CENTRAL INTELLIGENCE BULLETIN - 1959/05/06

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03155126
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: May 6, 1959

Approved for Release:
3.5(c)
3.3(h)(2)
6 May 1959
Copy No, C 62
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
NO CI IANGE IN CI SSie
� .
LA.:-3!.';. C!-IANGED TO: k.g)
NEXT REVIEW DAIE: .
AUTH: Ificeelob
DATE. JVITEv:EwEn
TOP ET
rrr ZA-pp-ro-ved for Release: 2020/02/21 CO31551267 Z/Z1/114
Approved for Release: 2020/02/21 C03155126
*AP am V � 11 is aft
TA% rh Andra
Approved for Release: 2020/02/21 C03155126
6 MAY 1959
I. THE COMMUNIST BLOC
suppression of Tibetan rebel activity
in another major area.
IL ASIA-AFRICA
Jordan - Husayn's choice of Majalli
to form cabinet aligns King with
Bedouin faction of army; instability
. possible.
Iraq - Qasim pleased by British
decision to sell him arms; British
reiterate conditions.
Promising oil strikes in Libya.
Nehru may reshuffle cabinet; no
significant shifts in Indian policy
expected.
Malaya - Racial tension highlighted
by recent Chinese-Malay riots.
�i#
0 ,
0
I I
Approved for Release: 2020/02/21 C03155126
-
Hi\ r'is
Tl CRET
Approved for Release: 2020/02/21 C03155126
,
III. THE WEST
N.
Conclusions of special USIB
committee on Berlin situation.
7/
Approved for Release: 2020/02/21 C03155126
sis ' -
$*0/
CENTRAL INTELLIGENCE BULLETIN
I.
s\c'N'y
Tibet:
6 May 1959
DAILY BRIEF
L THE COMMUNIST BLOC
--eastern Tibet--
had been suppressed after ten days of fighting beginning about
18 April. !.,500 rebels were killed,
wounded., or taken prisoner, ana more than 1,100 weapons
were captured during the fighting in Changtu.
This is the second of three major
areas of unrest now reported to have been brought under con-
trol, leaving Tsinghai Province the only important area of rebel
activity unreported. Small-scale guerrilla activity can be ex-
npri-pri to nntirnip for sornP time even in the secured areasi
IL ASIA-AFRICA
Jordan: Premier-designate Hazza Majalli has formed
a new cabinet following the resignation of Premier Rifai on
5 May. The King's designation of Majalli appears to tie the
King more closely to the militant Bedouin minority which dom-
inates the army the monarchy's principal support. Majaili,a,
British protege, who briefly served as premier during the un-
successful attempt to take Jordan into the Baghdad Pact in
December 1955, is related to some of the Bedouin army offi-
cers who have intrigued against Army Chief of Staff Shara and
Rusayn's support of the Bedouin may alienate vociferous
segments of the population, and open the way for resumption of
instability in the government and army which -was chronic before
Rifai took over the leadership in the spring of 1957.
(Page 1)
7/19P/
AApproved/ for Release: 2020/02/21 C03155126'
/
,
. Approved for Release: 2020/02/21 C03155126 4f,V 4.7
�4,
@n 3 May, the British ambassador informed
Qasim of London's decision to sell Iraq arms including
tanks and Canberra bombers. The ambassador reiterated
the British expectations that' Iraq would remain free of
Communist control, keep oil flowing to Europe, and improv
trade ties with Britain. Qasim seemed genuinely pleased by
British willingness to sell arms but made no substantive com-
ment:2j (Page 3)
Libya: Libya may soon develop into a major new oil
area. he latest discovery well by Standard Oil Company.
of New Jersey, located 200 miles south of Bengasi, tested
at a rate of more than 2,400 barrels per day.
estimates a production potential for this well in excess
of 10,000 barrels a day. Libyan oil could be highly competitive
with other Middle East crude. (Map)
(Page 4)
India: laehru may reshuffle his cabinet shortly to com-
pensairfor the partial loss of the services of Home Minister
Pant, who recently suffered a heart attack. The changes are
not expected to result in any significant shifts in cabinet poli-
cies. Finance Minister Desai, an equally strong individual,
may replace Pant. Desai is considered a leading candidate f
the prime ministership when Nehru dies or retires. C. 1).
Deshmukh, a highly respected, conservative finance ministe
may return to the Finance Ministry, thus ensuring continued
capable handling of Five-Year Plan and foreign aid problems.
Some move may be made by cabinet members to replace De-
fense Minister Krishna Menon in the reshuffle, but it is doubt-
ful that it will succeed (Page 5)
Malaya: Recent Chinese-Malay riots on an island off the
Malayan coast highlight the serious underlying racial tensions
In the Federation of Malaya. Communal disorders could also
develop on the mainland as a result of political agitb.tion dur-
Ma the state and federal election campaigns now under way.
(Page 6)
6 May 59
DAILY BRIEF ii
T9SERET
, Approved for Release: 2020/02/21 CO3155126 Atvr / A
4( /
-4/
//
oY-
-e/
V./';
, /Dr
AApproved for Release: 2020/02/21 CO3155126
Approved for Release: 2020/07271 a-3155126
III. THE WEST
Iv. CONCLUSIONS OF SPECIAL USIB COMMITTEE
ON BERLIN SITUATION
The USIB has taken note of the following conclusions reached
by its special committee on the Berlin situation. The committee
pointed out that its conclusions were to be used in context with
SNIE 100-2-59 (24 February 1959) and with the review of that es-
timate in SNIE 100-2/1-59 (17 March 1959):
1. e USSR appears to be concentrating more on
the issue of West perlin in anticipation that this rather
than the question of a peace treaty will be its strongest
card at the Geneva foreign ministers' meeting. However,
there are indications that the USSR will attempt to have
the West discuss the draft Soviet peace treaty for Germany
paragraph by paragraph
Soviet propaganda media are attempting to under-
cut the Western concept of an indissoluble package on re-
unification, European security, disarmament, and Berlin
before the talks begin, to divide the Allies, to build pres-
sures on Western governments to move toward Soviet
positions, and to prepare the ground for blaming the West
for any failure to reach agreement.
2. Debate in the French National Assembly provided
a strong demonstration of support for De Gaulle's posi-
tion on Berlin and related German questions.
3. The May Day Freedom rally in West Berlin, with
an estimated crowd of at least half a million--as large or
larger than those led by Reuter during the 1948 blockade--
indicates morale in West Berlin remains strong. There
were no significant changes in West Berlin's economic
situation.
4. While it is highly improbable that the USSR will
turn over access controls to the GDR unless there is a
DAILY BHIEF
6 May 59
iii
47.4444-
,7Av
a
Approved for Release: 2020/02/21 C03155126 ...,..... , , ,
-44 *iiie
breakdown in East-West negotiations, the physical
transfer could be accomplished with little or no warn-
ing.
5. There are no reliable indications of a bloc in-
tent in the near future to blockade Allied or West German
access to West Berlin, or to seal off West Berlin from
the bloc. However, the Uqqp enuld take such actions
with little or no warning.
6 May 59
DAILY BIllEF iv
CRET
r
4Approved for Release: 2020/02/21 C03155126 A A /
, ,
Approved for Release: 2020/02/21 C03155126
I. THE COMMUNIST BLOC
No Back-up Material
II. ASIA-AFRICA
Hazza Majalli Forms New Jordanian Cabinet
Premier-designate Hazza Majalli has formed a new cabi-
net, following the resignation of Premier Rifai on 5 May for
reasons of "health." The new cabinet was scheduled to be
sworn in on the morning of 6 May. although the 60-year-old
Rifai endured three mild heart attacks during the last year,
his resignation actually was intended as a maneuver to obtain
the King's reaffirmation of his authority, including the premier's
support of Army Chief of Staff Major General Sadiq Shara. Shara
had been accused by Bedouin army officers of plotting against
the monarchy. Rifai had also been at odds with the "lialace
clique," which has long sought his replacement He had been
premier since May 1958; he was de facto government strongman
for the year before that as deputy premier to ailing Ibrahim
Hashim.
The King's selection of Majalli would appear to commit the
King more closely than ever to the militant Bedouin minority
whose domination of the army has ensured the monarchy's surviv-
al. The Bedouin number about 300,000 out of Jordan's total popu-
lation of 1,500,000. Among the Bedouin, the officers of the Ba,ni
Sakhr tribe form the most potent bloc. This group, during Husayn's
absence on his world tour, further enhanced its position through
accusation and arrest of members of a rival officer clique from
northern Jordan--the maneuver which led to the resignation of
Rifai.
Hazza Majalli, former British protege] who served briefly
as premier in December 1955 during the unsuccessful attempt to
take Jordan into the Baghdad Pact, is distantly related to the
SEC
6 May 59
CFKITI2A1 ftJTFI I ICIENCE BULLETIN
Approved for Release: 2020/02/21 C03155126
Page 1
Approved for Release: 2020/02/21 C03155126
v.,00
prominent Bedouin officers of the Majalli family in the Bani
Sakhr tribe, who led the intrigues against Shara and Rifai.
He has in the past had fairly good relations with the pro-UAR�,
ultranationalist National Socialist party, and this might im-
prove the prospects for a normalization of relations with the
UAR. Unless some accommodation to the nationalist view is
made, Husaynts decision to go along with the Bedouin in this
instance could narrow further the basis of the monarchy's sup-
port in Jordan. It might thus open the way for a resumption of
instability in the government and army which was chronic before
Rifai took over government leadership.
6 May 59
CENTRAL INTELLIGENCE BULLETIN Page 2
Approved for Release: 2020/02/21 C03155126
Approved for for Release: 2020/02/21 C03155126
*see
American Embassy Assessment of Iraqi Situation
a)evelopments in Iraq during the past five weeks lead theL
US Embassy to conclude that the drift toward a Communist
state is continuing at a steady rate. Ambassador Jernegan
now feels that Premier Qasim is the only possible force in
Iraq capable of turning the government away from its left-
ward course
Nasim said on 3 May that Britain's agreement to sell Iraq
heavy military equipment was a "new page turned in British-
Iraqi relations" and reiterated that his government intends to
remain "free of both East and West." Both Qasim and anti-
Communist Foreign Minister Jawad have told the American
ambassador within the past week that Iraq would not "go Corn-
munist."'7
(py and large, however, strong anti-Communists have been
liquidated by arrests, purges, and forced retirements. Real
control of the army appears to be in the hands of pro-Commu-
nists and political neutrals, and members of the Communist
party will probably be included in the cabinet soon. The
Communist-controlled Popular Resistance Forces are grow-
ing both in size and effectiveness; Communist-directed mass
organizations, having received at least an indirect blessing from
Qasim� are continuing to expand. The Communists already
control the propaganda media, are consolidating their control
over the educational system, and are maneuvering to bring the
economy under the control of a Soviet-model planning system:-/
6 May 59
CENTD A I IkITCI I irtckirc EH II I CTIAI
Approved for Release: 2020/02/21 C03155126
Page 3
Approved for Release: 2020/02/21 C03155126
NIS None
MALTA
(U.K.)
k 4
t,-, 0,
-', (3-0 �, �
o
GREECE
MEDITERRANEAN SEA
BENGASI
Gulf
of
Sirte
OA .1 BAH!
OASIS DAHRA 0
8-1-32 "----1...�OASIS DAHRA B-1-32
�CFP NO.B 1-49 �STANDARD(N.J.)
NO.1 ZELTEN
Approved for Release: 2020/02/21 C03155126
Approved-inor ITelease: 2020/02/21 C03155126
'vow'
Libya's Oil Prospects Become Increasingly More Favorable
Discoveries in Libya during the past 18 months have indi-
cated the presence of oil in commercial quantities. Libya
awarded its first concession on 20 November 1955.
Seven successful wells have been drilled thus far: three
along the western border near French Sahara and Tunisia and
four located 50 to 100 miles south of the Gulf of Sirte. One of
these four drilled by Standard Oil Company (N. ) tested at
more than 2,400 barrels per day, and es-
timates it has a production potential in excess of 10,000 barrels
per day.
The other three important discoveries have been made in
this area by the Oasis Oil Company, which brought in three
promising wells less than 75 miles south of the Gulf of Sirte.
Together, they have an estimated potential of 2,200 barrels per
day. Additional drilling is under way to determine the extent
of the fields.
Since 1955 most of the major international oil companies
have acquired concessions in Libya, but earlier hopes that sub-
stantial quantities of oil would be quickly discovered in western
Libya near the French Saharan fields have faded somewhat.
Despite the Libyan prohibition against companies owned or con-
trolled by foreign governments, British Petroleum and Cie.
Francaise des Petroles, both largely government owned, have
been granted concessions. Thus far the foreign-government pro-
vision has been invoked only against the Italian firm Ente Nazion-
ale Idrocarburi.
Libyan oil could be highly competitive with other Middle East
crude since it is closer to European markets.
CONFIDENTIAL
6 May 59
(-FNMA! IKITFI I inFmrp RI III PTIKI Page 4
Approved for Release: 2020/02/21 C03155126
--me"
Approved for Release: 2020/02/21 C03155126
Indian Cabinet Reshuffle Likely in lIenr Thrhire
LA reshuffle of the incuanicaomet may taimplace shortly.
Prime Minister Nehru apparently plans to move Finance Min-
ister Morarji Desai to the Home Ministry--a steppingstone to
the prime ministership--to replace Home Minister Pant, who
recently suffered a heart attack. While the capable 71-year-old
Pant is expected to be able to return to work in about a month,
it is unlikely that he will be able to hold the demanding post of
home minister. He may be made a minister without portfoliQ
giesai, a 63-year-old moderate socialist, is an able admin-
istrator. He won national reputation as chief minister of Bombay
State from 1952 to 1956 when Bombay was generally conceded to
be the best-run state in India. He was commerce minister from
1956 to 1958 when he became finance minister. As home minis-
ter, Desai would be in charge of India's internal administrative
and political affairs, a responsibility ranking immediately under
that of the prime ministership_oi
aehru apparently is considering the appointment of former
Finance Minister C. D. Deshmukh as minister of finance,. Desh-
mukh, who held this post from 1950 to 1956, has had extensive
experience in both Indian and international financial matters and
is widely respected throughout the country. His appointment
would ensure continued capable handling of the Five-Year Plan
and foreign aid problems. He has differed with Nehru in the
past because of his somewhat more conservative approach to
economic and financial problems.]
65efense Minister Krishna Menon apparently is in trouble
over his handling of the recent incident in which Pakistani fighter
planes shot down an Indian Canberra bomber. The Canberra re-
portedly was sent on a photo-reconnaissance mission at his ex-
press order against the advice of his chiefs of staff. In addition,
Menon, who in the past had done a good job as defense minister,
apparently is no longer getting along well with Army Chief of
Staff General Thimayya. Because of his close ties with Nehruc,
however, it seems unlikely that Menon will be fired./
SECKET
6 May 59
rpKITD A I IkITCI I IrICkiriC Dl iii CTIki
Approved for Release: 2020/02/21 C03155126
Page 5
Approved for Release: 2020/02/21 C03155126
Riots in Malaya Underscore Racial Tensions
The Malayan Government's concern over racial tensions is
reflected in Prime Minister Abdul Razak's hurried visit on
3 May to the scene of the Malay-Chinese communal riots on
Pangkor Island about 100 miles northwest of Kuala Lumpur.
Further indications of this concern were the government's ef-
forts to suppress the news and later to play down the racial
aspects of the riots.
The trouble apparently began on 1 May when a Malay mo-
lested a Chinese girl. The subsequent riot spread rapidly and,
according to press reports, soon involved nearly all of the is-
land's 3,000 linhabitants,. One person was killed and ten injured.
The situation was finally brought under control by 200 police re-
inforcements� including a special riot squad.
The incident highlights the serious underlying racial ten-
sions in Malaya; where 37 percent of the population is Chinese.
These tensions are likely to increase as a result of political
agitation during the current campaigns for the state elections
in May and June and the federal elections in August. Wide-
spread disorders could destroy the ruling multiracial Alliance
party and with it the concept of Malay-Chinese political coop-
eration upon which stability in Malaya depends.
CONFIDFJ1TIAL
6 May 59
CENTRAL INTFi I InFkir-F 111111F-rim Page 6
Approved for Release: 2020/02/21 C03155126
tiaer
Approved for Release: 2020/02/21 C03155126
Nay
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
C ENTIAL
_Approved for Release: 2020/02/21 C03155126
Zie"�rro'veZd foTosscRr Release: 20(702{21 CiT31{5{(64w,
TOP ET
ZZ/WAPOroved for Release: 2020/02/21 C03155 2 6 fzmmmm,e,-,