CENTRAL INTELLIGENCE BULLETIN - 1960/12/14

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02993700
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: December 14, 1960

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14 December 1960
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LATE ITEM
*Ethiopia (As of 0500 EST): The Ethiopian Imperial Body-
guard, in a surprise move early this morning sealed off the palace
and key transport and communications installations in Addis Ababa.
Leaders of the 6, 000-man elite military force have given no ex-
planation so far for the move, nor have the instigators been identi -
fled. �,No violence or crowd reaction was reported, and local
business activity remained normal. The Emperor, who has
been away from Ethiopia for several weeks on a tour of West Africa,
is now in Brazil, and the government is nominally in the hands of
the inexperienced crown prince.
The Bodyguard's action appears to be primarily a demon-
stration of its long-standing dissatisfaction with present salaries
�and privileges rather than an effort to overturn Emperor Haile
Selassie's regime or to forstall a possible coup by others against
the throne. However, the Bodyguard's action may have serious
repercussions if the Emperor decides to take drastic action
apparent affront to his unlimited power0
n m d-November the Bodygu.ard officers reportedly were
about to voice their grievances to the Emperor but were dissuaded
by senior officers who promised to intercede in their behalf,. The
Bodyguard dissenters claimed to have the support of many army
and police officers, but united action by them would be difficult.
There is intense rivally among Ethiopia's Bodyguard, 24, O00 man
army and 35,000-man security forces as well as friction within
each service between older officers who support traditional
leaders and theyounger men who have attended foreign or Ethiopian
military schools. Furthermore, there is no suitable substitute
for the Emperor who could h id the disparate country together.
The logical successor, the crown prince, is not believed to have
any significant political strength, and the following of any other
important political leader is limited to provincial or factional
support,.
A
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14 DECEMBER 1960
L THE COMMUNIST BLOC
II. ASIA-AFRICA
UAR offers substantial military and finan-
cial aid to Somali Republic.
Central African Republic and USSR agree
to exchange ambassadors; bloc's first
diplomatic breakthrough in former French
Equatorial Africa.
Japanese Government raises further ob-
stacles to settling its obligation to US for
postwar aid.
Congo--Relations between 1Casavubu gov-
ernment and Tshombe's Katanga regime
may be further strained by formation in
Leopoldville of "liberation committee" to
bring Katanga back into Congo.
Algeria--De Gaulle reportedly intends to
punish European leaders of riots; to make
speech to French people today.
The situation in Laos. 0
III. THE WEST
()West German - Soviet trade negotiations
collapse following Soviet rejection of
Bonn's efforts to include Berlin in agree-
ment.
LATE ITEM
�Ethiopia-Imperial Bodyguard seals off
palace and key installations in Addis
Ababa, evidently as a show of strength
to dramatize grievances during
Emperor's absence.
SECRET
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CENTRAL INTELLIGENCE BULLETIN
14 December 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
IL ASIA-AFRICA
Somali Republic - UAR: The UAR, which is engaged in an
extensive campaign to extend its influence in the Horn of Africa,
apparently has offered substantial military and financial assist-
ance to the Somali Republic. Somali Premier Abdirascid stated
to parliament on 6 December that Nasir had offered to give a
"certain number" of aircraft and other military equipment, to
grant loans for public works totaling eleven to fourteen million�
dollars, and to guarantee a market for Somali exports. The
UAR may also have agreed to subsidize up to seven Somali dip-
lomatic missions. (Page I)
Central African Republic - USSR: The announcement by
the Central African Republic (CAR) and the USSR that they have
agreed to exchange ambassadors "in the near future" marks the
Soviet bloc's first diplomatic breakthrough in former French
Equatorial Africa. It is also the first formal commitment by
any African state of the French Community to accept a Soviet
embassy. The economic weaknesses of the CAR and the other
three now independent states of former French Equatorial Africa,
along with the inexperience and instability of their governments,
offer possibilities for a rapid expansion of activities throughout
the area. The CARTs proximity to the Republic of the Congo--
particularly Orientale Province--and the existence of considerable
pro- Lumumba sentiment in the CAR could facilitate contacts be-
tween the bloc and Lumumba sumorters in Stanlevville
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14 DECEMBER 1960
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Japan: (_The Japanese Government, despite recent requests
from US officials for cooperation in relieving the American dol-
lar outflow, is raising further obstacles to settling its obligation
�o the United States for postwar aid. Although the Jap nese have
een requested to repay less than one third of the $2 billion total
bligation, Foreign Minister Kosaka has asked the US to provide
legal justification for its claim in order to facilitate passage in
the Diet-j
(Page 2)
Congo: The 12 December formation in Leopoldville of a
"liberation committee" to bring Katanga back into the Congo may
further strain relations between the Kasavubu government and the
secessionist regime of Moise Tshombe. Despite their mutual antip-
athy to, Lumurnba the Leopoldville and Elisabethville govern-
rnents have failed to resolve differences concerning a Congo con-
federation to include Katanga. Reports that the Katanga libera-
tion committee was formed with Kasavubu's and Mobutu's concur-
rence will further impair prospects for a reconciliation. The
committee is dominated by representatives of the Baluba
men now in revolt against Tshombe in northern Katanga.
Cairo is attempting
to determine whether its U14- battalion in Equateur Province--
whose imminent withdrawal has already been announced by the
UAR--might better be used to supply pro- Lumumba forces in
Stanlevville
"it will be possible for us to
send any assistance in weapons and ammunition. . some ten
kilometers into Orientale Province without attr, cting attention."
Algeria-France: An uneasy calm prevails in Algiers and
Ot" ,./117
Oran after four days of rioting. Army commanders have made t--"/
plain their determination to put down any further disorders, 712 ,
De Gaulle reportedly intends to punish severely the European 3A--1-,
leaders of the riots. The funerals of those killed during the dis- 7P4
turbances are being held and could spark further violence. The
14 Dec 60
DAILY BRIEF ii
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killing of Moslems will accelerate Afro-Asian efforts to secure
UN intervention in Algeria. Rebel Premier Ferhat Abbas has
sent a protest to Secretary General Hammarskjold, and the
Moroccan Government has officially protested to Paris. A
sense of shock was evident in metropolitan France over the
intensity of the Moslem demonstrations. De Gaulle returned
to France last night, edly will make a speech to the
nation this morning. (Page 3)
*Laos: he status of Vientiane is still in question as troops
under Captain Kong Le attempt to repulse the attack begun by
General Phoumits forces on 13 December. Phoumi's troops
apparently held the major portion of the city late on 13 December, �Ajx.tx./
but were receiving mortar and artillery fire from the airfield
northwest of the city. Retention of the airfield by Kong Le would ' ei
permit the continuej iA Sinn-Snvt blew nirlift of supplies unless
interdicted by fire:j
In addition to the continuing Soviet airlift, at least two North
Vietnamese transports are to fly to Dien Bien Phu, near the Lao-
tian border, on 14 December with "cargo and personnel to super-
vise," suggesting stepped-up North Vietnamese logistical support
for Pathet Lao forces in Phong Saly Province. Additional bloc
logistical support is suggested by the scheduling of five IL-14s--
also on 14 December--from Nanning to Hanoi.
Hanoi, Peiping, and Mosocw are increasing propaganda charging
"US intervention" in Laos. While this propaganda may represent
an effort to justify more open support for Laotian leftists, it also
could be intended to stimulate international fear about develop-
ments in Laos in the hope that some nations will support a bloc
effort to get a negotiated Laotian settlement that would include
the Communists in the government.
Meanwhile, Phoumi's Savannakhet Revolutionary Committee
has formed a provisional government with Prince Boun Oum as
premier and Phoumi as deputy premier and minister of defense.
The new cabinet is strongly rightist in coloration and in effect
14 Dec 60
DAILY BRIEF iii
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represents an attempt to return to the situation before Knntr Le'R
coup on 9 August.
III. THE WEST
West Germany - USSR: Bonn's insistence that West Berlin
be included in the new three-year trade pact with the USSR has
resulted in a categorical rejection by the Soviet ambassador.
�Although Bonn has from the beginning requested that the USSR "cedctc,i
Include West Berlin only at the last minute did Bonn appar-
ently make the signing of the agreement conditional on this de-
mand. According to press reports, the Soviet trade negotiators r 2}
are preparing to leave Bonn, and Foreign Minister Brentano
stated on 12 December that the Federal Republic would continue
to try to reach agreement through diplomatic channels. Mean-
while, Bonn has also been insisting that West Berlin and West
Germany be treated as one "currency area" in present nego-
tiations with East Germany on a new interzonal trade agreement,
and the East Germans have noLtoslate_refaserLto_continue the
talks within this framework. Page 4)
14 Dec 60
DAILY BRIEF iv
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UAR Extends Aid to Somali Republic
The UAR, which is engaged in an energetic campaign to
extend its influence in the Horn of Africa, apparently has of-
fered substantial military and financial assistance to the So-
mali Republic, Somali Premier Abdirascid told his parlia-
ment on 6 December that during his recent visit to Cairo,
Nasir offered to give a "certain number" of aircraft and other
military equipment and to grant loans for public works total-
ing eleven to fourteen million dollars. According to a formal
accord published on 11 December, the UAR has also agreed
to guarantee a market for bananas and other Somali exports
in exchange for a Somali commitment to purchase various
manufactured goods in Cairo. In addition, the UAR reported-
ly offered to pay the costs of up to seven diplomatic missions
for the poverty-stricken Somalis.
The agreements with Cairo will provide the Somali Re-
public with its first aid from a non-Western source. Hereto-
fore, assistance has been furnished by the United,States; Britain,
and Italy�the latter having committed itself to increased short-
term financial support only last month. The accords with the
UAR are a further indication of the Somali willingness to seek
assistance from all sources and will furnish Cairo with an en-
larged foothold in the area.
TIAL
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Japan Agairi Demurs on Paying Aid Obligation to US
The Japanese Government, despite appeals by American of-
ficiatsJor cooperation in relieving the drain of dollars from
the United States, is raising further obstacles in its six-year
effort to delay a settlement for economic aid received from
the US through the Government and Relief in Occupied Areas
(GARIOA) program. Japan is being asked to pay approximately
$650,000,000 of the $2,000,000,000,4803taue provided by(:
the US immediately after World War II. The payment formula
proposed by the US is similar to those accepted by Italy and
West Germany.-3
(The Japanese first deferred settlement on the grounds that
they had assumed the assistance had been extended on a grant
basis. More recently, they have objected because of an alleged
political liability which it poses for the government. Although
high Japanese officials in the Kishi cabinet had previously ac-
knowledged a legal obligation and had commenced negotiations
for a settlement,
the US must demonstrate legal justi-
fication for the claim and present a detailed computation of the
amount of aid provided if any agreement reached is to have "rea-
sonable expectation of passage in the Diet,"]
the Ikeda government will
not make known its position on settling the GARIOA obligation
until the policies of the new US administration become apparent.
He referred, however, to a proposal made by former Prime
Minister Kishi that any Japanese payment be utilized for coop-
erative economic assistance to Southeast Asia and for exchange-
of-persons programs between the US and Japan. It seems likely
that Japan's reluctance to settle this obligation, as well as to ac-
celerate its trade liberalization program and expand economic
assistance to underdeveloped countries, will be strengthened by
fears that US "dollar conservation" measures will not assure the
income necessary to implement these steps)
CONFIDENTIAL
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Uneasy Calm in Algeria
An uneasy calm prevails in Algiers and Oran after four
days of rioting. Public transportation is beginning to func-
tion again, and some downtown shops are open. Army com-
manders have made clear their determination to put down any
further disorders, and a 13 December attempt by Europeans
to march on the Moslem sector of Oran was repulsed by secu-
rity police. Army units in the city of Algiers have been rein-
forced and now number approximately 25,000. Some 40 Euro-
peans arrested during the first day have been brought before
an Algiers court.
The funerals of those killed during the disturbances are
being held, and further violence might erupt among either the
Moslem or European crowds attending. The killing of Moslems--
Delegate-General Morin has admitted that at least 45 were
killed in the Algiers area--will accelerate Afro-Asian efforts
to secure UN intervention in Algeria, and the support shown
for the National Liberation Front by the Moslem rioters will
no doubt be used to undercut the long-standing French argu-
ment that the front represents only a small minority, of the
Moslem population.
Rebel Premier Ferhat Abbas, in a 12 December press con-
ference, again rejected De Gaulle's plan to reorganize the pub-
lic powers in Algeria, and soon afterward he sent a protest to
Secretary General Hammarskjold regarding the killing of Mos-
lems. The Moroccan Government has also sent a formal pro-
test to Paris.
A sense of shock is evident in metropolitan France following
the Moslem demonstrations in Algeria. French security forces
continue to round up known rightist supporters t
in France on the return of President de Gaulle.
aid De Gaulle cut one day from his Algerian
trip to make a "solemn appeal" to the nation and Algeria this
morning. There is no indication that De Gaulle has been dis-
suaded from his earlier plan for a national referendum on 8 Jan-
uary and the creation of an interim Algerian government with
local autonomy, but he is reportedly angry over the rioting and
may crack down on the leaders of both European and Moslem
demonstrations.
14 Dec 60
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CENTRAI INTFI I inFtql-F RI II I PTiki
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Bonn-Soviet Trade Talks Collapse
Bonn's insistence that West Berlin be included in the new
three-year trade pact with the USSR has resulted in a cate-
gorical rejection by the Soviet ambassador. Although Bonn
�has from the beginning requested that the USSR include West
Berlin, the decision to make signing of the agreement condi-
tional on this demand apparently was made only at the last
minute. According to press reports, the Soviet trade nego-
tiators are preparing to leave Bonn. Foreign Minister Bren-
tano stated on 12 December that the Federal Republic would
continue to try to reach agreement through diplomatic channels.
CBonn's chief negotiator, Hager Van Scherpenberg, told
American officials that Soviet negotiators had countered his
attempt to include Berlin--either by an exchange of letters or
by an oral statement�by arguing that Moscow had not author-
ized discussion of political questions-3_ The three-year trade
pact concluded in 1958, which expires on 31 December, did not
specifically include West Berlin, but the USSR has tacitly al-
lowed the city's trade to be treated as part of the West German
"currency area."
LBonn was earlier reported to favor dragging out negotia-
tions as long as possible in the belief that the Soviet desire to
sell large quantities of oil and other products to West Germany
in return for German industrial goods would facilitate the in-
clusion of Berlin in the treaty. Van Scherpenberg reportedly
told members of the Bundestag Foreign Affairs Committee on
1 December that if the USSR threatened to break off, negotiations
over the Berlin issue, Bonn would have to back down. 1 In late
October, however, Brentano indicated that at the last minute
Bonn would demand that the agreement also apply to West Ber-
lin and would insist on new negotiations if the USSR refused.
Berlin leaders are strongly urging Bonn not to yield to the
USSR on this issue. West Berlin Mayor Brandt stated on 11
December that "a failure to clarify. Berlin's part in the new trade
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agreement would signify German agreement to a substantial
part of the Soviet free-city proposal." Brandt stressed that
"prestige" issues such as a formal "Berlin clause" in the
treaty itself are not important as long as the present method
of handling the city's trade is not changed. Bonn has announced
that lack of an agreement would not preclude trade between the
two countries, which can continue on the basis of individual or-
ders.
Meanwhile, Bonn has also been insisting that West Berlin
and West Germany be treated as one "currency area" in pres-
ent negotiations with East Germany on a new interzonal trade
agreement, and the East Germans have not to date refused to
continue the talks within this framework.
--SEeRET--
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