CURRENT INTELLIGENCE BULLETIN - SOVIET UNION

Created: 8/9/1953

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SOVIET UNION 1. Comment on Malenkov's speech to the Supreme Soviet:

Malenkov's speech to the last session ofJne Supreme Soviet reaffirmed the policies effected by the new regime since Stalin's death and Indicated his pre-eminence among the top leaders. Emphasizing the necessity for improving the welfare of the Soviet people, Malenkov assured them and the world that aof international tension through negotiation was both possible and desirable.

Malenkov described the material welfare of the population as "the main task" of the current Flve-Year Plan. He stated that production of consumer goods will be increased "at the expense of other sectors" of the economy.

Heavy industry will continue as the prime objective of economic development. Intelligence estimates based on production trends indicate that plan goals for three basic industries, coal, oil and electric power, will not be met

The reappointment of Presidium member M. Z. Saburov as head of economic planning suggests that he isthe most experienced and capable administrator for carrying out the considerably modified objectives of the Flve-Year Plan and for the further reorganization of economic ministries which Malenkov indicated was under consideration. The fact that the Supreme Soviet was not asked to ratify the plan is further Indication that It will be kept under constant review.

In outlining the government's drive for greater consumer goods production, Malenkov placed particular emphasis on Increases from the agricultural sector. These are to be accomplished by new conciliatory measures to the collective farmers that contrast sharply with Stalin's plans for the Soviet peasantry. To increase their incentive, the state will pay the farmers more for their produce and will demand smaller obligatory deliveries from thetr private plots.

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and US military'-sponsored exporttradedllu^ntrlel to

negotiations with the Westerners' TO'Ue 0f

provocation- may have beenlfrealmenl of lhe "centdefend theEasTSrmanthat USSR

against interfereddarnin*

the hydrogen bomb

and the Soviet people0 aSSert lo the world

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FAR EAST

apanese Communist front activity may presage Soviet overtureof war

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Communist frontcently have begun whipping up the issue of returning Soviet-held Japaneseanner whlchf

mayoviet move on this question.

recent Communist gestures are designed to test

policy and American reactions to possible closer Japanese-Soviet relations*

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Japanese officials thus farhat Japan would insistormal treaty as

or speciflc trade or prisoner of war negotiations.

s:

Responsible Japanese officials apparently believeormal Soviet request for negotiations may soon be forthcoming.

4. Comment on the North Korean purge:

Yrs

The identities of the twelve North Korean

leaders convicted for treasonugust indicate that the North Korean purges are aimed primarily at an important part of the domestic faction of North Korean Communist leadership. This group, the South Korean Labor Party, has in the past been chiefly responsible for guerrilla activities against the Rhee government

The convictions mayhake-up of the agencies responsible for penetrating South Korea in view of their previous lack of success, and may presage increased political warfare and guerrilla activities against South Korea,,

The convictions, however, actually weaken the North Korean position since the leaders affected are those on whom Pyongyang would have to depend primarily for communizing South Korea. Therefore the convictions may also mean that the North Koreans have abandoned hope that they can secure control over the entire peninsula tn the foreseeable future, by elections or other means.

It is also possible that the domestic faction held nationalist views on unification unacceptable to over-allobjectives or was believed to have been penetrated.

There is no information connecting the convictions with the Beria purge or with possible differencesthe Soviet and Chinese-oriented factions of North Korean leaders.

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SOUTHEAST ASIA

5. French suspicious of Anglo-American aims in Indochina:

rrencn omciais own mereFarts believeointtoward Indochina is developing athelps those French elements who

argue that since France is being double-crossed by its allies, Lt Is free to negotiate with the Viet Minh or to pull out.

the Frenchritish'national as an adviser to Cambodia isproof of Britain's attempts to extend Its influence InSouth Vietnamuffer for Malaya.

and possibly British Influence was behind the Lamooaian ranges recent actions.

rsrs (S)

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Original document.

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