[OP SECRET k, SIGNIFICANT WORLD DEVELOPMENTS AFFECTING U. S. SECURITY (WIE 11-4-57) The Director of Central Intelligence first read to the Rational Security Council the conclusions reached in the latest tes and Policies, 1957.62" (NIB 114-57). 2222550110 Seren eae ar toe see eerrees eeeee were tree nen reocser ae meee wren tener eee ee roenes tease Orem ammo erence an meen oenee serena Swern aeecenee os ee National Intelligence Estimate on "Main Trends in Soviet Capabili- sone enver Pe Thereefter, Mr. Allen Dulles described the development of the Indonesian campaign against the Dutch on the island of Java. He predicted that a break in diplomatic relations between the Netherlands and Indonesia was more than a possibility. The Communists had been very quick to exploit the tension, and had been taking over large Dutch enterprises without authority from the government. It was by no means certain that the government could hold the Communists in "y REPRODUCED AT THE DWIGHT, D. BISEWHOWBR LIBRARY * eee *s - the trade unions within bounds. 4 The President inquired whether this violent anti-Dutch campaign was being carried out only by the government at Dijakarta, or whether the dissidents in the outer islands were also joining in the campaign. Mr. Dulles replied that the answer was not clear, but that in any event manifestations against the Dutch in the outer islands were not likely to be so violent as in Java, because the Communists were fewer in number on the outer islands. Mr. Dulles went on to state that the situation had been made mich worse by the recent attempt to assassinate President Sukarno. We still do not know who was back of the assassination attempt. It could have been engineered either by the Communists or by fanatic Moslem extremists. Secretary Dulles stated that he had been told eatin