CENTRAL INTELLIGENCE BULLETIN - 1959/06/06
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03191542
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Publication Date:
June 6, 1959
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Noe
3.5(c)
3.3(h)(2)
6 June 1959
Copy No. C
CENTRAL
62
INTELLIGENCE
BULLETIN
DOCUMENT NO.
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ADtAjTIY: INVOREVIEWER:
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6 JUNE 1959
I. THE COMMUNIST BLOC
East German delegation to visit Mos-
cow on 8 June.
IL ASIA-AFRICA
Chiang Kai-shek seeks understand-
ing with Dalai Lama concerning
Tibetan independence.
New political party formed in
India to oppose Nehru's policies.
0
0
0
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IIL THE WEST
Greece rejects Klumshchev's
threats.
West Germany-- CDu confirms
Adenauer's decision to remain as
chancellor; new presidential can-
didate to be named on 11 June.
� Cuba�Opposition to Fidel Castro
growing.
� Argentina-- Frondizi planning strong-
er police measures against Commu-
nist-Peronista agitation.
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CENTRAL INTELLIGENCE BULLETIN
6 June 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
East Germany - USSR: The East German state-party del-
egation including Premier Grotewohl and party leader Ulbricht
will visit Moscow beginning 8 June to return Khrushchev's
4 through 12 March visit to East Germany. It is likely that
plans for Soviet economic assistance to raise East Germany's
standard of living will be discussed. The USSR's attitude in
the Geneva Conference does not suggest that the Soviet leaders
contemplate signing a separate peace treaty with East Germany
during this visit, although this subject will certainly be raised
in discussion and in public pronouncements.
(Page 1)
II. ASIA-AFRICA
Nationalist China - Tibet: Chiang Kai-shek has proposed,
through a personal representative, to the Dalai Lama's brother
and chief adviser., Gyalo Thondup� that a Tibetan representa-
tive come to Taiwan to sign an agreement which might be the
basis for eventual Nationalist recognition of Tibetan "independ-
ence" and a free Tibet government. The Dalai Lama, who has,
been under pressure from Nehru to postpone his declaration of
a "free Tibet," probably will maintain a cautious attitude toward
overtures from Taiwan.) (Page 2)
India: Efforts to organize a new conservative party to op-
pose Nehru% "totalitarian" and "socialist" policies culminated
on 4 June with the formation in Madras of the Swatantra party.
Led by elder statesman C. Ftajagopalachari, the group repre-
sents conservative political and business interests in several
dian states. The new party will gather some support in its op-
osition to the Congress party's cooperative farming and language
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policies and nay obstruct the implementation of Nehru's pro-
gram. A group of this type is likely to have only limited
popular appeal, however, and probably will not seriously
threaten the ruling party's, position. (Page 3)
III. THE WEST
Greece-USSR: Athens, in a strongly worded reply to the
Soviet aideo-memoire of 14 May, has charged the USSR with at-
tempted intervention in Greek affairs and criticized Moscow for
increasing international tensions and insecurity by its atomic -
rocket threats. (Page 4)
West Germany: In his letter to the Christian Democratic
Union parliamentary faction explaining his reasons for retain-
ing the chancellorship, Adenauer proposed that Finance Min-
ister Franz Etzel replace him as the party's nominee for the
presidency. The party unanimously confirmed Adenauer's deci
sion to continue as chancellor. Adenauer's tactics have led to
considerable irritation which may be directed against Etzers
presidential candidacy. The new presidential candidate is to be
named on 11 June.)
Cuba: Counterrevolutionary plotting against Fidel Castro's
regiffiFfi apparently increasing among numerous independent
groups in Cuba and in exile. While it is unlikely that any attempt
to overthrow Castro would be successful at this time, outbreaks
of violence may occur soon. The Agrarian Reform Law, which
was officially published on 5 June, is arousing increasingly bitter
opposition, especially among large landowners.
(Page 5)
Argentina: President FrOndizi is planning drastic police
measures in an attempt to end the almost daily labor demonstra-
tions carried out in defiance of state-of-siege regulations. He
/0 .1)elieves June will be an especially critical month in the violence-
marked struggle between his government and Communist-Peron-
4, ista agitators. (Page 6)
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I. THE COMMUNIST BLOC
Impending Visit of East German Leaders to USSR
A large East German state and party delegation headed
by party First Secretary Ulbricht and Premier Grotewohl
will pay a "friendship visit" to the USSR from 8 to about 20 June.
During the course of the visit, the Soviet leaders will probably
take up East t Germany's role during the remainder of the talks
at Geneva and map out future strategy relative to a summit meet-
ing.
The general Soviet line at Geneva suggests that the USSR
probably will not jeopardize the possiblity of a summit confer-
ence by signing a separate peace treaty with East Germany at
this time, although there may be renewed threats to do so un-
less the West demonstrates a willingness to make concessions
on the status of West Berlin.
The delegation to Moscow includes leaders of the puppet
East German parties, apparently to demonstrate the united sup-
port of the East German people for the Communist proposals on
Berlin and Germany. Since the delegation also includes State
Planning Commission Chairman Bruno Leuse:ner and representa-
tives of industry and agriculture, there probably will be Gilberts-
sions of ways and means of implementing existing plans for So-
viet economic assistance aimed at raising East Germany's standard
of living to a level approaching that of West Germany,
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6 June 59
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IL ASIA-AFRICA
Cliinese Nationalist Offer to Dalai Lama
Chiang Kai-shek has requested the Dalai Lama to send
his pe sonal representative to Taiwan to sign an agreement
on the basis of which the Nationalists then would recognize
Tibetan "independence" and a "free Tibet" government. The
message was transmitted on 27 May through Gyalo Thondup,
a brother of the Dalai Lama,
Thondup agreed to see to it that the
Nationalists get an answer in the near futures)
Chinese Nationalists regard Tibet as an integral part
of the China mainland, and it seems unlikely that Chiang would
be willing to court the disfavor of his followers by offering an
outright grant of independence. It is possible, however, that
he is prepared to elaborate on his public pledge of last March
to permit self-determination for Tibet. The formula might be
worded to imply independence without stating it directly)
The Dalai Lama shares a general Tibetan antipathy toward
Chinese and has shown a reluctance to associate himself with
the Chinese Nationalists. While he has recently appeared de-
termined to lead a struggle for a "free Tibet," the Dalai Lama
probably will continue to maintain a polite but cautibus attitude
toward overtures from Taiwan for joint action
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WINI" ILIGIN I
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New Opposition Party Formed by Conservative Leaders in India
The formation of a new organization--to be known as the
Swatantra party--to oppose Prime Minister Nehru's policies on
a national scale was announced in Madras on 4 June. The group,
representing conservative political and business interests in sev-
eral sections of India, is led by elder statesman C. Rajagopalachari,
a former governor general and Congress party leader.
Rajagopalachari stated that the sponsors are some 50 prominent
persons from various Indian states. Its first objective is to re-
move "the pervading totalitarian atmosphere." It will stand for
"freedom of the farm and family" in opposition to Nehru's "so-
cialist slogans."
Efforts to organize a new grouping of conservatives have been
under way since the convention of the Congress party in January,
when the controversial program for agrarian reorganization was
announced. This scheme, which calls for ceilings on land holdings
and preparing the rural society for eventual cooperative farming
on a broad scale, has met strong opposition from elements in-
side and outside the Congress party. Conservative leaders view
the proposals as a threat to property rights and as a first step
toward collectivization of farming, a charge firmly denied by
the Congress high command.
There have been several unsuccessful attempts in recent
years to organize a broad-based conservative party in India.
Such groups, generally representing the interests of certain upper-
and middle-class elements only, have limited appeal to the mass of
the Indian electorate. The Swatantra party will receive substantial
support in its stand against the Congress party's program and na-
tional language policy, and can also exploit growing dissatisfac-
tion with the Congress party. It is likely to run into stiff competi-
tion, however, from other opposition groups appealing to the peo-
ple on either a communal or radically socialist platform. I
CONFIDENTIAL
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III. THE WEST
Greece Rejects Soviet Warning as Intervention
Greece has firmly rejected Moscow's warning, contained in
a 14 May aide-memoire, against accepting missile, and nuclear
bases on Greek soil. In a formal reply passed to Soviet Ambas-
sador Sergeyev on 4 June and broadcast to the Greek people,
Athens stressed that the question of such bases in Greece is
within the "sole jurisdiction of the Greek Government" and that
any foreign intervention to exert pressure is "unacceptable."
Specifically cited as interference was the Soviet criticism of the
Greek-American military agreement signed on 12 October 1953.
The suggestion made by Khrushchev in his 28 May speech at
Korce that Greece abandon the North Atlantic Treaty Organiza-
tion was also rejected as contrary to the vital interests of the
Greek nation.
Athens also included several "constructive observations"
concerning the Soviet memorandum. It noted that Greece is al-
ready within the range of Soviet atomic and rocket bases, as
repeatedly proclaimed in Soviet assertions that the USSR possess-
es rtickets whose range covers the entire globe. Athens also
rejected the Soviet-sponsored idea of a Balkan rocket-free zone
as a "political trick aimed at limiting the defensive strength" of
Greece and the West.
The Greek Government's firmness in the face of Soviet pres-
sure is widely supported in Greece where, according to the non-
Communist press, the people are unimpressed by Khrushchev's
warnings. @reek Government officials, however, have
voiced concern over what they regard as increasing Soviet pres-
sure)
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Opposition to Castro Growing
Increasingly frequent reports of plans for counterrevolu-
tionary action against the Castro government in Cuba indicate
that there may be some outbreak before the end of June. Groups
within Cuba--allegedly including military personnel and dis-
gruntled revolutionaries--are plotting, as are exiles in Mexico,
the United States, and the Dominican Reputiic who may have ac-
cess to substantial arms supplies.
There is no evidence of unity or of the emergence of an ef-
fective leader among the numerous opposition forces, none of
whom admits to any ties with ousted President Batista. The
most active and frequently mentioned plotter is General Jose
Pedraza, a ruthless and energetic army and police officer under
Batista.
An attempt to oust Castro at this time would have little chance
of success. However, the economic paralysis affecting Cuba
and the bitter disillusionment and increasing ciDubts over the
competence and political orientation of the government may help
to crystallize the opposition, increasing chances of violence.
Small incidents have already been reported in outlying areas.
the rising tide of
outspoken opposition to his controversial Agrarian Reform Law
caused Castro to promulgate the law on 4 June, realizing that
further delay in deference to the moderates would make promulga-
tion impossible. Because of opposition by moderate ministers,
Castro reportedly never put the law to a cabinet vote.
The American Embassy in Havana doubts that the leftist
director of the powerful Agrarian Institute will show any modera-
tion in implementing the law. The associations of growers of
tobacco, rice, sugar, and cattle--whose strong demands for
modification of the law were ignored�may be attracted to active
opposition forces in efforts to avoid expropriation of their in-
terests.
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Argentine President Expects Crisis This Month
President Frondizi, whose year-old government has been
plagued by increasingly serious Communist and Peronista-
inspired strikes and riots, has said he expects this month to
be an especially critical one. He has decided to order more
drastic police measures, particularly against Communists, if
strikes and demonstrations continue in defiance of last Novem-
ber's state-of-siege regulations.
In an apparent build-up for stronger repressive measures,
Frondizi's'interior minister on 2 June released two letters show-
ing that a Peronista liaison agent has been negotiating with the
Argentine Communist party for joint action to bring about the fall
of the government, it
is hoped that the release of the letters will also cause some of
the less extreme Peronistas to adopt a more cooperative attitude.
The major target of Communist and Peronista labor agitation
is the government's US-backed stabilization program which went
into effect on 1 January. The pr gram has righted Argentina's
trade b lance, but has not yet stabilized the cost of living, which
has jumped nearly 50 percent since the beginning of the year. A
further deterioration of real w ges is anticipated and with it in-
creased labor discontent.
Despite rising public apprehension over the political-economic
situation, Frondizi appears determined to continue the stabiliza-
tion program. On 3 June he issued a st tement calling for two more
years of "hard sacrifice," acknowledging at the same time a need
to make the purposes of the program clearer to the public. His cab-
inet reorganization in mid-May was intended to improve the adminis-
tration of the program and to strengthen military support for the
government.
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THE PRESIIIIINT
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 and Civilian Mobilization
Special Assistant for Security Operations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Executive Secretary, National Security Council
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Economic Affairs
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Administration
The Counselor
Director, International Cooperation Administration
The Director of Intelligence and Research
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
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
Director for Intelligence, The Joint Staff
Assistant Chief of Staff for 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
The Department of the Interior
The Secretary of the Interior
The Department of Commerce
The Secretary of Commerce
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
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