CENTRAL INTELLIGENCE BULLETIN - 1958/10/07

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03003300
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: October 7, 1958

Ar/ Z/Z/Z/ZZZZZZ////, Z,ZZ/ZZZ/rf
Approved for Release. 2020/91/23 C03003300
vr bttiKET
vitir
3.5(c)
3.3(h)(2)
7 October 1958
Copy No. C
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
NO CHANGE CHANGE IN CLASS..7---
I I DECLASSIFIED
CLASG. CANjCED TO: 13it S C
NEXT 1�,;;I7Vii',:',V DA FE: � 4,0/ 6
AUTH 13 -I
DATE.
_REVIEWER:
TOP SECRET
ZA pproved for Release: 2020/01/23 C03003306f,/,,ZZ,ZWZM
Approved for Release: 2020/01/23 C03003300
_ _ _ _
FflRFT
Approved for Release: 2020/01/23 C03003300
owe". rt- evirt" rt. ref"-,
Approved for Release: 2020/01/23 C03003300
7 OCTOBER 1958
I. THE COMMUNIST BLOC
Taiwan Strait - No Communist ar-
tillery fire against Chinmens since
5 October.
IL ASIA-AFRICA
Algerian agents to_nurcha nae_),(n�e_
armsii Prague.
Iraq - Military mission sched-
uled for Moscow. Baathist cab-
inet member intends to resign as
oressure on Prime Minister Qasim.
Syria - Action against American-
owned oil company probably intended
as pressure on Tapline.
0 Iran - Reported conspiracy aims to
limit powers of Shah.
0 Tunisian-Egyolan rplatinns con-
tinue difficult.
III. THE WEST
a West Germany moves toward rela-
tions with East European satellites.
�r�����rik re reel n reri
Approved for Release: 2020/01/23 C03003300
Approved for Release: 2020/01/23 C03003300
TOPSECRET
t11/110
LI
vrk
p�O CENTRAL INTELLIGENCE BULLETIN
7 October 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
*Taiwan Strait situation: There has been no Chinese Com-
munist artillery fire against the Chinmens since about mid-
nigh 5 October (Taiwan time). Peiping issued its "23rd
ous warning" against the "intrusion" of US air and naval
rces on 6 October, but did not threaten to resume shelling.
Nationalist officials are making every effort to offset the ef-
fects of Peiping's cease-fire offer.
(Page 1)
II. ASIA-AFRICA
Algeria-Czechoslovakia: Czech authorities were expect-
ing agents to arrive in Prague shortly "to purchase arms for
Algeria,"
the agents as the
Same as those who negotiated a $1,000,000 arms purchase with
the Czechs in March 1957. (TOP SECRET EIDER) (Page 2)
Iraq: An Iraqi military mission headed by the commander
of the air force and the assistant chief of staff was scheduled
to leave Damascus for Moscow on 4 October,
Baathist Minister of State Fu.ad Ftikabi, recently replaced
as minister of development, intends to resign in order to cre-
ate difficulties for Prime Minister Qasim, which he hopes will
force Qasim to choose between the Socialist Baath and the local
Communists. (Page 3)
TOP SECRET
W7i
'Approved for Release: 2020/01/23 C03003300
LI
Approved for Release: 2020/01/23 C03003300
TOP SECRET
110 Noe
fin
Arb
Syria: The operations of the independent Menhail group,
the only American-owned oil exploration company in Syria,
were suspended on 5 October and its funds frozen by the gov-
ernment. The action against this company is probably in-
tended to bring pressure on the American-owned Tapline com-
pany, which has been resented with UAR demands for in-
creased payments. Page 4)
Iran: Reports of a conspiracy to reduce greatly the pow-
ers OF the Shah and make major changes in government per-
sonnel continue to emanate from Tehran. Dr. Mozalar Baqai,
unscrupulous leader of the relatively minor Toilers' party
and former supporter of ex-Premier Mossadeq, is apparently
involved in such a plan. Any such move to be successful would
probably have to be supported, by a military move to oust the
present government. Dissatisfaction of military circles with
the present regime has frequently been reported.
(Page 5)
Tunisia-UAR: Although Tunisia has joined the Arab
League, basically Tunis-Cairo relations continue to be dif-
ficult. Tunisian President Bourguiba on 29 September ordered
his ambassador in Cairo to return to Tunis immediately. This
move is an apparent effort to get Nasir to withdraw his protec-
tion from Bourguiba's exiled political rival, Salah ben Youssef,
who is accused of plotting to overthrow Bourguiba.
(page 6)
I I L .THE WEST
West Germany - Eastern Europez: Chancellor Adenauer
In a 3 October press interview indicated that Bonn no longer
considered recognition of East Germany by European satel-
--lites an obstacle to their establishing relations with Bonn.
V Recognition of East Germany by states independent of Mos-
cow's control; however; would still be considered an "unfriendly
7 Oct 58
DAILY BRIEF ii
N
TOP SECRET
T-x\
;okpproved for Release: 2020/01/23 C03003300
N
Approved for Release: 2020/01/23 C03003300'
%WI
act" by Bonn. Adenauer suggested that trade missions with
consular rights might be the first step toward full diplomatic
relations with the European satellites.
(Page 8)
7 Oct 58
DAILY BRIEF iii
TOP SECRET
lApproved for Release: 2020/01/23 C03003300
Approved for Release: 2020/01/23 C03003300
41111k
TAIWAN STRAIT TALLY SHEET
(From JCS Situation Report No, 84)
Air Situation
(Losses claimed through 3 Oct)
Destroyed
Probably
Destroyed
Today Cumulative Today Cumulative
Communist planes
0
28
0
4
Nationalist planes
1
5*
0
0
*Includes 2 C-46's, 2 F-84G's, and 1 F-86
Chinmen Supply Situation -
(Tonnage through 5 Oct)
Sea
Air
Total
Delivery - 1-5 Oct
450
1,155
1,605
Totals (since 7 Sept)
5, 005
Average Daily Rate
172
Minimum Austere
Daily Requirements
320
Cumulative Deficiency
Since 7 Sept
4,275
Approved for Release: 2020/01/23 C03003300
Approved for Release: 2020/01/23 C03003300
*se
I. THE COMMUNIST BLOC
Taiwan Strait Situation
Chinese Nationalist officials are making every effort to
offset the effects of Communist China's cease-fire offer. One
ranking Nationalist leader told an American official on 6 Octo-
ber that his government views the move as a threefold attempt
to divide Taipei and Washington, to weaken the morale of the
troops on Chinmen, and to provide a means to charge the
United States with forcing hostilities, possibly as a prelude
to a major assault.
Chiang Kai-shek told British newsmen on 6 October that
the Warsaw talks should be broken off to test Peiping's reaction.
A Nationalist military spokesman publicly dismissed the Com-
munist offer to suspend shelling for a week as "purely interna-
tional propaganda."
There has been no Chinese Communist artillery fire since
about midnight 5 October (Taiwan time). Peiping, however,
issued its "23rd serious warning" on 6 October against the "in-
trusion" of US air and naval forces, claiming that the "so-
called escort" is not to help Nationalist forces, but "to create
tension and extend aggression." Peiping stated that the Amer-
ican actions occurred despite Defense Minister Peng Te-huai's
offer to permit shipment of supplies to Chinmen on condition
that there be no American escort, but the statement did not
threaten to resume shelling.
SECRET
7 Oct 58 0^ClkITC1 A I 11.1TC1 I li"Ekle`r flu Irvik
Approved for Release: 2020/01/23 C03003300
Page 1
� Approved for Release: 2020/01/23 C03003300
ur
II. ASIA-AFRICA
Algerian Rebels Reported Again Seeking Czech Arms
The rebel Algerian National Liberation Front (FLN),
which continues to receive most of its external arms sup-
port from the UAR, may be about to conclude a new direct
arms purchase from Czechoslovakia.
the UAR air
attache in Prague notified by Czech author-
ities that "a group from Austria and Hamburg" would arrive
in Prague "in a few days to purchase arms for Algeria."
Czech query as to the compe-
tence of the group to make such purchases� appeared to equate
it with a North African mission which, under Egyptian aus-
pices, concluded a deal in Prague in March 1957 for $1,000,000
worth of unmarked small arms. These weapons were eventually
confiscated by Spain when an attempt was made to bring them
into northern Morocco.
There is no indication as to the possible magnitude of any
purchase which might materialize from this latest contact.
FLN leaders have insisted
hat their policy was to accept only "token" offerings
rom the bloc as long as arms are available through Arab
sources. For its part, the bloc has generally appeared to re-
ciprocate this cautious approach as far as its actual material
support of the Algerian rebellion is concerned,
a high-level Czech official
who visited Damascus was to discuss with the Syrians a
$25,000,000 contract for arms for the Algerian rebels, but
there is no firm evidence that such a deal was ever concluded.
The rebels may, however, now be receiving some modern
Czech small arms originally made available to Cairo.
TOP SECRET
7 Oct 58 rPMTD A I IkITCI I in=kur= RI II I CTIkl
Approved for Release: 2020/01/23 C03003300
Page 2
Approved for Release: 2020/01/23 C03003300
IU1MLfiii
4111,
Iraq Situati6n
The UAR military attach�n Baghdad has been officially
informed by the Iraqi authorities that a "top-secret," four-man
military mission was to be sent to Moscow from Damascus
on 4 October, Included in the
mission were the chief of the air force, the assistant chief
of staff, and the director of plans. This group presumably
will discuss Iraqi requirements for arms, especially air-
craft.
In the domestic political situation, former Deputy Premier
Arif is said to be in a quandary regarding his future course
of action. His Egyptian advisers believe that unless Arif
refuses to accept the ambassadorship to West Germany and
stays in Iraq, his influence ntrill be finished completely."
Fuad Rikabi, Baathist Socialist ex-minister of development
who recently was shunted into the post of minister of state,
is planning to resign in order to precipitate a cabinet crisis
and force -Premier Qasim to choose between the Baathists
and the Communists for support.
na group of senior army officers is really governing Iraq
in a manner similar to that applied in Egypt from 1952 to
1954. The Egyptians are working assiduously to further the
interests of the pro-UAR faction and during the past week
sent $50,00- to their military attach�n Baghdad, presumably
to buy support.
Premier Qasim, while professing political, military,
and economic solidarity with the UAR, has given the faction
which favors union with the UAR another setback by stating
that union could come only after a plebiscite, to be held at
some future time "when the health, cultural. and social
standards of the people are raised."
TOP SECRET
7 Oct 58
CFKITDAI !KIM I incider RI III CTIkl
Approved for Release: 2020/01/23 C03003300 Page 3
Approved for Release: 2020/01/23 C03003300
Syria May Freeze Out American Oil Interests
The Syrian region of the UAR has issued a decree.,
effective 5 October suspending all operations of the Ameri-
can-owned Menhall Prospecting and Exploration Company
and providing for the liquidation or freeing of funds held
by the company's Syrian branch. This move, which prob-
ably presages the forcing out of the American firm, suggests
that Egyptian oil policy now has been extended to the Syrian
region. The UAR may soon oust the West German. - owned
Societe des Petroles Concordia, which is the only other
Western oil interest in the country.
The Menhall interests control Syria's only proved
oil field, located near the northwest border of Iraq.
While the field has not yet been fully defined, its reserves
are thought to exceed 1,000,000 barrels; its geology is
similar to Iraq's. In ousting Western oil interests, Syria
would not have to resort to nationalization since, under
Syrian law, neither the Americans nor the Germans have
permits to exploit oil discoveries. Menhall's efforts to
"Arabize" the firm, while apparently having some in-
fluence on Damascus, failed to sway officials in Cairo.
UAR officials probably will use their action in the
Menhall concession to impress on officials of the American-
owned Tapline, which carries Saudi oil to the Mediterranean,
that they intend to press their demands for a substantial in..
crease in revenues. The latest UAR demand, however, has
been characterized as "impossible" by company officials since
it would mean operating Tapline at a substantial loss.
SECRET
7 Oct 58
CPKITDAI !MTN I InFKICF RIILLETIN
Approved for Release: 2020/01/23 C03003300
Page 4
Approved for Release: 2020/01/23 C03003300
CU( '
vie
Conspiracies Against Shah Continue in Iran
Some Iranian political leaders are plotting against the
Shah with the aim of greatly reducing his power and making
extensive changes in the government. Discontent and plot-
tingare also reporte4 among military officers. Augmented
efforts to lessen discontent-have failed to be either exten-
sive enough or dramatic enough to bolster the regime.
Dr. Mozafar Baqai, leader of the minor Toilers' party
and a former supporter of nationalist leader ex-Premier
Mossadeq, is involved in a plot, apparently rather well ad-
vanced, to force the Slab into a more limited role. He is
selecting a shadow government with himself as prime minis-
ter and retired General Ismail Shafai as minister of war, and
may be ready to move fairly soon.
Baqai claims he would immediately release from prison
the popular General Valiollah Gharani, arrested in March for
similar plotting. This would be an obvious effort to attract
popular and military support. While Baqai apparently does
not favor the use of force, military men associated with him
believe he could be convince4if force is necessary to oust the
Shah.
Since the overthrow of the Iraqi Government in July, Irani-
an popular discontent and criticism have come to the surface,
and a reform movement with any prospect of success could prob-
u widespread popular and military support.
7 Oct 58 CENTRAL INTELLIGENCE BULLETIN Page 5
Approved for Release: 2020/01/23 C03003300
Approved for Release: 2020/01/23 C03003300
INO
Tunisian President Summons.Ambagsador From Cairo
President Habib Bourguiba is determined that Tunisia's
membership in the Arab League shall strengthen his position
in his chronically difficult relations with Nasir. On 29
September Bourguiba instructed Tunisian Ambassador Taieb
Sahbani in Cairo to submit Tunisia's formal application for
league membership--on which Bourguiba had been stalling--
and CO infcirth both the Egyptian Government and the ''ecretary
general of the league that he was ordered to return to Tunis
until "the outstanding problem" between Tunisia and the
United Arab Republic has been solved. Bourguiba claimed
last July that he had warned the UAR ambassador to Tunis
that Sahbani would be withdrawn if the UAR continued to harbor
Salah ben Youssef, Bourguiba's political rival, whom Bourguiba
suspects of plotting to overthrow him.
Egyptian authorities were agreeable to
the expulsion of Ben Youssef but did not want to create the im-
pres�siorithat Tunis was dictating his departure as a condition for
joining the league. Learning that Tunis had indeed made this
condition, Ben Youssef postponed his departure in an attempt
to dplay Tunisia's joining the league and thus to maintain
Egyptian-Tunisian tension. the Arab states would
be offended if Tunisia conditioned its membership application on
the actual departure of Ben Youssef.
Possibly influenced by this report, Bourguiba conceived
his "formula" of recalling Sahbani, which he claimed
was "already having some results." He claimed that
the UAR foreign minister and the Arab League secretary gen-
eral, would soon visit Tunis, presumably to discuss the recall
of Sahbani and the consequent absence of a Tunisian representative
during the current meeting of the league's council.
TOP SECRET
7 Oct 58
f"CkITD A I IkITCI I in=kurr RI II I FTIK1
Approved for Release: 2020/01/23 C03003300
Page 6
Approved for Release: 2020/01/23 C03003300
101' SLC1