CURRENT SOVIET TACTICS: SATELLITE TRADE

Created: 9/8/1950

OCR scan of the original document, errors are possible

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SOVET TACTICS

Malik and the UN Soviet tactics in the Security Council during September will in generalto the pattern developed during August; any variations will be largely the result of having lost those opportunities for procedural obstructionism deriving from Malik's position as president of the SC. Nevertheless, in continuing his campaign to use the Chinese Communist charges of US aggression on Taiwan and US violations of Manchuria to pin the label of aggressor on the US, Malik will still have considerable opportunity to obstruct,and confuse the deliberations of the Security Council. This campaign, however, designed primarily for Asian consumption, may begin to backfire during September as reliance on the veto rather than purely procedural maneuvers will dramatize Soviet Intransgcnce. Soviet propaganda efforts will be further deflated by US wlUlngness both th permit UN Investigations of the Taiwan and Manchurian issues and to abide by majority UN decisionstheir disposition.

North Korean Reserves The numerous reportseadily

available strategic manpowerin Manchuria composed of Korean veterans (who had served with Chinese Communist forces in the Manchurian campaign) tend to be discounted by theof such troops in the combat area. It is logical to assume that ifeserve had been in existence onune, it would have been committed shortly after UN forces had been committed and when its use might have proved decisive.since mid-July the North Korean Army has been using recruits with as little as two weeks' training. In addition, even if not immediately available in concentration areas onune, there has been ample time since that date to organize and equip any. Korean veterans in Manchuria who would have been far more

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useful in combat than the inexperienced reinforcements being used. Thus, It is likely that the North Koreans will have to depend for further replacementson-veteran Koreans recruited in Manchuria and that part of Korea now in Communistntrained Chinese Communist or Soviet manpowerhinese Communist or Soviet military units. If it is decided to commit such forces In order either to defendh parallel or to drive UN forces out of Korea.

Satellite Trade The continuing Soviet campaign to integrate the economies of the Satellites has resulted in the almost complete absence of formal commercial and financial agreements between Rumania and Bulgaria with tho countries outside the Soviet orbit. These two countries thus resort to spot purchases of strategic Items Irom therocedure which is proving more successful in evading Western export controls than would bo possible If formal commercial agreements were In effect. Rumania has been obtaining many types of petroleum equipment, bearings, vehicles and other goods on the prohibited lists. Bulgaria is obtaining from the West similarly banned goods, especially transport equipment, required for its industrialization program.both countries-are making direct and clandestine purchases of military goods from Western sources. The USSR is apparently supplying Bulgaria and Rumania with the hard currency for these spot purchases which, because they can be concluded rapidly and are small In volume, often go unnoticed by Western officials.

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