CENTRAL INTELLIGENCE BULLETIN - 1960/12/31

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03172676
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 21
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: December 31, 1960

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31 December 1960
Copy No. C
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO. 53
NO MANGE IN CLASS.
0 DECLASSIFIED
MASS, CHANGeD TO: IS S C
NEXT Rali-IN DATE: abto
ADM HI1 70-2
1 0 JUN 1980 REVIEWER I
DATE!
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"Z-ELIS,E. 1 *Ime
LATE ITEM
*Laos: The rapidity of the advance of anti-government
forces in the Plain des Jarres area northwest of Xieng Khouang
town now makes it probable that there is a "sizeable aggression"
from North Vietnam, according to a joint message from US
missions in Laos. On the basis of fragmentary information,
the message reports that the area is expected to fall no later
than 1 January.
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31 DECEMBER 1960
I. THE COMMUNIST BLOC
Khrushchev to visit several African coun-
tries in late January and early February. 0
Communist China--Natural calamities
suffered in 1960 affecting entire economy.�
East Germany and USSR renewal of trade
agreements with Bonn.
II. ASIA-AFRICA
Cambodian Prince Sihanouk obtains addi-
tional bloc economic aid and reiterates
Cambodia's support for some Sino-Soviet
foreign policy objectives.
African "summit" conference in Casa-
blanca from 3 to 7 January may take on
strongly anti-French complexion.
UAR--Nasir's resentment of Western pol-
icies toward Israel and Africa may lead
him to abandon "positive neutralism."
Uganda�Violent outbreaks may occur
soon as result of impasse between Brit-
ish Government and tribal rulers of
Buganda Province.
0
0
�The situation in Laos.
()The situation in the Congo.
III. THE WEST
()France to withdraw two infantry battalions
from Germany to bolster security forces
in Algeria during 6-8 January referendum.
�Peru breaks diplomatic relations with
Cuba.
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CENTRAL INTELLIGENCE BULLETIN
31 December 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-Africa: _Soviet Premier Khrushchev will visit
Africa in late January and early February, according to 0
the Indian ambassador in Moscow. Although the specific
schedule and dates have not been fixed, Khrushchev has ac- ./a1L-6-44-j
cepted invitations to the UAR, Guinea, Ghana, Liberia, and
Ethiopia. �The Soviet charge in Lome recently discussed
with Prime Minister Olympio a visit by the Soviet premier
to Togo in January as part of a West African tour. Khru-
shchev also appears to be angling for bids from Libya and
Sudan, and may hope to include Morocco and Mali--which
have recently expanded their ties with the Communist bloc
on his African itinerary.
Communist China: Communist China's first announce-
ments of 1960 economic achievements indicate a poor harvest
year and probable underfulfillrnent of the plan in industry.
Natural calamities are cited as affecting the entire economy.
People's Daily reports that of the 150,000,000 acres affected
by the "severest natural calamities in 100 years," more than
one third sustained serious losses, with no harvest at all in
some places. Light industry, which depends on agriculture
for raw materials, will not reach planned goals this year.
Peiping claims, however, that 1960 targets for steel, iron,
coal, electric power, petroleum, machine tools, and trac-
tors will be reached in spite of production and transport in-
terruptions. There is considerable evidence that 1960 has
been a poor agricultural year, but probably no worse than
1959, also a year of bad weather and disappointing yields. By
overstressing the severity of natural calamities, the regime
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may be attempting to exonerate its policies from blame for
the serious food shortages and also preparing the ground for
a return to announcing realistic statistics �a practice aban-
rinragarl rivrri net ihn nnri frymi7n -mg /?
Ubbit .e; zest (iermany: 'rne tieximiity ana initiative mis-
played by the Communist representatives which led to the
conclusion of the negotiations on renewing Soviet and East
German trade agreements with Bonn reflect Ithrushchev's de-
sire to avoid precipitating a crisis at this time which might
jeopardize his efforts to establish a conciliatory atmosphere
on the key issue of Berlin before making a formal demarche
for a new summit meeting. A further important factor was the
desire to ensure continued delivery, to East Germany of much-
needed industrial goods from West Germany. The bloc nego-
tiators offered compromise formulas which permit both sides
to save face but do not prejudice the fundamental.Communist
claim that East Berlin is controlled by the East Germans and
that Bonn has no authority to negotiate for West Berlin.
I I. ASIA-AFRICA
Cambodia - Communist Bloc: Prince Sihanouk strength-
ened Cambodia's commitment to some Sino-Soviet foreign pol-
icy objectives and obtained extensive economic aid during his
recent tour of Communist countries. Peiping has agreed to
supply new grants and technical assistance totaling nearly
$40,000,000. The Soviet Union is giving Cambodia a techno-
logical institute. In addition, the USSR and Czechoslovakia
are extending credits for industrial development, hydroelec-
tric dams, and geological surveys. In return, Sihanouk reit-
erated Cambodian support for Chinese Communist and Mon-
golian admission to the UN and negotiated a treaty of friend-
ship and nonaggression with Communist China,
Page 1)
31 Dec 60
DAILY BRIEF
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Africa: The African "summit" conference in Casablanca
from 3 to 7 January, originally planned to deal primarily with 69
the Congo, may take on a strong anti= French complexion in
view of African anger over the recent French atomic tests
and a report that Algerian rebel premier Ferhat Abbas will
be an active participant. Antoine Gizenga, leader of the Con- 6
go's Stanleyville "government," or his representative in Cairo
may also attend. King Mohamed V, who personally called the
conference and accordingly postponed his scheduled Asian trip,
is reportedly chagrined because only Nasir, Nkrumah, Toure,
and Keita of the some 14 Afro-Asian chiefs of state invited have
accepted. Because of the lack of preparation for the conference
and the divergent views of the participants, it will be difficult
for them to agree on any significant practical action.
(Page 2)
UAR:STasir has repeated the suggestion made in
his bitterly anti-Western speech of 23 December that his oppo-
sition to Western policies toward Israel and Africa may lead him
to abandon "positive neutralism."
Nasir restated the main points of the
speech, adding that a benevolent attitude in Washington and Lon-
don was not "indispensable" to the UAR. Nasir claimed to have
information that the UK and US as well as France aided Israel
to develop its military capability and alleged atomic potential,
commenting that the. USSR has agreed to furnish him additional
arms including MIG-19s
(Page 4)
Uganda: Violent outbreaks may occur within the next few
days in Britain's Uganda protectorate as a result of the impasse
between the British Government and the tribal rulers of Buganda
Province. Most Buganda officials,- concerned that the prov-
ince's special privileges will be lost as Uganda moves toward
independence as a unit, appear, adamant in their intention to de-
nounce the province's agreements with Britain and attempt 'kip
31 Dec 60
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DAILY BRIEF iii
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CONGO
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ANGOLA
31 DECEMBER 1960
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REPUBLIC OF THE CONGO
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RUANDA
-URUNDI
Usumbura
FEDERATION OF RHODESIA
AND NYASALAND
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5ecede from the protectorate shortly. Britain refuses to ad-
mit the validity of the Buganda position and is moving African
troop reinforcements into the province. The secession at-
tempt has little chance of succeeding, and the Buganda King
and his lieutenants have urged their followers to avoid vio-
lence. Rowever, extremist-led demonstrations are a strong
possibility:5 (Page 5)
Laos: [The Boun Oum government appears to be shaping
policies that could have severe adverse consequences both
domestically and internationally. General Phoumi's faction,
which favors a revolutionary overhaul of the government struc-
ture, seems to be overruling those who advocate parliamentary
steps to formalize the government's status. Lao leaders, an-
gered by what they consider to be an inimical attitude on France's
part, are threatening to oust the French military training mis-
sion and close down the French base at Seno in south-central
Laos. Meanwhile, Phoumi's troops advancing on the Kong Le-
Pathet Lao position north of Vientiane are reported to have met
increased resistance. The Laotian government has announced
that it has intelligence reports that several North Vietnamese
"battalions" have attacked a border town in northeast Laos but
ain unconfirmecS
these l'PlInrts rta 7
(Page 6)
Congo: elgian Government officials have indicated that
they will approve a request by President Kasavubu for permis-
sion to land troops in Ruanda-Urundi for operations against dis-
sidents in Kivu Province, according to the American Embassy in
Brussels. An attempt to move 200 Congo Army paratroops from
�Luluabourg to Bukavu--now controlled by Gizenga sympathizers--
appears imminent; four DC-4 aircraft commandeered by Colonel
Mobutu from the Congo's civil airline reportedly are to airlift
the force to Usumbura. Ruands-iiriindi ahnnt 7 miles from
Bukavu, plans formu-
lated by ti u Deiglan kdommunists envisage the Gizenga dissidenteD
,
31 Dec 60
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Cgaining control of large areas of Kivu and Katanga provinces
throug4 coordinated guerrilla activitf3 (See Map)
LISresident ICasavubu reportedly has agreed to meet with the
UN Conciliation Commission�probably including Hammarskjold�
in Leopoldville on 3 January. Most of the Congo's political leaders
will probably not be in Leopoldville at this time making it un-
likely that the meeting will enntrihnte sinif nHv 1-n a nnlitiral
solution in the Conzo-.-1
France-Algeria: France has notified NATO that it is
temporarily withdrawing two infantry battalions, number-
ing about 1, 600 men, from its contingents in Germany in order
to bolster security forces in Algeria during the 6-8 January
referendum period. According to the official note announcing the
withdrawal, the troops will be away from their regular stations
from 31 December to about 15-20 January. Reports of riots
planned by both Moslem and rightist groups in the first half of
January have probably led Paris to adopt this means of strengthening
security forces in the major cities of Algeria, thus avoiding further
depletion of metropolitan police ranks or recall of additio7a1 army
units from operational areas in Algeria
*Peru-Cuba: L_Peru has severed diplomatic relations with
Cuba, it was announced in Lima yesterday. Peruvian President
Prado on 28 December had authorized such a move within three
days, provided some other Latin American government would
take similar action shortly. The Peruvians have been urging the
Colombian and Argentine governments to take the same step.
Argentina and Cuba maintain regular diplomatic relations; Colombia
and Cuba do not now exchange ambassadors, but there has been
no formal break in relations,
(Page 8)
31 Dec 60
DAILY BRIEF
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Cambodia Accepts Extensive Bloc Aid
Prince Sihanouk, who returned on 26 December from a
tour of Communist countries, has strengthened Cambodia's
commitments to some Sino-Soviet foreign policy, objectives
in return for extensive bloc economic aid. He reiterated
Cambodia's support for Peiping's claims to UN membership
and control over Taiwan and for Mongolia's admission to the
United Nations; he concurred on major Soviet goals relating
to disarmament, a summit conference at the United Nations,
and even UN reorganization. He also signed a treaty of friend-
ship and nonaggression with Communist China and joined Pei-
ping in condemning the "acts of certain countries" designed to
create tensions in Southeast Asia.
In return for these probloc statements, Sihanouk brought
home extensive economic commitments. Peiping, whose eco-
nomic aid to Cambodia had totaled $28,000,000, pledged new
grants for nearly $40,000,000 to expand and complete Chinese
aid projects now under way, to build a steel mill and machine
plant, and to assist the reorganization of Cambodia's producer
cooperatives. Also included in Peiping's aid was technical as-
sistance for the Phnom Penh - Siha,noukville railway project.
From the Soviet Union, Sihanouk obtained the pledge of a 12-
passenger helicopter and a technological institute.
For the first time, Cambodia has accepted bloc credits
repayable in Cambodian produce. The Soviet Union agreed to
carry out a� "deep geological survey"--presumably for oil--and
studies and eventual construction of hydroelectric dams on the
Kamchay and Mekong rivers. Czechoslovakia, on a similar
basis, agreed to build an 18,000-ton sugar refinery, a tire fac-
tory, and a tractor assembly plant. Cambodia plans to launch
joint shipping companies with both Communist China and Czech-
oslovakia.
C-ONFIDENTIAL
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African Leaders' Conference at Casablanca
The African "summit" conference in Casablanca from
3 to 7 January may take on a strong anti French complexion,
in view of African anger over the recent French atomic tests
and the report that Algerian rebel premier Ferhat Abbas will
be an active participant, instead of merely an observer. None
of the pro-French African states will be represented. The
conference was originally, planned to deal primarily with the
problem of UN involvement in the Congo, and India, Ceylon,
and Indonesia were accordingly invited. .The American Em-
bassy in Rabat says that either Antoine Gizenga, leader of the
Congo's Stanleyville "government," or his representative in
Cairo is expected to attend.
King Mohamed V called the conference on his personal
initiative, and accordingly postponed his Asian trip until 10
January, apparently to the consideralo le annoyance of the gov-
ernment concerned. The King is reportedly much chagrined
because--of some 14 Afro-Asian heads of state invited�only
Nasir of the UAR, Nkrumah of Ghana, Toure of Guinea, and
Keita of Mali have accepted. Toure will presumably remain for
only two days, as he is scheduled to begin an official visit to
Belgrade on 5 January. Libya, after considerable hesitation,
is sending its foreign minister, and the Ceylonese ambassador
in Cairo will attend. President Bourguiba of Tunisia probably
avoided attending because of the strained relations between
Morocco and Tunisia over the Mauritania issue. Premier
Olympio of Togo is said to have declined because he feels that
African states should support the UN in the Congo. Refusals
from India and Nigeria have been particularly embarrassing.
The American Embassy in Rabat feels that these developments
have widened the rift between the King and the crown prince,
who took over the actual arranging of the meeting.
A Moroccan officialhas said that the conference must end
with "practical decisions for the future of the African continent."
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Because of the lack of preparation--the first invitations were
apparently not issued until after mid-December�and the
divergent interests of the participants, it will be difficult
for them to agree on any significant action, although Nkru-
mah reportedly will propose the establishment of a joint
African high command. However, a strong condemnation
of France or an attack on the UN posli th.Ih. Congo would
be exploited by the Communist bloc.
31 Dec 60 CENTRAL INTELLIGENCE 11111 I Fru.'
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Nasir Threatens Abandonment of "Positive Neutralism"
iTTAR PrpairicAnf Nactir
continued to display the
strong anti-Western feeling which marked his Port Said speech
on 23 December. �Throughout the conversation,
Nasir revealed his "basic distrust" of the West
and his particular concern with Western support for Israefc
[As he had done at Port Said, Nasir suggested that his pol-
icy of "positive neutrality" was becoming difficult to maintain
because of his conflict with the West over Israel and Africa.
This attitude was reflected on the same day by Deputy Foreign
Minister. Sabri, who told the American ambassador that although
Cairo wanted good relations with the US, such issues as Pales-
tine, Algeria, and the Congo were serious obstacles.(
Nasir told the Canadian envoy he had information proving
that the US and UK had aided France in supplying arms to Israel
and in developing Israel's reported atomic potential. He said
the USSR had agreed to increase the UARts supply of arms and
would furnish MIG49 aircraft, but mentioned no date. Moscow
and Cairo have been negotiating over MIG-19s for nearly a yearj
(With regard to Western aid to the UAR, Nasir commented
that while it was very "useful" to receive American wheat, for
example, the UAR had done without it before and could again.
He did not feel that a "benevolent attitude" on the part of Lon-
don and WashinpInn IAMS inr1iRne3n7lole to the UAR:1
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No.
Tension ilistrig in uganaa
[Violent outbreaks may occur in the next few days in
Britain's Uganda Protectorate. as a result of the continuing
impasse between the British Government and the tribal
rulers of Buganda Province, Most Buganda officials,
concerned that the province's special privileges will be
lost under current British plans to move Uganda toward
independence as a unit, appear determined to denounce
its agreements with Britain and attempt to secede from the
protectorate. Britain refuses to recognize Buganda's posi-
tion and is moving .a battalion of African troops into the
province, reinforcing the battalion already there.:\
CRelations between Buganda and Britain have been tense
since last September, when negotiations between British of-
ficials and a delegation headed by the Buganda King broke
down. Colonial Secretary Macleod, who maintains that the
province's status cannot be changed unilaterally, has urged
the Buganda officials to take part in the consultative process
which is to culminate in the writing of a new Uganda constitu-
tion next summer. The King and his advisers, however, have
refused to participate without a guarantee that the constitution
will establish a federal structure. Buganda is boycotting the
Uganda Legislative Council, and attempts to register the
province's inhabitants for the elections early next year have
been almost completely unsuccessful:3
cm the face of the British refusal to negotiate the seces-
sion question, the Buganda efforts to set up a separate state
have little chance of success. The King and some of his ad-
visers, apparently realizing the weakness of their position,
have urged their followers to avoid violence. However, the
idea of secession has taken hold of the popular imagination
and is being exploited by Buganda extremists. Pro-independ-
ence sentiment thus is likely to run high, and extremist-led
demonstrations are a strong possibility.,,
CONFIDENTIAL
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Situation in Laos
CThe Boun Oum government appears to be shaping policies
that could have severe adverse consequences, both domes-
tically and internationally. General Phoumits faction, which
favors a sweeping overhaul of the entire government structure,
seems to be overruling those who advocate parliamentary steps
to leeitimate the government's status King Savang, however,
is interested in estab-
lishing the full legality of the present government in interna-
tional eyes, and his counsel may yet prevail in Vientiane.
Savang admitted that he was running into a great deal of dif-
ficulty, since the government leaders were a "revolutionary
group.r5
The entire present leadership strongly, resents the French,
and ere is growing talk of ousting the French military train-
ing mission and closing down the French base at Seno, near
Savannakhet. Aside from its international political repercus-
sions, such action would throw into question US support of the
Lao armed forces. Such support is carried out in cooperation
with the French, whose.military presence in Laos is specifically
authorized by the 1954 Geneva Agreement. Laotian officials
have long been critical of what they consider France's inimical
attitude, and they now are accusing the French of helping the
Kong Le rebel forces prior to the recapture of Vientiane
EPhoumi's columns are continuing their slow advance on the
Kong Le - Pathet Lao stronghold of yang Vieng, some 70 miles
north of Vientiane, but are meeting stiffer resistance. A gov-
ernment probe beyond the recently recaptured town of Phong
Hong, about 30 miles south of Vang Vieng, was turned back by
the heaviest enemy artillery barrage since the fighting in Vien-
tiane. The terrain makes the Vang Vieng area easily defensible,
and the continuing build-up of the Kong Le - Pathet Lao forces
with bloc supplies makes it increasingly uncertain that the gov-
ernment's oneration will be successfulD
All six of the Soviet AN-12 heavy transports which flew to
North Vietnam from the USSR on 27 December have either
31 Dec 60
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returned or are scheduled to return. A seventh remains at
Canton, apparently because of mechanical difficulty. None of
those which have already returned to the USSR has been sched-
uled for a return trip to Communist China, but a Soviet
based at Bykovo is to pick up cargo at Kazan for Hanoi.
The airlift into Laos from North Vietnam,
continues through 30 December.
&he North Vietnamese are apparently improving their in-
stallations in the Dien Bien Phu area, which is believed to be a
logistical support base for the Pathet Lao. The airstrip is in
excellent condition and there is extensive construction in the
area,
Dien Bien Phu,,3
a new airstrip about 20 miles southwest of
Vientiane announced on 31 December that it had intelligence
reports that several "battalions" of North Vietnamese troops have
attacked Nong Het in Xieng Khouang Province near the border with
North Vietnam. Radio Hanoi has broadcast a denial of the reported
invasion. An attack on Non Het began on 29 December,
but the forces involved have not
been identified as North Vietnamese. Other anti-government forces
are reported moving in the direction of Ban Ban also in Xieng Khouang
Province, and the town of Xieng Khouang,
31 Dec 60
CENTRAI INTFI I InFKICF RI III FTIKI 13 age 7
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Noe Name
Perti Breaks Diplomatic Relations With Cuba
CPeru has broken diplomatic relations with Cuba, it was
announced in Lima yesterday. Peruvian President Prado on
28 December had authorized Prime Minister Beltran to proceed
with such a move within three days, provided that some other
Latin American government would soon take similar action. Bel-
tran felt that an editorial campaign in Lima newspapers and publi-
cation of correspondence recently seized in a raid on the Cuban
Embassy in Lima would be sufficient to win strong popular back-
ing in Peru for such a move. One letter from the Havana Foreign
Ministry to the Cuban Ambassador in Lima reveals that Cuba has
been siding with Ecuador in the recent flare-up of the highly emo-
tional dispute over the Peruvian-Ecuadorean boundary. According
to the letter, the Cuban Government also supports abrogation of
other territorial settlements in the western hemisphere, going
back as far as Mexico's cession of territory to the United States_./
The Peruvian Government has been seeking Argentine and
Colombian agreement to break relations with Cuba at this time.
The Argentine Government may not want to lose its listening post
In Havana, however�particularly since Argentine Ambassador
Amoedo, a long-standing friend of Fidel Castro although strongly
pro-US, has been particularly active there. Moreover, an
Argentine spokesman recently stated that the embassy in Havana
was important as a refuge for anti-Castro Cubans-.}
[Colombia and Cuba do not now exchange ambassadors, but
there has been no formal break in relations. Earlier this month
Honduran Foreign Minister Alvarado Puerto proposed to the
Colombian and Venezuelan Governments that the three jointly
sever diplomatic relations with the Castro regime. On 28 De-
cember�possibly prior to the Peruvian demarche for a Colombian
break with Cuba--the Colombian Foreign Ministry announced that
its former ambassador to Havana would not return to Cuba but that
a lower-ranking Foreign Ministry official was to be sent therei:j
Crhe Honduran President, concerned over a strong pro-
Castro faction within his own Liberal party, would be reluctant to3
31 Dec 60
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'[break with Cuba unless in so doing he associated himself
with other democratic Latin American governments with
high prestige in Honduras, such as Venezuela and Colombia.
The Peruvian Government is generally regarded as more
conservative than those of Venezuela, Colombia, or Honduran
-CONFIDENTIAL-
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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 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 Treasury Department
The Secretary of the Treasury
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 Marine 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
Atomic Energy Commission
The Chairman
Federal Bureau of Investigation
The Director
National Security Agency.
The Director
National Indications Center
The Director
Approved for Release: 2020/03/13 C03172676