Created: 10/1/1959

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current intelligence weekly review


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This document contains classified Information affecting the national security of the United States within the meaninge espionage laws, US Code.. The law prohibits Its transmission or the revelation of its contents In any manner lo anperson, as well as its use In any manner prejudicial to ths safety or interest of the United States or lor the benefit of any foreign government to theof the United States.





At the celebration in Peiping of the tenth anniversary of tholr regime, China's Isadora are placing major enpba-sla on "peaceful construction" while reaffirming their long-rango goal to "liberate" Taiwan. Soviet Prenlsr Khrushchev at the celebrations attempted to dissociate the USSR from Peiping's harder foreign policy line and to encoursge Chlneae moderation. Continuing differences between Moscow and Peiping are indicated by tha omission by Khrushchev and Sualov Df any mention of tha communes. Moving towsrd the Soviet line. Premier Cbou En-lalthe Elsenhower-Khrushchev communique and stated tbat China and tbe bloc will "surpass" capitalism In "peaceful competition." Anniversary developments support other indications tbst tbe recent Defense Ministry changes reflect policy differences which Peiping hopes to resolve in most cases without resort to harsh methods.




tho celebrationsway to Peiping of the regime's tenth anniversary, tbe Chinese Communist leaders have placed major emphasis oo "peaceful construction" and theuccesses of tbe regime In the economic field. Compsrlsons between tbe present economic situation with the "unhappy" situation tun yonrs ago are clearly Intended to cover up the recent embarrassing retreat from oversmbltlous economic targets, wblle dramatizing the considerable achievements of the ten-year period.

Premier Chou En-lai told an anniversary eve banquet that China has "paved the wayreat leap forward,"tbat the Chinese leaders will continue to demand hard work and austerity from the people. Chou referred to the communes briefly as "new-type organizations beneficial to the development ofut avoided claims msde bytheorists that they con-tsln the "young buds of Commu-Dlsm."

Chou'a speech wasdirected toward China's most Important guest, Soviet Premier Khrushchev, andpassages reflecting the Soviet foreign policy line. Chou "welcomed" the Elsanhower-Khrusbcbev communique,Khrushchevpeacend asserted that China, along with the bloc, willcapitalism la peaceful com: pet It Ion."

In hla speech whichChou's, Khrushchevon foreign policy and the line of peaceful His remarksust do everything possible to preclude war" and tbat "we should not attempt to test the stability of tbe capitalist system by force" vary markedly In tone from recent Chinese pronouncements. Khrushchevanxious to convey the impression to the West that he intends to maintain theof detente and sought to dissociate the USSR fromharder foreign policy line.

Khrushchev may seek to the Chinese leaders in private talks of the need to moderate their propaganda. The Chinese will probably telltbat they must continue to highlight American against China until therebasic" changa In American policy toward the Nationalist position on th* offshore Islands and Tsiwan. They will probably point out that th* pledge to "liberate" Taiwanseful domestic slogan to push the populace toward greater efforts.

Khrushchev himself seemed appreciative of the propaganda importance to Peiping of the "liberate Taiwan" slogan, and In hiseptember remarks expressing sentiments against wars In general, b* excepted "liberating" wars. The pledge to "liberate" Taiwan made by Liu Shao-chl snd DefenseLln Plao durlog thewasong-term context and did ootense of urgency. The Chinese Communists announced they would

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in order to enable "compatriots" to celebrate tbe anniversary


Xhrushchev appearedto endorse Communist Chl-na'a economic policies,he and Soviet presidium memberspokehe usualof Soviet support and friendship. Khrushchevcomment onhlevemeats. asserting It la "not for me" but for "you, my friends, to apeak of your He avoided anyto the commune program and to the "leaput referred to Soviet experience as an "object lesson Inconstruction." LikeKhrushchev apparently was suggesting to the Chinese that they would profit by adhering more closely to the USSR's methods in industrial andtechnology.

The continuing Sovietto Influence the Chinese to change the term "commune" back to cooperativeeorgian Republic newspaper oneptember, which stated tbe "cooperatives formed9 were called the people's commune* by ourcomrades." For Moscow, the term apparentlyighly advanced stage of social Implication the Soviet leaders hope tofrom Chinese Ideological claims.

Mao and Khrushchev will probablyointto remind the West that Moscow is an ally of Chinaand to reassure Asianthat the Chinese regime has "peaceful" intentions. It would appear to be In Peiping's Interest to adopt more fully tho Soviet line on "peacefulove which nay well be reflected In any Joint communique.

The USSR's delegationigh-level, businesslike group and Includes the deputyof the State Committee for Foreign Economic Relations. The occasion might be marked by tbe announcement of someof or small addition to Soviet aid In thaof China. The delegations from the three Asian satellites, which are headed by theirparty chiefs, alsothe defense ministers from North Korea and North Vietnam, suggesting discussions sill be hold on Far East military

The absence of alaost all the top Eastern Europeanprobably Indicates that ao key matters specifically their countries will b* dlsouased In Peiping. Inthe USSR probably would not welcome the symbolic signlf-lessee at this time of aof all bloc leaders in the Chinese capital. Protocolfor the character of the East European delegations was perhaps based on the fact that no important Chineseexcept Chou En-lalas visited Eastern Europe, the fact that most Kaat European satellite leaders have Visited China,

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The presence of several prominent Latin Americanparty leaders in Peiping provides an opportunity for them to discuss with topofficials new tactical plans In furtherance of Chinese objectives In latin America. Top officials of the Brazilian, Argentine, and Venezuelanspoke at tbe openingpraising Chinese Peiping has thus far been most successful inantl-US sentiment In Cuba. Hons of theatin American nations has diplomaticwith Communist Chins, but Cubs recently became the first country lo tbe area2 to abstainnited Nations General Assembly vote on the question of Chinese UN

The growing Chlneaearmed forces received con-sldersble emphasis In the large military review held in Peiping. modern military equipment of Chinese manufacture includinget fighters,. arge field artillery pieces, andecently built tanks were prominently displayed. Inannon,anks,et aircraft

Tbe appearance of almost all leading party, government, and military leaders at tbe ceremonies has provided some new insight Into the government changes announced by Peiping two weeks ago. Two Important military figures, who lost their posts In the Ministry of remain unaccounted for so far in reports of the The continued absence of former defense minister Pong Te-hual and his former chief of staff when all other seniorleaders appeared insupports other indications that they were removed forreasons.

This note la echoedong article by the new defense minister. Lin Plao, whicha number of policywithin tha servleea over the general question of party "leadership" of the armed forces, including the party's massive employment of troops In tbe "leap forward" and th*program. Throughout bis article Lln refers to those at odds with the party center ashus suggesting that Peiping hopes to reform most of them through 'study and Peiping is apparently satisfied with the militaryof the army, which Lln described as "triumphant,"

A somewhat Jarring note to the general mood of harmony and progress is contained In snby Chinese head of state Liu Shao-chl which appeared in conjunction with the National Day holidays. Liu repeated the party's earlier concern that "righttbat the regime's domestic program--poses the greatest threat to Chinese development atAlthough Liu also described the critics asis emphasis oo the continuing threat suggests that action against some of these critics sill be resumed after the Natlonsl Dayare over.

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