CENTRAL INTELLIGENCE BULLETIN - 1958/10/22

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02998391
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 17
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: October 22, 1958

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22 October 1958
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CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
NO CHANGE IN CLASS-
! DECLASSIFIED
CLASS. CHANGED TO: TS 3 C
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NEXT REVIEW DATE:
AU TH:
DATE.
REVIEWER:
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22 OCTOBER 1958
I. THE COMMUNIST BLOC
Taiwan Strait - Communist artillery
fire relatively light on 21 October;
Peiping scores new Nationalist talk
of recovering mainland.
East Germany - Discontented workers
seek relaxation of political controls. V)
II. ASIA-AFRICA
Tunisia - Bourguiba standing firm
against Nasir; UAR reported plotting
his assassination.
High-level Mg an military mission
to visit Egypt.
Indonesian Army to purchase more
bloc materiel.
Cyprus - Agreement sought for con-
ference between London, Ankara and
Athens; violence continues.
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0 Venezuela - Junta president expected to
resign this week.
()Bolivia - Government squelches right-
ist coup attempt.
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CENTRAL INTELLIGENCE BULLETIN
22 October 1958
DAILY BRIEF
9
I. THE COMMUNIST BLOC
Taiwan Strait situation: Communist artillery fire on
21 October was directed against all of the Nationalist-held
Islands in the Chinmen area but was relatively light.
At least one Chinese Communist submarine, two sub-
chasers, one LST� and one auxiliary vessel which were moved
closer to the offshore islands area from North and South China
bases during September have recently been withdrawn. The
number of Communist torpedo boats in the Strait area remains
unchanged, however.
Peiping's propaganda has begun to emphasize that the US
Is not in favor of turning over the offshore islands to the Com-
munists. Peiping also stresses that the Nationalists have re-
cently revived talk of recovering the mainland and "loudly clam-
ored" that the cease-fire was a "victory" for Taipei.
(Page 1) (Map)
East Germany: Ulbricht% relaxation of political controls
on physicians and college professors has stimulated discontent
among industrial workers who are considering work slowdowns
as a means of forcing the regime to make concessions to them.
If Ulbricht resists these pressures, he will greatly increase
workers' unrest and thus endanger the regime's economic goals;
if he grants concessions, he will encourage widespread popular
demands for further relaxation. (Page 3)
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1U1 ,LCHL-1.
II. ASIA-AFRICA
Tunisia-UAR: Bourguiba is continuing to maintain
his firm stand against Nasir and has expressed "certainty"
that other Arab leaders would "start following me after a
little." Bourguiba apparently believes that he has the sup-
port of Morocco and,
the Algerian rebels, Iraq, and Saudi Arabia are trying to
avoid exacerbating the dispute. Meanwhile, there are re-
ports of new UAR plots aimed against Bourguiba's life.
(Page 4)
Afghanistan-Egypt: A high-level Afghan military mis-
sion is scheduled to visit Eavot by way of Turkey in mid-
November.
Turkey has� long maintained a small military training
mission in Afghanistan. In Cairo, the Afghan mission will
probably seek information on UAR methods in assimilating
Soviet weapons and military doctrine.
Indonesia: The army's reluctant decision to purchase
$15,000,000 worth of Soviet engineering equipment is a
further example of the Indonesian armed forces' increas-
ing dependence on the bloc for materiel. The air force and
navy have already filled or contracted for the greater part
of their current military requirements through the bloc.
(Page 5)
Cyprus: NATO representatives of Greece, Turkey,
and IFTEIT are continuing their meetings with Secretary
General Spaak on the matter of holding an early high-level
conference concerning Cyprus and appear to have reached
accord on all issues except the number of neutral observers
to be invited. Brussels has been accepted as the conference
site. As violence on Cyprus continues, British officials es-
timate that EOKA is approaching its maximum potential for
terrorism. Nevertheless, they predict a. new truce be-
fore the end of this month. (Page 6)
22 Oct 58
DAILY BRIEF ii
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III. THE WEST
Venezuela: Junta President Larrazabal, under consid-
erable pressure within the government, is expected to resign
this week in order to fulfill legal electoral requirements in
running for the presidency in the election scheduled for late
November. The resultant adjustment in the junta and cabinet,
along with continued military suspicions of political alliances
and the apparent breakdown of interparty efforts to agree upon
a coalition candidate will increase the already high degree of
tension in Venezuela. (Page 7)
Bolivia: The moderate government of President Sues
on 21 October squelched a rightist coup with only a few cas-
ualties. Rightist plotting is endemic in Bolivia. The govern-
ment, which must implement stringent economic stabilization
measures, will probably exaggerate the threat in order to
bring closer together the clashing factions of the government
party. (Page 8)
22 Oct 58
DAILY BRIEF iii
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vise
I. THE COMMUNIST BLOC
Taiwan Strait Situation
Communist artillery fired about 3,300 rounds against the
Chinmens on 21 October. The heaviest firing occurred dur-
ing the afternoon, but no further details are available.
The Chinese Nationalist Ministry of Defense has announced
that eight Nationalist jet fighters and six Communist MIC4's
"tangled briefly" over the Taiwan Strait. No losses were re-
ported and no shootdowns claimed by the Nationalists. Al-
though there was extensive Communist air activity indicative
of large-scale air-to-air tactical training on 20 October�,
Communist pilots have not deviated from their practice of
defensive patrolling. The last air clash on 10 October is be-
lieved to have been initiated by the Nationalists.
At least one of the five submarines which moved from
Tsingtao to the Shanghai/Choushan Island area early in Sep-
tember has returned to the north and now is operating in the
Dairen area; several other vessels of the South China Fleet--
two subchasers, one LST, and one auxiliary vessel--which
moved to Swatow from the Canton area during September and
early October returned to the Canton area on 16 October,
Despite these with-
drawals from the Taiwan Strait area, motor torpedo boat
strength, which has been built up considerably since the be-
ginning of the crisis, remains unchanged.
Peiping propaganda has begun to emphasize that the US
is not in favor of turning over the offshore islands to the Com-
munists. A People's Daily editorial on 21 October states that
the US and Nationalist China are playing "a duet," with the US
expressing its desire to "reduce the Chiang army on Chinmen
and Matsu" while the Nationalists re-emphasize the importance
of maintaining troops on Chinmen and the other offshore islands.
The editorial states that if the Nationalists continue to reject
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Communist troop
uuu strength
Ann Nationalist troop
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1�f Piston fighter
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if Piston light bomber
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SELECTED AIRFIELDS INDICATED IN BOLD TYPE
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16,000 , i
SOUTH CHINA SEA
ghai
OU SHAN I.
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negotiations with the Communists and "insist on obeying US
orders, we are not to be blamed for taking all the necessary
measures."
The People's Daily editorial also states that the Nation-
alists have become "cocky again" and that they have recently
revived talk of recovering the mainland. Complaining that the
Nationalists have "loudly clamored" that the cease-fire was a
"victory" for Taipei, the editorial points to the Nationalist
violation of the condition for suspension of shelling and declares
"let them then see what benefit the introduction of US naval ves-
sels for escort really brings them.
On 21 October, Peiping issued its "38th serious warning"
alleging violation of Communist China's territorial waters by
two US naval vessels in the Pingtan and Matsu area.
The Chinese Nationalists have canceled resupply missions
following the Chinese Communist resumption of fire and, since
Chinmen supply stocks were built up during the 14-day cease-
fire, no urgent need is seen for crash programs of air and sea
resupply. The Nationalists are planning to reinstitute air cover
for convoys as necessary, and patrol flights are no longer un-
der orders to remain 20 miles from the mainland coast. No
penetration of the China mainland, however, is authorized ex-
cept as instructed.
it was necessary to keep the Taiwan
conom stable as well as to keep the military forces strong.
Nationalist China probably would need an extra $30,000,-
000 to $50,000,000 in economic aid this year from the United
States because of the Strait conflict.
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Concessions to East German Doctors Cause Unrest
Among Industrial Workers
East German industrial workers, described by a party of-
ficial as "tired of too many promises and too few results," have
been greatly impressed by the success achieved by the medical
profession in forcing the regime to relax its hard policies
toward doctors, Work-
ers now reason that they are in a better position than the doc-
tors to force concessions from party boss Ulbricht.
Under these circumstances, the East German regime faces
the prospect ,of failing to achieve its economic goals unless
the workers are, satisfied. Giving in to the workers, however,
would probably result in even more widespread popular de-
mands for the relaxation of internal policies and even greater
unrest.
the con-
cessions granted the medical profession were not merely a
tactical move but a new policy which will be extended to other
members of the intelligentsia. Doctors and dentists are being
freed from political pressure and are to be allowed to travel
to meetings in the West, continue private medical practice,
and send their children to universities outside East Germany.
A special politburo commission has been set up with instruc-
tions to make "all possible concessions" to effect a speedy im-
provement of the "catastrophic" medical situation, caused by
the flight of doctors to the West. A similar commission has
been established for schools.
The extensive character of these concessions reportedly
startled some "rabid Communists" on the medical commission,
who privately predicted that new problems would be created in
other areas of East German life.
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Nere *me
IL ASIA-AFRICA
Tunisia-UAR Dispute
Tunisian President Bourguiba is continuing to push his case
against the United Arab Republic despite the concerted effort of
Cairo propaganda media to discredit him and isolate him from
the. Tunisian people, At a meeting with the American ambassa-
dor in Tunis on 19 October, Bourguiba exuded confidence that the
Tunisian people "unanimously" support his position and that "af-
ter a little" other Arab countries which now do not "dare to fol-
low me" would start to do so. Bourguibaes fighting mood was
further revealed by his expressed determination to prosecute
shortly individuals implicated in the plot against his life exposed
last March--a plot to which the UAR and Bourguiba's exiled
rival, Salah ben Youssef, were linked.
The Tunisian leader expressed particular confidence that
the Algerian rebel regime and the Moroccans would maintain
solidarity with him. The fundamental desire on the part of
both these elements to preserve at least the appearance of Ma-
ghrebian unity will probably preclude any further public criticism
of Tunisia by either and evoke cautious gestures of friendship.
Both, however, are clearly distressed by the dilemma in which
Bourguibais action has placed them and will be careful to avoid
prejudicing their own relations with Nasir.
a desire on
the part of the Algerian rebels, Iraq, and Saudi Arabia to avoid
taking sides in the Tunisia-UAR dispute. Iraqi Foreign Minister
Jumard is reported to have apologized to Tunisia for recent at-
tacks broadcast by Baghdad radio.
Meanwhile, unconfirmed reports emanating from Libya
state that on 15 October Salah ben Youssers lieutenant in Tripoli
received from the UAR Embassy there money and a list estab-
lishing a priority for the liquidation of key Tunisian officials.
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L:Idonesian Army Purchases Soviet Engineering Equipment
The Indonesian Government has signed an agreement
with the Soviet Union for the purchase of engineering equip-
ment valued at $15,000,000 which will be used by the army.
the materiel will tom:
-
prise chiefly road-building equipment, water-purifying sets,
and tools. The purchase will be made under terms of the
$100,000,000 Soviet loan which Indonesia ratified b.) Febru.
aky 1958.
Brig. Gen. Djatikusumo, chief of the army engineers,
is reported to have signed the agreement with reluctance on
orders from the Indonesian Government in September 1958.
In July 1958, Djatikusumo had approached the American army
attache for the sale of either civil or military construction
equipment. Some of the items recently purchased from the
USSR were also included in the master list of military re-
quirements which the Indonesian Government presented to
the United States in July 1957.
This purchase is a further instance of the Indonesian
armed forces' increasing dependence on the bloc for materi-
el. The Indonesian Navy and, to an even greater extent, the
air force have already filled a considerable part of their
current military requirements through contracts with the
bloc. Thus far, the Indonesian armed forces have concluded
arms deals with the Communist bloc amounting to at least
$125,000,000 and possibly as much as $200,000,000.
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Cyprus
Final agreement on a high-level Cyprus conference of
British, Greek, Turkish and Cypriot representatives is be-
ing delayed only by differences over the number of neutral
observers. All concerned are agreed that NATO Secretary
General Spaak and an American observer should attend;
Greece alone insists that at least two other neutral nations,
presumably Italy and France, be represented. Such a con-
ference would probably be convened in November in Brussels,
Spaak, to whom most of the credit is due for the progress
thus far, favors a two-week meeting to establish the broad
principles for agreement to be followed by lower-level tech-
nical negotiations on details.
Agreement by London, Athens, and Ankara to discuss
the problem at such a conference will remove, temporarily
at least, the serious strain that was developing within NATO.
The major substantive problems which the talks will attempt
to resolve, however, will require a maximum effort at com-
promise if the schisms between Greece and Turkey and be-
tween Britain and Greece are to be bridged.
On Cyprus EOKA terrorists have stepped up their cam-
paign of violence, killing five persons, including three Turk-
ish Cypriots, within a 48-hour period and increasing bomb
attacks, shootings, arson, and sabotage. British officials
on Cyprus estimate that, while EOKA may attempt one more
major drive, it has about reached the limit of its potential
for sustained violence. They predict a new truce, probably
by the end of October, especially if agreement is reached in
Paris to hold a conference, Regardless of any political set-
tlement, however, they believe EOKA must be destroyed to
remove the constant threat of renewed violence and intimida-
tion.
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III. THE WEST
Impending Shake-up in the Venezuelan Government
Junta President Larrazabal's acceptance of the presiden-
tial nomination by the Democratic Republican Union (URD),
probably the third party in strength, and his expected resig-
nation this week will increase the high degree of tension in
Venezuela. A majority of the cabinet reportedly have offered
their resignations and have demanded that Larrazabal resign,
as is required under the electoral law. Larrazabal's resigna-
tion and the resulting adjustments in the cabinet and junta,
which will probably continue to be pro-Larrazabal, were ap-
parently planned as early as mid-September to promote his
candidacy.
Larrazabal's formal entry into the presidential race fol-
lows recent rumors of military plotting and probably spells
the end of the political unity program which has been identified
in the public mind with the return of normal government. The
Christian Democratic COPEI, probably the second largest party,
opposes Admiral Larrazabal as a military candidate and has
nominated its chief, Rafael Caldera. Democratic Action (AD)--
the largest party, toward which the military has long been hos-
tile--has reportedly been negotiating with the URD to present
Larrazabal as a joint candidate, although AD previously nom-
inated its chief, Romulo Betancourt, The AD's ultimate en-
dorsement of Larrazabal, who also has Communist backing,
would increase the possibility of another military coup attempt
in the event of Larrazabal's victory.
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'too
Bolivian Government Says Rightist Plot Quashed
The moderate government of President Siles has an-
nounced that it put down a plot of the rightist Socialist Falange
which broke out in the capital city of La Paz early on 21 Octo-
ber. The rest of the country was reported quiet.
At the present time the government must implement new
and stringent economic stabilization measures if it is to re-
ceive new foreign credits to rectify its foreign exchange def-
icit. The left wing of the Nationalist Revolutionary Movement,
the government party, opposes some of the required meas-
ures. A definitive split in the government party would be
likely to result in considerable violence since most of the ar-
my and police incline toward the right wing of the party while
most civilian militia incline toward the left wing.
In the past the government has on several occasions exag-
gerated the danger of rightist plotting for the purpose of per-
suading clashing factions within the government party to close
ranks. Any suggestion of a rightist coup has been enough to
persuade the clashing factions to compromise their differences
and present a united front.
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WOW IIJLIN1 I IIAL
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
Office of Defense and Civilian Mobilization
Special Assistant for Security Operations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Special Adviser to the President
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 Economic Affairs
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary 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
The Secretary of the Army
The Secretary of the Navy
The Secretary of the Air Force
The Chairman, The Joint Chiefs of Staff
Commandant, United States Marine Corps
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
Assistant to Secretary of Defense for Special Operations
Director for Intelligence, The Joint Staff
Assistant Chief of Staff for Intelligence, Department of the Army
Director of Naval Intelligence, Department of the Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Department of the Interior
The Secretary of the Interior
Federal Bureau of Investigation
The Director
Atomic Energy Commission
The Chairman
National Security Agency
The Director
National Indications Center
The Director
United States Information Agency
The Director
CONFIDENTIAL
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