Brilliant challenge, easily the best I've played. Unfortunately I was playing the 1.1 version without the early ending so it just trailed off for me.
I played on the USSR's side and noticed a couple of problems:
When the drunk KGB agent offers you free housing it has a delayed effect and gives you two apartment blocks (I think the option tells you it will give you three tenements and surely it should be immediate)
The event where the KGB want to kill or kidnap Jews on the island seems to have no effect when the killing option is chosen (This could have just been my population not having anybody who would have been killed or something)
The February 1960 earthquakes don't work properly. First, all of the messages come up at once (Telling you about the quake, how it wasn't very big, how there's another big one coming and how the last one was very big) and then you get both quakes at once.
This last one could have just been me or a problem with the way challenges work but when there's 'men in suits' causing trouble on the island, the events come before the messages telling you that things are about to happen.
I hope you're still working on this, I'm looking forward to the continued challenge.