEKLY .SUMMARY 26 January 1956 production, construction, com- merce, and economic aspects of scientific, cultural, edu- cational and health work. Ac- cording to Mao, "rightist con- servatism" about these prob- lems is still "doing mischief" and Five-Year Plan goals "should no longer be taken completely i.n the:mann.erorigina.lly planned," but, "should be approp ria_tely expanded and acceler- ated. f,I ' Five-Year Plan goals for the socialization of agricul- ture, industry and commerce have already been achieved, two years ahead of schedule. announced that 1957 production targets will be approximated during 1956. The electric pow- er industry presumably has sim- ilar plans in order to meet new demands. The single most important enterprise under the Ministry of Heavy Industry--the Anshan steel combine--plans to reach 1957 production targets during 1956 with an increase over the 1955 plan of 109 percent for steel ingot and 74 percent for rolled steel products. The 1957 target is to be reached or ex- ceeded in 1956 in the output of steam turbines, generators, lathes, diesel engines, elec- tric motors, mining equipment, locomotives and rolling stock. COMMUNIST CHINA ACTUAL VERSUS PLANNED GROWTH OF FARM CO-OPERATIVES Percent 26 JANUARY 1956 Approved Fiease 2005/(BCff-RDP79-00900700110001-4 1 100 , ? ^ ^ - ORIGINAL FIVE YEAR PLAN ACTUAL 00 . CURRENTLY PROJECTED 00 00 MID 1954 MID 1955 MID 1956 Production The outlook is good for industrial production during 1956 to rise by perhaps 20 per- cent over 1955, approaching the Five-Year Plan target of dou- bling the 1952 level of output. The bumper 1955 crops provided unexpectedly large quantities of agricultural raw materials for the important textile and other industries that process agricultural products. More- over, many new factories will begin operating during 1956. The Ministries of Heavy Industry, First Machine Build- ing, Petroleum, and Coal have MID 1957 In agriculture, on the other hand, the regime has set un- realistic targets for 1956, calling for an increase in foodstuffs production of 9 percent' above the 1955 har- vests--which were good as a result of favor- able weather--or 3 per- cent above the orig- inal target for 1957. Even if weather con- ditions are as favor- able in 1956, this target would be over- optimistic. The gov- ernment has only limit- ed programs to expand acreage and fertilizer supply. The recent mass formation of co-operatives has disorganized farming, and peasants have reacted to recent policies of the regime by sell- ing and slaughtering livestock, possibly resulting in a serious reduction of farm animals. Construction The construction program was lagging last year but will more than catch up in 1956 if Peiping achieves its announced plan to increase state invest- ment in capital construction by 50 percent over 1955. 'SECRET PART III Approved For Rp Ip I3jff0p i3L?e M 27A00070011BO014 age 8 of 13 Approved Forjase 2005/Q5jfCDP79-00927k 0qP700110001-4 ,Q CURRENT INTELLIGENCE WEEKLY SUMMARY 26 January 1956 The over-all, five-year in- vestment program of $18 billion (at the official rate of ex- change) has not been greatly en- larged but its emphasis has shifted, with further reductions of nonproductive investments like housing and major expansion of mlans for basic economic ac- ti.vities such as_Lransportation, the electric power industry, and geological surveys. The plan target for 2,500 miles of new railroads is to be met during 1956, more than a year ahead of schedule, and the goal of building and restoring 14,000 miles of new highways had already been reached by the end of 1955. Much of this construction supports an accelerated program to open up resources of Western areas of China, which have been populated mainly by nomadic minority peo- ples. Expansion of communications in the coastal areas opposite Formosa has also been accelerated, primarily to increase the Commu- nists' military capa-. bilities in that area. The electric pow- er industry expects to exceed its original construction plan for 1956 by 20 percent, in order to meet unex- pected industrial de- mands for power. Qlbse Soviet suppotxt"' Tr this revision in the construction program has been necessary be cause nearly all of the 2,000,000 kilowatts: of generating equip- ment to have been added to the industry during the plan period was to have been of bloc manu- facture. PART I I I Also ahead of schedule, according to Peiping,. are three of its largest industrial con- struction projects: the Anshan steel combine, its first truck factory--at Changchun, and the first tractor factory--at Loyang. These projects are designed and built under Soviet supervision. The Anshan combine plans to com- plete all construction work scheduled under the original plan three to six months before the end of 1957. The vehicle factory, which under the orig- inal plan was to begin produc- ing in 1957--eventually annual capacity to be 30,000 trucks-- is now scheduled to produce its first vehicles in October of this year. Major Projects in Communist ,China Under Construction Under the First Five-Year Plan IRON ANO SiflL ~ ELE