CENTRAL INTELLIGENCE BULLETIN - 1958/02/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169399
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: February 12, 1958

Approved for Release: 2019/08/20
Z/Z/ZZ/
Approved _for Release: 2019/08/20 C031693{(
3.5(c)
3.3(h)(2)
12 February 1958
Copy No. 137
CENTRAL
IYTELLIGENCE
BULLETIN
DOCUMENT:NO.
NO CI IANCE IN CLA S, yir
cECLASIFIED
CLASS. CHANGED TO: Sitot
NEXT REVIEW DATE:
TOP SECRET
C03169399f
REVIEWER:
0
0
0
,///
Approved for C03169399
4wort,
TAD C IreD CT
Approved for Release: 2019/08/20 C03169399
12 FEBRUARY 1958
I. THE COMMUNIST BLOC
Chou En-lai's resignation as foreign
minister leaves his political strength
unimpaired.
USSR propaganda condemns French
attack on Tunisian village.
Areas of reported peasant resistance
in eastern Rumania still closed to
Western observers.
II. ASIA-AFRICA
Indian Communist party claims
membership nearly doubled in
four months.
Approved for Release: 2019/08/20 C03169399
IJL:e1.01%.1.4 1
IWO
S-
New approach to Turkey's economic
problems suggested by West Germany
Ethiopia may seek further US
economic and military aid.
III, THE WEST
British - West German impasse
troop support costs continues.
on
0
0
\:11
0
z
SECRET
Approved for Release: 2019/08/20 C03169399
;\'*\Approved for Release: 2019/08/20 C03169399
NIPF
vtos
CENTRAL INTELLIGENCE BULLETIN
.\1 12 February 1958
DAILY BRIEF
11-
,\,k\
\\
i\\\
.\\\
�'�N
\\\N
tk\
\\\\
g-12-
)1,
I. THE COMMUNIST BLOC
Communist China: Chou En-lai's resignation as Com-
munist China's foreign minister does not affect his third-
ranking position in the party hierarchy. Chou' who re-
tains his post as premier, has been heavily burdened by
serving in both jobs since 1949. The new foreign minis-
ter, Chen I, has been closely associated with Chou for
many years and has been used by him in the past as a
general utility man. The net result will probably be to
improve the effectiveness of government operations.
Page 1)
Tunisian incident--Soviet view: The USSR's initial
propaganda reaction suggests that Moscow will exploit
the French attack to promote disunity among NATO al-
lies, and play up the USSR as the champion of Afro-
Asian nationalism. Although Soviet exploitation of this
incident will tend to alienate the French and divert at-
tention from the USSR's campaign for summit talks, the
Soviet leaders probably believe these disadvantages will
be more than offset by political gains in Africa and Asia.
Soviet propaganda moved promptly to implicate the United
States in the French action by stressing the use of American-
built aircraft.
Rumania: Parts of eastern Rumania are still closed to
Wesfern observers more than three weeks after the first
reports of peasant resistance there. French and Turkish
officials in Bucharest claim to have confirmation of earlier
reports that troops were used to suppress peasant resist-
ance to the regime's collectivization campaign, and add
SECRET
lApproved for Release: 2019/08/20 C0316939k
?N% "NM, � � ,
\
Approved for Release: 2019/08/20 C03169399
Iry &Ivrea nia
that these troops have nof filrivnum
remain uncorroborated.
Thpcich rannr+c
IL ASIA-AFRICA
Communists in India gain: The Indian Communist party
claims it has nearly doubled its membership in the past four
months. It announced on 10 February that the party has 218, -
532 members, with the largest single concentration of 56,000
members in the Communist-governed state of Kerala. The
new membership figures probably reflect largely the enroll-
ment of long-time sympathizers rather than any significant
increase in Communist influence. The Communists hope to
begin competing with the ruling Congress party as a broadly
based and "respectable" party. (Page 2)
Turkey's economic instability: A new approach to Tur-
key's serious economic problems has been suggested by West
Germany. The German Foreign Ministry believes that a co-
ordinated multilateral economic aid program to replace the
present system of disconnected foreign credits, grants, and
loans would promote Turkish economic stabilization. For
such a program to be effective, Ankara must be persuaded
to undertake devaluation and other unpopular measures, ac-
tions which the Turkish Government has resisted thus far.
(Page 3)
--- Ethiopia: The Ethiopian Government apparently plans to
send a mission to the United States in about a month to request
further economic and military assistance. There are indica-
tions that the Ethiopians are trying to exploit the Soviet offers
of aid without strings made at the Afro-Asian Solidarity Con-
ference in Cairo in December. (Page 4)
12 Feb 58
DAILY BRIEF ii
\ \ \ \\\ 1\\\\N
�N � \\ �
Approved for Rel\ease:\209/08/20 e03169399
.\sN
-"\ rAzcz
*00
\
,-v�\
\
\
III. THE WEST
s,
British troop support costs: The impasse over the
British demand thatVest Germany pay $140,000,000 to
support British forces in Germany continues. Bonn's
offer, which would in effect give Britain $52,000,000
over three years, has been rejected. British Foreign
Office officials are looking for a compromise solution
to lessen the bad effects of the dispute on NATO. WEU.
and Anglo-German relations.
(Page 5)
II
;\\k,
it\\
�,\N
,sk'N
�
12 Feb 58 DAILY BRIEFiii
\
s\
SECRET
sk\
�
\
Approved for Release: 2019/08/20 C03169399
1L.C3LILA Nov
I. THE COMMUNIST BLOC
Chou En-lai Steps Down as Peiping's Foreign Minister
The appointment of Chen I as Peiping's foreign min-
ister in place of Premier Chou En-lai, who has held the
two posts concurrently since 1949, does not indicate that
Chou has slipped from his third-ranking position in the
party hierarchy. Chen is probably Chou's own choice for
the post. Ha has -been, closer to. Chou in recent years
as a spokesman in both foreign and domestic affairs and
as a personal friend. As a result, Chou's heavy work-
load will be lightened without reducing his control of
foreign policy.
Chou may be seeking more time for party affairs as
a member of the politburo's standing committee, the core
of party power. With Mao Tse-tung aging, Chou may
wish to make certain of his proper share in any division
of Mao's powers with Liu Shao-chi and Tong Hsiao-ping.
Liu and Teng rank just before and just after Chou in ap-
parent power as Mao's principal lieutenants.
An additional factor in Chou's decision may have been
failing health. He suggestdd this possibility in November
1956.
Chen I, a onetime military leader, may be regarded
by Peiping as more suitable than Chou for negotiations
with the United States or the Chinese Nationalists.
-CONFIDENTIAL-
� 12 Feb 58 CENTRAL INTELLIGENCE BULLETIN Page 1
Approved for Release: 2019/08/20 C03169399
Approved for Release: 2019/08/20 C03169399
VL .1.1.11.2.1. V A 1.111-111.4
II. ASIA-AFRICA
Indian Commur}ist Party DoublOs Membership in 1957
A determined membership drive instituted by the
Communist party of India in 1957, following a liberaliza-
tion of membership regulations to provide for less se-
vere scrutiny of prospective members, has apparently
almost doubled party membership in recent months.
The party announced on 10 February that its member-
ship had risen by 10010003 in the past four months to a
total of 218,532 at present. The largest number of mem-
bers in any single Indian state is 56,000 in Communist-
governed Kerala.
Relaxation of membership regulations is part of a
current Communist party reorganization, first outlined
in May 1957. This reorganization eliminates some of
the best known features of the party--such as the polit-
buro and central committee--and replaces them with
governing bodies similar to those of other political par-
ties in India. The aim presumably is to broaden mass
support by presenting the party as a respectable, "demo-
cratic" organization of Indian rather than international
character.
The increase in membership probably derives main-
ly from the official enrollment of long-time sympathizers,
rather than any significant new increase in Communist in-
fluence in India. The party can use these figures, how-
ever, to create an impression of growing strength and
thereby add to its prestige.
-CONFIDENTIAL-
12'Feb 58 CENTRAL INTELLIGENCE BULLETIN Page 2
Approved for Release: 2019/08/20 C03169399
Approved for Release: 2019/08/20 C03169399
ba
J
Noe
Bonn May Propose Multilateral Approach to Turkey's
Economic Problems
Turkey's economic instability will probably be a
primary subject for discussion when Turkish Foreign
Minister Fatin Zorlu visits Bonn in mid-February.
The West German Government, in anticipation of this
meeting, has suggested a multilateral approach to Turkey's
economic problems, probably through the Organization for
European Economic Cooperation. Bonn feels that coordi-
nated multilateral ecnomic aid could induce Turkey to
adopt a sounder economic program.
Turkey's economic position has steadily deteriorated
since 1950. The government's extensive long-term invest-
ment program, financed primarily by short-term loans and
credits, coupled with increasing consumer demand and an
unrealistic pricing policy, has resulted in serious balance-
of-payments problems and a steadily rising cost of living.
Turkey's external debt is in excess of one billion dollars
and its foreign trade deficit at the beginning of 1958 was
about $144,000,000.
Economic stabilization measures attempted during the
past two years have been relatively ineffective. The Turkish
Government opposes devaluation, is reluctant to reduce its
public investment program, and refuses to align export com-
modity prices with the world market or broaden its income
tax system to tan the azricu tural sector of the economy.
SECRET
12 Feb 58
CENTRAL INTELLIGENCE BULLETIN Page 3
Approved for Release: 2019/08/20 C03169399
Approved for Release: 2019/08/20 C03169399
adiat4.011.1.4 a
`iteiv
vis�
Ethiopia Reported Planning New Attempt to Obtain
Increased US Aid
the Coun-
cil of Ministers decided
to send a mission to the
United States in about a month to solicit economic aid
amounting to "several times" the present level--
000,000 in 1957--as well as a military program, of
greater magnitude. The mission presumably will ask
favorable action on an earlier request for US assist-
ance for the Ethiopian Air Force.
The Ethiopians have in the past frequently expressed
dissatisfaction with the level of US aid, especially mili-
tary. Any new approach to the United States at this time
would be designed to exploit the generalized offer of un-
conditional aid to underdeveloped countries advanced by
Soviet representatives at the recent Afro-Asian Solidarity
Conference in Cairo. An article in the government news-
paper on 31 January interpreted the Cairo meeting as es-
sentially economic and lauded the Soviet offer. Meanwhile,
an Ethiopian Foreign Ministry spokesman recently told an
American Embassy officer in Addis Ababa that the terms
and conditions set forth under the Development Loan Fund
compare unfavorably with Soviet financing.
SECRET
12 Feb 58 CENTRAL INTELLIGENCE BULLETIN Page 4
Approved for Release: 2019/08/20 C03169399
Approved for Release: 2019/08/20 C03169399
167./.."401%/Li
III. THE WEST
Anglo- German Controversy Over Troop Support Costs
London's recall of its ambassadors to Bonn and NATO
for consultations this week points upfits concern at the con-
tinued German refusal to pay $140,000,000 in support of
British forces in Germany for the fiscal year beginning 1
April. Foreign Office officials, seeking German coopera-
tion for the free trade area, are probably anxious to pro-
mote a compromise on support costs, but the Treasury
and Defense Ministry evidently remain inflexible. The
future of British forces in Germany is at stake.
Bonn's latest counterproposal, although initially re-
jected by London, may pave the way for a settlement. West
Germany would in effect grant Britain about $52,000,000 in
budgetary aid spread over a three-year period by waiving
interest paymentson a proposed $280,000,000 deposit in Lon-
don against purchases of British arms and by reducing the
interest rate on funds already advanced in prepayment of
the German debt.
London, which has already received WEU approval to
reduce its troops from 63,500 to 55,000 during the coming
year, has announced that if it fails to receive the support
costs another 5,000 will be withdrawn and the entire ques-
tion of the level of British forces will be reconsidered.
British press comment has suggested that British manpow-
er in Germany might be reduced to 15,000. There is great
apprehension among many( bther NATO members of the
consequences for the alliance of failure to resolve the dis-
pute. The general feeling in the special NATO committee
on the problem is that the German offer does not go far
enough.
SECRET
12 Feb 58
CENTRAL INTELLIGENCE BULLETIN Page 5
Approved for Release: 2019/08/20 C03169399
At\\\N
N
Approved for Release: 2019/08/20 C03169399
'*amoi timit \\\\
CENTRAL INTELLIGENCE BULLETIN
12 February 1958
DAILY BRIEF
L THE COMMUNIST BLOC
Communist China: Chou En-laigs resignation as Com-
munist China's foreign minister does not affect his third-
ranking position in the party hierarchy. Chou, who re-
tains his post as premier, has been heavily burdened by
serving in both jobs since 1949. The new foreign iminxs-'
ter, Chen I, has been closely associated with Chou for
many years and has been used by him in the past as a
general utility man. The net result will probably be to
improve the effectiveness of government operations.
(Page 1)
Tunisian incident--Soviet view: The USSR's initial
propaganda reaction suggests that Moscow will exploit
the French attack to promote disunity among NATO al-
lies, and play up the USSR as the champion of Afro-
Asian nationalism. Although Soviet exploitation of this
incident will tend to alienate the French and divert at-
tention from the USSR's campaign for summit talks, the
Soviet leaders probably believe these disadvantages will
be more than offset by political gains in Africa and Asia.
Soviet propaganda moved promptly to implicate the United
States in the French action by stressing the use of American-
built aircraft.
Rumania: Parts of eastern Rumania are still c1ose4 to
Wescen�i-67sTrvers more than three weeks after the first
reports of peasant resistance there. French and Turkish
officials in Bucharest claim to have confirmation of earlier
reports that troops were used to suppress peasant resist-
aaarRahe r�necollecffvizalion campaign and-I,dT
that these troops have not been withdrawn. These reports
_
remain uncorroborated.
IL ASIA-AFRICA
Communists in India gain: The Indian Communist party
claims it has nearly doubled its membership in the past four
months. It announced on 10 February that the party has 218, -
532 members, with the largest single concentration of 56,000
members in the Communist-governed state of Kerala. The
new membership figures probably reflect largely the enroll-
ment of long-time sympathizers rather than any significant
increase in Communist influence. The Communists hope to
begin competing with the ruling Congress party as a broadly
based and "reApproved for Release: 2019/08/20 C03169399 (Page 2)