CENTRAL INTELLIGENCE BULLETIN - 1960/08/31

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03184165
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: March 17, 2020
• Document Release Date: March 26, 2020
• Publication Date: August 31, 1960

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CENTRAL
76
INTELLIGENCE
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� 31 AUGUST 1960
I. THE COMMUNIST BLOC
Khrushchev resumes attempts to intimi-
date Shah.
Communist China and North Korea open
way for direct trade with Japan.
II. ASIA-AFRICA
Turkey may reassess legal status of for-
eign military personnel.
India accepts new Soviet credit.
The situation in the Congo.
LATE ITEMS
The situation in Laos.
Watch Committee report and USIB con-
clusions on East German assertion of
claim to restrict access to Berlin.
TtIP CFCQFT
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CENTRAL INTELLIGENCE BULLETIN
31 August 1960
DAILY BRIEF
I. THE COMMUNIST BLOC
USSR-Iran: Khrushchev, after receiving the Shah's reply
to his mid-July letter on 18 August,
Iran had failed to respond to the USSR's initiative
and warned that "time will teach its lesson?' He claimed to
have detailed knowledge of participation by American and Brit-
ish officials in preparing the Shah's response. IChrushchey's
remarks have shocked
the Shah�were intended again to impress the Shah with the
capabilities of Soviet intelligence and to aggravate his doubts
regarding the loyalty of high Iranian officials. The Soviet pre-
mier expressed the view at the Communist meetings at Bucha-
rest in June that the Iranian people would oust the Shah "at
no distant date"--an opinion that has been echoed by several
other bloc officials in recent weeks.
(Page 1)
Communist China - North Korea - Japan: Communist China
has moved to resume direct trade with Japan, which was broken
off in 1958. Chou En-lai, while Pxnreseing nreference for a gov-
ernment -level trade agreement,
even in the absence of such an agreement, traae can De
resumed under contracts between industrial interests, possibly
on a long-term basis. toincident with the Chinese offer, North
Korea has offered iron ore concentrate to Japan as a strong in- 0
ducernent to tradt, The Ikeda government, which has already
announced its intention to hold general elections around Novem-
ber, reacted promptly and favorably to Chou's approach. The
Ikeda government, like its predecessor, has been seeking a for-
mula for promoting trade with Communist China, North Korea,
and other Communist countries without granting diplomatic recog-
nition.
Ii
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VIA
IL ASIA-AFRICA
5
� Turkey: The military regime in Turkey may be in the
process of reassessing the question of the jurisdiction of Turk-
ish courts over foreign military personnel in Turkey under the
NATO status-of-forces agreement.
the Turkish Foreign Ministry requested
detailed information as to how these matters are dealt with in
other NATO member countries. The Menderes regime inter-
preted the status-of-forces agreement very liberally, although
cases arising under it were often subjects of popular tension.
Historically, the Turks have been particularly sensitive on the
question of extraterritorial rights, and the present regime may
take a somewhat stricter Tw esneciallv on the question of de-
termination of duty status.
India-USSR: India's acceptance of a new Soviet credit of
about $125,000,000 brings to about $500,000,000 the total Soviet
commitment to India's Third Five-Year Plan, scheduled to be-
gin in April 1961. The Soviet offer was in response to an Indian
request by Finance Minister Desai during his June visit to the
USSR, and was apparently granted following an exchange of cor-
respondence between Nehru and Khrushchev in August. Khru-
shchev also indicated that further aid would be considered later.
In making its announcement at this time, New Delhi may have
taken into account the meeting of the consortium of Western na-
tions which will be held under World Bank auspices on 12 Septem-
ber to consider aid for India's Third Plan.
(Page 2)
Congo: The Belgian Army on 30 August completed evacua- j
tion from its bases in the Congo--except for 1,000 to 1,500 tech- 6 47-
nicians who will maintain the bases at Kamina and Katona--and
yielded them to UN control. About 100 Belgians will continue to.
serve with the Katanga troops and police. Meanwhile, in neigh--; 1
boring Kasai Province, Lumumba's small expeditionary force has -
clashed with Baluba tribal supporters of Kalonji who rallied after c--A."--4
Lumumba's force seized the capital of the secessionist "Mining
-^
31 Aug 60
DAILY BRIEF
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