CENTRAL INTELLIGENCE BULLETIN - 1959/12/03

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03007352
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: December 3, 1959

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INTELLIGENCE
BULLETIN
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3 DECEMBER 1959
I. THE COMMUNIST BLOC
Indonesia�New note from Peiping re-
ported.
11, ASIA-AFRICA
Algerian rebels willing to begin negotia-
tions with France in mid-December.
Burma�Former Premier Nu's followers
aGhieve sweeping victories in municipal
elections.
India needs more money to finance cur-
rent Five-Year Plan which extends into
1961.
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CENTRAL INTELLIGENCE BULLETIN
3 December 1959
DAILY BRIEF
L THE COMMUNIST BLOC
Communist China - Indonesia: lThe latest Chinese Com-
munist note to Djakarta is reported o have rejected charges
of interference in Indonesian internal affairs and reiterated
Peiping's determination to see that rights of Chinese nation-
als are respected. The note, however, is said to have stated
that Communist China still plans to send a technical mission
to discuss problems arising from Indonesia's treatment of
Overseas Chinese and that Foreign Minister Chen Yi would
visit Djakarta following the mission's return. Peiping had
earlier implied that the technical mission's discussions would
be meaningless, since Indonesia had already started to re-
move Chinese merchants from rural areasj
(Page 1)
II. ASIA-AFRICA
� Algeria: ia e rebels are willing to begin negotiations with
France in mid-December, following the current UN debate on
� Algeria and a meeting of the rebels' Revolutionary Council, ac-
cording to a senior rebel official. the Al-
gerian's recent nomination of five imprisoned leaders to nego-
tiate with De Gaulle was not final, and that a revised Algerian
delegation would probably be named later this month to take car
of French objections. He added that the rebels had no desire to
weaken De Gaulle's positions and would be satisfied with a mod-
erate UN Algerian resolution which would endorse the conaept of a
negotiated cease-fire.
*Notwithstanding the rebel commitment to conciliatory tac-
tics, a considerable gulf exists between the French and the rebels
and Tunisian President Bourguiba continues to doubt whether De
Gaulle can go further in clarifyina his self-cietprminntinn
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Watch Committee Conclusions:'LSItuations susceptible
of direct exploitation by Sino-Soviet bloc action which would�
jeopardize US interests exist in Laos and in the Middle East[
particularly in Iraq. Although situations in Laos and Iraq
appear relatively quiet at the present, there are many ele-
ments of continuing clanger in both countries]
Burma: The sweeping municipal election victories of
former Premier Nu's political followers may soon force Bur-
mese Army leaders to make a firm decision regarding the
national elections scheduled for early 1960. The Nu party
has achieved victories in seven of eight municipalities, in-
cluding a sweep of all 35 council seats in Mandalay, Burma's
second largest city. This presents the army with the alterna-
tives of risking Nuts return to power, intervening vigorously
for Nu'is opponents in the national elections, or canceling the
elections. (Page 2)
India: Finance Minister Desai estimates that India will
need approximately $294,000,000 in additional foreign aid to
finance the remainder of the Second Five-Year Plan (1956-61).
This much foreign exchange will be required to meet the pay-
ments falling due in 1960-61 on foreign debts and current
imports which together will exceed India's expected earnings
plus foreign aid already provided. About half this amount is
likely to be covered by credits anticipated from the World
Bank, Britain, West Germany, and Canada. Desai intends
to open negotiations with these creditors and with US officials
early in 1960 on aid for 1960-61. The foreign exchange deficit
for India's Third Five-Year Plan (1961-66), now being drafted,
probably will exceed $1 billion a year. Desai recently reported
to Parliament that prospects for foreign assistance for the
Third Plan were "good," although it was too early to say whether
the aid would be adequate.
3 Dec 59
DAILY BRIEF ii
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� Peiping Attempts to Ease Strains in Relations With Djakarta
U__Peiping's latest note to Djakarta is reported to have re-
jected charges of interference in Indonesian internal affairs
and to have expressed determination to see that the rights of
Chinese nationals in Indonesia are respected. The moderate
tone of the note, however, suggests that Peiping hopes to fore
stall any further worsening of relationq
In a gesture of conciliation, Peiping affirmed its read-
iness to send a technical mission to discuss problems arising
from Djakarta's treatment of Overseas Chinese. This missio
was agreed to during Indonesian Foreign Minister Subandrio's
trip to Communist China in October but apparently had been
called off by Peiping when Indonesia began the removal of Chi
nese from rural areas before the talks could take place-.]
he Chinese note also revived the idea of a visit by For-
eign Minister Chen Yi, which had been mentioned in the joint
communiqu6 at the conclusion of Subandrio's visit. Chen, the
note said, would go to Indonesia after the technical mission's
return,D
The Indonesian Government is .proceeding with implemen-
tation of the ban and continues to insist that the Chinese Embassy
desist from interference,
the retail businesses affected by the ban
must be closed by 1 January 1960 "at the latest."
compensation would be extended in the
form of cash or a one-year loan, and that, when possible, staffs
of closed businesses are to join the succeeding Indonesian ones.
Aliens need not be resettled unless the area army commander
requires their move in the interest of security. Military author-
ities on 28 November declared Djakarta closed to further
alien immieration "in the inte7ests of public order and secu-
rity."
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Noif '*11.1
IL ASIA-AFRICA
Burmese Army Concerned by Domestic
Political Developments
The decisive local election victories of former Premier
Nuts "Clean" faction of the Anti-Fascist People's Freedom
League (AFPFL), Burma's governing party until 1958, will
force the army, which now rules the country, to decide soon
whether to risk a "Clean" victory in the national elections
scheduled for early next year and the return of Nu to the
premiership, to intervene vigorously in the national elec-
tions themselves, or to cancel the elections. Despite the
army's known preference for former Premier Ba Swe and
his "Stable" faction of the AFPFL, Nu's followers have won
overwhelmingly in seven of the eight municipal council
elections held thus far, capping their victories by winning
all 35 seats in Mandalay, Burma's second largest city.
Leaders of the "Stable" faction have discounted these
victories, claiming that their own strength rests in the rural
districts which will provide 227 of the 250 members in Bur-
ma's lower house of parliament, the Chamber of Deputies.
Nevertheless, the decisive nature of Nu's victories, partic-
ularly in Mandalay, where his faction won even more de-
cisively than the united AFPFL had in the past, has seri-
ously undermined the "Stable" group's confidence and could
cause rural voters to climb on Nuts bandwagon.
Army leadership is still divided on the proper course
of action. Ne Win would probably be reluctant to cancel
the elections, to which he is publicly committed, but he
might sanction army intervention. Ne Win has no respect
for Nu's administrative abilities and little faith in his in-
tegrity because of his opportunistic associ e pro-
Communist National United Front in 1959.
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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
CONFIDENTIAL
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