CENTRAL INTELLIGENCE BULLETIN - 1958/07/08

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169493
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: July 8, 1958

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8 July 1958
Copy No. C 57
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
NO CHANGE IN CLAS.
ILNOLAEIGEG
CLASS. CH:5,C.3E-D TO: TS
NEXT IIEVEW DA-FE:
AU � R 7
DATE
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a
11110
8 JULY 1958
I. THE COMMUNIST BLOC
New Communist international journal
to begin publication next month.
No Chinese Communist aircraft ob-
served on coastal fields opposite
Taiwan.
II. ASIA-AFRICA
Lebanon - Fighting continues in
Tripoli and Beirut.
Cyprus - Greek Cypriots launch gen-
eral strike.
Ceylon - Emergency rule helps to
maintain control over continuing com-
munal tension.
Recriminations by officials sustain
Cambodian - South Vietnamese feud. 0
Thailand - Sarit concerned over dis-
content in both army and party.
,
-f A
RE-T
,
4
III. THE WEST
De Gaulle's nuclear policy and Ade-
nauer election victory may reopen
question of French- German nuclear
weapons cooperation.
Honduran fruit workers may strike.
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CENTRAL INTELLIGENCE BULLETIN
8 July 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
New Communist journal: After some delay a new inter-
national Communist journal in 13 languages will begin publica-
tion next month in Prague under a Soviet editor. Its predeces-
sor, the Cominform journal, which ceased publication in the
spring of 1956, was widely considered in Eastern Europe to be
a Soviet vehicle for promulgating Kremlin directives on satel-
lite affairs. The USSR is trying to still objections to the new
journal within the Communist world, particularly in Poland by
stressing that the new publication will be "only theoretical
and informative." (Page 1)
Taiwan Strait: The LAC Current Intelligence Group for the
Taiwan Strait Problem, in itsjQport for the period 12 June -
7 July 1958, notes that pJotraphic and radar coverage of the
East China airfieldssii1e 25 June, when as many as 48 jet fight-
ers were reporte,d o have moved into Fukien Province, has re-
vealed no airpraft on Liencheng airfield, or on any of the coastal
airfields � Fukien and in the Swatow area.
(Page 2) (Map)
II. ASIA-AFRICA
*Lebanon: Fighting has continued in the Tripoli area, and
there has been firing, as well as explosions of a harassing nature,
in Beirut. The failure of the government security forces to make
a major offensive move apparently reflects army commander
Shihab's desire to contain the situation until a political solution
is found.
TOP SECRET
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101 SLCULII
)1,
(
Cyprus: An island-wide general strike has been launched
to protest the death of two Greek Cypriots in an open clash.
with British security forces. page 3)
Ceylon: Surface calm prevails in Ceylon under the governor.
general's emergency rule, which has been in effect since 27 May.
Tamil-Singhalese tension remains. The government can be ex-
pected to cope successfully with communal extremists and trouble.
some labor elements in any local disturbances, but the ability of
the security forces to deal with an uprising on a national scale is
open to question. (Page 4)
Cambodia - South Vietnam: Bitter recriminations by top
officials in Phnom Penh and Saigon block chances for any early
abatement of the Cambodian - South Vietnamese feud. Govern-
ment-inspired, Communist-exploited demonstrations have al-
ready occurred in Phnom Penh, and Sino-Soviet bloc propaganda
is supporting Cambodia's position. (Page 5)
Thailand: Field Marshal Sarit since his return to Bangkok
has taken steps to stabilize the political situation, but remains
concerned over rumblings of discontent both in the armed forces
and in the unwieldy government coalition party.
(Page 6)
I I L THE WEST
France-Germany: De Ga9 e's strong plea for nuclear weapons
and the victory of the West perman Christian Democratic party in
the North Rhine - Westphalia elections on a pronuclear weapons
platform may reopen tjie question of bilateral French- West Ger-
man cooperation inyuclear weapons research, and, possibly, pro-
duction. Adenau9r is likely to avoid any definite commitments
now but may "tend some technical cooperation and financial sup-
port to the French in return for an understanding on a joint modern
weapons pAgram and European integration.
8 July 58
DAILY BRIEF
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*The represejitafive of the Department of State does not
believe that ther6 is any connection between the North Rhine -
Westphalia" elections and French-German bilateral weapons
cooperation, and considers the comment at variance with Na-
tiorVntelligence _Estimate 100-2.
Honduras: The democratically oriented Villeda Morales
administration faces the threat of a crippling strike by the
13,000 workers of the United Fruit Company. The American
Embassy believes the company is following a hazardous policy
In seeking participation of Communist-led or -influenced
unions in contract negotiations. (Page 7)
8 July 58
�
DAILY BRIEF iii
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CONNOLLY I 1AL
L THE COMMUNIST BLOC
New International Communist Monthly tq Begin Publication
In August
The announcement that the new international Communist
monthly, Problems of Peace and Socialism, will begin pub-
lication in late August indicateg that some of the problems
which have delayed its establishment, particularly Polish ob-
jections and bloc policy toward the Yugoslays, no longer pose
a serious obstacle. The periodical, to be published in Prague,
will appear in 13 languages not including Serbo- Croat. Czecho-
slovak and Polish publications have indicated that its chief ed-
itor will be A. M. Rumyantsev, until now chief editor of Mos-
cow's Kommunist.
The establishment of a new vehicle for the ideological
guidance of the world's Communist parties, which was dis-
cussed in satellite party newspapers during 1957, reportedly
received a large measure of agreement during Moscow discus-
sions in November. The decision to establish the journal was
not announced until March, however. The four-month delay
and the sketchiness of the announcement strongly suggested
that a number of problems remained to be resolved.
In 1947 Gomulka foresaw that Moscow would use the old
Cominform and its publication, For a Lasting Peace, For a
People's Democracy, to limit the satellite governments' con-
trol of their internal affairs. Since his return to power, he
is said to have opposed a new publication, fearing it would
simply be a revival of the earlier one. However, for the bene-
fit of Gomulka and any others who might object on these grounds,
bloc media have been stressing that the new journal will be only
a "theoretical and informative" publication rather than a vehicle
for Kremlin directives.
CONFIDENTIAL
8 July 58 CENTRAL INTELLIGENCE BULLETIN Page 1
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���� OMR �Na.
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AIN
TAIWAN STRAIT SITUATION
TANGY
TATOPU
NANHAI
HUEHSHAN (T)
ELLITE
Changsha
ENGYANG (T)
116
G SATEILITE
Nanchan
NANCHANG NEW (P)
CHANGSH
HSIN HENG (P
SYMBOL
AIRFIELDS WITH *
DELINEATED RUNWAYS
RUNWAY SURFACE
0
7000 feet or over
(P)� Permanent
*
6000 feet to 6999 feet
(1) � Temporary
(N)� Natural
*
5000 feet to 5999 feet
(VD) � Under Construction
(UNK)� Unknown
�
4000 feet to 4999 feet
t
Seaplane station
712 13 \ ci 02- 2
Pongfou
NG (P)
NANKING E
SAT EL
120\ 122
HANG (P)
HIAN
Ch
ANGCROW (P)
HUAINING SATE1 (T)
hall jao
ingtan
Chien
Changp
YIN HSI EN
nhua CHAN
N (P) Luch
Foocho
Wenchow
Juts
GlitIA SS
GWAN(P)
UNGCHIAOM
SING (F)
�
Ill CHIA0 (P) 28_
TAOYUAN (PS)UNGSHAiN (P)
� HSINCHU (P)
KUNG KU kW
(UC)
TAICHUNG
ap.
PENVU-
14,000
TAINAN (P)
*--1� Railroad Kaohsiung
Railroad under construction
TUNGKONG
Selected road
10I 200 NAUTICAL MILES
100 200 STATUTE MILES
STATUS OF AIR FACILITIES
OPERATIONAL -- Air facilities printed in red are known or evaluated to be consistently
used by military or civilian aircraft.
OTHER --- Air facilities printed in black are those under construction, unserviceable,
or on which the availability of information is such that the current status
cannot be determined.
*Delineated runways are explained as a defined or marked area on an airfield
prepared or selected for landing and take-off of aircraft.
7 JULY 1958
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I ocurcr, I
Report No. 119 of the IAC Current Intelligence Group for
The Taiwan Strait Problem Covering the Period From 12
June to 7 July 1958
1. There were no significant combat operations in the
area during the period.
2.
no
aircraft on Liencheng airfield or on any of the coastal air-
fields in Fukien and in the Swatow area. The move of Chi-
nese Communist jet fighters south from Shanghai
evidently did not involve
any of these air bases. This flight activity may have been an
air exercise or a deployment connected with airfields farther
inland.
3. The level of chinese Communist naval activity con-
tinued high in the East China Fleet area, and declined to
moderate in the South China Fleet area. In the East, un-
determined-type exercises in the Hangchow Bay area appar-
ently terminated some time between 30 June and 1 July; but
over-all naval activity remains high. No special significance
is attached to this activity. However, the extended duration
of the exercise and the over-all high naval activity indicates
a decided increase in the operational capabilities of the Chi-
nese Communist Navy.
4, The Chinese Communist Foreign Ministry on 2 July
issued a follow-up to the 30 June government statement de-
manding that the US resume the Sib-American ambassadorial
talks within 15 days. Peiping did not indicate its acceptance
of Secretary Dulles' suggestion that the talks be shifted from
Geneva to Warsaw; at the same time, however, Peiping did
not reject the proposal. Peiping has not followed up its state-
ments on the talks with a concerted domestic or international
ro a anda campaign on the question of Taiwan.
5. There are no signs of unusual ground force or other mil-
itary activities along the Fukien coast indicative of a Chinese
Communist intention to launch major military operations against
the Chinese Nationalists in the near future. Current Communist
strength opposite the offshore islands is sufficient, however, to
permit an increase of military pressure on the Chinese Nation-
alists at any time.
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.5 "C:
IL ASIA-AFRICA Nwe
Cyprus
Cyprus is again the scene of murders, arson, intimida-
tion, and intercommunal strife as each faction tries to outdo
the other in exerting pressure on the British. Greek Cypriots
on 7 July staged a general strike to protest the death of two
demonstrators killed by British security forces during a brief
clash with several hundred Greek Cypriots. Turkish Cypriots
continue, by threats, fire, and armed attack, to force Greeks
to leave Turkish sectors of Cypriot cities. They have also is-
sued an ultimatum to Governor Foot threatening violence, pre-
sumably against the British, if the government does not ap-
prove separate municipal councils by 15 July.
In the diplomatic phase of the dispute, all interested par-
ties are showing more flexibility regarding the British proposals.
Athens has indicated a willingness to accept the plan if both union
with Greece and partition are ruled out and if the Governor's
advisers are chosen by the Cypriots instead of by Greece and
Turkey. The Turks continue to be adamant concerning eventual
partition of Cyprus but have again called for tripartite discus-
sions on the problem.
The best prospect for diplomatic progress appears to be in
discussions among the permanent North Atlantic Council repre-
sentatives of Britain, Greece, and Turkey. Permanent represent-
atives of Greece and Turkey have been recalled to Athens and
Ankara for top-level discussions.
In contrast to the expressed optimism of Prime Minister
Macmillan regarding the diplomatic prospects, Governor Foot
is discouraged by continued Greek violence, which prevents the
return of Archbishop Makarios, regarded by him as essential
for any real progress toward settlement of the problem. He has
contacted Makarios requesting a period free of violence for ap-
parently about two months.
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CONFIDENTIAL w
The Situation in Ceylon
Communal violence over the Tamil-Singhalese national
language issue, which swept Ceylon for some ten days in mid-
May, subsided about five days after Governor General Goone-
tilleke imposed emergency rule on 27 May, and the island is
now superficially calm. Goonetilleke has extended the emer-
gency for another month from 26 June and the government is
apparently determined to deal harshly with all troublesome
elements. Considerable tension remains, however.
The governor general has the power to extend emergency
rule at 30-day intervals and may retain indefinitely the firm
control he apparently now personally wields. The steict cur-
few and press censorship regulations,, however, have been
eased gradually.
The predominantly Singhalese government continues to
blame the Tamil minority for the recent violence, and various
cabinet ministers reportedly have pressed Bandaranaike to
take a stronger anti-Tamil line. Promises by Bandaranaike
and Goonetilleke to the Tamils that legislation providing for
the "reasonable use" of their language would be introduced in
Parliament may therefore remain mafulfilled indefinitely in
view of the renewed violence any concessions to the Tamils
might provoke. Bandaranaike and leading Singhalese Buddhists
began discussions of such legislation on 7 July, however.
The island's economy has suffered substantially through
property destruction, the interruption of commertial activities
and development work, and absenteeism among Tamil workers,
who constitute about one third of the government service ranks.
Communist-led strikes which disrupted the economy during
April and May were called off on 28 May, and on 4 July rival
Communist and Trotskyite unions extended a joint appeal for
communal peace. Their move, however, probably reflects
mainly a desire for a return to normal conditions, under which
they can further their individual interests.
8 July 58
CONFIDENTIAL
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Cambodian - South Vietnamese Feud Benefiting Communists
Chances of an early improvement in Cambodian - South
Vietnamese relations, which became seriously strained follow-
ing Phnom Penh's charges on 25 Stine of a Vietnamese "invasion,"
are blocked by the attitudes of top officials in both countries.
Cambodian Crown Prince Sihanouk has canceled plans to visit
Saigon fov negotiations, citing recent "insulting" Vietnamese
press articles. Vietnamese President Diem has reiterated his
conviction that Sihanouk is untrustworthy and that no good could
come from a visit at this time.
While the danger of military clashes between Cambodian
and South Vietnamese forces over the disputed common frontier
has receded, the continuing political feud between the two coun-
tries is working to the advantage of the Communists. Cam-
boulas complaints are being exploited by international Commu-
nist propaganda as "proof that South Vietnativ,is an aggressive
base prepared by the imperialists for a new war." These
charges also are creating an atmosphere in Cambodia condu-
cive to further Communist political inroads. Demonstrators
parading in Phnom Penh recently, protesting Vietnamese ag-
gression and supporting Sihanouk's return to the premiership,
carried large portraits of Chou En-lai, Nasir, Nehru, and U
Nu in addition to that of the crown prince. Cambodian in-
stability has been further aggravated by the National Assembly's
sudden overthrow of the Sim Var government last month.
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CONFIDENTIAL
Sarit Moving to Stabilize Thai Political Situation
Field Marshal Sarit, who returned to Thailand last week
after a five-month absence in the United States, appears to
be making progress in his efforts to stabilize the Bangkok po-
litical situation, which had become increasingly confused while
he was out of the country. He has concentrated on buttressing
the position of Premier Thanom, whose indecisiveness during
Sarit's absence had encouraged sniping both by the opposition
and by certain elements within the governing National Socialist
party (NSP).
Sarit is said to have lectured NSP members for two hours
on 2 July concerning criticism of Thanom, warning them that
if they wanted a strong, ruthless premier rather than Thanom,
they could have one but that they would be "sorry." This was
presumably a veiled threat that he would personally use strong-
arm tactics if they did not fall into line voluntarily under Thanom.
The Thai strong man also frustrated opposition plans for a
general debate in the National Assembly by "inducing" enough
independents to withdraw their signatures from a petition to
invalidate it.
A report that four tank companies were placed on alert
status over last week end suggests that Sarit is not yet su....e
the situation is under control. This precautionary show of
force was probably also intended as a warning to would-be
troublemakers both within Sarit's nwn ranks and in the opposi-
tion.
CONF119
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SECRET
'gime
III. THE WEST
Threatened Strike May Further Weaken Hard-Pressed
Honduran Government
A strike by 13,000 workers of the United Fruit Company
in Honduras which may begin on or shortly after 15 July would
further weaken the already hard-pressed Honduran Govern-
ment and might increase the capabilities of the Communist
minority in organized labor.
President Villeda Morales, inaugurated seven months
ago after his Liberal party won a good majority in the freest
election in Honduran history, is rapidly losing prestige. The
Treasury is virtually empty and unable to meet payrolls with-
out borrowing, yet government spending continues at a reck-
less pace. The President has so far been a timid and inept
executive, and his opponents are stepping up their attacks
against him. Powerful army leaders are already bitterly
critical of him and believe that before long they can justify
seizure of the government.
The United Fruit Company, which dominates the economy
of the vital north coast area, is insisting that two small Com-
munist-led unions join the dominant anti-Communist union in
negotiations for a new labor contract to replace the one expir-
ing on 15 July. The majority union, a member of the anti-
Communist Inter-American Regional Organization of Workers
(ORIT), adamantly refuses to sit at the same table with the
Communists. ORIT and local labor leaders believe the com-
pany is trying to use the Communists to break the majority
union. The company, which has suffered serious setbacks in
its operations in Honduras in recent years, is in no need to
grant labor's wage and other demands. The leaders of the
anti-Communist union, while generally reasonable and respon-
sible, feel they cannot afford to back down appreciably, since
such action would be exploited by the Communists, who continue
their efforts to gain control of the labor movement.
SECRET
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