CENTRAL INTELLIGENCE BULLETIN - 1960/11/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03172670
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 14
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: November 19, 1960

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19 November 1960
Copy No, C,
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO /7
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19 NOVEMBER 1960
I. THE COMMUNIST BLOC
Continued petroleum shortages in Com-
munist China are affecting transport
requirements.
II. ASIA-AFRICA
Laos--Souvanna Phouma meets major
Pathet Lao demands in agreement to
form coalition government and accept
aid from Communist China and North
Vietnam.
III. THE WEST
El Salvador's ruling junta expels military
plotters from country; action may bring
premature countercoup attempt by armed
forces.
Bolivian President declares state of
siege.
British Government showing growing re-
luctance to take countermeasures against,...,
East Germany.
0 France--Opposition to rapid implemen-
tation of De Gaulle's Algerian policy ex-
pected to converge with opposition to
nuclear strike force measure.
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44109
CENTRAL INTELLIGENCE BULLETIN
19 November 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
Communist China - POI,: Petroleum shortages in Com-
munist China, first noted in September, are continuing and
are affecting fulfillment of transport requirements,
Fukien Province is to receive only half as much
petroleum during the final quarter of this year as during the
third because of the "rather critical" petroleum supply sit-
uation throughout the country.
a shortage of foreign exchange as the reason for diminishing
petroleum supplies, the insti-
tution of emergency measures, including the modification of
all available vehicles to burn coal or charcoal instead of gas-
oline. Similar modifications have been reported from other
areas of China. In addition, civil air activity, cut back sharp-
ly during September and October, continued at about half nor-
mal levels during the first half of November.
�(Page 1)
IL ASIA-AFRICA
Laos: The joint communique issued by the government co 4
and Pathet Lao on 17 November, containing in particular an f
agreement to accept aid from Communist China and North
Vietnam and to form a coalition government, indicates Sou- 4-r-A-"--1
vanna Phouma's acceptance of the Pathet Lao's major demands.
Souvanna's concessions now appear to represent an effort to
seek help in fending off efforts to unseat him. Peiping and Ha i124 441.)
will, as the result of his willingness to accept their aid, be in
a position legally to assist him in his struggle with General
Phournits Savannakhet Revolutionary Committee. Provision
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vele
in the communique for opening the Laotian-Chinese frontier
will not in itself significantly affect overland shipment from
China but will permit air movement of Chinese supplies di-
rectly to Vientiane. (Page 2)
III. THE WEST
El Salvador: The ruling six-man junta which replaced
the Lemus regime last month has ordered several high--
ranking military officers suspected of plotting to leave the
country. Elements of the armed forces planning a coup may
now attempt to oust the junta before their preparations are
completed. The thwarting of such an attempt might give pro-41-A-/
Communist and pro-Castro elements enough time to complete
their own efforts to take over the government. The secre-
tary general of the Salvadoran Communist party is reported
to have asked for early assistance from the Costa Rican party
in organizing a Communist coup D (Page 3)
Bolivia: President Paz has declared a state of siege
throughout Bolivia following recent disorders in and around
Cochabamba, Bolivia's second=largest city. The disorders
involve clashes between rival rural leaders�nominally affil-
iated with pro- and anti-Paz political rows -which the army
has so far been unable to curtail. (Page 4)
Britain: JThe Macmillan government is expressing new
doubts about the wisdom of taking countermeasures against 72-6--
East Germany for harassment of West Berlin. The Foreign
Office has indicated that Britain may revoke the special re-
strictions on East German travel it instituted in September
if Bonn renegotiates its trade agreement with East Germany, Av-e-4--L
as now appears likely. Foreign Secretary Home is also re-
ported to have described French proposals for a Western boy=
cott of the spring Leipzig fair as "ill conceiveEff
(Page 5)
France: De Gaulle plans to hold his referendum on the
establishment of provisional government institutions in Algeria bk
19 Nov 60
DAILY BRIEF ii
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early in January, according to a French Foreign Ministry of-
ficial. Rising parliamentary opposition to De Gaulle's rapid
moves to implement his Algerian policy will almost certainly
converge with opposition to the nuclear strike force bill which
Premier Debre has decided to push through the National As-
sembly in a second vote of confidence next week. De Gaulle
has threatened to dissolve parliament in the event the bill is
defeated. (Page 6)
19 Nov 60
DAILY BRIEF
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Noir "row'
Petroleum Shortages in China Termed Critical
shortages of petroleum products in
Communist China, first noted in September, are begin-
ning to affect motor transport.
Fukien Province is to
receive only half as much petroleum during the fourth
quarter as during the third. The cutback was blamed on
the "rather critical" petroleum supply situation through-
out the country. The province estimated that it was get-
ting less than a third of the amount needed, and provincial
planning authorities are trying to stretch this limited
amount as far as possible.
the
sources of petroleum are becoming fewer, and blame the
shortage on "insufficient foreign exchange." They call for
the institution of emergency measures to ensure that pri-
ority users get what is available and to avoid the use of
vehicles whenever possible. In addition, the province has
begun to modify its vehicles so that they can run on coal or
charcoal instead of petroleum products. Similar modifica-
tions have been reported from other areas of China.
Civil air activity, cut back sharply during September
and October, continued at about half normal levels during
the first ten days of November.
It is still not known whether the volume of imports
from the Soviet Union, which supplies half of China's pe-
troleum requirements, has been curtailed.
movement of
petroleum away irom the Sino-Soviet border rail transfer
point was at only a fraction of normal in late September,
suggesting either difficulties in rail transport or a curtail-
ment in imports. Other information indicates that China is
stepping up its seaborne imports. At least nine tankers have
been scheduled to move Rumanian products before the year's
end, and China, for the first time, is arranging to import
free-world petroleum.
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The Situacori in Laos
Noir
The Souvanna government and the Communist-dominated
Pathet Lao issued a joint communiqu�n 17 November which
expressed substantial agreement on major points at issue
between the sides. The two parties agreed to a cease-fire
in all areas loyal to the Souvanna government and to early
formation of a coalition government to include the Pathet Lao's
political front, the Neo Lao Hak Sat (NLHS). It was agreed
that the government would accept aid from Communist China
and North Vietnam and send a delegation to these countries to
negotiate for economic and cultural ties.
The communiqu�ndicates Souvanna's acceptance of the
Pathet Lao's major demands in the negotiations in Vientiane
which began on 11 "October. His sweeping concessions ap-
pear to constitute an effort to gain assistance--in the form
of bloc aid and diplomatic support--to fend off efforts to un-
seat him. By reason of his agreement to accept aid from
them, Communist China and North Vietnam now are in a
position to assist Souvanna legally in his struggle against
the rightist forces of General Phoumi centered in Luang Pra-
bang and Savannakhet.
The opening of the Laotian-Chinese border should not
in itself facilitate appreciable Chinese overland logistic
support to combatants in Laos. The boundary is in rugged,
mountainous terrain, and only one major pack trail crosses
the frontier. The main avenues of aid to Pathet Lao forces
have been from North Vietnam. However, the agreement
will permit Peiping, if it should so choose, to supply Sou-
vanna and the Pathet Lao directly by air to Vientiane.
Souvanna, immediately following announcement of the
accord, left Vientiane for Sam Neua, presumably for follow-
up talks with his half-brother Prince Souphannouvong, chief
of the NLH S.
The Souvanna-Pathet accord might finally impel the
King to act. There is some possiblity that Souvanna's ap-
parent capitulation to the Pathet Lao might cause the mon-
arch to soften his scruples against unconstitutional action
sufficiently to suspend the National Assembly and form a
new anti-Communist government in Luang Prabang.
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Nair Noe
Salvadoran Junta Moves to Prevent Military Countercoup
The ruling six-man junta which replaced the Lemus
regime in El Salvador last month has ordered several high-
ranking military plotters, including former chief of staff
Cordova, to leave the country, according to various re-
ports received on 17 November by the US Embassy in San
Salvador.
Apparently the officers had been working with Colonel
Anibal Portillo, the present chief of staff, who reportedly
has a strong following among a group of junior officers.
Portillo's group is alarmed over the failure of ex-President
Osorio, who was behind the coup ousting Lemus, to re-
strict the growing influence of Communists and partisans
of Fidel Castro in the new provisional government. The
three military members of the junta reportedly were hold-
ing officers' meetings at several regimental headquarters
on 15 November in an attempt to rally military support.
The junta members said the provisional regime included
some leftists but no Communists and tried to persuade the
officers that the junta is not taking orders from Osorio.
As a result of the expulsion orders, Portillo,plotters
may attempt to oust the junta before their preparations
are completed. The thwarting of such an attempt might
give pro-Communist and pro-Castro elements enough
time to complete their ff t to take over the Salvadoran
Government, E.The secretary general of the Salvadoran
Communist party is reported recently to have asked the
Costa Rican party, which is considered to be a more ef-
fective Communist group, for early assistance in organ-
izing a Communist coupj
-SEGRE-T--
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New
Bolivian President Declares State of Siege Throughout Bolivia
President Paz Estenssoro has declared a state of siege
throughout Bolivia following recent disorders in Cochabamba,
Bolivia's second-largest city. The disorders involve clashes
between rival rural leaders--nominally affiliated with pro-
and anti-Paz political groups�which the army has so far been
unable to curtail.
President Paz' predecessor declared the valley west of
the city of Cochabamba a military zone early this year be-
cause of violent outbreaks between apparently identical rural
groups. Paz may have seized the excuse afforded by these
more recent disturbances for his declaration of a nationwide
state of siege.
Paz
was planning a fake leftist-led coup attempt within two weeks
to justify a declaration of a state of siege. Last March, Paz
reportedly provoked a police coup attempt in the Bolivian
capital to strengthen his presidential election campaign. Paz'
predecessor on one occasion in 1957 exaggerated reports of
rebellion in an outlying province to justify a state of siege
declaration which would facilitate control of labor agitation.
On another occasion the government's rightist opponents were
given an exaggerated degree of credit for demonstrations
prompted by deteriorating economic conditions and thus bore
the onus of the subsequent state of siege.
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British Attitude on Berlin Countermeasures
trhe Macmillan government is expressing new doubts
bout the wisdom of taking countermeasures� against East
rmany for its harassment of Berlin. Signs that Bonn
s likely to renegotiate its trade agreement with East Ger-
any are reinforcing London's general reluctance to use
rade restrictions as a cold-war weapon. A Foreign Of-
fice official stated on 17 November that if West Germany
renegotiated the agreement, the Foreign Office might no
longer be able to resist domestic pressures for revoca-
tion of its restrictions on East German travel. I
L'I'he British reluctance to participate in sanctions has
become increasingly apparent in recent weeks, in the ab-
sence of further harassments from East Germany, Foreign
Secretary Home took offense because the United States did
not consult London before refusing export licenses on
steel and magnesium products to East Germany, apparent-
ly seeing this as putting indirect pressure on Britain to
follow suit. In discussions in Bonn with French, Ameri-
can, and German officials concerning possible future
economic sanctions, the British representatives used de-
laying tactics to prolong preparation of a policy paper.
Consideration of this paper within the British Government
has brought objections from the Board of Trade that rio
economic embargo against East Germany could be effec-
tive unless applied to the Soviet bloc as a whole."
flAt a four-power meeting in Bonn cin 15 November,
the-British read a purported instruction from Foreign
Secretary Home describing .a French proposal to boycott
the spring Leipzig lair as "ill conceived." It stated that
London had no legal means to prevent British businessmen
from participating, and that moral suasion would be a
"futile exercise.li
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De Gaullets,...Aerenaum b et ior tarly Janua
A French Foreign Ministry official told the US Em-
basssy in Paris on 17 November that the referendum on
De Gaulle's plan to establish separate and provisional
government institutions for Algeria will take place early
in January. The director of the French Information Serv-
ice in Algiers stated the same day that a minimum of six
weeks must elapse between the actual announcement of a
referendum and the day of voting. According to the con-
stitution, the referendum must be called while parliament
is in session; the current session ends on 16 December.
An announcement therefore is probably imminent, although
as of 17 November the text of the referendum proposals was
reportedly not ready.
De Gaulle's rapid moves toward a separate Algerian
administration have provoked sharp hostility from the pro-
ponents of a French Algeria as well as criticism from the
left and center for his apparent bypassing of the Algerian
rebels. A spokesman for the French Algeria Front says
his organization will use illegal means if necessary to op-
pose the referendum. Security forces in Algeria are being
augmented, and French officials there are trying to con-
vince the embittered European settlers that any change in
Algerian institutions is provisional. They insist that the
future status of Algeria will be decided not by the January
voting but by a later referendum on "self-determination."
De Gaulle's present moves apparently do not include nego-
tiations with the Algerian rebels, and French officials have
stressed that the army will remain in Algeria pending self-
determination. De Gaulle's aim is to drive a wedge between
the rebellious settlers and the army.
The current trial of the January insurrectionists and
the second attempt by opponents of the government to pass
a censure motion on the nuclear striking force bill will pro-
vide a complex of issues around which the opposition to De
Gaulle can rally. The censure motion, which is expected to
come to a vote on 22 November, will afford rightists another
opportunity to join forces with elements opposed to De Gaulle
on other issues. De Gaulle has threatened to dissolve the
National Assembly in the event the bill is defeated.
CONFIDENTIAL
1 NT rtv fin
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Niue TIAL
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 Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State 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
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
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
Commandant, United States M:arine Corps
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
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