Moscow's Hungary Ally:

...Russian publications which previously dealt mainly with current developments in Peking have shifted their interest to ancient China...

...Cheng Chu-yuan is the author of People's Communes and Communist China: Its Situation and Prospect...

...Three months ago, for example, it was revealed that two highranking Albanian political figures had been arrested, presumably because they supported Moscow...

...On January 11, 1961, by invitation of the Chinese Government, an economic delegation led by Spiro Koleka, First Vice Chairman of the Albanian Council of Ministers, visited Communist China...

...During the past two years, exchanges of official visits between the two countries have become extremely frequent...

...China's new friendliness toward its Asian neighbors is mainly the result of its present internal political and economic crisis...

...In any case, both Russia's wooing of the Far Eastern Communist countries and China's avoidance of East European affairs should not be considered haphazard occurrences...

...IN both cases, these seemingly contradictory changes in foreign policy are probably due more to internal considerations than to any common decision reached at the Moscow conference...

...Apparently the amount sought by China, plagued by famine, was too great for the Kremlin...

...But Albanian party leaders are taking strong measures to perpetuate their political ties with Peking...

...On February 2, six official documents were signed in Peking...

...Communist China's more militant stand vis-à-vis the West received a great deal of support, particularly from the non-European parties, at the November meeting...

...Peking extended an additional grant of $42 million, plus a loan of $169 million, to North Vietnam in February 1959...

...The Soviet Premier then cancelled his trip to Pyongyang...

...Two additional points made by Deutscher also are not supported by the facts...

...In March of this year, Foreign Minister Gh'en Yi visited Jakarta to seek re-estabiishment of normal relations...

...On April 8. following another two weeks of bitter bargaining, the Russians merely promised to defer payment on the previous trade balance and to grant a credit for 500,000 tons of sugar...

...Clearly, Khrushchev is trying to recover lost ground in this oldest Asian satellite...

...Peking has repaid these loans— with interest—in sums varying from $3004400 million annually during the past three years...

...But what makes Moscow most uneasy is China's pre-eminent influence in Albania, a country far from Peking but close to the Kremlin...

...Clearly, then, Deutscher's story of Khrushchev's polemical letter against Mao is not in accord with what we know of Russian and Chinese policy following the Moscow conference...

...A similar tactic was employed by Khrushchev in Outer Mongolia...

...A sudden break in Sino-Japanese trade relations in May 1958 was followed by an overall anti-Japanese campaign on the mainland and throughout Southeast Asia...

...They are a clear reflection of increasing tension and conflict between the two major Communist powers...

...But this report is not consistent with the changes in Soviet and Communist Chinese foreign policy during the last half year...

...According to the available evidence, this point is also dubious...

...Russian economic assistance was suspended in 1958...

...Khrushchev knows that if he fails to help Asian and African Communists seize power when conditions are favorable, the leadership of the world Communist movement will naturally gravitate to China...

...Similarly, after a two-and-a-halfyear cessation, Sino-Japanese trade has been resumed informally...

...Since 1958, Peking's foreign aid program has been even more substantial: In September of that year, two separate loans to North Korea were announced...

...This is particularly apparent in the area of economic assistance...

...As a result, China has shifted much of its trade to the non-Communist world...

...But in view of their basic common purpose, no open split between Moscow and Peking is likely in the near future...

...Nevertheless, basic divergences on important issues are increasingly evident in relations between the Russians and Chinese...

...More recently, this influence has stretched to Eastern Europe...

...He invited two leading Asian Communist leaders—Phem Van Dong, Premier of North Vietnam, and Kim II-sung, Premier of North Korea—to visit the Soviet Union, and they were received with extraordinary honors...

...Even more important was the signing of a 10-year military aid treaty with North Korea in Moscow on July 6. This move to formalize Soviet responsibility for the defense of North Korea was answered immediately by China...

...Similarly, when the Kremlin granted North Vietnam a long-term loan in December 1960, Peking reacted by offering both a loan and a large amount of equipment to North Vietnam...

...While Chinese policy is taking a more pacific turn, Khrushchev seems intent on playing a very different role...

...Since 1954, Chinese influence in North Korea, North Vietnam and Outer Mongolia has grown rapidly...

...At the same time, China's increasing influence in Albania is a cause of growing concern in Moscow...

...Thus, after the Moscow conference, the Soviet leader found it expedient to change his tone and take a stronger position in the Congo, Laos and Berlin...

...If the document was in fact written by Khrushchev, it would have been circulated before the November meeting rather than after...

...In May 1960, a Sino-Mongolian treaty of friendship and mutual assistance was signed in Ulan Bator by Chou-En-lai and Premier Tse Den Bal...

...Again, when the Czechoslovak Communist Party celebrated its 14th anniversary in May of this year, all bloc countries except Albania and China sent delegations to Prague...

...And in North Korea, North Vietnam and Outer Mongolia, keen Sino-Soviet competition is now apparent...

...Peking's trade with Australia, Canada, West Germany and France has developed considerably in recent months...

...Recent "leaks" from Eastern Europe indicate that the Soviet Union is intensifying its efforts to break Albania's adherence to the Chinese Communists...

...Under its terms, Peking agreed to· help finance water conservation projects and public utilities...

...Soviet Premier Nikita Khrushchev's recent efforts to tighten control over the three Asian Communist regimes, and the publication (in the London Times of July 2 and the Washington Post of July 5) of Isaac Deutscher's report alleging an open accusation of "disloyalty" against Chinese Party Chief Mao Tse-tung by Khrushchev, have led some observers to expect a showdown soon...

...It has also been reported officially that a large number of Albanian students and technicians are being trained in China...

...Although there are now 36 Communist parties in the world, only 12 of them have actually seized power in their respective countries...

...These included a treaty of commerce and navigation, and an agreement for a huge Chinese loan...

...Curtailment of Soviet economic and technological aid has not deterred Mao's regime from vying for leadership in the Communist world...

...During the period 1953-57, China granted $716 million in economic aid to North Korea, North Vietnam and Mongolia...

...Khrushchev's deliberate provoking of a new Berlin crisis and his recent threat to resume nuclear tests also suggest that Moscow's present policy is now much closer to that of Peking in the 195860 period...

...While Moscow publicly neglected Peking's July 1 celebration of the 40th anniversary of the Chinese Communist Party, a Soviet delegation headed by Party Secretary Mikhail A. Suslov arrived in Ulan Bator the same week to attend the 14th anniversary celebration of the Mongolian Communist Party...

...China's failure to obtain new economic and scientific assistance from the Russians has clearly affected Peking's loyalty to the Kremlin...

...Both before and after the Moscow conference, the Chinese Communist organ People's Daily published almost daily official Albanian statements supporting the Chinese viewpoint...

...Official Japanese visitors to the mainland have greatly increased in number...

...Sukarno then invited Liu Shao-ch'i, the Chairman of Communist China, to pay a return visit to Jakarta...

...But this year most barter arrangements were not concluded until the second quarter...

...Khrushchev's more aggressive stance, on the other hand, is aimed at consolidating Russian control over the world Communist movement...

...In February of this year, Moscow sent a delegation to Peking headed by P. N. Kumykin, Vice Minister of Foreign Trade, and I. V. Arkhipov, Vice Chairman of the State Committee for Foreign Economic Relations of the Council of Ministers, to conduct preliminary economic and trade talks...

...Annual trade agreements between Peking and the bloc countries are generally signed in the first quarter of each year...

...The failure of the Moscow talks forced Peking to revise its economic relations with the whole Communist bloc...

...Shelling Quemoy and Matsu created serious tension in the Formosa Strait...

...Chinese assistance to Albania began as early as 1954 when a Sino-Albanian loan agreement was signed...

...First, his report declared that Khrushchev charged Mao with "being obsessed with Formosa,' and implied that the Chinese leader should have sought reconciliation with the United States and agreed to Formosa's formal detachment from Red China...

...If Peking is to weather its domestic troubles, it cannot afford to create fresh conflicts close to home...

...With the advent of the Great Leap Foward and People's Communes in 1958, however, China initiated a series of agressive actions against its neighbors...

...In 1960, when the Sino-Soviet quarrel reached a new height, Albania stood squarely behind Peking...

...China has traditionally relied on the familiar "united front" line, which solicits the unity of all Asian, African and Latin American countries in order to wage a world-wide struggle against the Western powers...

...This is exactly the opposite of what Khrushchev reportedly told President Kennedy at Vienna: "If I were Mao Tse-tung, I would have taken Formosa a long time ago...

...In October 1960, after Khrushchev had publicized his plans to visit North Korea the following month, China provided a new large loan to that country...

...Another significant event, which received insufficient attention from Western experts, was the failure of Liu Shao-ch'i, leader of his Party's delegation to the Moscow conference, to pay the usual courtesy visits to the East European satellites after the close of the meeting...

...The Sìno-Soviet Rift Moscow's Hungry Ally By Cheng Chu-yuan RECENT DEVELOPMENTS within the Communist bloc indicate that substantial changes are taking place in the Soviet Union's relationship with the People's Republic of China...

...in 1956 the amount dropped drastically to $50 million...

...His attack on the United Nations last September, and his aggressive demand that the UN Secretariat be reorganized and Secretary General Dag Hammerskjold be replaced, has not enhanced the Soviet leader's reputation as a sincere advocate of peace...

...And in an interview with a visiting Japanese Socialist, Chou-En-Lai suggested a Sino-Japanese conference at the ministerial level...

...During the past few months, Khrushchev has attempted to meet the Chinese challenge by strengthening relations between Moscow and the Far Eastern bloc countries...

...After 1958, the number fell to about 7,000, and it is believed to be less than 5,000 now...

...Large-scale Russian support of the Communist-led Pathet Lao rebel movement in Laos has barely been concealed...

...Since 1958, China has signed longterm trade agreements with six Communist countries, but there is still no such pact with the Soviet Union...

...And early in July, in a move clearly designed to embarrass Peking, Moscow revealed that China still owed it $300 million for 1960 as a result of the failure to meet its export commitments...

...Soon after, a Chinese delegation was sent to Moscow to resume talks...

...Today, for example, Albania steadfastly supports Peking...

...All of these Chinese moves during the period 1958-60 were contrary to the Russian line of peaceful coexistence...

...in December, a long-term loan of $25 million was granted to Outer Mongolia...

...Secondly, Deutscher suggests that the Communists "sought the Korean War on Mao's rather than on Stalin's initiative...

...The other 64 are still minority parties and are often treated as outlaw groups...

...In addition, Peking promised to help Albania in constructing 25 major industrial projects...

...No satisfactory agreement was reached after two weeks of discussion...

...Soviet economic aid to China began to decline in 1955...

...The Chinese have been forced to increase their exports to Russia, while simultaneously curtailing their volume of imports...

...Before 1957, the number of Soviet specialists and technicians working on the Chinese mainland totalled 10,000 persons...

...Since the November conference of the 81 Communist parties in Moscow, however, China has signed a series of treaties and agreements with Asian non-Communist countries...

...The pattern of diminishing Soviet aid is likewise evident in the scientific and technological fields...

...Or is it simply due to Peking's need to avoid further involvement in Eastern Europe while it is confronted with great domestic economic difficulties...

...The bloody suppression of the Tibetan revolt in 1959 led to border warfare with India...

...The settlement of the Sino-Burmese border dispute, and the dispatch of a 400man delegation led by Premier ChouEn-lai to Rangoon at the beginning of this year demonstrate that Peking is now more eager to accommodate to Soviet policy...

...The two countries are still cooperating closely in the area of foreign policy toward the West, but the much talked about rift between them seems wider than ever before...

...According to Deutscher, Khrushchev circulated a letter among several European Communist parties which charged the Chinese leader with incitement to world war and "subversive agitation" against Russia...

...Last December, two Japanese ships arrived in Tientsin to exchange equipment for vegetable oil and coal...

...Peking is also anxious to repair the break with Indonesia...

...Does this reflect increasing Soviet pressure on the East European satellites to boycott China...

...Cultural relations between the two countries also seem to be declining...

...The following year the Soviet's granted a loan of less than $10 million, smaller than Chinese loans to Ceylon...

...During that year, Peking received $700 million in loans...

...A bitter dispute about the "overseas" Chinese in Indonesia brought the two countries to the brink of a diplomatic rupture in 1960...

...Following an official visit by Indonesian President Sukarno to Peking in the middle of June, a Sino-Indonesian friendship agreement was signed...

...Their leaders have become impatient with the doctrine of coexistence and would welcome a drastic change...

...In recent months, the number of Asian, African and Latin American delegations visiting Peking has far exceeded those traveling to Moscow...

...A "Treaty of Friendship, Cooperation and Mutual Assistance" with North Korea was concluded in Peking on July 11...