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2 SECRET West and particularly the United States, con- bility, particularly in the selection and train- tinued and deliberate violation of Peace Treaty ing of a new officer corps. Some concrete re- provisions, and open defiance of formal pro- sults of the reorganization are already evident. tests indicate Rumania's pursuit of this course. Future progress will depend upon the political The principal economic problem in Ru- and economic development of the country as mania is one of rehabilitating the basic ele- well as strategic considerations governing the ments of the economy (agriculture and petro- employment of the army. leum) which were exploited to the maximum Rumania's importance in the East-West by the Axis, and, during the occupation, by struggle is closely related to the degree of its the USSR. Drafting of industrial plans was subservience to the USSR. Rather than seek- begun in October 1948. A one-year experi- ing the establishment of a "government mental plan for recovery and development friendly to the Soviet Union," Soviet moves was announced at the end of December, and have been designed to eliminate or minimize went into operation on 1 January 1949. all factors which detract from the full use of The major difficulty lies in the fact that Rumania's potential by the USSR and to ex- critical items of equipment and machinery ploit those elements which increase Ru- must be obtained from sources outside Ru- mania's value as a Soviet Satellite. In subju- mania. Since many of these items are also gating the Rumanian people, in establishing needed in the USSR as well as in other Satel- a Communist dictatorship and in erecting the lites, it is doubtful that Rumania will receive framework of a planned economy, the Krem- more than a token amount. The relatively lin has moved methodically, without devia- slow progress achieved in meeting the produc- tion. Such vital questions, from a national tion goals already established is largely the point of view, as the rehabilitation of the result of the failure to obtain these critical country, the establishment of a modern demo- materials. cratic order, and the organization of a de- fensive army, have been wholly subordinated The military importance of Rumania to the to the seizure and consolidation of Commu- Soviet Union arises from its strategic location nist political control. As this control became which makes Rumania significant in the secure, the timing of specific measures to Soviet defense in depth. Additional factors transform Rumania into a replica as well as of military importance are: the security of appendage of the Soviet Union was based on supply lines passing through Rumania; the a policy of gradualism and expediency. The construction of airfields for Soviet offensive or implications of the new order being estab- defensive use; the maximum use of oil fields lished in Rumania were revealed to the peo- and other petroleum installations. ple step by step. The theory of "class war- Development of Rumanian Armed Forces fare" was first publicized in June 1948; the will be governed by the decision of the Kremlin "dictatorship of the proletariat" was publicly as to what share in Soviet strategy can be proclaimed in January 1949, and it was not entrusted wholly or in part to Rumanian until March 1949 that the Party formally an- troops. This decision will be based in part nounced its program for collectivization of on the most efficient use of Rumanian man- agriculture. power as well as on the political reliability In the face of constant Soviet pressures, the of Rumanian units. Rumanian people have remained hostile, res- The appointment in December 1947 of Emil tive and withal essentially impotent. Sur- Bodnaras as Minister of National Defense face cooperation with the regime is the price marked the beginning of a program of rehabil- of survival. Although estimates place the itation and revitalization of the armed forces. opposition as high as 90 percent of the total Under this program definite steps are being population, it has been thoroughly muzzled taken to improve morale and to equip the and suppressed. Resistance to the regime is various units with standardized weapons. not likely to become significant until the Emphasis is being placed on political relia- threat of overwhelming retaliation is removed.

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    "ocrText": "2\nSECRET\nWest and particularly the United States, con-\nbility, particularly in the selection and train-\ntinued and deliberate violation of Peace Treaty\ning of a new officer corps. Some concrete re-\nprovisions, and open defiance of formal pro-\nsults of the reorganization are already evident.\ntests indicate Rumania's pursuit of this course.\nFuture progress will depend upon the political\nThe principal economic problem in Ru-\nand economic development of the country as\nmania is one of rehabilitating the basic ele-\nwell as strategic considerations governing the\nments of the economy (agriculture and petro-\nemployment of the army.\nleum) which were exploited to the maximum\nRumania's importance in the East-West\nby the Axis, and, during the occupation, by\nstruggle is closely related to the degree of its\nthe USSR. Drafting of industrial plans was\nsubservience to the USSR. Rather than seek-\nbegun in October 1948. A one-year experi-\ning the establishment of a \"government\nmental plan for recovery and development\nfriendly to the Soviet Union,\" Soviet moves\nwas announced at the end of December, and\nhave been designed to eliminate or minimize\nwent into operation on 1 January 1949.\nall factors which detract from the full use of\nThe major difficulty lies in the fact that\nRumania's potential by the USSR and to ex-\ncritical items of equipment and machinery\nploit those elements which increase Ru-\nmust be obtained from sources outside Ru-\nmania's value as a Soviet Satellite. In subju-\nmania. Since many of these items are also\ngating the Rumanian people, in establishing\nneeded in the USSR as well as in other Satel-\na Communist dictatorship and in erecting the\nlites, it is doubtful that Rumania will receive\nframework of a planned economy, the Krem-\nmore than a token amount. The relatively\nlin has moved methodically, without devia-\nslow progress achieved in meeting the produc-\ntion. Such vital questions, from a national\ntion goals already established is largely the\npoint of view, as the rehabilitation of the\nresult of the failure to obtain these critical\ncountry, the establishment of a modern demo-\nmaterials.\ncratic order, and the organization of a de-\nfensive army, have been wholly subordinated\nThe military importance of Rumania to the\nto the seizure and consolidation of Commu-\nSoviet Union arises from its strategic location\nnist political control. As this control became\nwhich makes Rumania significant in the\nsecure, the timing of specific measures to\nSoviet defense in depth. Additional factors\ntransform Rumania into a replica as well as\nof military importance are: the security of\nappendage of the Soviet Union was based on\nsupply lines passing through Rumania; the\na policy of gradualism and expediency. The\nconstruction of airfields for Soviet offensive or\nimplications of the new order being estab-\ndefensive use; the maximum use of oil fields\nlished in Rumania were revealed to the peo-\nand other petroleum installations.\nple step by step. The theory of \"class war-\nDevelopment of Rumanian Armed Forces\nfare\" was first publicized in June 1948; the\nwill be governed by the decision of the Kremlin\n\"dictatorship of the proletariat\" was publicly\nas to what share in Soviet strategy can be\nproclaimed in January 1949, and it was not\nentrusted wholly or in part to Rumanian\nuntil March 1949 that the Party formally an-\ntroops. This decision will be based in part\nnounced its program for collectivization of\non the most efficient use of Rumanian man-\nagriculture.\npower as well as on the political reliability\nIn the face of constant Soviet pressures, the\nof Rumanian units.\nRumanian people have remained hostile, res-\nThe appointment in December 1947 of Emil\ntive and withal essentially impotent. Sur-\nBodnaras as Minister of National Defense\nface cooperation with the regime is the price\nmarked the beginning of a program of rehabil-\nof survival. Although estimates place the\nitation and revitalization of the armed forces.\nopposition as high as 90 percent of the total\nUnder this program definite steps are being\npopulation, it has been thoroughly muzzled\ntaken to improve morale and to equip the\nand suppressed. Resistance to the regime is\nvarious units with standardized weapons.\nnot likely to become significant until the\nEmphasis is being placed on political relia-\nthreat of overwhelming retaliation is removed."
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