CURRENT INTELLIGENCE BULLETIN - 1958/01/02

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 06805388
• 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 2, 1958

Approved for Release: 2019/08/20 C06805388
TOP SECRET
2 January 1958 3.3(h)(2)
Copy No. 143 3.5(c)
/
CURRENT
//INTELLIGENCE NO CHANGE IN CLASS.
DOCUMENT NO. ,-
BULLETIN CLASS. CHANGED TO:
NEXT REVIEW DATE:
I .1 DECLASSIFIED
TS IS
0117 tl li/
ts�.. � D
AUTH: HR 70-2 AM 4-41"EVIEWE
$
/
1 /
I4
/
1 /
1 f;
'*;
/
� 0
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
TOP SECRET
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
"
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
TOP SECRET
CONTENTS
1. AFRO-ASIAN BOYCOT OF DUTCH SHIPPING EXPECTED
IN SUPPORT OF INDONESIA ) (page 3).
2. MILITARY REVOLT IN VENEZUELA
(page 4).
3. PATHET LAO ASSIGNING TOP OFFICERS TO SUBVERSIVE
OPERATIONS (page 5).
411-- 4 BRITISH PLANS TO STRENGTHEN SULTAN OF MUSCAT
J4O� (page 6).
itePc9/2_ 5. NEW PROPOSALS FOR A CYPRUS SETTLEMENT
1) (page 7).
Az, 6. LIBYAN OIL DISCOVERY CALLED PROMISING
(page 8).
AMP EAST GERMAN PARTY SHAKE-UP DEMONSTRATES
ULBRICHT'S SUPREMACY (page 9).
2 Jan 58
Current Intelligence Bulletin Page 2
TOP SECRET
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
CONFIDENTIAL
NNW
1. AFRO-ASIAN BOYCOTT OF DUTCH SHIPPING EXPECTED
IN SUPPORT OF INDONESIA
Comment on:
dockworkers'
unions in Afro-Asian countries have
started a boycott of Dutch shipping.
It will be accelerated by
a resolution introduced at the Afro-
Asian conference in Cairo calling for
a boycott of all Dutch shipping carrying
goods for use against Indonesia. Dur-
ing the Indonesian revolution against the
Dutch in 1948, a general boycott by mari-
time services in Southeast Asia and the
.Middle East crippled Dutch commerce in
the area.
The Burmese government, at the request
of the Indonesian embassy in Rangoon, has already directed
the labor minister to prevent Burmese seamen from work-
ing on Dutch ships, Presi-
dent Sukarno may be expected to press for this form of sup-
port during his forthcoming tour of several neighboring Asian
countries and Egypt. One report states that Sukarno will ask
President Nasir to close the Suez Canal to Dutch ships.
In Indonesia, the government has been
forced to discharge the Dutch pilots and officers of the Indo-
nesian national shipping company because seamen's and dock
workers' unions refused to work for Dutch officers. The
Dutch naval attach�as information that the company is hir-
ing East Germans and Poles as replacements.
2 Jan 58
Current Intelligence Bulletin Page 3
CONFIDENTIAL
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
SECRET
2. MILITARY REVOLT IN VENEZUELA
Comment on:
A reported 50 percent or more of the
Venezuelan air force launched a re-
volt with possible army support on 1
January which will seriously under-
mine the prestige and probably threaten
the stability of President Perez' author-
itarian regime. The government claims
the movement is being brought under con-
trol rapidly and has arrested several high-
ranking officers, reportedly including the
army commander and his chief of staff.
the revolt is headed by the air force chief of staff, and the
rebels have complete command of all armed forces at the
principal air base of Maracay--about 50 air miles from
Caracas and a major troop concentration area. Rebel planes
have made passes over the capital without dropping bombs.
The backing of a part of the army, Vene-
zuela's key armed forces component, appears essential to
Perez' ouster. If the highly trained and well-organized
6,000-man national guard, which constitutes about 40 per-
cent of the army, should defect in support of the air force
and win active civilian backing, these elements with or with-
out a modicum of army assistance might be capable of over-
throwing Perez. Venezuela has one of the best air forces in
Latin America, with 2,000 personnel and 173 planes, 35 per-
cent of which are jets.
Perez must retain control of the armed
forces in order to perpetuate his tenure. Even if the present
revolt is brought under control and confined largely to the air
force, it will necessitate a major shake-up in military com-
mands and widespread reprisals which in turn would lead to
Intensified military plotting. The disorganized and largely sup-
pressed political, labor, and general public opposition to the re-
gime probably has the indirect support of the relatively weak
Catholic hierarchy but could only become an effective force
against Perez under the leadership of the armed forces.
2 Jan 58
Current Intelligence Bulletin Page 4
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
TOP SECRET
ec.04 %No
3. PATHET LAO ASSIGNING TOP OFFICERS TO
SUBVERSIVE OPERATIONS
The Communist-directed Pathet Lao has
ordered that members chosen for integra-
tion into the civil administration must be
competent enough to preclude their sub-
sequent dismissal on grounds of inefficiency,
Officials thus integrated are to foster the propaganda cam-
paigns of the Pathets' legally recognized political party, the
Laotian Patriotic Front. The best Pathet members, however,
are to be reserved for work within the front's mass organiza-
tions.
Western observers who visited the former
Pathet Lao-held provinces of Sam Neua and Phong Saly during
December were impressed by the discipline and alertness of
the Pathet troops and officials. The first objective of those
integrated into the army and administration will be to work
for a good showing in the supplementary elections scheduled
for May for 20 new seats in the national assembly. The as-
sembly now has 39 seats.
2 Jan 58
Current Intelligence Bulletin Page 5
TOP SECRET
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
TOP SECRET
vs Nuif
4� BRITISH PLANS TO STRENGTHEN SULTAN
OF MUSCAT
Comment on:
Britain's Parliamentary Under Secretary
for War Julian Amery arrives in Muscat
on 2 January to discuss with the Sultan
British economic aid and military assist-
ance, primarily the assignment of British personnel and gifts
of equipment. The inability of the Sultan's British-led forces
to eliminate the Saudi-supported Omani rebels in an abortive
campaign last fall has emphasized the need for such action.
Because of adverse political repercus-
sions, London is extremely reluctant to commit British troop
units against the rebels again. It will probably therefore of-
fer a training mission and additional armored cars and small
arms to supplement the few advisory officers and five armored
cars now stationed in Muscat. Britain apparently has already
begun recruiting for the Sultan's forces among Bedouin tribes
in Iraq, and may suggest closer ties between the Sultan's
forces and the more effective British-officered Trucial Oman
Scouts.
Economic aid now appears necessary be-
cause no significant income from American and British oil
operations in the Sultan's territories is imminent. London
believes the Sultan must provide useful services--such as
medical care--to develop the loyalty of the tribesmen.
The Sultan's military weakness and Britain's
unwillingness to repeat its direct intervention have probably en-
couraged increased Saudi and Yemeni assistance to the Omani
separatist movement.
2 Jan 58
Current Intelligence Bulletin Page 6
TOP SECRET
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
*4401
5. NEW PROPOSALS FOR A CYPRUS SETTLEMENT
Comment on:
Greek Foreign Minister Averoff has
information that Governor Foot's pro-
posals to the British Government for
settlement of the Cyprus issue will in-
clude provisions for three five-year parliaments during
a transition period leading to full self-determination. Dur-
ing the first five years, the British would retain jurisdic-
tion over internal security, foreign policy and customs.
Jurisdiction during the second period would be divided ber
tween the Cypriots and the British, while full jurisdiction
would pass to the Cypriots during the last period.
Averoff states that both his government
and Archbishop Makarios are prepared to accept such pro-
posals. Makarios will insist, however, that he be permitted
to return to Cyprus immediately. There have been indica-
tions that neither Athens nor the Cypriot leaders would in-
sist on immediate self-determination for Cyprus but would
accept a long transition period if eventual self-determina-
tion is not precluded.
Turkish leaders insist that partition of
Cyprus is the greatest concession they are prepared to make.
The recent arrival in Ankara of Turkish Cypriot leader Fazil
Kuchuk, at the request of Turkish officials, probably indi-
cates intensive examination of the Cyprus issue and may be
a prelude to new Turkish demarches in London to prevent
acceptance of Foot's proposals.
2 Jan 58
Current Intelligence Bulletin Page 7
SECRET
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
5CREF-
'410
6, LIBYAN OIL DISCOVERY CALLED PROMISING
Comment on:
The oil strike recently made by Stand-
ard Oil of New Jersey (ESSO) in the
Fezzan Province of Libya has not yet
been proven sufficient for commercial
production,but the prospects are "highly promising," ac-
cording to the company's general manager in Libya.
The strike was made near the Libyan-
Algerian border in the vicinity of the French discovery in
� Algeria near Edjele, approximately 500 miles south of Tri-
poli. Nearly all favorable areas of Libya are under conces-
sion for exploration, but the ESSO strike is the first good
oil show obtained. Details of the depth of the strike (2,110
feet) and the petroleum layer (40 feet) are similar to French
findings at Edjele.
A major oil discovery in Libya, west of
the Suez Canal, would improve the West's bargaining posi-
tion with major transit and producing countries in the Middle
East, but the present pace of petroleum development is such
that it would probably be several years before a Libyan field
could have a significant impact.
2 Jan 58
Current Intelligence Bulletin Page 8
Approved for Release: 2019/08/20 C06805388
Approved for Release: 2019/08/20 C06805388
SECRET
440
'1. EAST GERMAN PARTY SHAKE-UP DEMONSTRATES
ULBRICHT'S SUPREMACY
Comment on:
Extensive changes of personnel in the
secretariat of the East German Social-
ist Unity (Communist) party (SED),
Indicate that First Secretary Ulbricht is strengthen-
ing his control of this body by appointing toll Only persons
who are in full agreement with the intensification of his hard-
line policies.
One secretary was recently removed be-
cause he failed to carry out a rigid policy in the education
field, and another committed suicide earlier this month af-
ter disagreement with Ulbricht on economic issues. Kurt
Hager, who is responsible for science and higher education,
will also be removed, and Albert
Norden, the party's propaganda chief, will be moved to a
"higher position P
the composition of
the new secretariat would be announced at the SED's 35th cen-
tral committee plenum, which will take place in January. The
appointment of secretaries loyal to Ulbricht would be another
sign that he has won the lengthy controversy with various high-
level party leaders who have favored a more realistic economic
policy in East Germany. Ulbricht% complete dominance in East
Germany is further indicated by the endorsement given him and
his policies by top Soviet leaders.
2 Jan 58
Current Intelligence Bulletin Page 9
SECRET
Approved for Release: 2019/08/20 C06805388