CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A001000120001-9
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S
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39
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December 23, 2016
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June 21, 2012
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1
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Publication Date: 
December 13, 1956
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SUMMARY
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Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY COPY NO. 18 OCI NO. 77.54/56 13 December 1956 towmEw No. VI CLASS. CHAAI(f2 TO= NEXT REVIEW DATE: CENTRAL INTELLIGENCE AGENCY I I I OFFICE OF CURRENT INTELLIGENCE CONFIDENTIAL :Z rs a- ?R 11 &T64w. Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 n~ Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Now 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. Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 CONFIDENTIAL CONFID CURRENT INTELLIGENCE WEEKLY SUMMARY OF IMMEDIATE INTEREST HUNGARIAN REGIME LAUNCHES CAMPAIGN TO CRUSH RESISTANCE . . . . . . . . . . . . . . . . . . Page 1 The Soviet-sponsored Kadar regime took strong repres- sive measures on 9 December designed to eliminate resist- ance. The regime's imposition of martial law and the out- lawing of the regional workers' councils--the leading forces of the opposition--have strengthened worker re- solve, however, and resulted in a new and eff ctive zen- eral strike and a. flare-up of armed violence. 25X1 a 7 THE POLISH SITUATION . . . . . . . . . . . . . . . . . . . Page 2 The Gomulka regime in Poland has continued its ef- forts to win increased popular support in the face of popular unrest as exemplified in the recent riots in sev- eral Polish cities. It has reached agreement with the Catholic Church on outstanding differences, is rehabili- tating former Socialist leaders, and has allowed independ- ent youth groups to organize. The regime may feel com- pelled to exercise some controls over the youth groups, however, to keep them from becoming involved in anti- Soviet activities. NOTES AND COMMENTS 25X1 SUEZ PROBLEM . . . . . . . . . . . . . . . . . . . . . . . Page 1 Arrangements for clearance of the Suez Canal are be- ing delayed by Egyptian opposition to British or French participation in clearance operations. The British and French continue to urge that their salvage fleet at Port Said be permitted to carry on its work. Approximately half of the British and French forces have now been with- drawn from Egypt. Final departure may be delayed a few days beyond the scheduled 18 December date. CONFIDENTIAL THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 ? ',-'_ SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 THE MIDDLE EAST SITUATION . . . . . . . . . . . . . . . . Page The USSR has withdrawn its offer to send "volunteers" to fight in Egypt. The leftist group in Syria appears now to be exploiting Iraqi arms-smuggling operations to facilitate a cabinet change and stepping up their efforts in Iraq to unseat Nuri Said. Iraq is withdrawing its troops from Jordan, as requested by Amman, which, how- ever, has not requested Syria and Saudi Arabia to with- draw their troops. EGYPT'S MOVES AGAINST JEWS . . . . . . . . . . . . . . . . Page Reports from Egypt indicate that moves against Jews have not been as extensive as Israeli propaganda has claimed. The Nasr regime does appear to be using the present situation as an opportunity to eliminate foreign influences, especially British, French, and Jewish. Ma.karios and to Athens. BRITISH PLANS FOR CYPRUS . . . . . . . . . . . . . . . . . Page, 6 Britain intends to publish about 20 December, after pro forma consultations with Greece and Turkey, its draft constitution providng limited autonomy for Cyprus. While the constitution would appear to meet Turkey's minimum re- quirements, it will probably be unacceptable to Archbishop Recent reports suggest that some Soviet "W-class" long-range submarines have been equipped to launch guided missiles. Such a role for Soviet long-range submarines .was forecast by party leader Khrushchev last spring when he said that a submarine equipped with guided missiles SOVIET MISSILE-LAUNCHING SUBMARINE . . . . . . . . . . . . Page 7 portedly will be included. KHRUSHCHEV FORECASTS MINOR MODIFICATIONS IN SOVIET POLICY . . . . . . . . . . . . . ... . . . . Page 7 The question of adapting the decisions of the 20th party congress last February to developments since the congress will be discussed at the central committee ple- num scheduled for this month, according to Khrushchev. Measures to improve the lot of the Soviet consumer re- is the "most suitable naval weapon," and that its develop- ment would be emphasized by the Soviet navy. SECRET ii THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 25X1 USSR EASES INTERFERENCE WITH ALLIED ACCESS TO BERLIN . . . Page 8 back on 5 December to avoid such a search. truck convoys, after an American convoy had turned Allied trains and truck convoys are running be- tween West Germany and Berlin without further Soviet attempts to board or inspect them, although the USSR still insists on documentation checks objected to by the Allies. The tension was eased when Soviet au- thorities agreed not to insist on searching military BULGARIA . . . . . . . . . . . . . . . . . . . . . . . . . Page 9. The Bulgarian regime is pursuing a two-pronged policy of severe police repression and economic con- cessions to deal with the popular unrest and faction- alism within the party and groups closely associated with it. There have been reports that workers have demonstrated in the provinces, students have advo- cated less political indoctrination, and youthful "hooligan" elements have eneazed in demonstrations against the regime. AMOY RAILROAD COMPLETED . . . . . . . . . . . . . . . . . Page 9 Quemoy and Little Quemoy Islands. 25X1 ule. The line will greatly increase the Chinese Communists' ability to deliver military supplies to the Taiwan Straits aria. Completion of the railroad also enhances the potential value of Amoy as a com- mercial port, but merchant vessels using the harbor would be exposed to Chinese Nationalist artillery on Tracklaying on the Yingtan-Amoy railroad in Fukien Province was completed to Amoy station on 9 December, about one year ahead of the original sched- CHOU EN-LAI' S ASIAN TOUR . . . . . . . . . . . . . . . . . Page 10 Chou's remarks at the conclusion of his of- ficial visit to India. emphasized his desire for im- proved relations with the United States and were slanted to support possible efforts by Nehru to mediate Sino-American differences during his talks in Washington. Chou is now in Rangoon, where he may be meeting with Burmese resistance to settlement of the border dispute along the lines of the tenta- tive agreement worked out in Peiping last October. SECRET iii THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 LlL tL ?Li CAMBODIA . . . . . . . . . . . . . . . . . . . . . . . . . Page 11 The Communist bloc's economic penetration of Cam- bodia. is increasing. A Soviet economic mission re- cently arrived in Phnom Penh and additional members have joined the permanent Chinese Communist economic mission already there. The projected Soviet aid pro- gram will be "unconditional," as in the case of Pei- ping's assistance to Cambodia. in order to derive maximum good will. LAOS . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12 The Laotian National Assembly is soon to vote on whether to include in the.government two Pathet Lao officials--one of whom would be Pathet chief Souphan- nouvong. In return for the cabinet seats, the Pathet Lao movement would be formally "dissolved." Souphan- nouvong would make a public declaration that he is not a Communist and would provide written guarantees on the restoration of royal government authority in the two northern provinces and integration of Pathet forces in the royal army. The American embassy be- lieves that sentiment for a settlement is strong and there are probably few deputies willing to vote openly against the proposal, even at the risk of losing Ameri- can assistance. HAITI a . . . . . . . . . . . . . . . . . . . . . . . . . Page 13 The resignation of Haitian ruler Paul Magloire on 12 December in favor of Joseph Nemours Pierre-Louis, president of the Court of Appeals, may ease the tense situation in the country. The selection of Pierre- Louis, who was Magloire's legal successor before the "palace revolution of 6 December," may lead to a re- turn to constitutional order. Political conditions, ely to remain unsettled for some time. SECRET iv THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 PATTERNS AND PERSPECTIVES NEHRU' S CURRENT INTERESTS . . . . . . . . . . . . . . Page 1 Prime Minister Nehru, when he comes to the United States on 16 December, will probably be concerned princi- pally with discussions on the Middle East, the position of Communist China, the danger of a renewed cold,war, Hungary, Pakistan, nuclear weapons tests and disarmament, as well as India's relations with the United States. At the same time, Nehru faces a crucial national election with- in four months and must obtain about two billion dollars in foreign aid in the next few. years for the ambitious Second, Five-Year Plan to which he has pledged his pres- tige. manding real independence of the USSR. Since the Poznan riots of June 1956, Soviet leaders ap- pear to have been firmly united on the need to tighten control over the Satellites and check a drift toward de- SOVIET POLICY ON "DIFFERENT ROADS TO SOCIALISM" IN THE SATELLITES . . . . . . . . . . . . . . . . . . . . Page 3 Contrary to speculation about a split within the Soviet ruling group over Satellite policy, none of the Soviet leaders has favored letting the Eastern European Satellites freely seek their own "different roads to socialism" in the Yugoslav manner. In crucial policy debates in 1955, Khrushchev and Molo- tov disagreed sharply over the wisdom of Soviet recon- ciliation with Yugoslavia and the consequences in the Satellites of thus implicitly commending Titoism. There were also disputes over the degree of "liberalization" of Soviet rule best calculated to satisfy national senti- ment in Eastern Europe and ensure Satellite loyalty to Communism and the Soviet Union. Nevertheless, all the Soviet leaders agreed and, from their public utterances, still appear to agree, that preservation of the unity of the Communist world is a prerequisite to the development of each Socialist country's specific national pecularities. SECRET' 'rut' WT-7 TN T TRTi Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 to that of the UN specialized agencies. Y e referred to the subcommittee composed of the Big Four and Canada. The new International Atomic Energy Agency is expected to be given a status similar DISARMAMENT AND ATOMIC ENERGY QUESTIONS IN THE 11TH UN GENERAL ASSEMBLY . . . . . . . . . . . . Page 8 Disarmament discussions at the 11th General Assem- bly are likely to focus largely on the problem of nu- clear testing. India and the USSR will probably call for a complete ban, and the growing apprehension among UN members over the effects of increased radiation indi- cates that a majority would support some UN limitation on testing. General disarmament discussions will prob- abl b CHINESE COMMUNIST "PEOPLE'S DIPLOMACY" . . . . . . . . . . Page 10 Liu Shao-chi's statement before the recent eighth congress of the Chinese Communist Party that "our friends are increasing daily, .,our doors are open to all" reflects Peiping's confidence in the success of what the Chinese call "people's diplomacy." Its pur- pose is to sell Communist China abroad as a cultured, industrious, and peaceful member of the community of nations; it relies heavily on guided tours for visitors to Communist China and exchanges of "cultural" groups, which have been made with suc various non-Com- munist countries. SECRET vi THE WEEK IN BRIEF Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 TAM CURRENT INTELLIGENCE WEEKLY SUMMARY OF IMMEDIATE INTEREST HUNGARIAN REGIME LAUNCHES CAMPAIGN TO CRUSH RESISTANCE The Soviet-sponsored Kadar regime took strong repressive measures on 9 December designed to eliminate resistance. The regime's imposition of martial law and the outlawing of the regional workers' councils-- the leading forces of the op- position--have strengthened worker resolve, however, and resulted in a new and effective general strike and a flare-up of armed violence. Regime Policy and Position Faced with determined and continued worker opposition, the Kadar regime has proved it- self totally incapable of re- storing order or regaining any popular support. Kadar--a na- tional Communist by orienta- tion and a victim of Rakosi oppression--has in fact had to compromise almost all his basic national-Communist tenets in his effort to overcome political and economic anarchy. One of the major reasons for his fail- ure has been the lack of an effective party organization; reports indicate that Com- munist workers and intellectuals and national Communists are shunning the Hungarian Social- ist Workers Party, and only Stalinists and opportunists are joining. Despite his lack of a party apparatus and his in- ability to organize ?a large and reliable security force, Kadar has turned to repression in an effort to check the workers. On 9 December, he announced the abolition of the territorial workers' councils which had become the focal points for worker demands and action. The lower-level factory workers' councils remain, charged only with maintaining production levels and devoid of any politi- cal responsibility. The regime has also moved against all vestiges of active or potentially active resist= ance. Declaring martial law on 9 December, the regime an- nounced that all persons pos- sessing arms after 11 December would be subject to severe penalties, including death. Worker :Attitude In the face of Kadar's threats, the workers have staged repeated demonstrations since 3 December. These shows of strength culminated in a 48-hour general strike on 11 and 12 December, which was resumed shortly after its "of- ficial" end in protest over the arrest of labor leaders. The strike may continue if Kadar does not recognize worker demands. Although members of the workers' councils have been arrested, a basic unity appears to exist among the workers which is giving them renewed energy. The strike which started on 11 December came after the most. extensive regime efforts yet seen to prevent such a public demonstration of worker strength, and served as a symbol of the relative strengths of the Kadar and worker positions. The workers have made full use of classic Communist tactics of resistance and subversion-- ~..EN 111 AALL PART I . OF IMMEDIATE INTEREST Page 1 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 strikes, guerrilla warfare, cellular organizations and infiltration. Soviet Policy By trying to use the Kadar regime and its small police forces to implement a policy of total repression, the Soviet Union has demonstrated that it still hopes not to commit its troops to more than minimal police activity to restore order. It also apparently hopes to avoid a complete Soviet military dictatorship. But-- as has been the pattern for six weeks--regime repression has strengthened popular resistance and has, accordingly, increased the likelihood of greater Soviet military involve- ment in support of the weak security units of the regime. The USSR undoubtedly recognizes the urgency of finding a quick solution of its problems in Hungary. In view of deter- mined worker resistance, there appear to be only two basic courses of action open, neither of which is particularly palatable for the USSR. The first alternative--basic con- cessions--might include the restoration of Nagy--or some former minority party leader-- to the premiership and a reversal of the ban on the, politically active workers' councils. Such an alternative would involve another threat to Soviet control but might eventually achieve a return to civil and economic order. The second alternative-- complete suppression--toward which Kadar and the Soviets appear to be moving, albeit somewhat reluctantly, would in effect necessitate the es- tablishment of a Soviet military dictatorship, presumably through a reorganized puppet regime. A more adroit, tougher-minded Communist, perhaps Ferenc: Muennich, might be expected to assume control of the party from Kadar, whose failures and policies have certainly discredited him in the eyes of the people, the party and possibly Mosc as well. THE POLISH SITUATION The Gomulka regime in Poland has continued its ef- forts to win increased popular support in the face of the popu- lar unrest exemplified in the recent riots in several Polish cities and towns. It has reached agreement with the Catholic Church on outstanding differences,. is rehabilitating former Socialist leaders, and has allowed independent youth groups to organize. The regime may feel compelled to exercise some controls over the youth groups, however, to keep them from becoming involved in anti- Soviet activities. In early December, riots occurred in at least three Polish towns, the most serious apparently being those which took place in Stettin (Szczecin). The Stettin riots, which cul- minated in an attack on the Soviet consulate, were sparked by youths and illustrate the difficulties facing the regime in keeping the deep-seated popular hatred of the USSR from taking overt form. The regime's use of the army to quell the riots indicates its determina- tion to avoid giving the USSR a pretext to intervene. The stern attitude it has taken SECRET OF IMMEDIATE INTEREST Page 2 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 SECRET' CURRENT INTELLIGENCE WEEKLY SUMMARY toward the youths involved in these riots and the 18 November Bydgoszcz riots may fore- shadow a reassertion of its authority over the youth groups lest they spark large- scale demonstrations against the USSR. Youth Groups Three new youth organiza- tions were organized in recent weeks to replace the dis- credited Communist-controlled Polish Youth Union, which admitted on 14 November that it had been "incapable of action" and had "played no part in the battle for de- mocratization." Shortly after this declaration was published, a Union of Democratic Youth and a Peasant Youth Organization were set up, apparently loosely affiliated with the Democratic and United Peasant Parties respectively, and a Marxist- oriented Revolutionary Youth Union was organized on 7 December. Although the latter group proclaims it will work to implement the present policies of the party, the party may have difficulty in controlling it, since it has already declared its opposition to party control of the organi- zation, and reserves for itself the right to interpret the party line. Church-State Agreement The joint church-state commission which was set up shortly after the release of Cardinal Wyszynski announced on 7 December that agreement had been reached on principles governing future relations. The most far-reaching aspect of the agreement was the provision that religious ed- ucation could be given in state schools for children whose parents request it, and that the state would pay the cost of such a program. In addition, the state agreed to relinquish its veto over church appoint- ments, to allow priests to function as chaplains in hospitals and prisons, and to permit the church to establish several independent publica- tions. In return, the church has publicly supported the new regime and reportedly agreed that no Catholic political party will be organized. Since Gomulka's return to power, a special politburo commission has been set up to rehabilitate former Socialist leaders and take them into the Polish United Workers (Commu nist) Party (PZPR) in order to give the party wider appeal. ,Even before he was purged in 1948, Gomulka favored including most of the Socialists in the PZPR, which had been formed by merging the Socialist and Com- munist Parties. His successors, however, insisted on an ex- tensive purge of the Socialist Party before admitting the remaining pro-Communist ele- ments. The new commission has already announced that over a dozen former Socialist officials have been made members of the PZPR, and more are apparently to follow. While most of these former officials appear to have been middle-echelon figures, they in- clude former premier Edward Osobka-Morawski, who was purged in 1948 and imprisoned in 1951 in spite of his?earlier co- operation with the Communists. Even more striking was the recent statement of a Warsaw newspaper that Czeslaw Bobrowski SECRET PART I OF IMMEDIATE INTEREST Pave 3 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 would soon be named deputy chief of the newly organized planning council. Bobrowski, head of the planning commission in the early postwar years, is a right-wing 25X1 Socialist who defected in 1950 and was living in Paris at the time of this announcement. SECRET PART I OF IMMEDIATE INTEREST Page 4 of 4 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 `o-Im'. 1 1AL. CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 NOTES AND COMMENTS SUEZ PROBLEM UN secretary general Ham- marskjold is seriously concerned that Britain and France will jeopardize the entire canal clearance operation by insisting that their personnel as well as their salvage fleet at Port Said be used. Egyptian agree- ment to UN clearance opera- tions is based on the condi- tion that no British or French technicians be used other than a few to train other nationals to use the equipment. London, on the other hand, has indicated it would have to start with- drawing its equipment unless assured that its personnel, pro- tected by diplomatic immunity, could operate it. Hammarskjold plans to use six of the 40 British salvage vessels now in the area. They would supplement the 28-vessel UN salvage fleet, and would be operated by Dutch and Danish personnel, after a short train- ing period by the British. Britain has taken the position, however, that the UN must use all or none of its vessels, for the addition of only six Brit- ish vessels capable of medium or heavy lift would not be enough for quick clearance of the canal. American chief of UN salvage operations Lt. Gener- al Wheeler estimates, however, that salvage operations would be delayed only a matter of days if the British fleet is not used. Withdrawals of British and French forces from Egypt have continued, with about half of the 20,000 troops apparently now gone and the rest scheduled to leave by 18 December. There are some signs that this final date may be put off for a few days. Incidents such as the kidnaping of a British of- ficer on 11 December could pro- vide a pretext for longer delays. Britain, after recalling all major naval vessels from the eastern Mediterranean, reportedly has sent back a task force to cover the Anglo-French withdrawal from Port Said. This group, con- sisting of two carriers, one cruiser, three destroyers, and two escort vessels, would presumably also be concerned with the se- curity of the numerous salvage craft and their crews which are in the area. Of major French ves- sels, only a carrier remains. Egyptian Tactics Egypt's tactic has been to appear accommodating on de- tails in private, but in public to make withdrawal as humiliat- ing as possible for the Allies. The smuggling of arms into Port Said and the increasingly bold demostrations there are probably instigated by the Nasr regime not only to harass the British and French forces but to found a legend that Egyptian popular resistance rather than American and Soviet pressure got the invaders out of the country. W INL W-1-11 . PART II Nr1P1 Amn orwxt-krmc, Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 '-'" SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY Israel Israel has been reluctant to leave Sinai without some kind of guarantee that the peninsula would not again be- come a "base for aggression." Failing diplomatic assurances from the great powers, the Israelis apparently are writing their own warranty by tearing up roads and railway tracks and demolishing Egyptian in- stallations as they withdraw. How long this kind of guarantee will be effective is problemat- ical, but the American embassy in Tel Aviv reports that at least for the moment Israel's apprehensions over its military situation are probably at the lowest point since before the Egyptian-Soviet bloc arms deal. In line with this relaxa- tion, the active strength of the Israeli army is now esti- mated at 80,000, including paramilitary units. This is about the level at which Israel maintained its forces before the build-up for hostilities against Egypt. The short-term effects of the Sinai campaign on the Israeli economy do not now appear to be serious. Decreases in industrial production are probably only temporary, and the distribution system, dis- located by the mobilization of transport, should return to normal as vehicles are re- leased by the army. The gov- ernment apparently is making arrangements to counter the USSR's refusal to ship petroleum products by increasing imports from Western sources to meet minimum needs, Israel's long- term development program has been set back, however, by the diversion of resources to the military effort, and any possible solution to its balance-of-payments deficit has been pushed further into the future. British and French Economies The unofficial sterling exchange rate rose sharply following the International Monetary Fund's authorization on 10 December for Britain to draw an unprecedented 1,3 billion dollars. The pound sterling has thus been strengthened, at least tempo- rarily, but British officials expect Britain's trading posi- tion to be weakened during coming months. They see this resulting from rising import prices for oil and other raw materials, and the expected decline in industrial output. London now estimates that ad- ditional dollar oil will cost $445,000,000 by the end of August 1957. In France, gold and dollar reserves are down to a low working level of 1.3 billion dollars; the American embassy expects them to decline below one billion dollars by mid- 1957. Because France derives 13 percent of its industrial energy from petroleum in con- trast to only 4 percent in Britain, industrial production will be harder hit. This poses a grave threat to France's ef- fort to continue the expansion of output as one facet of the fight against. inflation. Political Situation In both Britain and France, the political tensions of the past weeks are easing. The Conservative government in SECRET' PART II NOTES AND COMMENTS Page 2 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 ~-- SECRET 'Sft--04 13 December 1956 In France, the foreign poli- cy debate scheduled for 18 Decem- ber in the National Assembly is not expected to posed a threat to ollet government. Britain successfully weathered its parliamentary debate and vote of confidence on Egyptian policy with only 15-defections from the party's normal vote-- considerably less than had been feared. Prime Minister Eden will return on 14 December from his three-week rest in Jamaica. In an apparent attempt to ease Western concern over So- viet activities in the Middle East and to avert further out- breaks of military action in that area, the USSR last week withdrew its 10 November threat to send "volunteers" to fight in Egypt. Moscow is apparently confident that it can win credit for easing tension and averting further fighting in the Near East through diplomatic and propaganda maneuvers. A TASS statement of 8 December declared the USSR's "great satisfaction that in the Arab East, the fire of war has been extinguished" and stated that the withdrawal of British, French and Israeli forces from Egypt "eliminates the question of the departure of Soviet volunteers for Egypt." The TASS statement may have been an attempt to assure the Syrians that tensions had slackened, despite a continua- tion of Moscow's propaganda campaign against alleged West- ern plans of "military aggres- sion against Syria." Syria The leftist group in Syria which has been pressing for changes in the Asali cabinet appears now to have decided that the first order of busi- ness is to investigate and bring to trial the Syrians involved in Iraqi arms-smuggling opera- tions. Previous abortive Iraqi plots have furnished an oppor- tunity to eliminate opposition elements, and the leftist group apparently intends to exploit this latest conspiracy. These tactics have the advantage of lessening the chances of right- ist countermoves while preparing the way for cabinet changes favoring the left. The contin- uation of Syria's radio and press camapign against Iraq's Prime Minister Nuri Said keeps tension high between the two countries. There have been reports from Damascus that rightist min- isters backed by Quwatli are resisting leftist pressures to change or enlarge the cabinet. The rightist ministers report- edly have agreed among them- selves to stay in the cabinet as long as possible in order to avoid yielding the field to the leftists. The pressures for the elimination of the rightists will continue, how- ever, and almost certainly in- crease as the Iraqi arms plot is unraveled, and as the threat of foreign intervention recedes with the withdrawal of British and French troops from Egypt. The Egyptian embassy in Damascus has reportedly sub- mitted a list of Egyptian- approved ministerial candidates to President Quwatli and advised him to make his selections accordingly, but an Egyptian embassy official has stated that no immediate cabinet change was contemplated. Ambassador Moose reports that the Syrian poli- ticians listed by the embassy are ineffectual or strongly anti-Western. SECRET PART II NOTES AND COMMENTS Page 3 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 The leftist group is also apparently making use of the Syrian popular resistance move- ment to intimidate the rightists. Armed "young patriots" of the resistance movement are now seen on all Damascus streets. Last week 3,200 of them, all armed with Czech small machine guns, paraded for President Quwatli. Some 80,000 to 100,- 000 Syrian youths who enlisted in the movement have completed training, 20,000 of them in Damascus alone. The movement was organized ostensibly for resistance a- gainst external aggression, but the training--street fighting tactics, the use of small arms and explosives--has been under the direction of junior army officers sympathetic. to the nationalist, pro-Egyptian poli- cies of the Arab Socialist Resurrection Party and Colonel Sarraj, head of Syrian army intelligence. Jordan meanwhile appears preparing to draw still closer to. Syria and Egypt. A shake- up'of Jordanian government personnel, involving the re- moval of some allegedly pro- British sub-cabinet officials, was begun on 12 December. At the same time, cooling relations with Iraq, as a con- sequence of its identification with British interests, cul- minated in the withdrawal of the 3,500-man Iraqi brigade group from Jordan on 10 Decem- ber. An additional factor in the removal was the unwilling ness of Iraq to place its forces in Jordan under the Arab Joint Command. Over 5,000 Syrian troops and 500 to 800 Saudi Arabian troops apparently will remain in Jordan. Syrian forces are concentrated in the north near the Syrian border, guarding key Jordan River bridges, and in the N blus area of West Jordan Ira 25X1 25X1 The intensity of anti- government feeling in Iraq has diminished over the past week, and will probably relax as the British and French withdraw from Egypt. American observers believe that, barring the pos- sibility of disaffection in the army or lack of continued sup- port by the palace, Prime Minis- ter Nuri Said will remain in control. However, the continua- tion of popular agitation a- gainst the government indicates that the period of strain is far from over. Bitterness a- gainst Britain and Nuri has been stored up and may have a delayed reaction after the pres- ent period of acute tension has passed, Damascus and Cairo, abetted by Moscow, are continuing their anti-Nuri propaganda offensive, and the Iraqi government still has to face the problem of re- opening the schools and colleges and eventually releasing .failed politicians. SECRE 7' nanm TT Nr11RG?.C 6Nn rnw ,m 'rs Page 4 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Reports from Egypt indi- cate that moves against Jews have not been as extensive as Israeli propaganda has claimed. The regime does appear to be using the present situation as an opportunity to eliminate foreign influences, especially British, French and Jewish. Cairo insists there is no anti-Jewish campaign as such and Egyptian spokesmen have pointed to Egypt's liberal treatment of its Jewish popula- tion during the past seven years. Official expulsion or- ders have been directed at British and French nationals-- as "enemy aliens"--and at spe- cific stateless Jews who have been found dangerous to Egypt's security. Egyptian officials contend that the latter cate- gory numbers only some 280 per- sons, and that probably no more than'450 expulsion cases would involve Jews. The American em- bassy calculates, however, that if dependents are included, be- tween 450 and 500 expulsion cases could mean an exodus of about 2,000 persons. The Jewish rabbinate in Egypt reportedly has received applications for resettlement outside the country from 1,500 Jews of all nationalities. These applications have arisen from various motives, including official expulsion orders, gov- ernment pressure to leave and the applicants' own desires. Voluntary applications at this time are probably relatively few, since applicants are allowed a very short period to dispose of their property and cannot take out of the country any significant sums of money-- $575 maximum, less cost of tickets, jewelry, and other goods carried with them. The Nasr regime has also moved to sequester Jewish prop- erty. As of 3 December, se- questration orders had been carried out against 539 indi- vidual Jews and 105 Jewish firms. Unemployment among the 45,000 to 50,000 Jews in Egypt is believed to be growing. In addition to economic and social pressures to drop Jews from payrolls, government officials appointed to manage sequestered businessess or firms taken over under the industrial mobiliza tion orders have in many cases either dismissed Jewish employ- ees or put them on leave with- out pay, although regime spokes- men have indicated such action does not have official approval. These moves, and the pub- licity given them outside Egypt, have led to protests in the UN and to approaches directly to Egypt. Such representations seem to have lessened the harsh- ness of implementation of the expulsion orders, and elicited statements from Nasr's cabinet denying any anti-Semitic ideol- ogy. However, the other Arabs presumably interpret the Egyp- tian moves s ecificall anti- Jewish. 25X1 SECRET PART II NOTES AND COMMENTS Page 5 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 BRITISH PLANS FOR CYPRUS Britain intends to publish about 20 December, after pro forma consultations with Greece and Turkey, its draft constitu- tion providing limited autonomy for Cyprus. While the constitu- tion would appear to meet Turkey's minimum requirements, it will probably be unacceptable to Archbishop Makarios and to Athens. Colonial Office deputy under secretary Martin told the American embassy on 10 December that the proposed constitution, which would confer extensive self-government, offers what may be the last chance for a considerable time to proceed toward a solution. Martin in- dicated that the Radcliffe re- port, as well as a plan for in- creased financial assistance to Cyprus, will probably be ap- proved and published by the government about 20 December. Implementation would not take place, however, until order had been restored on the island. The embassy believes Britain wishes to avoid modifying its plan, and will therefore probably consult Greece and Turkey only at the last minute. Britain apparent- ly, does not intend to consult Makarios at all, despite the belief of some British officials that this is necessary to ob- tain Cypriot support. The Greek prime minister has in- dicated that the Cypriots would be much more likely to accept a less desirable settle- ment backed by Makarios than a better seLtiement backed by i.The new constitution, though apparently meeting Turkey's minimum requirements, will probably be unacceptable to Greece, and Makarios will prob- ably continue to balk at any scheme retaining ultimate British control over the island. on on rnJ 1n addition to the constitutional proposals issue a statement promising a self-determination plebiscite after 10 or 15 years of internal self-govern- ment. The proposed Cypriot government would have no authority to alter the interna- tional status of the island. The constitution is prob- ably being published at this time in order to conciliate both British and international public opinion. The Cyprus question will be taken up by the UN General Assembly in about two months, and a number of powers, including the Soviet bloc and Asian-African countries, will probably support Greece. Britain, still determined to retain effective use of Cyprus as a military base, has indicated that the alternative:; of either partition or de- militarization, as suggested by some, would be. unacceptable. Londur- has stated repeatedly that the Suez crisis proves the importance of maintaining mili- tary bases on Cyprus. It now plans to hold armed forces there above the pre-Suez level of about 21,000, all available for internal rity duty. SECRET PA='T II NOTES AND COMMENTS Page 6 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET 25X1 25X1 The question of adapting the decisions-of the 20th party congress last February to devel- ents since the congress will be discussed at the cen- tral committee plenum sched- uled for this month, according to Khrushchev. Measures to improve the lot of the Soviet consumer reportedly will be included. Acknowledging that prepa- rations for the plenum were somewhat difficult. the decisions of the 20th party congress would be re- spected in their essentials, but that there was a question of "adapting them to developments which have taken place since the congress." The plenum, he said,'would be held in the second half of December and would be followed in January by a session of the Supreme Soviet which would be called to approve measures decided at the plenum. Reports from Moscow on 11 December stated that new plans for the USSR's economy would be announced at the central committee meeting. Ac- cording to these reports, the current Soviet five-year plan is to be modified to provide for increased production of consumer goods and more housing. One report said that light industry was slated to get twice as much in the way of investment in 1957 as originally planned and that additional funds would be allocated for housing up to 40 percent of the total for all construction in the coming year. Budgetary adjustments would also have to be made to reflect the economic conces- sions recently made to Poland and Rumania and probably to be extended to the other 25X1 Satellites. Supreme 2 oviet Presidium secretary Aleksandr Gorkin said on 6 December he did not "antici- pate" any important personnel changes. In reply to a fur- ther question as to whether this applied to the party as well as the government, Gorkin answered in the af- firmative, saying "he did not know" of any importanti.changes pending in this field either. in Kronstadt a Soviet su mar ne equipped with a cylindrical tank approximately 22 feet long and 8 feet in diameter, and possibly an in- clined ramp, both located aft of'.the conning tower., This arrangement is similar to one used by missile-launching submarines of the US navy. The submarine probably was a "W-cross" long-range boat. The USER is believed to have had an operational capability since 1955 of launching subsonic, cruise-type guided missiles of 500-nautical-mile range from submarines. On 18 November, American naval aircraft. sighted an un- identified: submarine in the, Sea of Japan which had a sep- arate structure aft of the con- ning tower described as a tank similar to the one reported on the submarine in Kronstadt. A similar submarine was also SECRET PART II NOTES AND COMMENTS ' Pa;?e 7 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 ``""'' SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 ,Qy1 `W-CLASS'LURMARINE WITH TANK AND LAUNCING RAMP =Emnno 61211 4 reportedly sighted in the Northern Fleet area.*in July. The USSR has constructed over 200 long-range submarines of the "W-class" since 1950. Modification of a number of "W-class" units to carry mis- siles externally would only be an interim measure until the USSR develops a submarine which can carry larger mis- siles in greater numbers within the pressure hull. USSR EASES INTERFERENCE WITH Allied trains and truck convoys are running between West Germany and Berlin with- out further Soviet attempts to board or inspect them, although the USSR still insists on documentation checks ob- jected to by the Allies. The tension was eased when Soviet authorities agreed not to insist on searching. military truck convoys after an Ameri- can convoy had turned back on 5 December to avoid such a search. Colonel Kotsiuba, the Soviet commander in Berlin, agreed on 6 December there would be no inspection of trucks, although he insisted that such inspection implied no interference with the con- voys. While some points of disagreement remain over what documentation is needed, several military convoys have since made the trip without difficulty. The use' of Soviet long- range submarines to carry guided missiles was forecast by party leader Khrushchev last spring when he said that a submarine equipped with guided missiles is. the "most suitable naval weapon," and that its development..would be emphasized by the Soviet navy. Khrushchev added that possession of this weapon would give the USSR the capability of making "defensive" attacks on the United States. (Concurred in ALLIED ACCESS TO BERLIN The USSR continues to in- sist, over 'Allied objections, on checking identity documents of passengers on Allied mili- tary trains as well as Russian translations of their travel . orders. Despite hints that they might board trains in the future, Soviet authorities have 'not insisted on this prerogative. The USSR probably believes it has already achieved` its purpose of warning the Allies against stirring up trouble in East Germany by emphasizing its retaliatory capabilities, but may continue the stricter traffic controls in order to cause continued uneasiness in the West. It evidently does not intend at present to--effect a partial Berlin blockade by instituting those inspection measures which the Allies have flatly refused to accept. SECRET PART II NOTES AND COMMENTS Page 8 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 BULGARIA The Bulgarian regime is pursuing a two-,pronged policy of severe police repression and economic concessions to deal with the popular unrest and factionalism within the party and groups closely associated with it. There have been re- ports that workers have demon- strated in the provinces, stu- dents have advocated less political indoctrination, and youthful "hooligan" elements have engaged in demonstrations against the regime. Approximately one third of the central committee mem- bers of the Bulgarian party are reportedly opposed to the present leadership. There is no evidence,-however, that dis- sident elements are united. Furthermore, unlike the situa- tion in Poland and Hungary last summer, the dissidents are not in control of any organization which can give expression to their various views. The regime has arrested an estimated 1,200 suspected unreliables and reopened at least one concentration camp. most of the rehabilitated Kostovites, purged for Titoism following Yugoslavia's break with the Cominform, have been rearrested. Two army generals have report- edly been demoted and 200 of- ficers pust d for pro-Titoist views. 25X1 depor- 25X1 -tations to the provinces of "unreliable" elements, includ- ing peasants who refused to join collective farms. By way of economic conces- sions, the government has an- nounced increases in family al- lowances and pensions, and within the last week has abol- ished compulsory delivery of some agricultural products and promised wage increases aver- aging 15 percent beginning in January. The border with Yugoslavia reportedly is now floodlighted at night and has been restrung with barbed wire, only recently removed. Persistent rumors of the introduction of Soviet forces into Bulgaria have been conclu- sively disproved. Tracklaying on the Yingtan- Amoy railroad was completed to Amoy station on 9 December. The 450-mile line was completed roughly 600 days after construc- tion began, about one year ahead of the original schedule. A spur to the POL dump at Sunghsu, where a marshaling yard will be located, is presumably nearing completion. Roadbed work on the major branch line to Mawei, near 1'nnnilnW_ is also under way. engineering divisions now in 25X1 Fukien are transferred to work on this branch, it can probably be completed during the first half of 1957. The Yingtan-Amoy railroad will greatly enhance the logis- tic capabilities of the Chinese Communists in the coastal area. It is estimated that the line, after a brief shakedown period of perhaps three to six months, will be able to handle 4,000- 5,000 tons of cargo each way SECRET tir TT NOTES AND COMMENTS Page 9 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENC1 WEEKLY SUMMARY YINGTAN - AMOY RAILROAD Railroad, operable -----Railroad under construction 0 Airfield Shihma Haicheng auseways '_Koochi per day. Only about 2,000- 3,500 tons per day can now be moved into the coastal areas via existing highways. The added tonnage would be suffi- cient to support, at least initially,: offensive operations by seven divisions of jet fighters and a ground force of 11 armies and supporting troops. The new line also enhances the potential value of Amoy as a commercial port, although mer- chant vessels using the harbor would be exposed to Chinese Na- tionalist artillery on Quemoy and Little Quemoy Islands. A marshaling yard is located at Amoy station, from which a spur extends toward, but does not yet reach, the dock area itself. The port of Amoy has been largely inactive since the Chi- nese Communists came to power. It formerly could handle some 2,000-3,000 tons of cargo per 20-hour day. No heavy cargo- working facilities have been available. Aside from the con- struction of additional ware- housing prior to 1955, little work appears to have been done to ready ant vos- sels. (Pre- 25X1 pared by OR1t Chou En-lai ended his of- ficial tour of India on 9 Decem- ber in Calcutta, where he talked to newsmen for nearly two hours. His remarks emphasized Peiping's desire for improved relations with the United States and were clearly slanted to support pos- sible efforts by Nehru to medi- ate Sino-American differences during the Indian leader's Washington visit' Chou avoided giving a direct answer when a reporter asked if Nehru has been re- quested to carry a message to the American government. He implied, however, that if Nehru advanced proposals for improv- ing Sino-American relations, they would be endorsed by Peiping. "We know Nehru has more under- standing of the world situation than we do," Chou said, SECRET Chico ou ~?Chienou Wangtai Napping p; L1` :iI NOTES AND CC?i,,;NTS Page 10 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 SECRET 13 December 1956 "therefore, any suggestion we could make could not be more than what he has in mind." The stand taken by New Delhi on major issues between Communist China and the United States--the question of Taiwan, recognition of the Peiping re- gime and its seating in the UN-- has been so close to Peiping's position that the Chinese could confidently hint at acceptance of an Indian solution to these questions. When queried by reporters about Americans held prisoner in Communist China, Chou said they might be freed prior to expiration of their sentences if their behavior was "good." This is nothing more than a reiteration of previous Commu- nist statements, however, and in the absence of American con- cessions or strong pressure from Nehru, the men are unlike- ly to be granted an early re- lease. Chou asserted that his government had been doing its best to improve relations with the United States, and reviewed earlier proposals by Peiping for a Sino-American meeting at the foreign minister level, re- moval of the trade "embargo," and cultural interchange as means of reducing tensions. He noted with regret that Washington had not responded favorably to these overtures and indicated that the next move was up to the United States. On his arrival in Rangoon on 10 December, Chou expressed hope that his visit there would help solve the border dispute between Burma and Communist China. He said he was confident the controversy could be set- tled on the basis of "peaceful coexistence." The Burmese reception, however, has been rather restrained and there are signs Chou may run into trouble in his effort to get agreement on the terms of a final border settlement.. the Burmese have developed reservations about the tentative settle- ment worked out in Peiping last October between Chou .and former premier Nu in- volving the transfer of three Kachin State villages to China in exchange for the withdrawal of Communist troops from the Wa States. These. reservations stem from the strong opposition of local Kachin leaders to ceding any territory to Peiping, and possibly from second thoughts among Rangoon leaders about giv- ing up control over an all- weather pass between China and Kachin State. The Communist bloc's eco- nomic penetration of Cambodia is increasing. A 16-man Soviet economic mission recently ar- rived in Phnom Penh, and addi- tional members have joined the permanent Chinese Communist economic mission already there. The projected Soviet aid pro- gram will be "unconditional," as in the case of Peiping's as- sistance to Cambodia, in order to derive maximum impact and good will. On arriving in Phnom Penh on 4 December, the leader of the Soviet mission stated that the mission's goal was to draw up "practical measures" to re- inforce economic and cultural bonds between the USSR and Cam- bodia. It was announced that the USSR, respecting Cambodian sovereignty, would furnish aid without conditions. The size and composition of the Soviet mission, which reportedly is to. remain two or three months, suggest that Moscow will undertake a com- prehensive aid program. The mission includes specialists in SECRET PART II NOTES AND COMMENTS Page 11 of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 planning, economic organiza- tion, foreign trade, industry, agriculture, irrigation, public health, education, culture and construction. These are the fields in which Sihanouk is most interested in obtaining assistance to implement his ambitious two-year economic development program. Soviet aid along these lines would also have the greatest grass- roots appeal. Meanwhile, the $22,400,- 000 Chinese Communist aid pro- gram in Cambodia is getting under way. The 11-man mission from Peiping which arrived in September to administer the program has been augmented by eight technicians who reported- ly will supervise the construc- tion of a textile mill, cement plant, paper factory and ply- wood factory. The Chinese Communists have also offered Laotian premier Souvanna Phouma asked his cabinet on 10 December to accept two Pathet Lao officials--one of whom would be Pathet chief Sou- phannouvong--in the government. in return the Pathet Lao move- ment would be formally "dis- solved," Souphannouvong would make a public declaration that he is not a Communist, and would provide written guarantees on the restoration of royal gov- ernment authority in the two northern provinces and integra- tion of Pathet forces in the royal army. The cabinet reportedly agreed to submit Souvanna's proposal to the national as- sembly, and presumably will ac- cept its verdict. The American embassy in Vientiane reports that sentiment for a settlement medicine and equipment for a Buddhist hospital and a Chinese hospital in Phnom Penh. Peiping has also expressed willingness to improve Cambodian broadcast- ing facilities. The Communist bloc aid programs seem likely to over- lap those being undertaken by the West, particularly in the absence of any effective mechanism in the Cambodian government to co-ordinate its diverse aid requests. Recently, however, the Cambodian minister of planning assured American of- ficials there would be no mixing of Communist and American aid on individual projects. The Commu- nists, however, apparently hope to gain greater impact with their programs by avoiding "administrative red tape" which Cambodians allege sur- round Western aid programs. of the Pathet problem is strong, and it is unlikely many deputies will openly vote against Sou- vanna, even at the risk of losing American assistance. Souvanna has reportedly re-. called Vice Premier Katay from the UN General Assembly to win his support for the proposals. Katay is expected to arrive on 15 December and the issue will probably be put to a vote in. the assembly shortly thereafter.. Souvanna's move will in- evitably alter the circumstances in'which the Pathet Lao negoti- ations have been conducted to date. With Souphannouvong in the cabinet, a final settlement is likely to assume the char- acterists of a "family af- fair" with the country's inter- ests vis-a-vis the Pathets ..SECRET PART II NOTES AND COMMENTS Page 12 of '14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 ,,.,,, SECRET CURRENT INTELLIGENCE WEEKLY SUMMARI 13 December 1956 subordinated to national reuni- fication. Souphannouvong's offer to "dissolve" the Pathet Lao is nothing more than an exercise in semantics, as Pathet hard-core elements would un- doubtedly continue to operate in clandestine cells or in front organizations. Despite the sweeping guarantees on the two provinces and integration of Pathet forces, important "details "would remain to be negotiated, while the govern- ment would have sharply reduced its bargaining power. Moreover, there is little reason to believe that Viet Minh influence over the Pathets will not re- main strong. Rejection by the assembly would result in the fall of the Souvanna Phouma government. It would indicate a lack of confi- dence in his policy of "faith" in the Pathet Lao. as well as a disinclination to risk losing Western support. Such circum- stances would probably hasten the return of Prince Petsarath from self-exile in Thailand to form ? arian overn- ment. 25X1 HAITI The resignation of Haitian ruler Paul Magloire on 12 De- cember in favor of Joseph Nemours Pierre-Louis, president of the Court of Appeals, may ease the extremely tense situa- tion in the country. Pierre- Louis would have been Magloire's legal successor. prior .to the "palace revolution" of 6 De- cember, and his assumption of power may lead to a return to constitutional order. Politi- cal conditions, however, are likely to remain unsettled for some time.. Unrest increased sharply following the palace revolt by .which the army returned Presi- dent..Magloire to power shortly after. his first resignation on 6 December. Magloire, who'had resigned allegedly to satisfy opposition claims that his legal term ended on that day, was authorized "t.o take ex- ceptional measures" to restore order. Constitutional rights were suspended, the legislature dissolved,. and many opposition- ists arrested. A successful general strike protesting these acts of the impromptu regime was largely responsible for the latest change in governement. The shifts in government capped a period of heightened political ferment attending the preparations for senatorial and presidential elections which were scheduled for early 1957. Magloire explained to American MAGLO{ RE ambassador Davis on 5 December that his initial decision to resign was influenced by the serious economic situation and "irresponsible" acts of the opposition. Growing opposition strength, however, probably was a leading factor.. The adminis- tration's presidential candidate SECRET PART II NOTES AND COMMENTS Page 13. of 14+ Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 0 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21: CIA-RDP79-00927AO01000120001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 had not attracted as much sup- port as had been anticipated. The continuing deteriora- tion of Haiti's economic situa- tion has also contributed to po- litical instability. Directors of the National Bank and re- sponsible American businessmen have informed American of- ficials that the government-- heavily in debt to industry and overdrawn at the bank--is virtually insolvent, and may be unable to meet its January payroll. The National Bank, with its reserves already de- pleted as a result of financing government deficits, is ex- periencing a run on savings, and fears a run on its com- mercial department. At the same time, a poor yield is in prospect fo the country's chief cash crop, coffee. While it appears that the army, a key factor in the situa- tion, has supported the latest transition in government, dis- 25X1 agreement and disaffection among its members have been re- ported previously. SECRET 7,TnTrr Ann rrT,,,7T.Tr-.NTq Page 14 Of 14 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 PART III PATTERNS AND PERSPECTIVES NEHRU'S CURRENT INTERESTS Prime Minister Nehru, in his self-appointed role as world peacemaker, will probably be concerned principally with international problems when he comes to the United States on 16 December. These are likely to include the Middle East, the position of Communist China, the danger of a renewed cold war) Hungary, Pakistan, nuclear tests and disarmament, and India's relations with the United States. At the same time, Nehru faces a crucial national election at home and within the next few years Nehru must somehow obtain about two billion dollars worth of foreign assistance in order to suc- ceed in the am- bitious economic program to which he has pledged his party and his own pres- tige (see Weekly Part III, 6 Dec 1956). Although he is probably not yet prepared to seek this financial aid by directly requesting it from either the United States or the USSR, he is almost certain- ly prepared to co-operate in any arrangement under which he might be able to obtain it "without strings." Nehru is probably also con- cerned about intensified compe- tition between the USSR and the United States to fill the "power vacuum" in the Middle East. Since he believes world peace is essential to India's progress, his internal concerns are prob- ably still subordinate in his thiDkiiig to :i:bterriat .Pb a1. problems. He may feel that relations with the United States are really important only in the context of his world preoccupa- tions. This outlook reflects the ambivalent character of a proudly "democratic" leader whose country's actions more nearly mirror his own personal- ity than do those of many dictatorships. Middle East Crisis Since nation- alization of the Suez Canal on 26 July, Nehru's primary foreign policy interest has been the Mid- dle East. More than 60 percent of India's total impotts go through the Suez Canal and its closure endangers India's economy. This is reflected in Nehru's claim on 8 December that the cost of India's Second Five-Year Plan has probably risen about one billion dollars-- partially as a result of the canal crisis. Until now, however, Nehru has subordinated his concern for the internal repercussions of the Egyptian situation to his fear that events in the Middle East might provoke a world conflict. India has led the demand for the withdrawal of British, French, and Israeli troops, and Nehru also report- edly warned Soviet premier Bul- ganin that any intervention by the USSR would be a "crime against humanity." Nehru is probably still concerned over the need for a relaxation of tension in Syria and Iraq and the prevention of ENTU\ PATTERNS AND PERSPECTIVES Page 1 of 13 DART 77T Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET 13 December 1956 the expansion of Soviet or American influence in the Mid- dle East. As the likelihood of war recedes, however, he will probably become more in- terested in reopening the canal and repairing the economic C_ damage resulting from its clo- sure. Communist China Nehru's recent talks with Chou En-lai, and the fact that the two leaders are to meet again after Nehru's return from the United States, make it quite likely he will dis- cuss in Washington Communist China's relations with the United States and its member- ship in the UN. Chou gave his blessing for such a discussion in Calcutta on 9 December. Nehru may also bring up recent rumors that Chiang Kai- shek's son and other National- ists have been negotiating with Peiping for a settlement. These reports are probably part of a Communist psychologi- cal warfare effort to increase discontent on Taiwan. Nehru, however, probably feels that a negotiated settlement would provide a real solution to the problem of "the two Chinas," and may urge the United States to support it. Nehru is unlikely to be dismayed by any appearance of being Chou's "messenger boy." He will probably argue that the United States has an obli- gation to world peace to accept China as a respectable great power. He is unlikely to be deterred by the thought that this suggestion might not im- prove Indo-American relations. The Dalai Lama's presence in India, the Tibetan leader's opposition to the Chinese re- gime, and the possibility he may seek asylum in India, may also be of concern to Nehru. The Soviet Union Moscow has tried to spark to greater diplomatic ini- tiative, apparently believing that India's strong stand against colonialism and military blocs would serve Soviet interests. India's reaction to this has been fairly cool, especially in regard to Hungary. Moscow has avoided taking issue with Nehru by ignoring the lack of response, although the Soviet press has criticized individual Indian reactions. Nehru has continually. re (erred to the lack of "facts" available on events in Hungary. He probably now has a fair amount of firsthand reporting .from Hungary, having sent two Indian envoys to Budapest. How- ever, he is probably still eager for further factual clarifica- tion of occurrences in Hungary, and his position on Hungary is still subject to change. He has been shaken by So- viet oppression in Hungary, but he probably remains reluctant to accept it as more than an aberration in the new Soviet policy--one which may have been partially justified by the ex- cesses of the Hungarian inde- pendence forces. To do so would b6"ta admit error in his belief in a "liberalized" So- viet Union as a real force for peace. SECRET PART III PATTERNS AND PERS:! ECTIVES Page 2 o'f 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 %NNW SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 Nehru's dislike of mili- tary alliances--which he be- lieves are evil and aggressive in nature regardless of the motives of their members--is intensified by his hatred and fear of Pakistan as the one potential challenger to India's security. In his relations with Pakistan, Nehru abandons all his broad theories on the dynamics of world peace and reacts from a nationalistic outlook. New Delhi is now mounting a propaganda campaign charging Pakistan with intending to take military action in Kashmir. While the Indian campaigns against Pakistan both at home and abroad are probably pri- marily a propaganda build-up for Nehru's visit to the United States and Pakistan's presen- tation of the Kashmir issue to the United Nations in January, Nehru may also suspect that SOVIET POLICY ON "DIFFERENT ROADS Contrary to speculation about a split within the Soviet ruling group over Satellite..policy.,. none of the Soviet leaders has favored letting the Eastern European Satellites freely seek their own "different roads to social- ism" in the Yugoslav manner. In crucial policy debates in 1955, Khrushchev and Molotov sharply disagreed over the wisdom of Soviet reconcilia- tion with Yugoslavia and the consequences in the Satellites of thus implicitly commending Titoism. There were also disputes over the degree of the United States is actually attempting to use Pakistan to create a new alignment in the Middle East. He will probably continue to look on the Bagh- dad pact and American military and political support of Paki- stan as threats to peace equal to, if not greater than, Soviet suppression in central Europe and Chinese Communist encroach- ments in the Far East. Nehru comes to the United States at a time when he and other Asian leaders have re- cently expressed deep respect for the United States, particu- larly the leadership of Presi- dent Eisenhower. Nehru is apt to be sympathetic and co-opera- tive in areas in which Indo American collaboration is readily possible. However, his belief in the peaceful in- tentions of Communist China and the USSR will probably re- main unchanged. TO SOCIALISM" IN THE SATELLITES "liberalization" of Soviet rule best calculated to satisfy national sentiment in Eastern Europe and ensure Satellite loyalty to Communism and the Soviet Union. Nevertheless, all the So- viet leaders agreed and still appear to agree that preserva- tion of the unity of the Commu- nist world is a prerequisite to development of each socialist, country's specific national peculiarities. Since the Poznan riots of June 1956, Soviet leaders appear to have been firmly united on the need to tighten control over SECRET 25X1 25X1 PART III PATTERNS AND PERSPECTIVES Page 3 of 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT. INTELLIGENCE WEEKLY SUGARY 13 December , 1.956 the Satellites and check a drift toward demanding real independ- ence. of the USSR. July 1955 Plenum Debate 25X1 25X1 a the July 1955 central commit ee plenum which censured Molotov for his opposition to rapprochement with Tito, the clash of views between Molotov and the Khrushchev-led majority, which reportedly included.Bul- ganin, Mikoyan, Kaganovich, Suslov and Shepilov, brought into bold relief the differences in approach on how to deal with the problem of Satellite na- tionalism as well as the broad agreement reached on the question of Titoism in the Satellites. Khrushchev argued that the failure to assess properly the problem of nationalism in Soviet theory and practice was the root cause of many of the USSR's setbacks in relations with the Satellites. He at- tributed the break with Tito to Stalin's dictatorial han dli.ng of the problem of Yugoslav nationalism, and warned against the use of such tactics in dealing with the Satellites. In strong.,,.support of Khru- shchev's position, the other Soviet leaders opposing Molo- tov--Bulganin, Mikoyan and Kag- anovich in.particular--pointed to the many past instances of tactlessness, brutality and discrimination in Soviet .economt is and political relations with the Satellites. Despite the far-reaching criticism of past policy by Khrushchev and his supporters, however--the main purpose of which might have been to dis- credit Molotov--the resolution adopted on the subject merely directed Soviet officials to observe more courtesy toward the Satellites. Molotov held that, apart from minor mistakes in handling the Yugoslav affair, the strong Soviet stand against Tito in 1948 had been necessary to re- tain the integrity of the So- viet position in Eastern Europe. He reminded the plenum that Poland--a country more important than Yugoslavia in terms of its resources and Soviet secu- rity interests and possessing its own "rightist deviation" in the person of Gomulka--might have been lost if the USSR had not dealt. firmly with..'Tito. Molotov warned against the international repercussions of implied Soviet toleration of Tito's ideological heresies, charging that the significance of such a step would not be lost on the Satellite regimes. Although Molotov admitted that Soviet tactics, including those of his ministry, had not always been proper, he implied that threats and blackmail were justifiable insofar as they served to maintain Soviet control. Opposition to Titoism All the Soviet leaders agreed that the development of Titoism would not be?tol- erated in the Satellites. Both at the plenum and in his speech against Stalin at the 20th congress, Khrushchev re- affirmed the validity of the 1948 Cominform charges of "national deviationism" against Tito, charges which have never been retracted by the Soviet leaders. The secret minutes of the July plenum were circulat- ed t9 the. Satellite leaders,. in the fall to warn against attempts to emulate Tito. The plenum adopted a secret resolu- tion, the contents of which were not released until 23 November when Pravda replied to Tito's Pula speech, declaring that preservation of the unity of the Communist world is a pre- requisite to development of each socialist country's specific national peculiarities. In all their doctrinal pronouncements, the Soviet SECRET PART III PATTERNS AND PERSPECTIVES Page 4 of 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT. INTELLIGENCE WEEKLY, SUMMARY leaders have carefully dis- tinguished between the "roads" to socialism and the "forms of transition" to socialism. They have admitted the pos- sibility of Satellite dif- ferences from the Soviet pro- totype in the "forms," but have avoided mention of the possibility of differences in the "roads," except in the case of Yugoslavia. The plenum debate indicated that the attitudes of the Khru- shchev group-were generally in line with Molotov's own policy except in its estimate of the risks involved if the Satel- lites entered into closer relations with Tito. The Khrushchev group evidently felt that Satellite grievances could be eliminated and Soviet prestige enhanced by adoption of more flexible, milder and less discriminatory policies and by replacing detailed con- -trol--through joint-stock com- panies and Soviet secret po- lice and "advisers" at all levels--with a less irksome and less costly--but in their opinion by no means less ef- ficient--control through party, military,; and economic ties at the top. What the Soviet leaders opposing Molotov did not fore- see was that the general re- laxation of Stalinist police terror and the explosion of the Stalin.r.1myth would set into motion forces within the Satel- lites pressing for a rapid break with the Stalin era and a greater voice in the direc- tion of their national destiny. Soviet failure to react to Polish developments until after the Poznan riots and Soviet vacillation last summer in deposing the discredited Rakosi in Hungary clearly in- dicate that the Soviet leaders either failed to appreciate in time the issues and forces in dispute or lacked a consistent policy for coping with the rapidly changing situation. '. Poznan:.,.Repercussions Following the Poznan riots, opinion within the top Soviet command swung sharply toward the alarmist outlook of Molotov. Authoritative Soviet pronounce- ments in June and July re- introduced the theme of "pro- letarian internationalism," the old Stalinist formula for Communist unity under Soviet hegemony. In rapid succession from July through November the top Soviet leaders--Khrushchev in Moscow and Sverdlovsk, Bulganin and Zhu4ov in Warsaw, Mikoyan in Peiping and Suslov in Moscow--stressed Communist unity and paid only lip service to the "different roads to social- ism" doctrine. Subsequent Soviet moves-- the 3 September circular letter to Satellite leaders which warned them against Titoism, the failure of Khrushchev and Tito to agree at Brioni and Yalta, the blunt pressure brought to bear on Poland, and the military intervention in Hungary--confirmed that the Soviet leaders had closed ranks in their estimatecof the threat of Titoism in the Satel- lites. The belated admission on 30 October of past errors in Soviet-Satellite relations and the concessions granted to the Poles indicated reaction to events rather than any exercise of Soviet initiative. Soviet setbacks in Poland and Hungary may well have led to recriminations within the Soviet leadership over respon- sibility for the consequences of rapprochement with Tito and endorsement of the "dif- ferent roads to socialism" doctrine. Whatever their past disagreements as to the impact of this on the Satel- lites, they apparently now have an overriding, interest in maintaining their unity in the face of the threat to the whole structure of Soviet power in Eastern Europe. SECRET PART III PATTERNS AND PERSPECTIVES Page 5 of 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Iq Next 1 Page(s) In Document Denied Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY DISARMAMENT AND ATOMIC ENERGY QUESTIONS IN THE 11TH UN GENERAL ASSEMBLY The UN General Assembly's discussions on disarmament are likely to result in a resolution for some form of UN control over nuclear testing because of the growing apprehension over the effects of increased radiation. To offset majority support for a complete ban on testing, which India and the USSR will probably introduce, Norway and Canada have already put forth proposals for limiting and reg- istering tests. Nuclear Tests The establishment last year of a UN committee to study and report on radiation effects has not appreciably satisfied demands for some control over testing. In fact, the publica- tion of the committee's report may increase the widespread ap- prehension over excessive ra- diation. Since 1954 India has re- peatedly demanded that nuclear SECRET PART III PATTERNS AND PERSPECTIVES Page 8 of 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY tests be banned and has presented various proposals to that ef - f ect to several UN bodies. Prime Minister Nehru is expected to discuss the question of halting nuclear tests during his visit to the United States, and he may also use the UN forum to plead for a ban on tests. In addition, the Indian UN delegate will probably re- fer during the disarmament de- bate to the likelihood of test- ing in the Antarctic region. India,. had proposed in August that the Antarctica question be discussed at this assembly but withdrew the item pri- marily because of Latin American objections. On 17 November, the same date on which it announced another successful nuclear test, Moscow issued a new dis- armament statement again call- ing for an immediate ban on nuclear tests. Its proposals again made no provision for adequate inspection or controls over compliance with the ban. The USSR will most likely en- courage the introduction of any proposals for banning tests and may put forth a draft reso- lution calling for such a ban during the disarmament debate. The Norwegian foreign minister, in his 27;November policy speech before the UN, called for advance registra- tion with the UN of any "weap- ons tests expected to cause measurable, world-wide radio- active fallout." He had pre- viously told the American em- bassy that the pressure of public opinion regarding the high increase of. radioactivity made it essential for his gov- ernment to raise the issue in this session. The Norwegian public has become aroused over reports that radioactive fall- out measurements in Norway in- creased tenfold in September. Canada has proposed that the nuclear powers agree not to increase the level of test- ing over that of last year and has suggested that these powers set a voluntary limit on the number of tests. A Canadian delegate told Ambassador Lodge on 5 December that his govern- ment's proposal was designed primarily as a "trial balloon" to forestall proposals for a complete ban on testing. He added, however, that Ottawa was seriously disturbed by reports of high concentrations of strontium 90 in British Colum- bia and has filed the reports with the UN radiation committee. The growing 'fears of various UN members about ex- cessive radiation has been re- peatedly reported by Ambassador Lodge. General Disarmament Negotiations for a general disarmament agreement are likely to be referred by the General Assembly to the disarmament subcommittee, composed of the Big Four and Canada. This subcommittee, which has met twice a year since its estab- lishment in April 1954, has made no substantial progress toward an agreement. UN members are generally agreed, however, that such negatiations..~hould':ta:ke place among the powers princi- pally concerned, and will prob- ably endorse further subcommit- tee talks. Soviet delegate Kuznetsov told Ambassador Lodge on 27 November the USSR wanted to do "everything possible" to reach some agreement on disarmament, which he described as one of the most important problems before the UN. At some point in the debate, the USSR will probably direct the assembly's attention to its disarmament statement of 17 November in an attempt to get UN endorsement for its seven-point plan, which was SECRET PART III PATTERNS AND PERSPECTIVES Page 9 of 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 primarily a redraft of previous Soviet disarmament proposals rejected by the UN. in past ses- sions. Its only new feature was the expression of Moscow's readiness to "examine" the question of using aerial photog- raphy for inspection in Europe for 500 miles on each side of the line between Soviet and Western. forces--an. area involv- ing almost no 'S'ov`iet ter'ritory but including much of Western Europe.. Atomic Energy Agency The recent establishment of the International Atomic Energy Agency, which derives from President Eisenhower's proposals of December 1953, has been hailed by most UN members as a step toward the eventual use of atomic energy for peaceful purposes alone. The statute has been signed by 72 countries since it was opened for signature on 26 October; the agency will become CHINESE COMMUNIST "PEOPLE'S DIPLOMACY" The statement by Liu Shao- chi before the recent eighth congress of the Chinese Commu- nist Party that "our friends are increasing daily...our doors are open to all" reflects Peiping's confidence in the success of what the Chinese call "people's diplomacy.. This is a many-faceted public relations effort designed to sell Communist China abroad as an honest, cultured, industrious and peaceful member of the community of nations. Peiping's emphasis on this program has increased steadily during the past two years and is still growing. In a recent article, the Chinese Communists boasted that last year more than 10,000 people had taken part in exchanges which took Chinese delegations to 33 countries and gave nearly 5,000 visitors from 63 nations an opportunity to see the "new China" at first hand. Chou En- lai has predicted that the num- ber will be substantially in- creased this year. SECRET operative when 18 of these have ratified the statute. The agency will have the authority to engage in research and development on the peaceful uses of atomic energy and will function as an atomic "pool," with a: system of safeguards to enforce some controls over the use and disposition of nuclear materials allocated by it to .recipient members. Although the actual rela- tionship of the agency to the United Nations is subject to agreement, the 11th General Assembly will probably recom- mend that the relationship be similar to that of the UN specialized agencies. This would involve yearly reports to the UN on the work of the agency, participation in the UN technical assistance pro- grams, and general co-ordina- tion with the UN, particularly on such political matters as memberships. on- 25X1 curred in by PART III PATTERNS AND PERSPECTIVES Page 10 of 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 SECRET CURRENT INTELLIGENCE . WEEKLY SUMMARY 13 December 1956 The campaign.-for wider in- ternational contacts functions at many levels of sophistica- tion and interest. People's diplomacy has "something for everybody"--the intellectual, the artist, the humanitarian, the religious enthusiast, the businessman and the tourist. The most spectacular appeal for international good fellow- ship has been made by itinerant groups of Chinese entertainers which:have toured Europe, the Middle East and Latin America during the past 12 months. Avoiding direct govern- ment sponsorship, these-mer- chants of good will work to achieve one of Peiping's main policy objectives by a care- fully conceived and executed campaign to build people-to- people rapport which can be nurtured into popular pressure for official-.relations with Peiping and alignment with Chinese objectives. In Afghanistan, for ex- ample, the Chinese contribution to the country's recent month- long independence celebration eclipsed both the American-and Soviet endeavors in popular appeal and won. resounding ac- claim in the local press. An Afghan audience was enthralled with dancing girls in a per- formance Western observers com- pared "to the best of Broadway." But the performance of Peiping's ensemble was not confined to the stage; for four weeks Chinese dancers entertained and were entertained by Afghan officials, gave benefits, pre- sented gifts, and shook hands with everyone. By the end of this time, there was little doubt in Kabul diplomatic cir- cles that Peiping had succeeded in winning many friends in Afghanistan. The display was typical of Peiping's elaborate program to convince the world of its sincerity in "peaceful co- existence and international exchanges." Ilanthawaddy (Rangoon) "THE CHINESE CULTURAL MISSION IS COMING" Entertainment for the masses is arranged by the Chinese People's Association for Cul- tural Relations with Foreign Countries. At the merest sug- gestion of an invitation, the association is prepared to dispatch a road show equipped to perform classic Chinese opera, folk dances, jugglery, or popu- lar songs in any language. An operatic team is now touring Australia and another has just completed a long run in Latin America. Other shows have been presented in the Middle East, Africa, and Southeast Asia, and one was given for Queen Elizabeth in a command performance. Each show is preceded by an advance publicity team, and a press agent is assigned to the unit. Although less spectacular than the cultural delegations, Chinese trade exhibits are be- coming more frequent as indus- trial capabilities increase. Peiping has taken part in nearly all the major trade fairs held during the past year. Peiping is also busy cul- tivating special interest SECRET A BURMESE VIEW PART III PATTERNS AND PERSPECTIVES Pace 11 of iR Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927A001000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY rWL fA,RT 13 December 1956 groups. Specific targets are professional, intellectual, business or religious repre- sentatives whose opinions of China can be favorably shaped and whose voice in domestic affairs in their coun~tries will not be ignored. The new "open door" to China affords selected delegations and indi- viduals the opportunity of an expense-paid guided tour of Communist China complete with hearty handshake by'Chou En- lai. Groups of Chinese specialists are also continual- ly junketing to negotiate agree- ments, attend conferences, and spread news of Chinese progress and desire to co-operate in whatever field may bepertinent. Available figures show consistent disregard for the expense involved in promoting people's diplomacy. In Kabul, a good part of the Chinese trade exhibit was presented to influential Afghans at the conclusion of the fair. The cultural troupes performing in the Middle East and Japan donated proceeds . to. local charities. The Chinese have been anything but stingy in Number of visitors from country to Communist China t4,760 from 63 countries) 25X1 = Number of Chinese Communist visitors to country (5,833 to 33 countries) Iceland FV1 Gtrm t Motherlands United Kingdom Switzerland France Spain Portugal Italy Austria subsidizing visiting foreigners. One Mexican journalist not only had his round-trip fare paid by Peiping, but was offered a comfortable stipend during, his stay in exchange for suitable articles on the glories of "new China." Intrabloc travel accounted for a good percentage of the reciprocal visits during 1955, but the number of contacts be- tween China and the non-Commu- nist world has been signifi- cant. Many of the countries whose nationals visited or were visited by Chinese Commu- nists do not recognize the Peiping government. With a more aggressive "people's diplomacy"moving into new territory, the number and fre- quency of these exchanges probably have increased in 1956. Two of the areas now being exploited are Latin America and Australia. An 89-member operatic troupe has just toured Chile, Brazil, Argentina and Uruguay, indi- cating Peiping's increasing interest in the westerb, hemi- sphere. Australia is now host a Tunisia Iraq C-1. 30 a East Germany Poland Czechoslovakia Hungary Yugoslavia Rumania Bulgaria K11. Egypt r 41 Sudan Saudi Arabia Jordan Israel r r Madagascar Chinese Communist Contacts with Other Countries - 1955 t SECRET a II& Laos 79 ? Australia a PART III PATTERNS AND PERSPECTIVES Page 12 of 13 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 Declassified in Part - Sanitized Copy Approved for Release 2012/06/21 : CIA-RDP79-00927AO01000120001-9 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 13 December 1956 to an opera ensemble which has just completed a tour of New Zealand cities. In the Far East, Japan continues a prime target for people's diplomacy. Peiping's decision in 1952 gradually to release Japanese prisoners of war marked the start of an ever-increasing exchange of trade, cultural, labor and professional delegations. In 1955, more Japanese entered Communist China than did nationals of any-other country, including the USSR. This reciprocal flow of travelers represented practically every field of endeavor from song-and-- dance acts to parliamentary delegations. The Middle East and Africa have received considerable attention under the Bandung aegis of Asian-African brother- hood, as well as the community of religion between Chinese and Arab Moslems. Burhan Shahidi, a "professional" Mos- lem from Sinkiang Province, is the Chinese roving ambassador for religious activities in the Middle East. Burhan has visited most of the Islamic nations in the area and has set in motion an exchange of Moslem representatives between these countries and Communist China. Chinese Buddhists are now participating in the World Buddhist Conference in Nepal and coreligious groups from Southeast Asia have toured monasteries in China at the invitation and expense of Peiping. Christian. spokesmen are also allowed voice occa- sionally. Dr. Hewlett Johnson, the dean of Canterbury and a SECRET frequent visitor to Communist China, has praised Christian progress under the Chinese Communists. China's touring minstrels, have impressed audiences from Rio de Janeiro to Riyadh.and Kabul to Khartoum. Peiping's commercial exhibits are reported among the most popular at any show where they appear. Small groups of Chinese trade, pro- fessional, and religious spe- cialists have furthered Pei- ping's objectives by expanding contacts in the realms of commerce, education, science, and religious affairs--frequent- ly producing informal exchange agreements. Visitors to China are seldom completely enchanted, unless their allegiance is al- ready to the left-wing fringes, but even those who are most guarded in their praise of the Communist regime often come home with the belief that Chinese leaders are benevolent despots and that a "normaliza- tion" of relations with Peiping is desirable. This year Peiping has spent more money, put more shows on the road, and invit- ed more. people to China than ever before, with every like- lihood the effort to sell fellowship will continue to expand. In the light of past success, Communist China seems confident that broadening of its international people's diplomacy constitutes an ef- fective instrument in its cam- paign to win support throughout the world for its claim to respected membership in the international community. 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