CENTRAL INTELLIGENCE BULLETIN - 1958/01/14

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015194
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 14, 1958

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14 January 1958 3.3(h)(2)
3.5(c) 0,/100
Copy No.
166
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
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DAILY BRIEF
I. THE COMMUNIST BLOC
Ambassador Thompson believes that the Kremlin has
been encouraged by signs of Western disagreement to believe
it can force a new heads-of-government meeting. He sug-
gests that Moscow has become concerned over increased
Western public interest in previous Soviet propaganda pro-
posals for complete militar thdraw 1 from Europe and is
playing this concept down. (Page 1)
Communist China, in its first move to support the bloc
economic offensive in Yemen, has concluded trade and techni-
cal agreements with that country. Yemen will receive Chi-
nese technicians, steel� and heavy machinery, to be paid
from an interest-free Chinese Communist credit of the equiv-
alent of $16,400,000 in Swiss francs.
Communist China has offered to lend Indonesia
$20,000,000 for economic development. Premier Djuanda
was unaware of President Sukarno's "almost private" nego-
tiations for this loan until a few days ago, but early cabinet
approval has been promised. rage 2)
About $300,000,000 worth of Soviet gold was sold in
Western markets last year�nearly three times the post-
Stalin yearly average. The increase may have been moti-
vated primarily by growing requirements for foreign exchange
in connection with foreign trade expansion and loan commit-
ments to the satellite countries. Gold sales in 1958 will
probably also be substantial.
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II. ASIA-AFRICA
Top Syrian military figures, including Chief of Staff
Bizri, Assistant Chief of Staff Nafuri, and G-2 chief
Sarraj, despite their rivalry for control of the military,
appear to have agreed to form an Egyptian-type military
group to assume full control of Syria. This seems to have
been motivated by the growing rivalry between civilian po-
litical factions in Syria. Bizri and other officers are in
Ciro, ostensibly to discuss Syrian-Egyptian union but, in
reality, probably to seek Nasir's agreement to their plan.
(page 3)
Ghana plans to announce on 14 January its intention
to establish diplomatic relations with the Soviet Union at
some time in the future. Liberia may feel compelled to
follow suit.
The election of leftist Saichi Kaneshi as mayor of
Naha, Okinawa, on 12 January indicates strong dissatis-
faction with the US administration and its policies. Leftist
members of the Naha city assembly have sufficient votes to
block a no-confidence vote against the new mayor.
(Page 4)
Prince Sihanouk's repent anti-Communist outburst in
Cambodia was probably motivated by alarm over the in-
creasing boldness of local Communists during his 4-month
European vacation. On 4 January he made an anti-Western
statement, and he has been careful to reiterate Cambodia's
adherence to a policy of neutrality. The forthcoming parlia-
mentary election campaign will show how far Sihanouk is
willing to move against the Communists. (Page 5)
The Israeli airline El Al has indicated it will resume
flights from Israel to Johannesburg via Eilat, tilt Straits of
Tiran, and Nairobi on 20 February.
service with Israeli Constellations
Resumption
and Israeli
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DAILY BRIEF ii
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kise
first time since October 1956, probably will arouse violent
Saudi Arabian - Egyptian protests. Although there is no indi-
cation it plans to do so, Egypt possesses the capability to in-
tercept these flights with MIG-type fighters from Suez Canal
zone bases. (See MAP)
III. THE WEST
Prime Minister Macmillan has set up an interde-
partmental committee to study "disengagement in central
Europe." The committee's preliminary views are that ex-
isting proposals are unworkable, but Macmillan may be-
lieve further British initiatives are called for to satisfy
British public opinion. CPage 6)
Premier Gaillard intends to submit constitutional re-
form proposals immediately to the French National Assembly.
The move may split his supporters in the assembly. More-
over, differences on Algeria among his assembly supporters
may also be reopened as a result of chanaes made in the basic
statute by the Council of the Republic.
(Page' 7)
Venezuelan President Perez announced on 13 January
that he had taken charge of the Ministry of Defense to main-
tain armed forces unity, replacing General Fernandez, for-
mer armed forces chief of staff who was appointed to the post
in the cabinet shake-up of 10 January. The move suggests
that Fernandez was pressing his personal ambitions against
the will of the ruling military and that the political crisis has
not yet been resolved. (Page 8)
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DAILY BRIEF iii
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soviet Confidence Rising Over Prospects
For Summit Meeting
Ambassador Thompson in Moscow believes that
Soviet leaders have been encouraged by recent signs of
Western disagreement on East-West negotiations to be-
lieve they can force a new heads-of-government meeting.
The Soviet Government apparently is striving for a sum-
mit meeting to reach generalized agreements with spe-
cific subjects left for subsequent discussion.
Thompson finds little in the current Soviet proposals
which Moscow could expect the United States to accept as
�a basis for a summit discussion--with the possible excep-
tion of the Rapacki plan for a "nuclear-free zone." But he
foresees the possibility of some new "concession" on dis-
armament by Moscow to secure Western agreement to such
talks. The Finnish ambassador to the USSR, also expects
"radical" new Soviet proposals on disarmament,
Thompson feels that the Kremlin has become con-
cerned over the increase in public interest in proposals
for complete mutual withdrawal of military forces from
Europe and is playing down the concept. Recent statements
by Kennan and Moth have stimulated West European interest
in "disengaging" the military commitments of the USSR and
the US.
In connection with Soviet bids for bilateral talks with
the United States,
either Nehru or Burmese Premier U Nu would
be acceptable to the USSR in the event a third party were
added to such discussions.
14 Jan 58
CENTRAL INTELLIGENCE BULLETIN
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Indonesian Official Confirms communist China's
Offer of Loan
A Chinese Communist offer to lend Indonesia
$20,000,000 for economic development has been con-
firmed to the American Embassy by an official of the
Indonesian Foreign Ministry. The official said it is
likely the loan will be accepted and that a textile mill
will be the first project.
He said arrangements had been handled almost on
a "private" basis by President Sukarno and the Foreign
Ministry since last September, and that Prime Minister
Djuanda had not been informed of the negotiations until
the last few days. Djuanda, however, apparently has
promised early cabinet approval.
The official revealed that the anti-Dutch campaign
was planned largely by Sukarno on the calculation that the
Dutch would "return" West New Guinea rather than sacri-
fice their financial interests in Indonesia. He said Sukarno
also assumed that the United States would quickly intercede
to bring about a negotiated settlement. Thus, the govern-
ment had no plan for a systematic take-over of Dutch inter-
ests, and it was only when both assumptions proved inaccu-
rate that the government devised a makeshift plan for ad-
ministering Dutch companies and estates. The decision to
accept the Chinese loan was due, in large measure, to a
desire to offset the serious economic dislocation caused by
the anti-Dutch campaign.
14 Jan 58
CENTRAL INTELLIGENCE BULLETIN
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CONFIDENTIAL
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Syrian Army Planning Coup Against Civilian Government
The Syrian Army command council, which includes
Chief of Staff Bizri, Assistant Chief of Staff Nafuri, G-2
Chief Sarraj, and other ambitious and rival officers, has
decided on an army take-over of the government on the
Eavotian model
Although not in complete agree-
ment on principles nor on a leader, the clique has decided
to cast off its alliances with political parties and rule
In the army's name,
the officers called on
the Egyptian ambassador in Damascus to inform him that
a delegation headed by Bizri was leaving for Cairo to re-
quest Egyptian support for the contemplated coup. Despite
the ambassador's attempts at delay, the delegation imme-
diately left for Cairo. Following the group's departure,
Sarraj outlined the plan to Foreign Minister Bitar, who told
President Quwatli and Prime Minister Mali. Quwatli, as
is his custom during a crisis, immediately took to bed.
Bizri, who is probably aware of Egyptian plans for
his removal, may have promoted the present effort to save
himself. Nasir would be unlikely to lend support to a coup
controlled by Bizri, whom he suspects of pro-Communist
sympathies. He would, however, not oppose expanded mil-
itary authority in Syria if Sarraj or some other acceotable
officers were in positions of control. both
Sarraj and Nafuri are eager to take Bizri's place as actual
leader of the command Council.
14 Jan 58
CENTRAL INTELLIGENCE BULLETIN
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Leftist Wins Okinawa Mayoral Election
The election of leftist Saichi Kaneshi as mayor of
Naha, Okinawa, on 12 January indicates that dissatisfac-
tion with US administration and land policies continues to
be widespread and that sentiment for reversion of the
Ryukyu Islands to japan is increasing. Kaneshi, who won
by less than one thousand votes among the 70,000 cast; was
more vociferous than his conservative-backed opponent in
criticizing US policies. He is the second leftist to be elected
�Naha mayor in 13 months.
Although the new mayor is not considered a Communist,
he had the support of ousted pro-Communist Mayor Kamejiro
Senaga. Kaneshi has pledged himself to "fight American pres-
sures," but he professes not to favor immediate withdrawal of
American forces from Okinawa.
A no-confidence vote against Kaneshi by the Naha city
assembly, similar to that which launched the procedure for
Senaga's ouster, appears impossible because leftist members
have sufficient votes to block its passage. An initial vote of
no-confidence still requires a two-thirds quorum.
In Japan, the results of the election may stimulate greater
criticism of the United States. Socialist'exPloitation of, the
Okinawan problem may force Prime Minister Kishi to press
Japanese requests to articipate in Okinawan affairs.
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pambodian Leader's Anti-Communist Outburst
The recent anti-Communist outburst of Cambodia's
political leader, Crown Prince Sihanouk, apparently re-
flects genuine concern over the increasing boldness of
local Communists, particularly in their antigovernment
propaganda. Sihanouk's public attack was directed essen-
tially against internal Communism, and his denunciation
of the local Communist party was undoubtedly designed to
eliminate this sole remaining
organized opposition to the rul-
ing Sangkum party.
Although Sihanouk reit-
erated Cambodia's adherence to
a strictly neutral foreign pol-
icy, his statements carried an
undertone distinctly critical of
the Communist bloc as a whole.
Sihanouk has for some time in-
dicated an increasing awareness
of Cambodia's vulnerability to
Communist subversion, par-
ticularly from North Vietnam.
The American Embassy
in Phnom Penh reports that some Cambodian officials now
are expressing stronger opposition to Communism but ques-
tions how long this trend will continue. The unpredictable
Sihanouk recently has also criticized the US aid program in
Cambodia. The forthcoming parliamentary election cam-
paign will show how far he is willing to go against the Com-
munists.
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�SLEekET--
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London Studying Disengagement, in Central Europe
A British interdepartmental committee to study
"disengagement in central Europe" was established by
Prime Minister Macmillan before he left for his five-
week Commonwealth tour on 7 January. The committee's
preliminary views tend toward the conclusion that exist-
ing proposals such as the Rapacki plan are unworkable,
but Macmillan may believe further British initiatives to
ease East-West tensions are called for to satisfy British
public opinion.
The committee's preliminary working paper stresses
the disadvantages to the West of any "disengagement." It
holds that a reunified neutral Germany would probably de-
velop policies more independent of the West, and that this
might lead to a re-emergence of German nationalism which
would serve Soviet purposes. A Foreign Office official,
while noting that prohibition of strategic ballistic missiles
in Germany might be militarily acceptable, warned that
such a suggestion would be politically dangerous inasmuch
as Western public opinion might push the proposal without
insisting on comparable Soviet concessions to the West.
The initial negative attitude toward "disengagement"
comes from officials who tend to be the most cautious of
the Soviet propaganda offensive. Macmillan's public pro-
posal of a nonaggression pact overrode their objections.
Except for the chairman, a Defense Ministry official, the
members of the committee are all from the Foreign Office.
The group has been instructed to approach the subject with
"open minds" and "not make a case either way." Its work
is to be completed in about two weeks.
�
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French constitutional Reform Issue May
Jeopardize Gaillard Government
French Premier Gaillard plans to propose constitu-
tional reforms to the National Assembly immediately after
It reconvenes on 14 January. He has threatened to call for
a referendum as a last resort, but assembly approval re-
mains doubtful, and the coalition may not survive a debate
on the proposals. At the same time,, the coalition could be
strained if action by the Council of the Republic forced the
assembly to reconsider the basic statute for Algeria. The
right is lukewarm on constitutional reforms and essentially
hostile to the Algerian basic statute while the Socialists
and Popular Republicans support both.
The proposed reforms would make it more difficult to
overthrow a government and would also facilitate dissolution
of the assembly. A "round-table" committee representing all
nonextremist parties unanimously approved the reforms, but
there are sharp divisions within the assembly on their main
aspects. This split will be accentuated if, as seems likely,
the deputies will have to reconsider the basic statute for Al-
aeria because of amendments by the Council of the Republic.
14 Jan 58
CENTRAL INTELLIGENCE BULLETIN
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Mounting Unrest in Venezuela
Increasing military and civilian unrest in Venezuela
indicates that the political crisis touched off by the 1-2
January revolt has not been resolved and that friction con-
tinues within the armed forces. President Perez announced
on 13 January that he would take charge of the Defense Min-
istry, replacing General Fernandez, former armed forces
chief a staff who assumed the post in the cabinet shake-up
of 10 January. The move suggests that Fernandez may have
been pressing his ambitions against the will of the military.
The possibility also exists that Perez may be attempting to
reassert his authority over the military, who are believed
to have been responsible for the cabinet changes.
Mounting tension was noted in Caracas on 13 January,
as troops patrolled the city and maintained a heavy guard at
the presidential palace. Government ministries,
dismissed their employees m ant cipa-
tion of trouble expected from military units in the city. Troops
and police late on the 13th dispersed a large-scale antigovern-
ment demonstration which was apparently intended as a follow-
up to the 10 January public protest against Perez.
Additional evidence of disunity among the armed forces
now controlling the government may encourage more active
civilian opposition and lead to further violence. Moreover,
discontented military elements, including the followers of
Fernandez and other discredited officers, might contest for
power with the ruling group.
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MAO 'a. � AR 40* 41INNOW
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 Mobilization
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
.Special Assistant for Foreign Economic Policy
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under-Secretary of State
The Counselor
The Deputy Under-Secretary for Political Affairs
The Deputy Under-Secretary for Economic Affairs
The Deputy Under-Secretary for Administration
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
Deputy Director for Intelligence, The Joint Staff
Assistant Chief Staff, 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
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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