CENTRAL INTELLIGENCE BULLETIN - 1959/03/17

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03160620
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: March 17, 1959

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17 March 1959
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CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
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17 MARCH 1959
I. THE COMMUNIST BLOC
nrushchev shaking up second-
echelon leadership.
Moscow continding its attacks on
Iranian 'regime.
Khrushchev's comments on UAR-
Iraq dispute aimed at discouraging
Nasir's attacks on Qasim
II. ASIA-AFRICA
USSR grants Iraq $137,000,000 loan
for economic and technical. develop-
ment.
Sudan concludes trade agreement
with USSR; negotiations under way
for long-term economic.aid.
India - Efforts to overthrow Commu-
nists in Kerala thwarted.
C D I 'T
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CENTRAL INTELLIGENCE BULLETIN
17 March 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR: Khrushchev apparently is in the midst of a cam-
paign to clean up the second-echelon party and governmental
leadership; he recently notified party and government lead-
ers that such a campaign was in the offing. Stake-ups in the
leadership of the Uzbek Republic and Moscow Oblast have
taken place within the past two weeks, following similar ac-
tion in the Turkmen Republic. (Page 1)
USSR-Iran: The reported recall of Soviet Ambassador
Pegov from Tehran may mark a new phase in Moscow's hos-
tility toward the Shah's regime. Soviet radiobroadcasts to
Iranian listeners have also renewed explicit personal attacks
on the Shah. The Iranian Government cannot effectively counter
the Soviet broadcasts, but has attempted to keep pace with Soviet
pressure by postponing the departure of the Iranian ambassador-
designate to the USSR and by alleging 81 violations of Iranian air
space by Soviet aircraft in recent months.
'USSR-UAR: Khrushchey's remarks of 16 March on the
UAR-Iraq dispute, while deploring the conflict and adopting a
pose of noninterference and friendship for both countries, are
directed at discouraging Nasir from attacks on Qasim and Bagh-
dad Communists, and from renewed UAR subversion in Iraq.
Khrushchev stated that relations between the USSR and the UAR
"will continue as before," but his warning that Nasir's anti-
Communist campaign, if continued, "will inevitably fail" im-
plies Soviet retaliatory moves. In a speedy reply on 16 March
Nasir charged Khrushchev with "distortionof facts" in com-
menting on Arab unity, but expressed a qualified hope for con-
tinuing good relations with the USSR. (Page 2)
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II. ASIA-AFRICA
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*Iraq_ USSR: The Soviet Union has granted Iraq a $137,000,000
loan g 2.5-percent interest under an economic and technical co-
operation agreement concluded on 16 March in Moscow. The
USSR will provide technical assistance for the construction of
various light industrial projects, primarily in the machine, chem-
ical, and food industries. It will also conduct various studies in
the fields of irrigation, transportation, and development of min-
eral resources. The agreement underscores Khruslchey's recent
support for Iraq's position in the Middle East. A $16/L000000
rms agreement was signed with the USSR last fall.
Sudan -USSR: The Sudanese Government and a visiting Soviet
economic delegation have concluded the first trade agreement be-
tween the two countries--a small one-year barter arrangement
06,244,000 each way) for the exchange of Sudanese cotton and other
agricultural products for Soviet machinery, trucks, and cars. Ne-
gotiations are now under way on a Soviet offer of long-term, low-
interest credits for Sudanese industrial and agricultural projects,
and the Sudanese negotiators apparently intend to raise the ques-
tion of Soviet aid for the Roseires Dam project on the Blue Nile.
) (Page 3) (Map)
*India: The 64-to-58 vote of confidence won by the Commu-
nist government in Kerala State on 16 March appears to have
checked for the time being efforts by conservative elements to
force the Communists from office. Covert planning of influen-
tial Hindu and Christian leaders and local Congress party pol-
iticians aimed at subverting enough Communist assembly mem-
bers to bring down the government had been in an advanced stage
and apparently had the support of Indian Home Minister Pant and
key police officials. These leaders are likely to persist in t:H-ir
efforts, although they will have difficulty maintaining oppoE1' Pon
unity and finding a new issue for a vote of confidepce.
(Page 4)
17 Mar 59 DAILY BRIEF
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I. THE COMMUNIST BLOC
Moscow Purging Ineffective and Corrupt Officials
A general campaign to strengthen the second-level leader-
ship in the Soviet Union by replacing some of the more ineffec-
tive or corrupt party and government officials is apparently
under way. Shake-ups in the leadership of the Uzbek Republic
and Moscow Oblast have taken place within the past two weeks,
following similar action in Turkmenistan. In addition, the
party chiefs in a number of other areas, including the Checheno-
Ingush Autonomous Republic, the Novosibirsk Oblast and the
Jewish Autonomous Oblast, have been replaced.
On 14 March both the party first secretary and the premier
of Uzbekistan were ousted from their posts for "serious short-
comings and mistakes" in their work. A similar move took place
in Moscow Oblast on 2 March when the first secretary and the
chairman of the government body were released at a meeting at-
tended by some of the party's top personnel specialists, includ-
ing party presidium members Aristov and Kirichenko. No details
on the charges against the ousted Moscow officials have been pub-
lished. The principal victims in the Turkmen affair last Decem-
ber were the party first secretary and another secretary, both
charged with "gross mistakes in their work," including "nepotism,
malfeasance, and arrogance."
The Turkmen shake-up now has extended to lower echelons
in that republic's leadership, and a similar widening of the purge
may follow the changes in Moscow Oblast and Uzbekistan.
Khrushchev has recently stressed the availability of deserving
and qualified younger men capable of providing vigorous leader-
ship for his programs, and has warned party and government
leaders that deficiencies in their leadership will not be tolerated.
"We must not.. � hold back the replacement of leaders when it is
clear they are not coping with the tasks entrusted to them," he
said.
CONFIDENTIAL
17 Mar 59
CENTRAL INTELLIGENCE BULLETIN Page 1
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Khrushchev's Statement on UAR-Iraq Dispute
Khrushchev on 16 March, commenting on the UAR-Iraq dis-
pute, pledged noninterference and friendship for both countries,
but clearly placed the USSR on the side of Iraq. His remarks
are aimed at discouraging Nasir from continuing his attacks on
Communists and on Qasim, as well as from renewing UAR sub-
versive moves against the Baghdad regime. The Soviet premier,
breaking Moscow's silence on the UAIrs role in the abortive
Mosul uprising, charged Nasir with having used the "language
of imperialists" in his recent speeches at Damascus.
Khrushchev expressed hope that "common sense" will pre-
vail and asserted that relations between the USSR and the UAR
"will continue as before." He noted, however, that Moscow "is
not indifferent" to the results of the dispute which has arisen be-
cause of Nasir's "insistence on unifying Iraq with the UAR" against
the will of the Iraqi people. This statement and Khrushchev's warn-
ing that Nasir's anti-Communist campaign, if continued, "will in-
evitably fail" suggest possible Soviet retaliatory moves.
Pravda, possibly foreshadowing Soviet efforts to build up
Qasim in the radical Arab nationalist movement as a counter-
weight to Nasir, declared on 13 March that "Baghdad is more
and more becoming an important center of the liberation move-
ment in the Near and Middle East."
Nasinin a speedy reply to Khrushchev on 16 March, declared
that the Soviet premier's statement regarding Nasir's "insistence"
on unity between the UAR and Iraq is a "distortion of facts." Nasir
termed Khrushchev's defense of Arab Communists "a matter which
the Arab people cannot accept," and in expressing hope for con-
tinued friendly relations with the USSR qualified his remarks with
this reservation. UAR propaganda organs have continued their
full-scale anti-Qasim, anti-Communist tirades, and on 16 March
Vice President Amir addressed a "massive" anti-Oasim demon-
stration in Cairo in a similar vein.
CONFIDENTIAL
17 Mar 59
CENTRAL INTELLIGENCE BULLETIN Page 2
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II. ASIA-AFRICA
Sudan Concludes Cotton Barter Deal With USSR
Moscow will purchase about $5,000,000 worth of Sudanese
cotton over the next 12 months as part of a $6,244,000 barter
trade agreement concluded on 15 March between Sudanese of-
ficials and a Soviet delegation which arrived in Khartoum on
28 February. They are now discussing a Soviet offer of long-
term, low-interest credits for Sudanese industrial and agri-
cultural projects.
In terms of the Sudanese cotton crop, the Soviet barter
deal is relatively small. Khartoum now has on hand about
142,000 bales of cotton--worth some $20,000,000--left over
from the 1957 and 1958 crops, and the new crop coming on
the market this month is expected to reach a record 640,000
bales, worth about $95,000,000 at present prices. Earlier,
small barter deals were concluded with Czechoslovakia, Bul-
garia, Hungary, Poland, and Communist China.
Khartoum'probably will raise the question of Soviet help
in constructing the $100,000,000 Roseires Dam on the Nile
River, LSydanese Foreign Minister Kheir, noting that West-
ern aid for this project appeared lacking, has hinted at a
request to the USSR, Western aid for this and other major
Nile projects has been conditioned on a. settlement of the
dispute between Egypt and the Sudan over use of the Nile
waters. Despite the recent government changes, Khartoum
apparently is still insisting on a substantial shar
and no solution appears likely in the near future.
SECRET
17 Mar 59
CENTRAL INTELLIGENCE BULLETIN Page 3
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Opposition Efforts to Defeat Communist Government in Kerala
State Thwarted
he vote of confidence won by the Communist government in
the Kerala State assembly appears to have thwarted covert plans
by conservative groups to force the Communists from office. The
margin of 64 votes to 58 indicates the Communists maintained
their slim majority and perhaps also succeeded in attracting sup-
port from several members of the oppositioe
Planning by various opposition elements aimed at subverting
the government's majority apparently had been in an advanced
stage prior to the vote. Developments during recent months stim-
ulated active collaboration between influential Hindu and Christian
leaders and Congress party politicians. The Christian business
community had agreed to support antigovernment plans advanced
by powerful elements of the Nair community, the most influential
Hindu caste. Funds were to be supplied to the titular leader of
the Nairs to assist him in subverting several Communist members
of the assembly belonging to the Nair community. The plan was
reliably reported to have been supported "unofficially" by the
Indian Central Intelligence Bureau. Indian Home Minister Pant
is said personally to have told a Kerala police official on 14 March
to go ahead with the plan, which would receive his full suppoiig
Qhe Communist government may have learned of the opposi-
tion plot and forced a confidence vote before the antigovernment
leaders were able to complete their arrangements. The Commu-
nists had already been reported exerting pressure on several
members of the opposition Moslem League to abstain during the
crucial voting, and probably also tightened their control of Com-
munist assembly members they suspected of being vulnerablq
CQpposition leaders are likely to persist in their efforts to
unseat the government despite their setback in the assembly.
They may find it even more difficult now, however, to maintain
a united opposition front and to promote a new issue with strong
popular support on which to base another vote of confidence:7
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17 Mar 59
CENTRAL INTELLIGENCE BULLETIN Page 4
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Nine
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
CONFIDENTIAL
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