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BOX-FOLDER-REPORT: 30-3-91
TITLE:             New Chinese Attacks Links Tito and Nagy
BY:                Collins
DATE:              1958-6-19
COUNTRY:           Hungary
ORIGINAL SUBJECT:  General Desk No. 296
THEMATIC SUBJECTS: Hungary--1956-1965, Yugoslavia--Foreign Relations--China, Communist Parties--Ideology

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NEWS & INFORMATION
EVALUATION & RESEARCH
GENERAL DESK No. 296

Hungary 1958 F-135

News Background

Sino-NEW CHINESE ATTACKS LINKS TITO AND NAGY

MUNICH, 19 June (COLLINS, General Desk) -- Yesterday's
"People's Daily" enlarged with a vengeance on previous Chinese
Communist Party charges against the Yugoslavs for their alleged
role in the "counter-revolutionary events in Hungary," according
to a Hsinhua dispatch summarizing the article yesterday.

Variations on the accusation that the Yugoslav
Embassy in BUDAPEST became a "haven" for the Nagy group after
the suppression of the armed revolt from where continued its
"treasonous activities" appeared in the "People's Daily"
description of the "counter-revolutionary activities of the
BUDAPEST Central Workers' Council."

The paper said: "After the counter-revolutionary
rebellion had been suppressed the enemy used the Workers' Councils
as their last bulwark for counter-revolutionary activities. At
meetings of the then BUDAPEST Central Workers' Council (center of
the counter-revolution), the Nagy elements, Horthy elements,
Western spies and Yugoslav" officials gathered to listen to reports
on the Yugoslav 'experiences'."

The underlined passage above from "People's Daily" may
be translated into current Marxist/Leninist jargon as referring
to "revisionists, fascists, imperialists and Titoists." The
latter terms are basic adjectives of the anti-Yugoslav campaign
emanating from the capitols of the Sino-Soviet bloc. The original
passage from the Chinese paper is also reminiscent of the complex
of charges hurled at Slansky and his fellow defendants at the
1951 show trials in PRAGUE. At that time the "guilt by association"
accusations read "Trotskyite-Titoist-Bourgeois Nationalist Traitor."

x x x

The present Chinese article underlines once again the
apparent fear with which the various leaderships of the countries
of the socialist camp hold the Yugoslav concept of "workers'
self-management" as manifested in Workers' Councils. "The
real plot", "People's Daily" declared, "was to set up a National
Workers' Council by the Kardelj method to take the place of the
workers and peasants revolutionary government."

It has long been the thesis of Soviet affairs analysts in
the West that the significance of Workers' Councils is political,
not economic. The Workers' Council concept appeals to workers

[page 2]

Sino-(1) New Chinese Allacks…

GENERAL DESK NEWS BACKGROUND No. 296, F-136

on all levels in countries of the Soviet orbit because of the
inherent and potential promise of political control over their
immediate environment; the economic efficacy of such worker
organs seems to be recognized as questionable and, in any case,
secondary. The bureaucratic and centralistic Party leaderships
of these countries are also aware of this, hence the long passage
in "People's Daily" denouncing the councils from every aspect.

x x x 

Besides attempting to identify the Yugoslavs with Imre
Nagy's "treason" with variations on old accusations -- e.g. LYC
was the source of ideas for "revisionists who played a leading
role, ideologically and organizationally, during the
counterrevolution" -- the Chinese daily maliciously recalled for the
benefit of the Yugoslavs that one of Imre Nagy's first acts was
to "ask"[x] (sic) for "U.S. dollars", in payment for services
rendered. "The sum was neither big nor small," the paper
correctly pointed out,[xx] "it was exactly the same as the first
amount given to Yugoslavia, twenty million U.S. dollars."

And once again the Chinese Communist Party reminds TITO
that in the opinion of the socialist camp, he, like Nagy, sold out
the international workers' movement (and Yugsolavia) to the
"imperialists" for money. It is the same charge as formulated
more strongly in last Sunday's article in "Red Flag," the new
Chinese ideological journal. "Red Flag" declared that for the
imperialists TITO is more valuable -- if more expensive -- "than
a Judas," namely that "Judas betrayed a single Jesus -- TITO
is betraying the Yugoslav people."

End
(1556)

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(x) According to the "New York Times" (November 3), President
EISENHOWER offered the then Hungarian government $ 20 million
in food and medical supplies for Hungarian relief. $ 15 million
would have come from overseas surplus food stockpiles and $
5 million from the "Mutual Security Act" funds would have been
made available to the Hungarian government for needed purchases
abroad.

(xx) According to the "New York Times" (8 July 1951), American aid
to Yugoslavia began with a loan in 1949 of $ 20 million by
the Export--Import Bank.

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