CURRENT INTELLIGENCE WEEKLY SUMMARY

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CIA-RDP79-00927A001000110001-0
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S
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December 16, 2016
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February 1, 2005
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1
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December 6, 1956
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SUMMARY
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Approved For please 2005/02/14: CIA-RDP79-009201000110001-0 LDS CO1iE1t.ENT CURRENT INTELLIGENCE WEEKLY SUMMARY COPY NO. 18 OCI NO. 7753/56 6 December 1956 DAtE4Jt'j6MREVIE ?ER DOCUMENT NO. / I,._ ..___~. ,,... NO CHANGE IN CLA$$. 13 1 DECLASSIFIED CLASS, CHANGED TO; NEXT REVIEW OATS: AI PL. LJii psi. w CENTRAL INTELLIGENCE AGENCY 111 OFFICE OF CURRENT INTELLIGENCE DIA and DOS review(s) completed. CONFIDENTIAL 25X1 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO010001100 1 -1 Approved Felease 2005/02/14: CIA-RDP79-009201000110001-0 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 13, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2005/02/14: CIA-RDP79-00927A001000110001-0 927AO01000110001-0 ,V 1 OF IMMEDIATE INTEREST The British and French forces in Egypt are now scheduled to be completely withdrawn by 18 December. Tel Aviv has announced that its troops have pulled back, but hopes to secure guarantees regarding Sinai and navigation in the Gulf of Aqaba before completely evacuating Egyptian territory. Cairo has hailed the announcement of the British and French withdrawals as an unconditional surrender. Renewed demonstrations of worker defiance after six weeks of revolutionary chaos point up the inability of the Kadar regime to restore order with its two- pronged policy of threat and compromise. Although the USSR's policy appears to be to consolidate its control mechanisms within the country on a basis of firm military supremacy, it continues to be reluctant to push an all-out campaign to crush the workers, hoping instead that hunger and need will finally force the recalcitrant strikers to engage in productive effort. Approved For Release 200 1 GQIVHUMV r-AL Page I Page 3 25X1 25X1 Approved For Release' 5 M]? : jQgAt-00927A001 000110001-0 Approved For Release 2005/02~.*FDP79-00927000110001-0 6 December 1956 NOTES AND COMMENTS POLISH SITUATION . . . . . . . . . . . . . . . . . ... Page 1 Polish party first secretary Gomulka continues to be faced with the delicate problem of not offending the USSR by adopting too liberal policies and, at the same time, of not inciting the population to open anti-Soviet demonstrations by resorting to too harsh restraining measures. In his efforts to stabilize control of a tense and uneasy Poland, he appears to be adopting a somewhat stiffer attitude toward all popular sentiments which could jeopardize his arrangement with Moscow. Poland has made overtures to the West for economic aid. Increased con- tacts with the West would probably give the regime a greater respectability in the eyes of the Polish people. UNREST IN THE SATELLITES . . . . . . . . . . . . . . . . Unrest in the Satellites, stimulated by events in Hungary and Poland and by economic privation, continues at a high pitch, particularly in Bulgaria, East Germany and Rumania. The governments are endeavoring to meet this situation through a combination of coercive measures designed to ensure essential controls and con- cessionary economic policies calculated to reduce popular hostility. CURRENT INTELLIGENCE WEEKLY SUMMARY Page 2 SOVIET FORCES TIGHTEN BORDER SECURITY IN EAST GERMANY Page 4 The Soviet Union has apparently resumed full re- sponsibility.for controlling all East German borders. As a part of its general effort to tighten bloc-wide security, Soviet troops have moved into positions which assure them more direct control over East German border areas and stricter supervision over Allied travel to Berlin. Soviet authorities on 5 December turned back an American army convoy. SOVIET CENTRAL COMMITTEE PLENUM . . . . . . . . . . . . Page 5 The plenary session of the Soviet Communist Party's central committee which Khrushchev has stated will be held this month may clarify Khrushchev's position in the Soviet leadership. According to recent rumors and speculation, he has been slipping as a result of Soviet reverses in Poland and Hungary. At the present time, forces in opposition or potential opposition to Khrushchev do not seem to be in a position to effect his removal. Khrushchev remains extremely active and continues to speak authoritatively for the regime, which continues to adhere to the principle of collective leadership. I SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 THE WEEK IN BRIEF Approved For Fuse 2005/0?/~, DP79-00927000110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 25X1 NORTH AFRICA . . . . . . . . . . . . . . . . . . . . . Page 5 The Moroccan government has indicated its desire to open bilateral discussions on the status of the American air bases; it considers recent French military activity at the Port Lyautey base an "unacceptable affront to Moroccan sovereignty." The recent "harmonious" re- lations between France and Tunisia abruptly ended when a French air force unit attem ted to install a radar link on Cape Bon Peninsula. NATO MEETING FACES UNITY TEST . . . . . . . . . . . . . Page The concern of NATO members for bringing new unity to the alliance overshadows preparations for the regular agenda items of the foreign ministers' meeting .from 11 to 14 December. The meeting will give special at- tention to the report of the three ministers appointed to study nonmilitary aspects of the alliance. Their report urges greater use of NATO's present facilities for this purpose, but little formal change in its structure. r- I Q5X1 AUSTRALIA AND NEW ZEALAND RALLY TO BRITAIN IN CRISIS . . Page 8 The unwavering support of Australia and New Zealand for British military intervention in the Suez Canal zone, despite London's failure to consult with either the Commonwealth or the United States, reflects the strength of the bonds which link the countries with Britain. The press in both countries has expressed increasing alarm about the future of the Western alliance. 25X1 _SE RET iii Approved For Release 2005/02/14: CIA-RDP79-00927A001000110001-0 THE WEEK IN BRIEF CURRENT INTELLIGENCE WEEKLY SUMMARY A widening cleavage among Indonesian political parties is in prospect which would split the country approximately evenly, with the National and Communist Parties supporting President Sukarno and the major Moslem parties--the Masjumi and the Nahdlatul Ulama-- rallying to former vice president Hatta. Hatta, who resigned on 1 December, has indicated an intention to remain active in politics and even a willingness to challenge Sukarno's leadership. Page 9 POPULAR DISCONTENT IN NORTH VIETNAM . . . . . . . . . . Page 10 New outbreaks may occur during the next few months, but the Viet Minh leadership seems confident of its ability to control the situation. The Diem government is trying to make the most of the unrest in an effort to discredit the Viet Minh as well as to enhance Saigon's prestige at home and abroad. Hanoi has reacted vigorously to what it terms South Vietnam's "distortions" of recent events. KUBITSCHEK'S RECENT MOVES IN BRAZIL . . . , . . . . . Page 11 President Kubitschek's attempt in late November to crack down on military intervention in politics appears to have gained general approval. His authority remains in question, however, as long as his war minister, General Lott, continues to create political controversy, hampering Kubitschek's attempts to establish viable domestic policies and maintain good relations with the THE CUBAN REVOLT . . The rebel outbreak in eastern Cuba, probably intended to trigger a full-scale revolution against the Batista regime, met with determined action from the armed forces. The situation appears to be stabilizing, although a small rebel invading force has not yet been brought under Approved For Rels se 2005/02/At& P79-00927A 00110001-0 CONSTRUCTION PROGRESS ON TRANS-SINKIANG RAILROAD . Work is now under way on the Soviet as well as the Chinese end of the Trans-Sinkiang Railroad, which will cut the rail distance between Peiping and Moscow by 625 miles and will facilitate development of petroleum and other important mineral deposits in Sinkiang. The line will probably be completed by July 1958, well in ad- vance of the 1960 target date. SECRET Page 12 Page 13 25X1 25X1 25X1 iv Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 THE WEEK IN BRIEF Approved For Erase 2005/02/14: CIA-RDP79-00927AQQ>0001 10001 -0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 SOVIET REAPPRAISAL OF RELATIONS WITH YUGOSLAVIA . . . . Page 1 The Soviet leaders today are facing a situation similar in many respects to that which confronted Stalin in 1948--an independent Yugoslav Communist regime setting itself up as an authority independent of Moscow and capable of exerting influence in the Eastern European Satellites. The crises in Poland and Hungary have in- creased the risk to Moscow of growing Yugoslav influence in the area and have forced the Soviet leaders for the present to stop trying to draw Tito closer into the bloc and begin to try to isolate Yugoslavia from the Satellites. INDIA'S ECONOMIC PROBLEMS . . . . . . . . . . . . . . . Page 5 India's economy is experiencing a foreign exchange crisis caused by the large-scale imports of industrial products needed for the industrialization program under the Second Five-Year Plan. Estimates of foreign aid needed to fulfill the plan have been revised from nearly $1.7 billion to over $2.1 billion. India has secured less than $400,000,000 of this sum, of which about $240,000,000 has come from the USSR. Indian leaders are reluctant to become too closely tied to the USSR economically, but are determined to meet the plan's goals. ECONOMIC CONDITIONS IN EGYPT . . The effects of the Middle East crisis on the Egyptian economy, although severe, have not yet resulted in the development of organized opposition to the Nasr regime. While that small part of the population which derives its livelihood from industry, commerce and the operation of the Suez Canal is undergoing considerable hardship, most Egyptians exist on a simple agricultural economy and remain relatively unaffected. Page 8 POLISH ARMED FORCES . . . . . . . . . . . . . . . . . . Page 10 The Polish armed forces, the largest in the Satellites, have been developed with Soviet direction and support into a reasonably efficient, well-organized and well-trained force. A shortage of qualified company- and field-grade officers and technicians, dependence on the USSR for logistical support, and lack of experience and skill among the recently appointed Polish top command, however, limit their combat effectiveness. The military forces can be expected to support a nationalist regime. SECRET v Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 THE WEEK IN BRIEF 25X1 25X1 Approved For Rei 6e 2005/02/14: CIA-RDP79-00927AO 0110001-0 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 25X1 SECRET Approved For Offikl ? Approved For &ease CURRENT INTELLIGENCE WEEKLY SUMMARY OF IMMEDIATE INTEREST British and French forces, will be completely removed from Egypt by 18 December, accord- ing to a statement by Foreign Secretary Lloyd to the American embassy in London. About 4,000 British troops but of a total Anglo-French force of nearly 20,2500 began the with`: drawal on 5 and 6 December. A general British and French pullback from the east- ern Mediterranean, under way for over a week, has recently included the return to Toulon of one of the two French air- craft carriers, and the dis- solution of the British car- rier task force and the general movement westward of naval units leave no major British combat vessels in the area. In their public announce- ments, Lloyd and French foreign minister Pineau gave no date, stating only that the forces would be withdrawn "without delay." Political Problems The announcement of the withdrawal followed a week end of intense efforts, espe- cially in London, to marshal parliamentary support. The Conservative Party's deep divisions over the Middle East policy have brought expres- sions of doubt from government leaders that the government can survive the decision to withdraw from Egypt. Some ministers in the government have joined the back-benchers' sharp attacks on the United States for "forcing" the re- treat. Speculation that Eden will never resume active leader- ship of the government has in- creased. In Paris, dissatisfaction with the decision to withdraw appears common to almost all parties supporting Mollet, and dissension within his own Socialist Party is reported to have gr need to major f to acce pears t in the good re States. In agreeing to uncondi? tional withdrawal, London and Paris publicly renewed their support of the six broad prin- ciples on control and opera- tion of the canal they agreed own. Apart from the follow the British, a actor in the decision pt the withdrawal ap- p have been a belief 25X1 need to re-establish lations with the United Economic Consequences to with Cairo on 12 October. As a result of the Suez They also indicated that their situation, Britain evidently salvage equipment would be faces an indefinite period of left in care of the UN forces, financial crisis. Britain's in the evident hope that it gold and dollar reserves dropped might be used to speed clearance by $279,000,000 during November, of the canal. Chancellor of the Exchequer 25 X1 Approved For Release 2005/02/14: CIA-RDP79-00927A001000110001-0 PART I OF IMMEDIATE INTEREST Page 1 of 8 Approved For Release 20051021'IkCJAf79-00927AQQU00110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 Macmillaq ? .'announced: , on: 4 December, and now stand at 1,965 billion dollars, the lowest since 1952. The emer- gency measures announced-- particularly the request for a waiver of interest on the Amer- ican and Canadian debt pay- ments due on 31 December--would help relieve the Chort-term pressure on hard-currency re- serves, but also may be inter- preted as a sign of weakness, and thus add to the long-term pressure on the reserves. The French economy is en- countering similar pressures, although no such emergency steps have yet been announced. In- flation is growing and the government faces increasing budgetary difficulties as well as the drain on the country's dollar reserves. The Israelis have not finally committed themselves to withdraw their troops. On 2 December,Tel Aviv announced that its troops in Sinai had been drawn back about 30 miles, but a further Israeli with- drawal seems unlikely in the immediate future, since the Israelis have announced they will bargain for some kind of UN or Western guarantees re- garding the future of Sinai and the freedom of navigation in the Gulf of Aqaba and the Suez Canal before they pull out of Egyptian territory entirely. The Israeli government's posture remains militant; on 3 December, Ben-Gurion called for a larger and better air force than that which Israel had before the hostilities, and the Israeli army appears to be leveling off at about 100,000 men including para- military forces--a figure some 15-20,000 higher than normal peacetime strength. Egypt The Egyptian press re- ceived Lloyd's announcement as an unconditional sur- render; the Nasr regime greeted it with a mixture of relief and exultation. Ambas- sador Hare reported that Nasr, even before the official an- nouncement, appeared to be resuming his chosen role as the military savior of his country in contrast to the worried petitioner of the past several weeks. Nasr's "victory" may have come none too soon to head off incipient unrest. On 30 No- vember the regime reportedly arrested some 150 persons including a number of leaders of the old Wafd party. Al- though these arrests appear to have been only a warning to dissidents, Egypt's economic position continues to deteri- orate (See Part III, p.8);and the first reports of crowds gathering to demand govern- ment action to alleviate the situation came last week from Alexandria, a "soft" area economically and politically, as far as enthusiasm for Nasr is concerned. There have been more reports of dissatisfaction in 25X1 the armed forces. Rumors of executions are probably false_ popular revulsion against the army also has been reported-- many urban Egyptians now feel that they are protecting the army as a result of the SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 PART I OF IMMEDIATE INTEREST Page 2 of 8 Approved For ReIase 2005/0ZJ EF/DP79-00927AQQ.i000110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY dispersal of military units in the cities, rather than the army protecting them on the battle- :field. UN Activity When Egypt permits the UN to begin canal clearance opera- tions, Secretary General Hammar- skjold will implement the next stage of his schedule--the announcement of the UN's plans :for clearing the canal. He has already sent a survey group to the area. By the end of December, Hammarskjold hopes to have begun talks on canal opera- tions between Britain, France and Egypt on the basis of the six principles which all three accepted on 12 October. UN consideration of the two American draft resolutions on settling the Suez dispute and the general Arab-Israeli problem will be deferred until the troop withdrawal and clearance o era- tions are well under way. 25X1 25X1 HUNGARIAN WORKERS CONTINUE TO DEFY x',ADAR REGIME Renewed demonstrations of worker defiance after six weeks of revolutionary chaos point up the inability of the Kadar regime to restore order with its two-pronged policy of threat and compromise. Although the USSR's policy appears to be to consolidate its control mecha:- tisms within the country on a basis of firm military supremacy, it continues to be reluctant to push an all-out campaign to crush the workers, hoping in- stead that hunger and need will finally force the recalcitrant strikers to engage in produc- tive effort. Soviet deputy premier Malenkov reportedly was still in Budapest on 29 Novem- ber, a week after his arrival, presumably to formulate and implement policies designed to overcome the stalemate. Worker Defiance The regime's rebuff of worker demands, levied in a num- ber of meetings with Kadar, has spurred workers to demon- strate their open defiance of the puppet Communist regime. The regime's continued disincli ination:to permit UN secretary general Hammarskjold to visit Budapest may further irritate the workers. The workers, apparently not intimidated by a threat of force, have not accepted the proposition that further concessions cannot be wrung from the government. Some workers, however, continue to feel that the strik- ers are striking against them- selves and that they will be in a better position after re- turning to work; others feel that Hungary's only course is to continue anti-Soviet demon- strations. Several large pub- lic demonstrations which were staged from 2 to 5 December in Budapest provided additional evidence of the continued de- termination and strength of the working population. On 5 December leaflets were circulated in Budapest calling for a gen- eral strike and armed resistance. The following day, numbers of workers in major Budapest fac- tories went back on strike, re- portedly largely in those plants where members of the factory workers' councils had been ar- rested on 5 December. SECRET PART I Approved For Release OF OIMMEDIATE CIA-0 Page 3 of 8 Approved For Refe~ase 2005/02/18; I F 79-00927A OO110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 The workers have striven toward their goals by trying to overcome differences among themselves and to establish a "unified" labor position with which'to confront Kadar. The workers' councils report that they have "good" relations with writers' and students' groups. Worker representatives have engaged in a lively free- for-all with the Kadar regime to gain control of the workers' councils. Kadar's efforts to limit the function of the work- ers' councils to harnessing economic productive effort and to delimit their political function has been ignored and his effort to infiltrate the councils' leadership has met with only slight success. Kadar has announced the abolition of revolutionary councils established during the past few days in various ministries in youth groups and among intellectuals. These councils--apart from the work- ers'councils--have served as focal points of opposition to Kadar. Non-Communist worker groups appear to have gained a victory over the regime- dominated national trade union council when Sandor Gaspar re- signed as trade union president. Several officials Who reportedly have a Social Democratic back- ground and others who are Com- munists--but who have long been out of public light---were named to leading trade union posts. This suggests that leftists not "controlled" by Kadar have assumed authority over the trade union movement. Economic... Situation Although the regime claimed on 3 December that 60 to 65 percent of the workers in Budapest reported to their factories, the breakdown of transportation and communica- tion facilities, shortages of fuel and raw materials, and the sullen defiance of the people make normal production a far distant hope. The threat of a renewed general strike still remains very great. Food and fuel shortages will become more acute in the latter part of the winter, even if the strike is settled, due to the time necessary after full work effort is resumed to attain a reasonable production level. For the moment, the food supply in Budapest appears adequate and state market prices have not risen. Kadar Policies Kadar, in attempting to restore public order and con- trol, has found it increasing- ly difficult to keep the rem- nants of his own Communist Party in line. Large numbers of Communists, who must apply for admission in the recon- stituted party--the Hungarian Socialist Workers Party--are not doing so. Party activists' meetings, when held, are re- portedly scantily attended and certain local Communists are apparently aligning themselves with the workers' councils in defiance of Kadar. Attempts to reorganize the armed control mechanisms in Hungary have not been very effective. The police force is inept,, shattered by fear of public reprisals or trials for past errors. The army and air fore no longer ex s as organizations. They have been SECRET PART I Approved For ReleaseojpOi5 f14IATE IN TEREST7AO01000110001- Page 4 of 8 25X1 Approved For Rase 2005/0:SfCCEETDP79-00927AQ000110001-0 disarmed and will not be re- organized for some time to come. All officers belong to a con- glomerate "Armed Forces Of- ficers Corps" with the only duty being to restore peace and disarm "counterrevolution- aries." 'Soviet Measures The USSR is apparently reluctant for the moment to crush the workers in an all- out drive and hopes to exer- cise its control in as unob- trusive a manner as possible. Continued resistance, however, has forced Soviet control into the open and demonstrated the necessity for the retention of such control for the maintenance of Communism. The Soviets do not appear concerned about immediate political and economic develop- ments. They are quietly moving to consolidate their control mechanism throughout the country. Soviet officers reportedly are now appearing at workers' coun- cil meetings. A Soviet citizen has reportedly been appointed as managing director of the Hungarian State Railways, in A move which may-presage similar appointments to key posts 25X1 throughout the country to oversee the recovery in of order the 25X1 Hungarian economy. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001000110001-0 PART I OF IMMEDIATE INTEREST Page 5 of 8 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 Next 2 Page(s) In Document Exempt Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 Approved For tease 2005~~~ -RB~P79-009271AQ,?1000110001-0 CONFIDENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY NOTES AND COMMENTS POLISH SITUATION Polish party first secre- tary Gomulka, in his efforts to stabilize control of a tense and uneasy Poland, appears to be adopting a somewhat stiffer attitude toward all populat sentiments which could jeopard- ize his arrangement with Mos- cow. He continues to be faced with the delicate problem of not offending the USSR by adopt- ing too liberal policies but, at the same time, of not incit- ing the population to open anti-Soviet demonstrations by resorting to too harsh restrain- ing measures. In a speech on 29 November, apparently in response to a recent series of Polish press and radio commentaries critical of the USSR, he warned against "reactionaries trying to ride the wave of democratization" and said that anyone who opposed the Communist program of socialism is on the "other side of the barricades." The Krem- lin followed up the speech by broadcasting in Polish a.bitter East German newspaper attack on a Warsaw writer for holding up Poland's "revolution of 1956" as a model for all Commu- nist parties. In respect to the recent popular demonstrations against the militia and the mob attack on a jamming station in Byd- goszcz, he said "we shall ruth- lessly combat provocateurs, scum and all those who dis- turb public order....` A warn- ing to the press was made on 1 December by Jerzy Morawski, member of the Polish party politburo, who called for "good articles based on competent knowledge," in a mild admoni- tion to journalists to "under- take a broader exchange of views... as to which is to be the Polish road to social- ism...." The country's leading in- tellectuals have nevertheless reaffirmed their determination to work for complete freedom of expression. The Polish Writers' Union, concluding its extraordinary congress on 2 December, resolved that a num- ber of-changes should be made in legislation in relation to the control of information, including the abolition of censorship and of "prohibited" books. In addition, it called for increased contacts abroad. While Gomulka attempts to stem popular criticism, he is continuing to take steps designed to meet popular de- mands for political and religious freedoms and economic improvement. Gomulka has gone far in settling long-time issues with the Catholic Church, moves which have undoubtedly won the regime increased support from the predominantly Catholic Polish people. Gomulka, after restoring Cardinal Wyszynski to his office as Polish primate, agreed to permit the church freedom of publication and education that had heretofore been denied it. In return, the Vatican appointed bishops in the west- ern territories of Poland and that portion of East Prussia now occupied by Poland, thus giving the Holy See's implicit recognition of Poland's sovereignty over these areas. Wyszynski has also lent his support to the Gomulka regime .~. CO TIA_ I~FID~.N_ 5 CST- Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 NOTES AND COMMENTS Page 1 of 14 Approved For R*4ease 2005/02/SE( '79-00927AQQ1000110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 and urged the populace to sup- port the government in its ef- forts to improve conditions in Poland. Economic Moves In the economic field, Poland's recent approach to the United States for economic aid suggests that the recent Soviet grants are, insufficient to effect a substantial im- provement in the Polish standard of living in the near future. The Kremlin reportedly sanc- tioned Poland's move during the recent Moscow negotiations. The Polish regime is wary of the possibility of controls attendant on American aid and fearful lest the Kremlin get the impression that Poland is becoming too economically bound to the West. The Poles are also approaching the United Kingdom and France to seek trade agreement extensions and loans, and UNREST IN THE Unrest in the Satellites, stimulated by events in Hun- gary and Poland and by economic privation, continues at a high pitch, particularly in Bulgaria, East Germany and Rumania. The governments are endeavoring to meet this situation through a combination of coercive measures designed to ensure essential .security controls and economic concessions calculated to re- duce popular hostility. The failure of the majority of the Satellites to undertake any significant political lib- eralization measures and the lack of opposition leadership for the restive populations lessen the likelihood of any- thing more than local demon- strations occurring in Albania., Bulgaria, Czechoslovakia, East Germany and Rumania. 25X1 appear to be playing one country, against the other in an effort to obtain the best possible credits. Poland has also in- dicated a desire to rejoin the International Bank and the International Monetary Fund. Poland has also made an overture to the United States for a resumption of cultural contacts, the Polish UNESCO delegate in New Delhi on 26 November having suggested an exchange of professors to participate in projects "com- pletely free of politics." Increased relations with the West will probably give the Gomulka regime a greater respectability in the eyes of the Polish people.. While in- creasing contacts with the West, however, the regime will try to prevent any deterioration of Polish-Soviet relations. Popular IT-o----,t Hatred of tit. USSR by the East Germans is reported to be even greater than in the period immediately following the riots in June 1953, al- though it is no longer expressed openly as in the days immedi- ately following the Soviet intervention in Hungary. Unrest remains most prevalent among university students, who have, however, confined themselves largely to demanding changes in university curricula and openly questioning the Commu- nist version of events in Hun- gary and Poland. The previously reported tense atmosphere in Rumania has not abated. Although a popular uprising does not appear imminent, further local SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 PART II NOTES AND COMMENTS Page 2 of 14 Approved For- gIease 200 (:EJA-RDP79-00927AQO1000110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 demonstrations against the regime are possible. Considerable instability in Bulgaria is reported and appears to be due to both fac- tionalism in the party leader- ship and dissidence and discon- tent among the people. The dissident party elements are not believed to be sufficiently united, however, to bring about any significant changes in the Bulgarian leadership or to lead a popular movement against the regime. The numerous press reports of unrest in Albania remain un- confirmed and may be largely Yugoslav-inspired in order to abet Belgrade's propaganda bat- tle against the Albanian leader- ship. Communist Control Measures Satellite leaders in East- ern Europe are fearful of the example provided their people by revolutionary Hungary, na- tional Communist Poland and independent Yugoslavia. Appar- ently in an effort to lessen similar pressures in other Satellites, Moscow'is permitting, if not encouraging, them--par-: ticularly Albania and Bulgaria-- to pursue a vigorous campaign of denigrating Yugoslav ideology. The USSR may be hoping by these means to goad Yugoslavia into severing relations with its sensitively exposed Satellite neighbors. Hard repressive measures have been resorted to in Bul- garia and Rumania, where numer- ous arrests have taken place. The East German regime, in addi- tion to having instituted an un- usual security alert, is plac- ing more and more emphasis on internal party orthodoxy, and paying only lip service to the de-stalinization policies of the 20th congress. German lead- ers appear determined to make no real concessions and pre- pared to take drastic measures to put down quickly any signs of overt resistance. The Czechoslovak regime is taking no chances and has adopted a policy of utmost vigilance. To emphasize its position,'party leaders in late November ostentatiously celebrated the anniversary of the birth of the late Stalin- ist leader Gottwald. In addition to convention- al security precautions, the Czechoslovak and Rumanian re- gimes have mounted a vigorous propaganda campaign against the United States and have in- creased their harassment of Western diplomatic personnel. Albania has been making life difficult for the few Western diplomats in Tirana. All the Satellites have in the past week or two announced economic concessions such as price reductions, family al- lowance increases, or some form of wage increase in an effort to reduce the crushing economic privations suffered by their peoples. Czechoslovakia has made unusual and successful efforts to keep food stores well stocked and ensure a good supply of consumer goods for the Christmas season. While these minor conces- sions have undoubtedly been made with the hope of reducing popular dissatisfaction, they may also be an indication that the basic long-range Soviet policy of permitting very care- fully controlled liberalization and de-Stalinization in the Satellites will continue. As indicated by the Soviet-Rumanian communique of 3 December, how- ever, Moscow is now placing great emphasis on the need to strengthen the "unity" of the Sino-Soviet Inc--that s ties to the USSR. pared jointly with ORR) SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01000110001 Page 3 of 14 PART II NOTES AND COMMENTS Approved For Rei ase 2005/02/15 F 'T9-00927A0Q4000110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY 6 December 1956 SOVIET FORCES TIGHTEN BORDER SECURITY IN EAST GERMANY The Soviet Union has ap-- ,parently resumed full respon- sibility for controlling all East German borders, probably as a part of its general ef- fort to tighten. bloc-wide se- curity and prevent Western ex- ploitation of the tense situa- tion in Eastern Europe. So- viet troops have moved into positions which assure them of more direct control over East German border areas and strict- er supervision over Allied travel to Berlin. West German officials have reported that during the past several days controls on West German travel on East Germany's highways have been tightened considerably. The controls appear to be aimed principally at the important truck traffic between West Germany and West Berlin. Truck drivers report that cargo in- spections are more rigid and more frequent now at practical- ly every check point. At some points, additional control booths have been erected in the last few days to check pas- senger traffic on the highways, and all road approaches to Berlin are being checked more thoroughly. On 14 November, Soviet authorities re-established con- trol points on the highway to Schoenefeld Airport just out- side East Berlin, requiring Soviet travel passes for all persons, including official Al- lied personnel. Similar re- strictions had been lifted on 5 October. Since the latter part of October, Soviet authori- ties have refused visas to personnel of the American mis- sion in Berlin for travel in East Germany, probably in con- nection with, the general tightening of security re- strictions in East Germany. In an apparent effort to justify the overt Soviet re- sumption of responsibility for maintaining security, the East German party newspaper Neues Deutschland observed on 25 November that "sovereignty" is not incompatible with prin- ciples of "fraternal co-opera- ?tion and assistance." The newspaper also said "independ- ence does not mean that each country had to cope with its problems alone," and noted "there is no contradiction be- tween sovereignty and socialist internationalism because one: needs the other to become firmly established." The~Soviet authorities who have been checking Allied trains to Berlin for more than a week have been accepting identity documents ,and Russian translations of;Allied'travel orders as adequate documenta- tion. American army authorities in Berlin announced on 5 Decem- ber that the regular weekly convoy was turned-back to Ber- lin "rather than submit to in- vestigations beyond those which have been in effect for many years." This is a continuation of the Russian harassment of Allied highway traffic which began on 29 November when they attempted to search an American army truck convoy en route to 'Berlin. At that time, the con- voy was permitted to pass, after a considerable delay with the warning that in the future the interior of all vehicles would be searched before being per- mitted'to continue the journey. O SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01 000110001 -0 PART II NOTES AND COMMENTS Page 4 of 14, Approved For Release 2005/08 EjbP79-00927AQQj,A00110001-0 CURRENT INTELLIGENCE WEEKLY SUMMARY Changes in the composition of the Soviet Communist Party"s presidium and secretariat may be announced following the plenary session of the party's central committee which Khru sh:chev has stated wvill': be'- held early this month, since such changes are normally formalized at plenums. The proceedings may clarify Khrushchev's posi- tion in the Soviet leadership. According to recent rumors and speculation, he has been slip- ping as a result of Soviet reverses in Poland and Hungary. On 29 November, for example, Yugoslav de ut premier Kardel predicted that Khru- -- s c iev would alL from. powei in the not-too-distant future. At the present time, forces in opposition. or poten- tial opposition to Khrushchev do not seem to be in a position to effect his removal.. Khru