CENTRAL INTELLIGENCE BULLETIN - 1958/02/14

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169403
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: February 14, 1958

IZZ/Z/Z/
3.5(c) /
3.3(h)(2)
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14 February 1958
Copy No, 1 3 7
CENTRAL
INTELLIGENCE
BULLETIN
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14 FEBRUARY 1958
I. THE COMMUNIST BLOC
USSR - Renewed acti
Tam missile range.
Britain believes recent Peiping ac-
tions may be aimed at participation
in summit talks or heads-of-govern-
ment conference on Asian affairs. 0
Soviet Defense Minister Malinovsky
In Germany.
II. ASIA-AFRICA
Iraqi and Jordanian talks on federa-
tion proceeding smoothly.
British talks with Greeks about
Cyprus inconclusive.
Spanish staff officer claims satisfac-
tory progress in operations against
West Sahara guerrillas.
Indonesia - Sumatran dissident forces
occupy airfield at Padang�provincial
capital.
Philippines considering means of ob-
taining more US aid.
III. THE WEST
France-Tunisia - Positions for nego-
tiations far apart.
'TVID C COD CIFT'
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CENTRAL INTELLIGENCE BULLETIN
14 February 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
*Soviet missile activity:
activity related to the Tyura Tam ballistic missile
test range since 9 February suggeststhat there is seri-
ous preparation for another launching. This activity
>lb resembles that which occurred about one week prior
to the probable ICBM test on 30 January. Present
data does not permit a determination of the type of
vehicle being prepared--test ICBM or earth satellite.
Communist China: Peiping's current move to
"break the deadlock" in the Korean situation suggests
that Peiping is launching a new diplomatic offensive
which the British Foreign Office thinks may be aimed
at Chinese Communist participation in summit talks or
a heads-of-government conference on Asian affairs.
Chou En-lai's relinquishment of the Foreign Ministry
post, which involved time-consuming representational
functions, will enable him to devote more time to such
a campaign. (Page 1)
Soviet forces in Germany: Soviet Defense Minister
Marial Malinovsky arrived in East Germany on 5 or 6
February. Elements of the Group of Soviet Forces in
Germany (GSFG) have been conducting unusually inten-
sive training for this time of year.
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The Soviet Army newspaper in Moscow states
Malinovsky has been attending a GSFG party confer-
ence. The GSFG has been undergoing a military re-
organization since last spring.
II. ASIA-AFRICA
Iraqi-Jordanian union: Iraqi and Jordanian dele-
gations in Amman are working fairly smoothly on plans
for federation of the two countries after a compromise
agreement which in effect postpones for about 18 months
a Jordanian demand that Iraq leave the Baghdad Pact.
Iraqi Crown Prince Abd al-Illah has gone to Amman to
join the discussions, which he anticipates might last
several more days. The crown prince has confirmed
that pro-Western Nun i Said has been chosen as Iraq's
new prime minister to replace the present cabinet head.
Page 3)
On the basis of findings by its Watch Committee, the
Intelligence Advisory Committee concludes that a delib-
erate initiation of hostilities in the Middle East is unlikely
in the immediate future. Tensions in the Middle 'East, par-
ticularly in the Israeli-Syrian border area, continue to
create possibilities for serious incidents.
Tunisia--Bourguiba's position: President Bourguiba,
despite his inflammatory public utterances, continues to
maintain order. The situation may, however, deteriorate
sharply. He is willing to negotiate with France, but it is
clear that he will insist not only on the early withdrawal of
French troops from Tunisia but also on working out new
arrangements�possibly under NATO auspices but exclud-
ing France--for the base at Bizerte. Bourguiba apparent-
ly hopes that the Sakiet idl. Youssef bombing can be used
to develop a solution of thp larger Algerian problem.
(Page 4)
14 Feb 58
DAILY BRIEF ii
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Cyprus: The Anglo-Greek talks in Athens have ended,
apparently-with little progress toward a solution. During
the last week� of January inconclusive conversations were
held between British and Turkish officials in Ankara. A
status report on the Cyprus problem is expected to be made
soon in the British Parliament. The Greek Cypriot under-
ground organization has repeatedly warned that it intends
to resort again to violence.
Spanish West Africa: The operation against West
Sahara guerrillas Is urogressio satisfactorily,
� The reports of this opera-
tion remain uncorroborated. (See Map)
Indonesia: Dissident forces of Lt. Col. Hussein in
Central Sumatra have occupied the airfield at Padang,
the provincial capital. The air force detachment at
Padang, which has been loyal to the central aovernrnent.
was disarmed without opposition.
On the basis of findings by its Watch Committee, the
Intelligence Advisory Committee concludes that there is
no evidence of Sino-Soviet intention to become militarily
involved in the Indonesian situation. Continued failure to
resolve the basic differences between the central govern-
ment and the dissident leaders could lead to disorders and
thus to a situation even more favorable to the Communists
on Java.
The Philippines: The Garcia administration is ap-
pandit y considering how to put pressure on the United
States for additional financial aid to redress the country's
Increasing economic problems. Fiscal measures which
would require American support and threats of a more
' foreign policy may be contemplated.
(Page 5)
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III. THE WEST
*Tunisia�i-Frenell� UN aspects: France's note to
TunigatakeS a strong line, asking for new negotiations
on outstanding difficulties but making such negotiations
contingent on Tunisia's refraining from provocative meas-
ures such as interference with the "normal activities" of
French troops in Tunisia. In the UN, where a Security
Council meeting on Tunisia will probably be held early
next week, France plans a more conciliatory approach
which does not rule out ihdemnities and which includes
working out plans for French-Tunisian cooperation to
prevent further border incidents. France will, however,
refuse to discuss the internal Algerian problem. The
British UN delegation wants Hammarskjold to explore
with both sides the possibility of a border patrol.
(Page 6)
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I. THE COMMUNIST BLOC
British See New Chinese Communist Diplomatic Offensive
The British Foreign Office believes Chou En-lai, in
relinquishing his post as -foreign minister, will now be
free to concentrate on managing a new diplomatic offen-
sive which may be intended to gain Chinese Communist
participation in summit talks or a heads-of-government
conference on Asian affairs. The Foreign Office sees
Peiping's current proposal to "break the deadlock" in
Korea as a strong indication that the Chinese have em-
barked on such a campaign. The Chinese have circulated
texts of this proposal to UN members with forces in Ko-
rea urging the withdrawal of all foreign troops and ask-
ing for early Korean reunification.
In its proposals for a summit conference, Moscow
has left open the possibility of later insisting on the in-
clusion of China. This could also serve as a bargaining
tactic to dissuade the West from insisting that Garman
reunification and the East European satellites should be
discussed. The Chinese, meanwhile, appear to be ac-
tively laying the groundwork for a potential role in the
talks. One of Peiping's chief spokesmen, speaking in
a quasi-official capacity, recently declared his "hope"
that Peiping would join in heads-of-government talks.
Chou was less specific on 10 February, when he as-
serted the regime was prepared to make "positive ef-
forts" and "assume corresponding obligations" in this
regard. Chou has endorsed Nehru's belief that the Near
East and Asia, as well as Europe, should be atom-free,
and has urged the inclusion of Egypt and other neutrals
in a summit conference.
CONFIDENTIAL
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Marshal,Malinovsky'stVisit to East Germany
Soviet Defense Minister Marshal Malinovsky has
been attending a party conference of Soviet forces in
East Germany, according to the :Soviet Array, newspaper
in Moscow. His attendance at this conference under-
lines the emphasis on the party's role in the armed
forces since Marshal Zhukov's removal.
Malinovsky arrived in East Germany on 5 or 6
February. In addition to attending the conference, he
probably conducted a routine inspection of this major
command, which has been extensively reorganized since
last spring. The reorganization of the six Soviet ground
armies in East Germany has resulted in (a) the creation
of two tank armies, each of three tank divisions, and
four armies of combined arms, each consisting of one
tank division and three motorized rifle or mechanized
divisions; and (b) the conversion of all four previously
existing rifle divisions and some of the mechanized divi-
sions into a new type of motorized rifle division. The
changes have produced a better balanced force with sig-
nificantly increased mobility and firepower.
Thera are also indications that the training program
for Soviet forces in East Germany has been accelerated.
During the last weak of January: fighter, bomber, and
reconnaissance elements of the Twenty-Fourth Air Army
participated in joint exercises with ground elements sta-
tioned in southern East Germany. The bulk of two divi-
sions were engaged in field exercises during this period
and another division was engaged in a command post ex-
ercise.
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II. ASIA-AFRICA
Iraqi-Jordanian Union
Apparent agreement has been reached between Iraq
and Jordan on a federal union of the two states. In re-
sponse to a Jordanian demand, Iraq has agreed to re-
examine its membership in the Baghdad Pact next year,
provided the union is a going proposition at that time.
Jordan's Hussaynfavorsa"loose confederation" of
the two countries, while Faysal hopes for a "close fed-
eration." Iraqi Crown Prince Abd al-Illah has arrived
in Amman to help settle points of difference.
Present thinking of the Iraqi delegation envisions
a union in which FaysalandHussaymboth retain their
thrones. The military and foreign services are to be
integrated. Iraq is to provide Jordan immediately with
the equivalent of $8,740,000 in economic assistance and
the US is expected to continue its financial support of
Jordan. To achieve maximum propaganda impact, an-
nouncement of the federation is to be made before the
21 February plebiscite on Egyptian-Syrian union.
Both governments have requested the good offices
of the US to point out to King Saud the benefits of Saudi
adherence. They see little prospect of Saudis joining in
the immediate future, and would be satisfied if he is
noncommittal.
In anticipation of an adverse reaction to union in
Iraq, the crown prince has asked Nun i Said to form a
new government. Nun i has agreed to present a cab-
inet shortly after 18 February. This delay is probably
due to the desire to wait until after the federation is an-
nounced because of Nun's unpopularity and identification
with the Baghdad Pact.
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The Tunisian Situation
President Bourguiba, despite his provocatory ut-
terances regarding the withdrawal of French troops
from Tunisia, including the Bizerte base, continues to
keep a tight rein on the local situation. Some outletS
for public indignation are permitted, and no serious
incidents have occurred. Rumors--bolstered by public
threats by Bourguiba--that the Tunisian Government is
cutting off supplies, as well as communications, from
French troops confined to their bases, are denied by
Tunisian officials, who informed Ambassador Jones that
the government had taken steps to assure the provision-
ing of French military personnel. The situation, how-
ever, may deteriorate sharply in view of the heightened
tension.
Bourguiba indicates a general willingness to nego-
tiate with France. Nevertheless, he is unlikely to modify
his demand that France pull out all troops, a position he
has maintained since July 1956. Although now insisting
that France also relinquish the Bizerte base, he hasAn-
dicated that France might remain at the base
until the end of 1958 and� in, the interim, arrangements could
be worked out to put the base at the disposal of NATO.
While Bourguiba prefers a settlement ciLthe issue
outside the United Nations, he has ordered his delegation
to press for Security Council action, and the council may
take up the problem early next week. Meanwhile, he is
attempting to preserve as wide a field as possible to ma-
neuver in the UN and may also hope that the bombing in-
cident proves to be the turning point in an Algerian set-
tlement.
-CONFIDENTIAL
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Nairi
Philippines May Plan Pressure Tactics to Obtain
Increased American Aid
the Garcia administration is considering measures
to apply pressure on the United States for increased as-
sistance to bail the country out of its economic difficul-
ties.
Some vacillation in enforcement of the new austerity
program--designed to halt a foreign exchange crisis--
has raised fears that the economic situation may be al-
lowed to drift in order to persuade the United States to
finance an exchange stabilization fund. There are signs
that Garcia may adopt early peso devaluation and the
lifting of some exchange controls and that he may be en-
couraging the resignation of Central Bank Governor
Cuaderno, the major exponent of a "hard money" policy.
Renewed criticism of American policies as a lever
for American concessions may be foreshadowed by re-
ports that Garcia has been consulting ultranationalist
Senator Recto and will probably elevate to cabinet rank
Under Secretary of Justice Barrera, a Recto follower
ana -a. major obstructionist to a settlement of issues af-
fecting American bases.
the Philippine foreign secretary is now con-
sidering a statement at the SEATO meeting in March that
a more neutral policy for Asian nations is desirable un-
less the US is willing to increase financial aid to Asian
SEATO members
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Neif
III. THE WEST
French Note to Tunisia
France'sinote to',Tunisia, as outlined by French For-
eign Minister Pineau to Ambassador Houghton on 12 Feb-
ruary, reiterates Paris' readiness to re-establish friend-
ly relations, provided Tunis refrains from measures which
would increase present tension. It specifies that French
troops in Tunisia must be permitted to carry on their "nor-
mal activities," and Pineau stressed that provisioning of
the troops was "the most immediate explosive problem."
Pineau told Ambassador Houghton that France will
continue to insist the internal Algerian problem must not
be broughtintb UN Security Council discussions. Accord-
ing to Pineau, France will recognize the principle of in-
demnities to civilian victims of the recent bombing, but
will insist that the case be considered in the context Of
other frontier incidents.
Pineau suggested border security might be improved
if a no-man's land were established along the Algerian-
Tunisian frontier. Ha mentioned also the possibility of
a joint French-Tunisian inspection organization, and
added his personal view that a neutral might head such
a commission. This may be a step toward a solution on
the basis of a recommendation by the British UN delega-
tion for a resolution calling on the secretary general to
explore with the French and Tunisians the possibility of
establishing some form of border patrol.
14 Feb 58
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tJJ1 �11 11.1,E4IN 111114
*NO
DISTRIBUTION
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 Mobilization
Special Assistant for Security Operations Coordination
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Administration
The Deputy Under Secretary for Economic Affairs
The Counselor
Director, International Cooperation Administration
Director of Intelligence and Research
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
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
Deputy Director for Intelligence, The Joint Staff
Assistant Chief of Staff, 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
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
�Actiazi=s3-14coueirix-d-7�
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Nrtire
CENTRAL INTELLIGENCE BULLETIN
14 February 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
*Soviet Missile activity:
activity related to the Tyura Tam ballistic missile
test range since 9 February suggests that there is seri-
ous preparation for another launching. This activity
resembles that which occurred about one week prior
to the probable ICBM test on 30 January. Present
data does not permit a determination of the type of
vehicle being prepared--test ICBM or earth satellite.
Communist China: Peiping's current move to
"break the deadlock" in the Korean sitotioiceuggests
that Peiping is launching a new liplotiatic offensive
which the British Foreign 0 ite thinks may be aimed
at Chinese CommunipafEicipation in summit talks or
a heads-of-govent conference on Asian affairs.
Chou En-laEvrCinquishment of the Foreign Ministry
post, wjch involved time-consuming representational
fun ns, will enable him to devote more time to such
campaign. (Page 1)
Soviet forces in Germany: Soviet Defense Minister
MarffirrvIalinovsky arrived in East Germany on 5 or 6
February. Elements of the Group of Soviet Forces in
Germany (GSFG) have been conducting unusually inten-
sive training for this time of year.
Pap 2)
The Soviet Army newspaper in Moscow states
Malinovsky has been attending a GSFG party confer-
ence. The GSFG has been undergoing a military re-
organization since last spring.
_ ,
_ Onlhe,basis of findings by its Watch Committee, the
Intelligence Advisory Committee concludes that a delib-
erate initiation of hostilities in the Middle East is unlikely
in the immediate future. Tensions in the Middle East, par-
ticularly in the Israeli-Syrian border area, continue to
create nossihiliti f PS .nr cprianQ inrition+e
&I1 its Watch Committee, the
Intelligence Advisory Committee concludes that there is
no evidence of Sino-Soviet intention to become militarily
involved in the Indonesian situation. Continued failure to
resolve the basic differences between the central govern-
ment and the dissident leaders could lead to disorders and
thus to a situation even more favorable to the Communists
''S� �
on Java.
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