DIRECTORATE OF INTELLIGENCE
The WEEKLY SUMMARY, issued every Friday morning by the Office of Current Intelligence, reports and analyses significant developments of the week through noon on Thursday. Itincludes material coordinated with or prepared by the Offke of Economic Research, the Office of Strategic Research, and the Directorate of Science and Technology. Topics requir-infi more comprehensive treatment and therefore published sep-arately as Special Reports are listed in the contents pages.
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Peking Talks on Two Fronts
in the midst ofnegotiations with the USSR, the Chinese communists last week began to set the stage for talks with Peking's other majortho US. This unprecedented development does not appear to signal any loss of nerve on the part of the Chinese, who in fact havo stepped up the pace in their war of words with Moscow. But the leadorship in Pekingsees an interrelationthe two sets of discussions and is clearly prepared to play off one opponent against the other should the opportunity arise.
The negotiations with the Soviets unquestionably have top billing in Peking. The second round of discussions now under way following the return of chief Soviet negotiator Kuznetsov to China wore resumed, however,rim atmosphere. Neither side is putting forward the optimistic private comments that accompanied the opening phases of the first round of the talks. The Chinese, moreover, last weekighly nogative view of theof the first roundong Kong Communist This article laid full responsibility on Moscow for the lack of progress thus far in the talks, charging the Soviets with failure to restrain its forces along tho Chinese border andtho established Chi-noso positionutualof forces from the border must precede negotiations
on other substantive border Tho Chlnose also madean official protest to Moscow, excoriating Soviet references to the "country" of Taiwan.
The USSR has responded in kind, denouncing the warcampaign still under way in China and accusing Peking of whippingwar psychosis" and "rabid anti-Sovietism." These polemics ware somowhat lessthan those of tho Chinese, but theyignificant departure from Moscow'sstanddown of last Both sides in fact appear to havo accepted for theublic war of nerves as an to tho privatein Poking. Moscowcamo to believe that last year's public exchanges wereagainst its intorosts, and it is possible that Soviet patience may wear thin at some point if the polemics continue.
The Chinese probably view the forthcoming talks with the US in Warsaw primarily as another aspect of the war of nerves with the Soviets, although Peking is also interested in sounding out Washingtonumber of impor-
order to give the Sovietsfood for thought.
At the same tine, Pekinglearly interested in assessing at closer range future usinfficials duril
tainiy aoes not actually expect nuch movement on this issue, and the fact that the Chinese will allow their charge in Warsaw to represent then at the talks suggests that they do not believe there will be much progress on important matters at this time.
In short, the Chinese do notajor breakthrough of any kind, but they see prospects of harassing Moscow and improvingunderstanding of US moves in Asia as sufficently advantageous to reopen the Warsaw contact. Their views of tho talks with the Soviets is probably similar. At thisthey apparently do not expect much real progress toward theof the border problem, but they probably believe that it is better to keep talking than totho situation to deteriorate sharply, therebyilitary confrontation with the Sovietscale larger than that of last spring and summer.
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