CURRENT INTELLIGENCE WEEKLY SUMMARY

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October 19, 1999
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Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 CONFIDENTIAL INTELLIGENCE WEEKLY SUMMARY DIA review(s) completed. CURRENT N-W f 2)/ / COPY NO. 50 OCI NO. 1790/58 22 May 1958 State Department review completed OQGUnnr_+? NO CHANCE IN CLASS 0 OECIASS'"r- CIASS. CHANGED TO t4EXT REVIEW DATE: HR 10 AUT REViEWER?. pATE' CENTRAL INTELLIGENCE AGENCY` OFFICE OF CURRENT INTELLIGENCE CONFIDENTIAL RETURN TO W HIVES a R S CENTER JOB ~~Qr? Box Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 THIS MATERIAL CONTAINS INFORMATION AFFECT- ING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS- SION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. The Current Intelligence Weekly Summary has been prepared primarily for the internal use of the Central Intelligence Agency. It does not represent a complete coverage of all current situations. Comments and conclusions represent the immediate appraisal of the Office of Current Intelligence. Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Next 7 Page(s) In Document Denied Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 N"We FIDENTIAL CON similar rank in France CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 PART I OF IMMEDIATE INTEREST P'flimlin's Position Premier Pflimlin is under mounting pressure from the mili- tary and. extremists in both Algeria and France, and the pos- sibility of General de Gaulle returning to power has markedly increased. While the National Assembly has given the govern- ment overwhelming support to date, Pf limlin appears barely able to keep the army problem from coming to a head. Inde- pendent'"leader Pinay's offer to act as a go-between to negotiate the return of De Gaulle reduces the chances of a "national union" solution if Pflimlin falls. The Pflimlin government, while.professing its determina- tion to.carry on, has admitted it has practically no informa- -- tion as to developments in Al- giers, and is extremely worried over reports that rebellious field-grade officers are in con- tact with fellow officers of 25X1 25X1 ere appears to be some ques- tion regarding the role of the new French army chief, General Lorillot, because of his earlier close association with the osten- sible civilian chief of the Algerian junta, Jacques Soustelle. It appears more and more unlikely that the Pflimlin gov- ernment can resist the concerted pressures from the military for long. Posters appeared in Paris on 21 May announcing the forma- tion of a "national committee of public safety," and the com- mittee stated on 22 May it would "remain calm and disciplined a few days longer, but no more." De Gaulle encouraged army elements in Algiers when, in his press conference, he both com- mended''their action and attacked the "regime'of the parties" in Paris. Following his state- ments, the "war of nerves" against Pflimlin was intensified. The 25X1 army in France is reluctant to split with its generals in Al- geria Pflimlin has refrained from condemning the Algerian "coup" and has tried to buy at least some army support by re- storing cuts in the military budget and by increasing the length of service for draftees. The Communists and Social- ists, separately, continue to issue warnings that they will oppose any attempts to topple CONFIDENTIAL 25X1 25X1 PART I OF IMMEDIATE INTEREST Page 1 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 the Fourth Republic and are gearing their organizations for underground resistance in the event De Gaulle returns to pow- er. The American Embassy, how- ever, has doubts about how? strong or.how sustained leftist efforts to block his return would be in the face of the rank and file's apathy thus far. American Consul General Lyon in Algiers believes the recent Algerian developments are "irreversible" and that the French Army and rightist civil- ians there are determined not to accept the authority of the Pflimlin government. Should the premier continue to hold out, extremists among these elements may eventually resort to still more radical tactics in an effort to bring about the desired change of regime in France. Precise power relationships within Algeria are still unclear. De facto military and civil cab- inets have been appointed with- out reference to Paris, and an all-Algeria committee of public safety is being formed. Gen- eral Salan, France's top com- mander in the area, who still provides a tenuous link with Paris, will probably continue to be recognized as supreme titular authority, at least by all the military, until a clear test between Paris and. Algiers deve lops,.. He appears to be un- der increasing pressure, how- ever, both from the clique of paratroop officers who original- ly masterminded last week's ac- tion and the extralegal Algiers public safety committee which is headed by General Massu but apparently dominated by local civilian extremists. Lyon be- lieves these elements are wield-25X1 ing the real authority at pres- ent, and this view, seems borne out by a an s re- 25X1 mark to a cheering crowd on 21 May that "we shall march together up the Champs Elysees." The position of Jacques Soustelle, former' "tough" gov- ernor general of Algeria who arrived in Algiers on 17 May, remains somewhat ambiguous. At present he is the principal ob- ject of adulation from the streets and apparently the main spokesman for the civilian ele- ments in the new leadership. However, he has either not been offered, or has so far declined to accept, any official position locally and the real extent of his influence and ambitions is not clear. While formally ac- cepting Salan's over-all author- ity and frequently appearing with him in public, Soustelle is reported to have clashed with Salan privately and appears to work more closely with the Al- giers committee than with Salan. Soustelle may yet assume more open authority, especially if the extremists, who apparently have continuing doubts about Salan, decide to remove the general. Moslem Attitude Most of the 1,200,000 Euro- peans in Algeria seem to approve the recent developments, and -there have been numerous public manifestations of support for the "new Algeria" by consider- able numbers of Algerian Moslems. These, however, appear to be SECRET PART I OF IMMEDIATE INTEREST Page 2 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 -4004, VOW00 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 largely artificial affairs staged by psychological warfare units of the French Army and, in some cases, by local employ- ers. Lyon who witnessed a recent demon- stration involving nearly 10,- 000 Moslems report it was mani- festly overorganized and that the Moslems who participated were mostly "simple peasant types herded about like sheep" by army personnel with portable electric megaphones. by French military leaders in Algiers that the Moslem rebels have virtually ceased fighting were apparently made with little regard for reality in order to satisfy a propaganda line. They have been officially contra- dicted by the minister of infor- mation in Paris. it appears most unlikely that many of the Moslem leaders, who ultimately determine the position of the largely apa- thetic masses, are being im- pressed by the "unity and broth- erhood" line now being propa-. gated by the new local leaders. Meanwhile, the Moslem na- tionalist rebels of the Algerian National Liberation Front (FLN) have shown no interest in Salan':s recent amnesty offer. An.'FLN spokesman broadcasting over Cairo radio has excoriated the "Massu-Soustelle criminal gang," and a top FLN military leader stated in. Tunis on 18 May that the rebels have no intention of putting down their arms until France agrees to the principle of independence. Recent claims Morocco, and especially Tunisia, are extremely anxious over the activities in Algeria, which have heightened latent fears that the French Army might attempt to reoccupy those coun- tries. There is, however, no evidence that the French, who have long regarded Bourguiba as the "number-one enemy" be- cause he supports Algerian in- dependence, are preparing any early military operations out- side Algeria. The reported grow- ing restlessness of French troops in Tunisia is likely to lead to serious incidents in Tunisia and set the stage for the inter- nationalization of the French- Algerian problem. Nevertheless, the freewheel- ing activities of the French commandant at the Remada base in remote southern Tunisia, who on 17-18 May dispatched troops to surround two Tunisian road- blocks within 25 miles of his base, have created a new problem SECRET PART I OF IMMEDIATE INTEREST Page 3 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 %WWI %ago SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 in French-Tunisian relations. As they threatened, Tunisian units on 22 May fired on four French jet aircraft when they took off from the Gafsa air base some 175 miles northeast of Remada, and French troops re- turned their fire. Bourguiba now can be expected to press again for the immediate supply of American arms and ammunition forces. to equip his small security The Lebanese Government has decided to appeal to the UN Security Council against UAR in- tervention, despite friendly warnings that its case must be a strong one. The decision, which provoked the defense min- ister to resign, is probably the result of realization that suppression of the violence in the country is impos- sible as long as the UAR is supplying and introducing new groups of dissidents into the situation. The most recent example of a revival of dissident activity is the "capture" of Balabakk city hall on 20-21 May by an armed band composed of fedayeen terrorists from Syria and local dissident tribesmen. This putsch was or- ganized in northeast- ern Lebanon, and about the same time another band of about 1,000 dissidents is reported to have be- gun a march westward, possibly toward the town of Tripoli, where strong points are still held by antigovern- ment forces. To encourage these and other operations, Damascus and Cairo radios have become more outspoken and direct in their P 1 a !f \ Balabnkk EBANON` Bayt ad Din- Sidonc f SECRET PART I OF IMMEDIATE INTEREST Page 4 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 support. Damascus radio on 21 May broadcast an appeal from a Syrian Druze leader to his fellow Druze in Lebanon, call- ing on them to support the an- tigovernment cause. Cairo radio on the same date broadcast, while technically quoting, a dissident appeal to Lebanese army officers to join the dis- sidents and do their "duty" by overthrowing President Chamoun. Cairo radio is particularly effective in its situation re- port broadcasts. The UAR portrays the strug- gle in Lebanon as exclusively one between Chamoun, his West- ern-enthralled lackeys, and the "people. The dissident leaders in Lebanon are of course playing the same theme and insisting they will not lay.down arms or call off their general strike until Chamoun resigns. They are being partially encouraged in'their intransigence by the maneuvers of army commander General,Fuad Shihab, whose ob- jective, in so far as it can be discerned, seems to be twofold. Meanwhile, there are signif- icant economic pressures for an end to violence building up in the important Lebanese business community. While Beirut port is reviving from the almost com- plete close-down last week and while more shops in the city are open for at least part of the day--they close after ' bombs explode--the merchants have lost very large sums already and stand to lose considerably more while the transshipment business is at a standstill, It re- mains to be seen which side this kind of pressure will favor, although almost any kind of compromise at this point would probably appear as a defeat for Chamoun. The events in Lebanon con- tinue to arouse great concern , among other states in the area, some of which appear to feel that they may be next if Lebanon falls to Nasir's pressures. One of the reasons given by Jordanian authorities for Samir Rifai's appointment as Jordanian prime minister when he was scheduled for an Arab Un- ion government post is the need 25X1 for a firm hand in Jordan durin this period. e Israelis are watch-25 n e elopments closely; Tel Aviv has kept public official comment to a minimum, 25X1 25X1 25X1 25X1 Government operations to crush the North Celebes dissi- .dent movement are proceeding swiftly. Djakarta announced on 20 May the recapture of Morotai Island, and government troops reportedly have landed at Djailolo _On Halmahera Island. The dissidents claim, however, they recaptured Gorontalo in SECRET PART I OF IMMEDIATE INTEREST Page 5 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 North Celebes on 20 May; the government had reported taking it the previous day. Other gov- ernment operations are said to be planned soon against the northern coast of Celebes and against the Poso area, with the dissident capital of Menado as the ultimate objective, During the dissident air strike against Ambon on 18 May, one B-26 was shot down, In the wake of government successes, dissident military commander Lt, Col. Sumual on 21 May announced he was prepared to negotiate for a "reasonable" settlement, Djakarta immedi- ately refused the offer. Gov- ernment officials repeatedly have stated that negotiations with the dissidents will not be considered. President Sukarno delivered a speech on 20 May, National Re- awakening Day, which was more favorable to the United States than any he has given since the beginning of the provinces' re- volt. Emphasizing that Indo- nesia had achieved its identity, Sukarno quoted Abraham Lincoln as stating that "no nation is good enough to govern another," and said this applied to the B 0 R)~,#O ~~rr-.~onggalad.Tobolt ~', ' Bai pagan PaW Soso t.;;ya.~ 9 t~ +~ LC&LE[Bfi5 SECRET Dutch, the USSR, and the United' 25X1 States in.relatioa to Indonesia. The Indonesian army intel- ligence chief, Lt. Col. Sukendro --undoubtedly speaking for Chief of Staff General Nasutior--told the American army attache last week that moderate Indonesian leaders intend to make changes in the cabinet and undertake ac- tion against the Communists. He said, however, that these actions must be delayed until after the defeat of the North Celebes dissidents. 25X1 25X1 PART I OF IMMEDIATE INTEREST Page 6 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 BLOC LEADERS MEET The present meeting of bloc officials in Moscow has brought together an unprecedented com- bination of party, government, economic, and trade leaders. It was foreshadowed last April by Khrushchev during his Hungarian tour when he called for a meet- ing of Eastern European and So- viet leaders to discuss bloc economic cooperation, industrial specialization, and particularly economic cooperation among in- dividual satellites. These eco- nomic problems may indeed be thorny enough to merit this con- centrated attention, but it seems -inevitab :e that the dis- cussions will. spill over into political and military problems as well. In addition, TASS has announced that a meeting of the Political Consultative Committee of the Warsaw Pact is scheduled to begin on 24 May* Conspicuous by their ab- sence are the Yugoslavs, and the underlying theme of the meeting could well be the need for the socialist camp to exhibit mono- lithic bloc unity-economic, military, and political--in the face of 'titoist revisionist ob- stinacy and Western colonial aggrandizement, Khrushchev now may be able to accomplish this aim, even though he achieved only limited success in a sim- ilar effort last November on the party level aloner The fact that TASS has announced that such a r:meetisg is in progress. suggests that a for- mal communiqud on the results is in the offing and that no serious difficulties are fore- seen. on the economic side, the USSR heretofore has relied on voluntary approaches to inte- gration 'by members of the bloc Council for Mutual Economic Aid (CEMA)? However, nationalistic desires for economic independ- ence and resistance to the elimination of inefficient in- dustries which developed dur- ing the Stalinist postwar period have limited the promo- tion of specialization, which would not only step up produc- tion but also increase bloc interdependence. The Soviet Union now may be proposing that CEMA decisions be made binding on all members. It is probably also eager to counter the growing economic unity of Western Europe. Working-level CEMA confer- ences have already engaged in developing ~ coordinated eco- nomic plans to run through 1965, the terminal date of the yet-to-be-announced Soviet Seven-Year Plan, On the political side, the participants will probably de- cide on a united policy against Yugoslavia, including strong economic sanctions, a decision that may be difficult for Gomulka to adcept. In discussing ways to bol- ster bloc unity, the conferees might come up with some sort of new bloc organization de- signed to coordinate political and economic efforts. The Asiatic Communist countries, which have delegates of some- what lesser rank in attendance, will probably participate to SECRET PART T OF IMMEDIATE INTEREST Page 7 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 fry' SEC. ET ... . CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 some degree in whatever pro- gram develops from the cur- rent meetings. Any decision to re-estab- lish a Cominform type of re- lationship in the bloc, however, would probably have to surmount the objections of Gomulka, who would see in.such an arrange- ment an implicit threat to his principles of noninterference and autonomy. In the international arena, the Warsaw Pact political meet- ing to follow will probably come up with the bloc's answer to the West German decision to arm with nuclear weapons. The 25X1 USSR has been threatening un- specified countermeasures to this for some time. (Prepared jointly with ORR) SECRET PART I OF'IMMEDIATE INTEREST Page 8 of 8 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 %Roof UuNhLENTIAL CURRENT INTELLIGENCE WEEKLY SUMMARY .22 May. 1958 NOTES AND COMMENTS USSR WARNS WEST ON INDONESIA AND LEBANON On 14 May Moscow and Pei- ping simultaneously denounced "American intervention" in In- donesia and accused the West of "direct incitement to over- throw the legitimate Indonesian Government.". On 18 May the USSR attacked Western "inter- vention" in Lebanon as "another case of interference in inter nal Arab affairs." The USSR ignored its contradictory posi- tion of supporting the estab- lished regime in Indonesia and the revolutionaries in Lebanon, implying that the West was at- tempting in both these coun- tries to. establish colonial re- gimes. Both statements are pri- marily political broadsides in- tended to indict the West, and specifically the United States, before world public opinion on the charge of military inter- vention and colonial aggression. The statements are essentially political moves designed to in- hibit Western action, and they cater to nationalist frustra- tions in Asia. However, they do not indicate that the USSR is willing to follow through with direct military action. As in the Jordan and Syrian crises last year, the USSR spoke over the heads. of Asian and African leaders to the other great powers in defense of its professed principle of great- power "noninterference" in re- gional disputes,. Both state- ments seem to be unsolicited testimonials in support of In- donesia and of the UAR, which has an active interest in bringing down the Lebanese Gov- ernment. They reflect Moscow's view that?the UnitedirStates has replaced Western European colo- nial powers as the chief enemy in Asia and Africa. Both Warnings were unoffi- dial and ambiguous. They were spotted with stereatipped !!warn- ings" of Soviet concern and un- elaborated hints of possible further action without actually committing the USSR; they were phrased so that the West might amplify and interpret them as threats. The statements, re- leased through TASS, are about the weakest in Moscow's cate- gories of crisis threats. If Moscow desires to act further in either of these disputes, several stronger methods of at- tack are open to it, such as a PASS release of an authorized Foreign Ministry statement,_a statement from the Foreign Min- istry itself, personal letters from Khrushchev to Western political leaders, the informal threat that the USSR "would not stand. in the way of citizen volunteers," formal demarches, and action against the West in the United Nations. Communist propaganda media have not raised directly the possibilit3r of bloc "volunteers" entering the present crises. According to press reports, a "high government source" in Dja- karta has said that Communist China, Czechoslovakia, and Po- land have all offered volun- teees to fight. in Indonesia. The source warned there would be nQ' alternative but to accept them if Chinese Nationalist .troops should land in East Indo- nesia.. The bloc might again threaten to use Communist volun- teers, p\Imarily to develop op- position to American actions among the smaller powers and the Afro-Asian neutrals by ex- ploiting fear that the conflict would spread. The USSR, belaboring West- ern activity as a "threat to CONFIDENTIAL PART II NOTES AND COMMENTS Page 1 of :1.6 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 peace," appears to be laying the groundwork for some UN ac- tion on Indonesia and to a less- er extent Lebanon. The harder language of the Indonesian statement probably reflects Moscow's conviction that a bet- ter case can be made there. Soviet UN action on Lebanon would be inhibited because the present government is pro-West. Moscow is at best ambiguously on the side of "the people" and uncomfortably vulnerable to the countercharge that it is abet- ting interference in internal Lebanese affairs. Consequently, Moscow's argument on Lebanon is built on the more general terms that irresponsible American ac- tion there' threatens the re- gional peace of the Near and Middle East. The USSR probably be- lieves the : force of. its at- tacks will evoke more out- spoken support of Asian and African neutrals, Both in Indonesia- and Lebanon, the USSR stands to gain by its stand against Western "in- terventionism." To the de- gree that intervention be- comes a reality, Moscow will fully exploit the presence of foreign soldiers to exacer- bate nationalist frustrations. If the West refrains, Mos- cow can claim, as it did in the Syrian and Egyptian episodes, that its warnings once again proved to be an effective deterrent to Western "aaaression" in Asia. NASIR'S VISIT TO THE USSR The results of Nasir's 18- day visit to the USSR indicate that all Soviet-UAR policy dif- ferences were not resolved and that the trip may have been something less than an unquali- fied success. Khrushchev, in lauding Nasir and the UAR at the Kremlin farewell ceremonies, claimed that complete agreement existed on all questions 'of "mutual interest." The final communique, which ranged over a wide variety of international topics, was vague, however, on the subject of Israel, and a comparison of speeches made by Nasir and by Soviet leaders suggests ,.some disagreement on other political issues as well. Nasir avoided seconding sharp Soviet attacks on the West and, except for bitter at- tacks on Israel's "imperialist role" in the Middle East,.kept to subjects of Arab interest and to innocuous statements on friendship. The "iced-carpet" treatment given Nasir and the spate of friendship speeches reinforced the public impression that the USSR firmly endorses Nasir's bid for leadership of the Arab world. Khrushchev reportedly told Nasir that the USSR wanted nothing from Egypt but to make Egypt strong, while the West looks on Egypt as a former servant and will never accept it as an "equal," Information so far, however, suggests that Nasir remains suspicious of both the USSR and the West and probably places little re- liance on Soviet promises of general support, although he probably will continue to ex- ploit such promises to extract concessions from the West. Nasir SECRET PART II NOTES AND COMMENTS Page 2 of 16 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 19 58 told Ambassador Hare that the talks with the Russians had gone "more or less" as expected. Moscow apparently was displeased by signs of the UAR's growing economic rapprochement with the West and reportedly was "visibly angered" by con- clusion of the UAR - West Ger- man economic agreement, news of which arrived while talks were going on in Moscow. Nasir was partially ? suc -- cessful in his efforts to re- duce the burden of debts con- tracted with the USSR by Egypt and- Syria. (Concurred 'in by ORR Pied date. to visit the UAR at an unspeci- The joint communique is- sued at the conclusion of the visit reaffirmed the identity of Soviet-UAR views on a wide range of subjects and stated that Khrushchev and Voroshilov had accepted Nasir's invitation GOMULKA'S EAST EUROPEAN TOUR Any Soviet hopes that Gomulka's trip to Bulgaria, Hungary, and Rumania would suc- ceed in boosting bloc unity were probably only partially fulfilled, and much that trans- pired may lead to future fric- tion between the USSR and Po- land. Although Gomulka hewed to the established line on policy toward the West, prole- tarian internationalism, and the basic principles of build- ing socialism, he pointedly re- frained from recognizing the leading role of the Soviet party, remained publicly silent on the Yugoslav issue, defended the "Polish road to socialism," and condemned dogmatism with only slightly less vigor than revisionism. Gomulka's own views were the ones most often expressed in the various joint communi- ques, while he avoided formal- izing views he does not share with the satellite leaders in- volved. Furthermore, the words "general agreement" were used to sum up the discussion of ideological matters rather than the more traditional expression "identity of views." Thus, Gomulka still remains a noncon- formist influence in the Soviet bloc. Gomulka's views were evi- dent in the Bulgarian and, to a lesser extent, the Rumanian communiques. The communique signed in Budapest, as well as his speeches in Hungary, indi- cated that broader agreement had been reached there. An Ap- parent effort was made to give Polish party support to Kadar and the centrist elements in the Hungarian party.. In con- trast to the other two visits, there were no open meetings in Budapest for the Polish leader, probably in fear of too strong a public acclaim for the leader of a nation identified with defiance of the Kremlin. Ap- parently as a Polish concession to Kadar's sensitivity`::on this SECRET PART II NOTES AND COMMENTS Page 3 of 16 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 i%ww SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 22 May 1958 issue, only the Hungarian com- munique failed to make a refer- ence to "sovereignty, independ- ience , and nont terference in internal affairs." Kadar claimed that most disagreements between the two countries--particularly the disagreement over the Hungarian revolution--had been eliminated, He played " on 'o . 4s ,?tyx aiAts- omy.; line by insisting that each party could best determine the actions necessary to solve its own internal problems. Gomulka for his part acquiesced in the view that, in the last analysis, counterrevolution had to be put down with the brotherly aid of the USSR, but he added that he deplored the "profoundly tragic" fact that many Hungarians who thought they were fighting for "'demee- I7 P found themselves fight- ing against it. In all three capitals, the host leaders stressed the leadership of the USSR in the Communist world, but Gomulka did no more than recognize the USSR as the first and most pow. erful socialist state. This distinction, which was clearly evident in the press coverage, will probably contribute con- siderably to Gomulka's reputa- tion among the more liberal political elements in Eastern Europe. The dispute between the USSR and Yugoslavia was not pub- licly mentioned, prraasbtiy; Oecaus e Gomu,lka+.,wwauted- to-, avoid deep in- i~oltvean net n. a diipute. hellther side of. . which h e fully endorses: During the course of the three days Gomulka spent in each country, demonstrations Of bloc unity predominated, joint eco- nomic commissions were created, increased trade was agreed on, and the whole Soviet peace cam- paign was promoted. HUNGARY AND THE, SOVIETYUGOSLAV DISPUTE In the face of the deteri- oration of soviet-Yugoslav re- lations, Hungary's party leader Kadar is seeking to comply with Moscow directives to suppress all dangerous manifestations of liberalism in his country but continues to reassert his intention to adhere to methods of persuasion, notably in agri- cultural collectivization. He nevertheless appears to have lost some ground to his extreme "hard-line" critics within the Hungarian party, who may be us- ing the condemnation of Tito's policies by Moscow. and Peipi*g as grounds for attacks on Kadar. While the very presence of Gomulka in Hungary should have strengthened Kadar'within the Hungarian party, there is evi- dence that the visit, coming as it did during the hardening of the bloc line toward Yugo- slavia, was a source d some embarrassment to him. Although he has long been angling for Polish support, Kadar was re- luctant to identify himself closely with the Polish leader;;, perhaps because any indication of fraternization would play into the hands of his Stalinist opponents. The visit in the long run, however, may serve to shore up the moderate fac- tion in the Hungarian party which advocates policies closely resembling those of Gomulka. SECRET PART II NOTES AND COMMENTS Page 4 of 16 Approved For Release 2007/10/23: CIA-RDP79-00927AO01700110001-2 Approved For Release 2007/10/23: CIA-RDP79-00927A001700110001-2 CURRENT INTELLIGENCE WEEKLY 'SUMMARY 22 May 1958 Kadar's situation is made more difficult as a result of the' deterioration of Soviet- Yuggs].av relations, since Hun- gary of all the bloc countries experienced the most drastic consequenOOs of the 1948 break. Although Kadar has not deviated from the Moscow-approved pdsi- tion on Soviet leadership Of the "camp"