CENTRAL INTELLIGENCE BULLETIN - 1959/01/27

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03023335
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: January 27, 1959

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�TIZOP�SIEUMT� 3.5(c)
3.3(h)(2)
27 January 1959
Copy No. C 63
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
6
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NEX1 Fitz v iE:V.,1
ADuATTivt REVIEWER:
-TOP-SECRET
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2'7 JANUARY 1959
I. THE COMMUNIST BLOC
In talks with Finnish President, Khru-
shchev renews aid offers but publicly
warns against criticism of the USSR. 0
II. ASIA-AFRICA
Moroccan Government apparently
preparing to cope with tribal dissi-
dence in Middle Atlas area.
0 i
Thailand - Sarit may be incapacitated; i.
possible initial succession by Thanom
and Prapat might be challenged by mil-
itary subordinates.
Afghan prime minister to visit India in
February; probably hopes to secure
technical assistance and trade conces-
sions from India.
Ceylon signs contract for Soviet-designed
steel mill.
I
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III. THE WEST
0 Italian coalition cabinet ppears un-
likely; Christian Democratic cabinet
a possible temporary solution.
0 Guatemalan charge that Mexican forces
are massing on border is unsupported.
0 Cuba "accepts" US offer to withdraw
military missions; in Venezuela, Castro
calls for liberation of Puerto Rico and
overthrow of Latin American dictators.
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/// SECRET
CE TRAL INTELLIGENCE BULLETIN
27 January 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-Finland: In talks with Finnish President Kekkonen,
Khrushchev renewed earlier Soviet offers of trade credits and
aid in developing Finnish industries. The two men agreed to
negotiate a 1959 trade protocol "very soon" and, in the spring,
a new long-term trade agreement. In a highly publicized
speech on 23 January, Khrushchev warned against forming
such governments as the recently fallen Fagerholm coalition,
and against allowing elements in the Finnish press--"well
paid by reactionary circles and possibly subsidized by third
countries"--to criticize the USSR and Soviet-Finnish relations.
(Page 1)
II, ASIA-AFRICA
Morocco: The transfer of Moroccan military command
headquarters from Tetuan to Fez suggests that the authorities
are preparing to cope with a resurgence of tribal dissidence in
the Middle Atlas as well as in the Rif area. Meanwhile, the left
wing of the dominant Istiqlal party--the faction holding most key
government posts--seems determined to wrest party control from
the traditional and more conservative leaders. (Page 2)
(Map)
Thailand: CMarshal Sarit, who now may be near total in-
capacitation, is expected to be succeeded initially by a duumvirate
composed of General Thanom, his deputy, and General Prapat,
the Bangkok military area commander. Their succession might
however, be challenged by certain of their subordinates who PX-
ercise direct command over armed units in the _capital?
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qiu01
Afghanistan: Afghan Prime Minister Daud's long-planned
official visit to India has been scheduled for 5-13 February.
The composition of Daud's party suggests that Kabul wishes
to secure Indian technical assistance and trade concessions.
Kabul probably hopes to gain advantage from New Delhi's con-
ern over Soviet economic penetration in Afghanistan and the
displacement of India by the USSR as Afghanistan's largest
Ceylon: Colo1Jsmbo on 24 January signed a contract accept-
ing the R's offer to design a steel mill which has been under
consideration since early last year. The mill will be the largest
Soviet project to be undertaken under the bilateral economic and
technical cooperation agreement signed in February 1958. Other
projects for which contracts have been signed include a Soviet
wheat-flour mill and a Soviet-designed dam and hydroelectric
power station. (Page 4)
III. THE WEST
Italy: President Gronchi's negotiations for a successor to
Christian Democrat Amintore Fanfanils government are expected
to start on 28 January, presumably with a plea for the re-forma-
tion of a coalition government. A coalition appears unlikely for
the present, however, and a Christian Democratic cabinet de-
pending on ad hoc parliamentary support from parties on the right
or left may be the temporary solution. Possibilities for pre-
mier include left-of-center ex-Premier Segni and two rightists,
Interior Minister Tambroni and ex-Foreign Minister Piccioni.
(Page 5)
Mexico-Guatemala: Despite Mexico's severance of diplomatic
relations with Guatemala on 23 January over a shrimp boat dispute,
there is no confirmation of Guatemalan charges that Mexican forces
are massing on the frontier. Guatemalan ground fOrces apparently
are being ordered to stay 15 miles from the Mexican frontier;
incidents could arise, however, from the activities of Guatemalan
27 Jan 59
DAILY BRIEF Page ii
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aircraft which are permitted to fly to within three miles of
the frontier. Guatemalan President Ydigoras seems more
Interested in making political capital out of the dispute than
In settling it rapidly. (Page 6)
Cuba: Fidel Castrq during his visit to Venezuelatattacked
the giirri-d States both publicly and privately. He called for the
"liberation" of Puerto Rico from the US along with the overthrow
of Latin American dictators: Following Castro's attacks on US
military missions the Cuban Government has formally "accepted"
the US offer to withdraw the army, navy, and air missions.
(Page 7)
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DAILY BRIEF
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NINO Nier
I. THE COMMUNIST BLOC
Soviet-Finnish Talks
In the course of his talks with Finnish President Kekkonen,
Khrushchev renewed earlier Soviet offers of credit and aid in
developing Finnish industries. He agreed to negotiate a 1959
trade protocol "very soon" and, in the spring, a new long-term
trade agreement--reportedly to be extended from five to seven
years. According to the press, the USSR has also agreed to
replace the Soviet ambassador to Finland who was abruptly
withdrawn last September.
In a highly publicized speech on 23 January, Khrushchev
stated that the USSR wants "improved" relations, but he warned
Finland against forming such governments as the Fagerholm
coalition, and against allowing elements in the Finnish press--
"well paid by reactionary circles and possibly subsidized by
third countries"--to criticize the USSR and Soviet-Finnish rela-
tions. He expressed hope that the newly formed Sukselainen
government would "help strengthen friendship between the two
countries."
The Finns have indicated relief over the thaw in relations
with Moscow but are concerned that President Kekkonen may
have further circumscribed Finland's "neutrality" to suit the
USSR. The success of Soviet pressures in bringing about
the replacement of a government which Moscow distrusted will
further limit Finland's freedom of choice in the composition of
future governments.
27 Jan 59
CONFIDENTIAL
CENTRAL INTELLIGENCE BULLETIN
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PRINCIPAL AREAS-OF BERBER
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II. ASIA-AFRICA
Moroccan Instability Mounts
The transfer of the Moroccan military command headquar-
ters from Tetuan to Fez suggests that the authorities are pre-
paring to cope with a resurgence of tribal dissidence in the
Middle Atlas as well as continue some operations in the Rif
area. Crown Prince Moulay Hassan, who assumed personal
command of operations in the Rif region of northern Morocco
earlier this month, was recently joined in Fez by the Moroccan
defense minister. At the same time, regular bus service has
been resumed from Tetuan to Melilla, indicating that tension
has eased somewhat in northern Morocco.
The American Embassy reports that the principal guer-
rilla menace in the Middle Atlas is centered in the upland and
mountain region south of a line from Fez to Taza and that ac-
tivities are directed by a dissident tribal leader who is still
at large. The Arabic-language press also reports disturbances
in several areas of west central Morocco.
Meanwhile, the intra-Istiqlal struggle for control of the
party's directorate was intensified this week end when the
party's left wing--which occupies most key posts in the Ibra-
him government and was the principal critic of the more mod-
erate Balafrej regime--moved to wrest control from traditional
and more conservative party leaders. Mehdi ben Barka, acting
party secretary general while Balafrej was preoccupied with
governmental responsibility, has for some time been lining up
grass-roots support for the left wing. He has a considerable
following in his own right among students and youth and is al-
lied with leaders of the Moroccan labor union. The left wing
presumably will make a strong bid for Berber tribal support
which would serve to enhance its own prestige and further dis-
credit the party's nominal leaders, as well as to strengthen the
Ibrahim government.
The week end move by the left wingers--their latest and
boldest--did not long go unchallenged, however. Following an
emergency meeting of the conservative-controlled Istiqlal
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executive committee on 26 January, Ben Barka and several
of his close associates, including agriculture minister Ammar,
were announced as expelled from the party.
Clashes between partisans of the left wing and conserva-
tive Istialal factions are possible,
the
former Moroccan interior minister who served in the conserva-
tive Balafrej cabinet was reorganizing "an army" to operate
against a group commanded by Fquih el Basri who is aligned
with Ben Barka.
�rop-sEERET
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Ceylon Signs Contract for a Soviet-designed Steel Mill
Ceylon and the USSR on 24 January signed a contract un-
der which the Soviet Union will design the island's first steel
mill. While the mill will be the largest of the few Soviet
economic projects Colombo has accepted under a $30,000,000
loan agreement signed on 25 February 1958) it apparently is to
be a relatively small-scale undertaking. It is expected to pro-
duce 35,000 to 50,000 tons of rolled metal annually, and prob-
ably will not cost over $10,000,000. Soviet specialists report-
edly will be sent to Ceylon soon.
The principal immediate effect of this signing may be to
win some prestige for the Bandaranaike government, whose
long-standing promises of economic development have had few
visible results to date. Over the long run, however, the proj-
ect may prove to be impractical, since Ceylon lacks iron ore
and will probably have to utilize imported scrap metal.
Colombo began to utilize the Soviet credit offer only re-
cently. The first specific Soviet project to be accepted was
a $4,200,000 wheat-flour mill last December. Since then, con-
tracts reportedly have been signed for a Soviet-designed dam, a
hydroelectric power station, and other irrigation facilities in
northern Ceylon. The USSR has also supplied mechanics and
equipment for a sugar factory being built by Czechoslovakia in
northeastern Ceylon.
� Contracts for other Soviet undertakings may be signed in
the near future since the Ceylonese Planning Council expects
to finalize a ten-year development plan within the next three
months.
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III. THE WE ST
Italian President Seeks New Premier to Replace Fanfani
President Gronchi faces complicated negotiations for for-
mation of a government to succeed that of Amintore Fanfani,
who resigned on 21 January. With several Democratic Social-
ists dedicated to the idea of reunification with the Nenni Social-
ists and formation of a democratic oppositions it appears that
at best only a fragment of the small Democratic Socialist group
could be persuaded to return to the Italian Government in the
near future. Party leader Saragat, who has favored keeping
the party in the government, may be outvoted at the central
committee meeting scheduled for 31 January, according to the
chief of the Democratic Socialist labor union.
If the Christian Democrats form a minority government,
they will first face an internal struggle to determine whether
it is to depend on support from the right or left. A right-of-
center government, under a rightist such as Interior Minister
Tambroni or former Foreign Minister Piccioni, might look to
the Monarchists and Liberals for support. A left-of-center
government, possibly under former Premier Segni, would
probably hope for Socialist support. Either government might
also depend on ad hoc support from right or left depending on
the measures involved.
Should the problem not be solved by the Christian Dem-
ocratS' party congress from 11 to 13 April, President Gronchi
might see fit to call national elections during 1959. Gronchi
may feel that Nennits victory over the pro-Communists in his
party has strengthened his ability to draw both Democratic
Socialist and dissident Communist support if elections are
held soon. He may feel also that the increased possibility of
future parliamentary support from the Nenni Socialists might
similarly increase the strength of the Christian Democratic
left wing in new elections.
If such elections are decided on, Parliament will prob-
ably be dissolved by April, since Italrs postwar custom has
been to hold national elections before summer and to allow
virtually all of the statutory 70-day waiting period to elapse.
,SECKL1
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Nor, Nue
Mexican-Guatemalan Fishing Dispute Worsening
Guatemalan President Ydigoras has rejected Mexico's pro-
tests over the strafing of its shrimpers while they were allegedly
violating Guatemalan territorial waters and has refused to sub-
mit the matter to the International Court of Justice. He repu-
diated conciliatory statements by his ambassador to Mexico,
charged that the boats were smuggling arms, made unsubstan-
tiated charges of a Mexican military build-up, and intimated
that he fears an invasion.
The Mexican boats may well have been within three miles
of the Guatemalan coast, where shrimping close to shore is
known to be good. Mexico's strongest argument is that the straf-
ing attack, which killed three and injured 14, was not justified
"police action" as claimed by Ydigoras. Ydigoras' exploitation
at this time of a long-standing Mexican practice seems pri-
marily designed to strengthen his domestic political position.
Although Ydigoras probably does not want an armed conflict
and has ordered the army to stay 15 miles from the border,
he has authorized Guatemalan Air Force reconnaissance flights
within three miles of Mexico, where a slight miscalculation
could cause a serious incident
Mexico appears genuinely determined to settle the issue
peacefully, despite inflammatory attacks on Ydigoras by
Guatemalan exiles in Mexico and by nationalistic Mexican news-
papers and student and labor groups.
CONFIDENTIAL
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Cuban Leader Continues Bitter Attacks on United States
Fidel Castro bitterly attacked United States policies dur-
ing his triumphal visit to Venezuela which began on 23 January.
Before wildly cheering crowds in Caracas, he charged the
United States with intervening in favor of dictators ever since
Cuba became independent. In the same context in which he
urged an international campaign against remaining Latin Amer-
ican dictators, he publicly called for the "liberation" of Puerto
Rico from the United States. He claimed that even now "the in-
ternational monopolies" are campaigning to discredit the Cuban
revolution.
Castro's speeches in Venezuela have continually emphasized
the call for the unity of the "democratic" nations of Latin Amer-
ica, with Cuba and Venezuela in the forefront, to provide "de-
fense from dictators at home as well as from the encroachments
of alien interests." He repeatedly urged unity against the re-
gimes in the Dominican Republic, Nicaragua, and Paraguay.
He referred to the Organization of American States as a worth-
less organization. One Venezuelan commented that Castro had
come to expound a new doctrine--a Latin American doctrine as
opposed to a hemispheric one.
On 24 January, after Castro had repeatedly attacked the US
Army, Navy, and Air missions for the training they gave the
Cuban armed forces under Batista, the Cuban Government "ac-
cepted the offer" of the United States to withdraw the missions.
However, the details of the withdrawal are still to be discussed.
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CO
TTIAL*vs"
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 and Civilian Mobilization
Special Assistant for Security Operations Coordination
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 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
The Department of the Interior
The Secretary of the Interior
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
United States Information Agency
The Director
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