CENTRAL INTELLIGENCE BULLETIN - 1958/03/19

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03177780
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 17
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: March 19, 1958

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19 March 1958
3.3(h)(2)
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Copy No. 137
CENTRAL
INTELLIGENCE
BULLETIN
DOCUMENT NO.
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19 MARCH 1958
I. THE COMMUNIST BLOC
High Soviet diplomat reiterates Soviet
objections to substantive preparations
for summit conference; says heads of
governments should determine whether
agreements are possible.
II.ASIA-AFRICA
Indonesia - Ten Soviet merchant ships
totaling 20,000 tons arrive for use of
Djakarta. --Sumatran dissidents may
attempt to retake Medan.
United Arab Republic - Sarraj
as Nasir's proconsul for Syria.
Egypt will again send intelligence parties
into Israel to report on military activity;
but Egyptian estimate of Israeli intentions
remains calm. 0
--T-CW-grte-TRET
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Nationalist Chinese foreign minister says
Taipei will suspend procurement in Japan
in retaliation for private Tokyo-Peiping
CI trade agreement.
Largest Japanese labor federation
.Lnvites Chinese Communist representa-
tives to help prepare for Asian-African
labor conference.
III. THE WEST
France - Gaillard wins confidence
vote on constitutional reform; basic
differences within his coalition remain.
West Germany - Adenauer may oust
Foreign Minister Brentano after 20
March foreign policy debate.
LATE ITEM
New provincial government formed in
0 West Pakistan.
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CENTRAL INTELLIGENCE BULLETIN
19 March 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Summit --Soviet view: A high Soviet diplomat in Paris
old American embassy officials on 17 March that instead of
there being prior substantive preparations, the heads of gov-
ernment should determine whether agreements were possi-
ble since the USSR--"just like" the US--might be "holding
back" compromise solutions for bargaining purposes. He
also said that neutralist participation in summit talks is not
essential, but that "it was agreed, of course, that there
would be parity in East-West representation."
(Page 1)
II. ASIA-AFRICA
Soviet ships for Indonesia: Ten Soviet merchant ships
totaling about 20,000 tons arrived in Djakarta between 15 and
18 March. These ships were purchased under the terms of
the recently ratified $100,000,000 Soviet loan agreement and
represent further material assistance to Indonesia from the
bloc. Nearly 5,000 Soviet jeeps have been purchased by Indo-
nesia under separate arrangements.
Dissident forces which withdrew southward from Medan
nn 17 Mareh are snmewnerp between Mpdan and Siantar.
supporting
aissictent troops, who may join the iorces trom Medan, are
moving toward the Medan area from Atjeh and Tapanuli. These
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1 IN. IN./ LI
movements may foreshadow either a new attempt to take
Medan or fighting around the town of Siantar which is
held by government troops. (Page 2)
(Map)
Syria: Sarraj is emerging more clearly as Nasir's
proconsul for Syria. During Nasir's stay in Syria he re-
moved the civilian politicians from active policy-making
roles, and Sarraj is filling this gap. At the same time,
army commands and security forces apparently are being
reorganized in rt to block the rise of any other mil-
itary politicians.
Egypt - Israel; The Egyptian commander in chief on
7 March authorized dispatch of intelligence parties into
Israel to gather information on Israeli military activity.
Egyptian intelligence missions into Israel were ordered
halted in June 1957. Egypt's willingness to undertake in-
filtration of Israel appears to reflect concern over Israel's
reaction to increasing Egyptian activity in the Gaza strip
and eastern Sinai. Egyptian intelligence appreciation of
Israeli military activity as recently as 17 March, however,
remained calm.
Taiwan - Japan: Nationalist China's foreign minister
states Taipei will suspend all procurement in Japan�in-
cluding US-financed procurement�and may initiate a boy-
cott of Japanese goods in retaliation for the recent negotia-
tion of a private Japanese trade agreement, with Communist
China. Any boycott would be a drastic step-because of
Nationalist China's heavy dependence on Japan as a market
and a source of supply. (Page 4)
Japan: Japan's largest labor federation, Sohyo, has de-
cided to invite labor representatives from Communist China
1 and five other countries to meet in Tokyo on 15 May as a
-)preparatory committee for an Asian-African labor confer-
ence. The American ambassador in Tokyo comments that
19 Mar 58
DAILY BRIEF ii
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the inclusion of Chinese Communist representatives is a
departure from Sohyo's previous attitudes and may indi-
cate a weakening of the moderate elements in the federa-
tion. (Page 5)
III. THE WEST
France: Gaillard's 282-196 victory in the 18 March
confidence vote on constitutional reform has not resolved
the basic differences within his coalition, which is increas-
\ , ingly split over the North African situation. Speculation
f) on the possible return of General de Gaulle to power con-
tinues. (Page 6)
West Germany Foreign Minister Brentano may be
ousted by Adenauer unless Brentano improves his perform-
ance in the 20 March foreign policy debate. One possible
replacement might be Minister of the Interior Gerhard
Schroeder, whose appointment would pacify the disgruntled
Protestant elements in the Christian Democratic Union
and would counteract Defense Minister Strauss' policies
and ambitions. (Page 7)
LATE ITEM
*New Government in West Pakistan: By announcing for-
mation oTTnew government in West Pakistan on 18 March,
Prime Minister _Noon's Republican party may have successful-
ly foiled a maneuver begun earlier in the day by the opposition
Moslem League--with the support of President Mirza---to oust
the Republicans from the government of West Pakistan, shake
Noon's position in Karachi, and eventually supplant Noon's gov-
ernment with one dominated by the Moslem League.
Page 8)
19 Mar 58
DAILY BRIEF iii
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I. THE COMMUNIST BLOC
USSR Hints at Compromise at Summit Level
The Soviet counselor of embassy in Paris, after
repeating Soviet objections to prior substantive prep-
arations, told American officials on 17 March that the
heads of government themselves should determine whether
agreements were possible, since the USSR--"just like"
the US--might be "holding back" compromise solutions
for bargaining purposes. He argued that "Bulganin might
be able to agree on things to which Gromyko could not."
The Soviet official also stated that the USSR does not
now consider neutralist participation in summit talks es-
sential, and declared that it "was agreed, of course," to
have equal East-West representation at the summit with
the United States, Britain, France, and Italy from the West,
and the USSR, Poland, Czechoslovakia, and Rumania repre-
senting the Communist states. In early March Soviet offi-
cials indicated in private conversations that the USSR would
also be willing to forego neutralist representation at a for-
eign ministers' session.
These developments are apparently calculated to dem-
onstrate that Soviet "reasonableness" makes unnecessary
negotiations to determine whether there are favorable pros-
pects for agreement at the summit.
-CONFIDENT42412-
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II. ASIA-AFRICA
Situation in Indonesia
Anti-Djakarta troops which withdrew to the south from
Medan on 17 March after having temporarily seized the ty,
are somewhere between Medan and Siantar.
anti-Djakarta forces from Atjeh and Tapanuli are converg-
ing on Medan, which suggests that the dissidents may attempt
to reoccupy the city. The Tapanuli troops would approach
Medan through Siantar where , progovernment forces are lo-
cated. The Padang radio reports that fighting has already
occurred near Siantar. Approximately 200 armed Atjehnese
youths are said to have arrived in Medan on 17 March, and
sniping reported on the outskirts of the city could be attrib-
uted to them.
immediate news of any ships that could be used to
transport supplies.
Soviet merchant ships which arrived in Djakarta on 18 March
were not carrying cargo. Purchased under the terms of the
recently ratified $100,000,000 Soviet loan agreement, these
ships are the first significant material assistance to arrive
in Indonesia from the bloc. They may be pressed into service
to support government military operations against the dissi-
dents, after being refitted fOr local use.
TOP-SEGRET
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Syria Under the "New Order"
Nasir's stay in Syria during the past three weeks pro-
duced a wave of popular enthusiasm for the new union, and
resulted in the emergence of former Syrian G-2 chief Sarraj
as Nasir's proconsul for the Syrian province. The radical
nationalists and masses view the UAR as a great step toward
long-desired Arab unity. Conservative elements regard Egyp-
tian ascendancy as distasteful but essential medicine for Syria's
economic and political ailments; they welcome the suppression
of the Communists and transfer of army politicians to civilian
jobs.
Officially minister of interior for the Syrian region of _the
UAR, Sarraj now occupies the office space traditionally re-
served for the prime minister and for the first time his picture
is being prominently displayed throughout Damascus. Nasir
has ordered all security forces, with the exception of the
army, be placed under SarraPs interior ministry.
The public enthusiasm for the "new order" and the osten-
tatious manifestations of vigorous leadership in Syria are
reminiscent of the era following Syria's first military coup
in 1949, when Col. Zaim seized the reins of government.
Within two months the public grew weary of the regime's in-
competency and the lack of real progress. As in the earlier
case, such civilian politicians as Akram Hawrani and ex-
President Quwatli have been irked by many of the new po-
litical appointments and the downgrading of their friends
from positions of real power.
SECRET
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400,
Nationalist China Applies Economic Pressure
Against Japan
Vice Foreign Minister Shen informed the Chinese
Nationalist Legislative Yuan on 18 March that the Nation-
alist Government has suspended the signing of trade con-
tracts with Japanese suppliers. Foreign Minister Yeh had
previously said orders were to be issued to the Central
Trust of China for the suspension of all procurement in
Japan, including procurement financed by US aid. He indi-
cated that the Nationalist Government is prepared to face
possible suspension of the release of US aid funds as a re-
sult.
Yeh stated that the action is necessary to demonstrate
proper "moral indignation" over the stipulation in the re-
cently negotiated private Japanese,� Chinese Communist trade
agreement permitting the Communists to fly their flag over
their proposed trade mission headquarters in Tokyo. Other
reports state that the Nationalists are also considering boy-
cotting Japanese goods.
These Nationalist actions if carried out would be dras-
tic steps, as Japanese procurement from Taiwan also would
be affected. The bulk of. Taiwan's exports of rice and sugar,
the main source of the island's foreign exchange, is sold to
Japan.
Japanese trade with Taiwan and with the Chinese main-
land is approximately equal in value at the present time, but
the former offers little hope for expansion. If forced to make
a choice between the two, Japan might, be.. influenced by the
considerable potential for increased trade with the mainland.
>
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Japanese Propose Asian-African Labor Conference
Japan's largest labor federation, Sohyo, has reversed
its position and now plans to include Communist China in a
proposed Asian-African labor conference. Sohyo's general
council has decided to invite labor representatives from
India, Indonesia, Burma, Ceylon, Egypt, and Communist
China to meet in Tokyo on 15 May to form a preparatory
committee for the conference.
Peiping tried to promote interest in convening a similar
conference in 1955. Sohyo, then led by pro -Communist
Minoru Takano, agreed to attend, but the prospects for the
conference apparently ended when labor representatives
from India refused to participate.
The next year Sohyo, under more moderate leadership,
decided to exclude the Chinese Communist All-China Federa-
tion of Trade Unions from a proposed Asian-African conference,
as Sohyo's leaders then believed Chinese participation would
unduly stress political issues. Sohyo's present decision, still
tentative, may indicate that the federation's moderate leader-
ship has been weakened, probably as a result of strike failures
in 1957. Other Japanese labor groups can be expected to or-
pose Chinese Communist participation.
-e0-1VHDENTIAL
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11.-.4 'LPL N E'
Niue VW'
ILL THE WEST
French Premier Gains Respite
Premier Gaillard's 282 to 196 victory in the 18 March
confidence vote was largely a reflection of the deputies' de-
sire not to overthrow the government just before the 28 March
Easter recess and April local elections. The vote has not re-
solved the basic differences within the coalition which is in-
creasingly split over the North African situation.
The Independents reiterated their concern over North
Africa in their 15 March meeting and attacked the Socialists,
who are considering a less rigid policy toward Algeria. The
first public disagreement between Secretary General Guy
Mollet and Minister for Algeria Lacoste, who persists in a
hard-line policy, developed at the Socialists' week-end meet-
ing.
Gaillard faces further debate on his proposals for con-
stitutional reform. He has also scheduled for the end of
next week a new airing of the veterans' pensions issue,
which may result in a new attack on his government.
Continued speculation that another crisis might return
General De Gaulle to power may give pause to Gaillard's
opponents. The extraordinary security measures instituted
during the confidence vote show the seriousness the govern-
ment attaches to the threat to the parliamentary system.
The unresolved problems of Algeria and Tunisia are foster-
ing a political atmosphere conducive to a "strong-man" solu-
tion.
CONFIDENTIAL
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Adenauer May Remove Foreign Minister Brentano
There has been renewed speculation in Christian Demo-
cratic Union (CDU) circles that West German Chancellor Ade-
nauer may ask for Foreign Minister Brentano's resignation
unless Brentano makes a better showing in the 20 March
Bundestag foreign policy debate than he did in .Tanuary
Brentano's prestige has been declining as a result
of recent poor'public performances and criticism from CDU
elements dissatisfied with his "inflexibility." Minister of
Interior Gerhard Schroeder; a more forceful and articulate
public spokesman in defending Bonn policies, is mentioned
as a possible replacement.
Adenauer is reported to believe that the appointment
of Schroeder, a leading Protestant member of the pre-
dominantly Catholic CDU� would pacify critical Protestant
elements in the party and would serve as a strong check to
the ambitions of Defense Minister Strauss. Schroeder's ap-
pointment would also increase the uncertainty about Ade-
nauer's successor; a situation the chancellor is reported
to encourage.
Schroeder, a 48-year-old lawyer, has frequently been
attacked for his Nazi party membership from 1933 to 1943,
although he was later active in the anti- it e r
SECIZE-
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LATE ITEM
New Government Announced in West Pakistan
An effort by the opposition Moslem League--supported
by President Mirza--to undermine and eventually oust the
Republican party government of Pakistani Prime Minister
Noon may have been foilecLon 18 March by the appointment
of a new Republican government in West Pakistan.
The point of attack was in the West Pakistan provincial
assembly. Five or six Republican deputies defected to the
Moslem League, and Interior Minister Ralpur, a Republican
personally loyal to Mirza, supported the move on the national
level by resigning from Noon's cabinet. The opposition's in-
tent apparently was to use these defections to reduce Republi-
can ranks, to oust the party from control of the provincial
government and to replace it with a coalition headed by the
Moslem League. Once having ousted the Republicans in
West Pakistan, Mirza and the Moslem League probably hoped
to shake Noon's hold on the national government and eventual-
ly to replace his loose Republican-Awami League coalition
with a Moslem League-Republican defector coalition.
The Republican party countered quickly. Unpopular West
Pakistani Chief Minister Raschid resigned his post, and M. A.
Qizilbash, another prominent Republican, was sworn in with
a new 16-man provincial cabinet after resigning his post as
national commerce and. industri,',is mA.nister. Qizilbash, long
considered one of the most important potential Republican de-
fectors, was apparently induced to stay with the party by the
offer of the chief ministership.
Qizilbash's failure to defect may prevent the Moslem League
from winning the 30 to 40 deputies whose defections are neces-
sary to oust the Republicans from control of the provincial as-
sembly. Should the failure of the Mirza-Moslem League ma-
neuver become obvious, Mirzat prestige, which has declined
since last December, would be lowered further.
-SECRET-
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g..41L.F.i. TA' .11.1....1.494 A. A.C711ala
DISTRIBUTION
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 Mobilization
Special Assistant for Security Operations Coordination
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
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 Administration
The Deputy Under Secretary for Economic Affairs
The Counselor
Director, International Cooperation Administration
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, 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
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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bAlLY 'BRIEF
- Israel: The Egyptian commander in chief on Al
\\
7 March au orized dispatch of intelligence parties into
"
Israel to gather information on Israeli military activity. i\
�
N
, Egyptian intelligence missions into Israel were ordered
-
�\ halted in June 1957. Egypt's willingness to undertake in-
-, \ filtration of Israel appears to reflect concern over Israel's
reaction to increasing Egyptian activity in the Gaza strip \\,
and eastern Sinai. Egyptian intelligence appreciation of
,
Israeli military activity as recently as 17 March, however, �
,
\ re-Maineci calm.
IA:\ \
\
Japan: Japans largest labor federation, Sohyo, has de-
cided to invite labor representatives from Communist China
and five other countries to meet in Tokyo on 15 May as a
,
preparatory committee for an Asian-African labor confer-
ence. The American ambassador in Tokyo comments that :
N
\ 'thellial-STO5ii-OT ehineSe Communisrialives is a
v
.\, departure from Sohyo's previous attitudes and may inch-
's cate a weakening of the moderate elements in the federa-
,-..-
tion. (Page 5)
- �-
-
CENTRAL INTELLIGENCE BULLETIN
HI. THE WEST
France: Gaillard's 282-196 victory in the 18 March
confidence vote on constitutional reform has not resolved
the basic differences within his coalition, which is increas-
ingly split over the North African situation. Speculation
on the possible return of General de Gaulle to power con-
tinues. (Page 6)
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