CENTRAL INTELLIGENCE BULLETIN - 1960/02/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03172229
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: February 12, 1960

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tail JUN 1980 REviswini
12 February 1960
Copy No.
CE\TRAL
68
INTELLIGENCE
BULLETIN
40-13-SECRET-
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12 FEBRUARY 1960
I. THE COMMUNIST BLOC
USSR rejects US proposal for treaty on
limited nuclear test ban.
USSR proposes to build three dams in
Iraq.
II. ASIA-AFRICA
Indonesian Army will oppose any attempt
by President Sukarno to appoint Com-
munists to cabinet.
Indian press implies Khrushchev's pres-
tige in India will be lowered if he fails to
influence Peiping to moderate its stand
on border issue.
Israelis to continue to send ships to Port
Said with cargoes from Israel in effort
to obtain UAR agreement to permit use
of canal under Hammarskjold formula. 0
III. THE WEST
Bolivian Government expects armed con-
flict between elements of government
party before opening of party convention
on 15 February; could spark widespread
conflagration.
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CENTRAL INTELLIGENCE BULLETIN
12 February 1960
DAILY BRIEF
L THE COMMUNIST BLOC
*Nuclear Test Talks: Soviet delegate Tsarapkin's imme-
diate rejection of the new American proposal for a limited
treaty reflects Moscow's intention to maintain its insistence
on a ban on all tests, gpparently on the assumption that fur-
ther concessions can be extracted from the United States by
exploiting Britain's disposition for a compromise arrangemen_g
The USSR now may seek to drive a wedge between the West-
ern delegations by calling for a moratorium of fixed duration
on underground tests below the US-proposed threshold and by
agreeing to a joint research program to perfect methods of de-
tecting underground tests. Any Soviet counterproposal along
these lines probably would be made conditional on US accept-
ance of Khrushchev's scheme for an annual quota of on-site
inspections of suspected nuclear explosions--a cone
advanced a year ago by Prime Minister Macmillan.
USSR-Iraq: An increase in Soviet economic activity in
Iraq, including an expansion of the credit program, may be
under way. The chief of the Soviet Hydro-Engineering Design
Institute in Moscow has stated that the USSR proposes to build
a 330-foot-high dam on the Tigris River and two smaller dams
on the Euphrates River, surveys for which have already been
completed. The Soviet-Iraqi $137,500,000 economic aid agree-
ment of early 1959 covered only planning and research for these
projects.
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A-J.6,1 N.L.Ad
144100
IL ASIA-AFRICA
Indonesia: Rx_eneral Nasution, Indonesia's army chief of
staff and defense minister, has informed anti-Communist
political leaders that the army will oppose any attempt by fill
President Sukarno to appoint Communists to the cabinet, which
he reportedly wishes to d9.2 Colonel Sukendro, deputy army
chief of staff for special affairs, appeared deeply concerned
over Sukarno-Nasution relations during an interview with the
US army attach. on 9 February. Sukendro stated that appar-
ently Sukarno feels Nasution is becoming "too mighty" and
that he has no alternative except to use the Communist party
to balance army power. Sukendro had previously given the
Impression that differences between the two officials were not
cariong
Ithrttshchev Vitit to India: The Indian press has prepared
the Indian public to expect from Khrushchev during his five-thy
visit some significant effort to improve Sib-Indian relations.
At the same time, a number of influential papers express skep-
ticism of Khrushchev's ability to influence Peiping, thus sug-
gesting that his prestige in India may be lowered if he fails to
moderate Peiping's stand on the Sib-Indian border issue.
Israel- Suez Canal: Wp. Israeli Foreign Ministry official
has stated that ships with cargoes from Israel will continue as
a "matter of principle" to appear at Port Said "from time to
time" in attempts to use the Suez Canal under the formula the
UAR previously had privately agreed upon with UN Secretary
General Hammarskjold. The Israelis presumably expect to
benefit diplomatically by keeping the UAR embroiled in the canal
controversig (Page 1)
III. THE WEST
Bolivia: The Bolivian Government is expecting armed con-
((-- Met to erupt between elements of the right and left wings of the
government party before the opening of the party convention on
,
Sis 7,7- 12 Feb 60 DAILY BRIEF ii
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15 February. The right wing may provoke a conflict; 5asmuch
as it apparently controls only 15 percent of the convention del-
egates and may want to disrupt the meeting The American Em
bassy in La Paz reports that, in view of nationwide tension
almost any incident could spark a serious conflagration.
(Page 2)
IV. SIGNIFICANT INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
Probable Developments in Japan Over Next Five Years.
ME 41-60. 9 Feb 1960.
12 Feb 60
DAILY BRIEF iii
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I. THE COMMUNIST BLOC
IL ASIA-AFRICA
Israel to Make New Attempts to Send Cargoes Through
Suez Canal
a)espite the outcome of the Inge Toft case, Israel has no
intention of abandoning attempts to send Israeli cargoes through
the Suez Canal, according to an Israeli Foreign Ministry of-
ficial. "From time to time," ships with cargoes from Israel
will appear at Port Said under conditions of the formula pri-
vately agreed on last fall by UN Secretary General Hammar-
skjold and the UAjii.
The Israeli official asserted that these cargoes will be
sent "as a matter of principle" and in order to divert Nasir's
attention from Israeli use of Eilat and the Gulf of Aqaba.] The
Israelis presumably also expect to benefit diplomatically and
to embarrass Nasir by keeping the canal issue alive. The
Danish-owned Inge Toft, detained at Port Said since May 1959,
Is now having its Israeli cargo unloaded and may be released
this week. The Greek-owned Astypalea has been interned
since December, but its future as a factor in the dispute prob-
ably is limited, inasmuch as its charter contract was renewed
on 6 February for only two months.
It was the Astypalea which first "tested" the formula which
Hammarskjold had negotiated as a means of facilitating pas-
sage through the canal for Israeli cargoes. The formula was
designed to divest Israel of technical ownership of such car-
goes, thereby making it possible in theory for the UAR to
allow them through the canal.
alammarskjold's visit to Cairo in January failed to re-
solve the dispute; andtheUAR's position now has become more
rigid. According to a Foreign Ministry official in Cairo, the
UAR "reserves the right" to seize any cargo coming from Is-
rael regardless of the terms of its shipment and, in addition
to its previous ban on Israeli-flag and Israeli-chartered ships,
will not allow through the canal any ship owned even in part 7
Israeli interests.'
12 Feb 60
CENTRAL INTELLIGENCE BULLETIN Page 1
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1110 THE WEST
Serious New Violence May Break Out in Bolivia
The American Embassy in La Paz warns that almost any
incident could spark a serious conflagration in Bolivia, par-
ticularly in the mining and agricultural regions, where armed
violence occurred in late January.
One imminent source of conflict is preparations for the
nominating convention of the governing National Revolution-
ary Movement (MNR) scheduled for 15 February. The MNR
nomination is tantamount to election. There already have
been clashes between supporters of Victor Paz Estenssoro
and Walter Guevara, left- and right-wing presidential can-
didates. A group supporting Paz is in armed control of one
well-to-do residential section, and the government is expect-
ing serious conflict between the armed civilian militia of the
two factions. The right wing may use force to disrupt or
postpone the convention, aince Guevara appears to have only
15 percent of the delegates).
If the convention opens as scheduled, the principal con-
troversy is likely' to center on the vice-presidential nomina-
tion. Leftist labor leader Juan Lechin appears to be the
leading candidate. Paz is heavily indebted to Lechin for his
own convention strength but would Probably prefer a more
conservative candidate.
12 Feb 60
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CENTRAL INTELLIGENCE BULLETIN
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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
Director, Office of Civil and Defense Mobilization
Director, National Aeronautics and Space Administration
Special Assistant for Security Operations Coordination
Chairman, 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 Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Aaministration
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 Army
Director of Naval Intelligence Department of Navy
Assistant Chief of Staff, Intelligence, Department of the Air Force
Supreme Allied Commander, Europe
Commander in Chief, Pacific
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
CONFIDENTIAL
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