CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A006000180001-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 17
• Document Creation Date: December 15, 2016
• Document Release Date: September 19, 2002
• Sequence Number: 1
• Publication Date: October 18, 1961
• Content Type: REPORT

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18 October 1961
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DIA AND DOS HAVE NO OBJECTION TO DECLASSIFICATION
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DIA AND DOS review(s)
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18 October 1961
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
1. USSR: Khrushchev's speech to 22nd Party Congress.
(Page i)
HIM
4. South Vietnam: 2
(Page v
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6. Algeria: European mob attacks on Moslems yesterday
could provoke clashes throughout Algeria. (Page vii)
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9. Brazil: Government presses for assurances that aid....
promised the Quadros administration will be forthcom-
ing. (Page viii)
10. Ecuador: President Velasco considering closing congress
and assuming dictatorial powers. (Page viii)
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CENTRAL INTELLIGENCE BULLETIN
18 October 1961
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*USSR. The TASS summary of Khrushchev's report to th
22nd Party Congress on 17 October contained a generally
moderate and routine restatement of established Soviet for-
eign and domestic policies. His formal and specific with-
drawal of the yearend deadline for signing a German peace
treaty probably was intended to meet Western objections to
negotiating under pressure of threats of unilateral action.
His positive assessment of Gromyko's recent talks with US
and British leaders and his reaffirmation of the USSR's read-
iness to seek a "mutually acceptable and agreed settlement
through talks" were also aimed at opening the way for formal
negotiations on Berlin and Germany. He specified, however,
that a German settlement cannot be "postponed endlessly"
and repeated that a German peace treaty will be signed with
or without the western powers.
Khrushchev claimed that the "forces of socialism" are
stronger than the "aggressive imperialist forces," and warned
against the dangers of a "positions of strength" policy. This
reflects his confidence that the West can be induced to grant
concessions which the USSR could represent as marking a
fundamental change in the status of West Berlin.
Although Khrushchev repeated the major ideological po-
sitions which were the targets of Chinese Communist attacks
in 1960, his restraint in discussing these issues, and his ges-
tures according the Chinese delegation headed by Premier
Chou En-lai a special position, indicate the Soviet leader's
desire to maintain the uneasy truce worked out at the Moscow
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conference of world Communist leaders in November 1960.
However, Khrushchev's unprecedented attack on the Albanian
leaders for rejecting the 20.th.Soviet Party Congress condem-
nation of the "cult of personality" will place the Chinese in
the difficult position of either having to support the Albanians
or acquiesce in Khrushchev's attack.
Khrushchev contended that events had confirmed the cor-
rectness of the policy lines adopted by the 20th Party Congress
in 1956, and claimed that the chief results of the party's policy
had been the prevention of war. He saw a "prospect of achiev-
ing peaceful coexistence for the entire period in which the social
and political problems now dividing the world will have to be
solved:' In addition, he reaffirmed the point laid down by the
21st Congress in 1959, which drew strong Chinese objections,
that "it may actually be feasible to banish world war from the
like of society even before the complete triumph of socialism
on earth, with capitalism surviving in part of the world:' Khru-
shchev also listed continued adherence to the "principles of
peaceful coexistence" as the primary task confronting the So-
viet party, with the maintenance of bloc unity listed second.
In the economic section of his speech Khrushchev appears
to dampen Soviet consumer hopes for a sharp improvement in
living standards as the Soviet Union "builds communism," He
strongly emphasized that heavy industry would play the "deci-
sive role" in creating the material base for communism and
his remarks on consumer welfare lacked the conviction of ear-
lier promises.
According to Khrushchev, gross industrial production
increased almost 80 percent from 1956 to 1961. This indicates
that industrial production in 1961 will be between 8.5 and 9 per.-
cent, somewhat below the 10 to 11 percent annual increases
announced in recent years, but in line with the increase planned
for 1961. He also declared that the Seven-Year Plan (1959-65)
would be overfulfilled.
Khrushchev was less optimistic than he has previously
been about agricultural prospects. He claimed that grain
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procurement was well above that of the past two years but
still somewhat below the deliveries in the 1958 record har-
vest year. He did not, however, commit himself to a total
harvest figure for 1961.
Khrushchev's public criticism of Albania climaxes more
than a year of steadily deteriorating relations with that coun-
try. Khrushchev asserted that he would never compromise
with Albania's opposition to Soviet efforts to eliminate the
"cult of the individual"--a reference to the continued Stalin-
ist adulation rendered Enver Hoxha's one-man dictatorship
in Albania. Khrushchev avoided arguing other differences
with Albania, although there is little doubt that they are un-
resolved. His use of the issue of the "cult of the individual"
and his promise that the Soviet Union would "do all in its
power" to keep the Albanians in the bloc, indicates that Khru-
shchev's aim is to overthrow the present Albanian leadership
rather than to read Albania out of the bloc.
Khrushchev renewed the attack on the anti-party group
in the USSR, which has long since been ousted from power,
and for the first time publicly named Marshal Voroshilov--
former titular chief of the Soviet state--as the seventh mem-
ber of the group which had sought to unseat him in 1957.
He further stated that the "elaboration" of a new state
constitution is about to begin. Work on a revised basic law
has evidently been under way for more than a year, and a
draft may be ready for publication before the end of 1961. All
signs at present point to a constitution whic ttle more
a legal reflection of the new party program,
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Communist Guerrilla Activity in South Vietnam
Major areas of Viet
Cong concentration
PHNOM PENH
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18 Oct 61 CENTRAL INTELLIGENCE 13ULLETIN
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South Vietnam:
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with the advent of the dry season in a few weeks, South Viet-
nam will enter a "now or never" fight with the Communist
guerrillas and that further countermeasures must be taken
against the Viet Cong.
since the Laotian and Cambodian borders cannot be seale
against Communist infiltration, other means are needed to
relieve Viet Cong pressure in the South.
in connection with General Taylor's visit, the Viet ong
has ordered increased attacks on villages and army units and
grenade attacks on Americans in Saigon.
n an estimate which we can neither confirm nor deny,
he Viet Cong now fully controls about 10 per-
or less" under Viet Con influence in economic, political, and
propaganda matters
cent of the country's 2,700 villages; that 30 percent of the
villages "genuinely" support the Diem regime; and that the
remaining 60 percent are generally anti-Communist, but "more 25X1
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restraint in the face of European bombings and mob action
*Algeria: European mob attacks on Moslems in Oran on
17 Octo er, following several days of smaller Moslem-Euro-
pean clashes, could provoke Moslem retaliation throughout
Algeria. The US consul general in Algiers feels that Moslem
already erupted in Algeria. The European attacks, probably
encouraged by the anti- De Gaulle Secret Army Organization,
also increase the likelihood that the nationwide Moslem dem-
for 1 November will. result in racial clashes extensive enough
onstrations scheduled by the provisional Algerian government 25X125X
o require intervention by the French Axm
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Brazil: According to the American Embassy in Rio de
Janeiro, Finance Minister Moreira Salles is extremely con-
cerned over Brazil's short-term financial situation and over
the fact that Brazil has not yet received most of the aid which
the International Monetary Fund, the US Treasury, and the
Export-Import Bank had agreed to provide the Quadros gov-
ernment. Salles--a proponent of financial soundness and of
pro-Americanism in Brazil--said that he might have to give up
his post as hopeless within 15 days. He reported a conversa-
tion with President Goulart on 13 October in which Goulart said
he knew that President Kennedy thought he might be a Commu-
nist but that this was not so. Goulart said he would remove
officials and change public statements if necessary to prove
otherwise, but that he could not do this if the United States went
back on its economic aid commitments. Lf~rime Minister Neves
reportedly also believes that improved relations with the United
States are necessary
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Ecuador: President Velasco, who is facing increasing un-
rest following the break-up of the truce in the general strike,
is apparently considering closing congress and assuming dicta-
torial powers. The minister of defense and the mayor of Guaya-
quil, Ecuador's commercial center, are said to be the chief pro-
ponents of such action. The US army attache believes that some
elements of the army might balk at supporting a Velasco dicta-
torship but that at least the army's top leadership would probably
go along. The arrest on 15 October of two well-known opposition
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deputies is likely to provoke a showdown between congress
and the President and to consolidate opposition elements. The
American Embassy in Quito notes that the period until 7 No- 25X1
'cu har whpn r.nnsrrisa normally recesses. will be critical.
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THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
Military Representative of the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Civil and Defense Mobilization
The Director, National Aeronautics and Space Administration
Chairman, Foreign Intelligence Advisory Board
The Department of State
The Secretary of State
The Under Secretary of State
The Director, International Cooperation Administration
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Administration
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Assistant Secretary of Defense (International Security Affairs)
The Assistant to Secretary of Defense (Special Operations)
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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