CENTRAL INTELLIGENCE BULLETIN - 1958/01/23

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03015200
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 23, 1958

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23 January 1958
Copy No. 137
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BULLETIN
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23 JANUARY 1958
Renewed activity at Tyura Tam
missile range.
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USSR - New supersonic interceptors
probably in pre-series production.
Egyptian Air Force jet strength
increases.
Indonesia will accept 60 Soviet
ships.
Venezuela - Armed forces oust
President Perez.
Guatemala - Leftist Revolutionary
party probably polled at least 25
percent of vote.
OTHER ITEMS
Soviet bloc may announce
countermeasures to recent
NATO decisions.
King Hussayn plans countermeasures
to proposed Syrian-Egyptian union.
Hammarskjold suggests bilateral US-
USSR disarmament talks.
Hammarskjold pushing plan for Arab
development fund.
Indonesian Government may lose oil
revenues to Sumatran dissidents.
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CENTRAL INTELLIGENCE BULLETIN
23 January 1958
DAILY BRIEF
HEADLINE ITEM
* Venezuelan armed forces ousted President Perez
early on 23 January after two days of widespread vio-
lence resulting from a civilian-backed general strike. A
military junta replaced Perez and has announced its in-
tention to restore "peace and rapprochement" among all
elements of the population. Perez is believed to have left
by plane, possibly for the Dominican Republic, soon after
he was deposed.
The junta will probably continue Venezuela's pro-US,
anti-Communist policy, give civilian factions a substantial
voice in the new government, and gradually relax Perez's
tight controls over individual liberties and political activ-
ities. The possibility exists, however, that sporadic or
even widespread violence may occur, particularly if mil-
itary and civilian groups vie for control. This could en-
danger American residents and private investments in Ven-
ezuela even though not inspired by anti-US sentiment. There
is no indication of a threat to US interests at present.
The new regime may expel former Argentine President
Peron whose use of Caracas as a headquarters for plotting
against the Aramburu regime caused a break in Argentine-
Venezuelan relations last July.
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CENTRAL INTELLIGENCE BULLETIN
23 January 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
The USSR and its Warsaw Pact allies may be plan-
ning to announce countermeasures to the December NATO
meeting decisions. The Soviet military attache in Warsaw
said that Khrushchev and Gomulka in their recent secret
meeting considered the interrelationship among Warsaw
Pact arrangements, the Rapacki plan, and the decisions at
the Paris NATO meeting. (Page 1)
New Soviet supersonic interceptors are probably in
pre-series production and may soon appear in Soviet fighter
units. These aircraft with maximum speeds ranging up to
Mach 2 will be a considerable advance over the transsonic
FARMER (M1G-19) which they will replace.
(Page 2) (Graphics)
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The Indonesian Government may soon be faced with
the loss of one of its most important sources of foreign
exchange. Anti-Djakarta authorities in Sumatra are ap-
parently planning to sequester oil export earnings. Indo-
nesian authorities have initiated measures aimed at thwart-
1n a barter trade between Sumatra and Singapore.
(Page 4)
King Hussayn of Jordan wants to discuss with King
Saud possible countermeasures to the proposed Syrian-
Egyptian union. Hussayn plans to revive his proposal of
a confederation of the three Arab monarchies�Jordan,
Saudi Arabia, and Iraq. Mutual suspicions and differing
ambitions will probably prevent the three states from act-
ing effectively on such a project.
(Page 5)
UN Secretary General Hammarskjold plans to push
ahead with his plan for a Middle East development fund,
financed by oil revenues, as the only approach in his view
now possible for preventing serious deterioration in the
area. His preliminary discussions with Britain and France,
as well as with selected Arab statesmen, have evidently led
him to believe that there are some prospects for success.
However,. Arab inability to work together on combined proj-
ects as well as strong local self-interests will be difficult
obstacles to overcome. (Page 6)
Recent information indicates that Egyptian Air Force
(EAF) strength on MIG-type fighters has increased to 120
23 Jan 58
DAILY BRIEF
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neaotiations with the Japanese have broken down.
ical interisland transportation problem after current
Indonesia intends to accept a Soviet offer, made in
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U. ASIA-AFRICA
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UN Secretary General Hammarskjold suggests bilateral
US-USSR disarmament talks under cover of a February meet-
ing of the Security Council at the foreign minister level, with
Britain and France occasionally included. Hammarskjold thinks
his plan might be accepted by the USSR as a means of bringing
about bilateral talks with the US and that such discussions might
eventually lead to a summit conference.
Clarification of Guatemalan election returns awaits Con-
gressional review beginning 23 January. The leftist Revolu-
tionary party has already emerged as an important political
force, and may have polled at least a quarter of the total vote.
23 Jan 58
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(80 MIG-17's, 40 MIG-15's) from a previously estimated
90. In addition, Egypt has another 28 older British jet
fighters for a total jet fighter strength of 148. Estimates
of 1L-28 jet light bomber strength have been raised from
35 to 45. These figures compare with 106 jet fighters
and no jet light bombers credited to the Israeli Air Force.
Despite some improvement in combat capability, the EAF
is still considered to be inferior to the Israeli Air Force.
DAILY BRIEF iii
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I. THE COMMUNIST BLOC
Secret Khrushchev-Gomulka Talks
At an Argentine Embassy reception in Warsaw on
20 January, the Soviet military attach�old the US mil-
itary attach�hat he under8tood the recent Khru-
shchev-Gomulka talks dealt with a consideration of the
interrelationship of the Warsaw Pact arrangements, the
Rapacki plan, and the December NATO decisions. Re-
ports that several Soviet and Polish generals were pres-
ent suggest that military affairs were a major topic. The
discussions may have ranged over other subjects, includ-
ing party affairs and economic aid to Poland.
Khrushchev told an American journalist in November
that the decision to equip Warsaw Pact forces with nuclear
weapons and missiles "will depend on the line to be followed"
by NATO countries. The Soviet leaders may be urging the
Poles to agree to Warsaw Pact countermeasures to the NATO
decisions. Gomulka, however, may have serious reserva-
tions about the stationing of advanced weapons in Poland,
and probably maintains that a Warsaw Pact meeting now
would be ill timed in view of current Western discussion of
the Rapacki plan.
Polish officials have been closemouthed about the talk.
British Foreign Office officials have commented that the
length of the talks suggests considerable disagreement, a
view supported by the fact that no official comment has been
made. They feel that Moscow's lead in announcing the meet-
ing may indicate that it was sought by Khrushchev.
23 Jan 58 CENTRAL INTELLIGENCE BULLETIN Page 1
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FITTER
FACEPLATE
- 7031.1 3
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New Soviet Fighters
Two new Soviet supersonic interceptors are probably
in pre-series production and may soon appear in operational
units. Several observations of the factory airfield at Plant
31, Tbilisi, during December established the presence of as
many as eight delta-wing fighters, believed to be Mikoyan-
designed FISHBEDS.
Plant 31 at Tbilisi and Plant 21 at Gorkly
were engaged in production of a new Mikoyan aircraft in two
different versions. Since the Tbilisi plant is apparently pro-
ducing Mikoyan's delta-wing FISHBED, Plant 21 at Gorkiy
may be producing his swept-wing FACEPLATE.
a new Mikoyan-
designed aircraft was undergoing service testing as early as
April 1957 when nine MIG-21's were scheduled for flights from
Shull airfield, a possible test center in the Crimea. On 16
November, two MIG-23's were scheduled to fly from Shull.
The Soviet numerical designations have not been equated to
the new planes seen by Western observers. Developments
since the first appearance of the FISHBED and FACEPLATE
in the 1956 Aviation Day air show indicate that these inter-
ceptors--capable of Mach 1.5 speeds--should soon appear in
operational units.
se-
ries production at Plant 126 at Komsomolsk of a new Su koi-
designed fighter which should also reach operational status
in the near future. This new aircraft may be the swept-wing
FITTER or the delta-wing FISHPOT�capable of speeds on
the order of Mach 2--which were first displayed in the 1956
air show.
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23 Jan 58
CENTRAL INTELLIGENCE BULLETIN Page 2
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61.1
II. ASIA-AFRICA
Indonesia Plans to Accept Soviet Offer of Small Ships
Indonesia intends to accept a Soviet offer to provide
60 small ships to solve its critical interisland transporta-
tion problem when negotiations with the Japanese break
down,
The present wrangling in
Tokyo over the Japanese offer of ships has been empha-
sized by the Indonesian Government largely to justify ac-
ceptance of bloc shipping. The Soviet offer was made in
December, but Indonesia hesitated to accept it publicly
until it was first made to appear that the government had
no other choice.
This maneuver is part of the Indonesian Government's
elaborate plans to avoid the appearance of a direct tie with
the Communist bloc. It hopes to have all purchases trans-
shipped through Egypt and to have actual deliveries made
by ships of non-Communist countries through the port of
Surabaya. In this way, the government hopes to make the
shipments acceptable to non-Communist elements in Java
and to avoid giving regional areas a pretext for taking sep-
aratist action, but their plans to disguise the origin of the
shipments are not likely to succeed.
Sixty ships suitable for Indonesia's needs could be
quickly supplied from the Soviet Far East merchant fleet,
but only at the risk of disrupting normal shipping opera-
tions in that area.
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23 Jan 58
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Indonesia's Economic Problems
The seriousness of Indonesia's economic problems
has again been underlined by the report that Finance
Minister Sutikno Slamet, one of the few competent mem-
bers of the cabinet, intends to resign unless barter trad-
ing by the outer regions is stopped. The regions have
made no move to reduce this illegal trade since the gov-
ernment's 11 January decree ordering all such trade to
cease, and Djakarta's ability to enforce its order is
limited.
Indonesian authorities are nevertheless attempting
to check illegal trading between Sumatra and Singapore.
The Indonesian consul in Singapore has informed local
shippers that bank guarantees would be required to cover
the value of ships as well as cargo for all transactions
under the so-called "legal barter trade." This action is
apparently designed to prevent ships engaged in this trade
from deviating from stipulated routes and ports of call.
Evidently as part of this effort, eight Singapore-registered
vessels are being detained by Indonesian authorities, pre-
sumably on grounds of illegal trading.
Meanwhile, Sumatran authorities have asked an Amer-
ican oil company to import 5,000 tons of rice monthly, pre-
sumably against oil export earnings hitherto paid to Djakarta.
This could eliminate one of the largest sources of foreign
exchange still controlled by the central government.
CONFIDENTIAL
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King Hussayn Concerned Over Egyptian-Syrian
Union Plans
Jordan's King Hussayn considers proposals for
Egyptian-Syrian union highly dangerous to Jordan, Saudi
Arabia, and Iraq, and desires to discuss possible counter-
measures with King Saud. In an attempt to offset the en-
thusiasm such a union would evoke in Jordan, Hussayn
plans to revive his proposal for a confederation of the three
pro-Western Arab monarchies, despite earlier coolness to
the idea from Baghdad and Riyadh. Hussayn will point out
that propaganda by the Syrian Baath party, a principal in-
stigator of the union scheme, has already carried antimon-
archical themes.
King Saud and Iraqi leaders would probably be reluc-
tant to follow Hussayn's lead in challenging Nasir, although
they will be ready to join in covert activity against the union
proposal. King Saud will probably feel that he must pub-
licly welcome an Egyptian-Syrian union as a move toward
Arab unity, although he would fear its antimonarchical over-
tones and the strengthening of Nasir's leadership. Iraqi
leaders would probably be concerned that their long-cherished
hope of Syrian-Iraqi union appears lost and that their domestic
prestige would be reduced while Nasir's stock would rise.
-SECRET--
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Middle East Development Fund
UN Secretary General Hammarskjold plans to push
ahead with his plan for a Middle East development fund
as the only approach now possible in his view to prevent
serious deterioration in the area. To start the project
rolling, a UN Secretariat study on the possibility of chan-
neling Middle East oil profits into a central banking sys-
tem for Arab development will be privately circulated to
interested UN members. Hammarskjold hopes that issu-
ance of the study will induce the Arabs to call a meeting
to organize such a bank. His preliminary discussions
with Britain and France as well as with selected Arab
statesmen have evidently led him to believe there are some
prospects for such economic cooperation among the Arabs.
Arab inability to work together on common projects and
strong local self-interests, however, will be difficult ob-
stacles to overcome.
The idea of utilizing Middle East oil revenues to fi-
nance inter-Arab development scheknes has been discussed
periodically for several years. The Arab League "decided"
in 1956 to form an Arab Development Bank, and last Decem-
ber Egyptian Foreign Minister Fawzi indicated that a prelim-
inary agreement had been reached by Egypt, Saudi Arabia,
and Iraq. However, the principal oil-producing countries
have so far been reluctant to make significant cash contribu-
tions.
III. THE WEST
No back-up material.
--SECRET-
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DISTRIBUTION
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
Assistant to Secretary of Defense for Special Operations
Deputy Director for Intelligence, The Joint Staff
Assistant Chief of 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
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CENTRAL INTELLIGENCE BULLETIN
23 January 1958
DAILY BRIEF
HEADLINE ITEM
* Venezuelan armed forces ousted President Perez
early on 23 January after two days of widespread vio-
lence resulting from a civilian-backed general strike. A
military junta replaced Perez and has announced its in-
tention to restore "peace and rapprochement" among all
elements of the population. Perez is believed to have left
by plane, possibly for the Dominican Republic, soon after
he was deposed.
The junta will probably continue Venezuela's pro-US,
anti-Communist policy, give civilian factions a substantial
voice in the new government, and gradually relax Perez's
tight controls over individual liberties and political activ-
ities. The possibility exists, however, that sporadic or
even widespread violence may occur, particularly if mil-
itary and civilian groups vie for control. This could en-
danger American residents and private investments in Ven-
ezuela even though not inspired by anti-US sentiment. There
is no indication of a threat to US interests at present.
The new regime may expel former Argentine President
Peron, whose use of Caracas as a headquarters for plotting
against the Aramburu regime caused a break in Argentine-
Venezuelan relations last July.
\\N
Indoneia intends la accept a Soviet offer, made in
December, to provide 60 small ships to solve its crit-
ical interisland transportation problem after current
negotiations with tile Japanese have broken down.
(Page 3)
ar ication of Guatemalan election returns awaits Con-
gressional review beginning 23 January. The leftist Revolu-
tionary party has already emerged as an important political
force, and may have polled at least a quarter of the total vote.
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