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also available as Scanned original in PDF.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 --- Begin --- 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) ------------------------------------ (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.