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CURRENT INTELLIGENCE WEEKLY SUMMARY

Document Type: 
CREST [1]
Collection: 
General CIA Records [2]
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00927A001100070001-4
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RIPPUB
Original Classification: 
S
Document Page Count: 
40
Document Creation Date: 
December 16, 2016
Document Release Date: 
February 2, 2005
Sequence Number: 
1
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Publication Date: 
January 31, 1957
Content Type: 
SUMMARY
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WCUM ? NO. , DECLABSWIED P4Q CHANGE IN 7 CLM, CIE W T NE ~xr REVIEW DATE: AUTh: , jR 70- Approved Fo ,ase 2005/02/14: CIA-RDP79-0092700110007000 4 COPY NO. 18 OCI NO. 0056/57 31 January 1957 CURRENT INTELLIGENCE WEEKLY SUMMARY CENTRAL INTELLIGENCE AGENCY I I I OFFICE OF CURRENT INTELLIGENCE CO N FI ENTIAL 25X1 25X1 State Department review completed Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 Approved For (ease 2005/02/14: CIA-RDP79-0091100070001-4 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 2005/02/14: CIA-RDP79-00927AO01100070001-4 9270070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 T H E W E E K I N B R I E F THE ALGERIAN SITUATION . . . . . . . . . . . . . . . . . Page 1 The widely heralded Moslem general strike in Algeria, which began on 28 January, appears to be subsiding but may be resumed in full force when the UN General Assembly begins its debate on Algeria next week. In France, the victory of moderate rightist elements in a recent by- election is likely to increase pressure on Premier Mollet to make his Algerian program more palatable to the conservatives in the National Assembly. MIDDLE EAST DEVELOPMENTS . . . . . . . . . . . . . . . . Page 2 Egypt and Israel are resisting diplomatic pressure for modification of their stands on the Gaza and Gulf of Agaba.issues. The UN debate not having produced a solution thus far, attempts are being made to proceed by bilateral negotiations, such as those India is re- ported undertaking in Cairo. NOTES AND COMMENTS VISIT OF IRAQI CROWN PRINCE ABD AL-ILAH . . . . . . . . Page 1 Iraqi crown prince Abd al-Ilah, whose visit to the United States coincides with that of King Saud, exerts much behind-the-scenes influence on his country's political affairs. Since the Suez Canal intervention, Iraq has been playing down its relationship with Britain and has been turning toward the United States. Abd al-Ilah will probably seek larger American military assistance', especially for the Iraqi air force, and will attempt to persuade the United States to join the Baghdad pact. KASHMIR . . . . . . . . . . . . . . . . . . . . . . . Page 2 The UN Security Council resolution of 24 January re- newing the earlier call for a plebiscite in Kashmir was met with satisfaction in Pakistan and with deep hostility in India. However, India is unlikely to resort to armed action. CON I '---I 25X1 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927A001100070001-4 THE WEEK IN BRIEF Approved For lea a 2005/ REPfRDP79-00927A 0070001-4 31 January 1957 CYPRUS: THE TURKISH POSITION AT THE UN . . . . . . . . Page 3 Turkey will enter the forthcoming UN General Assembly debate on Cyprus determined to prevent an extension of Greek sovereignty to the island, from which Turkey's southern coastline and defense bases could be dominated. INDONESIA . . . . . . . . . . . . . . . . . . . . . . . Page 3 President Sukarno, in a speech on 27 January, appealed directly to the public for support of his assumption of a more powerful role in the Indonesian government, and indicated he would continue to emphasize a unitary rather than a federal state. Military and political relations between Djakarta and Sumatra remain at an impasse, and political parties are resuming agitation for a major cabinet shake-up. NENNI SOCIALIST PARTY CONGRESS . . . . . . . . . . . Page 4 The Nenni Socialist Party congress scheduled for 6-10 February is expected to concern itself largely with the question of whether the party should maintain ties with the Communists or unite with the Saragat Socialists, who are at present part of Italy's coalition government. Any Socialist reunification would have a decisive effect on the position of other parties and probably would lead to readjustments in the composition of the Italian cabinet. FORTHCOMING SUPREME SOVIET MEETING . . . . . . . . . . . Page 6 The meeting of the Supreme Soviet scheduled to open in Moscow on 5 February will consider the government's 1957 state budget and perhaps the 1957 economic plan. One or more of the top leaders may spew on economic policy and political matters, such as the ferment among Soviet students and intellectuals, and Soviet policy toward the Middle East. SECRET ii Approved For Release 2T00 0,11-C1 -F JF00927A001100070001-4 25X6 Approved For ReA@W 2005/02 LIk: q P79-00927AQ(110070001-4 SE w CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 SOVIET LEADERS TOUR THE PROVINCES . . . . .. . . . . . . Page 7 In the past two weeks, top Soviet leaders have made quick trips to outlying districts of the USSR to present Order of Lenin awards to 14 republics, oblasts and krais for their outstanding achievements in agriculture during 1956. The extensive publicity accorded the visits and the wide range of subjects covered in the speeches suggest that the members of the collective leadership desire to make a show of their personal concern for the welfare of the people and to arouse enthusiasm for the regime's policies-on current economic and international problems. CHOU-RESUMES ASIAN TOUR . . . . . . . . . . . . . . . . Page 8 Back in Asia after visits to Moscow and the troubled Satellites, Chou En-lai has resumed his efforts to per- suade the neutral nations that Peiping is the champion of Asian-African freedom and solidarity, devoted to the ca use of peace and deserving of international acceptance. F__ 1 ZHUKOV VISIT TO INDIA . . . . . . . . . . . . . . . . Page 9 Soviet defense minister Zhukov's principal task on his visit to India probably is to repair the damage to Soviet-Indian relations caused by Indian "misunder- standings" of Soviet actions in Hungary. Soviet sympathy and support for India's claims to Kashmir may help over- come this coolness, although Zhukov's bitter attacks on American policy appear to have embarrassed his hosts. CHINESE COMMUNIST YOUTH DISCIPLINE PROBLEMS . . . . . . Page 10 Peiping newspapers and radio broadcasts have recently taken issue with what they describe as a trend toward irresponsible behavior among Chinese middle school stu- dents and young factory workers. These comments may re- flect official concern lest student unrest become a p roblem in China as it recently has in the USSR. r- I SECRET iii Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 THE WEEK IN BRIEF Approved For RqLW 2005/0 IIRDP79-00927A 0010070001-4 1_ ,r CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 INTELLECTUAL DISSATISFACTION IN CZECHOSLOVAKIA . , . , Intellectual dissatisfaction reminiscent of the early stirrings of discontent in Hungary and Poland has recently flared into the open in Czechoslovakia. The authors' union weekly has criticized the destructive effects of the Socialist system on both the individual and society, and its editor has pleaded for understanding for "progressive" writers. The regime may have to resort to repressive measures in an attempt to ensure conformity. THE EAST GERMAN REFUGEE PROBLEM . Page 11 25X1 Page 12 During 1956, a steady flow of refugees to the West continued to deplete East Germany's manpower resources. The 1956 total of 279,488 is the second highest for any year since 1949, when accurate records were first kept. More than 3,000,000 persons, about 17 percent of the population, have left East Germany since the end of World War II. The loss particularly of skilled technicians seriously interferes with the regime's plans to increase industrial and agricultural production. F__ I 25X1 INTERNATIONAL COMMUNIST MEETINGS . . . . . . . . . . . . Page '13 In an attempt to enforce unity and discipline in the Communist camp, Moscow apparently has been promoting a series of meetings of Sino-Soviet bloc government and party leaders. The latest issue of the Soviet theoretical journal, Kommunist, opposes "a return to all forms of centralized organ nation" such as the Cominform or Comin- tern, but supports "international meetings of represent- atives of the various Communist parties" strengthen international Communist unity. 25X1 CAMBODIA . . . . . . . . . . . . . . . . . . . . . . . . Page 14 Prince Sihanouk is finding it increasingly difficult to maintain undisputed leadership in Cambodia. Dissatis- faction with his rule has apparently spread through his own political organization, the Sangkum. There is deep- ening concern among Cambodian leaders over Sihanouk's encouragement of close contacts with the Communist bloc. SECRET iv Approved For Releases M :1CIAP9-00927A001100070001-4 Approved For Rj a 2005/OBI ,,A DP79-00927AQ( 070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 PATTERNS AND PERSPECTIVES STATUS OF THE TOP SOVIET LEADERS . . . . . . . . . . . . Page Relationships within the top Soviet hierarchy have increasingly become the subject of speculation. in Moscow. According to some reports, important changes are to be made at the Supreme Soviet meeting scheduled for 5 Feb- ruary. Throughout the crises which arose in the past year, in connection with the de-Stalinization campaign and the events in Hungary and Poland, Khrushchev has shown flexi- bility in adapting himself to new circumstances--includ- ing reversals in some of his policies. THE NILE WATER CONFLICT BETWEEN EGYPT AND THE SUDAN, . , Page 6 In the conflict between Egypt and the Sudan over the disposition of the Nile waters, Cairo claims rights to a greater portion of water than Khartoum is willing to acknowledge and wants a larger share of any surplus resulting from the construction of new works on the river. The Sudan is not immediately in need of more water;-, but, in order to forestall Egypt's de facto acquisition of additional water rights,desires a final determination of the shares each nation is to receive before any new con- WEST GERMAN REARMAMENT . . . . . . . . . . . . . . . . . Page Under revised rearmament plans, the West German government plans to have 135,000 men in uniform by the end of 1957 and seven divisions ready for combat by mid- 1958. The new figures are a downward revision from an earlier NATO-approved goal of 270,000 by the end of SECRET v 25X1 25X1 Approved For Release gff0 EfKCf-RJEQf0927A001100070001-4 Approved For Rem 2005/02/1~C IA-RDP79-00927AQ11 070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 25X1 SECRET vi Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 THE WEEK IN BRIEF Approved For Rem 200 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 PART I OF IMMEDIATE INTEREST THE ALGERIAN SITUATION The widely heralded Moslem general strike in Algeria, which began on 28 January, appears to be subsiding but may be resumed in full force when the UN General Assembly begins its debate on Algeria next month. In France, the victory of moderate rightist elements in a recent by-election is believed likely to increase pressure on Premier Mollet to make his Algerian program more palatable to the conservatives in the National Assembly. The strike, launched by the National Liberation Front (FLN) in anticipation that the United Nations would take up the Algerian item this week, was most effective in the capital and in eastern cities, where up to 100 percent of the Moslem population reportedly co-operated from the outset. Elsewhere the strike was less widely observed. . In France, where there are nearly 500,000 Algerian labor- ers, 60 to 70 percent responded in the Paris area and about 25 percent in the provinces. The strike did not have severe paralyzing effects any- where, however, as essential services in Algeria were main- tained by Europeans with the aid of military personnel and convicts. Elaborate security precautions were taken by the French administration. As the week progressed, a back-to-work movement began, but as of 30 January, the bulk of Moslem workers in the Algiers area was still on strike; Although there was a spate of bombings and assassinations as well as two large frontier engagements in Algeria last week end, neither the increased urban terrorism nor the large- scale military offensive which the rebels reportedly planned to co-ordinate with the strike materialized. Such attacks may be timed to coincide with the UN debate, now scheduled to begin on 4 February, when the strike presumably will be intensified. The American consul general in Algiers be- lieves that the nationalist leaders are prepared to sacrifice thousands of lives in an effort 25X1 to ensure UN intervention. The temper of the local Europeans is such that any marked increase of terrorism is likely to provoke them into all-out reprisals against the Moslems. If this situation can be averted however, and the UN debate is terminated speedily on terms not favorable to France, some French officials now feel that the FLN will soon agree to negotiate a cease-fire on the basis of Premier Mollet's 9 January "declaration of in- tention." PART I Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 OF IMMEDIATE INTEREST Pare 1, of 3 Approved For Relpasre 2005/022<F DP79-00927AOQ 20070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 Algiers' Mayor Chevallier, who has been persuaded that Algerian independence is inev- itable, recently told the Amer- ican consul general that the FLN realizes the Mollet pro- posals contain "the guarantees of power and independence," but that extremists want France to lose face in the UN before ac- cepting them. The 27 January by-election in Paris indicated that the electorate supports the govern- ment's policy for Algeria. Al- though the defeat suffered by the French extremists reduces the immediate fears of an at- tack on French parliamentary institutions, such fears would revive following an unfavorable resolution in the UN or large- scale uprisings inAlgeria. Mallet still faces dif- ficulty, however, since the moderate right considers itself the principal victor in the election. The American embassy anticipates pressure on Mollet to make changes in his Algerian policy, particularly to quality the offer of voting equality for Europeans and Moslems. Mollet probably hopes to offset such pressure by taking a strong position, in the UN de- fending France's role in Algeria and rejecting UN interference. MIDDLE EAST DEVELOPMENTS Egypt and Israel are re- sisting diplomatic-pressure for modification of. their stands on.., the Gaza and Gulf of Aqaba is- sues. Egyptian foreign minister Fawzi objects to proposals to station UN troops in Gaza and at the entrance to the gulf on the ground that this would re- ward Israeli aggression. Pressure on Egypt does not seem likely to get very far in the immediate future. A member of the Indian UN delegation re- ports that his government has been pressing hard-to-get Egypt to adopt a "reasonable atti- tude." However, the Indians have found Cairo willing to go no further than a three-point scheme calling for withdrawal of forces, reaffirmation of the armistice agreement which Israel claims has lapsed, and deploy- ment of the UNEF along both sides of the Egyptian-Israeli armistice line. This does not appear to be any advance over the earlier Egyptian position. The last point, included in Hammarskjold's report, was also raised earlier by Nasr. Egypt's firmness is sup- ported by other members of the Asian-African bloc in the UN, but there seems to be signifi- cant "go slow" sentiment mixed with this support. The Egyp- tians, themselves do not appear anxious for immediate drastic UN action against Israel; they have no specific suggestions as to how to get the Israelis to withdraw, although the Cairo press, in its usual bellicose tones, threatens that Egypt might have to take the matter into its own hands. Israeli intransigence is illustrated by Tel Aviv's state- ment that it is unable to under- stand the UN secretary general's report on the withdrawal problem. SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927A001100070001-4 PART I OF IMMEDIATE INTEREST Page 2 of 3 Approved For R e 2005/03/ ...L-ldDP79-00927AQ,QUO0070001-4 31 January 1957 The Israelis are strengthened by the backing of France--the only nation to vote with them against the UN resolution calling for full evacuation. A French Foreign Ministry offi- cial last week said Israel was requesting additional arms, especially artillery, from France. He predicted that Israel would obtain French fi- nancing for` its projected pipe- line from the Gulf of Aqaba to the Mediterranean. SECRET The Israelis apparently do not expect that their stand will result in any military operations against them in the near future. Their army's., active strength is now es- timated at 65,000, including paramilitary units--a figure which marks a new low level for Israel's forces. The army re- mains capable, however, of mobi- lizing its full strength of 200,000 men in 24 to 48 hours. 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART I OF IMMEDIATE INTEREST Page 3 of 3 31 January 1957 PART II NOTES AND COMMENTS VISIT OF IRAQI CROWN PRINCE ABD AL-ILAH Prince Abd al-Ilah, both ex-regent of Iraq and heir pre- sumptive, whose visit to the United States coincides with that of King Saud, exerts con- siderable influence over Iraq's political affairs. The objectives of Abd al-Ilah's trip are manifold. He principally wished to de- termine the relationship of the Baghdad pact to the American proposals for the Middle East and hopes to per- suade the United States to join the pact. 25X1 Iraq is in a unique posi- tion among the Arab states. As the only Arab member of the pact, it is isolated from its Arab neighbors and-has become the target of a propaganda campaign carried on by Egypt and Syria, Iraq's economy and vast develop- ment plans depend on its oil royalties, which have been cut drastically as a result of Syria's demolition of the pipe- line. Syria, along with Egypt, is exploiting the cutting off of oil to force Iraq to sever its ties with the pact. COATIAL Approved For Release 2005/02/14: CIA-RDP79-00927A001100070001-4 PART II NOTES AND COMMENTS Page 1 of 15 Approved For Rene 2005/02RDP79-00927AO,QI070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 Since the Suez Canal in- tervention4 Iraq has been turn- ing toward the United States and has been playing down its relationship with Britain. Abd al-Ilah will probably seek larger American military assist- ance, especially for the Iraqi air force. 25X1 kASHMIR The UN Security Council resolution of 24 January re- newing its earlier call for a plebiscite in Kashmir was met with satisfaction in Pakistan but with strong opposition in India.. India's belligerent atti- tude is also reflected in Krishna Menon's statement to Ambassador Lodge on 24 January that there is danger of Paki- stani "fedayeen" attacks in Kashmir and that if they occur he favors taking over all of Pakistan. Concurrently, the Indian prbss has lashed out at "the interested and mischievous role" played by Britain and the United States throughout bitterness and isolation pre- vailing in New Delhi. The Indian attitude is likely to become more extreme in an attempt to discourage fur- ther UN action on Kashmir. New Delhi is adamant in opposing any form of a plebiscite-- which it would probably lose because of the 77-percent Moslem majority in Kashmir. Addition- ally, a few extremists who have never accepted partition of the subcontinent would probably welcome an incident in Kashmir as an excuse to launch an all- out attack to reincorporate Pakistan. However, India, which al- ready controls most of Kashmir, is unlikely at present to ini- tiate hostilities--especially in view of Nehru's preoccupation with the Indian national elec- tions which begin late in Febru- ary. Pakistan is equally un- likely to take violent action as long as it continues to re- ceive UN support, although the possibility remains that irre- sponsible Kashmiri or tribal elements on either side may provoke disturbances in order to force Karachi and New Delhi to act. SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927A001100070001-4 PART II NOTES AND COMMENTS Page 2 of 15 Approved For ReJ p 2005/02 c I DP79-00927A0Z1 070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 CYPRUS: THE TURKISH POSITION Turkey will enter the forthcoming UN General Assembly debate on Cyprus determined that under no circumstances must the way be opened for an extension of Greek sovereignty to the island, from which Tur- key's southern coastline and defense bases could be domi- nated. Ankara claims that Greek opposition to partition of Cyprus proves that Greece invented the self-determination scheme for Cyprus "to camouflage its struggle to annex the is- land." The Turks insist that if there is to be any change in the status of Cyprus, they must have troops on the island to safeguard the security of the Turkish mainland. Turkey will accept any of three possible alternatives: (1) Britain to retain absolute sovereignty; (2) self-govern- ment for Cyprus accompanied by the continuation of British base rights, with enosis pre- cluded after the pattern of the proh.ib+i.tion of a German-Austrian An,schluss; or (3) self-govern- ment for Cyprus, after all ter- rorism ceases, with eventual partition of the island and with military bases either retained by Britain or placed under.NATO control.. Turkey views'the idea of partition as the best of a number of unsatisfactory solu- tions. Turkey sees the necessity of demonstrating a willingness to compromise on the Cyprus issue and has therefore aban- doned its demand for retention of the status quo in favor of self-government and eventual partition of the island, pos- sibly to be accompanied by demands for a simultaneous readjustment of the Greek- Turkish border on the European mainland. During the forthcoming General Assembly debate, Turkey will undoubtedly align itself with Britain, unless it believes London is willing to accept a compromise that would violate Turkish interests. The Turkish delegation may be expected to be reserved until Greek strategy becomes apparent. Turkey opposes the idea of a UN fact-finding committee for Cyprus for fear of Soviet participation. It would prefer a more general UN resolution merely calling for continued negotiations or an agreement by the disputants to submit the controversy to the North Atlantic Council, where the issue woula ae removed from possible Soviet machinations and where Turkey would have a veto over recommendations. D Indonesia's President Su- karno has taken another step to promote his plan to estab- lish a powerful "advisory coun- cil" which, under his personal leadership, would control all Indonesian affairs. In a speech to a Communist-organized mass meeting in Bandung on 27 Janu- ary, he appealed directly to the public to support his as- sumption of a more powerful role in the government. Although he withheld spe- cific proposals "until later," Sukarno strongly criticized Indonesia's provisional SECRET 25X1 PART II Approved For Releass 0 / 1 j : :CIA-RDP79-00927A001100070001-4 UTE COMMENTS Page 3 of 15 Approved For Rgl~a a 2005/0:' 'RI-,PDP79-00927AQ"0070001-4 31 January 1957 constitution and basic laws as unsuitable for Indonesia's national development. He said he had in mind a transitional administration which would bridge the gap between the pres- ent. "unsatisfactory" situation and the completion of the new permanent constitution some two years or more hence. He indi- cated that his own concept would continue to emphasize a unitary rather than a federal state. Sukarno's appeal to the public over the heads of the political parties--who dislike certain aspects of his propos- al--appears to be the beginning of an all-out campaign to build mass support for his scheme. The successful implementation of his plans depends, however, on the restoration of a sem- blance of army headquarters' control in Sumatra, since uni- fied army support is essential. Military and political re- lations between Djakarta and Sumatra continue deadlocked. The army chief of staff, General Nasution, has traveled to Sumatra to seek a satisfactory settlement. He reportedly has talked individually with all principal officers, including Colonel Simbolon, rebel com- mander in North Sumatra. They then held a formal military conference, which opened in Palembang on 29 January. No immediate solution may be ex- pected to result from these conversations. In view of the slow devel- opment of Sukarno's plans, various political part....es have been encouraged to resume agitation for a major cabinet shake-up. The Christian Party has decided again to suggest the cabinet's resignation, and the Nahdlatul Ulama--the key to cabinet survival--reportedly has decided to call for a re- shuffle. Parliamentary debate on the cabinet's handling of Sumatra began on 28 January and will continue for two weeks, probably ending in a vote of confidence. The Nenni Socialist Party congress scheduled for 6-10 Feb- ruary is expected to concern itself largely with the con- troversial question of main- taining ties with the Communists or reuniting with the .4aragat Socialists, who are at present part of Italy's coalition government. Because Socialist reunification, if achieved, is widely expected to have exten- sive effects on the position of other parties, particularly the Communist, the Nenni party meeting is for the time being the dominating event on the Italian political scene, with a possible cabinet showdown being postponed till the outcome of the congress is known. Terms set by Saragat's Democratic Socialists last September call for a clean break with the Communists as a precondition, and the pro- Communist wing of Nenni's party consequently opposes reunifica- tion. It is not yet clear how much congress support can be marshaled against this group by Nenni's supporters who favor reunification, because by 27 January only about one quarter of the provincial federations had chosen delegates to the congress. The federation in :Rome, however, elected a proreunifi- cation delegation, an SECRET 25X1 25X1 PART I IApproved For Release ATES l 2/A*DC'-0927A001 100070001-4 Page 4 of 15 Approved For ele e 200 N9 L1 A-RDP79-00927AQD.1 .00070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 Nenni believes he now has the support of 35 percent of the party. He sees another 15, percent as close to his posi- tion, while 30 percent favor the pro-Communists, and the remainder of the party is undecided. Pierre Commin, the acting secretary general of the French Socialist Party, who sponsored the negotiations between Nenni and Saragat last fall and is attending the Feb- ruary congress, believes Nenni will get a majority of 60 to 70 percent of the delegates. If the congress drafts a statement on reunification which meets Saragat's terms for a merger, the Democratic Socialists are expected to speed up their own congress and subsequently to leave the cabinet. Even if the Nenni congress drafts only an equiv- ocal. resolution, the Segni government may be jeopardized by the withdrawal of the Democratic Socialists. They now find themselves at odds with their Christian Democratic and Liberal Party colleagues in the coalition over the pro- visions of the bill regulating agrarian contracts, and over the selection of the new min- ister for state participation in enterprises. The Communists have already indicated their concern over the possibilities of a Social- ist merger. On 2U January, party chief Togliatti attacked the moves toward Socialist unification as "harmful and dangerous" to the working class, and declared that if it hap- pened, his party would "ener- getically work" on the side of those against reunification in Nenni's party. 25X1 25X6 SECR'T Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART II NOTES AND COMMENTS Page 5 of 15 Approved For Release 2005 N J'na;=RDP79-009274WW 00070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 25X6 FORTHCOMING SUPREME SOVIET MEETING The meeting of the Supreme Soviet scheduled to open in Moscow on 5 February will con- sider the government's 1957 state budget, and perhaps the 1957 economic plan. One or more of the top leaders may speak on economic policy and political matters such as the ferment among Soviet students and intellectuals or Soviet policy toward the Middle East. Present evidence tends to discount rumors recently cir- culating in Moscow that another meeting of the party central committee will be held before the Supreme Soviet convenes, or that important changes within the leadership are in the off- ing. (See PART III, p. 1. ) Marshal Zhukov, who as a candi- date member of the party presid- ium would probably be required to attend a plenum, arrived in New Delhi on 24 January for a visit of two weeks or more in connection with India's inde- pendence anniversary celebra- tions. Another presidium candidate, N. A. Mukhitdinov, left Moscow on 19 January for a 10-day visit to Iran. Much of the speculation concerning personnel changes has centered around the possi- bility that Voroshilov, one of the remaining "Old Bolsheviks," will be retired as titular head of state (chairman of the Pre- sidium of the Supreme Soviet) and that Premier Bulganin will be given the essentially honor- ary post. It was announced on 22 January, however, that Voro- shilov will make a state visit to Peiping in April, which tends to discount the rumor. Statements of Soviet leaders and the Moscow press since the December meeting of the central committee have al- ready given some guidelines of SECRET PART I IApproved For Release i00(V/1AACI&-&K;g0927A001100070001ge 6 of 15 Approved For Re@ 2005/09& IDP79-00927A 01Q1 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957, the new budget 'and annual eco- nomic plan--the.compilation of which has probably involved at least tentative decisions on adjustments in the Sixth Five- Year .Plan (1956-1960). The continued primacy of heavy industry has been frequently restated. Additional commit- ments to increase hbusing con-, struction and improve consumer welfare in general have been promised, however, and high priority for agriculture, including the relatively un- successful'corn program, is to continue. .Lastly, much emphasis has been placed on the inten- tion to maintain all major goals of the Sixth Five-Year. Plan through better planning and management, and by increas- ing labor productivity. In the housing field, Party Life, an authoritative journal of the central commit- tee, has editorialized that housing presently requires the same kind of "national attention previously given the new lands program," according to"the American embassy. Mme. Furtseva, candidate presidium member, is reported to have said that the Moscow area housing allocation will increase about 22 percent in 1957. A redirection of industrial investment will probably be ordered by the plan for 1957, with an accompanying reduction of new starts in industrial con- struction in order, to concen- trate resources on completing important projects. In addi- tion, a reduction in the total volume of investment this year is possible as part of a re- scheduling of the five-year 25X1 investment plan. (Prepared jointly with ORR SOVIET LEADERS TOUR THE PROVINCES In the past two weeks top Soviet leaders have made fly- ing trips to outlying districts of the USSR to present Order of Lenin awards to 14 republics, oblasts and'krais for their outstanding achievements in agriculture during 1956. The extensive publicity accorded the visits and the wide range of subjects covered in the speeches suggest that'the mem- bers of the collective leader- ship took this opportunity to demonstrate personally their concern for the welfare of the people and to arouse enthusiasm for Soviet policies on current economic and international problems. The speeches had several themes in common: they played up the agricultural achieve- ments of the areas visited as glowing examples for the rest. of the USSR.; lauded recent government concessions to the citizenry, such as increased pensions and shorter working' hours; stressed the need for greater vigilance and unity in the face of a "resurgence of reactionary imperialism" in the West; condemned "Western aggression" in the, Middle East, particularly the recent American proposals; and re-emphasized the growing solidarity of the "socialist" camp. Officials participating included all full members of the presidium with the excep- tion of Pervukhin, Saburov and Ririchenko, several members of the party secretariat, and former politburo member Andrei Andreyev. Pervukhin and Saburov are presumably working full time on the 1957 budget and economic plan.to.be presented to the forthcoming Supreme Soviet session,. and Kirichenko, as first secretary of the Ukraine, is occupied with re- public party meetings. The five central Asian .-republics were visited by the most prominent Soviet leaders. An attempt seems to have been made to send a leader to those oblasts and krais with which SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 NOTES. AND COMMENTS Page 7 of 15 Approved For Redoa&e 2005/02 (j ETP79-00927A0 070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January'1957 Travels of Soviet Leaders Voronezh Oblast Saratov Oblast Chkalov Oblast ?3 ((''.,J~Chelyabinsk Oblast A `'x? Omsk Oblast SSR he had in some way been asso- ciated. Moscow received the award from Khrushchev, oblast party boss for a number of years. Malenkov was sent to his home town of Chkalov, and Suslov to Saratov, which he represents in the USSR Supreme Soviet. Secretaries Belyayev and Aristov went to Altai Krai and Chelyabinsk Oblasts respec- tively, where both had been first secretaries prior to their all- Union appointments. Andreyev, not a member of the top ruling circle, may have been picked to visit Novosibirsk because he Republics, Krais, and Oblasts recently awarded the Order of Lenin for agricultural production. Soviet Leaders and the cities to which they traveled to present the Order of Lenin awards: 1. Khrushchev Moscow 2. Molotov Voronezh 3. Suslov Saratov 4. Malenkov Chkalov 5. Aristov Chelyabinsk 6. Brezhnev Omsk 7. Andreyev Novosibirsk 8. Belyayev Barnaul 9. Kaganovich Krasnoyarsk 10. Mikoyan Ashkabad 11. Khrushchev and Tashkent Voroshilov 12. Bulganin Stalinabad 13. Khrushchev Frunze 14. Voroshilov Alma Ata has long represented one of its electoral districts in the RSFSR Supreme Soviet. Khrushchev was the only presidium member who handed out awards to more than one oblast or republic, and he was the recipient of laudatory per- sonallpraise-from Ar'istoy,who in his speech in Chelyabinsk Oblast said he felt it "neces- sary to mention the great energy and persistence, the bold initia- tive and determination demon- strated by N. S. Khrushchev in the reclamation of virgin and waste lands." CHOU RESUMES ASIAN TOUR Back in Asia once again after a hurried visit to Mos- cow and the troubled Satel- lites, Chou En-lai has resumed his efforts to persuade his hosts that Peiping is the champion of Asian-African free- dom and solidarity, devoted to Kazakh SSR the cause of peace and deserving of international acceptance. Chou pushed this theme most actively in Afghanistan, where he arrived on 19 January for a stay of five days. The joint communique issued in Kabul on 25X1 25X1 SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART II NOTES AND COMMENTS Page 8 of 15 Approved For Reloaae 2005/0?4CIIFTDP79-00927AQL1~Op070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 22 January was essentually non- committal, but Chou favorably impressed Afghan leaders and Asian-African diplomats'in Kabul. While in Afghanistan, Chou steered clear of contro- versy and made no open attacks on either the American Middle East proposals or on "colonial- ism"--unlike Marshal Zhukov, who is now visiting India. (See Part II, p. 12.), During the round of official social functions arranged by his hosts, he paid special attention to the ambassadors from Egypt, Saudi Arabia and Japan--while neglecting the Soviet diplo- mats. Afghan officials, like many others who have'dealt with Chou since 1945, were apparently convinced he was "sincere" and "reasonable." During a conversation on 23 January, the Afghan deputy foreign minister told American embassy officials his govern- ment considered continued American opposition to Commu- nist China a "gross error"which deprived the Chinese of a desired alternative to Moscow. After leaving Afghanistan, Chou stopped briefly in New Delhi on 24 January, where he conferred for a third time with Prime Minister Nehru, In Nepal, on 26 January, Chou came out against the recent UN resolution on Kashmir, which he called "not satisfac- tory," At a Republic Day reception in the Indian embassy at Katmandu, Chou told reporters he thought raising the problem in the UN--in line with the demands of Pakistan--had not produced "good results." Ear- lier, during his visits to both New Delhi and Karachi, Chou had evaded questions on the Kashmir problem by saying that he was "studying" the issue. He promised that Communist China would continue to support Nepalese development efforts and would do everything possible to promote "traditional trade" with Nepal through Tibet. Chou's visit to Nepal ended with a generally noncontrover- sial joint communique on 29 January. Chou was then planning to go to Ceylon, reportedly on an invitation requested by Peiping, where he was scheduled to stay until 5 February. He is expect- ed to return home at the end of his visit in Colombo and may go by way of Rangoon in order to sign a final agreement on the border settlement with ZHUKOV VISIT ^:'0 INDIA Soviet defense minister Zhukov and a party of high- ranking officers arrived in New Delhi on 24 January for a good-will tour of India, ostensibly to return Air Marshal Mukerjee's visit to Moscow late in 1955 and to represent the USSR at the Indian Republic Day celebration on 26 January. Following the precedent set by Bulganin and Khrushchev in their tour of South and Southeast'Asia in 1955, Zhukov bitterly' attacked American policy at a banquet the evening he arrived, to the evident embarrassment of his hosts. Zhukov reiterated the Soviet peace line and charged that SECRET 25X1 PART II Approved For Releasj$("W0J/A6 :5q-00927A00110007 a0g-e4 9 of 15 Approved For RaJ a 2005/0N R 'ZDP79-00927AQ l4gOO70001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 the United States by means of pretexts and subterfuges "is attempting to seize the positions lost by Britain and France in the Near and Middle East ...and to seize the key strategic positions and the natural resources" of the area for its own use. Zhukov's principal task as "good-will ambassador" probably is to repair the damage to Soviet-Indian relations caused by Indian "misunderstandings" of Soviet actions in Hungary. Although India is cool to the new American proposals on the Middle East, such heavy-handed approaches are not likely to endear Zhukov to Nehru and official Indian circles. How- ever, now that the Kashmir issue has re-emerged in critical form, Soviet sympathy and support may help overcome the effects of the intervention in Hungary. To date, the official Indian reception of Zhukov and his party has been relatively cool, and the Indian press has given the visit only moderate coverage. 25X1 CHINESE COMMUNIST YOUTH DISCIPLINE PROBLEMS Peiping newspapers and radio broadcasts have recently taken issue with what they describe as a trend toward ir- responsible behavior among Chinese middle school students and young factory workers. These comments may reflect official concern lest student unrest become?a problem in China as it recently has in the USSR. Criticism last spring of low academic standards in mid- dle schools was followed by a reduction in supervised extra- curricular activities, includ- ing ideological and political training, at the beginning of the school year in September. According to the Communist press, this relaxation of con- trol over student activities has led to instances of imper- tinence toward teachers and frequent absences from classes. In some cases students have re- fused to attend physical exer- cise sessions or engage in school-sponsored welfare work. Some students have resolved neither to subscribe to nor read newspapers. Student ignorance of events in Hungary and Egypt and of the work of the Chinese Communist eighth party congress has been decried. Teachers are also coming in for sharp criticism. Charged with a laissez-faire attitude, they are warned that their failure to take an interest in student political and group activities will lead to the development of "bureau- cratic individualism and radi- cal democracy" among students. Commenting on the inclina- tion of young people to defy Communist moral standards, Peiping has claimed that fond- ness for extravagant dance parties, where Western popular music is played and "women rascals" abound, has exposed youths to corrosive capitalist concepts and has had an ad- verse effect on their factory production and ideological studies. Greater ideological leadership over factory workers has been called for, and school authorities have been told to instill Communist con- cepts of morality. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART II NOTES AND COMMENTS Page 10 of 15 Approved For Re4@A 2005/0 #CRt DP79-00927A0Q11 0070001-4 CURRENT IN'T'ELLIGENCE WEEKLY STJMIGARY 31 January 1957 Chinese youths apparently h The Chinese Communists are ave not seriously questioned placing their main reliance regime policy, but have diverged from acce ted tti on strengthened political- p a tudes, judg- ideological training and closer ing by Peiping's references to "do bt " d " " supervision of youth activities u s an wrong thoughts to correct these aberrations aroused by world problems. . 25X1 INTELLECTUAL DISSATISFACTION IN CZECHOSLOVAKIA Intellectual dissatisfac- tion reminiscent of the early stirrings of discontent in Hungary and Poland has recent- ly flared into the open in Czechoslovakia. Ending eight months of silence on contro- versial issues, Czech literary figures in late December began to speak up in critical tones and responded to a regime counteroffensive with a defense of the author's right to "the wings of art and one's own voice." An article in a December issue of the Czech authors' union weekly, Literarni Nooviny, boldly criticized the estruc- tive effects of the Socialist system on both the individual and society. The author, R. J. Benes, attacked the per- sistence of Stalinism among those with "sclerotic spiritual arteries" and claimed that the people, "dragged along by the merciless mechanism of every- day planned work," are living in a type of "undesired isola- tion," Events in Hungary, the article said, caused "deep moral shock, the remedy for which is to aim a critical surgeon's knife at our own ranks;" The article was denounced quickly by the new literary periodical Tvorba, which may have been launched to counter- act Literarni Novi,ny's tendency toward fort right reporting, and by Rude Pravo, the party daily. Literarni Noviny's editor, Jan P .ar-- therto a regime spokesman--cautiously came to the defense of the magazine and the article in question, stating that it was an error for the Czech press to attribute evil intent to Czech authors expressing their personal views. Although criticizing some of Benes' views, he admitted there is a struggle for individual expression in Czechoslovakia but said it was not an attempt to "disturb the unity of the party and the people." He commented that for the literary group in Czechoslovakia "this year was not an easy one; visible results were outnumbered by scars," an indication that not only the last few months but the course of events since the Soviet party congress had caused considerable ferment and confusion within Czech in- tellectual circles. Before the Benes article appeared, the regime may have seen in Literarni Noviny a safety valve for intellectual expression. But because of the similarity of the present controversy to the ferment in Czechoslovakia last spring, which was resolutely condemned by the party conference in mid- June, the regime can be expected to try to ensure conformity by the adoption of repressive measures, if necessary. SECRET 25X1 PART I I Approved For Release 2005/02/14: CIA-RDP79-00927A001100070001-4 NOTES AND COMMENTS Page 11 of 15 Approved For Rye 2005/0` Ci DP79-00927AQQj.0070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 During 1956, a steady flow of refugees to the West con- tinued to deplete East Germany's manpower resources. The 1956 total of 279,488 is the second highest for any year since 1949, when accurate records were first kept; 331,390 fled increased sharply. Of about 64,000 in this group in 1956-- 22 percent of the total refugee flow--about 46,000 were males, or, translated into military terms, the equivalent of four Soviet-type divisions. in 1953. The loss of skilled The reasons given by re- technicians particularly cent defectors for their actions seriously interferes with the include no hope of reunifica- regime's plans to increase in- tion, continuation of the low dustrial and agricultural pro- standard of living, constant duction and thereby improve pressures and surveillance, the East German standard of ideological indoctrination of living. children, recurring drives for increased agricultural and in- Because of the refugee flow, the population in East Germany is actually decreasing. Barring German reunification, the downward trend will probably con- tinue because a large proportion of refugees are in or dustrial production, and high- pressure methods of recruiting for the armed forces. FLOW OF EAST GERMAN REFUGEES TO WEST GERMANY AND WEST BERLIN ir th b t t t o en er a ou e prime reproductive years. 1956 279,488 Approximately 1955 252 880 3,015,000 persons, , about 17 percent of the present popula- 1954 184,198 tion have left East , Germany since the 1953 331 390 f th Of d , e war. en o the 1956 total, 151,- 853 or 57.9 percent 1952 182,393 fled to West Berlin; the remaining 127,635 1951 165 648 d i t W t , crosse n o es Germany. These figures include only 1950 199,498 those registering with Western authori- TOTAL 1,595,495 ite i i s qu ties; t probable that several '4510'49 YEARLY 284,000 AV ERAGE thousand more have fled. TOTAL 1,420, 495 In the past two years the number of refugees in the 17- 24 age bracket has TOTAL 3,015,495 25X1 SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART II NOTES AND COMMENTS Page 12 of 15 Approved For R 2005/Q26ff DP79-00927AQ,I,D0070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 East German authorities have stepped up their efforts to induce refugees to redefect, and apparently have had some success with those disillusioned because the "Golden West" did not measure up to their expec- tations of high living and easy money. An estimated 200,000 refugees have returned to East Germany since the end of 1949. The regime is also con- ducting an extensive propaganda campaign to dissuade people from fleeing. Admitting that diffi- culties and shortages exist, the Communists are promising better things for the future and exhorting people to take pride in doing without luxuries for the honor of participating in building a better world for those who follow them. Without a sharp improve- ment in economic conditions and substantial political liberali- zation, neither of which at the moment appears likely, rede- fections will remain relatively few. Unless security measures are drastically tightened, the refugee flow will probably con- tinue unabated. 25X1 (Concurred in by ORR) (The organizational pat- tern Moscow is following in enforcing unity and discipline in the Communist camp is indi- cated by the recent series of meetings of Sino-Soviet bloc governmental and party leaders The latest issue of the Soviet theoretical journal Kommunist opposes "a return to al orms of centralized organization". such as the Cominform or Comin- tern, but supports "international meetings of representatives of the various Communist parties" to strengthen international Communist unity. During the last two months, French Communist leaders reportedly visited Moscow, Prague and Warsaw, and Italian Communist leaders visited Mos- cow and Prague; Chou En-lai led a Chinese governmental delega- tion to Moscow, Warsaw and Buda- pest; Czech, Polish, East Ger- man and Rumanian governmental and/or party delegations made visits to Moscow; and Bulgarian- Albanian, Polish-East German and Czech-East German bilateral talks were held.. From 1-4 Janu- ary, party and government lead- ers of the USSR, Czechoslovakia, Hungary, Rumania and Bulgaria raet in Budapest, a gathering given particular attention by Communist propaganda The events in Hungary and Poland, the growing differences with Yugoslavia and, to a lesser extent, the unrest in some Western European parties have impressed the Soviet leaders with the need to reassert their authority within the Communist movement. Some Communists have advocated setting up another organization like the Comin orm, dissolved last - April, but the latest Kommunist article appears to have ruled this out. There are several advan- tages to an informal series of meetings. The Poles possibly would refuse to join a formal organization, thus seriously undermining it. In a joint communique with the Yugoslavs in December, Poland endorsed bilateral party relations as "the most correct form." The existence of a new formal organization would draw attention to Yugoslavia's equivocal position and revive memories of the Cominform's 25X1 SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART II NOTES AND COMMENTS Page 13 of 15 Approved For Rem 2005/02 EeE ffP79-00927AQ, 070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 expulsion of Tito. Last year Soviet leaders tried to per- suade the Yugoslavs to join a new international organization. Now they are trying to isolate Yugoslavia but might fear that exclusion from such a group would drive Tito further into the arms of the West. Italian leader Togliatti has expressed his preference for bilateral contacts. Togli- atti would have a lot to lose from participation in any new organization--certain to em- phasize his party's sub- servience to Moscow--at a time when the party is wracked by dissension and is facing the difficult problem of keeping the Nenni Socialists from breaking away from the Commu- nists to join the Social Demo- crats. The Italian Communist paper has described the recent visit of Italian leaders to Moscow as an example of the new form of co-operation in the post-Cominf orm period. Moscow may try to give more authoritative ideological and political guidance by publishing an international Communist journal, presumably modeled after the Cominform j ournal. Prince Sihanouk continues to dominate Cambodian politics, but there are indications he is finding it increasingly difficult to maintain undis- puted leadership. Resentment over Sihanouk's policies and dissatisfaction with his one- man form of government appear to have spread to the National Assembly, which is composed entirely of members of the Sangkum, the prince's own political organization. In two separate actions, the assembly recently acted inde- pendently of the prince's desires in passing a press censorship law and forcing the removal of two objection- able cabinet members. Although the assembly later backed down under pressure from Sihanouk, unresolved antago- nisms are likely to precipi- tate future government crises. As a hedge against further independent action by the legislature, Sihanouk has con- trived to superimpose the semi- annual Sangkum National Congress --a public policy forum which he completely dominates--on the assembly. The congress is to play an advisory role to the assembly, and irreconcilable differences are to be resolved by public referendum, where Sihanouk is confident of over- whelming support. The growing concern of some-influential Cambodian leaders thatSihanouk's neu- tralist foreign policy is exposing the nation to Commu- nist subversion is also work- ing against him. The rapid spread of Communist propaganda and influence among the Over- seas Chinese and Vietnamese minority groups in Cambodia has been all too evident to these Cambodians. Colonel Dap Chhuon, the powerful minister of national security and a critic of Cam- bodia's close relations with the Sino-Soviet bloc, has frequently complained that Sihanouk and the government do not appreciate the gravity of the Communist penetration. As the situation continues to drift, Chhuon and others who share his apprehension may attempt to bring direct pres- sure on Sihanouk, possibly through the palace, to reap- praise his policies. SECRET 25X1 25X1 PART I IApproved For Release AQ /1A1:CI FE QS0927A001100070001page 14 of 15 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 C0 WIENTIAL Approved For Refee 2005/ 79-00927A04144#0070001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 PATTERNS AND PERSPECTIVES STATUS OF THE TOP SOVIET LEADERS The effects of the de- Stalinization campaign and events in Hungary and Poland have posed serious problems for the Soviet leaders and stimu- lated speculation concerning the status of the leadership. According to some reports, im- portant changes are to be made at the Supreme Soviet meeting scheduled for 5 February. Collective Leadership Within the collective leadership that developed soon after Stalin's death as a sys- tem of rule designed to pre- vent the rise of another Stalin, one faction came increasingly to dominate the party presidium. This faction was led by Khru- shchev, and, though its exact membership may have varied from time to time, it appears general- ly to have included Mikoyan, Bulganin, and Pervukhin. Khrushchev, like Stalin before him, used the principle of "divide and rule." He made common cause with the conserva- tive "Stalinists"--Kaganovich and Molotov--to defeat Malenkov, and then, abruptly turning his back on them, he championed a vigorously "liberal" program designed to erase the stulti- fying effects of terror and extreme centralization from the domestic scene and to secure allies and a dominant place in world affairs abroad. Despite Khrushchev's in- creasing dominance and control of the party machinery--its central apparatus, the central committee, and key positions in the party hierarchy--a form of "collective leadership" has continued. Khrushchev has as- pired to sit at the head of the table but he has shown no desire to dine alone. The highpoint in the for- tunes of Khrushchev's "inner circle" was reached just before the 20th patty congress in Feb- ruary 1956. Since then, the Soviet leaders have had to deal with such problems as those arising from de-Stalinization, the Poznan riots, failure to reach a satisfactory ideologi- cal accommodation with Tito, and the developments in Poland and Hungary. Throughout these crises Khrushchev showed con- siderable flexibility in adapt- ing himself to new circumstances --including reversals in some of his policies. Khrushchev Nikita S. Khrushchev ap- parently is still the dominant personality in the leadership and speaks authorita- tively for the regime. Apart from some rumors in mid-November and again in December that he would be replaced, and the early Yugoslav line that Tito went to the Crimea to bolster Khrushchev' s shaky posi- tion, there is no evi- dence that his status has been reduced or that KHRUSHCHEV his influence has been weakened. He has been more active than any of the other leaders, particularly in functions with a public relations value. He has made numerous speeches and otherwise acted to maintain his prominence. In Pravda of 1 January 1957, for examp e, he answered questions put by the editor of the Czech newspaper, Rude Pravo. It is an estab- lished custom for questions put by some foreign journalist to be answered at the end of the year, but since Stalin's death this has been the prerogative of 10TIAL, Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 entc-1- 111 PATTERNS AND PERSPECTIVES Page 1 of 13 Approved For Rem 2005/02/14: CIA-RDP79-00927AOQI, 070001-4 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 the premier, not the party first secretary, Bulganin answered questions put by the chief editor of the Polish radio in Pravda of 2 January, but it was dear that Khrushchev's were the more important statements. Khrushchev's once-liberal orientation in Soviet policy formation seems to have been modified in recent months. Apparently recognizing that the Soviet tide is at an ebb stage, he now appears more occupied with maintaining the status quo than trying new or unorthodox solutions to Soviet problems. As long as this orientation continues, he will be disposed toward "tried and true" methods and hence view tougher tech- niques more favorably than heretofore. He appears to have modi- fied his outlook spontaneously as the adverse effects of his "liberal" policies began to be felt. By the time the Poznan riots took place, he had ap- parently concluded he had made an error in the way he had handled the de-Stalinization campaign, and by August he prob- ably had qualms about the rapprochement with Tito. The process of reorienting his views may have been aided by the advice of the military and the influence of some of the more conservative (Stalin- ist) members of the party presidium. His quick and easy adoption of the harder line appears to have cut the ground from under any attempts by his critics to make political capi- tal of the difficulties in which the Soviet Union found itself. Khrushchev is an ebullient, self-confident and optimistic individual who may not be con- tent for long to be on the defensive in the fight against "capitalist imperialism." He is, however, more than any of the other Soviet leaders, some- thing of, a politician in the Western sense of the word and may be expected to ensure that his political position is adequately protected before embarking on a serious counter- attack in the world arena. Bulganin Nikolai A. Bulganin's exact position in the Soviet top leadership is difficult to assess. As head of the government, he ranks second to Khrushchev, and the West German delegation in Septem- ber 1955 even felt that he was the more important of the two. Others, after recent negotiations with the two, have suggested that his role is more that of an urbane and cul BULGANIN tured front than of an independ- ent.voice in policy formula- tion. Perhaps Bulganin is, as suggested by one of the Japanese who took pact in the recent negotiations with the Soviet leaders, "a very thought- ful and cautious individual." If so, he may find it difficult to hold his own with the more volatile and impulsive Khru- shchev. Bulganin's prestige may have been damaged, as Ambassador Bohlen suggests, by the results of the December central committee plenum. The plenum's decree on his report called for "im- provement" in the leadership of the national economy, and as head of government Bulganin is the highest official responsible for that leadership. "Improve- ment of Leadership, of the USSR National Economy," however, was the subject of Bulganin's re- port to the plenum and he, presumably, was the one de- manding the improvement. Bulganin apparently remains a responsible and trusted member of Khrushchev's "inner circle," but probably does not have an independent power position in the party presidium. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001100070001-4 PART III PATTERNS AND PERSPECTIVES Page 2 of 13 Approved For ReFeagg,2005/053CR .7 DP79-00927AQQ.11 0001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 Mikoyan Anastas I. Mikoyan is also a member of the Khrushchev "inner circle" but does appear to have an independent power position. He impressed a member of the Japanese delegation in the negotiations this fall as one of the most powerful of the Soviet leaders and one who appeared to have the loyalty of a number of the younger bureau- crats. He is probably the third if not the second most powerful and influ- ential member of the top lead- ership. Although long identi- fied as an exponent of the '-'liberal" line, he has shown a facility for adapting his views to changing conditions and it may be presumed that he agrees with the somewhat tougher line now in effect. Mikoyan has been particu- larly susceptible to blame for the Hungarian crisis because he, along with Suslov, was en- trusted with Hungarian matters this past summer and fall. He presided over Gero's replace- ment of Rakosi in July and ap- peared again in Budapest with Suslov on 25 October. After observing conditions in the Hungarian capital he, in the words of one report, "berated Gero for having stampeded Mos- cow through an exaggerated and distorted picture of the nature of the Budapest revolt." He and Suslov then picked Kadar to succeed Gero as party boss. On 10 January, when Kadar was in Moscow for talks with Chou En-lai and the Soviet leaders, Mikoyan participated. This in- dicates his continuing concern with Hungarian affairs. Pervukhin Mikhail G. Pervukhin may now be the fourth ranking mem- ber in the top leadership. His recent appointment as head of the State Economic Commission for Short-term Planning, the granting of executive functions to the commission, and the assignment of five former dep- uty premiers as his deputies confirm earlier indications of his in- creasing authority. . His position in the top leadership stems almost exclusively from his administrative and tech- nical abilities--he ap- pears to have even less of an independent power position in the party presidium than Bulganin. His views on general policy are probably more narrowly economic than the others of the "inner circle." Pervukhin has for some time ranked high as an executive in the government, possibly second only to Bulganin in general administrative matters. He has on occasion served as acting premier and may have been chairman of the Council of Ministers' Commission for Cur- rent Questions. This commission waa formed by the presidium .of:' the Council of Ministers "to examine and decide all current problems except those decided by the first deputies and the deputies of the chairman of the USSR Council of Ministers." This commission appears to bear some resemblance to the old "buro" of the Council of Minis- ters.. Chairmanship of it, is likely to convey considerable power to the holder. The executive powers granted the planning commission in Decem- ber may have been taken from the Commission for Current Ques- tions, although there is every likelihood that some of the powers were taken from other sources as well, including in- dividual members of the Council of Ministers. Kirichenko Aleksei I. Kirichenko un- doubtedly owes his position as SECRET PART III Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PATTERNS AND PERSPECTIVES Page 3 of 13 Approved For Relea~e 2005/02SE P79-00927A001.10 70001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 party boss in the Ukraine and also on the all-Union party presidium to his old mentor, Khrushchev. As long as Khrushchev continues to maintain close associ~- ations with the Ukraine,- Kirichenko will probably .not be able to build up an independent power base there, but the job has good potentialities and his influence in the republic may'some day serve to further his KIRICHENKO career. For the moment he appears content to concen- trate on Ukrainian problems and follow Khrushchev's lead in national affairs. Mikhail A. Suslov seems to be a secondary figure in the top.leadership and may have been put on,the._presidi- um primarily to',. provide, in..addltion. to Khru- sh.chgv,:.a br.idge.between it and the secretariat. He appeared to one ob- server who talked with him as quite unimpres- sive and not the "power- ful young man" reported by the press. There is no evidence to support SUSLOV the recent press claims that he is a "hard-line advo- cate" but there have been re- ports that he tends to be rather doctrinaire on occasion. His speech on 7 November was relatively mild, as was also the speech Mme.Furtseva deliver- -ed. for him to the Italian Com- munist Party. in December. Suslov, like Mikoyan, has been susceptible to blame for the Hungarian situation since he, too, was entrusted with Hungarian matters. There have, however, been no indications of any changes in his status. Malenkov Georgy M. Malenkov's partic- ipation in the five-nation talks in Budapest is the first. confirmed instance since his demotion from the premiership in February 1955 in which he has been en- trusted to represent the Soviet government in broad policy matters. It. lends credibility to the rumors that he and Sus- lov were in Budapest during the latter half of November, presumably guiding the Kadar re- gime in its attempts to regain control over the Hungarian people. These events suggest that Malenkov's status is improving, but the improvement, at this point, doesnot appear sufficient- ly great to make him a threat to Khrushchev's leadership. He remains a deputy premier, the lowest ranking job held by any party presidium member, and the significance of his presence at the Budapest meeting is par- tially vitiated by the fact that he did not particpate in the. talks Kadarhad with Chou En-lai and the Soviet leaders in Moscow on 10 January. It may be, however, that his period of punishment for having "failed" as premier is at an end and that he may soon be made a first deputy premier like Mikoyan, Molotov, Kagan- ovich, Pervukhin and Saburov, or, alternatively, he may be returned to work in the party secretariat where,. as Khru- - shchev's subordinaise,,,he...might be able to exercise the talents that Stalin found so useful. Voroshilov Kliment Ye. Voroshilov is an old man (76) who, as presi- dent of the Presidium of the Supreme Soviet, is chief official greeter for the Soviet state:. He4s virtually devoid of,.-any . real ,.power or-- influence. Rumors of ehis imminent ^retire- ment) persist and..-it is entirely possible he might be transferred to an even lesser position. SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART III PATTERNS AND PERSPECTIVES Page 4 of 13 Approved For Release 005/04WREIIDP79-00927A00I10 770001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 There are few strains connected with his job, however, and his health continues to be adequate to handle the few requirements it poses for him. On 15 April, he is scheduled to make a state visit to China to "strengthen Sino-Soviet friendship." State Control appears to mark the lowest point in his career since he first became a member of the polit- buro, in 1926. This is true despite the re- gime's avowed intention to broaden the powers and improve the activi- ties of the ministry, for he is now removed MOLOTOV from the vital area of foreign policy and saddled with responsibility for minis- try, which has little potenti- ality for becoming a base of political power. Kaganovich Lazar M. Kaganovich, like Molotov, has lost political power and in- fluence during the past two years and seems now to be largely reduced to the role of trouble- shooter in narrow areas of the economy. The ebb in Kaganovich's fortunes began well before the autumn of 1955 since by KAGANOVICH that time Pervukhin, who of all the presidium members most closely approximated him in industrial knowledge, ex- perience and administrative ability, had forged ahead of him to become acting premier in Bulganin's absence. In December 1956,when Saburov's planning commission was under fire at the party plenum, it was Pervukhin who was selected to iron out difficulties in the broad field of economic planning. Saburov Maxim Z. Saburov's claim to a position in the top leadership stems more from his long experience and undoubted technical qualifications in ad- ministration of the economy than from a personal political fol- lowing. Once a mem- SABUROV ber of Stalin's personal secre,: tariat, he has undoubtedly lost prestige as a result of his removal in December from the State Economic Commission for Short-term Planning. He re- tained the position of first deputy premier, however, which suggests that he is to be as~+ signed *,.dther administrative. responsibilities in the Soviet government. Zhukov Marshal Georgy K. Zhukov, though only a candidate mem- ber of the party presidium, not only commands the armed forces, but has great personal popu- larity among Soviet citizens generally, which gives him the potentiality for exert- ing an even greater influence on Soviet policy than some pres- ent.. full members of the presidium. In ad- dition,. the fact that the Soviet leaders used the Soviet army in Hungary and threatened to use it in Po- land has undoubtedly increased his influence on policy. He SECRET Vyacheslav M.,Molotov's assignment as USSR Minister of Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART III PATTERNS AND PERSPECTIVES Page 5 of 13 Approved For Rele_)005/0N&cBE.KTDP79-00927AO01170001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 has, however, shown no inclina- tion to act in an independent way. He has reportedly been fiercely zealous in safeguard- ing the military interests of the Soviet Union as well as the interests of the military, but seemingly is willing to leave general political ques- tions to the other leaders. THE NILE WATER CONFLICT BETWEEN EGYPT AND THE SUDAN In the conflict between Egypt and the Sudan over the disposition of the waters of the Nile, Cairo claims rights to a greater portion of water than Khartoum is willing to ac- knowledge and wants a larger share of any surplus resulting from the construction of new works on the river. The Sudan is not im- mediately in need of more water, but de- -a -P4 l Harvested acreage--allowing for multiple harvests on the same land--is now about 6,200,000 .acres, approximately equal to the amount of harvested acreage in Mississippi. Egypt's popula- tion, however, is about 24,000,- 000 compared to Mississippi's 2,500,000. EGYPT: POPULATION PRESSURE ON LAND na deter- POPULATION .i1- _ ~_ MILLIONS -4 --+4 __ of each nation is to re- ceive before any new construction begins in order to forestall Egypt's de facto ac- quisition of addition- al water rights. Pressures on Egypt Because of Egypt's extremely small rain- fall, agriculture de- pends entirely on wa- ter from the Nile. 1897 1910 31 JANUARY 1957 PER CAPITA HARVESTED ACREAGE WITHOUT NILE DEVELOPMENT WITH NILE II SECRET 25X1 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART III PATTERNS AND PERSPECTIVES Page 6 of 13 Approved For Re ase 005/02/14: CIA-RDP79-00927A001` 100 70001-4 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 THE NILE RIVER Even the most ambitious development program is unlikely to increase Egypt's agricul- tural area to over 7,785,000 acres. The Aswan High Dam, after an expenditure of some- $1.2 billion would bring undLr continuous irrigation only 1,349,000 acres of new land and convert 695,460 acres of partially irrigated land into fully irrigated areas. Egypt's growing population will probably exceed by 1980 that of France today--some 43,000,000. Cairo has made some efforts to alleviate the pressure for land by reclama- tion and settlement, especially in the much publicized Libera- tion Province on the western edge of the Nile delta. Proj- ects there, involving collec- tive and communal farming, are still in a very early stage, however, and are unlikely ever to yield substantial benefits. Egypt's Position Cairo disagrees with Khartoum on the average flow of water past Aswan, rights to existing water supplies, and the relative shares of each country in any surplus brought about by new works. Egypt insists that the average flow at Aswan is only 0 AVERAGE NILE DISCHARGE AT ASWAN Figures based on selected periods (BILLIONS OF CUBIC METERS) 103 Includes maximun flooa years Excludes maximum flood years Includes maximum and mimimum flood years 1913- 1914 LOWEST YEAR MEDITERRANEAN SEA ~AHundrip Suez Canal BELGIAN CONGO Lake, Kluu RUANDA-URUNDI SAUDI ARABIA 80 billion cubic meters rather than 84 billion cubic meters as claimed by the Sudan. A conservative estimate of the average flow is 83 billion cubic meters. Egypt also claims 51 bil- lion cubic meters in existing water rights, 3 billion cubic meters more than Khartoum ac- cepts. Based on the amount of irrigated land, at 8,000 cubic meters per year per acre, the figure would be 48.21 billion. Neither country disagrees with the Sudan's existing rights of some 4 billion cubic meters. Egypt's claim to an even- tual total of 62 billion cubic meters would be more than adequate for all irrigation SECRET 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART III PATTERNS AND PERSPECTIVES Page 7 of 13 CURRENT INTELLIGENCE WEEIMY SUMMARY 31 January 1957 purposes. If the maximum amount, 7,785,000 acres, of land in Egypt were irrigated, approximately 58.25 billion cubic meters of water would be required. The Sudan is will- ing to allow 49 billion cubic meters as Egypt's ultimate share. The Sudan's Position Sudanese engineers say that 5,500,000 acres of land are suitable for immediate NILE WATER SUPPLY & ALLOCATION Approved For R as .2005/02/14: CIA-RDP79-00927A0 1 j0 - 70001-4 SECRET (BILLIONS OF CUBIC METERS) * SUDANESE CLAIMS EGYPTIAN CLAIMS EGYPT 48 UDAN 4 AMOUNT OF TOTAL WATER EXISTING AVAILABLE WATER RIGHTS EVAPORATION AT HIGH DAM UNALLOCATED SURPLUS In defense of its position, Khartoum cites a study made by an American engineer, H. L. Cory, which was published by the Egyptian government in 1920. Cory would have given Egypt a total of 61 billion cubic me- ters? the Sudan 23 billion cubic meters. Now, however, the Sudan argues that because of its rap- id development, this figure is too low and it needs 31 AFTER AFTER DEVELOPMENT CONSTRUCTION OF NILE OF ASWAN BASIN DAM SUDAN'S SHARE OF SURPLUS EGYPT'S SHARE OF SURPLUS development--3,000,000 with a gravity irrigation system in the Gezira between the White and Blue Nile south of Khar- toum, 1,500,000 acres with pump irrigation systems on the Niles; 500,000 to be watered from the Atbara River; and 500,000 to be watered from the proposed Jonglei Canal. The Sudan claims the right to irrigate this area at the same rate as Egypt--8,000 cubic meters of water an acre per year. The total figure the Sudan wants would thus be 44 billion cubic meters, the equiv- alent, 6ecause of evaporation loss, of 35 billion cubic meters at Aswan. billion cubic meters more than it now re- ceives. Khartoum, admitting that it would be a number of years before it could use the full amount it is asking, insists that water rights be determined before any diversion project such as the Aswan High Dam-- is built and Egypt acquires more water rights. Existing Works Egypt has six barrages but only one dam--the Aswan Dam built in 1902 with a present reservoir capacity of 5.3 billion cubic meters. Barrages are designed not to store flood waters, as is the Aswan Dam, but to regulate the water level ;during flood time and divert it into irrigation canals. The Sudan has no barrages but has two dams, the Senna on SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PAMZT III PATTERNS AND PERSPECTIVES Page 8 of 13 CORY AWARD 1920 Approved For ReI? - 005/02/14: CIA-RDP79-00927A0 1i10Q70001-4 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 SCHEMATIC DIAGRAM OF NILE BASIN PROPOSED WORKS ~ EXISTING WORKS FIGURES INDICATE GROSS STORAGE IN BILLIONS OF CUBIC METERS EGYPT SUDAN ASSUIT BARRAGE NAG HAMMADI BARRAGE ISNA BARRAGE (130) Y ------IO------------------ SEMNA DAM ifain Nile yMEROWE DAM (4TH CATARACT DAM) Atbara River SECRET ey EL GIRBA DAM Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART III PATTERNS AND PERSPECTIVES Page 9 of 13 Approved For Rele a 2005/02/14: CIA-RDP79-00927AQQjjL 0070001-4 SECRET CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 the Blue Nile and the Gebel Aulia on the White Nile. The Senna dam--with a relatively small storage capacity of 1 bil- lion cubic meters--stores water to irrigate the Sudan's cotton crop in Gezira without using Nile waters during the summer, when the natural river flow is used almost exclusively by Egypt. The Gebel Aulia dam-- completed in 1937 with a reser- voir capacity of 2.5 billion cubic meters--was built solely to irrigate Egyptian land. Proposed Development Projects All existing works in the Nile system are designed prin- cipally to regulate the annual' flood,and none are concerned with irrigation storage over a period of years. The next step in the Nile development is to provide long-term storage fa- cilities. If this is not done, an extension of the irrigated area could prove disastrous in a year with water shortage. Two general plans have thus far been advanced, the Aswan High Dam and a comprehensive storage scheme. Egypt's high dam pro- posal was first seriously put forth in 1953. The storage scheme, favored by the Sudan, has long been under study. The Aswan High Dam The Aswan High Dam project involves the construction of a dam across the Nile about five miles upstream from the exist- ing Aswan Dam. The new dam would create a reservoir with a capacity of 130 billion cubic meters. Its primary purpose would be to store water for irrigation. Secondarily it would protect Egypt's downstream areas from flood and provide improved navigation conditions. The dam itself would take at least 10 years to build. The reservoir would store 70 bil- lion cubic meters of water for irrigation, plus 30 billion cubic meters for flood control. The other 30 billion cubic meters would be allowed for deposition of silt. The advantages of this project to Egypt would depend on the share of the water Cairo would receive under its agree- ment with the Sudan. If Egypt's share were significantly less than 61 billion cubic meters, the project might not be worth the large investment required, It is on this point that dis- cussions with the Sudan were broken off in mid-1955, and Khartoum refused to acknowledge Egypt's right to this amount. Comprehensive Storage Scheme This plan calls for a se- ries of dams and barrages to be built largely in the Sudan. The bulk of the long-term storage of irrigation waters, however, would be in Lake Albert and Lake Victoria. By raising the water level of Lake Albert one meter, and Lake Victoria four feet, the amount of stored water would be equal to 105.3 billion cubic meters, some 35 billion cubic meters more than the expected capacity for irriga- tion storage of the high dam. Because of the large swamps through which the water from these lakes now passes, however, the water loss through absorb- tion is substantial--on the average about 50 percent. To avoid this, a diversion canal-- the Jonglei Canal--would have to be built. In addition,a number of regulating barrages would be required, as well as a dam at Lake Tana in Ethiopia,. The Aswan High Dam and the comprehensive storage scheme might be made complementary. The high dame could be somewhat smaller than now planned and other works could be undertaken in the Sudan. Without the Aswan High Dam, or a similar project, the growth of the Egyptian economy is like- ly to lag far behind the probable SECRET Approved For Release 2005/02/14: CIA-RDP79-00927A001100070001-4 PART III PATTERNS AND PERSPECTIVES Page 10 of 13 Approved For Ref 2005/0 F4C iFDP79-00927A0( 100p70001-4 CURRENT INTELLIGENCE WEEKLY SUMMARY 31 January 1957 increase in population. This would mean a steady decline in the standard of living, with serious implications for the future social and political evolution of Egypt. Even though Aswan or similar works might not make possible any signifi- cant per capita rise in the living standard, they would at least prevent a disastrous dete- ioration in this standard. 25X1 WEST GERMAN REARMAMENT The West German rearma- ment effort, first planned in 1950 and formally initiated in January 1956 on the basis of a three- to four-year build-up of 12 divisions and 500,000 men, has shifted its emphasis away from the original goals to what Defense Minister Strauss calls a t'quality-before..quantity approach. Instead of gradually building up the larger force, the Germans have recently in- dicated that they wish to con- centrate on more rapid creation of seven combat-ready divisions with the most modern equipment. Strauss Takes Over Chancellor Adenauer's cabinet reshuffle on 16 Octo- ber 1956 brought in as defense minister the aggressive and capable Franz Josef Strauss, a clever politician who would like to succeed Adenauer, and who, as atomic minister, had been one of the noisiest and most effective critics of what he and much of the public con- sidered to be a Utopian armed forces build-up program. Although much of the Ger- man planning for the new look in the German army was ap- parently under way when Strauss supplanted his much-criticized predecessor and political ad- versary, Theodor Blank, the publicity-conscious Strauss, in his explanations to the public and to Bonn's NATO allies, has taken'.the.credit for the shift. Adenauer's Christian Democratic Union (CDU), which-'.-is already worried about the unpopularity of rearmament in many circles and the effect on CDU pros- pects in the September Bundes- tag elections, hopes to be able to benefit from the changes A West German view of Defense Minister Strauss and rearmament. From Der Spiegel. in approach as well as in personalities. In a further bid for pub- lic support, the CDU agreed last October to a reduction from 18 to 12 months in the SECRET Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART III PATTERNS AND PERSPECTIVES Page 11 of 13 Approved For ReJAW 2005/0 hlClDP79-00927A0 070001-4 31 January 1957 length of service for draftees, and Strauss apparently intends to draft relatively few men before the September election. Subsequent events in Hungary and the Middle East have given impetus to the government's plans for rapidly building up a few eombat-ready units, and may also serve to weaken the public distaste for the rearma- ment effort. D WEST GERMAN ARMED FORCES (IN THOUSANDS) ORIGINAL NATO GOAL GERMAN FULFILLMENT OR PRESENT PLAN 2 70 135 -96 75 one mountain division. Under the original plan, these divisions would have been split in two and used as cadres for the formation of new units. Now, they will be left intact, and are expected to be at from 60 to 80 percent of strength by the end of 1957, and combat- ready during 1958. UNAN- NOUNCED been unwilling to commit themselves formally to their NATO allies to any plans beyond 1957, re- liable sources report that the cabinet has approved a firm in- terim forces ceiling of only 343,000 men for 31 March 1961. At that time, the army would have 200,000 men in 12 divisions, all at about 70 percent of strength. The air force would have 100,- 000 and the navy 20,- 000 men, with the re- maining personnel in administrative and support units. The total cost of this build-up would be $12.85 billion and would require the Ger- mans to increase their defense budget during 1958-61 by about $1.3 billion a year above Present Goals Strauss has so far an- nounced hips: goals only through 1957. Late in 1956, he scaled down the NATO goal of 96,000 men in uniform for that year to 75,000, a figure the Germans met., In place of 270,000 for the end of 1957, Bonn now will aim for 135, 000, of which 85,500 will be in the army. The Defense Ministry is building up three motorized in- fantry divisions, two armored divisions, one air-borne., and 70122 2 the present annual level of $2.1 billion. Equipment Strauss has always stressed Germany's need for atomic weap- ons,, and is likely to increase his demands in this field. He is already laying the ground- work for combat under conditio;as of nuclear warfare, by setting 14p infantry and armored divisions of only V2-13,000 men each. During the training stages of the build-up, Bonn will "make do" with the equipment it has SECRET 500 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 PART III PATTERNS AND PERSPECTIVES Page 12 of 13 Approved For R2005SREg'RDP79-00927AOUp070001-4 :CURRENT `INTELLIGENCE WEEKLY SUMMARY 31 January 1957 received from its allies, Never- theless, there are increasing indications that in the future the Germans will want more and more to develop their own tanks and aircraft. Industry is ap parently.less reluctant to par- ticipate in rearmament than formerly. Air and Navy Strauss reportedly wishes to proceed with the build-up of effective ground forces, and later to shift the emphasis to air power. Until now, less stress has been placed on the air force, which is scheduled to have.tw.o transport squadrons and two or three fighter squad- rons and 27,000 men by the end of 1957. With 12,000 men now, it is concentrating mainly on training flying ' personnel. The new navy was original- ly to number only 17,000 men, primarily with patrol functions: By April it is scheduled to have about 10,000 men, formed in three motor-torpedo squadrons, four minesweeper.:squadrgns,-and one..landiag craft squadron. It. is now concentrating on training personnel, with its future plans, mission and size much in ques- tion, but with its top officers pressing for a greater role for the naval forces. New Plans Strauss has recently be- gun to emphasize a broad de- fense program based on three "pillars": 1) the.mobile units of the three armed services, under NATO, 2) national home defense units, both land and air, which would be-.-under German control and work closely with NATO, and 3) civilian defense units, under Interior Ministry control, for catastrophe situations. The whole concept of ad- ditional home defense forces, planned for some time, will stress the formation of Swiss- type militia reserve units, calling largely on older per- sonnel for engineer, communica- tions,and guarding service near their homes. While Strauss re- cently said that such units would at first involve only 30,- 000 men, the plan would permit a rapid expansion of the German forces as well as complete Ger- man control over these units. Leadership Strauss apparently wants to make important shifts in leadership of the new forces. It appears that he will replace Lt'. Gen. Adolf Heusinger, who holds the top post of chair- man of the.Supreme Military Councilbut whose war experience was mainly of a staff nature, with former Lt. Gen. Walter Wenck, who-was commander of-the German Twelfth Army at.the end of the' war. This shift is tentatively scheduled for March, after a proposed reorganization of the -ministry which would give the top general new powers. Strauss is reportedly: trying. to find a suitable "prestige job" for Heusinger,in NATO. Heusinger's deputy, Lt-. Gen. Speidel, is al- ready slated for. a NATO post this spring. Thus the present period of the German forces build-up ,appears to be a transitional one, an attempt to create the basic defense and-security forces structure as fast as political expediency will al- low. This phase seems likely to last until after the Bundes- tag., elections in September. Then if present policies are confirmed at the polls, Bonn can proceed with the formation 4. of an effective fighting ? machine, the main ingredient now lacking in West Germany's emergence as a major power. 1 -1 SECRET Approved For Release 2005/02/14: CIA-RDP79-00927`A001100070001-4 PART III PATTERNS AND PERSPECTIVES Page 13 of 13 25X1 25X1 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4 Approved For Release 2005/02/14: CIA-RDP79-00927AO01100070001-4

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