CENTRAL INTELLIGENCE BULLETIN - 1960/03/26

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02977767
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: March 26, 1960

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CENTRAL
IYTELLIGENCE
BULLETIN
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26 MARCH 1960
I. THE COMMUNIST BLOC
Soviet submariries make nnrt after five-
month voyage.
Communist China--New eight-year eco-
nomic plan, believed under preparation,
will probably call for rapid increase in
industrial output.
Soviet economic delegation in UAR to dis-
cuss stepped-up aid for Syria,
II. ASIA-AFRICA
Japanese Socialist party facing prospect
of further defections.
III. THE WEST
()French expect to carry out second nu-
clear test before 1 April.
�West German defense minister says
NATO rejection of integrated logistics
system would oblige Bonn to make ar-
rangements with non-NATO countries
or curtail procurement.
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CENTRAL INTELLIGENCE BULLETIN
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26 March 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR: At least two, probably three, Soviet Northern
Fleet submarines arrived at Petropavlovsk, ICamchatka,
on 24 March, concluding the longest known voyage made
by Soviet submarines. The submarines left the Murmansk
area on about 25 October. The merchant tanker Vilyuysk
supported the submarines during the voyage through the
North and South Atlantic, the Indian Ocean, and the West-
ern Pacific. (Page 1)
Communist China
Peiping is preparing
a new eight-year economic plan (1960-67), and may have it
ready fOr presentation to the National People's Congress sched-
uled to convene late this month. The regime has claimed its
"leap forward" policies enabled the nation to meet three years
ahead of schedule most of the goals of the current Five-Year
Plan (1958-62). A new plan would almost certainly call for
further rapid increases in industrial output, which by 1967
may well be running five years ahead of the estimates Peiping
made before the "leap forward" was undertaken in mid-1958
(Page 2)
USSR-UAR: A high-level Soviet economic delegation is in
the UAR discussing plans for implementing the Soviet aid pro-
gram in Syria gl response to Cairo's request that economic de-
velopment there be stepped ullt) The $150,000,000 credit ex-
tended by the USSR to Syria in 1957 for land and transport
development has remained largely unused, in part because
of Syrian inaction. Plans for use of this credit now are being
redrafted, and additional credits for industrial projects may
be offered. (Page 3)
TO ECRET
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II. ASIA-AFRICA
Japan: The Japanese Socialist party is again facing the
prospect of defections similar to those of last year as a result
of bitter factional controversy over the party's leadership. The
defeat of right-of-center elements in the 24 March election of
a party chairman may also cause some moderate groups within
trade unions which have backed the Socialist party to shift sup-
port to its newly formed rival, the Democratic Socialist party.
(Page 4)
III. THE WEST
France: rthe second French nuclear test is expected before
1 Apri-7
(Page 5)
West Germany: /Defense Minister Strauss has said that if
West Germany's proposals for an integrated NATO logistics sys
tern are not accepted, Bonn will be forced either to curtail its
procurement of military supplies or to make additional arrange
ments with other countries, including non-NATO nations such as
(PAge 6)
26 Mar 60
DAILY BRIEF li
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L THE COMMUNIST BLOC
Soviet Submarines Conclude Record Voyage
Two and probably three Soviet Northern Fleet sub-
marines, which left the Murmansk area on about 25 Oc-
tober, arrived in Petropavlovsk, Kamchatka,on 24 March,
concluding a voyage of the longest duration--five months--
known to have been made by any Soviet submarine.
The submarines moved slowly through the North and
South Atlantic, the Indian Ocean, and the Western Pacific.
They were supported during the cruise by the merchant tanker
Vilyuysk, which made stops at the Ghanaian ports of Accra
and Takoradi; Colombo, Ceylon; and the Indonesian ports of
Djakarta and Surabaja.
The submarines were probably conducting extensive ob-
servations or tests while en route. It is estimated that these
activities included communications tests, area familiariza-
tion, and training.
The operation is believed to be a continuation of similar
operations conducted by submarines last year which were sup-
ported by the Vilyuysk in the Atlantic and another tanker, the
Pevek in the Eastern and Southern Pacific.
T/I&E�P CRET
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Possible New Long-Term Plan for Communist China
State Planning Commission�the organization in charge of
long-range economic planning�is drawing up an eight-year
economic plan, the plan is to be
"formulated in two or three months." If this timetable .is
met, the new plan will be ready for presentation to the Na-
tional People's Congress, which is to meet late in March.
The regime claims to be three years ahead of schedule on
most of the targets of the existing Second Five-Year Plan
(1958-62). A new plan, covering the remaining three years
of the current plan and the Third Five-Year Plan ending in
1967, would be a logical development at this timel7
[Peiping has recently been building up Mao Tse-tung as
a political economist, arguing that his "discovery" of the
principles of high-speed economic development made possible
the "big leaps forward" in 1958 and 1959. A mid-March edi-
torial in the official People's Daily also asserts that the Com-
munist spirit of "selfless labor in total disregard for remunera-
tion" is sweeping the country and that such things "should be
incorporated into our plans." It is thus likely that any plan
presented at the congress will continue to press for the most
rapid possible economic advances at the lowest possible co!.9
'EL'he regime will probably use announcement of such a plan
to further the image of a rapidly industrializing China by point-
ing out that at the end of the next eight years China will be five
years ahead of the estimates it made before the "leap forward"
program. Agriculture will remain a weak spot, but by 1967
China will probably have tripled the present output of 13,000,000
tons of steel and may be able to increase sixfold its output of
electric power. China would then have reached in the space of
15 years levels of production in steel and electricity eaual to
those attained by the USSR in 25t� 30 vears:)
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Soviet Ecoro Aid f 1
yria
A high-level Soviet economic delegation and leading
UAR officials of the Syrian region are holding talks in
Cairo and Damascus which will probably lead to changes
in the 1957 Soviet-Syrian economic cooperation agreement.
The Soviet five-man delegation, headed by a deputy chair-
man of the USSR's committee on foreign economic relations,
Upparently has come to the UAR in response to complaints
from Vice President Amir, Nasir's viceroy in Syria, that
Moscow is not adequately fulfilling its economic aid com-
mitments in Syrie Cairo in recent months has taken steps
to speed up economic activity there in conjunction with Nasir's
plans to coordinate the economic development programs of
both regions of the UAR.
The original Soviet-Syrian agreement provided for an
estimated $150,000,000 in Soviet long-term credits to be
used to finance irrigation and hydroelectric power projects,
transportation facilities, and geophysical surveys. The
major project envisaged under the agreement is a dam, a-
long with a power station and irrigation system, on the
Euphrates River. Thus far, however, Soviet activity under
the agreement has been limited largely to survey and plan-
ning work. Only about $20,000,000 of the Soviet credit has
been drawn to date, in part because of inaction in Damascus.
The USSR's favorable response to a renegotiation of the
Syrian agreement underscores Moscow's willingness to con-
tinue extending economic aid to the UAR despite political
frictions. It is probably also intended to allay Nasir's sus-
picions that Moscow is behind Arab Communists' efforts to
regain an independent status for Syria.
The revised agreement probably will cancel some of
the formerly scheduled projects and provide for others, per-
haps of an industrial nature. The Soviet Union may also be
planning to cifer new aid credits.
With the exception of almost $20,000,000 in economic aid
from Czechoslovakia, other bloc economic credits to Syria
have been of little consequence. The bloc has, however, sup-
plied the Syrian region with more than $200,000,000 in military
assistance.
G R E
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II. ASIA-AFRICA
Election of New Chairman Further Divides Japanese
Socialist Party
The Japanese Socialist party (JSP), which late last year
lost a fifth of its Diet members in a policy dispute, faces addi-
tional withdrawals following Inejiro Asanuma's narrow victory
in a showdown election for party chairman on 24 March,
Asanuma, who was Socialist secretary general, endorsed
Communist China's foreign policy during a visit to Peiping
in early 1959. His election consolidates leftist control of
the JSP, but it is not expected to change the party's basic
policy. The new chairman already has announced his inten-
tion to pursue the party's fight against ratification of the re-
vised US-Japanese security treaty.
The more far-reaching impact of the election, however,
probably will develop outside the JSP itself, within the ranks
of trade unions which are affiliated with Sohyo, Japan's larg-
est labor federation and the base of BP support. Labor
restiveness over the Socialists' decided shift to the left in
the past year had influenced Sohyo to support opportunistic,
right-of-center factionall leader Jotaro Kawakami for the party
chairmanship. His defeat may lead moderate elements in
many of the Sohyo-affiliated unions to switch their support to
the recently formed Democratic-Socialist party (DSP).
Although Kawakami is expected to remain in the Socialist
party, some of his supporters probably will join earlier "hard-
core" right-wing defectors in the DSP. This would strengthen
the DSP in the Diet, but it might induce the party to compromise
its moderate Socialist outlook in order to prevent the develop-
ment of factionalism in its own ranks.
C11
26 Mar 60
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III. THE WEST
French Nuclear Test Program
The second test,
is expected before 1 April.
time stated purpose of the second test is weapons research
of a fundamental nature applicable to any type of nuclear weap-
on. Despite the small yield expected, this test does not in it-
self demonstrate considerable pro
ment of tactical nuclear� weapons.
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West Germans Urge Integrated NATO Logistics System
[in a recent&onversation with Secretary of /Defense Gates,
West German Defense Minister Strauss called supply and
storage problems an increasingly serious obstacle to the
build-up of West Germany's armed forces. Strauss felt that,
if agreement cannot be reached in NATO on a Bonn proposal
for an integrated logistics system, West Germany would
have no alternative but to make bilateral arrangements with
other countries including non-NATO nations--an apparent
allusion to Spain. Otherwise, West Germany would be forced
to stop further military procurement and abandon its attempts
to meet NATO logistic requirements. The German proposal
Is the first item on the agenda for the 31 March - 1 April
NATO defense ministers' meetine
(American Embassy officials in Bonn believe that, even
allowing for possible German overestimation of logistic re-
quirements and of the difficulties in meeting them, Strauss
is still confronted with "unquestionably an enormous problem."
They believe that a NATO rejection of Bonn's proposals for
an integrated logistics system would sooner or later evoke the
consequences of which Strauss speaks. Since solutions outside
the NATO framework are "clearly unpalatable" to the Adenauer
government, the effect of a rejection would be to put the Fed-
eral Republic's military effort in a "deep freeze."7
(Under present NATO planning, which makes each nation
responsible for its own logistics, West Germany is required
to maintain sufficient military supplies for 30 days east of
the Rhine and for 60 days west of the river. Suitable land is
not available for this purpose or for needed additional air-
fields and maneuver areas. Bonn has concluded agreements
with France, the Netherlands, and Portugal to provide addi-
tional facilities, but believes that these arrangements are
not adequate and that a fully integrated NATO system is the
only feasible solution to the difficult command and control
problem which would arise in th7 event of hostilities.)
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Nemo, Nur'
THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Assistant for National Security Affairs
Scientific Adviser to the President
Director of the Budget
Director, Office of Civil and Defense Mobilization
Director, National Aeronautics and Space Administration
Special Assistant for Security Operations Coordination
Chairman, Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Executive Secretary, National Security Council
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Administration
The Counselor
Director, International Cooperation Administration
The Director of Intelligence and Research
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
Assistant Secretary of Defense for International Security Affairs
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Chairman, The Joint Chiefs of Staff
The Director, The Joint Staff
Chief of Staff, United States Army
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Commandant, United States Marine Corps
Assistant to Secretary of Defense for Special Operations
Director for Intelligence, The Joint Staff
Assistant Chief of Staff for Intelligence, Department of Army
Director of Naval Intelligence, Department of Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Department of Commerce
The Secretary of Commerce
Federal Bureau of Investigation
The Director
Atomic Energy Commission
The Chairman
National Security Agency
The Director
National Indications Center
The Director
CJJ!JDENTIAL
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