CENTRAL INTELLIGENCE BULLETIN - 1958/12/27
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
03000010
Release Decision:
RIPPUB
Original Classification:
U
Document Page Count:
21
Document Creation Date:
January 27, 2020
Document Release Date:
January 30, 2020
Sequence Number:
Case Number:
Publication Date:
December 27, 1958
File:
Attachment | Size |
---|---|
CENTRAL INTELLIGENCE BULL[15777446].pdf | 968.33 KB |
Body:
Approved for Release: 2020/01/23 C03000010
3.5(c)
3.3(h)(2)
27 December 1958
Copy No. C
CENTRAL
)0
INTELLIGENCE
BULLETIN
DOCUMENT NO,
NO CHANCE IN C1/7,
DECLASS;FIE0
CI A:3S CHANGE-E.) TO�
t... _
H')Za2
nATE
REVIEWF
izz/zrzrzrz
Approved for Release: 2020/01/2(6(0606100
Approved for Release: 2020/01/23 C03000010
..11,MO.Mm. �
,001144,,
Approved Trivre'rezr. 21323/71723 C03000010
T()11 CPCDCT
Approved for Release: 2020/01/23 C03000010
,
27 DECEMBER 1958
I. THE COMMUNIST BLOC
Shelepin's appointment as chief of
Soviet security police intended to
emphasize party control.
USSR - Gromyko unyielding on Ber-
lin and pessimistic on prospects for
agreement at Geneva.
GMIC statement on 24 December ac-
tivity at Tyura Tam Missile T
Range (naae I. Daily Brief)
II. ASIA-AFRICA
Iraqi division commanders, previous-
ly reported planning to oust sim
meeting in Baghdad., 4
Greek and Turkish foreign ministers
reach measure of agreement on frame-
work of Cyprus settlement.
0
New Moroccan Government faces
Berber resistance and foreign bases
issues.
0 South Korea - Rhee uses strongarm
tactics to pass legislation restrict-
ing civil liberties; police break up
demonstration in Pusan.
0 Re-election of leftist mayor In Singa-
pore underscores extremist control
of city's affairs.
III. THE WEST
Cuban rebels intensify and widen ac-
tivity; put Santiago, second largest
city, under heavy pressure.
Return of ex-President Arias is new
threat to stability of De la Guardia ad-
ministration in Panama.
� Minority Icelandic Government will
probably serve as caretaker until
spring elections.
TOP SECRET
Approved for Release: 2020/01/23 C03000010
Approved for Release: 2020/01/23 C03000010
*aro
CENTRAL INTELLIGENCE BULLETIN
Di<
27 December 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
*USSR --.New security chief: The selection of Aleksandr
Shelepin to head the Soviet security organization (KGB) was
probably intended to emphasize party control over the secret
police. Shelepin has most recently been in charge of person-
nel matters in the party apparatus under Ktirushchev; until
April 1958 he was head of the Komsomol, the Soviet youth or-
ganization. The Supreme Soviet announcement made no men-
tion of a new position for Serov. (Page 1)
*USSR � Gromyko speech: In a speech to the Supreme So-
viet on 25 December, Foreign Minister Gromyko struck a
firm and unyielding tone on both Berlin and the Geneva nuclear
test talks. He reiterated Khrushchev's warnings that if the
West rejects the Soviet proposal for converting West Berlin into
a demilitarized free city, the USSR will transfer control over
Allied access to the East Germans. In a further effort to
maintain a crisis atmosphere on this issue, Gromyko said
West Berlin "may become a second Sarajevo." His remarks
on the prospects for agreement at Geneva were very pes-
simistic. He charged the United States and Britain have de-
cided to prevent an agreement and attacked the West's insis-
tence on linking extension of a one-year test suspension to
progress on other disarmament measures, and Western
views on decision-making procedures in the control organ.
He warned that no agreement will be possible if the West
does not abandon these "invalid conditions."
TOP SECRET
A
'Approved for Release: 2020/01/23 C03000010
;4110
0
K-
Soviet missile activity: Guided Missile Intelligence
Committee statement of 1500 EST, 24 December 1958:
At approximately 1100 EST, 24 December, the So-
viets launched a vehicle on the Tyura Tam Missile Test
Range, believed to be an ICBM test vehicle, but there are
indications that it failed to reach the impact area in the
vicinity of the Kamchatka peninsula.
It is noted that the last successful ICBM was in late
May and there was a probable unsuccessful ICBM in mid-
July.
It may be several days before sufficient data is avail-
able to state definitely the degree of success achieved or,
perhaps, this data will never be known, as is the p
situation with the last three Soviet space ventures. 7P-Ilf]
II. ASIA-AFRICA
*Iraq: The four Iraqi divisional commanders, who have
been reported planning to oust Prime Minister Qasim, are
now meetina in Flaplirlad
The ostensible reason for the
meeting, scheduled to last until 30 December, is probably
the Iraqi army maneuvers schecbilec to e held nearHab
baniyah on 29-30 December.
(Page 2)
Cyprus: The Greek and Turkish foreign ministers have
apparently reached a wide measure a agreement on the gen-
eral framework of a Cyprus settlement, which would be
based on guaranteed independence. Further progress now
depends largely on Greek Premier Karamanlis' ability to
accept such a solution despite expected strong criticism from
his political opposition in Athens and possibly from Arch-
bishop Makarios. On Cyprus, EOKA has offered to cease
all terrorist activities provided the British reciprocate. The
27 Dec 58
DAILY BRIEF
71,P�SEeRE-F
AAVrgeFfOrkefeL;e7EiOTOTTZEHECOOT6/
Approved for Release: 2020/01/23 C03000010
VOW
government recently released over 500 detainees and
lifted some long-standing curfews on the movement of
Greek Cypritots. (Page 4)
ri
Morocco: King Mohamed V ended Morocco's month-
long government crisis on 24 December by investing a
broadly representative cabinet under Abdallah Ibrahim, a
leader of the Istiqlal party's left wing. The new govern-
ment appears to reflect more adequately than its predeces-
sors the major elements of Moroccan society and thus may
be able to deal more successfully with the pressing problem
of Berber tribal dissidence.
New difficulties with Vance will probably follow if
the new leaders extetid more energetic support t o the Al-
gerian rebels or move to expropriate French-held agri-
cultural lands. They can be expected to renew at an
early date Moroccan pressure for the evacuation of French
and Spanish troops and the American air bases.
(Page 5)
*South Korea: The action taken by the Rhee administra-
tion in forcefully evicting opposition Democrats and inde-
pendents from the South Korean National Assembly in or-
der to ram through a bill designed to curtail civil liberties
can be expected to provo and resentment
throughout South Korea, The South Korean
police, who have been al ent popular demon-
strations, broke up a protest meeting in Pusan on 25
December. The South Korean armed forces have been
instructed by Minister of Defense Kim Chong-yol to re-
main aloof. (Page 7)
Singapore: There-election on 23 December of
Singapore's left wing mayor, an official of the Commu-
nist-infiltrated People's Action party, underscores the
likelihood that extreme leftists will control the Singapore
Government following the achievement of internal self-
rule next year. (Page 8)
27 Dec 58
DAILY BRIEF
--T-OP�SEGRET
111
79/
AApproved for Release: 2020/01/23 C03000010
, �
ttpproved for Release: 2020/723 C03000010
�
III. THE WEST
Cuba: Rebel activity is intensifying and spreading.
An attack on a sugar mill in Matanzas province is the
first outbreak of such activity in this area. The govern-
ment has placed all Its security forces on a full alert
status at least until after 1 January. Meanwhile, the
Cuban army commander in besieged Santiago, the second
largest city, is under pressure either to surrender the
city or declare it an o en city in order to avert further
bloodshed. r (Page 9) (Map)
Panama: A new threat to political stability has
ariseiTiTIT-the return of ex-President Arnulfo Arias and
his strong condemnation of the government and the Nation-
al Guard leaders in his initial press interview. Various
factions critical of President de la Guardia are seeking the
collaboration of Arias who has long been adept at stirring
up mob action and apparently now regards conditions as
ripe for his return to power. (Page 10)
*Iceland: The minority government of Social Demo-
cratic Prime Minister Emil Jonsson formed on 23 Decem-
ber is expected to be kept in office by Conservative parlia-
mentary support until new elections are held, probably
next spring. The new government is said to have an agree-
ment with the Conservatives on immediate anti-inflation
measures, but may encounter serious difficulties in mak-
ing these measures effective because of opposition from the
Communists, who though no longer represented in the cabi-
net, still dominate the trade union movement.
(Page 11)
IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding Week)
SNIE 85/1-58. Developments in Cuba since mird-No-
vember. 16 December 1958.
27 Dec 58 DAILY BRIEF
--TOP-SEGREz
AApproved for Release: 2020/01/23 003000010
A
ri d. F. 1.4 rr4
Approved for Release: 2020/01/23 C03000010
I. THE COMMUNIST BLOC
Party Personnel Specialist Appointed Soviet Secret
Police Chief
The appointment of party official Aleksandr Shelepin
on 25 December to succeed ousted Soviet secret police
chief Serov is probably intended to make the security
forces (KGB) more immediately responsive to party con-
trol. Shelepin, a personnel specialist without experience
in secret police work, may be charged with carrying out
a shake-up in the KGB staff, possibly including a reor-
ganization of the security forces. This would be in line
with the inteltion Khrushchev expressed
of reducing the role of the secret police still
further. Khrushchev may have in mind divesting the KGB
of some of its domestic responsibilities as a gesture to
ease public apprehension about police power. He presum-
ably has no intention of reducing the role of the security
forces in foreign espionage and in counterespionage.
� Shelepin is a full member of the Soviet central com-
mittee. Since April 1958 he has been in charge of one of
the two personnel departments of the party central commit-
tee. Before that he headed the Soviet youth organization
(Komsomol) for over five years and had earlier spent sev-
eral years as Komsomol secretary in charge of personnel.
The announcement of Serov's successor was probably
delayed until the Supreme Soviet met in �leder to give the
appearance of broad democratic selection of the head of the
secret police which is still hated and feared by many Soviet
citizens. The reason why Serov's removal could not also
have been delayed until the Supreme Soviet meeting is not
yet clear. Serov apparently attended the Supreme Soviet
session in his general's uniform, but there was no mention
of his new assignment.
27 Dec 58 CENTRAL INTELLIGENCE BULLETIN Page 1
Approved for Release: 2020/01/23 C03000010
1-% el a" 7'1 1-1rI
Approved for Release: 2020/01/23 C03000010
'Awe 1410P4
II. ASIA-AFRICA
The Situation in Iraq
The four Iraqi army divisional commanders, who have
been reported planning to oust Prime Minister Qasim, are
now meeting in Baghdad,
Prior to the report of this
meeting, which is scheduled to last until 30 December, there
had been no further word on plans for a military coup against
the regime. However, the Iraqi ambassador in Cairo, when
queried on this subject, said he believed the influence of
senior "nationalist" officers had stayed the executions of
old regime politicians and of those implicated in the recent
Rashid al-Gaylani plot. Iraqi army maneuvers are to be
held near Habbaniyah, west of Baghdad, on 29-30 December.
Anti-Communist elements in Iraq
have been heartened by Nasir's
23 December speech attacking the Communists in Syria.
the "nationalists" consider the
speech "the beginning of a fight with the Communists in the
Arab countries, and particularly in Iraq." They hope UAR
propaganda media will follow up with further attacks,
does not suggest, however, that any new
plans for action have been developed by these Iraqis.
Nasir was wary of being in-
volved in another civilian plot against the Qasim regime and
had refused to lend material assistance to the Baath party,
the principal organized anti-Communist civilian group.
The Iraqi Communists apparently have made a large-
scale recruiting effort among Shia Moslem youth in the area
south of Baghdad. The Shias have long been fearful of domi-
nation by the Sunni Moslems in the government, and this fear
has been heightened by Nasir's pan-Arab propaganda. The Iraqi
Shia's ther6fore�mak be4iartidularly susceptibl to CoMmu.; '
pist propaganda. .Baathrst: _Minister, of State': Rikabi
told Lae UAR ambassador last month that "scandalous"
27 Dec 58 CENTRAL INTELLIGENCE BULLETIN Page 2
Approved for Release: 2020/01/23 C03000010
Approved f7r Release: 2020/01/23 C03000010
leisr4 %,��4
demonstrations by, Conirminists ., in this 'area ,
against 'a ',group of visiting UAR lawyers were Inspired
by Qasim. The Soviet ambassador and his family toured
the area on 21 December according to ai Iraqi police mes-
sage.
-T6921-SE-efiE
27 Dec 58
CENTRAL INTELLIGENCE BULLETIN Page 3
Approved for Release: 2020/01/23 C03000010
Approved for Release: 2020/01/23 C03000010
Nue
Cyprus
A final settlement of the Cyprus problem was discussed
between the Turkish and Greek:foreign trinisters and agree-
ment arrived at on many points at the recent NATO meeting
in Paris, according to Greek Foreign Minister Averoff. A
possible solutton, reached on a purely personal basis, has
been referred to Athens and Ankara for further examination.
According to the proposals discussed, Cyprus would be-
come independent�its independence guaranteed by interna-
tional treaty�with the British retaining their military bases.
The government would be republican ivith a Greek Cypriot
president and a Turkish Cypriot vice-president, the latter
having a veto on all matters effecting the Turkish community.
In addition to two purely communal chambers handling affairs
of the two communities, an island-wide legislature would be
created, possibly with 70 percent of its members Greek and
30 percent Turkish.
Many details are still to be worked out and certain prob-
lems--such as the veto power of the vice-president--may be-
come insuperable barriers to final agreement. In addition,
much will depend on the willingness of Greek Premier Kara-
manlis to work for an agreement which would probably be de-
nounced by the opposition parties in Greece and possibly by
Archbishop Makarios. The fact the conversations did occur
in a conciliatory atmosphere, however, is encouraging and
could be the prelude to real progress toward a settlement.
London has long sought negotiations among the disputants and
will probably agree to any solution acceptable to Ankara and
Athens.
On Cyprus, EOKA has announced its willingness to sus-
pend operations if the British security forces will reciprocate
There is evidence that the British are ivilling to accept these
conditions. A new spirit of conciliation on the island has
been demonstrated by the release of several hundred detainees
and the lifting of curfews by the government, while a Greek
Cypriot leader took the unprecedented step of expressing sor-
row at thp ricsath nf two RAF men recently killed by a road mine.
SECRET
27 Dec 58 CENTRAL INTELLIGENCE BULLETIN Page 4
Approved for Release: 2020/01/23 C03000010
c crp
Approved for Release: 2020/01/23 C03000010
gale Noe
New Moroccan Government
The cabinet of Istiqlal left-wing leader Abdallah
Ibrahim, which was invested by King Mohamed V on 24
December, will give Morocco a government more broadly
based and probably also less sympathetic to Western in-
terests than were its three predecessors since Morocco
regained its independence in 1956. The new government--
which is representative of its individual members rather than
parties--has been assigned the mission of "consolidating
Morocco's independence," alleviating unemployment and or-
ganizing local elections some time in 1959.
Ibrahim, who is foreign minister as well as premier,
has in recent months become closely identified with the power-
ful Moroccan Labor Federation, the National Student Associa-
tion, and other radical elements which have long been demand-
ing such measures as "Moroccanization" of all agricultural
holdings and nationalization of large sectors of the economy.
He is thus likely to give much wider latitude than did moderate
former premier Balafrej to deputy premier and national
economy minister Bouabid, who favors a directed economy.
Meanwhile, party secretary Balafrej and other prominent
spokesmen of the Istiqlal's right, or essentially bourgeois
wing, appear to have been by-passed by a new alignment of
forces representing the restless urban and rural masses.
The assignment of an important Berber, Driss M'Hammedi,
to the hotly contested Interior Ministry and the inclusion in the
cabinet Of at least two other Berbers might strengthen the new
government's hand in dealing with its most pressing internal
problem--tribal dissidence in the Rif region of northern Moroc-
co and other Berber-inhabited areas. M'Hammedi's accept-
ance of the interior portfolio and the designation as defense
minister of a royalist partisan who apparently has little po-
litical stature also suggests that the King yielded to Istiqlal
SECRET
27 Dec 58
CENTRAL INTELLIGENCE BULLETIN Page 5
Approved for Release: 2020/01/23 C03000010
r. r, 11
Approved for Release: 2020/01/23 C03000010
NIS
extremists' demands that the police be placed under the con-
trol of the interior minister but has retained, at least for the
time being, effective control over the army.
The Ibrahim government can almost certainly be expected
to renew at an early date pressure for the evacuation of the
approximately 28,000 French and 10,500 Spanish forces still
based in Morocco as well as for the liquidation of the five
American-operated air bases. It is also likely to extend more
energetic support to the Algerian rebels. Such a move, es-
pecially if accompanied by any move to expropriate French-
owned agricultural lands, might precipitate vigorous French
countermeasures, possibly including independent action by
French military elements in Algeria or Morocco.
27 Dec 58
CFMTD Al 111/41TFI I inrkirp RI III FTIM
Approved for Release: 2020/01/23 C03000010
Page 6
'mord
Approved for Release: T0-2-0/01/23 C03000010
`44401
Rhee Administration Forcibly Overcomes South
Korean Opposition
The South Korean administration on 24 December used the
National Assembly guard force, reinforced by plainclothes
policemen, to evict from the assembly building about 80 Demo-
cratic and independent opponents who were engaged in a sit-
down strike to prevent passage of a revision of the National
Security Law. The administration then utilized its Liberal
party majority to pass this controversial law and also re-
vised the Local Autonomy Law to permit the government to
appoint mayors and other local officials now chosen by elec-
tion. The 1959 budget also was passed.
Before passing the security law the government modified
the planned revision possibly because it feared losing Ameri-
can support and because of rising opposition in South Korea.
Nevertheless, the law will give the administration an effective
weapon to silence growing political opposition by abridging
already limited civil liberties and press freedom. The Ad-
ministration hopes by this means to prevent a possible de-
feat in the 1960 presidential elections for which President
Rhee already has announced himself a candidate.
The passage of the law by forceful means almost cer-
tainly will increase bitterness throughout South Korea. The
government has expressed concern r �idtng this posability
and the police have
been alerted to take all necessary measures to prevent popu-
lar demonstrations. A demonstration was put down in Pusan
on 25 December.
Minister of Defense Kim Chong-yol on 24 December or-
dered armed forces command r to become involved in
incidents.
TOP SECRET
27 Dec 58
CFNTRAI INTFI I inFNeF RIII I FTIN Page 7
Approved for Release: 2020/01/23 C03000010
Approved for Release: 2020/01/23 C03000010
Ifte �01,
Growing Leftist Trend in Singapore
The failure of Singapore moderates, led by Chief Min-
ister Lim Yew Hock, to oust left-wing Mayor Ong Eng Guan
is a further strong indication that the Communist-infiltrated
People's Action party (PAP) will control the government of the
new State of Singapore following next year's general elections.
Ong, an official in the PAP, was elected for a second year's
term on 23 December by a 17-15 vote of the city councilors.
The election furthers PAP aims by providing the publicity-
minded mayor with an excellent propaganda sounding board,
as well as by extending his control of city patronage. At the
same time, it defeats Lim's plan to discredit the PAP by
carrying out investigations of several civic projects sponsored
and manipulated by the PAP during the year that it has dominat-
ed the city administration.
The ability of Ong to survive a concerted effort to unseat
him will tend to strengthen the myth of PAP invincibility and
thus further dim the election prospects of the Singapore Peo-
ple's Alliance�the newly formed coalition of moderate parties.
Meanwhile, the PAP, apparently in anticipation of control-
ling the first all-elected government in Singapore upon achieve-
ment of internal self-rule next year, has been developing a com-
paratively moderate line. This, however, seems a tactical ma-
neuver designed to allay British and Malayan fears of an extrem-
ist government in Singapore and to avoid a provocation which
�
might cause the British to use their reserve Dowers to rescind
the constitution.
CONMENTIAL
27 Dec 58 CENTRAL INTELLIGENCE BULLETIN
Approved for Release: 2020/01/23 C03000010
Page 8
ir,rvrr
Approved for Release: 2020/01/23 C03000010
-CUBA
.1 MILES 100
HAVANA
, ,
,,, 1 ' Ststrouss \
AL7NA:i A � .1 HABANA k ' ca.. %.
t
6- In ArtennIsa \ ,
P INAR / 1 MATANZAS j sante
D E L . RIO ) Clem � Calbsrlen
Pinar dal Rio l, /
.Mendose "."-'1.-ri LAS VILLAS /
N.)
ClantueguS� , ..,. suputl ) Morus�
,trparks Spiritus )
- Makty . t
TFInidi&-� CA M AGUE Y
Tunas d;Zarr'' �
ISLE OF
PINES ,
ANNAvANNLIZNILN.N1/ANNNAs,
ATLANTIC OCEAN
GULF OF MEXICO
OUAT
EL SALVA
24981
HONDURAS
CARIBBEAN sew
CUBA .alocuD01.41NBICAucti
mrs
DUA
OZISTA VOL
' Carps suey.
CARIBBEAN SEA
Area of rebel activity
BAHAMA
Nuesoltas
FIDEL CASTRO
HEADQUARTERS
RAUL CASTRO
FORCES
_ N E CIE44 .Ballie08
rat4C '
sonesnamo
� 4.! Cab.
(U.S. NAVAL EASE)
81227
SECRET
Approved for Release: 2020/01/23 C03000010
er rot Art v. r'srr
Approved for Release: 2020/01/23 C03000010
Nor'
III, THE WEST
The Situation in Cuba
General Eulogio Cantillo, Cuban army commander in
besteged Santiago, Cuba's second largest city, was noncom-
mittal on 21 December when a delegation of prominent resi-
dents appointed by the city's archbishop petitioned him to
declare Santiago an open city to avoid further bloodshed.
On the same day, a priest just returned from rebel ter-
ritory is reported to have given Cantillo a letter from reb-
el leader Fidel Castro requesting him to surrender the city
and offering honorable terms.
President Batista has apparently suspected 'Cantillo
of disloyalty since late November when some 30 officers
were arrested for implication in an alleged conspiracy.
He is regarded as one of Cuba's ablest generals.
The morale and effectiveness of the Cuban army con-
tinue to deteriorate. Its recent recruitment campaign
failed miserably when only 700 of a goal of 9,000 men were
inducted. Despite a military build-up in the Santiago area
and the receipt of weapons purchased in Europe, the gov-
ernment has been unable to contain the rebel drive in
Oriente and in Las Villas Provinces. In Las Villas, press
reports on 26 December described the rebels as having
virtually encircled the provincial capital of Santa Clara by
the capture of various surrounding towns. The rebels are
active for the first time in Matanzas Province, where a
unit is reported to have attacked a sugar mill some 25 miles
east of the provincial capital on 17 December.
-SECRET
27 Dec 58
CENTRAL INTELLIGENCE BULLETIN Page 9
Approved for Release: 2020/01/23 C03000010
Approved for Release: 2020/01/23 C03000010
Aftw' �4110.,
New Threat to Panamanian Political Stability
Panamanian President de la Guardia, whose moderate
policies have alienated the majority of his supporters and
have resulted in several opposition attempts to oust him,
faces a new threat. On 19 December Arnulfo Arias, who
was ousted from the presidency in 1941 and again in 1951
and has since ostentatiously remained aloof from overt po-
litical activity, returned to Panama and indicated his readi-
ness to try a comeback. Arias severely criticized De la
Guardia's chief source of strength�the corrupt and power-
ful National Guard commandants--as "a cancer on the coun-
try?" and he blamed Panama's political and economic condi-
tion on the President.
Arias' return from an eight-month South American trip
had been awaited by several politicians who are launching a
new opposition party and maneuvering for advantage in the
next presidential race. The rabble-rousing ex-Pregiderit's
great popularity among Panama's restless lower classes and
the arms reportedly smuggled in by his supporters would be
useful to the new movement, but Arias would probably insist
on leading it, since he has described himself as "the country's
greatest asset in time of need."
In attacking the unpopular guard leaders, Arias may well
attract support from the strong student movement which has
already rioted against the government this year. The guard,
reportedly weakened by internal divisions and plotting, might
not present a united front to another mass movement to oust
the President.
27 Dec 58 CENTRAL INTELLIGENCE BULLETIN
Approved for Release: 2020/01/23 C03000010
Page 10
VII A" T.ik let ITS
Approved for Release: 2020/01/23 C03000010
Nvaipi gimos*
Minority Government Formed in Iceland
The minority government which Social Democratic
Prime Minister Emil Jonsson formed on 23 December is
expected to remain in office with Conservative parliamentary
support until new elections are held, probably next spring.
This government replaces a three-party coalition-'-including
Communists--which resigned on 4 December as a result of
disagreement over economic reform measures.
The new government faces difficult economic problems
which require early attention, the most serious being the in-
flation threatening the country. In early January it must also
negotiate with fishing industry groups on a new price-and-wage
basis for the winter fishing season, or else it will be faced
with the possibility of a tie-up of the entire fleet.
The Conservatives are reported
to have promised Jonsson their sup-
port on a number of immediate measures for combatting in-
flation. This reported agreement also includes an under-
standing to revise the electoral law, which now favors the
largely rural Progressive party,
The Communists, who hold a dominant position in the
trade union movement, are certain to seek to foment labor
unrest and discredit the government, particularly if it ad-
vocates a moderate wage policy as part of its economic
program. The elimination of the Communists from the
cabinet seems likely to improve the chances for an ultimate
solution to the fishing dispute with Britain, and to reduce
the possibility of incidents involving patrolling vessels. In
view of the 'impending election, however, none of the par-
ties can afford to appear to back down on the principle of a
12-mile limit. The democratic parties probably hope that a
modus vivendi can be reached which would eliminate the dan-
ger of further clashes pending a final settlement.
SECRET
27 Dec 58
CENTRAL INTELLIGENCE BULLETIN Page 11
Approved for Release: 2020/01/23 C03000010
...,........1,,,ST,V�111t/TIV � V
Approved for Release: 2020/01/23 C03000010
NW'
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 reonomic 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.
Approved for Release: 2020/01/23 C03000010
-TOP-SECRET-
:r0
II0
-TO-P-5E01U-
zzz, ,zzzzzzzzz, vz A p proved for Release: 2020/01/23 C0300001Ormjrz,emmzzzZ