CENTRAL INTELLIGENCE BULLETIN - 1958/05/12

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03179867
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: May 12, 1958

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12 May 1958
Copy No. 140
CENTRAL
INTELLIGENCE
BULLETIN
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12 MAY 1958
L THE COMMUNIST BLOC
USSR accepts proposal that experts
begin discussions on preliminary as-
pect of an agreement to end nuclear
tests.
Cancellation of Voroshilov visit to
Belgrade moves bloc-Yugoslav dis-
pute into sphere of state relations. V.)
II. ASIA-AFRICA
Indonesia. - Premier Djuanda states
central government under strong
local Communist pressure to ac-
cept bloc volunteers. Arrriy spokes-
man says negotiations at this time
with North Celebes dissidents out of
the question.
Lebanon - Chamoun has decided to
run for second term and plans first
open steps about 14 May. More dis-
orders by UAR-supported opposition
likely.
5
Cyprus - Tension between Greek and
Turkish communities at point where
clashes may be imminent.
Iapanese ambassador in Cairo recom
' mends granting credits to UAR.
III. THE WEST
0 Public attacks by top air force of-
ficials on British defense policy may
hamper defense reorganization plan.
Haiti - Marked deterioration in public
order raises possibility of general
uprising against Duvalier, who re-
tains army support for the present.
LATE ITEM
0 Chinese Communist foreign minister
hints that USSR may have agreed con
ditionally to furnish nuclear weapons
to Peiping,
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11 CENTRAL INTELLIGENCE BULLETIN
12 May 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Soviet tactics on nuclear testing: In his letter of 9 May
to President Eisenhower, Premier Khrushchev accepted the
American proposal to have experts begin discussions about
detection of violations as the first step toward an agreement
on ending nuclear weapons tests. This concession indicates
the USSR's determination to emphasize test suspension as a
major issue for settlement at a summit meeting and Mos-
cow's judgment that negotiation on the test suspension issue
will increase public pressure on London and Washington to
stop tests. The USSR will probably not resume testing at
least until after there is some resolution of the issue of a
summit meeting. Khrushchev's letter contains no specific
threat of resumption, and First Deputy Foreign Minister
Kuznetsov recently said that even if
Britain and the United States continue tests, the USSR will
not resume tests "unless something really very important
happens."
Bloc-Yugoslav dispute: With the calling off of Voroshi-
lov's visit to Belgrade, the rift between Belgrade and the bloc
has, as anticipated by both sides, definitely entered the sphere
of state relations. Yugoslav Foreign Secretary Popovic as-
serts that the situation is "much worse" than the public realizes.
Moscow may now follow through with its threat to curtail eco-
nomic relations with Yugoslavia, a step which will bely Soviet
propaganda that bloc aid is free from political considerations.
Meanwhile in Budapest, Gomulka continues in general to sup-
port bloc foreign policy positions without taking a stand on the
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dispute with Belgrade. The "postponement" of the Soviet state
visit will doubtless result in more pressure on Gomulka to
cancel Tito's scheduled visit to Warsaw later this month.
(Page 1)
II. ASIA-AFRICA
Indonesia: Foreign Minister Subandrio claims Indo-
nesian Communists are exerting considerable pressure on
the government to request "volunteers" from the Sino-Soviet
bloc, but that he and Prime Minister Djuanda are strongly
opposed to such a course of action. Subandrio renewed his
government's urgent reauests for American aid
the possibility of negotiations with North Celebes dissident
rs is out of the question at this time.
Dissident troops in North Celebes have apparently oc-
cupied Parigi, about 30 miles east of Palu, after having
made a new amphibious landing on 8 May. Prio
rth_r_P-7rigi was bombed by dissident aircraft.
(Page 2) (Map)
Lebanon: President Chamoun has definitely decided to
seek a second term and has tentatively scheduled his first
open step in that direction for about 14 May. The constitution
must be amended first. The rioting set off by pro-Nasir ele-
ments in Tripoli on 8 May has subsided, although the Cairo
and Damascus radios are calling for a continuation of the
"revolution." The disorders may influence Chamoun to
delay his intended move. More trouble is probable when he
does make his intentions known. (Page 4)
Cyprus: Tension between Greek and Turkish Cypriots
is such that an open clash between them may be imminent.
Both the Greek and the Turkish underground organizations
have also warned London that unless their mutually exclusive
12 May 58
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demands for a Cyprus settlement are met, new attacks will
be launched on British personnel. (Page 5)
Japan-UAR: The Japanese ambassador in Cairo has
made a strong recommendation to Tokyo that long-term
credits be granted to the UAR. Such a move by japan, fol-
lowing a West German credit, would be used by Nasir to
claim that his policy of neutrality is paying off materially.
However, the Japanese Government, which has only limited
assets for economic assistance, may prefer to concentrate
on exploiting the recently won offshore oil concession in he
neutral zone of the Persian Gulf. (Page 6)
III. THE WEST
Britain--defense policy: Public criticism by top British
air officials of the government's reliance on missiles at the
expense of manned aircraft may bring out latent dissension
in Conservative ranks over Britain's radically changed de-
fense program as outlined in the 1957 white paper. These
criticisms could lead to a test of Defense Minister Sandys'
position at a time when consideration is being given to in-
creasing the power of the Defense Ministry at thp P3MP se
of the individual services. (Page 7)
Haiti: A marked deterioration in public order, includ-
ing rifle fire in the vicinity of the American ambassador's
residence, has followed the government's imposition of a
state of siege on 2 May and its increasingly arbitrary meas-
ures against political opponents. This trend, unless checked,
could provoke a general uprising against the Duvalier regime.
For the present, however, Duvalier's continuing army back-
ing seems sufficient to keep him in power. (Page 8)
12 May 58
DAILY BRIEF iii
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LATE ITEM
*Communist China: Foreign Minister Chen Yi has
made the first public intimation that an understanding
with the Soviet Union has been reached on the subject of
nuclear weapon deliveries to Communist China. In inter-
views published in West Germany, the foreign minister
states that his country may obtain nuclear weapons if no
agreement can be reached with the West on a nuclear-free
zone in Asia and if the United States places nuclear weap-
ons in the Far East. This statement is probably intended
primarily to serve Peiping's propaganda ends. There
were unconfirmed reports that the Soviet Union had agreed
to supply Communist China with "super-weapons" when
Mao Tse-tung and a military mission visited Moscow last
November. At the conclusion of the visit, the Soviet de-
fense minister spoke of "our armies armed with modern
first-class weapons." He did not commit himself more
as to the type of weapons he had in mind.
DAILY BRIEF iv
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'11". THE COMMUNIST BLOC
Worsening in Bloc-Belgrade State Relations May Presage
Cut in Soviet Economic Aid
The Yugoslav - Sino-Soviet bloc dispute has finally en-
tered the sphere of state relations, signified by the last-
minute postponement of Voroshilov's visit to Belgrade. This
more serious turn was foreseen in the Chinese and Soviet
attacks of 5 and 8 May and in the forthright Yugoslav reply
to the bloc, published on 9 May, which said that a return to
the methods of the Cominform would not only damage rela-
tions between Yugoslavia and other socialist countries, "but
international socialism generally as well." Moscow now may
follow through with its threat, contained in the 8 May Pravda
editorial, to curtail economic assistance to Yugoslavia.
Thus far, Yugoslavia has used only $52,000,000--pri-
marily in the form of foreign exchange loans--of a total of
$370,000,000 in credits extended by the USSR since 1956.
This total includes a $175,000,000 joint USSR - East German
credit for an aluminum mill which Moscow suspended early
last year because of Yugoslavia's continued expressions of
ideological independence. Although reinstated several months
later, the project remains in the planning stage.
The $318,000,000 remaining under the Soviet credit and
about $90,000,000 in credits from Czechoslovakia and Poland
not yet expended could be canceled should the USSR follow
through on its threat to suspend aid. Since the loans are
chiefly to provide equipment for industrial construction now in the
planning stage, their cancellation would not cause an economic
crisis in Yugoslavia.
Yugoslavia's trade with the bloc currently amounts to ap-
proximately $200,000,000 a year, less than 25 percent of total
Yugoslav foreign trade, whereas in 1948 the bloc accounted
for more than 50 percent of Yugoslav foreign trade. While
trade with the USSR has increased substantially- since 1953, it
has never accounted for more than 15 percent of Yugoslavia's
total trade.
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IL. ASIA-AFRICA
Situation in Indonesia
Foreign Minister Subandrio told Ambassador Jones in
Djakarta on 10 May that the Indonesian Communist party (PKI)
has stepped up its activities. He attributed the recent army
detention of New York Times correspondent Bernard Kalb
to Major Marsudi, the pro-Communist Djakarta town com-
mander. Subandrio also claimed PKI pressure for a re-
quest for volunteers from the Sino-Soviet bloc was having
its effect on certain elements in the cabinet and the armed
forces, although he and Prime Minister Djuanda were strong-
ly opposed to such a course. The foreign minister reaffirmed
his government's requests for American aid, citing specifical-
ly spare parts for F-51's and C-47's.
A recent attempt at a negotiated settlement between
North Celebes dissident leaders and the central government
was unsuccessful, according to Lt. Col. Pirngadie, the Dja-
karta army headquarters information officer.
the central
government had been encouraged to send a mission composed
of officers from South Celebes when it received word from
Col. Warouw, now acting head of the revolutionary govern-
ment, that he would be willing to negotiate a settlement. In-
stead, he tried to persuade the South Celebes officers to join
the dissident cause. Pirngadie stated that chances of new
negotiations at this time are nil.
� A party composed of the North Sumatra military command-
er and high-ranking civil officials was ambushed in Tapanuli,
While apparently
no casualties were sustained, the incident points up the continu-
ing capability of dissident troops by-passed in the central gov-
ernment invasion of Tapanuli to mount guerrilla warfare.
Col. Sukendro the Djakarta army headquarters G-2,
dissiden
troops the day before had occupied Parigi, about 30 miles
east of Palu in North Celebes.
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three ships had landed between 500 and 600 dissident troops
a few miles from Parigi. One or more dissident aircraft
supporting the operation bombed and strafed the town.
Parigi had only recently been occupied by central govern-
ment troops moving eastward from the Donggala-Palu
bridzhead.
12 May 58
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141101,
Lebanese Internal Situation
Lebanese President Chamoun has definitely decided to
seek a second term and is planning to make a conclusive
move in that direction by 14 May, according to Foreign
Minister Malik. Since the constitution must be amended
by Parliament to allow a second term, Chamoun's sup-
porters may present an amendment this week signed by
the required two-thirds majority for its passage. Parlia-
ment then could re-elect the President in the same meet-
ing. Chamoun's tactics may be altered, however, as a
result of the serious rioting in Moslem Tripoli.
The rioting, during which the USIS library was burned,
was instigated by pro-Nasir elements and may have been
guided by Syrian intelligence agents. Two Lebanese army
battalions have been moved into the city.
Losing momentum and lacking a real issue so long as
Chamoun made no move to declare his intentions, Chamoun's
opponents seized upon the assassination of a pro-Soviet
journalist as justification for a general strike. They have
hoped to lay at the government's door blame for a deteriora-
tion of law and order, but were reported to be quarreling
among themselves prior to the riots in Tripoli. The pos-
sibility that disorders may turn from anti-Chamoun demon-
strations to Moslem-Christian communal strife could widen
the rifts which have been appearing within the opposition
group, _which includes a significant Christian element.
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Tension on Cyprus Mounts
Bitterness between the Greek and Turkish Cypriot com-
munities recently increased to a point where open clashes
may occur at any time. Intercommunal rioting on Cyprus
would probably have an immediate effect on the minorities
in Turkey and Greece and could lead to a further drastic
deterioration in relations between the two nations.
Members of both communities on the island are being
asked to express their nationalism through new and some-
times dramatic means. EOKA, the Greek Cypriot under-
ground organization, has demanded that the population elimi-
nate all signs in English and cease using the Latin alphabet.
Even American firms on Cyprus have been told to revise
their signs and trade marks by 15 May or "suffer the conse-
quences." In addition, there is evidence that EOKA is now
engaged in a form of economic warfare by attempting to
force Greek employers to discharge their Turkish employees.
Meanwhile, the Turks on Cyprus have indicated their inten-
tion to push toward a de facto form of partition by refusing
to pay taxes to Greek Cypriot officials.
In London, Governor Foot is conferring with British
leaders. Recent statements by the colonial secretary
indicate that new British proposals for Cyprus will be pre-
sented in Athens and Ankara shortly after the 11 May Greek
national elections.
EOKA has warned that unless Foot's mission results in
progress toward self-determination for Cyprus, the long-
threatened "all-out offensive" will be launched. Meanwhile,
the underground Turkish resistance movement has issued
instructions to Turkish Cypriots to inflict "every kind of
damage and injury" to Britons if there is any move toward
a s91ut1on other than partition.
�SEC�RE-r-
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Japanese Ambassador Recommends Economic
Support for UAR
The Japanese ambassador in Cairo has made an un-
usually strong recommendation that his government grant
long-term credits to the United Arab Republic (UAR) for
assistance in the establishment of industrial plants.
Ambassador Tsuchida
stated his conviction that Japan could achieve "good re-
sults" in the UAR and an economic bridgehead in the area
by providing a "comparatively small amount of coopera-
tive assistance."
Tsuchida asserted to Tokyo that the United States
would welcome Japanese as well as other free world as-
sistance to the UAR as a counter to Communist influence.
He said that economically, too, there is a good prospect
for retiring credits by increasing future production of
sugar, soda, oil, and other products in the UAR, and urged
that recommendations of the recent Japanese investigation
mission to Egypt be given serious consideration.
The Japanese Government may be willing to extend
limited credits and technical assistance, but has indicated
in the past that it cannot grant financial assistance nor does
it expect much increase in Egyptian exports. Tokyo also
may, pre greater attention to assisting. Japanese , in:
',
terests in their attempts to exploit the offshore oil con-
cession granted by Saudi Arabia and Kuwait in the neutral
zone of the Persian Gulf.
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III. THE WEST
Top British Air Officials Challenge Defense Policy
Statements by the two top air staff officials, in effect
criticizing British defense policy for reliance on missiles,
have brought into public view increasing service department
opposition to some elements of the radical defense policy
outlined in the 1957 white paper and generally reaffirmed
in the 1958 paper issued in February.
The chief and the assistant' chief of the air staff recently
told a group of British service and civilian leaders, including
Prince Phillip, that the Air Ministry is convinced of a continu-
ing need for manned aircraft to supplement missiles. The
press is highlighting this unusual "public revolt" against the
defense minister's policy which calls for the gradual abandon-
ment of manned fighters and bombers. The remarks aroused
Defense Minister Sandys' resentment, according to the Ameri-
can Embassy, and inspired parliamentary questions and criti-
cism on 7 May regarding military "meddling" in policy mat-
ters which should be reserved for the cabinet.
Public airing of the controversy, however, may bring out
some hitherto latent dissension in Tory ranks over various
aspects of defense policy. Former Defense Minister Head and
former Chancellor of the Exchequer Thorneycroft are known to
be disturbed by Sandys' growing reliance on missiles.
The statement by the air force chiefs may also generate
resistance to expected changes in the defense establishment
which would give increased powers to the Defense Ministry
at the expense of service ministers and military chiefs. There
is speculation that additional duties for the chiefs of staff
chairman, who is also chief of staff to Sandys, will give him
a "czar" role over the services. The air force may be par-
ticularly concerned because of reports that Admiral Lord
Mountbatten will succeed Marshal of the RAF Sir William
Dickson in this post, thus depriving the air staff at a critical
time of its direct line to the top policy level.
CONFIDENTIAL
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New Repressive Actions by the Haitian Government
A virtual reign of terror, which has been developing
since the government suspended constitutional rights on
2 May and intensified its repressive measures against
political opponents, has produced a serious deterioration
in public law and order in Haiti. Among other incidents,
a number of rifle shots were fired on 7 May in the vicin-
ity of the American ambassador's residence, although Am-
bassador Drew believes no attempt on his life was in-
tended and the government has since expressed regrets.
Although President Duvalier has categorically denied
the government's complicity in acts of terrorism, it ap-
pears certain that his secret police, with at least the pas-
sive acquiescence of the army, has carried out some acts
of violence, including the total destruction of two opposi-
tion newspapers on 4 May.
Duvalier seems to retain for the present the support of
the army which is essential to his continued control. The
government's repressive actions against both opposition
elements and the mulatto class, might, however, go so far
as to provoke a general uprising. Ambassador Drew re-
ported on 7 May that many people were likening the present
situation to that of July 1915, when President Vilbrun Guil-
laume Sam, climaxing a campaign of political persecution
with a brutal massacre of political prisoners, was seized
by his enemies and thrown to the mob, which hacked him
to pieces and paraded through the streets with fragments
of his body.
Ambassador Drew saw one hopeful aspect to the situa-
tion on 9 May when he reported that some cabinet ministers
realize jjie adverse effects the campaign of terror is having
on t government's position at home and abroad.
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