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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A008600050001-4
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RIPPUB
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S
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51
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December 21, 2016
Document Release Date: 
October 10, 2008
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1
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Publication Date: 
March 19, 1971
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SUMMARY
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Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 State Dept. review completed Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET Page Indochina: Maneuvering for Position . 2 Cambodia Passes a Milestone . . . . . . . . . . . 2 Mostly Quiet in the Other Laos;_ . . . . . . . . . . . . . . . . . . . . . 3 Campaign Maneuvering in South Vietnam ./ . 4 China Issues a Warning , 8 No Basic Change in SinoSoviet Relations ' ................10 fi The State of Play in Ostpolitik . . . . . . . . . . . . . . . . . . 11 Soviet Ambassadors Go Home . . . . . . . . . . . . . . . . . . . . . 12 France-Algeria: Oil Dispute Straitfs Relations . . . . . . . . . . . . . . . . 14 The Soviet Leadership on the ve of the 24th Congress of the CPSU 25X6 25X1 25X1 MIDDLE EAST- AFRICA Libya: The RCC Meets the People . . . . . . . . . . . . . . . . . . 17 Portugal-Zambi e Lisbon Considers Retaliation . . ' .. . . . . . . . . . . . . 18 India: Local Elitical Maneuvering Follows Mrs. Gandhi's _Victory . . . . . . . 20 Pakistan: Talks Under Way to Avert Split . . . . . . . . . . . . . . . . . 20 Turkey: Military Intervention . . . . . . . . . . . . . . . . . . . . 21 Hpnduran Elections: An Experiment in National Unity . . . . . . . . . . 24 Government-Labor Strife in Argentina . . . . . . . . . . . . . ..... . . . . 25 Syria; South Africa SECRET Page i WEEKLY SUMMARY 19 Mar 71 Finland; Maritime Issues; Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET lx ~' J 1030 3 f = .} 43 03 ~IO3 Main network Saravane SECRET Page 1 WEEKLY SUMMARY 19 Mar 71 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET FAR EAST Indochina: AUmmg~~rtion South Vietnamese advances into the Tche- pone area last week have triggered sharp Com- munist counterthrusts. Heavy fighting raged this week around a string of fire support bases just south of Route 9. actions-the attack on the Phnom Penh airport, and the raid on the Kompong Som oil refinery. Both of those attacks were carried out by small numbers of enemy troops, and may well have been executed as much for psychological as for military or economic impact. Communist pressure against the allied rear also is likely to grow. More shellings of the kind that struck Khe Sanh this week are certain, per- haps in tandem with a stiff infantry attack or two in this sector. The government in Phnom Penh has begun its second year in power with undiminished deter- mination to resist Communist aggression but with a future clouded by the prospect of more hard fighting ahead and growing internal political dis- cord. The regime can take pride in the fact that, in the months that have elapsed since Sihanouk was sent packing to Peking, it has managed to survive continuing enemy pressure and other mis- fortunes brought on by the war. The Cambodian leadership can also be grate- ful that the Communists have been either unable or unwilling to bring more than a modest amount of military muscle to bear against them thus far during the current dry season. Late last year, when the enemy launched a series of telling at- tacks on government positions along Routes 4 and 7, it appeared that the Communists were going to increase the scope and tempo of the war in Cambodia. Following the successful interven- tion of South Vietnamese task forces to break their hold over the highways, however, the Com- munists have staged only two significant military For most of the current dry season the Com- munists have confined themselves to a series of minor harassing attacks against scattered govern- ment positions in the countryside. Although they have also kept a fairly steady and effective level of pressure against main lines of communication, they have not-as previously anticipated-done so against major population centers. In Phnom Penh, terrorist incidents have fallen off sharply. Since early February, most of the Vietnam- ese Communists' crack combat regiments have been tied down in Kompong Cham and Kratie, defending their bases and supply lines against large-scale South Vietnamese clearing operations. Their preoccupation with those operations and their disruptive effects-as well as with the South Vietnamese push into south Laos-clearly have prevented them from doing more military damage to the Cambodians. Although the military situation is generally calm for now, the political climate in Phnom Penh is becoming more clouded. Lon Nol's ab- sence, and the uncertainty surrounding his future political role, have helped foster a spate of rumors about antigovernment demonstrations, allegations about coup plots, and speculation about potential candidates to replace the ailing prime minister. The government evidently is aware of much of this restiveness, but the leadership appears con- fident that it will not present any unmanageable problems. SECRET Page 2 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET Although the government has been unsuc- cessful in pinpointing the ringleaders who would be involved in possible demonstrations or other antigovernment activities, it did take a number of steps to ensure that the first anniversary of Sihanouk's ouster passed quietly in Phnom Penh. Demonstrations were banned, a curfew was im- posed, and the army was placed on alert. Earlier in the week, the regime put out the line that it had foiled a plot to restore the monarchy. The press in Phnom Penh was told that Acting Prime Minister Matak had ordered the arrest of a num- ber of officers who allegedly were moving to place a member of his family on the throne. Whatever the case, Matak has moved adroitly to defuse what was potentially an explosive situa- tion. Nonetheless, although the regime probably can continue to count on broad support for its conduct of the war, the relative political harmony that existed before Lon Nol became ill is not likely to be restored in the near future. Mostly Quiet in the Other Laos Ground action has remained at a fairly low level throughout most of Laos for the past week. Small-unit clashes and shelling attacks continued around the Long Tieng complex, but no major positions changed hands. The situation on the E3olovens Plateau has quieted down since the Communists overran Site 22 on 9 March. Only one enemy battalion re- mains near the position, which has been leveled by tactical air strikes, as other elements of the NVA 9th Independent Regiment have pulled back to thu east. For their part, government forces are Page 3 regrouping and taking up positions near Ban Houei Kong, west of Site 22. There are continuing signs that the Commu- nists may again move on Ban Houei Sai, a govern- ment position on Route 23 near the northern side of the plateau where the North Vietnamese suf- fered a severe setback in early January. That attack appeared to be intended to open the north- ern approaches on the plateau and to force the government to redeploy some of its troops from positions on the eastern rim of the plateau over- looking the Communist supply routes to Cam- bodia. In view of their success in ousting govern- ment forces from the eastern part of the plateau this month, however, the Communists may see little reason to make an all-out effort against Ban Houei Sai at this time. They will probably con- tinue to put pressure on the position, however, particularly because it is now defended by regular army troops. ~Spuvanna and the ComNnists oth Moscow and eking have recently` re- iterate their preferencp for Souvanna'sleader- ship, de ite his acgq.4scence in the Sgdth Viet- namese in ~rsion rr~to Laos. Both countries have made it cleat` hat they regard Souvanina as crucial to maintaining o_ lit al stability and keeping alive the possibility afuture litical settlement under the umbrel o ,theeva Accords. Al- though the Communt is ay doubt the efficacy of Souvanna's "neutra as a restraining in- fluence on allied op.er ns in Laos, they are clearly reluctant t1 e 1962 agreement, which legitimizes Lao Co unist movement and affords it p'`p ition in aalition govern- ment, completely ab cloned. Last J5all, the Ch`Ppese charge in ,/ientiane provided ?the first indication of Chinas position on thisfsubject when he ' stiid China wante to see Laoseturn to "strict netrality," with theNeo Lab Hak Sat (NLHS) participating in the govern- ,rnent. He also stated hewas doing everything he SECRET 25X1 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET cold to persuade the NLHS to negotiate with the 25X1 Rod I Lao Governor it. Subsequently, in late Febrary, 25X1 Other ChmeSq officials in Vientiane have also made it known .that Peking is backing Souvanna nd that Ching, will support Laotian neutrality aid all other previsions of the Geneva Accords that iqoncern it. ~. t Moscow lies also re ently stressed its con- tinuing support 'for Souvanna Phouma's leader- ship. During a cc nversation with a US Embassy official in Moscowon 96'March, the deputy chief of the Foreign Mlnistr 's Southeast Asian Di- vision flatly stated,.thztt the Soviets still view Souvanna as prime minter despite their official position that the tripArt a coalition government has collapsed. The So)ie told the Japanese es- sentially the same thing pn 8 March. Moscow's expressions of support ,fir Souvanna seem de- signed in part to prevent possible challenges to him from Laotian rightis. Like the Chinese, Moscow clearly thinks puvanna's continued presence at the head of y he Royal Laotian Gov- ernment is far more dlesirable than the uncer- tainties that would attend his overthrow by other non-Communist elements. Souvannaliimself has made another move in the prolonged war of words about peace talks with the Pathet Lao. He told the press of his letter of 1 March to Lao Communist leader Souphanoge"vong requesting renewed efforts to move foryr`ard on internal Lao peace talks. The Communists have yet. to reply to this message, and it is,'likely that the contents of the fetter will be leaked to the pressIfairly soon, furthering the impression that Souvan a is eager for progress. 'Campaign Maneuvering in South Vietnam The campaign strategies of the major con- tenders for South Vietnam's presidency are beginning to take shape.-'Big Minh is formulating a Communist controlled tenitary Contested territory sition distinctly different from Presi ent Thi increasingly hardline SECRET Page 4 WEEKLY SUMMARY 19 Mar 71 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET urging them to t ke steps that will benefit specific groups and presu ab y make them more f+ora- bly disposed towar a government A-hn the . Big ,Mini is seeking to build up support measures are a suspens n of tax payments by within the milifery,and i,4lanning to back some peasants who have receiv tproperty under the candidates in the Lo'we;House elections-to be land reform program, and at-,acceleration in the held before the presiderlto for their aid in his campi n. M"rrrhalso is showing e toward the election. For hi ,pa"rt, Thieu has b'~en taking a firm anti-Cgrrrmunist stance in rent pre-campaign Junkets around the country. The President report- edly has been meeting with province chiefs and probably also is encour Bing an attempt by a group-of basically progove ment parties to agree on a common slate of can 'dates for the Lower House elections. These can ' ates are to cam- ;.,rto campaign for his re- el ion. The President development of housarsgg procts for disabled veterans. t Thieu like Minh, plans~,o back those can- did.ates in the Lower House elections who agree paign in support of present go ernment policies -:x and to speak out strongly,,again any pacifist or coalition-minded opponents. Lt i not clear how well the parties will work together, however; similar efforts at cooperation have 'Failed in the past largely because of personal rivalries among party leaders. SECRET Page 5 WEEKLY SUMMARY 19 Mar 71 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SEURE'I 25X1 25X1 25X1 25X1 the dominant element i ing that---' this had nev would. Chou's testimony n evidence continues,.;,,to i retains the dominant.po posts in most provinces. steps are being taken to out of many time-consu with Snow designed for hou En-lai complained rayal of the military as Chinese politics, insist- happened and never twithstanding, available itical and administrative here are signs that some ease regular army units ingchores, but in most merejy being replaced eavingthe military in instances the regulars are by local garrison forces= full control. At this stage, ith the party appara- tus far from being fully rekurrected, the outlook is for a continued militar~ry presence in nearly every sphere of civil endeavor simply because the army is still the only cof esive overnin insrtru- ment in China. SECRET Page 6 WEEKLY SUMMARY 19 Mar 71 C-pmmuni?t China: The Military Syndrome Despite contgversy within the regime over aspects"of the future-gf the armed forces in Chi- nese politics, there are'ew signs that Peking is moving to ctail the eno ous civil burdens that the military has, assumed si o e the heyday of the Cultural RevolutLon. This ii, ression has been strongly reinforcedby lydntinuing pervasiveness of the military in everyday affairs. Not only are army men playing key roles in rebuilding the shattered Chinese CQmmuhist Party apparatus and maintaining over-VII security, but they are also charged with an unusually wide range of "housekeeping" chores f the sort performed be- fore the Cultural Revol ion by a civil bureauc- racy many times larger than China's present three-million-man military stablishment. - The contrast with the army's low profile irt, civil affairs before they' Cultural Revolution, particularly striking in Peking itself. of politburo member Hsieh Fu-chih, who WSs also head of ublic_ security and chairman pf the Pe- king Mun' ipal\ Revolutionary Committee, the military mo d back into control.,.ot public secu- rity. In the fall of 1970, troops also were obliged to re-enter Pekin University following an unsuc- cessful trial perio of civilian control. Discipline and order in the s ool supposedly rapidly de- teriorated following a departure of the army because of feuding bet een militant students and some of the professors ho had recently returned to their positions after u ergoing severe criticism during the Cultural Revol tion. to,,'Peking the crew a, airliner wore military `ist Edgar Snow was a ent military in his rec on which some top $ensitive. In an intervie foreign consumption, espread military influ- to Peking. For example, flight from Canton service members of the niforms. American journal- o struck by the ever pres- t travels in China, a point about foreign press par January, military contro in the city w wide- spread. Uniformed troolps ere observe,flirecting traffic, issuing ration coupons, rail -end airline tickets, and operating telegraphic facilities in the post office. The overwhelmiig majority of Peking police were uniformed soldjers,,*ho in their po- lice role are responsible for .6u rous duties far in excess of those ,41 . by Western police forces. These include poll cal indoctrination of factory and office woi rs, overseeing the con- struction of air raid she' ers, ensuring compliance with the down-to-theA- 3yintryside movement, and even some welfare pTogras. Additiona[ evidence r cently received indi- cates that the,fxtent of mill ry control of police and civil d '(ies is still) shay ly affected by the political cjrmate in the capit For example, fol- lowing the abrupt disappear4nce in March 1970 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET China Issues a Warning As the dust begins to settle from Chou En-lai's hasty visit to Hanoi, the outlines of a more explicit and stronger Chinese assurance of support as needed for the North Vietnamese ap- pear to have emerged. North Vietnamese concern on this score, and Peking's own concern that its role in the conflict had been discounted both in Washington and Saigon, were probably major fac- tors leading to the visit. Thus, Chou's appearance in Hanoi seems intended to spotlight Sino-Viet- namese solidarity in order to play out the deter- rent value of the specter of Chinese intervention. The Chinese-probably under pressure from Hanoi-for the first time in years began linking the security of North Vietnam directly to that of China. Chou En-lai on the first day of his visit on 5 March warned that "US expansion of the war in Indochina is a grave threat to China." This in essence was repeated in the joint communique signed by Chou and Pharn Van Dong on 8 March; the Chinese previously had limited their state- ments to allied operations in Laos when discus- sing the threat to China. The question of what constitutes a direct threat to China's own security is probably funda- mental to any future course of action Peking may decide to take in relation to allied actions on its southern border. The decision to tie events in Indochina generally to China's security, therefore, was no doubt an important one, and there is evidence that it was attended by high-level debate in Peking. In connection with Chou's visit, the Chinese have publicized a new "quotation" from Chair- man Mao, which is the first clear indication that continuing internecine disputes in Peking have spilled over into foreign policy matters. The quo- tation declares that "if anyone among us should say that we cannot help the North Vietnamese people in their struggle against US imperialism and for national salvation, it means mutiny, that is, betrayal of the revolution." This is extremely strong language and seems to be directed at do- mestic critics who have apparently argued against pulling Hanoi's chestnuts out of the fire. It is not yet clear precisely what is at issue, but contin- gency plans relating to China's role in Indochina should the war expand were probably a factor in the dispute. The whole series of seemingly contradictory events leading up to Chou's visit, in fact, points both to the likelihood that certain strategy dif- ferences between the Chinese had developed and to the possibility of some pulling and hauling between Peking and Hanoi as a result of allied o erations in southern Laos. Another curious matter is Peking's treatment of the question of allied "threats" to Chinese security. On 12 February, Peking for the first time specifically cited allied operations in Laos as a threat to China, and this was given wide play in Chinese circles. Xuan Thuy, however, shortly picked up these state- ments and expanded them to include allied opera- tions throughout Indochina as posing a threat to China. The Chinese never repeated Thuy's state- ments and subsequently dropped all references to China's security in their own commentary for the two weeks just prior to Chou's visit, at which time the Thuy formulation was finally surfaced again. The timing of Peking's hesitation and sub- sequent reversal on the issue, moreover, coincides with leadership meetings that were held in the Chinese capital after mid-February. Whatever the differences, the appearance of Mao's quotation and Peking's emphasis on making further "national sacrifices" on behalf of the Vietnamese and its constant reminders of "pro- letarian internationalist" responsibilities make it SECRET Page Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET clear that the Chinese at this point have decided on providing increased material assistance to Hanoi as it is needed. There is no evidence to indicate, however, that recent developments in Peking will result in a radical break with past Chinese prudence in the Indochina conflict or that Chinese military forces will soon intervene. Chinese official statements are still carefully hedged and are not explicit on what action would trigger Chinese intervention, although this con- tingency is clearly linked to some expansion of the war. In addition, Peking continues to empha- size its faith in the ability of the "people of Indochina themselves" to carry the fight through to a successful conclusion. SECRET Page 9 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET No Basic Change irk,: Sino-Soviet Relations There is no sign of a y movement toward resolution of fundamental political differences be- tween Moscow,and Peking. An' uthoritative Chi- nese editorial o?h_ 17 March eujgizing the Paris Commune on its" -centenary has reiterated at length Peking's long-standing criticisms of Mos- cow's views and policiesJust, before the opening of the Soviet 24th party cgngress. Although rela- tions in the past year have' been characterized by a lack of sustained public uarr:ling, Moscow will certainly denounce the late st Chinese attack. At the same time, ho ever, theLJSSR has attempted to appear fortlhciming toward China. Moscow claims it has extended an invitatiqn to Peking to send representatives to the party t n- gress. It has riot released the content of its invita- tion, and there is no indica on that the Kremlin.; expects Peking to respond positively. The Chir.es`e ' have been silent on the bid itself, but the editorial has made plain that there will be no less ring of Peking's ideological war with Moscow,nd that it has no interest in a resumption of pity contacts. The Peking border 1: ks-begun in October 1969-continue despite t Jack of any sign of meaningful progress. Foll ing the return to Pe- king of the chief Soviet, egotiator in mid-Jan- uary, some Soviet dips rats have been claiming that "most" of the baclground work regarding the talks has been completed, and that the num- ber of disputed arias ha! been reduced. The So- viets admit, hovyever, tha ownership of the most troublesome territories is till a matter of conten- tion. Moscow and Peking ve kept a wary eye on each other's response to the intensification of fighting in Indochina. Soviet propaganda broad- casts to China have berate) the Chinese for "split- Page 10 tism"-fau&ure to cooperate with other Com fnu- nist patios in joint support of Hanoi. These broadcasts uggest that Moscow may have once again resorteto the ploy of appealing to Peking for "united aclton" regarding Vietnam in order to emphasize Chinq's isolation fro in other Commu- nist nations. Economic Relations on Upgrade Sino-Soviet trade plummeted to about $55 miI}ion in 1969 front a peak of about $2 billion in 1959. Soviet official have admitted that trade in 1970 vvia~ even lower. The two countries signed a new tracre_ agreement last November, however, The relative e i g of the intense hostility created by the Cultuu al Revolution and border fighting of the late f9Us has enabled Moscow and Peking to resume- some economic contacts disrupted during that period:, The extremely lov' levels of trade over the past few years have been economically disadvan- tageous to both countries, and there are sound reasons for resuming it ~t higher levels-Neverthe- less, as long as both sides are unable to resolve their fundamental political dispute and each views the other as a potential `military antagonist, trade is likely to remain far short of the levels of the early 1960s. SECRET WEEKLY SUMMARY 19 Mar 71 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET EUROPE The State of-Play in Ostpolitik With prospects-4-apparently slim for progress in the four-power talks on Berlin, the focus of Ospolitik has temporarily shifted to East - West German'16- and West Berlin city- East German talks. Failure achieve a four-power agreement on Berlin remai~t the Gordiari knot that is holding up ratificatio1nonn of the Soviet and Polish treaties with Westermany ahd threatening to impede negotiations ` .vith Czechoslovakia and , Hungary. Since the Warsaw Pacfmmit meeting in East Berlin on 2 December 19 Q, it has become apparent that the Commuists, 'I rticularly the East Germans and the Soviets, he achieved unity for negotiating purposes. In retbrn for giv- ing up its insistence on dipotnatic recog-hition by West Germany as a prerequi4ite for negot tions,/ Pankow has pledges from itsallies that its rt ests will not be ignored in the course of r negotiations with Bonn. Dur;ing the four owei`. talks since then, the Soviet have hon ed this pledge in a manner that turnsit into a egotiating tactic. Thus East Germany, inconcer with Soviet negotiators, has undertaken ,the sk of talking directly with Bonn and the West erlin Senat, but so far almost exclusively o subjects that the Western Allies consider rese d to the four pow- ers. Even though thei 'main {purpose is to under- mine the four-power Iks, theEast Germans have come a considera distances they are at least talking with the rest and have indicated a num- ber of matters they might onsider negotiable both in Berli and between he two Germanies. Prospects ar- slight for im : ed iate progress in these talks or for Easter passe for West Berliners, but evenn questions affectin their alleged sov- ereignty; the East Germans h ve privately indi- cated that they might be flexib . Should the four powgts ever agree to give the gdrahead to the two German states and the West Berin Senat to con- duct negotiations within specific limits, the East Germans would as a result be committed to ex- tensive negotiations and would then be faced with the choice of reneging or settling on terms amounting to k facto, rather than de jute, recog- nition from BonnN ncl the West. kow's attempts to dra negotiations on Perlin. hope that a sta mate in the add to the pressures on th e Soviets evidently our-power talks will West Germans to scow continues to proceed or.-their own, and M use everyR'available public and private channel to urge ss h a course on Bonn. fr' Along with the question of a Berlin agree- ?rrnent, Moscow's energies ale concentrated on pressing Bonn to ratify its treaties with the USSR and Poland. There has bey'n no repetition of the alarming-and Soviet-inspifed-press stories of last month that threatened a omplete break with the Brandt government, but he Soviets have never- theless contrived to ake their displeasure kn The The cool treatme t the Soviets have ac- corcl a West German de gation that arrived in Moscoon 9 March to n otiate the terms of a civil air cement evident) was intended to con- vey Soviet irritation with onn's persistence in linking ratific~8tion to the co elusion of a satisfac- tory Berlin agr kment. The 24th party congress will give prom inerapprobaton to Moscow's Ger- man policy, and it .,is, unlik y that the congress will lead to any change'sJn S viet tactics. Nevertheless, it is lik~t k that Soviet pressure tactics will stop short of t e,. point where they would destroy the credibil ty-gq,f Ostpolitik and undermine the domestic o itical osition of the Brandt government. Mos o$u's preence for the Brandt government was clearly demo 5trated last week when Soviet spokesrrlen issued a'-flurry of optimistic statements about a Berlin accord after the four-power meeting of"9 March, evident in the hope of improving the showing of Bran Vs Social Democrats in the West Berlin elections of last Sunday. SECRET Page 11 WEEKLY SUMMARY eartedly support Pan- Bonn into premature Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET Soviet Ambassadors Go Home Moscow is carrying out a massive overhaul of its ambassadorial corps in Eastern Europe. Of the seven Soviet ambassadors posted in Eastern Europe-the USSR does not maintain diplomatic relations with Alba-fi*e have been removed from theireions this month. They are ambas- sadors Benediktov in Yugoslavia, Aristov in Poland, Basov in Romania, Titov in Hungary, aid Puzanov in Bulgaria',Moreover, the status of the o remaining am as-sadors-Abrasimov in East Germany and Chervonenko in Czechoslovakia-is uncertain. Chervonenko's departure has been a subject of frequent rumor since the crisis of 1968. The changes may be keyed to the political maneuvering and personnel shifts connected with the impending Soviet party congress, scheduled to begin on 30 March. All of the departing ambas- sadors are members of the party central com- mittee, and the loss of their diplomatic positions suggests that their party posts could also be in jeopardy. It is not likely that the changes are indicative of a Soviet intention to alter policies toward Eastern Europe. The ambassadors who have been newly named-Stepakov in Belgrade, Pilotovich in Warsaw, Drozdenko in Bucharest and Pavlov in Budapest-seem to be cut from much the same cloth as their predecessors. Stepakov is the former head of the central committee propaganda de- partment, Pilotovich is a Belorussian party ap- paratchik with a record of hard-lining speeches in support of ideological "vigilance," and Drozdenko is a veteran of the Ukrainian party organization. SECRET Page 12 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET FINLAND: A dispute betwee e Communists and Prime Minister Karjalainen over relatively minor issue of extending certain price ontrols has mushroomed into a full-fledged gover ent crisis. The five-party, center-left coalition h been racked with internal bickering since its in- ception last July, largely because of Communist maneuvering as a result of its own internal party split. Karjalainen, hoping to force the Commu- nists to give in on the price control issue, an- nounced prior to Wednesday's parliamentary vote on the price control bill that his government would resign if the Communists failed to support it, a threat that he carried out the same night. As one of the major parties in the coalition entered it h any great enthusiasm, only considerable arm-tw by President Kekkonen is likely to SECRET Page 13 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET France-Algeria: Qil Dispute Strains Relations Algerian nationalis`Vtion of the greater part of Frer~ch petroleum assets threatens to strain French rel~itions with theUS as well as to bring an end to the special relationship that exists be- tween France and Algeria. Top Age rian officials are now ta4iit1g steps to counter ossible French moves,,uch as the total withdrav I of the French oil ompanies, and they are prepa'ng to recruit asmany as 800 oil specialists if nec nary. The .Aso are giving maxi- mum publicity t the si ing of contracts with non-French firms ch to allay internal fears that a French put ut would create economic chaos as to put es ure on France to meet Al- geria's minimyidema ids. 1'fThough the Frpch responded with re- The French recently asked the US to refr4 j from taking any actions at this time that make it harder for the' i to work out a able compensation with the "Algerians. As French diplomat explained, the purpose of t ~fh demarche was to dissuade the US and other fry dly govern- ments from supporting loans to 4 4geria from the World Bank or from USinstit ons at this diffi- The Algerian obje"ive during negotiations with France has bee of achieve control over its petroleum resource X. Eartier this year, France re- jected Algeria's and fir 51-percent control of all petroleum Aerations. Rather than waiting for the resumpti6n of negotiations, suspended early in February, Prime Mini er Boumediene on 24 February" announced the ' ke-over of a 51-percent share-'if all French oil companies, which produce some 70 percent of Alge a's petroleum, and the complete nationalization b f all pipelines and na- tural gas facilities. Although Boumediene prom- ised fair compensation for the seized assets, he publicly rejected a press valuation of $800 million for these assets. strorfit to the nationalisation, Pompidou was re- ization takes the last yubstance out of the 1962 accord reached at th2 end of the Algerian revolt against France. Theyalso argue that it prejudices the negotiations thafhave been conducted since `'f st August under Pa pidou's personal direction. Cr~it~cized in the Fr nch press for mismanaging these alks, Pompid u is no doubt particularly sensitiv,Jo events tha expose him to unfavorable comparison with his l:Vedecessor and raise doubts about his ablLk,y to m intain French influence in the Mediterran'an region. Last week the F nch gave the Algerians their specifications for j~i t,compensation, making clear that the continu4tiorh of the special rela- tionship between the two countries hinges on this question. The Algerian response.,, to the French, delivered on 15 March; display "? a mixture of intransigence and flexibility, a combination that has also been evident irk talks now `rr progress with the French companies. It appears doubtful that the Algerians will be prepared to" -Meet France's minimum demands, however./----] 25X1 SECRET Page 14 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET MARITIME ISSUES: The I,seabeds committee states with 200-mile't[aims pushed their candidate this week broke the impasse that had-prevente. l its to chair the subc,Rromi tee on that subject and ar- convocation and began planning for the 1973 Law' gue,.for continuing thechairmen's prerogatives. The of the Sea conference. The impasse resulted m a compromise finally.wor ed out retained for the full - { visions on controversial over th powers 9Lsu-bt mmittee committee control over procedural dispute P ts. -The Latin American issues. a SECRET Page 15 WEEKLY SUMMARY 19 Mar 71 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET Libya: The RCC Meets the People Last month, individual members of the Rev- olutionary Command Council (RCC) held a series of public meetings all over Libya in an effort to bring home to the people the efforts of the gov- ernment on their behalf. In general, the results have been humbling for the RCC, although the general and specific criticisms evoked from the populace may ultimately prove educational to the brash young leaders. Premier Qadhafi announced on 2 February that the RCC had decided to submit to the people "an account of what we have done" since the revolution of 1969. He said that the members of the RCC would "meet the people" to discuss national problems with "complete frankness and clarity." Subsequently, from 22 February through the 27th, RCC members Jallud, Hamzah, Humaydi, Hawwadi, and Muqaryif held the an- nounced meetings. In some areas, especially in traditionally royalist Cyrenaica, the gatherings were poorly attended. At the rallies, the official speeches were fol- lowed by a vigorous exchange of views with the audience, which often expressed dissatisfaction with material progress. Housing, employment, health measures, television, and agricultural wells all were subjects for criticism. Harsh dialogues on such broader political issues as restrictions on SYRIA: On 12 March, more than 99 ercent of the voting electorate confirmed Hafiz sad as "constitutionally elected president" fora ven- year term. Asad later told one reporter that it still premature to specify the nature of planne cabinet changes, but he did indicate that he would give up the Defense Ministry to a civilian. Asad reaffirmed Syria's dedication to the "battle party activity and the presence of foreign advisers (read "Egyptian") indicated that popular griev- ances were not limited to material demands. RCC speakers often reacted to these criti- cisms with displeasure and impatience, even ac- cusing some questioners of laziness, ingratitude, and greed. This irritated attitude was later re- flected in an editorial in the official newspaper al-Thawrah, which lamented the fact that "RCC members are the only persons working for the revolution" and urged the Libyans to awake and serve their country. The series of gatherings has probably gone beyond its stated purpose of informing the people by providing a rough-and-ready forum that has revealed to both the RCC and the public the full extent of the credibility gap that has grown up in the year and a half since the revolution. The RCC members appeared surprised and perhaps disap- pointed by the critical reception they received, and the meetings may prove to have a more salutary effect on the council's relations with the people than originally envisaged. At the same time, the give-and-take of the rallies disclosed that the Libyan populace is not as politically apathetic as generally believed. of liberation," claimed closer relations would de- velop with Egypt, and appealed for national unity among the Syrian people. One of his first tasks as president will be to host a conference of the embryonic Arab federation-Egypt, Libya, Sudan, Dascus on 20 March. 25X1 SECRET Page 17 WEEKLY SUMMARY 19 Mar 71 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET Portugal-Iambi a: bk-bConsiders Retaliation The Zambian Government's refusal to accept responsibility for Portuguese civilians captured by a Zambia-based guerrilla organization has angered the Portuguese LUANDA In mid-January, the Mozambique Revolu- tionary Committee (COREMO), a minor insur- gent organization that operates out of Zambia, infiltrated Portuguese Mozambique, kidnaped six civilians, and took them back to Zambia. COREMO apparently wanted to turn the prison- ers over to the Zambian Government, but Lusaka GAB,LRONE? Porf-Francaui Mbeya x. FC[aleCteq route of 3amZamWA Lubumbashi PEMBA ZANZIBAR DAR ES SALAAM Site of kidnaping ZOMBA Kidnaping Creates Tension Between Portugal and Zambia SECRET Page 18 WEEKLY SUMMARY 25X1 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET reportedly refused to accept custody. It is vir- tually certain now that the prisoners were sub- sequently killed by COREMO. The Zambian Gov- ernment, embarrassed and concerned over pos- sible Portuguese retaliation, has attempted to dis- claim knowledge of the incident. It has also as- serted that it had denied the guerrillas permission to bring the Portuguese into Zambia, and that it is not responsible for CORE:MO prisoners. Disturbed by what it saw as a lack of respon- siveness, Lisbon publicly announced on 5 March that it was holding Lusaka responsible for the prisoners' fate. So far, the Portuguese have ap- plied pressure by holding hostage three Zambians who crossed the border into Mozambique without documents and may be slowing the shipment of SOUTH AFRICA: Libera church circles remain apprehensive following wi read "search and seizure" raids by the South ican security po- lice against a score of individuals well as church and student groups. The raids, whit occurred in late February, allegedly were connectJ&with the investigation of the Anglican dean of J' nnes- burg, who was arrested in January for poss ion of subversive literature and for other, as yet specified acts. In addition, Pretoria has recent) issued deportation orders to a number of foreign clergymen, church workers, and their families, most of whom are US citizens. maize into Zambia over Angolan and Mozambican railroads. In the past, similar tactics have caused Lusaka to tighten its control over guerrilla groups. Zambia's maize imports are especially necessary now because of bad harvests. The raids and deportations appear to be part of an intensified effort by the Vorster govern- ment to harass and intimidate some of the more vociferous critics of its apartheid policies, particu- larly among the clergy. They also exemplify the government's overriding concern with internal security. Although Pretoria has been trying for some time to improve South Africa's interna- tional image, it is willing to ignore the effects of its heavy-handed tactics on world public opinion when it comes to dealing with its critics. F___\ 25X1 SECRET Page 19 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET India: Local Political Maneuvering Follows Mrs. Gandhi's Victory The Ruling Congress Party's (RC) landslide victory on the national scene was accompanied by important advances in two states that held simul- taneous state assembly elections. In neither West Bengal nor Orissa, however, did the RC secure a majority, and even if the party eventually forms coalition governments in these states, they will probably lack the necessary strength for long- term surviva : -?? - ... ............... .. In violence-prone West Bengal, the number of RC seats rose dramatically from the 38 gained in the last state elections in 1969 to 105. Even so, the party was unable to top the 123 seats won by the six-member United Left Front led by the Marxist Communists (C:PM). Since 1967, when a CPM-dominated government was first elected to power in West Bengal, the Marxists have made several tries at ruling this key industrial state, but they have failed to halit the economic decline or ,to calm political unrest there. As the strongest political force in the state, the Marxists had eagerly sought new elections since March 1970, when New Delhi suspended representative government and assumed direct control through President's Rule. The CPM plural- ity proves the Marxists are still a major contender, but the returns also indicate they were hurt by some weakening of the anti-Congress sentiment that was so prevalent in 1967. Other factors in- cluded voter repudiation of the CPM's inept ad- ministrative performance and of its participation in the feuding between rival Communist factions that has cost hundreds of lives. Prime Minister Gandhi, determined that elec- tions would be held in West Bengal, approved the unique move of calling on the military to prevent electoral disruptions and to encourage a high voter turnout. In a surprisingly peaceful atmos- phere, the Bengalis voted in greater numbers than expected.'The heavy showing suggests that many are disenchanted with the CPM and are seeking a remedy for the chaos that has bedeviled the state in recent years. Restoration of stable government, however, remains an unlikely prospect, now that the CPM and RC have, in effect, polarized West Bengal politics. Neither party has the 141 seats required for a majority, and both parties are presently jockeying for allies. The wide ideological gap be- tween the two suggests that West Bengal may be on the verge of another round of political turbu- lence, which could again lead to the imposition of President's Rule. In neighboring Orissa also, the RC saw its position jump significantly, from 8 to 51, al- though it still fell short of attaining a majority in the 140-seat assembly. The RC could form a coalition with a regionally oriented party, but this is only one of several possible combinations, and the ultimate decision will probably be taken in accord with Mrs. Gandhi's wishes. Her position in Orissa has been further strengthened by her par- ty's capture of 15 (up from 4) of the 19 parlia- mentary seats allotted to the state. If the RC decides not to participate in a state coalition, however, it is possible that no government will be formed and fresh elections may be called for next Pakistan: Talks Under Way to Avert Split Discussions began on 16 March in Dacca between President Yahya Khan and East Pakistani leader Mujibur Rahman, who had just moved toward formalizing his de facto control of the province's administration. Since Yahya's arrival in East Pakistan, he has conferred with Mujib several times in an attempt to find a solution to the crisis over the province's demand for autonomy. Information regarding any progress is fragmentary, but the arrival of a SECRET Page 20 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET former law minister in Dacca on 17 March prob- ably indicates that some constitutional formula is under discussion. , At almost the same time that Yahya arrived in Dacca, Mujib issued his gravest challenge yet to the central government by announcing that he had assumed what amounts to de facto control over the administration of the province with the Turkey: Milita y ervention For the second time just over a decade, the Turkish military has inter ed in the politi- cal life of the country. For the oment, it has stopped short of a direct assumptio f power in favor of trying to work through the cons tional system. If, however, there are what the m - ar broad coalition government to end extremism/nd promote a wide program of reforms, a mi tary junta may yet take over. The ultimatum, contained in the/12 March memorandum to President Sunay, followed exception of three major cities. The announce- ment seemed to formalize a situation that had developed following Mujib's call for a general strike from 2 to 7 March and a subsequent week of noncooperation. In connection with his an- nouncement, Mujib issued a 35-point directive aimed at eliminating confusion in ports, banks, transportation and communications facilities, and in other activities. According to this directive, nongovernment commercial and industrial estab- lishments could operate normally, but govern- ment agencies, except for the police, were to remain closed. The points were formulated by a committee headed by leaders of Mujib's Awami League, indicating that his party is probably pre- paring itself to handle large-scale government operations. Oc asional scattered violen continued in East Paki Late Iast wo small bombs were explode th y of the building that houses the US C ulate General in Dacca, and a shotgun w fired the house of the consul genera o one was ink d and no damage was thererains a cle etermination to assume ct military control o government if all fails. In eral, the man in the street has grudg- ingly appro the military intervention. Para- doxically, the itical left, against which the move was prima aimed, has been most SECRET Page 21 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 ? SECRET enthusiastic, apparen4ly under the delusion that any military take-ove'\will ultimately pave the way for a socialist syster During the past week, esident Sun as moved to quiet public conce and t initiate formation of the type of coali n vernment that will meet the demands of the matum. The leaders of the two largest polit' I p ies, repre- senting over 80 percent of P ament, a arently have agreed, however relu ntly, to supp such a government. The militavy", claiming its action was coup, has launched a purge of the officer corps. This action suggests some realization on the part of the military that it is on shaky constitutional grounds. The purge has increased apprehension withirlthe officer corps, ..Turks appear to be wondering if even the military can-cope with the situation. The military may yet find that it was easier to move into the government than it will be to disengage. An old Turkish proverb points out that %lip who would take his ass up to the roof of his h %Ss should first give thought as to how he can get down. It remains to be seen whether the Turkis military has profited from this wis- dom. (SECRET E-?,i REIGN DISSEM) WESTERN HEMISPHERE SECRET Page 22 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET Chile: Economics and the Municipal Vote The Allende government is relying increas- ingly on economic expediency to attract support in the mu ,ipal elections of 4 April. The Presi- dent realistica expects the well-organized Com- munist Party (P ) to increase its percentage of the vote by a great margin than his own Social ist Party (PS). He will satisfied, however, if the Popular Unity (UP) coa ion-consisting of the PCCh, the PS, and the Radi Party-improves its electoral showing from the mi rity 36.3 percent in the September presidential ection to about 50 percent. The government's strict price co trols have sharply reduced cost-of-living increase despite the administration's simultaneous pur it of highly inflationary budget and monetary po ies. During the first two months of 1971, the c Sumer price index rose only 2.1 percent, co pared with 12.2 percent for the same period i 1970. Government spokesmen have hastened point out that as a result the recent 45-perct wage increase is not being eroded by rapidly ruing prices, as in the past. Although rising wage osts and frozen prices are putting a tight squeee on the business community, the boost in w ,rkers' real income is an important political assetor the UP coalition. 3 Opposition parties respond to thes -statistics by emphasizing persistently high unem loyment, but the UP campaigners successfully ounter by charging the previous government with creating the unemployment and by claiming o have cre- ated 40,000 new jobs since Allende's: auguration in November. Moreover, a governme t spokesman announced 15 March that a portion of the Chilean bu et disbursed at executive discretion and formery applied to agricultural and mining projects w I be used to fight unemployment. Go ernment permissiveness in the face of illegal nd seizures by peasants, largely in the south n provinces, can be expected to improve the 's electoral showing in that region. The seiz es cause the landowners to request govern- me expropriation of their lands as a means of re izing at least a small return. Allende has wel- ntion to expropriate as many as 1,000 farms uring 1971. The announcement has probably, had the effect of encouraging further land sei- zures. Although this new peasant-government re- lationship is to the UP's electoral advantage, the land seizures may come under the control of the extremist Movement of the Revolutionary Left. oreover, the Allende government may find it ficult to impose its own agrarian reform in are. where peasants already have obtained land simp by seizing it. In peal, the g er moves with widespread political ap- ernment has taken over the operation of two large largest cemen Anaconda Coppe terest in both min made on the grounds to labor problems. A bi alization of large US cop production shortfalls due to complete the nation- to be acted on by the Chil municipal elections. SECRET Page 23 WEEKLY SUMMARY 19 Mar 71 ppper mines and the nation's two manufacturers. The US-owned Company has a 49-percent in- Congress after the Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET Honduran E:Iectigns: An Experiment in National Unity 1\ Vo'~ers will go to the polls on 28 Mar to elect a new gov- ernment in hich the country's two major rties will share power. The Nationalist Party of President Lopez nd the Liberal Party will vie for to presidency, but each is assure half of the congressional seats. addition, there will be a bipar 'san cabi- net, and the party de ated in the presidential race will ontrol the Supreme Court. The unity plan worked out by Presic9gnt Lopez, business, labor, and political leaders d r- ing December and January was designed to avoi partisan strife and to promote honesty and com- petence in government. It temporarily ended months of speculation that Lopez would refuse to step down when his term ended in June 1971. Early enthusiasm for the plan waned some- what in February, when the parties' congressional slates revealed that the lofty rhetoric about bringing new faces into government and at- tracting only the most qualified citizens had wrought no real changes. The selection of party hacks for congressional seats, the lackluster campaigns of the two presidential candidates, and the continuing unhappiness of students and other political ele- ments frozen out of the unity arrangement eroded the notion that a real change in Honduran politics was imminent. Despite Lopez' assurances of complete government neutrality, there is skepticism that elections will be free and that Lopez actually will relinquish the presidency. There is not likely to be m ch difference in policy direc- tio whether the 68-year-old Ramon Ernesto Cruz Nationalist Party Candidate Jorge Bueso Arias Liberal Party Candidate SECRET Page 24 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET Nationalist Party candidate, Ramon Ernestp Cruz, or the more dynamic 51-year-old Liberal; Jorge Bueso Arias, wins what now promises to be a clbse election. Both are expected to pursue a policy of friendship with the US and both are agreed on a general program of government with particular em- phasis on increasing economic growth, resolving the border dispute with El Salvador, and renewing ef- forts to restructure the Central American Common Market. Moreover, a new administration may have to operate under a number of constraints and thus find itself with relatively little room for maneuver. It will have to deal carefully with the opposition party if it to make the national unity concept work. The neVv,.government will also have to demonstrate to the tWilitary that it has the capacity to govern or General opez may find it "necessary" to save the country 'from the politicians as he did in 1963. 25X1 Government-Labor Strife in Argentina The Levingston government was plunged into a new crisis this week as a result of violent strikes in the industrial city of Cordoba. Rumors of major governmental changes, including the resignation or removal of President Levingston, circulated widely in Buenos Aires as the President faced his most serious test since coming to power last June. The violence in Cordoba, which resulted in two deaths, many injuries and extensive property dam- age, reached its high point during a 14-hour general strike on 15 March. Radical leaders of the Cordoba labor movement were seeking a confrontation with the government, and the death of a young worker in a well-organized strike on 12 March apparently pro- vided the martyr necessary to bring large crowds of workers and students into the streets for demon- strations on thel5th. Following the funeral, roving bands of workers and students took over portions of the city and local police were able to control the looting and burning only after several hours. Emergency meetings of the commanders of the three armed services to consider the Cordoba situa- tion touched off the rumors of imminent changes in the government. The President, however, met with the commanders in chief the day following the riots and apparently all were agreed on a series of tough measures to counter the politically inspired labor violence in Cordoba. A military governo as een named to the province, replacing the unpopular one whose appointment on 1 March had provided radical labor leaders with a vulnerable target. Other meas- ures taken include arrest orders for the leaders charged with instigating the strikes and violence and the intervention of all the Cordoba unions repre- sented on the strike committee. Despite these tough measures more strikes are likely in Cordoba where the unions have now had a taste of victory-the forcing of the governor's res- ignation. Although the events of the past week in Cor- doba have introduced new strains into Levingston's relations with the military, the President and the military commanders appear to be working together to restore order. The over-all result of the Cordoba disorders, however, is likely to be a reappraisal by the regime of its political and economic policies and increased pressure for an early return to an elected representative government. SECRET Page 25 WEEKLY SUMMARY Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 25X1 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Secret Secret Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Secret DIRECTORATE OF INTELLIGENCE WEEKLY SUMMARY Special Report The Soviet Leadership on the Eve of the 24th Congress of the CPSU Secret N2 13 19 March 1971 No. 0362/71A Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 25X1 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET THE SOVIET LEADERSHIP ON THE EVE OF THE 24TH CONGRESS OF THE CPSU The 24th Soviet party congress will convene on 30 March, one year past the statutory time limit and five years after the last congress. As the party's most authoritative forum, the congress will endorse policy guidelines and realign the top political hierarchy to fit changes in power relations that have taken place since the last session. As the meeting approaches, there have been signs of fierce pulling and hauling among opposing factions within the party to influence the general tone and direc- tion of the congress. To some extent this involves bureaucratic competition among important interest groups-regional as well as central-for more money and greater power. But the main cleavage is between those who would like to see the congress endorse an acceleration of the present conservative drift in Soviet policies and those who would have it mark a return to a more flexible and innovative approach. The leadership appears to be fairly evenly divided between moderates and conservatives, and there is still no clear evidence as to what direction the congress will take. There will certainly be no major shift in policy unless there is a major shake-up in the leadership, and that does not appear to be in the offing. General Secretary Brezhnev, the most powerful figure in the leadership and spokesman for the generally middle-of-the-road faction, has markedly enhanced his authority since the last congress. It would be surprising if some of his followers did not improve their positions at this session. But existing checks and balances still appear to be strong enough to safeguard the system of collective decision-making and to prevent Brezhnev from establishing the kind of domination enjoyed by Stalin and to a lesser extent by Khrushchev. It has indeed appeared difficult for the leadership to make any changes in its ranks. There have been no alterations in the composition of the eleven-man polit- buro since the last congress, although several members at the very least seem due for retirement. This meeting will therefore determine whether such changes will be made on a timely basis or whether immobility will persist. Functions of the Congress tion. According to the script, it is composed of delegates elected in a democratic manner at re- gional convocations by delegates who in turn have According to party texts, the congress is the been elected at district meetings. In practice, "indisputable authority of party power," the however, the delegates are carefully selected in formal apex of the party's hierarchical organiza- advance by Moscow. Special Report - 1 - 19 March 1971 SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET STRUCTURE OF TOP SOVIET PARTY BODIES (on Eve of 24th Party Congress) PARTY CONGRESS APPROX. 5,000 DELEGATES Democratically elected by party members (indirect election through lower party organizations) Supreme party body meets every four years CENTRAL AUDITING COMMISSION 73 MEMBERS Checks or speed and correctness of activities of central party bodies and condition of party finances Frequency of meeting unspecified CENTRAL COMMITTEE 190 FULL (VOTING) MEMBERS 148 CANDIDATE MEMBERS Directs work of party between congresses Meets at least once every six months 11 FULL (VOTING) MEMBERS 9 CANDIDATE MEMBERS Directs work of central committee between plenums PARTY CONTROL COMMITTEE Trial and appeals board for cases of party discipline 11 MEMBERS Directs current work of the party chiefly checking on implementation of party decisions and selection of personnel Functions continuously ELECTS INSPECTS Special Report SECRET Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET I n the early years party congresses partici- pated actively in policy making, but under Stalin they degenerated into a rubber stamp forum de- signed to give the leadership a semblance of democratic legitimacy and to propagate the re- gime's policies. Although congresses have been convened with greater frequency and regularity in recent years, their role and operations have not essentially changed. The convocation of a party congress is, nev- ertheless, an event of great importance in Soviet political life. It is the occasion for reviewing party activities and for authoritatively defining basic policies. It is also a primary reference point in party annals and historiography. Pronouncements of the 23rd party congress are frequently cited as basic guidelines, and even those held during the Khrushchev era are occasionally mentioned. The convening of a congress also helps to bring into the open the crosscurrents of political and policy disagreements within the leadership. Furthermore, it forces a review of the member- ship of the ruling bodies--the politburo, the secre- tariat and the central committee-and thus is a time when individual leaders seek to place their followers in positions of influence. As general secretary of the central commit- tee, Brezhnev will deliver the "accountability re- port," which, in theory, is an accounting to the party's highest body of the activities of the cen- tral committee since the preceding congress. This keynote address reviews developments in the in- terval, defines the current situation, and outlines a program for the future. It is usually divided into three major sections-the international situation, domestic affairs, and the state of the party-and is followed by discussion. If there are any "dramatic" moments at the congress, they are most likely to occur in Brezh- nev's speech itself or duririg subsequent discussion of it. Kosygin's report on the five-year plan, the only other significant report scheduled, seems likely to be an exposition of the draft directives Special Report -3- SECRET of the 1971-1975 plan published in the Soviet press in mid-February. The session, which is expected to last more than a week, will close with the election of a new central committee that in turn will meet to elect the other ruling bodies, the politburo and the secretariat. In both cases decisions concerning membership will already have been made. The congress will be attended by representatives of foreign Communist and some left-wing parties. The foreign representatives will present greetings from the various "fraternal parties" but will not participate in the deliberations. Conflicting Policy Directions The collective leadership that succeeded Khrushchev has proved to have considerable polit- ical staying power. The group has avoided any open, destructive struggle for power, but it has by no means been free of internal disagreements. As the congress approaches, jockeying to influence its tone and direction has become apparent. Es- sentially the struggle involves the question of how far Soviet policy should move away from Khru- shchev-symbolizing change-and back toward Stalin-symbolizing the old way of doing things. At one extreme of the Soviet political spec- trum are those who would like to return to tough Stalinist policies in domestic and foreign affairs. They are not represented in the politburo, al- though their voices may well be heard in the Kremlin. They consider Khrushchev's de-Stalini- zation drive a grave mistake that has led to the erosion of Soviet power in the Communist world and to unrest at home. They favor stern measures against domestic dissident elements and distrust any innovations that might tend to weaken party and government controls. They are obsessed with the dangers of ideological subversion from the West and doubt the wisdom of closer relations with capitalist countries, particularly if it entails more than minor concessions on the Soviet side. They put much stock in the importance of recon- ciliation with the Communist Chinese and seem Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET Special Report SECRET Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET to have been able to convince themselves that this is simply a matter of removing revisionist ele- ments from Soviet political life. At the other extreme are those who believe that, without some basic economic reforms and a further democratization of political and social institutions, it will not be possible to get the country moving and to solve its economic ills. Members of this persuasion believe that if the Soviet Union is to make rapid progress in modern- izing its economy, it will have to accelerate the use of Western technology. They favor a flexible, essentially nationalistic, foreign policy. Moreover, they tend to see Communist China, rather than the West, as the greatest potential threat to the Soviet Union, not only from a military point of view, but because Chinese arguments play into the hands of the neo-Stalinists at home. The range of views represented at the top policy-making level does not encompass these ex- tremes, and certainly no one leader wholly em- braces either of these programs. The two ex- tremes do, however, help to define the limits within which policy debates take place and to identify the ingredients that go into the "mix" of Soviet policy. There is a fairly even balance in the leader- ship between conservative and moderately liberal interests, but it is evident from the direction that Soviet policy has taken since Khrushchev's ouster that the conservatives have generally come out ahead in the argument. They are now clearly pushing their advantage in hopes of achieving some major gain at the congress, possibly even the further rehabilitation of Stalin. Their capability Politburo Lineup Front row (left to right)-Voronov, Suslov, Podgorny, Kosygin, Brezhnev Back row-Pelshe, Shelepin, Mazurov, Kirilenko, Polyansky (the empty chair belongs to Shelest) Special Report SECRET Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET INTERLOCKING DIRECTORATE: PARTY AND GOVERNMENT 25X1 POLITBURO OF CENTRAL SECRETARIAT OF COMMITTEE CENTRAL COMMITTEE GENERAL SECRETARY Brezhfe4 Kogygin,.' PRdgorhy Special Report SECRET PRESIDIUM OF COUNCIL OF MINISTERS SUPREME SOVIET FIRST DEPUTY CHAIRMEN - Mazurov - Polyansky DEPUTY CHAIRMEN Dymshlfs Novikov, I. T. Boybakov KirillIn Lesechko SmIrnov Novikov, V. N. Tikhonov Yefremov Members E. Officio (the 15 Republic Premiers) Voronov ShSha,4#skY 49 Min_icters and other S fficlois of Ministerial Rook (Titular Chief of Store) -DEPUTY CHAIRMEN (The Chairmen 4f the Presldiyeis of~~"he 15 kepubticn) Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET to do so without a major change in the composi- tion of the politburo is problematical. Such a step would have a severely inhibiting impact on all domestic policy innovations and an adverse effect on the political fortunes of those in the leadership who have been associated with a push for change. The alignment within the politburo and even the position of some of the individual members have changed fairly dramatically in the five years since the last party congress. General Secretary Brezhnev, as "chairman of the board" and its most powerful member, still hews to the middle ground, but this grourid has gradually shifted toward the conservative end of the political spec- trum. Those in the leadership who appear to make up the hard core of his political support- the "Ukrainian group"-have increasingly come to be identified with a tough line on domestic and foreign policy matters. The independent members of the 11-man politburo, including both past and present rivals and critics of Brezhnev, now seem to have landed in the moderate sector. On the eve of the 23rd party congress, held in 1966, the leadership was still united in its resolve to back off from many policies associated with Khrushchev, particularly his drive against Stalinism. The leadership had not given up hope that, with Khrushchev out of the way and with the taking of a decision to stop all criticism of Stalin, the major problems in relations with Com- munist China might be ironed out without further ideological concessions. The two leaders who had been closest to Khrushchev and who had appar- ently disagreed with this line on Stalin-Mikoyan and Podgorny-had already been moved to posi- tions of lesser importance. Furthermore, the new leadership's self-styled, "business-like" approach to economic problems embodied in the agricul- tural and economic programs of 1965 was still too new to come under fire. Even so, three groups could be discerned in the politburo. Premier Kosygin, with his overriding interest in improving the performance of the economy Special Report and his general willingness to deal with the West on a businesslike basis, was the leading figure of the moderate faction. He had a very influential voice in policy-making and had gained a relatively free hand in the administration of the economy. A gentlemen's agreement had been reached after Khrushchev's ouster that the top party and gov- ernment posts would not be held by one man and, although Kosygin has never seemed per- sonally ambitious, this agreement on separation of powers made him a natural counterweight to Brezhnev. At the other end of the spectrum were two conservative groups-an ideologically motivated one headed by veteran party secretary Suslov and a neo-Stalinist wing led by Shelepin. The Shelepin group favored a return to the use of fiat, as in the Stalin era, in directing the economy, but without the old reliance on terror and on the personality cult. Brezhnev was seen by many observers at that time as a weak leader-a compromise candidate upon whom all factions could agree. Shelepin's association with the neo-Stalinist wing seems to have been more politically than ideologically motivated. He has always been por- trayed by Soviet sources as dynamic, driving, and impatient with inefficiency, but above all ambi- tious for power. In the period following Khru- shchev's ouster he apparently tried to use the issue of Stalin as a political device to weaken Kosygin's influence and to unseat Brezhnev. In any event, he seems to have underestimated Brezhnev's political skills, as others have. Brezhnev bested Shelepin by an age-old tac- tic-he moved to protect himself against political attack from the conservative wing by adopting Shelepin's position on a number of issues, while at the same time maneuvering to oust Shelepin's supporters from positions of power on charges of factionalism. Brezhnev was assisted in this by the general fear among the other politburo members of Shelepin's ambition and by their suspicion that his commitment to the principle of collectivity was not strong. As a result, at the 23rd congress SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET Shelepin was stripped of his key responsibilities on the party secretarial:, and one of Brezhnev's closest associates-Kirilenko-was brought into the organization. While Shelepin's base of support was be.. ing steadily chipped' away, he continued to be identified as head of the neo-Stalinist wing. The turning point apparently came at the central committee plenum following the June 1967 Arab-Israeli war, when the ranking members of the politburo put down a challenge by Shel- epin's ally-Nikolay Yegorychev, then head of the Moscow party organization-and Shelepin himself was transferred to the relatively powerless post of head of the trade union organization. Since then there have been indications that Shelepin has gradually moderated his views. With his former power base eroded and Brezhnev and his supporters solidly holding down the conserva- tive position, Shelepin was much in need of a new constituency and new issues. A member of the Soviet intelligentsia insists that Shelepin used to be a neo-Stalinist but is now a new man-that he began to develop contacts with liberal intellec- tuals in 1968 and as a result of these contacts has been converted to more moderate views. He is also reported to have made peace with Khru- shchev, and to have told a Western official that Khrushchev had been right after all in pointing to the dangers of Maoist China. The reports are fragmentary and mostly third-hand, but they all suggest a rather remarkable political transforma- Special Report tion. It is not clear that Shelepin has formulated any coherent domestic program, or that he has been won over to the merits of economic reform, but he no longer seems to be at the opposite end of the political spectrum from Kosygin. Party secretary Suslov also seems to have moderated his views, becoming more flexible and less doctrinaire. Shelepin's transformation appears to have been the result of political factors, but Suslov's change of heart may have been the result of his growing concern over the threat from Pe- king and his constant exposure to diverse and frequently revisionist opinions within Western Communist parties. The emergence of Suslov and Shelepin as members of the more progressive wing of the party was evident during the Czechoslovak crisis. Moreover, Suslov still stands as the only So- viet leader since 1964 to criticize Stalin publicly for a political mistake. In a speech in March 1969, he accused him of having erroneously branded the social democrats as the main enemy in the 1920s and 1930s, rather than Hitler's Nazism. Suslov's initiative thus laid the theoretical groundwork for an overture to West Germany that became possi- ble after Brandt's election in late 1969 and ulti- mately led to the treaty signed with West Ger- many in August 1970. It is probably no coincidence that Suslov's peace offering to Western social democrats came only a few weeks after the Sino-Soviet border clash on the Amur River island of Damansky. Suslov, by failing to identify the West as the main enemy, seemed to be trying to mute ideological disagreements in that quarter so as to permit the Soviet Union to concentrate on the "main danger" from the East. Shelest Assumes the Mantle of the Conservative Party With Shelepin and Suslov playing leapfrog in the political arena, the mantle of leadership of the SECRET Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 conservative faction that once belonged to Shel- epin now seems to be worn by Ukrainian party urt ermore, t e recent pub icity given the c is- covery of "new" evidence of another wartime Nazi atrocity in the Ukraine looks very much like an attempt to stir up sentiment against the So- viet - West German treaty. On domestic affairs, however, Shelest hardly fits the conventional image of a Soviet conserva- tive. His views on matters inside the Soviet Union stand in striking contrast with those, for example, of Polyansky, who is a strong advocate of central- ized management and takes a tough line toward intellectual ferment. Shelest has consistently pro- tected a revival of Ukrainian nationalism in lit- erary and cultural life and has pushed for greater authority and independence of action for local officials. In fact, his reactionary stand on Soviet relations with the West may be inspired, in part, by the need to cover for his political vulnerabili- ties on the domestic front. Shelest has clearly had a strong influence on Brezhnev, but their relation- ship is ambiguous. There are signs that Shelest Special Report -9- SECRET aspires to a higher post in Moscow, and he may not have been among Brezhnev's supporters in recent political struggles in the leadership. An extended period of tension in the leader- ship was precipitated in the early months of 1970 when the final figures on the 1969 plan fulfill- ment showed a disappointingly poor economic performance, which resulted in disagreement over the draft five-year plan for 1971-75 up for pre- liminary review at that time. As the year wore on, the thorny issue of resource allocations-specifically the question of agriculture's share of the investment pie in the draft five-year plan-spilled over into public view in an argument between Polyansky, the regime's leading agricultural administrator and a close Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 ~ r j 1U l Kosygin (center) and his two deputies, Mazurov and Polyansky matter up at a politburo session by pointing out to him that the Communist Chinese had praised the novel in question. Even Kirilenko, a fellow member of the Ukrainian clique, is said to have chided Polyansky at the meeting with a remark to the effect that he thought: Polyansky had enough to worry about with all the problems in agricul- ture. On balance, although Polyansky has clearly gained a victory in the field of resource alloca- tion, he does not seem to have been rewarded by any great increase in prestige. With the confirmation of Kosygin as pre- mier, the period of crisis seemed to have passed, and collective leadership returned to an even keel. At the same time, the 24th party congress was finally set for March 1971, with Brezhnev and Kosygin scheduled as the main reporters. And, although there was to be further confusion in working out the draft five-year plan even after the rough treatment it had received earlier, the main decisions concerning the congress probably had been made. The Business of the Congress The congress will be focused primarily on domestic problems and is unlikely to serve as a forum for any dramatic initiatives in the foreign policy field. Its over-all tone and mood are bound, however, to affect the way specific for- eign policy issues are treated by individual speak- ers and, indirectly, to affect future Soviet initia- tives in the international arena. Special Report - 11 - SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 bL k-Ac- 1 Speakers at the party congress will probably adopt self-congratulatory and fairly predictable language regarding Soviet policy in most areas of the world. Advances by the Soviets in the Medi- terranean area will be heralded if balanced by a restatement of their desire for a political settle- ment. Moscow will evince satisfaction at the shift from fighting to talking with China, but will couple this with routine condemnations of "Mao- ism." The Soviet treaty with West Germany will come in for particular praise. Although it is unlikely that anything will be said at the congress that would close the door to continued US-Soviet negotiations on various is- sues, relations with the !US will probably be made to appear particularly gloomy in contrast with other areas of foreign relations, which will be viewed optimistically. Congress speakers will probably see no improvement in these relations in 1971 and will flay the US for its actions in Indochina and for its continuing arms build-up. By all accounts, the congress will concen- trate on economic matters. Although 1970, the last year of the current five-year plan, was gen- erally a good year for Soviet industry and agricul- ture, the growth rate of the Soviet economy has continued to disappoint the leadership, and the technological gap between the East and West has not narrowed. The necessity of coming up with a new five-year plan on the basis of these results has presented the leadership with some hard decisions and has generated intense debate over the past year. The five-year plan is a crucial blueprint for future Soviet economic development. Though subject to change, it nevertheless sets the goals of the regime and ties up investment funds and labor for lengthy periods. The formulation of plans always generates intensive infighting by individual leaders to protect vested interests in the alloca- tions of scarce resources. Special Report After a long delay and numerous revisions, draft directives were published in mid-February. Essentially these directives appear to be a con- tinuation of the past plan and do not reflect any major shifts of allocations from one sector to another. The absence of some crucial figures and the unorthodox and hurried way the draft was issued, however, suggest that some aspects of the plan may still have been undecided at the time of its publication. The murkiest area seems to be the gap between the lofty promises in the preamble of priority attention to consumer goods and the figures in small print. The projected growth of consumer goods output at a faster rate than producer goods is unprecedented in a five-year plan, but the few statistics given suggest a some- what lower rate of progress in consumer welfare as compared with 1966-70. Questions of administrative reform have been even more intractable and politically sensi- tive for the leadership than the debate over alloca- tions. Soviet economic growth has been seriously impeded by an outmoded administrative structure and a system of management that is not suf- ficiently flexible for running a modern economy and promoting technological progress. The basic problem confronting the Kremlin is how to get better returns on capital investments and labor resources in industry and agriculture. The leaders have been hampered in their search for new methods, not only by bureaucratic in- fighting and political rivalries, but by their fear that reforms could lead to a loss of the party's monopoly of power. Events in Czechoslovakia in 1968, where pressure from liberal elements for economic reform quickly led to a dissolution of party control, forcefully brought home to the Soviet leaders the dangers of such reform. On the other hand, more recent events in Poland point up with equal vigor the dangers in failure to get the economy moving. In Poland it was protests by the vaunted working class over food shortages and - 12 - 19 March 1971 SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET the high cost of living that forced changes in the political hierarchy. Thus Soviet leaders are, in a way, damned if they do and damned if they don't. Certainly, the verbiage devoted this winter to future production of consumer goods suggests that the Kremlin has been trying to read the "lesson" of the December strikes in Poland, but it is by no means clear that the leaders agree on what that "lesson" is. It is a measure of the frustration of the leadership in this dilemma that the proposals for "reorganization" of the economy recently under discussion are extraordinarily anemic in compari- son with measures discussed in Eastern Europe. Nevertheless, even these wan Soviet gestures of "experiment" manage to generate partisan debate in the Kremlin and suggest the regional political pressures to which the politburo is subject, in addition to the more conventional institutional ones. Fate of the 1965 Economic Reform The 1965 economic reform was only half of a curiously complex legislative package that also involved the dissolution of Khrushchev's terri- torial economic administrations (sovnarkhozes) and the re-establishment of central ministries. The package was the product of an unlikely alliance between the central government bureaucracy and liberal economists. It aimed at stimulating the economy by giving individual enterprises greater operational freedom and by shifting from admin- istrative methods to greater reliance on economic levers and material incentives for the workers. Some of the more radical aspects of the original scheme were never implemented-they fell victim to the growing caution and conserva- tism of the leadership and to the fears aroused by the Czechoslovak experiments. Reform-minded elements within the leadership were put on the defensive after the invasion, and they have never regained their forward thrust. The reform has now been introduced in most of the larger Soviet enterprises, but the Special Report results have been disappointing in terms of pro- duction figures and costs. High-level support for the principles of the reform has seriously eroded. Few members of the politburo gave more than a passing nod to the subject in their election speeches last June. Premier Kosygin, who was most responsible for the adoption of the reform, was the only one to discuss it at any length. Although he defended it vigorously for what it had already accomplished, he said nothing about carrying it any further. An article in the January issue of the party's leading theoretical journal, Kommunist, contained an unusually warm de- fense of the 1965 principles, however, suggesting at least that the issue is not yet dead. Planks in Political Platforms As hopes for this reform have dwindled, Soviet politicians have squabbled about a number of other proposals in economic management. These schemes are not of far-reaching economic significance, but they do reflect a certain measure of innovative spirit, as well as the historical pro- clivity of Soviet leaders to believe that some rear- rangement of the administrative structure can solve basic economic difficulties. Perhaps more important, these proposals are usually designed to favor special bureaucratic or regional interests, and they therefore become a basis of political competition. Thus the way in which they are treated at the congress will provide clues as to the political fortunes of their promoters in the lead- ersh ip. One scheme that has been advanced as a way of streamlining the economy is the creation of regional production associations. The concept es- sentially involves the grouping for planning and management purposes of enterprises in a given geographic area that manufacture similar products or use similar technology. Advocates of the scheme promise increased efficiency through specialization as well as savings in manpower and money. Regional officials have promoted it as a way of recapturing the power lost to Moscow when Khrushchev's decentralization scheme was abandoned. Associations were promoted in -13- 19 March 1971 SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET Mazurov (left), an advocate of associations and integrated planning Leningrad in the early 1960s, and the Lenin- graders fought unsuccessfully to get the concept firmly established in the 1965 legislative package. Former Leningrad party boss Tolstikov, now ambassador to Communist China, was one of the strongest advocates of the associations. His suc- cessor in Leningrad, Rornanov, has continued this support. Experiments with associations also have a long history in the Ukraine and presumably have the backing of Ukrainian party boss Shelest. The idea has also caught: on strongly in Belorussia and the Baltic, and has been publicly endorsed by former Belorussian party boss Mazurov, who now serves as one of Kosygin's first deputies. The main opposition to production associa- tions has come from the central ministries, which could lose considerable authority and control. Recent efforts to create all-union, rather than territorial-based associations, even though the former have a valid economic rationale, also smack of an attempt by the central bureaucracy to turn the scheme to its own advantage. Oppo- sition has also come from enterprise managers who, in joining an association, could lose some of their recently acquired operational freedom. Kosygin's equivocal comments on the subject sug- gest that he sees little virtue in the idea. The present leaders have made considerable progress in improving farming conditions by in- creasing the flow of money, machinery and fer- tilizers. The cost of agricultural production is exceedingly high, however, and this has generated debate and pressure for reform. The administrative system for agriculture clearly needs improving. Part of the reason for the disappointing return on investment is the lack of coordination in the planning and performance of the various branches associated with agriculture. As a result the farms do not receive the kind of machinery they need, and crops rot in the fields for want of processing facilities while food queues grow longer in the cities. Persistent disagreement, rivalries, and jurisdictional disputes between various regional and central agricultural interest groups, however, have hindered the finding of solutions. The search for answers is complicated by the existence of two types of farms, i.e., state-run farms and the nominally peasant-man- aged cooperatives (kolkhozes), which create prob- lems in working out a new form of administra- tion. As in the case of the industrial sector, programs approved at the 23rd party congress have since been watered down, and consensus has yet to be reached on new directions. One of the schemes advanced and ultimately defeated was the concept of collective farm unions. At the 23rd party congress Brezhnev en- dorsed a proposal, put forward by several regional party organizations, to establish a hierarchy of elected unions to look after the interests of the collective farms. The proposal was backed by Shelest's Ukrainian party organization and by leaders of other republics where collective farms considerably outnumber state farms. Brezhnev presumably sponsored the proposal at the con- gress because of his political ties with the Ukrain- ian leaders, but he may also have seen an oppor- tunity to advance the authority of the party at Special Report -14- SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET the expense of the central state bureaucracy. The Ministry of Agriculture stood to lose considerable authority if the scheme was approved, and the minister made no bones about his opposition. Polyansky, the regime's top agricultural adminis- trator, evidently also sided with the ministry. Polansky--Spokesman for agricultural bureaucracy Despite the decentralization feature of the proposal that should have appealed to regional leaders, there was considerable opposition to the idea from areas such as Belorussia and Estonia, where the leaders apparently felt that a kolkhoz union would conflict with a local interest in inte- grated regional planning. It fell to the outspoken Estonian party boss, Kebin, to present publicly the arguments against the scheme. The combined weight of these republic: leaders and central min- istries smothered the proposal at the Collective Farm Congress in the fall of 1969. Agricultural Reorganization Schemes The issues of agricultural organization are hardly significant enough to be the focus of a disruptive dispute. If they surface in disputes at the congress they will most likely be symptomatic of deeper divisions within the leadership. The problem of how to bring some order into relations among farms and associated state Special Report enterprises still remains, and out of the wreckage of the collective farm union scheme came new bursts of interest in the concept of agro-industrial complexes. This proposal involves the grouping together of both farms and enterprises within a given region to produce, process, and market one or several related products. The scheme has found favor with the Belorussians and Balts, whose lead- ers may hope that the regional basis for planning and management will lead to some decentraliza- tion of power by Moscow. In a sense the agro- industrial complex is the logical companion to industrial associations. Several recent articles in the Soviet press have proposed that planning and administration at the national level should be accomplished on the basis of the agro-industrial concept, rather than by using the present narrow branch ap- proach. The authoritative tone of the articles sug- gests that they had high-level support. It is tempt- ing to see Deputy Premier Polyansky's hand in this. As things now stand, he is responsible for agricultural production but he has no direct au- thority over the industries that produce the machinery and material for agricultural produc- tion or over the industries that process agricul- tural products. The creation of an agro-industrial sector would give Polyansky the opportunity to extend his "empire" significantly. On the other hand, the need to move from branch planning to integrated planning is a theme sounded by First Deputy Premier Mazurov and favored by his fellow Belorussians. A possible clue that he may be involved in the initiative was the insistence in one of the articles on the subject of agro-industrial complexes that the consumer in- dustry should have the leading role; the consumer sector comes under Mazurov's purview. Another approach attacks the problem of lagging agricultural production at the lowest level-the organization of labor and the payment of wages on the farms. This is a proposal for the SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET establishment of small- farm production subdi- visions called "links." A number of kinds of "links" are being widely experimented with, but the basic form is one in which a section of the farm and the machinery necessary to farm it are assigned to a small group of farmers for an ex- tended period of time. Unlike the usual farm brigade paid on a piece- work basis, the members of the "link" are respon- sible for the full cycle of work, from sowing to harvest. Their wages are then tied to the size of the harvest. The proposal has been vigorously pushed by Voronov, premier of the Russian Republic. He is the only member of the politburo who has spoken out on the subject. The "link" has been widely introduced into the Russian Republic and in Belorussia, but there are important pockets of opposition. The Shelest-led Ukrainians are strongly opposed to the idea, and the USSR min- ister of agriculture-probably representing Pol- yansky's views-has also strongly resisted it. There is also an obvious personal-political aspect to the debate. Voronov is a long-time rival of Polyansky and a frequent critic of the agricul- ture lobby. He has used the issue of the "link" as a political device to embarrass the agricultural administators and through them Polyansky, and to drive home the need for more reform and less money in agriculture. Voronov's campaign for "links" seems to be one aspect of a larger but less clearly articulated movement to develop socialist democracy, specifi- cally by encouraging greater worker participation Special Report in management. I n a sense, this push for worker participation, while falling far short of anything like the Yugo- slav experiment, seems to be aimed at giving a new emphasis or direc- tion to the economic re- form-to overcome criti- cism that it merely en- courages management and workers to "chase after rubles." Suslov and Shelepin have been no- ticeably cool in their public treatment of economic reform, and there are hints that they, as well as politburo member Pelshe, are all to one extent or another behind the new emphasis on socialist democracy. Pelshe, who is believed to be a close associate of Suslov, dis- cussed the subject at length in a speech in Milan last fall, and several calls for greater worker par- ticipation have appeared in Trud, the official newspaper of Shelepin's trade union organization. In two recent speeches Suslov also has treated socialist democracy and the need to in- volve workers in management affairs at some length. Characteristically he casts the issue in a larger ideological framework. There are, for exam- ple, hints that he is attempting to shape his views into a program that could be represented as a new advance in the building of Communism-possibly a move "forward" from the present stage of building its material and technical base to one emphasizing equal concern with building its social base. Suslov has strongly endorsed a more impor- tant role for the hierarchy of Soviets as a counter- weight to the state apparatus. It is evident that he views the Soviets-with the party at their el- bow-as vehicles to temper the state administra- tion's overriding concern with production matters and as a vehicle for increasing citizen involvement in communal affairs. A party decree published in - 16 - 19 March 1971 SECRET Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET mid-March outlining measures to increase the authority of local Soviets suggests that this will be a significant theme at the congress. The 1970 tension in the leadership was ap- parently resolved, or at least brought under con- trol, without ripping the collective leadership apart. Although Shelepin and Voronov have clearly lost ground politically, they remain on the politburo. The sharp rivalries and personal ani- mosities that surfaced during 1970, however, sug- gest that there has been some hardening of differ- ences within the collective. Whereas in the past there was evidence of considerable fluidity from issue to issue and from one moment to another, this no longer seems to be the case, to the same degree. This could make Brezhnev's position as SECRET the "chairman of the board" more difficult in the future. It has also become clearer that it is now Suslov, rather than Kosygin, who is the main counterweight to Brezhnev and the man in the leadership to whom the moderates turn. This is partly because Kosygin's authority has diminished in the years since the last congress as a result of the failure of his economic reform to live up to its original promise and also because of Brezhnev's repeated incursions into his field. Furthermore, Kosygin has taken a less independent stand on policy issues in recent years, and his views seem more in harmony with Brezhnev's now than in the past. Suslov's rumored willingness to take the lead in criticizing Polyansky last July is illustrative of The "Seniors" Left to right (front)-Podgorny, Brezhnev, Kosygin, Suslov Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 SECRET his new role. His unusual participation in Novem- ber at a meeting on the work of rural Soviets sponsored by Voronov, served, whether intention- ally or not, to give a much-needed lift to the latter's sagging political fortunes. Suslov is, never- theless, a frail reed. Over the years Brezhnev has been able suc- cessfully to play one faction off against another and has been the chief beneficiary of the Krem- lin's delicate balance of power. He has emerged from last year's political low in a far stronger position than before. The promotional campaign in the Soviet press in his behalf in recent months and his forceful assumption of the trappings and substance of authority are clear signs that he is determined to put himself in the strongest posi- tion possible as the congress approaches. Although there is little reason to doubt that he will remain the dominant figure in the leader- ship, existing checks and balances still appear strong enough to guard the system of collective decision-making and to prevent him from com- pletely dominating the leadership as Khrushchev did. Collectivity rests on a number of organiza- tional and procedural safeguards that were in- formally agreed upon by Khrushchev's successors and have become increasingly institutionalized with the passage of time. These safeguards include not only the deci- sion to keep the two top posts in different hands-certainly one of the main obstacles to the re-emergence of one-man rule-but also an appar- ent agreement to limit political patronage by denying any one leader control over key party and government posts at all levels. This has led to the development of a more bureaucratic approach to the assignment of personnel, one rather akin to a civil service system. As a result, Brezhnev has been able to bring about the removal of various supporters of Shelepin and of other rivals, but he has clearly not had a free hand in selecting their Special Report successors. Thus preliminary information on the new central committee to be elected at the con- gress suggests that it will include a somewhat larger number of Brezhnev's associates than be- fore but not an overwhelming majority. The system of collectivity is also protected to a certain extent by an elaborate system of mutual checks that prevent any one institution from dominating the policy-making process, or one individual from establishing a foothold in more than one institution. This inhibits a member of one faction from moving against his rivals or his boss. Thus the membership on the eleven-man politburo is evenly distributed among the leading institutions-for instance, there are three mem- bers from the party secretariat and three members from the council of ministers. A careful effort has been made to avoid any dangerous overlapping of membership between the various institutions. Thus when Andropov was appointed to the gov- ernment post of KGB head, he was immediately dropped from the party secretariat; his promotion at the same time to candidate member of the politburo, however, broadened his access to all eleven full members. Finally, there is the main- tenance of a balance of power among individuals at all the levels of the party and government. For instance, the influence of Brezhnev's associate, Kirilenko, in the party secretariat is balanced by the presence of Suslov. Again, there are two first deputy premiers, Polyansky and Mazurov, both of whom are associated with rival political and re- gional groupings. I n fact, the system appears to have worked almost too well. There have been no alterations in the composition of the politburo since the last congress, suggesting that the delicate balance of power has made it exceedingly difficult for the leadership to make any change in its own mem- bership. Even the most routine change might en- danger this balance. Thus several members of the politburo who appear due for retirement because of advanced age or poor health may be held in office because of problems in replacing them. At the very least the congress should make a decision _18- 19 March 1971 SECRET Approved For Release 2008/10/10: CIA-RDP79-00927A008600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 SECRET concerning the ambiguous status of Suslov and Kirilenko. Suslov was given protocol ranking as the secretary second to Brezhnev at the last party congress, but since then Kirilenko has gradually taken on most of the responsibilities as Brezh- nev's second-in-command. It would appear, however, that there will be no significant personnel actions or shift in the present balance of the (leadership's power. This being the case, Brezhnev will have to continue to search for the middle ground and to work for compromises among the same factions and group- ings that presently exist. While Shelepin, his prin- cipal rival in the past, has lost considerable ground politically, many Soviet officials still see him as potentially the strongest leader. Shelepin has now apparently joined with others in pressing Brezhnev to adopt more flexible, innovative poli- cies. Brezhnev in the future must either get rid of him or pay heed to his views. The seeming stalemate in the leadership is symbolized by the ambiguous status of Stalin's image. Since the 1965 "rehabilitation" of his Special Report record as the man who led the Soviet Union to victory in World War II, there have been various low-key attempts to broaden this to include other facets of his career. Both his collectivization of agriculture and his industrialization program of the 1930s have been branded "successes" and declared off-limits to criticism. These "successes" are usually credited to the party and not to Stalin by name. It has not been possible, however, to erase from Soviet memories Khrushchev's revela- tions of the bloodshed and injustice that were the price for these achievements. The excesses of col- lectivization and the bloodshed of the Great Purge apparently has proved too difficult to treat publicly, and the long version of the official party history published this winter simply skipped the years from 1930 to 1937. In the past, Soviet liberals used Stalin's "mis- takes" as arguments for change. Conservatives now would like to use his "successes"-and Khrushchev's "mistakes"-as arguments against change. The two main participants at the 24th party congress may be the shades of Stalin and Khrushchev, engaged in a struggle for the soul of the congress. SECRET Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Secret Secret Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 25X1 Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4 Next 39 Page(s) In Document Denied Approved For Release 2008/10/10: CIA-RDP79-00927AO08600050001-4