Created: 5/25/1961

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Supreme Council for National Reconstruction, the military group which has control of the government ln South Korea, is continuing to consolidate its position and to neutralizesources of opposition. However, there are indications that coup strongman Ha j. Gen. Pak Cbong-hui Is becomingdispleased with Army Chief of Staff Lt. Gen. Chang To-yong, who is believed toelatively early return to civilian government. Should Chang be forced out of tbe ruling junta, the regime would probably be strongly Influenced by Junior officers who desire an abrupt break with tbe past and anperiod of military rule.

The retention of President Yun Po-sun as chief of state has given the insurgenta semblance of Government ministries have been reopenedew all-military cabinet appointed. However, administrative and technical talent is scarce, and most of those who qualify for important positions are tainted by association wltb either the Chang Hyon or Rhee

The shortage of capable senior personnel is particularly apparent in the economic field. The regime has taken stopgap measures toerious dislocation of tbe economy, but there are indications ofstagnation. Bank of Koreaeport that mounting administrative confusion iseconomic activity.

The new government isto improve living Unless it can fulfill its economic promises, itwill experience the same public antipathy as the Chang administration.

Apprehension Is developing among educated civilians over

the repressive tactics of the military rulers. Political parties and organizations have been ordered abolished, and most members of the formerhave been placed under bouse arrest or imprisoned. ationwide roundup of alland suspected Communists Is under way. According to local press reports,ersons, many of them probably hoodlums and criminals, have been seized. Strict press and radiohas been imposed, and many persons are reportedly listening to Communist broadcasts from Pyongyang for news of events ln South Korea.

Asian Communists, whose cautious initial reaction to the coupack ofinformation, have now taken tbe measure of Seoul's newand hostile propaganda has mounted steadily during the past week. Pelping's People's Daily charged ln an editorial ofay that tbe US stage-managed tbe coup to maintain itsrule."

Speakingallyn Pyongyang onay, North Korean Vice Premier Kim XI called on the South Korean population to smash tbe coup; Pyongyang earlier bad urged all South Korean military personnel to resist tbe coup leaders. The North Koreans have used thesituation to renew their call for reunification, claiming that only by Joining with the "self-sufficient" economy of the North can South Korea solve its economic problems.

While there is no evidence of North Korean militaryto take advantage of the unsettled situation, dissension within the coup group could make South Korea increasingly susceptible to Communist propa-;anda and subversion.




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