Created: 12/6/1963

OCR scan of the original document, errors are possible



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CONTESTS (Information as0 EST,

tip; communist world status op communist wheat deals

During the period of stalemated Soviet negotiationsillion tons of us wheat, other Communist countries have moved ahead with new purchases.


Circumstances Surrounding his recent trip to Moscow and the low-key propaganda treatment It received suggest that he is no longer in good standing with the Soviet leadership.


Premier Chou Bn-lat aad Foreign Minister Chen VI will begin an unprecedented tour of Africa Into drum up support for Peiplng's hard-line programs andecond Bandung conference.



The North Vietnamese are again pushing the ideaneutralized" South Vietnam, apparently in the hope of generating free world pressure fdr asettlement of the Vietnamese war.


On Laos and Turkey




Presided' Makarlos has formally proposedchanges which would diminish the rights of the Turkish minority.


Baathist influence is being reduced in the Iraqi regime, and the Baathist premier of Syria seems on the verge of breaking with party extremists.



Cairo appears to be adopting austerity measures in order to obtain continued Western aid for its development projects.


Prominent leftists are on the unopposed slate forecember legislative elections, and. they probably will strongly Influence the government that Is formed.


The Arab-dominated government of this Britishwhich becomes independent onecember bas done little to oppose the growth of contacts with the Communist bloc, but its leaders now show signsecreasing complacency in this regard.



A center-leftthe Socialists into thebeen forwed by ChristianAldo Moro and is expected toote of confidence within the next few days.



On the Coal-Steel Community




Tensions have been heightened by recent moves by the military-installed provisional regime against pro-CiStroltes and by reaction to the regime's planseturn to constitutional government,


nd Bolivia



The- Comrsnnist World


During the period ofSoviet negotiationsillion tons of US wheat, other Communist countries have moved ahead with new purchases. The East European countries are concluding three- to five-year purchase agreements with Canada, and Communist China has made its first purchasosrom Western countries.

In addition to the 8tons of wheat the USSR has under contract from Canada and Australia, Moscow has boughtons of wheat flour in Western Europe, isons of wheat On loan from Rumania, and is purchasing smaller quantities of grain other than wheat.

Tlie European satellites have contracted for the delivery during4 ofillion tons of free world wheat and smaller quantities of other grain. These relatively large purchases are necessary toshortfalls in imports of Soviet grain. The USSR hadtons of wheat annually1 Hungary has asked for additional amounts of US wheat, and the Czechs seek financing ofons of American wheat. Bulgaria has approached US officialsprospective grainand Poland hasons of American wheat under The satellites also are negotiating with West European brokers for smaller quantities of grain.

Agreements with Canadaotal ofillion tons of wheat coveringave been signed by Poland, Czechoslovakia, and Bulgaria. Ottawa also expects to conclude similar agreements with Hungary and East Germany. Satellite long-tern interest in Western grain reflects of soviet agricultural problems and the inability of the satellites to meet their growing needs for grain from domestic production.

Communist China's first big wheat purchase4 delivery wasillion tons from Peiping also is buying atons fromand apparently as much froa Mexico. It also will soonontract for Canadian wheat under its agreementthe iaport of up to 5tons fromo Smaller'purchases may be made elsewhere, as peipingwill need more thanillion tons of grain itthis year to maintain per capita consumption at the same level.

Most of the Soviet grain imports are being paid for in cash. The large Canadian deal contains credit terms, buthas boggled at currentrates. The satellites, with fewer cash resources, are seeking to defer payment as long as possible. Peiping has bought on credit where available, but is prepaying its grain debts.




Port/ FIrtt Seer.for. Premier




* 62


Chairmen,Port/ Bureau

PartyTitular hood of

RSFSR Premier

Firtl Deputy Chairman, RSFSR Party Bureau

Party Second Secretory


Party Secretary

First Deputy Premier

Party Secretory


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proboble Areai of Reiponilbllify (Nol Necessarily Complete)

Party and government head


ffoin of theRepublic

RSFSR rjorry-induslriol affolrt


Domestic economic affoin

CPSU relation with foreign Common) if parties

Senior adviser to Khrushchev, particularly in fields of 'ceeign affoin and foreign trade

CPSU relations with foreign Communist

Government agricultural affair*

CPSU relations with foreign

Communist part lot Coordination of world Commvnlil


Heads trial board caneemod with Infractions of porty discipline

material on reverse of page


OJSflTI fi"T*

The Communist World


surrounding Czechoslovak party boss Novotny's recent trip to Moscow and the low-key propaganda treatment it received suggest that he is no longer in good standing with the Soviet Leadership. Whatever the reason for his trip, Novotny did not receive the publicfrom Khrushchev usuaLlyavored Leader of Novotny's rank. Novotnyneeds open Sovietat this time as he struggles to maintain control overelements in theparty.

The officialfirstto Moscow sinceof the newLenart, and severaleconomic officials.

The official business of the delegation apparently vas primarily economic, as several economic agreements werenone of which was important enough to warrant Novotnv's presence. However, thealsoyearof the Soviet-Czechoslovak friendship and Mutual Assistance Pact, and this event probably was arranged to provide anfor Novotny's presence. The pact would technically have expired onecember, but its self-renewing clause would have extended it another five years automatically and precluded any real need to sign new documents.

Soviet reporting on No-

votny's quick

considerably less thaniven the Czech8 visit and still less than that given the visit by Hungary's Kadar in July. ointissued onovember contained none of the standard praise for Czechoslovakia's "progress" or the party'sabilities.

him public backing is likely to be interpreted by thein Prague as tacit support for its efforts to unseat the Czechoslovak Leader, f

China's Premier Chou Bn-lal and Foreign Minister Chen yi will begin an unprecedented tour of Africa in mid-December designed to drum up support for Peiping's hard-line programs.and toecond Bandung conference. No other major world power has ever sent two suchrand tour of the.

For tbe Chinese, too far away for effective military meddling and unable toarge-scaleassistance program forarnstorming expedition by Peiping's suavest and mostleaders would seem the only way of rallying Afro-Asian support. Chou and Chen can be expected to argue persuasivelyecond Bandung Conference and to attempt to gain supportilitantstruggle againstand "US imperialism."

attend tho indopondoncein Kenya onecember and possibly thoue in Zanzibar two days earlier. Like other former British colonies ln East Africa, both these countries are expected to recognize Peiping, and theforeign minister's presence would probably expedite such

Chou Xa-lal will ostensibly be returning state vlsltm byAfrican leaders to Peiping in recent years,eneral aura of high-powered publicwill surround much of his activity in this area wherehas been competing with the Soviet Union for

Dec 63

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Page 7


North Vietnamese are again pushing the ideaneutralized" South Vietnam, apparently in the hope offree world pressureegotiated settlement of the Vietnamese war. Hanoi probably estimates that such pressure would eventually force the US to reconsider its policy of full mililary support for tho antl-Communlat forces in South The last such Northcampaign occurred early2 when Hanoi sought to broaden international sentimentettlement of thewar along Lines then being proposed for Laos.

There Is no indication that Hanoi is as yet willing to make any meaningfulin Its oft-proposed termsettlement. It continues to maintain, for example, that alL US forces must be withdrawn from South Vietnam beforeeaao-fire. It hag also declaredcoalition"Its view, one open to Communist domlnatlon-^ust be formed prior to anyarrangement.

Tho Latest North Vietnamese neutrality proposals have been directed primarily at Laoa. Cam-bodla, and '

Hanoi also voiced swiftof Prlnco Sihanouk'sproposal for new discussions aimed at guaranteeing Cambodia's neutrality by the signatories of the Geneva Accords. Thoprobably hope to useonclaveounding board for discussing Southnoutrsllzatlon--a Sihanouk has frequently.

For the first time Inear, moreover, tbe Hanoi-controlled National Front for tbe Liberation of South Vietnam has publicly reiterated Its supporthree-country plan similar to thatby Sihanouk. Tho Front's proposal promptly received official North Vietnamese.

Hanoi has allegedlyimportancehangepolicy toward Southconnection with itsto "negotiate" athe war.

Right-wing nndforces are continuing to oxert pressure on Patnet Lao units in central and northern Laos. Neutralist forces which recently captured Vang Vieng have advancediles farther north and now control strategic Routerom the capital to this point. In central Laos rightist troops have captured Kamathet Lao strong point at tho western end of Route 8. These forces, reinforced by an airbornefrom Savannakhet, havetoward Lakepot on tho Communists' supply route to the Nhommarath region. Right-wing regular and guerrilla forces on the Plalne des Jarres areto subject nearby Xieng Khouang town to heavy artillery bombardment, but the Pathet Lao and dissident neutralist troops apparently are holding their positions.

Pathet Lao propaganda has strongly protested thesemoves. Onovember, General Singkapo, tbe Communist military commandor, charged that tho US and the rightists were attempting to sabotage currentathet Laoand warned that thewould be held "fullyfor thehe latest talks,ecember, between neutralist commander Kong Lo and Singkapo ended in an angry exchange of Nevertheless the Pathet Lao thus far have not attempted major military counteraction, and still seem Interested in arranging talks between Premier Souvanna and their leader Sou-phannouvong. In view ofreports of supply convoys moving into Laos from North Vietnam, however, the Communists clearly are at least retaining their capability for majorinitiativesime of their choosing.

ubstantialby the opposition Justice Party (JP) In last month'selections dealt the final blow to Turkish Prime Minister Inonu's coalition government. Both the minor coalition parties decided to withdraw, in thethat their association with Inonu had cut deeply into their popular support, andecember.

The JP, heir to the ousted Henderes regime and distrusted by Turkish military leaders, now appears likely to re-enter the government. This will Involve

some compromise between JPmany of whom prefer toto build their strength on the outside, and the military, who, despite their antl-JPare reluctant to take over the government.

There remains thehowever, that the JP will press its political advantage beyond acceptable limits and precipitate an armyIn anyeriod ofpolitical maneuvering lies ahead, which may bring in some less controversial figure than Inonu as head of the government.




three-year-old dispute between Greek and Turkish Cypriote over interpretation andof their republic'shasew phase which has sharply Increasedbetween the two communities.

Onovember Greek Cypriot President Makarios presentedCypriot Vice President Kuchukpageuggested changes ln the constitution, which would have theover-ail effect ofthe rights of the Turkish minority. Among the proposals were elimination of theand vice presidential veto powers, abolition of therequiring separateby Greek and Turkish Cypriote for enactment of certain laws, establishment of unifiedunification of theof justice, andof the provisions now callingatio between Greek and Turkish Cypriote ln the civil service to reflect) ratio between the two ethnic groups.

The reaction ln Ankara,will largely determine the final attitude of the Turkish Cypriot leadership. Turkish laadora hava ho or.opposed to any fundamental change ln the Cypriot The current political crisis in Ankara makes majoron Cyprus at this time highly unllkoly.

I Should th* Turkish

CypriotitjMl his

memorandum, or presentcounterproposals, he has

warned that ho will act if necessary, to void those provisions ho rogards as harmful..

Woll-tralnsd paramilitary organisations reportedly exist In both communities. Whileof tbese organisations have indicated tholr reluctance to Initiate hostilities, these well-armed irregular forces might be brought Into action, If discipline among tho Integrated police and gendarmerlo forces breaks down in tho face of isolated acts of

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Political alignments in both Syria and Iraq continue to shift rapidly as contending factions compete for power, and sudden upheavals are possible in both countries. Reactions in either country to events across the border are likely to complicate tbe picture

In Iraq, anti-Baathistand members of thehave begun to eliminate Baatbist influence in the Tbe minister ofa leader of thefaction of the Baath Party, has been eased out of office and exiled to Beirut withassociates. Baathist Vice President Bakr is also said to be leaving the country. Hardantrong Baathistheads the Defense Ministry, hasritish visa.

Pressuresove against Baathlets still holdingof power have beenamong "Arab nationalist army officers and government officials desiring closerwith Cairo. President Arif has apparently acquiesced in the action against the Baath, but his role in the move is not yet clear.

The anti-Baathist faction now appears to have the upper hand, but the fate of 4thCommander Nasrat, aBaathist, Is not certain. He reportedly has surrounded


Baghdad with troops Inhowdown. If he still retains his command, he may attempt to redress the present situation.

A decay of the Baathist position in Iraq is almostto undermine further the position of the party in Syria, where Premierilitaryof the Daath international command, appears on the verge of breaking with party He reportedly has halted tho activities of thearamilitaryis casting about for support from traditional Syrian political elements, as well aa from the military. Severalpoliticians have been freed from custody in the past few days.

While llafiz' actions are reported to have Infuriated doctrinaire Baathist MajorUaran, who is deputy Interior Ministerong-time party member, is said to have resigned and to have denounced Umran as well as Haflz as opportunists. Umran has not been seen for several days, and there are rumors that Haflz is attempting to remove him from his position. Baath' Party founders Aflaq and Bltar have asked for visas to go abroad, and the US Embassy believesoup isr


realities may be forcing Egypt to modify itspolicy of improving living standards while keeping prices and taxes at minimum levels.

Although actual changes have been slight, Egypt tan budget data suggest that more extensive innovations are planned in what iseluctant response to the severe strains affecting the Egyptian economy. Tbeof change appears also to conform at least In part tomade by Western lending institutions and,the shifts may be intended as stopgap measures, tho long-range requirements for foreign money could moke them longer lasting.

In recent years Egypt has greatly locroascd personal and kept personal taxes low while using subsidies to naintaln price ^stability. This policy has resulted In aforeign trade deficitallooning domestic debt.

Tbe budget for the current fiscal year suggests that Egypt is shifting its approach. for consumer subsidies have dropped by more thanercent, instead of increasing as in recent years. Budgeted tax yields, almost unchanged in the recent past, are programed to increaso almostercent; the Income and property tax categoryump of almostercent.

A sertoa of articlesemiofficial Egyptian newspaper has underscored the economic drain caused by heavy The reader waa exhorted to understand that imports must be cut and consumption ofproducts reduced so that more could be exported. Inovernment-sponsored conference adopted resolutions urging that development projects be flnancod through such media as social Insurance payments and price adjustments. Those press reports appear to presage even stricter Import controls, higher prices, and nnactmont of some form of social security tax to supplement government revenues.

Inasmuch as Egyptian foreign currency resorves are negligible, the government has been anxiously seeking Wostera loans to cover the trade gap. All Western leaders support recent advice from the International Monetary Fund which Includedthat Egypt raise taxes, reduce subsidies, and allow prices to rise. If development plans are to be Implemented, sizable injections of outside funds will be required for many years to come. Self-interest, therefore, appears to dictate continued to tho main lines of the IMF's strictures, but any sharply adverse political might still'-Av bark tn him nlil .ivr.


political situation In Congo (Brazzaville) remains confused and highly unstable as moderate Premier Massamba-Debat's ineffectual provisional government prepares forecember vote on its now draft constitution and unopposed national legislative slats. There is no clear indication of who will merge in charge of the postelection government, but it seems likely to be strongly influenced by theyouth and labor eloments which spearheaded the overthrow of conservative President You-lou last August.

An olectoral college is to convene onecember to fill theplanned to be the woolexecutive position. Mossamba has nottrong hold on tho provisional government, his suporlormay secure his election.

At least some of thelabor and youth leaders who chose to exert their influence on tho provisional government from behind the scenos now have evidently decided to claimpositions. The elate of candidates for themem-ber National Assembly Includes the names of several of the more prominent leftists,f

Much depends at this stage on the attitudo and behavior of

the military loaders, who otnee August have been the ultimate political arbiters in Braza-vllls. while most of tbemcontinue personally to favor Hassamba-Debat, tholr willingness to buck thehas become more doubtful. Whilo the military would prob-ablly act to thwart any coup attempt, they are unlikely totrong positiverole, and recent instances of Indiscipline among enlisted men cast considerable doubt on tho army's real effectiveness.

After the elections the leftists may induce tho new government tooreattitudo toward tho Soviet bloc. Tbls may lead to

the early extabllshment of bloc diplomatic missions in It Is unlikely, that the Congolese will turn abruptly away from the French, on whom they aredependent

Present Influence of tboleftists on UaBbanba-Debet Is reflected ln the ratheractivities of thegroup of extremist exiled from Loopoldvlllo who have since Octobor been using Brazzavilleass of operations againstAdoula. The exiles aro being provided sanctuary, protection, and ooao direct support byassociated with thegovernment. The exiles claim they have boon promised even freer rein after the electiondevelopment which wouldfrictions between theand Lcopoldville eovcrn-ments,f



British protectorate ofof the islands of Pcmba and Zanzibarattain independence onecember. At tho outset, the new nation faces increasing Communist activity, along with racialhakyand chronic political

Zanzibar traditionally has been governed by aremains the country'sis dominated by0 Arabs, whoonly one sixth of the total population. They run the agricultural economy, which is based on productionf the world's clovos and is headed for serious decline in view of dwindling foreign demand. Arabs also lead the Zanzibar Nationalist Partyhich controls the governmentoalitionmaller party, even though the African opposition Afro-Shirail Party polledercent of the vote in last July's elections.

The leadership ofparties isbut itunable or unwillingthe extensive growthcontacts andundertaken by thewings and laborleaders have visitedEurope and China forshort training courses.

tions, the sale of whichpart of ZMP's income.

International communism has shown far greater Interest In the islands than theirunimportance in Africa would seem to warrant. Both the Soviet bloc and Communist China have tried toide range of contactsund of goodwill, but the total impact has oeen scattered and superficial.

There also are hopeful signsecreasing complacency on tbe part of Zanzibarlleaders, especially the dominant figure, Ali Muhsin Barwanl, who is minister ofaffairs and trade. Barwanl has pushed bills through the National Assembly allowing the government to prohibit any publication and outlaw anydeemed prejudicial to the maintenance of public order.

bookshops are wen stocked with Communist publica-


four coalitionare tho Chriillan DetTOCfotit Portrha iociollt. Ponyhe pc,a Republican Pan, (PHI).

Mora (CO Cantor)


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ol fv Treonvy

ColWx> [CD Comer)

ol Interior

lavionl (CD Cantor)



GUI (CDj*,

of Public Wort.

Pioracelnl (PSI)


Ferrari-Aagradt (CO Uft Wlna)

of Troraport

JerraJIno (CO Center)

of Pod am) Telacomtnicariom

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Madid (CD CeMer)

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Bo (CD lefi Wins)


MontinJ (PSI)


Corona (PSI)

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Picclonl (CO Sight Wing) GfuUo fwtora. (CD Uft Wing)

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A center-leftthe Socialist Party into thebeen formed in Italy by Christian Democrat Aldo Moro afteronth ofnegotiations. It istoote ofwithin the next few days.

The major part of theprogram is concerned with economic reforms. Nevertheless, the short-range program appears to have been aimed partly atconservative business interests, which have been fearfulenter-left government would concede too much to tho "Marxist" viewpoints of the Socialists. The four parties making up theit is stipulated, "do not foresee nationalization measures."

Much emphasis is placed on the need to develop economic In the foreseeable future, however, this planning isnot to go beyond the methods followedapitalist society such as France, That is, it seems not to envisago subjectingbusiness firms to compulsion, but rather implementing theplan by means of government initiatives in such areas asInvestments, loans, subsidies, and tax exemptions.

To curb inflation, theagroement envisages such measuresemporary freeze on new public expenditures and anto hold wage increases roughly in line with productivity gains. The agreement carefully avoids, howover, any appearanco ofto "fair" wage demands, and it suggests that creditwill not be applied so strongly as to curb "productive" investments. It implies that upper-income groups will beto takereater share of the nation's tax burden, but there are no overtonesoak-the-rlch program. The agreement thus shows the hand both of those regarding inflationary pressures as the primary economic concern and those seeing them asto reforms of Italy'sstructure. Hence theis for considerable friction within the coalition when it tries to translate general principles into specific implementation.

Horo's announcementabinet list had been postponed several times, largely as aof differences over who would fill the economic ministries. Tho Socialists had been threatenedevolt by the important Lombard! faction unless the party was given one of the three major economic posts. This problem was resolved by allotmg the Budget Ministryonbardlocial Democrat was given the Finance post, and Treasury wenthristian Democrat. Continuation of Glullo Andreotti in the Defense Ministryertain vestedin the government to tbe right wing of the ChristianParty, which has generally opposed the party's center-loft policy. Social Democrat Giuseppe Saragat, who became foreignis generally considered one of Italy's most pro-OS political leaders. I

The Council oftbeormalto raise steel tariffs atecemberut left the way open for such anonth hence. Aof the sixFranco and Meatommunity-wideto the Italian level, which is tbe highest in the CSC; but tho required unanimity was lacking because of strong Dutch opposition!"

I sa;;

authorized to consultwith tho US, the UK, Japan, and other countries which would


be affectedater decision to raise tariffs.

In another moveenerally restrlctionlst outlook, the ministers approved, subject toer ton duty on pig iron imports, replacing the present ad valorem rates which are lower. By approvingquotas on steel and pig iron, they also agreed to continue to restrict imports of these Jtewm from the bloc.!-





tensions iu the Dominican Republic have boon heightened by recent moves on the part of the military-installedregime against pro-Castro-itos and by reaction to the regime's planseturn to constitutional government.

ecember, the government outlawed theh of June Political Groupntil that time the only legal extreme leftist party ln the country. This action was taken after police, searching for arms caches in tho mountains noar the northern coast, reportedly encountered two bands of guerrillas. Accordingecember communique, the roglme claims to have captured several of tbe robele together with arms, ammunition, and Communist The two bands, totaling abouten, are said to be led by tho prosident of tho APCJ and one of his lieutenants.

Meanwhile, the regime'splans, which entail four elections for lesser offices-beginning In Septemberprior to presidential balloting lnave aroused little enthusiasm outside government The two moderate loftlst parties which won two thirds of tbe vote ln2 have rojoctod tbo formula, and almost all loading


newspapers have expressed doubts about the plan.

Most prominentthat popularthe only way to endpolitical impasse andUS recognition. some fool lhat theparties backingwill use theirio an effort tothemselves in power,doubt that thewill be allowed towithout official


serious reservations about the wisdom of holding fivo elections within ten monthsountry with practically no experience in democracy.

The current disarray among pro- and antlgovernment forces and growing right wing Influence In the government and armed forces arc stimulating fears tbat extreme rightists may eventually gain control of the country. One would-be strong man, Luis Amiama Tio, recently resigned his army commission toew party and is said to be receiving financial support for abidealthy former supporter of e* Dictator Trujillo.

two-week-longcrisis was resolvod in tho last week of November when Minister-President Johan Pengelow coalition of three right-of-centor parties. This coalition, like its prodecessor, includes representatives of the three principal ethnic groups in this Dutch dependency's racially diverseNegro Creoles, the East Indians, and the Javanese. Although tho dispute (over amining contractSwhich touched off the crisiH

also been settled, Surinam is probably ineriod ofinstability. Racial tensions between the predominant Creoles and the Asians may have been exacerbated by thothat preceded the formation of the cabinet. Economicare also in prospect because proposed outlays for theambitious development"'ff-ttrinnurcga.

Western Hemisphere


11yia: The actlvltlosro-Castro group in Bolivia called the Committee of Antl-Imporlallst Strugglehich apparently models itself on the Venezuelan terroristseem to be passing from tho organizational phaau to Ino operaiional.

The CLA is believed to have been established in late

Original document.

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