CENTRAL INTELLIGENCE BULLETIN - 1958/08/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03169517
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: August 19, 1958

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19 August 1958
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CENTRAL
INTELLIGENCE
BULLETIN
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19 AUGUST 1958
I. THE COMMUNIST BLOC
Chinese Communists move naval units
into area near Nationalist-held Matsu
Islands.
IL ASIA-AFRICA
Moroccan Premier Balafrej asks that
United States recognize use of bases as
temporary; doubts that even a provision-
al agreement is possible in present po-
litical climate.
New Laotian Government offers little
prospect of checking growth in pro-
Communist strength.
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CENTRAL INTELLIGENCE BULLETIN
19 August 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Taiwan Strait: On 17 August, four Chinese Communist
naval vessels moved into the Santu Bay area on the East China
coast near the Nationalist-held Matsu Islands,
These surface units�possibly
Riga-class destroyer escorts--moved southward from their
relatively safe home bases well to the north of the Taiwan
Strait area. If confirmed, this move would indicate that
the Chinese Communists believe they have established air
superiority in this area, and may indicate a planned attempt
to bring heavy pressure on the Matsus, possibly including
total interdiction. At least 29 Communist jet fighters have
been confirmed at Lungtien airfield/
the fifth airfield in the Taiwan Strait area to become op-
erational since 27 July. Communist jet fighter strength op-
erating from the newly occupied airfields totals at least five
regiments of approximately 150 aircraft.
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Morocco: Taking the position that there are no US
bases in Morocco, only US use of French bases, Prime Min-
ister Balafrej has told the American ambassador that he
doubts that even a provisional agreement on this issue is
possible in the present climate of opinion in Morocco and
other Arab states. Balafrej appears to be reflecting the
view of King Mohamed V. The prime minister also pro-
posed that the United States take the initiative and
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recognize the "principle of evacuation," making it clear that
the use of the five US bases,in Morocco is temporary.
(Page 1)
Laos: The new government, although excluding the Com-
munist-dominated Neo Lao Hak Zat (NLHZ) patty, does not
mark a sharp break with its weak and corrupt predecessor,
Meanwhile, the trend within Laos, continues to favor the NLHZ.
(Page 3)
19 Aug 58
DAILY BRIEF ii
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I. THE COMMUNIST BLOC
No Back-up Material.
II. ASIA-AFRICA
Moroccan Premier Asks US to Recognize "Principle of
Evacuation"
During a discussion on 15 August of the future of the Ameri-
can bases in Morocco, Premier Ahmed Balafrej indicated to
the American ambassador that the United States must recognize
the "principle of evacuation," and make clear that US forces are
in Morocco temporarily and have no intention of maintaining
permanent bases. This is the first time Balafrej has made
such a request, although other officials have informally urged
that a declaration of intention to evacuate the bases be made.
Since early this year the left wing of the Istiqlal party has
been whipping up popular agitation for the total evacuation of
all foreign troops, and Balafrej told an American news report-
er recently that because France has not asked to retain four of
the five American bases, United States forces must leave when
the French forces depart.
Balafrej told the ambassador that there are in fact no US
bases Morocco--"only French bases containing US forces but
under the French flag, French guard, and conducting relations
with the Moroccan Government through French liaison." The
premier expressed some doubt that a provisional agreement is
possible in the "present climate of opinion in Morocco and other
Arab states."
The position of Balafrej, and to a lesser extent that of the
King, remains tenuous because of left-wing Istiqlal and labor
union criticism of the predominantly moderate government. Be-
lief is widespread throughout Morocco that the American bases
were used to support the landings in Lebanon and that atomic
weapons are stored at the bases.
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19 Aug 58
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The premier probably fears that any agreement might fatally
damage the prestige of the King and Istiqlal moderates. He may
not, therefore, be inclined to cooperate until the Istiqlal party
crisis is settled and a possible government reorganization com-
pleted.
-SEC-REI
19 Aug 58 CENTRAL INTELLIGENCE BULLETIN page 2
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*weCONFIDENTIAL
*eel'
New Laotian Government
The new Laotian Government excludes the Communist-
dominated Neo Lao Hak Zat (NLHZ) but is otherwise an un-
satisfactory compromise between conservative politicians
and young reformists in the Committee for the Defense of the
National Interest (CDNI). In his investiture speech, Prime
Minister Phoui Sananikone said his government would oppose
Communist expansion in Laos and eliminate corruption. With
only a minority of capable and honest young leaders, however,
it is doubtful that this government will undertake the radical
steps necessary to achieve either objective. Thus the trend
will continue to favor the NLHZ.
The notoriously corrupt and discredited ICatay D. Sasorith
is the most powerful individual in the cabinet. He is vice pre-
mier and holds both Defense and Interior portfolios. His lead-
ing role associates the new government with the corruption of
its predecessor and, judging from his past performance, he
is unlikely to undertake a vigorous reform of the security
forces and provincial administration. He opposes a drastic
monetary reform desired by the United States and will be able
to exert heavy pressure during negotiations.
The CDNI retreated from its demand for a majority posi-
tion in a new government under pressure from the crown prince
and evidence that its military support was wavering. CDNI
members hold four posts in the 11-man cabinet, heading the
important Finance and Foreign Affairs ministries. These
young leaders are regarded as honest and probably effective.
Their influence, however, is likely to be circumscribed be-
cause they have little support in the National Assembly and
will probably be outvoted in the cabinet on critical issues. In
any event their contribution will be at least partially offset by
the inclusion of three nonentities from conservative political
ranks who are considered inept and corrupt.
Bong Souvannavong, minister of education, public health,
and cults, may prove a disruptive
-GONFIDEN TM L
19 Aug 58
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influence in the cabinet. Until the May electoral campaign,
when he was double-crossed by, his pro-Communist allies, he
was Laos' leading fellow traveler and anti-American spokes-
man.
CONFIDENTIAL
19 Aug 58
CENTRAL INTELLIGENCE BULLETIN Page 4
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ULF/ V r 1.11E1V 11A.L �6111
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
Special Adviser to the President
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
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 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
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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