CENTRAL INTELLIGENCE BULLETIN - 1958/01/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03182294
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: January 16, 1958

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I WI� 4015---1R-1-
4-49 3.3(h)(2)
3.5(c)
NOT RELEASABLE TO
FOREIGN NATIONALS
CONTINUED CONTROL
16 January 1958
SC No. 00038/58
Copy No. 137
CEN TRAL
DOCUMENT NO.
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CENTRAL INTELLIGENCE BULLETIN
16 January 1958
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DAILY BRIEF
I. THE COMMUNIST BLOC
In a new test of American determination to maintain
free access to Berlin, the Russians delayed four US Army
trains at the East German checkpoint of Marienborn up to
ten hours on 14 and 15 January. This is the first interfer-
ence with military trains since the new travel documenta-
tion system, which was worked out with Soviet officials, was
Introduced on 2 December 1957. Before then, similar harass-
ment was fairly common. (CONFIDENTIAL) (See MAP on
reverse page.)
II. ASIA-AFRICA
*The Indonesian central government is increasingly con-
cerned over plans of the dissident leaders to establish a
rival government in the near future. Apparently they are
having difficulty in deciding when to act, but the latest re-
port states that the break will come on approximately 16
January. The cabinet is threatening political and economic
sanctions, including the cessation of financial support from
Djakarta. The dissidents have been warned that force may
be used against them, but such action cannot be taken until
the arrival of military aid now being sought from both Com-
munist and non-Communist European countries.
(Page 1)
The Iraqi cabinet will probably remain in office at least
until after the Baghdad Pact meetings in Ankara at the end of
January. Former Prime Minister Nun i Said will lead the
Iraqi delegation to the meetings, and Prime Minister Mirjan
apparently will not participate. These are additional signs
that Mirjan does not fully control his cabinet. (SECRET
NOFORN)
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The unstable situation in the Syrian Army is ex-
acerbated by the return from training in Cairo and Mos-
cow of influential officers who have not found promised
assignments. The struggle between the Communists and
the socialist-nationalists air predominance is reflected
in the increasing controversy over the popular issue of
Syrian-Egyptian union. The socialist-nationalist press
is attacking the Communist position, charging that the
Communists are not giving the union proposals unqual-
ified support. (SECRET NOFORN)
Ceylon's estimated flood rehabilitation costs of
$44,000,000 to $55,000,000 are over half of the 1958 budg-
et funds allotted for economic development projects. Thus,
development plans will probably be delayed, causing further
economic stagnation. (CONFIDENTIAL) (Page 2)
New Delhi apparently has requested an additional So-
viet credit of $25,004 000 to $31,000,000 for the Bhilai
steel plant to cover general price rises in India and else-
where. This would augment a total of $283,000,000 in
Soviet bloc industrial construction loans to India, includ-
ing the previous loan of $132,000,000 for the Bhilai plant.
(CONFIDENTIAL) (Page 3)
The South Korean National Police have announced that
arrested leftist leader Cho Pong-am has admitted "con-
tact and connivance" with North Korean agents and that
"important subversive documents" hidden at his home have
been uncovered. While such announcements are suspect,
and "subversive" documents could be almost anything the
security agencies label as such, officials concerned with
the investigation indicated before Cho's arrest that they
had enough "evidence" to convict him. (CONFIDENTIAL)
16 San 58
DAILY BRIEF ii
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The latest shake-up in the Venezuelan cabinet
mdi-
cates that President Perez has at least temporarily re-
built his position among the controlling elements of the
divided military. The change in the Interior Ministry,
which controls the police' appears to make Perez him-
self the de facto chief of this important ministry. The
strength and duration of his military support, however,
are still uncertain. (SECRET) (Page. '4)'.
4.1
1
III. THE WEST
The French Government's decision to interrupt
defense negotiations with Tunisia is probably a bid by
Premier Gaillard for rightist support in _thp_ coaticknce
vote scheduled for 16 January in the National Assembly
which was precipitated by the veterans' aid issue. His
position has been made increasingly precarious by op-
position to his constitutional reform proposals and to
the basic statute for Algeria which the Council of the
Republic may return to the assembly with crippling
amendments. (CONFIDENTIAL)
16 Jan 58
DAILY BRIEF iii
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IL ASIA-AFRICA
Situation in Indonesia
Indonesia's dissident leaders are proceeding with
plans for the early establishment of a rival Indonesian
government. The chief Sumatran leader, Col. Simbolon,
believes that action will be taken in the first week of Feb-
ruary, but there appears to be some reluctance to make
a final break with Djakarta,
Central and
South Sumatra will break with the central government on
approximately 16 January and that Atjeh Province will
follow suit, the dissidents have
not yet decided when to act but are considering a move be-
fore President Sukarno's return, expected in late February
or early March.
The central government is aware of these activities
and has threatened economic, political, and military re-
prisals. It has already ordered the outer regions to stop
barter trade with neighboring areas or face the loss of
government financial support. Premier Djuanda has since
announced that orders are being prepared to discharge sev-
eral dissident leaders from the army. The finance min-
ister has threatened the use of force, presumably when the
government receives the ships and arms it is seeking from
both Communist and non-Communist European countries.
The Indonesian arms purchasing mission has left Yugo-
slavia without signing an agreement, is now in Czechoslo-
vakia, and will proceed to Poland before returning to
Belgrade.
In Djakarta, the second phase of military exercises
ordered by the local town command is scheduled for 17
January. The first phase provided cover for mass arrests,
probably aimed primarily at non-Communist elements sus-
pected of being oppose
16 Jan 58
SECRET
CENTRAL INTELLIGENCE BULLETIN Page 1
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d. �a. Jo.
Ceylon's Financial Requirements for Flood Rehabilitation
According to a preliminary, estimate by the Ceylonese
Government, flood rehabilitation, will cost $44,000,000 to
$55,000,000� This is over half the total budget funds al-
lotted for economic projects in 1958. The projects pre-
sumably will have to be delayed.
Ceylon will need about 120,000 tons of rice and 20,000
tons of flour in addition to its normal imports of 400,000
and 200,000 tons of rice and flour respectively. Food stocks
are abnormally low, and as of 8 January large amounts of
rice and flour on order had not yet been shipped.
The government spent approximately $315,000 on direct
relief immediately after the floods. Emergency aid from
foreign governments and private sources thus far totals ap-
proximately $500,000. The need for relief measures is ex-
pected to continue in some areas for as long as 14 months,
until restored rice fields can be harvested. (CONFIDENTIAL)
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Indian Request for Additional Soviet Credit
India may receive a credit of $25,000,000 to $31,000,000
for the Bhilai steel plant, now under construction with assist-
ance from Moscow, in addition to the $132,000,000 in equip-
ment already promised by the USSR. The additional credit
would cover general price rises and the cost of equipment
which cannot be procured locally as originally planned, Press
reports state that Moscow's initial reaction to India's request
has been "quite favorable,"
A separate Soviet loan of $126,000,000 in 1957 for various
industrial projects, was augmented on 4 January by a sub-
stantial Czech credit accepted by Prime Minister Nehru dur-
ing Premier Siroky's current visit. The Czechoslovak loan
Is believed to amount to at least $25,000,000, which will be
applied to the construction of a foundry in Bihar State as part
of India,'s program for production of industrial machinery.
The bulk of the Soviet industrial loan has also been allocated
to this program. (CONFIDENTIAL)
-CONFIDENTIAL
16 Jan 58
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III. THE WEST
Venezuelan President Now Reasserting
His Authority
The new shake-up in the Venezuelan cabinet on
13 January indicates that President Perez has at least
temporarily reasserted his authority over key elements
of the divided military. Perez has become defense min-
ister himself and has in effect taken over the Ministry of
Interior�which controls the National Security Police--
by apppinting one of his relatives as minister. General
Llovera, who was minister of interior for three days,
has resumed his former minor post in the cabinet.
In addition to the ouster of General Fernandez from
the Defense Ministry, the former air force and navy com-
manders were also removed from the important political
costs to which they had been appointed on 10 January.
several high-ranking
officers have been arrested.
Increasing civilian unrest has accompanied the military
disunity. Public demonstrations, in which students played
a prominent role, were held on 10, 13, and 14 January, and
there are rumors of plans for continuing civilian efforts
aaainst the dictatorship.
SECRET
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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
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 Counselor
The Deputy Under-Secretary for Political Affairs
The Deputy Under-Secretary for Economic Affairs
The Deputy Under-Secretary for 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
inrIVATZTIrThICIXTRIT AT
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