CENTRAL INTELLIGENCE BULLETIN - 1959/11/13

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03004994
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 17
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: November 13, 1959

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13 November 1959
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INTELLIGENCE
BULLETIN
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13 NOVEMBER 1959
I. THE COMMUNIST BLOC
USSR-Berlin�Comment on Soviet pro-
tests to Western powers over West Ger-
many's proposed legislation for a new
radio system.
Sliah of Iran rejects Khrushchev's demand
for additional guarantees.
IL ASIA-AFRICA
0
Moroccan premier again rejects five-year
tenure for American air bases.
Nasir said to have approved plans for as-
sassination of pro-Communist president
of Iraqi People's Court.
Nasir visit to Saudi Arabia proposed.
Ceylon preparing to drop seven-year-old
rice-rubber deal with Communist China. 0
Burma--Local elections show continuing
popular support for political faction of
former Premier U Nu.
Japan�Prospects improved for growth of
anti-Communist labor movement.
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III. THE WEST
�Portugal�Exiled leaders planning moves
against Salazar regime.
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CENTRAL INTELLIGENCE BULLETIN
13 November 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-Berlin: The Soviet notes of 11 November to the
three Western powers protesting West German draft legis-
lation of 30 September to create a new radio system, includ-
ing a station in West Berlin, reflect Moscow's continuing
sensitivity to any West German claims of jurisdiction in the
city. The notes were apparently timed to focus attention on
this issue when the West German upper house considers the
legislation on 13 November. Moscow's action also suggests
an attempt to probe Western willingness to restrain Bonn
from actions which could be interpreted as violating the "im-
proved international atmosphere." Moscow probably hopes
to use this issue to further its effort to brand Bonn as the
principal obstacle to an international detente.
(Page 1)
USSR-Iran: Khrushchev has demanded further concessions
from Iran--in addition to the Shah's offer of 22 September to
give a written guarantee that no foreign missile bases be per-
mitted on Iranian territory--as the price of "normal" 'relations
between Moscow and Tehran. According to the Shah, Soviet
Ambassador Pegov informed him on 8 November that Khru-
shchev would accept the Shah's original offer if the Shah would
attach a protocol promising that no-foreign military bases of
any kind would be established and that Iran would not be used
as a "base of aggression" against the USSR. The Shah said he
rejected both conditions flatly thatneither "was
subject _to proper definition."
Tehran reportedly instructed its ambassador in Mos-
cow on 9November to suspend "negotiations"--presumably diplo-
matic approaches�until the USSR stops its propaganda attacks
on the Shah. (Page 2)
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II. ASIA-AFRICA
Morocco:aremier Ibrahim on 10 November again rejected
the proposed five-year tenure for the American air bases in
Morocco and declined to make a counterproposa9
(Page 3)
Ira The pro-Communist People's Court president, CoL
Mandawi, has been marked for assassination by UAR-supported
elements in Iraq;
Nasir has approved the carrying out of the assassina-
tion by Iraqi Baathists or by members of the Moslem Brother-
hood. This report is not confirmed,but Mandawi is Nasir's most
vocal enemy in Ira
Saudi Arabia -ambassador in Jidda
was to meet King Saud
on 11 ovem er to arrange a uate ior a visit by Nasir to Saudi
Arabia. Any such visit would probably ptecede Nasir's scheduled
trip to India the latter part of January. The initiative for the
Saudi Arabian visit probably came from the King, who spent sev-
eral days in Egypt last Selytember and may wish to use such ex-
changes to bolster his prestige at home.
(Page 4)
Ceylon - Communist China: Colombo appears to be moving
closer to abrogation of the Sino-Ceylonese rice-rubber agree-
ment, which has been operative since 1953. Governor General
Goonetilleke on 10 November asked the American ambassador
. whether the United States would provide, under PL 480, enough
rice during the next five years to offset the loss of Chinese sup-
plies. Goonetilleke said that both the prime minister and the
trade minister advocate canceling the agreement, and that the
delegation sea to negotiate the 1960 rice-rubber protocol has
- been recalled from Peiping. (Page 5)
Burma: The impressive showing of former Premier U Nu's
political faction in the two municipal elections held under Gen-
z eral Ne Win's regime indicates that Nuis popular following in
urban areas has not waned.� The wide margins of victory achieved
13 Nov 59
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in the face of army preference for the opposing faction, as well
as the latter's superior party organization, improves Nu's pros-
pects for a political, comeback in the national elections sched-
uled for early 1960. (he army is reviewing its plans for con-
trolling the next government. (Page 7)
Japan: Prospects for the growth of a responsible anti-
Communist labor movement in Japan, headed by the moderate
Zenro labor federation, have improved following the recent
split in the Socialist party. Elements from two key labor un-
ions have withdrawn from the Communist-dominated Sohyo
labor federation, and announced their support for the proposed
Democratic Socialist party, which is backed by Zenro. The
membership of Zenro at present is only one fourth that of Sohyo.
(Page 8)
III. THE WEST
Portugal: according to Portuguese officials, opposition
leaders in exile are accelerating coordinated plans for revolu-
tionary activities. While their maneuvers are not likely to pos
a serious threat to the Salazar regime at this time, Portuguese
security authorities appear sufficiently concerned over the prime
minister's safety to have increased his personal guard.
(Page 9)
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DAILY BRIEF iii
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I. THE COMMUNIST BLOC
Moscow Protests West German Plans to Create New Radio
Station in West Berlin
The USSR's 11 November notes to the three Western powers
protesting West German Government plans to create a new radio
station in West Berlin reflect Moscow's continuing sensitivity to
any implied assertion of West German legal jurisdiction in the
city. The notes allege that the Geneva foreign ministers' confer-
ence "confirmed" that West Berlin has never been a part of West
Germany and cited other examples of "illegal" West German in-
terference in Berlin affairs. Soviet preoccupation with the legal
relationship between Bonn and Berlin was also evident in IChru-
shchev's remark to Austrian President Schaerf on 13 October that
he could envisage any solution of the Berlin problem except the ab-
sorption of West Berlin by West Germany.
The notes were apparently timed to focus attention on the is-
sue when the West German upper house considers the legislation
on 13 November. Moscow is also probably seeking to probe West-
ern willingness to restrain Bonn from actions which would be open
to interpretation by Moscow as violation of the "spirit of Camp
David" atmosphere. Bonn is specifically charged with a "premed-
itated" attempt to interfere with the "successful conclusion of
forthcoming negotiations."
The proposed establishment of a long-wave radio station in
West Berlin is a part of a plan to establish some measure of fed-
eral control over radio and television facilities. According to the
draft law, the new station, "Deutschland-Funk," would broadcast
"to the whole of Germany." The proposal, approved on 30 Septem-
ber by the cabinet, has run into heavy opposition from the states,
which now control broadcasting. Local observers feel the law may
ultimately be passed, but only after protracted negotiations and
perhaps a constitutional court test.
--eeNFIDENTIAL
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NANO
("Khrushchev
Seeks Concessions from Iran
As the price for return to "normal" relations with Iran,
Premier Khrushchev is seeking further concessions in addition
to the Shah's offer of a written guarantee that no foreign missile
bases would be permitted, On Iranian territory. According to
the Shah, Soviet Ambassador Pegov informed him on 8 Novem-
ber that Khrushchev was pleased with the offer, and would ac-
cept it if the Shah would extend the guarantee to includeforeign
bases of any kind" and a promise that Iran would not be used as
IIa base for aggression" against the USSR. Acceptance of these
conditions would, in effect, reconfirm the disputed articles of
the 1921 Soviet-Iranian Treaty which authorized the USSR to send
military forces into Iran under certain conditions.
The Shah, who wishes to secure the cessation of the bloc's
propaganda attacks without damaging Iran's ties with the West,
said he rejected Khrushchev's additional demands on the grounds
that "neither is subject to proper definition." The offer of a guar-
antee against foreign missile bases, first made by the Shah to
Pegov in September, was repeated by the Iranian ambassador to
Khrushchev on 16 October, at which time the Soviet leader de-
ferred action apparently in the expectation of drawing further
concessions.
Direct attacks on the Shah by Radio Moscow ended in Sep-
tember, during the temporary relaxation of Soviet propaganda
pressure, but official bloc propaganda against the Iranian regime
has been resumed. The clandestine "National Voice of Iran" re-
cently accused the Shah of plotting with Jordan, Turkey, and
Pakistan against Iraq, and called for the overthrow of the Shah's
"'perfidious antinational government."
--Tep-sEeR-E-T-
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II. ASIA-AFRICA
(Moroccan Premier Again Rejects Proposed Tenure for
American Bases
Moroccan Premier Abdullah Ibrahim on 10 November
again rejected a US proposal that the five American air
bases in Morocco be retained for another five years. He
reiterated the argument he used in Washington last month
that this period is too long. Ibrahim added that submis-
sion of this offer to his cabinet would create ill feeling
without serving any useful purpose. He declined to make a
counterproposal, but suggested that the United States might
release the Boulhaut base as was tentatively proposed to
King Mohamed V last summer.
The King reportedly stated that a calendar of evacua-
tion might range from two to five years, depending on "the
ability of the Moroccan armed forces to assume maintenance
and control of the bases."
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King Saud Seeks Visit by Nasir
The UAR ambassador in Jidda was to meet with King Saud
on 11 November to set a date for a visit by President Nasir,
Such a visit probably would precede Nasiris trip to India sched-
uled for the latter part of January.
The initiative probably comes from King Saud; hints from
the King's aides to UAR officials reportedly paved the way for
1-iis meeting with Nasir in Cairo last September. Saud appar-
ently remains suspicious of Na,sir's intentions, but sees these
visits as a vehicle for rebuilding his own prestige at home.
The King has never reconciled himself to the role of a royal
figurehead while his brother Crown Prince Faysal, with the sup-
port of other senior princes, exercises the real authority. He
particularly resents Faysal's control of the Saudi purse strings
and measures to reduce royal expenditures. During Faysal's ab-
sence for medical treatment in Switzerland, the King has again
been trying to line up support of tribal leaders and other influen-
tial elements for a move to reassert his authority.
was making progress.
the King is unlikely to seek a'showdown unless Faysal's illness
Incapacitates the crown prince or keeps him out of the country
for a prolonged period. It now appears that the King will post-
pone any strong action; the Saudi deputy foreign minister in-
formed the American ambassador on 8 November that Faysal
plans to return by mid-November.
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11.1.1
Ceylon Moves Closer to Abrogation of Rubber-Rice Pact
With Peiping
Ceylonese officials appear increasingly inclined to abro-
gate Colombo's second five-year rice-rubber agreement with
Peiping. The barter arrangement has been operative since
January 1953, and the present agreement is effective through
December 1962. Governor General Goonetilleke, Prime Min-
ister Dahanayake� and the trade minister advocate such a
move provided Ceylon can obtain from the United States the
160,000 tons of rice per year it would order during 1960 from
Communist China. On 10 November, Goonetilleke asked the
American ambassador whether such assistance could be assured
under Public Law 480 for five years, or less if necessary. Cey-
lon presumably would require this much time to increase do-
mestic production and to arrange steady rice imports from other
sources.
Goonetilleke's request confirms previous indications that
Colombo is cautiously seeking means to reduce its economic ties
with Peiping. The trade minister's earlier request for American
aid in lieu of Chinese Communist funds to finance a rubber re-
planting program was also presented in the context of Colombo's
wish to cancel the barter agreement, despite the fact that a
Ceylonese delegation departed immediately afterward for Pei-
ping to negotiate the 1960 rice-rubber protocol. The talks, how-
ever, are apparently deadlocked. Colombo has been offering
to exchange only 17,000 tons of rubber for 160,000 tons of rice
as against the respective minimums_nf fl.1fl1 d 230,000 tons
specified in the five-year contract.
Peiping tears that a reduced exchange would give other coun-
tries the impression that its relations with the Dahanayake gov-
ernment are not "friendly." Peiping has accordingly insisted
that the level of Sino-Ceylonese trade be maintained or increased,
and has requested that Colombo accept 250,000 tons of rice and
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(stimulate local private rubber sales of 5,000 tons in addition
to the 30,000 tons sold through the government.
While Colombo has remained adamant on reduced quanti-
ties and rice prices, it has also pointed out to its delegation in
Peiping that Ceylon wishes to expand trade with China in other
commodities, and that the island's rice requirements are likely
to increase alter 1960. Colombo presumably hopes to retain
some Chinese Cbminunist good will to fall back on in the event
that plans to cancel the barter contract do not materialize.
Goonetilleke told the American ambassador that the Cey-
lonese delegation had been recalled from Peiping.
a
breakdown of talks be avoided, and that if the impasse persists,
the negotiations be "suspended" until early next year.
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Burmese Ex-Premier U Nu's Political Prospects Improved
Sweeping victories of U Nu's "Clean" Anti-Fascist People's
Freedom League (AFPFL) in municipal elections on 10 Septem-
ber and 11 November have improved his prospects for a political
comeback in the national elections now projected for early 1960.
In the central Burma town of Pakokku, the "Clean" candidates
won all 21 council seats despite the superior party organization
of former Premier Ba Swe's "Stable" AFPFL faction and the
known preference of army leaders for the Ba Swe group.
U Nu's personal appeal and political acumen appear to have
combined to offset his record of maladministration following the
1958 split in the AFPFL. He has succeeded in portraying his
forced resignation in September 1958 in favor of General Ne Win
as an act of political self-sacrifice for the good of the country.
Since then, leaving political campaigning primarily to his lieu-
tenants, he has rebuilt his popular image as a selfless national
and religious leader above partisan politics.
Although General Ne Win is reported committed to national
elections in early 1960, he is also convinced that army reforms
and army influence in government must continue following the
elections, and he is reportedly unsympathetic to U Nu. His army
subordinates, particularly Colonel Maung Maung, are dissatis-
fied with the election prospects, predicting the return of dilatory
and inefficient government under civilian politicians, and are seek-
ing means of ensuring a satisfactory degree of behind-the-scenes
control. In both the 1952 and 1956 elections army intervention
played a crucial role in obtaining AFPFL victorie!)
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Japanese Socialist Split Strengthens Labor Moderates
The faction led by Suehiro Nishio which withdrew from the
Japanese Socialist party plans to form a new Democratic Social-
ist party in early 1960. This gives the moderate anti-Communist
Zenro labor federation a long-sought political vehicle for com-
peting with the large, extreme leftist Sohyo federation.
In the wake of the Socialist split, an estimated 10 percent
of the 400,000 members in the National Railway Workers' Union
and a smaller group in the Coal Miners' Union have announced
their support of the Nishio group, which Zenro backs. These
unions rank second and fifth in size, respectively, among Sohyo's
component unions. Zenro, which has about 800,000 members but
is less than one quarter as large as Sohyo, is increasing its ef-
forts to attract members from unions which have maintained re-
luctant affiliation with Sohyo because of the latter's domination
of the Socialist party, heretofore labor's only political voice.
Zenro's concentration on strictly labor objectives, its oppo-
sition to labor participation in leftist-sponsored "political strug-
gles," and the relatively greater success of its member unions
in gaining wage increases in important industries have received
widespread press endorsement and may tend to attract new mem-
bers.
Significant expansion of Zenro will depend on successful for-
mation by Nishio of an effective political party.
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I I I. THE WEST
Exiles Reported Planning Overthrow of Salazar Regime
Fernando Queiroga, a former Portuguese Army officer
ex in 1946 for attempting a coup against the Salazar re-
gime, is reportedly in Tangier recruiting volunteers for
early guerrilla onPratinns in Portugal and Spain.
these operations are to
or uguese coast from Morocco,
where Queiroga hopes to locate a radio transmitter for
communicating with suppoTters in Portugal. His movement
is said to receive financial aid from sources in Venezuela.
The Portuguese security authorities believe Queiroga
has established contact with dissident army officers in
Portugal, including General Frederico Lopes da Silva,
chief of the Supreme Military Tribunal, who was involved
in an abortive coup in March and now is under police
surveillance. According to an unconfirmed report of late
October, Major Luis Calafate, another participant in that
plot who sought asylum in the Venezuelan Embassy in Lis-
bon and subsequently left for Venezuela, now has joined
Queiroga in Tangier. Calafate is believed to have army
contacts whose participation in the March plot has not
been discovered. General Humberto Delgado, unsuccess-
ful candidate in last year's Portuguese presidential elec-
tion and an exile in Rio de Janeiro since April1959, report-
edly intends to leave soon to reside in Italy, presumably to
maintain closer contact with his supporters.
Security authorities, concerned that an attempt might be
made on the life of Prime Minister Salazar, have tripled his
personal guard. The armylstill loyal to Salazar, should
be able to cope with any landings. The government may have
difficultyv.how_ever,, keeping under full surveillance internal
opposition groups which might try to sunnnri- nnpratinps from
abroad.
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A Axil-4A 11 I
Nuol
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 Defense and Civilian 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 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
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
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 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
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