CENTRAL INTELLIGENCE BULLETIN - 1960/05/13

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03160547
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: May 13, 1960

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TOP SECRET
CENTRAL
13 May 1960
Copy No. C
INTELLIGENCE
BULLETIN
DOCUMENT NO. t�
NO OMANDE IN CLASS.
DECLASSIFIED
CLASS, MINED TO TS $
NEXT N.VLW DAThi.021104-0
ACTH: . DK 104
9 JUN 1980
DATE: REVIEWER:
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13 MAY 1960
I. THE COMMUNIST BLOC
Soviet lest range continues preparations
for possible launch.
II. ASIA-AFRICA
Moroccan protests likely when US re-
turns Rabat base facilities to French
on 1 July.
Ethiopia--Emperor asks early reply on
request for increased US military aid,
hinting at Soviet alternative.
Belgian Congo--Security deteriorating
in Katanga Province.
Southeast Asian countries protest US
surplus rice sales in area.
Indonesian opposition leaders hope to
reduce Sukarno to figurehead.
South Korean stand against repatriation
to North Korea remains stumbling block
to normalization of relations with Japan.�
III. THE WEST
0 Anti-American demonstrations may oc-
cur in Peru today.
0 Panama--Government will probably de-
clare Chiari winner of presidential
election, but not before 16 May.
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CENTRAL INTELLIGENCE BULLETIN
13 May 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR: Activities at the Tyura Tam Missile Test Range
continue to indicate, as they have for the past two weeks,
preparations for a launching in the near future. Aircraft
which. in the past have flown from Moscow to the rangehead
shortly before a launching have been noted under way from
Moscow on 9-10 May. Remaining optimum times for a lunar
impact launch this month are 1255 GMT Friday and 1355 GMT
Saturday.
II. ASIA-AFRICA
Morocco: a_\dorocco will probably again protest the turn-
over of US base facilities to the French when an American pit
withdraws on 1 July from the French air base at Rabat-Sale.
Moroccan officials, including the King, continue to demand that
all facilities used by American forces, including those at French
bases, be handed over to the Royal Moroccan Armed Forces. Pos-
sible attempts of Moroccan forces to seize the areas as US units
withdraw could lead to clashes with French troops. The French
military command in Morocco has no plans to use the US-occupied
site at Rabat-Sale but considers it an integral part of the French
base, and "no thought is being given" to inviting Moroccan forces
to occupy it when the American unit withdraw!9
(Page 1)
Ethiopia: EEmperor Haile Selassie asked the US on 11 May
for additional heavy army weapons as well as equipment for 26,000
police. He stressed his belief that the impending independence and,
union of Somalia and the British Somaliland protectorate pose, a
grave threat to adjacent Ethiopian territory. The Emperor asked
for an early reply so that if it were negative, he could make "other
arrangements." The USSR reportedly offered military assistanc_ej
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On 30 April. The American ambassador believes that US re-
lations with Ethiopia have reached a crisis and that the USSR
is "pushing hard" to capitalize on the situation.]
(Page 2)
Belgian Congo: Popular apprehension and administra-
tive paralysis in mineral-rich Katanga Province appear likely
to give rise to serious disorders there in the period leading up
to Congolese independence on 30 June. Belgian provincial offi-
cials, by failing to take vigorous action against strikes which
began in early May, have contributed to an atmosphere of con-
fusion and uncertainty. (Page 3)
Southeast Asia: aoutheast Asian rice-producing countries
are becoming increasingly bitter over sales of US surplus grains
In Asian markets. Thai officials have objected strongly to the
US agreement of 4 May to sell India 17,000,000 tons of surplus
wheat and rice over a four-year period. The foreign minister
says he may not attend the May SEATO meeting in Washington.
Burma's leading anti-Communist paper warns that the agree-
ment may drive Burma to new barter deals with Communist
countries. South Vietnam holds earlier US surplus rice sales
to Indonesia partly responsible for its 100,000 tons of unsold
rice (Page 4)
Indonesia: The expanding anti-Communist Democratic
League hopes to capitalize on popular dissatisfaction with the
present inefficient government to reduce Sukarno to a figure-
head, There are reports that
the league, with army encouragement, may organize a large
demonstration in Djakarta on 20 May "National Reawakening
Day"--to emphasize its popular support. League officials are
concerned that Sukarno, on his return from abroad early next
month, may undercut his critics by seizing on the emotional
Issue of the upcoming Dutch naval visit to West Irian (Nether-
lands New Guinea)._
13 May 60
DAILY BRIEF ii
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South Korea - Japan: South Korean Acting Chief of State Huh \
F\
Chung's firm stand against present arrangements for the repatria-
tion \
0
1 of Koreans in Japan to North Korea is a major obstacle to
any improvement in relations between Seoul and Tokyo. While Huh
01J 0 is now willing to resume negotiations prior to a cessation of or-
ganized mass repatriation, he has warned that this is an essential
0 condition for a settlement of outstanding problems. Japanese of-
ficials have indicated it is impossible for them to stop the repatri-
ation program. (Page 5)
012
III. THE WEST
Peru: The Peruvian Labor Confederation, which is dominated
by the leftist but non-Communist APRA party, has called a 24-
hour general strike for 13 May in protest against recent "massacres"
of peasants and workers at several foreign-owned installations, in-
cluding two US-owned companies where police efforts to subdue dis-
orders resulted in the deaths of six demonstrators during the first
week in May. The strike, together with a student-worker meeting
planned by the APRA-controlled student organization, could result
in strong anti-American demonstrations.
(Page 6)
*Panama: The Panamanian Government is expected to declare
opposition Roberto Chiari the winner of last Sunday's presi-
dential elections, but will probably postpone the announcement until
16 May in order to avoid influencing the municipal elections of 15
May. Although some leaders of the government party are reliably
reported to be discussing measures to prevent Chiari from taking
power, many, supporters of Ricardo Arias, the administration-
backed candidate, have privately conceded his defeat. Violence
against the government would probably ensue if on 16 May the re-
gime were to attempt to declare Arias the victor.
(Page 7)
13 May 60
DAILY BRIEF
ill
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IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
Outlook for Lebanon. SNIE 36.4-60. 10 May. 60.
Soviet Capabilities in Guided Missiles and Space Vehicles.
NIE 11-5-60. 3 May 60.
\
13 May 60 DAILY BRIEF iv
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I. THE COMMUNIST BLOC
II. ASIA-AFRICA
Moroccans May Protest Relinquishment to French of
US Base Facilities
[When an American unit withdraws on 1 July from the French
air base at Rabat-Sale, the Moroccan Government probably will
renew charges that the United States, by not turning over, the area
to the Moroccans, is violating the 22 December 1959 agreement
providing for progressive evacuation of the American air base
complex in Morocco by the end of 1963. Both the left-wing and
right-wing Moroccan press are also likely to renew accusations
of US complicity with France in prolonging the occupation of Moroc-
co. Possible attempts by Moroccan forces to seize the area as the
US units withdraw would lead to clashes with French troops. The
Moroccans may also man roadblocks adjacent to this and other
French military establishments. In discussing evacuation with
the American ambassador on 9 May, the King asked that Rabat be
informed of the exact date of withdrawal and said that the Moroccan
Government "will settle with the French.17
[Moroccan officials, including the King, demand that all facil-
ities used by American forces at French bases be handed directly
over to the Royal Moroccan Armed Forces. They have protested
that two radar sites at Saida and Mechra Bel Ksiri, evacuated by
the US last month, were relinquished to their French co-occupants
instead of to Moroccan troops. The Moroccans were not mollified
by the fact that all French forces were withdrawn from these two
sites almost simultaneously and the facilities transferred from
French to Moroccan controg
CFrench officials consider the American-occupied site at Rabat-
Sale" an integral part of that base. French military officials, al-
though resigned to the possibility of relinquishing Rabat-Sale as
early as this year, are giving no thought to inviting Moroccan forces
to move onto that portion of the base from which the American unit
will withdraw. Instead, the French military command in Morocco
hopes to persuade Rabat to permit the French Air Force to continue
to occupy the base in exchange for instituting a training program for
Moroccan jet pilots..3
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Ethiopia Cone( ed Over Sian-Situation
[Ethiopia's concern oier developmdnts in the neighboring
Somali areas prompted Emperor Haile Selassie on 11 May to
request additional US military assistance. He asked for arms
for 8,000 troops in addition to the 24,000 men for whom the US
already, furnishes assistance, heavy equipment for his army,
and equipment for 26,000 police. The Emperor asked for an
early reply so that, if it were negative, he could make "other
arrangements." The USSR on 30 April reportedly offered to
supply arms and equipment for about 40,000 men, and the Amer-
ican ambassador believes that the USSR is "pushing hard" to cap-
italize on the situation.]
LTension along the 1,000-mile frontier--much of it undemar-
cated--is endemic between Christian-dominated Ethiopia and the
Moslem nomadic Somalis. Nine years of negotiations have failed
to produce agreement between Ethiopia and the Italian-administered
trust territory of Somalia on their disputed border, and for several
years there has been friction and some violence between Somali
tribesmen and Ethiopian authorities during tribal migrations. Ethi-
opian distrust and fear of Somali intentions is rising sharply in view
of the impending independence and union on 1 July of Somalia and
the British Somaliland protectorate. Somali nationalists declared
in late April that the union was the "first practical step" toward
the creation of a Greater Somalia--a concept which would include
the 600,000 Somalis under Ethiopian controlj
Cgthiopia, considering the Somali issue of paramount impor-
tance, is judging foreign countries by their attitude toward the
Somalis. Britain and Italy have been accused in the controlled
Ethiopian press and privately by the Emperor of "neo-imperial-
ist" designs in supporting Somali nationalism:1
[Addis Ababa has tried both bold and soft approaches on the
question. On 11 May the Emperor summoned the foreign ambas-
sadors and charged that the union of Somali territories was a
"thinly disguised conspiracy for the seizure of Ethiopian territo-
ries." However, on .9 May leaders from the trust territories who
had just talked to the Emperor reported that he was willing "to give
Somalis their rights," which they understood as cession of territory.
If this interpretation proves incorrect and their hopes of Ethiopian
magnanimity are shattered, the campaign of Somali nationalists may
be pushed, with a resultant aggravation of the existing tension
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Nari �Ii�f
Increasing Disorders in Important Congo Province
Popular apprehension and administrative paralysis in
mineral-rich Katanga Province may' lead to serious disorders
in the period leading up to Congolese independence on 30
June. The province is plagued by sporadic labor stoppages,
and the situation in Elisabethville has been described by the
American Consulate as one of "complete uncertainty" and
fear for the future. The consulate notes evidence of wide-
spread discouragement among Belgian administrators, whom
it described as incapable of making necessary decisions and
preoccupied with moving their families to safety.
The exact motivation of the African strikers--whose
work stoppage has impaired wide areas of the provincial
economy--is unclear. They may- hope that Belgian admin-
istrators, anxious to avoid trouble in the period before 30
June, would permit large wage increases which the new Congo
government would feel obliged to continue. The strikes
have subsequently taken on an anti-European tone, possi-
bly on the instigation of agitators from the National Congo
Movement faction of Patrice Lumumba. There is no evi-
dence of direct Communist involvement, although Lumumba
is believed to be receiving financial support from the Belgian
Communist party.
Meanwhile, balloting began throughout the Congo on 11
May for a 137-seat Congolese assembly, and an upper house
is to be elected subsequently by provincial eouncils. The
election will take two weeks, and voting for the assembly
is expected to be along tribal lines in many areas. Although
probably no single party or coalition will gain a majority
in the assembly, Belgian authorities expect Lumumba's
faction to win a plurality of seats.
Lumumba's emergence as the leading Congolese politi-
cian would probably add to the tension in Katanga Province,
where he has incurred the hostility of both the Belgians and
many local African leaders. Sentiment there remains sharp-
ly divided among those who favor a unified Congo state and
those who appear to advocate an independent Katanga; the
latter group has threatened to secede from the Congo on
30 June.
CONFIDENTIAL
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Awe
Southeast Asian Rice Exporters Criticize US PL-480 Grain
Sales in Asia
[Southeast Asian rice-exporting countries have reacted
vigorously to the 4 May trade agreement under which the
United States will provide India with 1,000,000 tons of rice
and 16,000,000 tons of wheat surpluses over a four-year
period. Thailand's Foreign Minister Thanat Khoman pub-
licly charged on 11 May that the United States informed his
government of the agreement only two days before it was
signed and that these grain sales to India will cost Thailand
$5,000,000-$10,000,000 annually in prospective revenues.
In an angry protest earlier to the American ambassador in
Bangkok, he had charged that the US-Indian negotiations
had destroyed the possibility of Thai rice sales to India,
because the Indians, no longer under pressure,, had sud-
denly demanded that Thailand take their steel in return for
rice. He scoffed at India's guarantee to maintain its nor-
mal rice importsj
EThanat is threatening to stay away from the late May
meeting of the SEATO foreign ministers in Washington. In
its current mood, the Thai Government might well look: with
increased favor on any proposals forthcoming from the bloc
for economic tiesj
an Burma, Rangoon's influential and stanchly anti-Com-
munist daily, The Nation has asserted that the United
States' entry into the Asian grain market has seriously de-
pressed rice prices. It warned that the most recent US-Indian
grain agreement might compel Burma to turn once again
to barter deals with Communist countries_g
CA Vietnamese Foreign Ministry note of 30 April, recall-
ing its statement last year that US surplus sales were "caus-
ing serious difficulties to rice-exporting countries of the
region," claimed that PL-480 sales to Indonesia in 1959 had
contributed to the current 100,000-ton Vietnamese rice
surplus. The note predicted that hardly half of the estimated
350,000 to 400,000 tons of exportable Vietnamese rice in 1960
would be marketed_..)
CONFIDENTIAL
13 May 60 CENTRAL INTELLIGENCE BULLETIN
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*glee
Japanese - South Korean Relations
CSouth Korean Acting Chi44 of State Huh�Chung's firm
stand against the present arrangement for the repatriation
of Koreans in Japan to North Korea is a major obstacle to
any improvement in relations between Seoul and Tokyo.
While Huh on 11 May announced that suspension of the cur-
rent program was not a prerequisite for the resumption of
negotiations with Japan, he warned that cessation of organ-
ized mass repatriation is an essential condition for a final
settlement of outstanding differences. Ambassador Mc--
Conaughy in Seoul has noted that this probably is Huh's basic
viewpoing
CE_arlier Huh indicated that if the mass repatriation
were halted and traVel to North Korea put on an individual
and private basis, it would be considered a "trivial" and
"insignificant" matter. However, Japanese Vice Foreign
Minister Yamada has stated that there would be very seri-
ous repercussions in Japan if the government reversed
its position on the right of voluntary repatriation and termi-
nated the program. He pointed out that new estimates indi-
cated that a total of about 100,000 Koreans may go to North
KoreaJ
Smada also has dismissed South Korean overtures for
a settlement of the Rhee line dispute. Commenting on Huh's
suggestion to Ambassador McConaughy that South Korea is
prepared to end seizures of Japanese fishing vessels if Japan
observes the line until a conservation agreement is negoti-
ated, Yamada said Japan is strongly opposed to such an
arrangement. He noted that Japanbse agreement would con-
stitute tacit recognition of the Rhee line and might remove
all stimulus for South Korea to settle the issue quickly,Y
ahe Japanese Government feels there are real uncertain-
ties as to whether Huh is in a position at present to speak
authoritatively for South Korea. Officials have expressed
doubts that a suggested meeting between Huh and Prime Min-
ister Kishi would be productive before greater stability is
achieved in South Korea_z7
COIN!' 11.1t1N 1 1AL
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III. THE WEST
Peruvian Strike May Occasion Anti-US Demonstrations
The Peruvian Labor Confederation (CTP), dominated by
the leftist but non-Communist APRA party, has called a 24-
hour general strike for 13 May in protest against recent "mas-
sacres" of peasants at several foreign-owned installations, in-
cluding two US-owned companies. The APRA-controlled student
organization has also scheduled a worker-student meeting for the
same day at which protests could take the form of demonstrations
against the United States or US companies.
Several US companies are under strong attack for alleged
violations of Peruvian national sovereignty and the rights of work-
ers and peasants. The Cerro de Pasco Corporation has long been
criticized for its refusal to allow peasants to occupy its idle lands,
and the deaths at the hands of Peruvian police of three Indians dur-
ing an attempted invasion of company lands on 2 May and of three
woTkers as the result of labor unrest at a US-owned sugar planta-
tion on 7 May provided the impetus for the general strike call.
The US-owned International Petroleum Company, Peru's larg-
est producer, has sustained prolonged and bitter criticism over the
legal status of its oil properties and would probably be a major tar-
get of any demonstrations against US companies. The new US-owned
copper installation at Toquepala in southern Peru is also under at-
tack for its management's reluctance to permit the CTP to organ-
ize its workers.
-TONFIBENT-141.,
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Chiari Probable Victor in Panamanian Presidential Elections
Officials of Panama's national election tribunal are ex-
pected to announce on 16 May the victory of opposition leader
Roberto F. Chiari over his two competitors in last Sunday's
presidential election. Reliable reports state that the official
announcement, which had previously been scheduled for 14
May, will be postponed an additional 48 hours. This delay is
presumably intended to avoid affecting the 15 May municipal
elections, either by interfering with orderly voting or by en-
couraging a swing to pro-Chiari candidates.
Chiari, the candidate of a four-party opposition' cbalition,
is a member of Panama's wealthy ruling clique and,a former
vice president who served briefly as president in 1949 before
being ousted in a bloodless coup. During the pre-election cam-
paign Chiari joined all other candidates in pledging to continue
the nationalistic canal policies of the current regime. He also
vowed to bring the discredited National Guard, Panama's only
armed force, under civilian control. His assumption of the
presidency, therefore, would require some accommodation
with the leaders of the guard, traditionally the arbiters of
Panamanian politics.
Many supporters of government candidate Ricardo Arias
have already privately conceded his defeat in what has been
called the most honest election in Panamanian history. Lead-
ers of the National Patriotic Coalition party (PCPN)--Panama's
ruling political organization since 1952--are reliably reported
to be discussing with the two defeated candidates possible
measures to. deny the presidency to Chiari. President de la
Guardia and guard commandant Vallarino, however, are re-
putedly determined to prevent any forcible retention of power
by the PCPN, since any attempt to declare Arias the winner
of the election would probably precipitate violent attacks
against the government.
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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 Civil and Defense 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 Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State 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
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
Commandant, United States Marine Corps
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
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