Document Number (FOIA) /ESDN (CREST):
CIA-RDP79R00890A001100080004-3
Body:
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NSC BRIEFING 17 August 1959
I. While Peiping not much in news recently, ma,~or Chicom policy
decisions obviously in the making.. Top leaders have. been out
of view for seven weeks, believed meeting outside Peiping.
II. Domestic policy review--including reassessment of "giant leap
forward" and commune program--probably has top puce on agenda.
A. From recent Chinese press editorials, it to?ks like regime
has decided to reaffirm Mao Tse-tong's hurry-up economic
policies.
1. While Feiping is clearly concerned about adverse
effects of this year's poor weather on crops, it
evidently is counting on a new frenzy of effort
to regain some of.7.ost momentum of 1959 "leap."
2. Chicoms particularly want show of achievement in sup-
port of regime's 10th anniversary on 7 October. Signs
point to big decennial celebration along lines of
Soviet 40th anniversary in 1957, with gathering of
top leaders from all bloc countries.
B. Communes after .year of operation are neither complete
failure nor unqualified success. Leadership is committed
to their continuation but is looking for ways to make
them work better.
1. Peasants clearly dismayed by radical changes in wap of
life necessitated by communal living and disappointed
by failure to realize material gains for themselves.
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C. Tibet also. likely topic of high-level meeting.
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III. Recall of a number of Chinese ambassadors (to Cambodia, India,
Surma, Indonesia, UAR, Pakis-tan, North Vietnam,,17SSR) suggests
foreign policy also under review.
A. Taiwan Strait policy would almost certainly come up for
discussion.
1. .Present tone and low volume of propaganda is not sug-
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gestive of new flare-up ain Strait in near future.
Lams situation reached crisis proportions while. Chinese.
leaders .were-meeting, and Chinese propaganda insists question
is vital to Peiping's interests.
1. Foreign Ministry statement 12 August warned Laotian
developments were "menace to security of China.".
C., Sino-Soviet alliance remains firm, but identity of viewpoints
sometimes lacking.
1. Khrushchev again criticized communes in 18 July speech
at Poznan, Poland, Peiping .has made ideological con-
cession to Soviets--saying communes designed to meet
Chinese conditions, not intended for export--and certain
to resent this public criticism.
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2. Chicom statements support Eisenhower-Khrushchev visits,
but this may be pro-forma.
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a ~ I I Chicoms
not enthusiastic about Eisenhower-Khrushchev visits.
3, We think I~hrushchev will want to confer with ciao to
effect harmony of views. It he doesn't see Mao before
his first meeting with Eisenhower, he will almost certainly
do so before the second--probably at the time of Peiping's
decennial anniversary celebration on 1 October.
Dr Loss of Chicom prestige in South Asia is another likely
aub,~ect of discussion,
1, Nehru has complained in Indian Parliament about Chinese
harassment of Indian nationals in Tibet.
a, He declared India's frontier would be defended
against any Chinese encroachment. `
2, Chinese propaganda attacks Ayub government in Pakistan
for its pro-US orientation, Chicoms issued strong protest
note last month accusing Pakistan (which recognizes
Peiping) of "following the US two China's scheme."
E. Chinese may slap feel they have been losing ground in
Southeast Asia,
1. Peiping is drying to ward off deterioration of relations :.
with Indonesia, where anti-Chinese legislations was
recently passed. (Restrictions on activities of overseas
Chinese in retail trade,)
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a. Chicoms plan to send a good-will delegation to
Indonesia soon.
b. Peiping 'is about to enter into. negotiations far
new military aid tv Indonesia.
2, Burmese becoming increasingly annoyed with blustering
Chinese tactics to regain custody of Chieom embassy
defector in Rangoon.
3. Rangoon also irritated by Peiping~s continual stalling
on settlement of bc-rder issue.
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Approved For Release 2003/08/19 :CIA-RDP79R00890A001100080004-3
Approved For Release 2003/08/19 :CIA-RDP79R00890A001100080004-3