CENTRAL INTELLIGENCE BULLETIN - 1961/05/04

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02049779
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 19
• Document Creation Date: August 14, 2020
• Document Release Date: August 27, 2020
• Publication Date: May 4, 1961

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3.3(h)(2)
4 May 1961
Copy No. C
CENTRAL
INTELLIGENCE
IF ammvc m
BULLETIN
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4 May 1961
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
1. Laos. (Page t)
2. Cuba: Militia in Santiago instructed to "take over"
parochial schools. (Page ttt)
3. Portugal: Further cabinet changes made to strengthen
support for Salazar's status quo policies. (Page ttt)
4. USSR: Activity of Northern Fleet submarines, prob-
ably nuclear powered, at high level this spring. (TOP
(Page tit)
5. India: New Delhi purchases British jet light bombers.
(Page iv)
6. Iraq: Iraq Petroleum Company alarmed over strained
relations with Qasim regime. (Page tv)
8. Ethiopia: Haile Selassie financing army and police
pay raises by reducing civil servants' salaries.
(Page v)
9. Panama: Popular discontent reported "potentially ex-
plosive." ('Page
10. Watch Committee conclusions. (Page vt)
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CENTRAL INTELLIGENCE BULLETIN
4 May 1961
DAILY BRIEF
*Laos: The royal government ordered its forces to cease ok
all military activity on 3 May in response to the Kong Le -
Pathet Lao cease-fire order. Ban Namone, the location pro- 4tc
posed by Kong Le for a negotiating site, is in the area of the 47>
initial contacts between emissaries of the two sides and is ac-
ceptable to General Phoumi.
There is not enough information yet to judge the general re-r- /Ps /,
sponse of Kong Le - Pathet Lao troops to the 3 May cease-
fire. The local cease-fire in the area south of Vang Vieng
continues in effect. Laotian Army sources claim that Pha Lane,:
in southern Laos midway between Tchepone and Savannakhet, 3
was under attack early on 3 May, but the attack reportedly end-
ed at 0700 that morning.
In a 3 May broadcast over Xieng Khouang radio, Souvanna
Phouma proposed that all parties in the present crisis meet
In Ban Namone on 5 May to negotiate political as well as mil-
itary issues. He apparently envisaged that military and po-
litical delegations would conduct discussions separately but
simultaneously. Souvanna stipulated that the political issues
to be settled were the formation of a coalition government
and a Laotian delegation to attend the conference at Geneva.
(_The Indian Government informed Ambassador Galbraith that
the Geneva co-chairmen would issue instructiorS ..e Tro on
the night of 3 May to proceed at once to LaosZ .
Six soviet and North Vietnamese aircraft were engaged in
airlift operations on 2 May--three Soviet LI-2s and three North
Vietnamese transports. Eight Soviet IL-14s and two Soviet
LI-2s made flights from Hanoi to Xieng Khouang on 3 May, and
nine Soviet aircraft were scheduled for flights into Laos on 4
May. (Backup, Page 1)
(Map)
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(The Watch Committee at its meeting on 3 May reached
the following conclusion concerning Laosi3
CAThile the Communists appear willing to cease fire in
Laos for the moment, they will insist that any political
settlement in Laos reflect their dominant military position.
The Communists will improve their military capabilities
during a cease-fire and will be prepared to resume offen-
sive operations at any time they become dissatisfied with
the course of negotiations, provided they estimate that this
can be done without incurring SEATO intervention. No mil-
itary movements indicative of Chinese Communist intent to
become involved in Laos have been noted nor is there any
indication of a Soviet intent to become directly involved
beyond the present airlift effort:3
4 May 61
DAILY BRIEF
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NUCLEAR SUBMARINE DEVELOP-
MENTS, USSR
BARENTS SEA
tITSA FAY
---,,KOLA GULF
Murmansk
0'1
Kola Pen.
Severodvinsk
USSR
Miles
oio
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Cuba: The regime is moving against private schools in 0
Cuba following Castro's 1 May announcement that laws will be
passed "in the next few days" to nationalize private and paro-
chial schools and expel foreign priests. Ramiro Valdes, Com-
munist chief of Cuban army intelligence, instructed his sub-
ordinate in Santiago, to y
"take over" the parochial schools with militia "in order to prer-
vent sabotage in them."
There are some 250 parochial schools in Cuba, with a
normal enrollment of about 130,000 students. The American-
founded Villaneuva University was specifically slated for na-
tionalization in Castro's May Day speech. The church has
never exercised great strength in Cuba outside the educational
field and has had relatively little political influence. Over 500
of Cuba's approximately 700 priests are non-Cubans, most of
them Spaniards. Castro, in his speech, said "honest" foreign
priests may remain in Cuba if they ask permission and said
there is no reason why the Catholic Church cannot "coexist"
with the new social system in Cuba, now that the "bourgeois
republic" is disappearing.
Portugal: The cabinet changes made by Prime Minister
Salazar on 3 May in the Foreign Affairs, Interior, Education,
and Corporations ministries are a continuation of the reshuffle
begun on 13 April when he took over the defense portfolio and
replaced the overseas and army ministers. These changes
reflect Salazar's determination to strengthen further the loyal-
ty of the cabinet to his policies of maintaining the status quo
at home as well as in Portugal's overseas territories. The
replacement of Foreign Minister Marcella Mathias, who has
been generally friendly toward the US, suggests that Portugal
may take a tougher stand in its future relations with Washing-
ton. (Backup, Page 2)
K
USSR: Activity of the seven probably nuclear-powered
submarines comprising the Northern Fleet's sixth division
has been at a high level this spring. During the past two 71-
weeks, at least three of these units have been engaged in local
operations in Northern fleet waters and one unit operated in
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1400
11
the northern Barents Sea. The slxthI division, which is believed
based in Litsa Bay west of the entrance to Murmansk, probably
includes all the nuclear submarines in operational status in the
Soviet Navy.
In addition to the nuclear submarines estimated to be pres-
ently operational, at least one in both the Northern Fleet and
Pacific Fleet areas are outfitting or are in trials and training
status. As many as six additional probable nuclear submarines
may be under construction at Komsomolsk in the Far East and
an unknown number under construction at Severodvinsk on the
White Sea. (Map)
India: rNew Delhi has reportedly contracted for the pur-
chase of Canberra jet light bombers from Great Britain
Delivery of these air-
craft, scheduled for completion by August, will bring the Indian
Air Force's (IAF) fleet of Canberras to a total of 95, including
13 trainer and photo-reconnaissance versions. The purchase will 1
draw down still further India's sterling reserves, now at an all
time low of $267,000,000, but the Defense Ministry argued that
these planes were necessary to strengthen IAF capabilities in
the northeastern frontier area opposite Tibet. High-ranking
Indian officers continue to favor Western combat equipment,
which must be paid for in hard currency, despite opportunities
to deal with the brioc on more favorable terms and on a rupee
payment basis
(Backup, Page 3
Iraq-Oil: CAlarmed over strained relations between the
Iraq Petroleum Company (IPC) and the Iraqi Government,
the company chairman, Lord Monckton, is personally taking
over negotiations with Prime Minister Qasim. Both the IPC
managing director and the company's chief representative in
Iraq, who have conducted negotiations for two and one-half
years since Qasim's assumption of power, have been public-
ly criticized by Qasim and vilified recently in the Iraqi press.
The chairman's action is being taken under pressure from the'D
4 May 61
DAILY BRIEF iv
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CFrench interests in IPC, who remain fearful that Baghdad
might nationalize their 23.75-percent shar--.
Jordan: King Husayn intends within a month to appoint a
caretaker cabinet to supervise elections, according to a source
close to the King. Husayn told the British ambassador that the
elections would be held in late June. The decision apparently
is an initial step toward fulfillment of Husayn's plans for install-
ing a more youthful and progressive government. Coming at
this time, it probably also reflects the King's sensitivity about
possible adverse repercussions from his announcement of his
intention to marry an English woman.
N)
the prevention of demonstrations after the wed-
ng plans were announced "even if it be for the purpose of re-
joicing." While there reportedly have
been some celebrations in Amman, the American ambassador
reports an attitude of "dismay and bewilderment" among many
Jordanians following Husayn's betrothal. The UAR's govern-
ment-controlled press has been only mildly critical so far
(Backup, Page 4)
Ethiopia: Haile Selassie is carrying out his decision,
announced last month, to finance army and police pay raises
by reducing the salaries of civil servants. The reductions,
amounting to as much as 20 percent of basic salaries with
50-percent cuts in allowances, will increase discontent among
the educated younger officials who have been most critical of use
the regime. The action probably will also increase their re-
sentment against foreign advisers, who are exempted from
the measure, and possibly against the army and police whose
recent agitation for higher pay precipitated the Emperor's
decision. The civil servants may organize protest demonstra-
tions. They may also try to hamstring government operations,
but the Emperor's control will not be endangered as long as he
retains the army's support.
v
Panama: Although prompt action by the government ef-
fectively controlled recent pro-Castro demonstrations, Panama's OK
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DAILY BRIEF
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internal situation; -"while not imminently critical, is danger-
ous and potentially explosive," according to the American am-
bassador there. President Chiari has been concerned over
evidence that revolutionary groups anxious to overthrow him
are closely allied with pro-Castro elements and are probably
receiving money via the Cuban Embassy in Panama. He doubts
the ability of the National Guard, Panama's only armed force,
to repulse strong opposition. Discontent arising from economic
stagnation and unemploymert provides fertile ground for politi-
cal agitation in Panama. (Backup, Page 5)
WATCH COMMITTEE CONCLUSIONS
A. No change from last week.
B. No change from last week.
C. Carried on page ii of Daily Brief.
4 May 61
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Situation in Laos
Although there is no evidence
that Vinh and Dong Hoi are being used for staging or
pass-over points for airlift flights in central southern Laos,
such a function is possible. Prior to 22 April only individual
Soviet aircraft were noted in infrequent flights to the southern
part of North Vietnam. On that date, however, five LI-2s and
five IL-14s were tracked by North Vietnamese air-warning
facilities in the Thanh Hoa and Vinh areas. On 28 April four
Soviet IL-14s were noted in round-trip flights between Hanoi
and Vinh. All of this activity indicates increased deliveries
to Pathet Lao elements in central and southern Laos. It is
also possible that some of the supplies flown to southern
North Vietnam may be destined for Viet Cong guerrilla ele-
ments in South Vietnam.
Inclan preparations to move the ICC to Laos are considerably
advanced. At the request of the Indian chairman of the ICC,
the Cambodian ambassador in New Delhi asked his government
whether it could, in the very near future, accommodate 200
-
ICC members for three days and transport them to Laos. The
Royal. Laotian Government on 2 April reportedly gave its ap-
proval in principle to the return of the ICCj
The Chinese Communist Foreign Ministry yesterday charged
that a Laotian government plane "intruded" into Chinese air space
on 2 May, and said this "cannot but arouse the serious concern
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Amy
of the Chinese government." It stated that "the Phoumi -
Boun Oum rebel clique must immediately discontinue such
encroaching acts" or else "shoulder all consequences arising
therefrom." The Foreign Ministry statement, not an un-
usually strong one for Peiping, is similar in tone to the many
protests Peiping has made for the record regarding alleged
violations of Chinese waters and air space along the east
coast of China.
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t4 On 1/ LIMN .1 LILL,
7tiore Napo
Further Cabinet Changes in Portugal
The four new appointees to cabinet posts may all be con-
sidered individuals in whom Salazar has great personal con-
fidence. The new foreign minister, Alberto Franco Nogueira,
previously served as director general of political affairs in
that ministry and has been one of Portugal's delegates to the
UN. Interior Minister Lt. Col. Arnaldo Schulz has been re-
placed by Alfredo Rodrigues dos Santos. Schulz reportedly
was a follower of General Botelho Moniz, whom Salazar
dropped from the Defense Ministry as a result of Monie de-
clared intention to press for certain reforms in the adminis-
tration of African colonies even if it meant the removal of
Salazar.
The appointment of Manuel Lopes de Almeida to the
Education Ministry and Jose Goncalves Proenca to the Cor-
porations Ministry brings "new blood" into higher levels of
government.
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*4ari Noe
India to Buy Additional Canberra Jet Bombers From UK
&he three operational Canberra bomber squadrons now
active in the Indian Air Force (IAF) are deployed primarily
to counter threats from Communist China and Pakistan on
India's northern and northwestern frontiers. Additional
Canberras will permit formation of a fourth squadron for
full-time duty in the sensitive northeast area
Lin choosing to buy more Canberras, New Delhi has in
effect rejected Russian offers to provide Beagles (IL-28s),
which could perform much the same mission and would
cost less. One reason for this decision lies in the Indian
military's belief that spare parts will continue to be avail-
able in the West�nearly three fourths of the IAF's jet
strength is of British origin, while the rest is French-23
EThe overriding consideration, however, appears to be
political. In an effort to enlist Soviet support in the Sino-
Indian border dispute, New Delhi is willing to buy transport
aircraft from the Soviet Union for use on the Indian-Chinese
border, as evidenced in the recent purchases of Cubs (AN-
12s) and Crates (IL-14s). It is apparently not willing, de-
spite the cost, to take the same gamble with regard to com-
bat aircraft, the operational readiness and maintenance of
which are more critical to India's defens
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King Husayn to Install New Government
acing Husayn has expressed a desire to institute a "new
look" in Jordan by reshuffling army personnel and weeding
out incompetents from the government, in addition to ap-
pointing a new cabinet. However, he has had difficulty in
getting the people he wants to associate themselves with his
regime because of its unpopularity. Potential candidates
will be even more reluctant now that he has exposed himself
to new charges of subservience to "imperialism" by his
betrothal to the daughter of a British military adviser in
Jordan. The source, who is close to Husayn, believes the
King will try to use the caretaker cabinet to attract new
people whom he later may be able to persuade to become
permanent ministers. The caretaker cabinet probably will
include Court Minister Hasan Katib either as prime minister
or foreign minister
Ellusayn's engagement to "Muna al-Husayn," nee Toni
Gardiner, was opposed by Queen Mother Zayn, members
of the present cabinet, and the British ambassador, but
the King appears confident that no serious consequences
will result from his decision. However, some Jordanians
have said privately that he has made a serious mistake,
and the American ambassador was struck by what he called
the "muted" atmosphere at the palace the morning after the
engagement was announced)
Al-Akhbar newspaper, reviewed by Cairo radio,
has called attention to Husayn's statement that he had
"searched for love and warmth but could not find them."
Al-Akhbar commented: "By this the King means that among
the entire Jordanian people, he could find no one to offer
him love and warmth in life, so he turned to the West to
solve this family problem, just as it solves his other prob-
lems for him. He asked for the hand of a British girl in
whom he found the warmth he missed in his own people and
the love he could not find in Jordanian hearts.')
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Noe
Panama
President Chiari's failure to assert strong leadership after
he took office last October encouraged disaffection in his own
weak coalition and plotting by opposition groups. Recently,
however, he has demonstrated some initiative in both planning
and action and has asked the US for assistance to carry out
widespread economic and social reforms as well as for mate-
riel and training to increase National Guard capabilities.
Chiari and the rest of Panama's wealthy circle of ruling
families, in their periodic struggles for control of the country,
have traditionally exploited restless, impoverished urban
groups. The illegal Communist party, known as the People's
Democratic party (PDP), has been too weak and badly organ-
ized to capitalize on this situation. In the past year, however,
radical elements apart from the PDP have received increasing
encouragement and aid from Cuba and appear determined to
start a revolution in Panama. Several of these radicals, like
labor leader Andres Galvan, have been trained in Communist
China and/or the USSR and may be the nucleus of a new, more
effective Communist grouping in Panama. They are receiving
cooperation from political figures like Deputy Thelma King,
newspaperman Jorge Turner, and several known revolutionary
agitators. The combined influence of this group could Stir up
the deep discontent which is never far below the surface, es-
pecially in Panama City and Colon, both adjacent to the Canal
Zone.
The most active revolutionary group has mentioned May
as the best time to attempt a coup,
described the Castro-backed chief of the same group as very
discouraged by the rapid progress made in recent weeks by the
government housing institute. The agitator felt its success would
seriously undermine the potential for overthrowing Chia'ri, and
he may believe that he must act soon before the President takes
further action on his planned reforms or strengthens the Nation-
al Guard.
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Vire
THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Civil and Defense Mobilization
The Director, National Aeronautics and Space Administration
Chairman, Board of Consultants on Foreign Intelligence Activities
The Department of State
The Secretary of State
The Under Secretary of State
The Director, International Cooperation Administration
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Administration
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Assistant Secretary of Defense (International Security Affairs)
The Assistant to Secretary of Defense (Special Operations)
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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