CONFIDENTIAL
NO: 527
FROM: SEOUL
DATE: MARCH 5, 1954
RECD: 3/6/1 PM
Sent Dept 859 rptd info Tokyo 527 March 5, 4 PM.
Tokyo pass CINCUNC and CAG.
Government's proposed amendment 4 economic articles of constitution (see economic section, WEEKA number 4) with announced intention encouraging private ownership and free enterprise still being considered by assembly but uncertain whether approval 2-3rds members can be obtained for passage. Full report on amendments being pouched.
Amendments received generally favorable comment from press, business, and political circles when transmitted to assembly January 23, and at that time passage appeared likely. Open opposition which has developed daring past 10 days apparently partially contest for political advantage in connection May elections. Announced objections include charges amendments (1) not necessary and being advanced only to obscure government's economic failures, (2) will open door for exploitation by foreign capital, (3) inadvisable on grounds social justice, and (4) should have more thorough study and deliberation. Additional reasons for opposing amendments voiced privately by assemblymen or mentioned by press include: (1) Enemies Prime Minister Paek Tu-chin may hope undermine him by defeating amendments which he is pushing at instructions President Rhee, and (2) liberal party assemblymen out of favor with government are bargaining for official support during May elections in return for their votes.
Members opposition DNP, which generally takes conservative economic position, apparently still support amendments, whereas most objections raised by independents and liberal party members; some opposition assemblymen are reluctant approve amendments which theoretically encourage vested property disposition in which they have little opportunity to profit, however. Government officials led by Prime Minister Paek, after initial surprise at sudden unfavorable change in assembly attitude, have energetically pushed amendments by various means. President Rhee reportedly supported amendments strongly when liberal party representative called on him at Chinhae. Still uncertain whether these tactics will reduce opposition sufficiently although assembly debates March 5 and 6 to permit LP assemblymen attend provincial party conventions, and as LP national convention scheduled March 10 vote on amendments may not be taken within next week. Government will probably continue bring pressure for passage during this period.
BRIGGS
7 copies/rmq
