CENTRAL INTELLIGENCE BULLETIN - 1958/03/26

• Document Type: SPECIALCOLLECTION
• Keywords: 2018 Sanitization
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02874598
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: March 26, 1958

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26 MARCH 1958
I. THE COMMUNIST BLOC
USSR - Atomic Energy Detection
System reports seismic disturbance
in northern Urals; presumably was
an underground explosion of a few
kilotons equivalent. (See JAEIC
statement on p. i)
United Arab Republic - Soviet
relations with United Arab Republic
appear corchal; Moscow continues
to ship arms.
II. ASIA-AFRICA
Sumatra - Indonesian army planning
overland drive from Pakanbaru against
dissident strongholds of Padang and
Bukittinggi.
0 Chinese Nationalists may stage riots
In Taiwan over Japan's failure to pro-
hibit flying of Chinese Communist
flag by Peiping's trade mission in
Tokyo.
III. THE WEST
0 France - Increased pressure by labor
for higher wages will add to difficulties
faced by French Government.
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CENTRAL INTELL
GENCE BULLETIN
26 March 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Unidentified Explosion in USSR: The Joint Atomic
Energy Intelligence Committee made the following an-
nouncement at 1730 EST, 25 March 1958:
The Atomic Energy Detection System has
reported the occurrence of a seismic disturbance
in the vicinity of Krasnovishersk in the northern
Urals, 60. 2N, 58.5E (plus or minus 30 miles) at
0900 GMT on 25 March 1958.
The reported fix is in the center of a large
aseismic area in which there have been no earth-
quake epicenters located in the last 40 years, al-
though the-,:e is a network of first-class seismo-
graphic stations in Russia including one at Sverdlovsk.
It was probably not a surface burst. It is therefore
concluded that the reported disturbance of the earth
was produced by an underground explosion of a few
kilotons equivalent yield. There are no known atomic
energy associations with this immediate area.
USSR - Ualted Arab Republic: The USSR's relations
with the new Unite Arab Republic appear cordial, despite
continuing signs that the UAR was created by Nasir to block
growing Soviet influence in Damascus. Moscow is continu-
ing to ship arms and appears prepared to implement its eco-
nomic and industrial aid commitments. The UAR, however,
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may adjust these commitments with consequent possible de-
lays in the timetable, and there have been indications that
the Egyptians may seek to replace Soviet technicians on some
of the Syrian projects.
(Page 1)
II. ASIA-AFRICA
Indonesia: Further evidence that the Indonesian Army
intends to move overland from Pakanbaru against the dis-
sident strongholds of Padang and Bukittinggi is contained
to Djakarta requesting 24 pontoons
for use in crossing rivers along the route.
The central government army chief of operations states
that operations on the west coast of Sumatra may require a
build-up of three weeks to one month because of dissident
action around Tapanuli. (Page 2) (Map)
Taiwan - Japan - Communist China: An anti-Japanese
outburst "with disastrous implications" may occur on Taiwan
on 29 March over Japan's failure to prohibit the flying of the
Chinese Communist flag by a proposed Communist trade mis-
sion in Tokyo. Japanese Foreign Minister Fujiyama has
stated publicly--as he had emphasized in private conversa-
tions--that his government will approve the private trade
agreement with Peiping. Another Japanese official has told
Ambassador MacArthur that the Chinese Communists will
be "more adamant than ever" on the flag issue, viewing it
as an excellent opportunity to irritate Tanvese - Chinese
Nationalist relations. �(Page 3)
III, THE WEST
France - Labor unrest: Labor disputes are coming to
a head in most of the French nationalized industries� One-
day strikes are likely in the transportation, power, and
postal sectors in early April as a warning to the government
26 Mar 58
DAILY BRIEF ii
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that demands for higher wages will be pressed. Increased
political instability could ensue if continued Socialist sup-
port of the Gaillard government becomes dependent on a
Socialist demand for higher wages.
(Page 4)
26 Mar 58
DAILY BRIEF iii
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I. THE COMMUNIST FLOC
Soviet Support for UAR Gaining Momentum
Soviet actions in support of the UAR are gaining
momentum in the economic, military supply, and prop-
aganda fields. The first group of Soviet technicians
under economic agreements signed in the latter half of
157 arrived in Syria and Egypt on 22 March. Arms
shipments to the UAR and Yemen are continuing and
Soviet propaganda has commented favorably on the UAR
concept of Arab unity. The USSR has evinced particular
pleasure over Yemen's alignment with the UAR, Moscow
radio pointing out that any British military action on the
Aden-Yemeni border might be opposed by joint UAR-
Yemeni action.
The overt Soviet attitude toward the UAR indicates
that despite Nasiras neutralization of pro-Soviet elements
in Syria, Moscow has adjusted its policy to Nasir's changes.
Moscow's diplomatic and material support for UAR will
probably continue, as will its efforts to give Arab nation-
alism an increasingly anti-Western cast.
26 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 1
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I I. ASIA- AFRICA
Situation in Indonesia
Further evidence of the government's intention to
undertake an overland drive from Pakanbaru to Padang
requesting
24 pontoons for river crossings on the two roads between
the two cities.
two islands off the west coast�Nias and
Siberut--will be used as a staging area for an amphibious
assault, which presumably would be launched simultan-
eously with the arrival of overland forces.
three weeks to a month are required for a build-up, and
that the defected Tapanuli region may also be included in
the target area.
The army intelligence chief on 21 March accused
Taiwan of supplying arms to the Sumatran dissidents, a
statement which may be the beginning of an official cam-
paign against Chinese Nationalists in Indonesia. The left-
wing Djakarta press has already demanded action, and
right-wing Chinese anticipate the closure of all Kuomin-
tang branches in Indonesia, the suppression of the anti-
Communist Chinese press in Indonesia, and the banning
of all anti-Communist Chinese literature from Taiwan
and Hong Kong. Financial and business transactions of
Nationalist sympathizers in Indonesia could also easily be
singled out for obstruction.
Increased activity by the Indonesian Communist party
appears to be reflected in an anti-Western, anti-SEATO
student demonstration on 25 March at the American Em-
bassy, the appearance of painted anti-SEATO slogans on
Djakarta streets, and an anti-Western petition presented
by a "farmers group" to the American Embassy on 24
March. This activity so far has been orderly, but the
Communists have the capacity to inspire large-scale
anti-American demonstrations which could easily get out
of control.
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LitAtYr 1.LFLdv1. JA114
Possible Anti-Japanese Violence Foreseen in Taipei
Ambassador Drumright sees some possibility of
an outburst of violence against Japan on Nationalist
China's Youth Day on 29 March if Japan refuses to accept
Nationalist demands to prohibit the flying of the Chinese
Communist flag by a Chinese Communist trade mission
in Tokyo. Public feeling in Taipei against Japan is high,
and the traditional Youth Day demonstration could turn
to violence, possibly including the sacking of the Japa-
nese Embassy.
Japanese Foreign Minister Fujiyama, according
to the Tokyo press, says the Japanese Government will
approve the privately negotiated trade agreement with
Communist China. The Japanese are unlikely to prohib-
it the flying of the Peiping flag, but have proposed send-
ing a special representative of Prime Minister Kishi to
Taipei to explain the government's position. Nationalist
Foreign Minister Yeh has stated that he would be wel-
come only if he brought a satisfactory answer on the flag
issue. A Japanese Foreign Ministry spokesman told
Ambassador MacArthur on 24 March that he believes
the Chinese Communists will be "more adamant than
ever" on the flag issue, viewing it as an excellent op-
portunity to Irritate Japanese-Nationalist relations.
The Chinese Communists already have initiated
talks which could lead to substantial new trade. Con-
tracts are under discussion for a $560,000,000 exchange
of iron and steel for coal and iron ore over a five-year
period. Peiping will probably make successful comple-
tion of these negotiations contingent on Tokyo's final ap-
proval of the flag provision and other clauses of the
trade agreement negotiated by private Japanese rep.,.e-
sentatives with Communist China.
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I I I. TEE WEST
Widespread Labor Unrest Threatens in France
Labor disputes are coming to a head in most of
the French nationalized industries because the govern-
ment insists no wage concessions are possible in 1958
if inflation is to be contained. One-day strikes are
likely in the transportation, power, and postal sectors
in early April as a warning to the government that de-
mands for higher wages will be forthcoming.
Railroad wage negotiations have already broken
down, and there is little hope that a settlement can be
reached by a conciliation commission which will meet
within the next ten days in a last effort to avoid conflict.
In the past two weeks the railroad unit of the Communist-
dominated General Labor Confederation has improved its
relationship with two of the free unions, and the Socialist-
led Workers' Force may be forced to join in if a strike is
called. A similar situation is likely to develop in the
other nationalized industries.
If labor unrest continues, the Socialists will be faced
with pressure from their trade union affiliates to demand
that Gaillard make some concessions to labor as the price
of their party's continued support of the government. In
view of the precarious equilibrium of the Gaillard coali-
tion, the threat of a Socialist withdrawal would be suffi-
cient to wreck the premier's austerity program or bring
down the government.
CONFID b IAL
26 Mar 58 CENTRAL INTELLIGENCE BULLETIN Page 4
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CENTRAL INTELLIGENCE BULLETIN
kIN
26 March 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Unidentified Explosion in USSR: The Joint Atomic
Energy Intelligence Committee made the following an-
nouncement at 1730 EST, 25 March 1958:
The Atomic Energy Detection System has
reported the occurrence of a seismic disturbance
in the vicinity of Krasnovishersk in the northern
Urals, 60. 2N, 58. 5E (plus or minus 30 miles) at
0900 GMT on 25 March 1958.
The reported fix is in the center of a large
aseismic area in which there have been no earth-
quake epicenters located in the last 40 years, al-
though the2e is a network of first-class seismo-
graphic stations in Russia including one at Sverdlovsk.
It was probably not a surface burst. It is therefore
concluded that the reported disturbance of the earth
was produced by an underground explosion of a few
kilotons equivalent yield. There are no known atomic
enerev associations with this immediate area.
- Labor unrest: Labor disputes are coming to
a hea in mosflhe FrenTnationalized industries. One-
day strikes are likely in the transportation, power, and
postal sectors in early April as a warning to the government
that demands for higher wages will be pressed. Increased
political instability could ensue if continued Socialist sup-
port of the Gaillard government becomes dependent on a
Socialist demand for higher wages.
(Page 4)
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