CURRENT INTELLIGENCE REVIEW

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79S01060A000100090001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 21
• Document Creation Date: December 22, 2016
• Document Release Date: June 22, 2012
• Sequence Number: 1
• Publication Date: August 22, 1951
• Content Type: CIAPER

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1 1 Ur OE Lfl.C,1
Copy No.
53
CURRENT INTELLIGENCE BFV]EW
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orrice of Current Intelligence NO CHANGE IN CLASS.
U DECLASSIFIED
CLASS. CHANGED TO; T,
CENTRAL IN`TELJ IGEN.A"a AGENCY NEXT 11 HR.VJ DATE:.---_I n-0 -
0L I No. 2
22 August 1951
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THE SOVIET WORLD --------------------------------------------- Page 3
US STRATEGIC MATERIALS AND AFRICAN TRANSPORT PROBLEMS -------- Page 6
Africa south of the Sahara has an increasing importance for
the US as its primary source of certain essential raw materials
The procurement of these materials is in large part a problem of
maiitaining and improving the continent ? s basically inadequate
transportation facilities. Although there are long-range pro-
jects for improving the transport situatibn in Africa, it will
take many years and vast capital expenditures to make possible
the full exploitation of the continent
THE FIVE POWER PACT THEME IN RECENT SOVIET-COMMUNIST PROPAGANDA
AND DIPLOMACY -?m?? ------ --m?omm------------ -------m? Page 9
Since early this year, the Soviet Union has used advocacy
of a Five Power Peace Pact as chief propaganda proof of its
desire for world peace. As in many Communist propaganda, drives,
the purpose of this campaign is not the attainment of the alleged
goal, but the psychological exploitation of an emotional need.
The Five Power Pact idea will probably continue to be the main
theme of Communist peace meetings and an important part of Soviet
diplomatic statements.
"SUPPRESSION OF COUNTER-REVOLUTIONARIES" IN COMMUNIST CHINA, Page 11
More than half a million persons have been executed in
six months of the current campaign for the "suppression of
counter-revolutionaries" in Communist China. The campaign is
aimed not at any particular group but at the systematic intimi-
dation of the Chinese people as a whole. Several million Chinese
are expected to fall victim to the campaign in the next few years.
WORLD COMMUNISM-. THE BERLIN YOUTH FESTIVAL ------------------ Page 12
Although somewhat handicapped by the difficulties inherent
in the staging of such a large spectacle, the Communist World
Youth Festival served to strengthen the Communists. hold on the
youth of the Soviet Orbit.
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WEAK INDONESIAN GOVERNMENT FACED WITH INCREASING COMMUNIST-
INSPIRED LAWLESSNESS ----------------------------------- ----- Page 14
The recent arrests of several hundred pro-Communists by the
hitherto irresolute Indonesian Government probably forestalled
nation-wide, Communist-inspired disturbances on 17 August--
Indonesian Independence Day. However, this forceful policy is
not expected to be continued; the government is preoccupied with
internal dissension and does not appear even yet to appreciate
fully the Communist menace in Indonesia.
POPULAR ANTI-COMMUNIST NATIONALISM IN POLAND CONTINUES UNABATED
Page 16
Despite increasingly harsh Communist steps to hold the highly
nationalistic and aiti-Communist Polish people in check, recent
evidence indicates that Polish resistance sentiment continues to
be strong. The government will continue its campaign to crush
Polish nationalism, despite the faxt that such measures have thus
far been self-defeating.
PAPAGOS STILL EXPECTED TO WIN GREEK ELECTION ----------------- Page 17
In spite of the difficulties he faces. Field Marshal Papagos
is still expected to win the elections, with the Liberals, the
Progressive Union of the Center, and the Populists following in
that order.
LATIN AMERICAN PETROLEUM IN A WORLD SHORTAGE ----------------- Page 19
Latin America is: the only petroleum surplus area that is certain
to remain in the Western sphere of influence in the event of a
general war. Production is increasing and can help alleviate the
Iranian shortage, but major increases depend on advance planning
and availability of equipment.
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THE SOVIET WORD
While Moscow?s intentions in accepting an invitation to the Japanese
peace conference still remain unclear,, the Soviet Goverment apparently
intends to make some proposals of its own at San Francisco,, perhaps even
in the form of a counter-draft of the proposed treaty.
Communist propaganda has indicated that the Soviet delegates'will
concentrate their fire on American military bases and alleged Japanese
remilitarization,, which they insist the present treaty permits. They
would also demand a ban on Japanese participation in regional security
arrangements, and call for unrestricted development of the Japanese
economy,, including trade with Communist China.
The Soviet strategy seems designed to capitalize on the objections
of some Asian nations to various features of the US-UK draft treaty.,
such as its territorial provisions and its failure to provide for Chinese
Communist representation. The demands of such countries as Indonesia
and Burma for reparations are not likely, however,, to receive much support
from the Soviet Union. There have been no suggestions in past Soviet
diplomatic notes that Japan should pay reparations. Moscow would like
to place itself in a more favorable light with Japan; moreover,, the issue
of reparations,, in view of Soviet removals from Manchuria,, would be a
poor one if the USSR does not wish to irritate Communist China further
on this point.
To obtain some moral support at San Francisco, the Soviet Union has
evidently decided that both Poland and Czechoslovakia, the only two of
its Satellites to receive invitations,, shall also attend the conference'.
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Official Communist statements and current propaganda concerning
the conference appears to be more in keeping with a Soviet effort to
induce Asian nations not to sign,, and then to call a predominantly Asian
conference to consider a Soviet-Chinese Communist sponsored draft.
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`Meanwhile, the Soviet request for a lend-lease meeting in Washington
indicates that an ostensibly reasonable proposal for settling Russia's
lend-lease accounts with the US may be planned as the latest step in the
currently intensified "peace" campaigns,
It may, however,, reflect only the.Soviet Government's feeling that
it is at a propaganda disadvantage on this issue. The last round of talks
broke down in February over the monetary settlement and the USSR's refusal
to return naval and merchant ships,, The ships are important to both the
civilian and-military economy of the USSR, with the merchant ships, for
example, representing about one fourth of the gross tonnage of Soviet mer.
chant shipping'
The US Legation in Vienna
has recent information indicating that the Satellites regard Antwerp as
a port through which clandestine trade can be diverted with comparative
ease Meanwhile, a Czechoslovak trade delegation to Austria is demand-
Ing large amounts of Austrian strategic materials, including heavy
machinery, pig iron, steel and ball bearings, The Czechs are threaten-
ing to out off coal and sugar exports to Austria unless their demands are
meta
Satellite preoccupation with production difficulties continues, The
Czech Government is revising labor norms upward in order "to raise the
productivity of labor and to lower production costs," according to an
announcement by the Czech Minister of Heavy Industry,, He termed present
norms "soft" and emphasizedthat the increased norms must be met by the
adoption of Soviet Stakhanovite methods.
Communist dissatisfaction with industrial production in this eco-
nomically important Satellite is also indicated by high-level criticism
of the poor implementation of a recent decree ordering the transfer of
over 75,000 white-collar workers into factories and mines. The US
Embassy comments that this and other recent decrees pertaining to labor
controls reflect Communist failure to gain labor's cooperation in meet-
ing the difficult economic problems facing the country.
Reports from several of the East European countries point to a
continuing trend of tighter restrictions on Western diplomats, despite
the current Communist propaganda campaign regarding "peaceful coex-
istence," The US Embassy in Prague reports several Communist attempts
to open Western diplomatic pouches,, According to the US Embassy In
Warsaw, further Polish action against the US is possible, including
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either the expulsion of the embassy's information officer or the prose-
cution of USIS Polish personnel. The French Goverment is planning
retaliatory action against new Albanian travel restrictions on French
diplomats in Tirana,; In Rumania, the diplomatic missions of the US, UK,
France,, Italy and Turkey are operating under severe harassment,
The Yugos av Government has expressed its "growing concern" to the
US Embassy in Belgrade regarding a recent increase in Cominforri border
incidents, Although there has been a new rise in such incidents,, no
firm evidence is available that the Satellites intend more than harass-
ing tactics against the Tito goverrm nt.
Inside the Soviet Union, an old idol made room for a new one when
the Presidium of the Supreme Soviet announced on 14 August that the
anniversary of Lenint.s death was no longer to be celebrated,, as hereto'
fore,-on 22 January. In recent times, this has been virtually the only
occasion' on which Stalin was Ove # a-,wftd by his illustrious pre-
decessor, Lenin. A line with the trend of deifying Stalin that has
developed in recent years, the discontinuance of his holiday serves
notice on party members and the Soviet citizenry alike that Staling now
going on 72, will henceforth stand alone on his pedestal,
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Since World War II and particularly since the start of the United States
rearmament effort, the importance of Africa south of the Sahara as a source
of strategic raw materials has been steadily:increasing. At present!. however,
inadequate transport facilities are a major factor_ in delaying deliveries and in
preventing the-immediate development of potential sources of supply,
For a number of essential commodities, including not merely tropical
products but also uranium and various metals used in high grade steels, cer-
tain African areas are officially rated as the primary American source -4.e.,
as supplying over 60 per cent of normal peacetime requirements. For addi-
tional,essential commodities, African areas are rated as a major present
soiur?ce; they are also known to contain further important mineral resources
as yet unexploited? Areas of particular significance are the Union of South
Africa, the Belgian Congo, the Rhodesias, British East Africa, Nigeria and the
Gold Coast. (See accompanying map and table,)
All the ordinary means of transport in Africa are beset with serious
difficulties. Few of the rivers are navigable for any considerable distance
without interruptions Railroads are narrow-gauge, with the gauge differing
from one territory to another,. the lines are nearly all single-track and
often poorly engineered.. Shortage of rolling-stock is almost universal and
much of the present equipment antiquated. Many of the seaports. suffer from
chronic congestion because of poor rail connections or insufficient accomo-
dations for shipping. Roads are inadequate throughout the continent; con-
struction is costly and plagued with particular obstacles such as the hard
laterite soil of French West Africa or excessive rainfall in other areas.
At present African roads are quite unsuitable for heavy industrial traffic.
Current African transport problems are roughly of two kinds. One con-
sists simply of a higher than normal incidence cf the kind of railroad trou-
bles that occur in any area., but which have more serious consequences in
Africa owing to its narrower margin for error, For example, when heavy rains
washed out a rail line in Tanganyika a few months ago, shipments of sisal
from the interior were suspended for some time and work at the terminal port
practically ceased. A month later in the Union of South Africa a serious
domestic coal Shortage resulted in the commandeering of all freight cars
usually employed in moving strategic manganese and chrome ore toward the
United States. Labor troubles in recent weeks on the South African rail-
roads have also added to'American strategic supply problems,
The second:and more serious kind of transport problem concerns the
long-range efforts being made to remedy the basic difficulties indicated
above. A number of these efforts are at present lagging.
The inter-governmental Central and Southern Africa Transport Conference
held at Johannesburg in late 1950 represented one of the initial moves cal-
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culated to integrate gradually the facilities that had grown up chaotically
under a number of different political'sovereigntesb Agreement was reached
on a few technical points, such as the adoption of a standard African rail-
way guage of 42 inches, and it was hoped that a p rmanent organization would
be established during 1951. Portugal, however, has so far opposed this,
and the interim organization was reported in mid-August to be engaged merely
in collecting and disseminating information on a very rudimentary basis*
Official American observers at this and other African transport conferences
have suggested, so far without success, that a comprehensive transportation
survey be made.
Other governments nevertheless recognize the inadequacy of existing
transport systems,,,. and there are various plans for their improvement on an
individual territorial basis, Much of the money to be spent in the ten-
year development plans of the Belgian Congo and the various British colo-
nial territories is earmarked for transportation. The Portuguese East African
port of Beira,, which serves the Phodesias 'and Nyasaland as well,, is being
expanded to cope with its increased traffic;' but the slowness with Ajoh these
improvements are progressing has been forcing limitations' in chrome mii iug' in
Southern Rhodesia. To relieve port congestion at :Hera, and also 'wo make
possible the exploitation of iron and coal deposits in southern Tanganyika,
a British rail survey is investigating the possibility of linking the North-
ern Rhodesian and Tanganyikan railways, with an outlet to the sea at Dar-es-
Salaam. Within the. past year a branch line has been opened from the latter
railway to the lead and copper mines at Mpanda, Farther north,, work has
been started on an extension of the Kenya-Uganda railroad which will permit
full -development of western Uganda's rich deposits of copper and cobalt,
used in hardening steel; but completion of this line is not expected until
19550
The US'has indicated its interest in African transport problems by
allocating,during the past two years, over four million ch llars of ECA funds
to assist road building projects in various British, French and Belgian
colonies. A number of these projects are already under way. On the whole,
however,,, it is clear that it will take many years and vast capital expendi-
tures before the improvement in the African transport system is such as to
permit adequate exploitation of the continent,
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1J
} ANGLO-EGYPTIAN SUDAN
LEONE
Rail Systems
Proposed Extensions
O Capitals
o Rail Centers
Cities - Cities underlined are
mentioned in text.
Jo annsatiu
GANDA
, i(omp a
KENYA f
~Ab/robl
PRIMARY SOURCE
MAJOR SOURCE
IMPORTANT SOURCE
(i. e. supplying over 60% of U. S. peace-
(supplying 20% to 59% of U. S.
(supplying 5% to 19% of U. S.
time requirements, excluding stock-
peacetime requirements)
peacetime requirements)
piling)
URANIUM?
COBALT (ferro-alloy)
INDUSTRIAL DIAMONDS
PYRETHRUM(for insecticides)
COLUMBITE (anti -corrosive for steel)
BELGIAN CONGO
PALM OIL(flux for tin)
TANTALUM(anti-corrosive platinum
substitute)
UNION OF SOUTH AFRICA
CHROMITE(anti-corrosive for steel)
ASBESTOS
MANGANESE(ferro-alloy)
INDUSTRIAL DIAMONDS
CORUNDUM(abrasive)
BRITISH EAST AFRICA
KYANITE(for furnace linings)
PYRETHRUM
SISAL
INDUSTRIAL DIAMONDS
NIGERIA
COLUMBITE(anti-corrosive for steel)
TANTALITE (source of tantulum)
MANGANESE(ferro -alloy)
GOLD COAST
BATTERY-GRADE MAGANESE
CIIROMITE(antl-corrosive for steel)
NORTHERN AND SOUTHERN
ASBESTOS
TANTALITE(sour cc of tantalum)
RHODESIA
t
i
D
ear
sed as the base
1945 i
.
y
a.
s u
a
c
SOURCE: U. S. Munitions Board Third Interim Report, 15 November L950: Key Foreign Facilities and Supporting Econom
* So listed, but without specific figures.
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THE 'FIVE POWER PEACE PACT THEME IN RECENT SOVIETuCO& NIST
PROPAGANDA MID DIPLOMACY ?
Since early this year, the Soviet Union has used--advmeacy of._a_Five
Power Peace Pact as chief propaganda proof of its +fire for world peace.
Originally proposed by the USSR at the 1949 UN General Assembly
session, the idea of a peace pact between the Five Great Powers (US, USSR,
Great-Britain,-France and Communist China) was adopted as a major goal of
the Comm mist-created World Peace Council in February 1951? Since then
it has been one of the main themes of Soviet foreign and international
Communist- propaganda. Stalin alluded to such a pact in his _ay a
interviews and most recently, the proposal was included in.Shvernik's
letter to President Trnan and in the resolution of the Presidium of the
Supreme Soviet of the USSR, The San Francisco conference is another
occasion on which the Soviet Union may raise this'` ssue as a means of con-
fusing world public opinion,, although there is as yet no concrete evidence
that a Five Power Pact will be among the Russian counter-proposals,
The USSR Is fully cognizant of the fact that the Western powers will
not participate in a fact of this type outsi a the United Nations, and
that ltlb.?U : +`'at enter into one which includes Communist
China, USSRproposals.to this. effect were overwhelmingly rejected by the
UN General Assembly In 1949 and 1950. A Soviet-member of the UN'Secre-.
tariat stated *''the time that the USSR realized such a pact would have to
be negotiated through normal diplomatic channels. rather than through the
UN'*
It is clear, therefore, that the chief reason for the continued
emphasis on a Five Power Peace Pact is the propaganda value of such a
simplified concept6 One need only recall the ma is effect of the Kellogg.
Briand Pact, which convinced millions of people (including its authors)
that war had been outlawed for all time, to realize that the Five Power
Peace Pact idea provides an excellent psychological focal point around
which to build the structure of an allegedly peaceful foreign policy.
Accordingly, the World Peace Council last February inaugurated a
global signature drive for a Five Power Peace Pact,, Following the pattern
of last yearns Stockholm signature appeal, local Peace Committees through-
out the world made the signature drive their primary summer activity, and
in some cases, used it as the sole excuse for their existence. The number
of signatures oollected in this drive is to exceed the alji(gOtotal of
500 million collected under the Stockholm appeal, However$, as in the
earlier drive, signature collection in the USSR is being delayed to the
end,, and no final date for the conclusion of the world-wide campaign has'
been set, This leaves Moscow free to prolong the campaign in line with
the requirements of Soviet foreign policy and to.terminate it at the
moment when the results can be propagandized to the fullest.
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in many Com.unist propaganda drives, the purpose of this campaign
is not the attairment of the alleged goal,, but the psychological exploim
tation of an-emotional need - in this case the desire for peace, There-
fore., the Five Power Pact idea will probably continue to be the main theme
of Connust peace meetings and an important part of Soviet diplomatic
statements for some months to come,
Just,as the Five Power Peace Pact drive replaced the Stockholm
Appeal to outlaw the Atomic Bomb,, it,, too9 eventually will be replaced
by another theme of similarly unrealistic nature. The Five Power theme
as such, however, will, probably not be permitted to rot away but will be
brought out of storage whenever the political climate is suitable for its
appearance,,
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"SUPPRESSION OF COUNTERREVOLUTIONARIES" IN COD
IIUNIST CHINA
More than half a million persons -- at least one out of every
thousand Chinese -- have been executed in six months of the current
campaign for the "suppression of counter-revolutionaries" in Communist
China. There is little doubt that the purpose of the drive is to intimi-
date the Chinese people as a whole, and that a million Chinese will be
killed to this end in 1951.
While a "counter-revolutionary" is officially defined as any person
"hostile to the people," the new campaign is largely distinct from the
?Bbandit-suppression" effort and the continuing purges of the Chinese
Communist Party and of the now-subservient parties associated with it in
the regime. The drive is directed not against any particular group or
groups, but against all elements of Chinese society, and seeks to demon-
strate that the.regime demands total subservience' of its subjects.
Contrary to widespread speculation that the campaign has been an
measure designed to deal with increased anti-State activities,
it was in fact undertaken only when the Peiping regime was in effective
control of the country. During the extension and early consolidation of
Communist control in China, the party leadership had pursued a lenient
and conciliatory policy toward opposition elements. By the end of 1950,
however, Peiping was prepared to offer a fresh illustration of the
principle that the terrorism of a totalitarian movement, as distinguished
from a static dictatorship, increases in direct proportion to the stability
of the regime,
There are indications that the most easily identified opponents of
the regime have already been eliminated. Whereas Communist figures,
.earlier in 1951 revealed that about half of those arrested were executed,
in recent weeks the proportion has been much lower, with the majority
receiving sentences at hard labor. Nevertheless, thousands of persons are
still arrested daily, and public statements emphasize that the campaign
must continue indefinitely.
The "suppression of counter-revolutionaries" is certain to be a
permanent feature of Chinas new democracy." Continuous and officially-
incited persecution of some part of the population has been observed to be
standard operating procedure in a totalitarian state. One Chinese Communist
spokesman, in asserting that the slaughter must continue as long as external
e e lies of the regime exist, has stated frankly that "suppression" will
go on even after domestic opposition to the regime has no means of expression.
In the course of the next few years, several million. Chinese are expected
to fall victim to Peiping9s effort to erase existing opposition, to;.Make
future opposition impossible, and to dominate its subjects in every aspect
of their lives.
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WORLD CO TSMs THE BERLIN YOUTH FESTIVAL
- Effective oounter etion by the Wester democracies, logistic diffi-
culties inherent.iri a gathering of this size, 4nd Cormmnist inability to
exercise constant. effective control over such a .travagatmas have led' Wos-.
tern'observers to call'th,eBerlin Youth Festival a failure,, The Festival,
however., fulfilled much' of its intended mission by. sr
(a) strengtheziing .Corot unis i s hold on the youth of the Soviet world
through the excitement Hof the exhortatirs and, the spectacles;
(b) cleverly renipulating.foreign delegationss, which will spread
favorable reports.at home to augment Communist propaganda; and
(c) spelling out the demands of the "peaces campaign6
The basic Communist campaign to, capture youths mind and energy in
the interest of Soviet expaualpn was ,certainly furthered in Berlin.. The
massing of two million yot1' people from 104 countries in a demonstration,
of allegiance to Stalin, ' to. the USSR and to Communism is potent evidence
of Soviet organizing abilities and the possibilities still inherent in
the Soviet appeal: to the yearning for peace and unity. Despite the varied
slogans for 'peace"., the Festival was..turned into a clamorous display of
hatred forthe.West.
Cost use-of the term "youth' accomodates a wide range of years;
and many delegatesp especially the leaders and the "hard care" always
present at Communist m eetings g, were over thirty. The majority of the pare-
ticipants at the.;Pestival,,h?wevers, were young people who have been
isolated from any other than Communist influence during their formative
years. The Western influences to which many of them were briefly exposed
during the Festival may not endure long after their return to a Co=mist
environment
On the other hand, two aspects of the Festival gave evidence. that
Eastern youth has not been won over to Communism as completely as was
feared. A general apathy.9 not present at previous festivals, was notice-
able at all times when the "hard core" of ten percent could not sweep the
delegates with its enthusiasm, and in unprecedented defiance of Communist
orders. 600,000 East German: and Satellite youth flowed into West Berlin
to see the-sightso to eat foods unknown in the Soviet Orbits and to meet
Westerners especially Amer?cano.
They asked by the. hundreds for asylum,: and carried off with them to
the East over 150Og0OO pieces_of Western literature. Their belief in
Western strength convinced their entertainers that there is an unexpected
potential among these Eastern youft people on the side of -the fight
against Conmtanim
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The Festival, however, undoubtedly furthered the Soviet cause smo
the foreign delegates and West Germans; who were given preferential treat-
ment and suffered none of the inadequacies of food and housing encountered
by East German h0, To a large extent they were kept apart from non..
festival contacts. Their reports will be favorable and their enthusiasm
renewed; only a portion of the Western delegates appear to have been
disillusioned by the atmosphere of Stalinism. The presence of the foreign
delegations can be built into "evidence" of worldwide support of Soviet
pol,i.cies; it must have impressed German youth as a sign of backing in
other countries for Soviet aims in Germany,
However, the World Youth Festival is not likely to have any marked
effect on the position of Communist youth in West Germany,. Some West
German. delegates upon. returning to their homes will agitate for a Five
Power Peace Pact and a German Peace Treaty this year, and against German
rearmament; but they cannot conduct an open campaign because of the ban
on the Freie Deutsche Jugend and its activities in all the Laender?
The Festival"s importance in promoting the fraudulent Soviet "peace"
campaign was clearly evident from the start in its official, name . "The
World Festival of Youth and.Students for Peace?!' It was evident as well
in the "peace" demonstrations prepared for its opening and closing sessions,
in the "Peace March" which climaxed the event, and in the fantastic accu.
sations of aggression hurled at the West throughout the Festival"s dur-
ation?
13
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PEAK INDONESIAN GOVEFNM T FACED WITH INCREASING COMMUNISNIN'SPIRED LAWLESSNESS
The recent arrests of several hundred prof ommdnists by the hither-
to irresolute' Indonesian Goverment probably forestalled nation-wide,
Communist-inspired disturbances on 17 August-Indonesian. Independence
Day. However, this forceful policy is not expected to be continued:
the government is preoccupied with internal ditsension and does not
appear to appreciate fully the Communist menace in Indonesia.
Lawlessness, principally in Java but affecting the entire nation,
is Indonesia7s primary problem, It has retarded the production of raw
materials vital to the c ountrye s economy; delayed rehabilitation of
industry, facilitated Communist activity, and undermined the peoples
confidence in their government, Although the strength of armed dissident
groups in Java, where two-thirds of the Indonesian population lives, is
estimated to have decreased in recent months by approximately 30 percent,
evidence strongly points to a consolidation during the same period of
remaining lawless activity under Communist direction.
The Communist Party itself is constantly strengthening its posits or
Severely weakened in 1948 when'it attempted unsuccessfully to overthrow
the existing governments the party has noticeably regained and a landed
its strength since mid-1950.- Althou#i it is not yet prepared to attempt-
another armed revolt or directly to challenge the government politically,
it is an ever increasing threat to government authority.
The party9s greatest strength lies in its dominance in the labor
field, where it is strong because of its control of Tndonesiags largest'
labor federation and its thorough infiltration of the Ministry of Labor.
In addition,"it maintains close contacts with the Chinese Communist Party
of Indonesia, This party strongly influences the more than 2,000,000
Chinese residents-about 2 percent of the Indonesian population--who
exercise, through their position in the country., far greater influence
than their numbers would indicates
The government has been hampered-in dealing with lawlessness and
with Communism by its ill-disciplined, ill-equipped and ill administered
security forces and by the lack of cooperation within the cabinet .itself.
The cabinet includes eight-parties but is based principally upon an
uneasy coalition of Indonesia $'a two largest political groups-the moderate'
Masjumi (Moslem League) and the leftist-oriented Indonesian National Party.
It is the "result of compromise efforts to achieve a moderate government
which at the same time could be assured parliamentary support. As con-
stituted, the government possesses a solid parliamentary majority and thus
should have been able to take the decisive measures necessary for achieving
Declassified in Part - Sanitized Copy Approved for Release 2012/07/25: CIA-RDP79S01060A000100090001-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/07/25: CIA-RDP79S01060A000100090001-5 25X1
law and order immediately upon its assumption of authority. However,
.the cabinet is so absorbed with inter-party rivalry that important
deeisione'are not made until they are belatedly forced by the pressure
of events
It required a sudden. and apparently Corn m unistoordi..nated resurgence
of lawlessness during the first `week of August topred theivernment
into taking. firm measures" against these insecure- c ctditions. A series
of violent incidents throughout Java-including an attack on the D;akarta
port area by 200 to 300 men wearing Communist insignia--provoked the cab-
inet on 7 August to order drastic steps against "anti national movements
which might impair'the government's authority and tend too disturb society."
Between 11 and 16 August in-a series of widespread raids in Sumatra
and Java, government forces arrested hundreds of persons including Com-
munist Chinese, top 1