CURRENT INTELLIGENCE WEEKLY SUMMARY: PEIPING CELEBRATES TENTH ANNIVERSARY

Created: 10/1/1959

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Current Intelligence Weekly Summary

CENTRAL INTELLIGENCE AGENCY OFFICE OF CURRENT INTELLIGENCE

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CONFIDENTIAL

CURRENT INTELLIGENCE MEEKLY9

THE WEEK IN BRIEF

F IMMEDIATE INTEREST

PEIPING CELEBRATES TENTH ANNIVERSARY Page 1

At the celebration In Peiping of the tenth anniversary of "heir regime, China's leaders are placing majoron "peaceful construction" while reaffirming their long-range goal to "liberate" Taiwan. Soviet Premier Khrushchev at tbe celebrations attempted to dissociate the USSR froa Peiping's harder foreign policy line and to encourage Chinese moderation. Continuing differences between Moscow and Peiping are indicated by the omission by Khrushchev and Suslov of any mention of the communes. Moving toward the Soviet lioe, Premier Chou En-laithe Elsenhower-Khrushchev communique and stated that China and tbe bloc will "surpass" capitalism in "peaceful conpetltlon." Anniversary developments support other Indications that the recent Dofense Ministry changes reflect policy differences which Peiping hopes to resolve in nost cases without resort to harsh methods,

OOHnDCNTIAL

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THE WEEK IN BRIEF

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r IMMEDIATE INTEREST

PEIPING CBLBBftATES TENTH ANNIVERSARY

the celebrationsway In Peiping of the regime's tenth anniversary, the Chinese Communist leaders have placed major emphasis on "peaceful construction" and the "brilliant" successes of the regime in the economic field. Comparisons between the present economic situation wltb the "unhappy" situation ten years ago are clearly Intended to cover up the recent embarrassing retreat from overambitious economic targets, while dramatizing the considerable achievements of tbe ten-year period.

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

Chou's speech wasdirected toward China's most Important guest, Soviet Premier Khrushchev, andpassages reflecting the Soviet foreign policy line. Chou "welcomed" the Eisenhower-Khrushchev communique, Khrushchevpeacend asserted that China, along with the bloc, willcapitalism In peaceful competition."

In his 3peech whichChou's, Khrushchevon foreign policy and the line of peaceful His remarks that "we must do everything possible to preclude war" and that "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 tbe impression to the West that he Intends to maintain theof detente and sought to dissociate the USSR fromharder foreign policy line.

Khrushchev may seek totho Chinese leaders in private talks of the need to moderate their propaganda. The Chinese will probably tellthat they must continue to highlight Americanagainst China until therebasic" change in American policy toward the Nationalist position on the offshore islands and Taiwan. They will probably point out that the pledge to "liberate" Taiwanseful domestic slogan to push tbe populace toward greater efforts.

Khrushchev himself seemed appreciative of the propaganda Importance to Peiping of the "liberate Taiwan" slogan, and in biseptember remarks expressing sentiments againstin general, be excepted "liberating" wars. Tbe pledge to "liberate" Taiwan made by Liu Shao-chl and DefenseLin Plao during thewas in a long-term context and did notense of urgency. The Chinese Communists announced they would

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CURRENT IMTELLIGENCE WEEKLY9

shell the Chinmen complex oneptemberctober in order to enableo celebrate the anniversary "happily."

Khrushchev appeared to endorse Communisteconomic policies,he and Soviet presidium member 3uslov--who spoke onoptcmber--made the usual of Soviet support and friendship, Khrushchevcomment onhlevements, asserting it Is "not for me" but for "you. my friends, to speak of your He avoided anyto tbe commune program and to the "leaput referred to Soviet experience as an "object lesson inconstruction." Like Sus-lov. Khrushchev apparently was suggesting to the Chinese that they would profit by adhering more closely to the USSR's methods in industrial andtechno1ogy.

Tho continuing Sovietto Influence the Chinese to change the term "commune" back to cooperativeeorgian Republic newspaper oneptember, which stated the "cooperatives formed9 were called the people's communes by ourcomrades." For Moscow, the term apparentlyighly advanced stage of socialImplication 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 th* Chinese regime has "peaceful" Intentions. It would appear to b* in Peiping's Interest to adopt mors fully the Soviet line on "peacefulove which may well be reflected in any joint communique.

The UlSft's delegationigh-level, businesslike group and Includes th* deputyof the State Committee for Foreign Economic Relations Th* occasion might be marked by the announcement of someof or small addition to Soviet aid In theof China. Th* delegations from the three Asian satellites, which ar* headed by theirpartylsothe defense ministers from North Korea and North Vietnam, suggesting discussions will be held on Far East military

The absence of almost all the top Eastern Europeanprobably Indicates that no key matters specificallytheir countries will be discussedplng. Inthe USSR probably would not welcome the symbolic signlf-icsoce st this time Of aof all bloc leaders lo the Chinese capital. Protocolfor th* character of the East European delegations was perhaps based on tho fact that no Important Chineseexcept Chou Kn-ihias visited Eastern Europe,the fact that moat East Buropean satellite leaders have visited China.

EGOIST

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, snd Venezuelanspoke at the openingpraising Chinese Peiping has thus far been most successful Inanti-US sentiment in Cuba. None of theatin American nations has diplomaticwith Communist China, but Cuba recently became the first country in the area2 to abstainnited Nations General Assembly vote on the question of Chinese UN

Tho growing Chinesearmed forces receivedempbasls In the large military review held In Peiping. modern military equipment of Chinese manufacture Includinget fighters, probably, arge field artillery pieces, andecently built tanks were prominently displayed. Inannon,anks,ot aircraft

The appearance of almost all leading party, government, and military leaders at the 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 tho Ministry of remain unaccounted for so far in reports of the. The continued absence of former defense minister Peng Te-hual and his former chief of staff when all other seniorleaders appeared insupports other indications that they were removed forreasons.

This note Is echoedong article by the new defense minister, Lln Plao. whichs number of policywithin the services over the general question of party "leadership" of th* armed forces. Including the party's massive employment of troops In the "leap forward" snd th*program. Throughout his 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 goneral mood of harmony and progress is contained In anby Chinese head of state Liu Shao-chl which appeared in conjunction with the National Day holidays. Liu repeated the party's earlier concern that "right opportunismIs,to tbe regime's domestic program--poses the greatest threat to Chinese development atAlthough Liu also described the critics asis emphasis on the continuing threat suggests that action against some ofritics will be resumed after th* National Day c< moQie" are over.

SEGRET

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