CENTRAL INTELLIGENCE BULLETIN - 1958/08/02

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 06830668
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: August 2, 1958

Approved for Release: 2020/01/23 C06830668e
TOP SECRET fitty rb 3.3(h)(2)
� 3.5(c)
2 August 1958
Copy No. C
GE\ TRAL
57
INTELLIGENCE
BULLETIN
DOCUMENT NO.
Nt 01 DCr,HcAL.NAGsEslIFNIECoLASS.
CLASS. CHANGED TO: WI
NEXT REViEW D.ATE:
AUTH: liR
CAT
REVONER:
T e s Ere R E T .
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668
fa
-TOP-SECRET eo
/
'MP-SECRET-
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668
O.-MP-SECRET
2 AUGUST 1958.
1. THE COMMUNIST BLOC
Nasir undertook to recon-
cile soviet-Yugoslav differences
during recent trip-to Moscow.
Poland's situation considered likely
to remain about the same, barring
strong shocks from Moscow or the
West.
Geneva - Soviet delegation presents
minimal plan for nuclear test Inspection.
II. ASIA-AFRICA
0
Middle East - Lebanese president-elect
Shihab negotiates with moderate op-
position leaders in hope of isolating �
extremists. Jordanian army chief
of staff under increasing criticism
from within army. Nasir predicts
disaffected army officers will at-
tempt coups in Saudi Arabia and the
Sudan.
� Japan - Foreign minister presents
preliniinary views on increasing
Tokyo's role in security arrange-
ments with the United States.
III. THE WEST �
Icelandic-British impasse over 12-
mile fishing limit continues; USSR
offers Iceland support.
Chile - President Ibanez likely to
sign bill revoking ban on Commu-
nist party.
-TOP-SECRET
Approved for Release: 2020/01/23 C06830668
Approved for Release: 2020/01/23 C06830668
Id
CENTRAL INTELLIGENCE BULLETIN
2 August 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Nasir's trio to Moscow�
Nasir
talked about Yugoslav-Soviet differences with Khrushchev and
that he succeeded in effecting a reconciliation. Nasir may,
in fact, have attempted to act as peacemaker, but the differ-
ences between Moscow and Belgrade are too fundamental to be
readily resolved. A recent diminution in Soviet anti-Yugoslav
propaganda is probably attributable to Soviet preoccupation
with the Middle Eastern crisis and to the fact that Belgrade's
loud condemnation of Western intervention serves Soviet in-
terests.
Poland: Ambassador Beam believes that, barring too
strong pressure from either East or West, the situation in
Poland will remain stableH
Geneva technical talks: The Soviet delegation has out-
lined an inspection system that is much less comprehensive
than that sought by the West, depends less on mobile inspec-
tion teams, and relies primarily on inspection in a country by
its own nationals. The plan is extensive enough, however, so
that if no agreement is reached at Geneva, the USSR probably
anticipates it will appeal to public opinion as a reasonable basi,
for a tegt cessation.
0 TOP SECRET
1ZZ/
Approved for Release: 2020/01/23 C06830668
Approved for Release: 2020/01/23 C06830668
A
0
II. ASIA-AFRICA
Middle East: Lebanon's president-elect General Shihab,
is .striving to reach an understanding with moderate rebel
leaders outside Beirut in an attempt to isolate the extremists
in the Basta quarter of the capital and undermine their hold
on the rebel movement. The rebel leaders have generally
taken the position that the revolution is merely suspended
pending negotiations with the general over satisfaction of
their. demands. Shihab is convinced that the cabinet of Prime
Minister Sulh must be replaced at once. Jordan's army chief
of staff Majalli is being subjected to criticism from within the
army because of recent large-scale arrests of array officers
by King Husayn. If a collapse of the Jordanian Government
appeared imminent, Israel, unless it had received firm in-
ternational security guarantees would probably move rapidly
to seize most or all of West Jordan, the port of Aqaba, and
possibly the Island of Tiran at the entrance to the Gulf of
Aqaba. Nasir has expressed belief that the next attempts by
disaffected army officers to overthrow their governments
will be made in the Sudan and Saudi Arabia.
The Ruler of Kuwait has sought British approval to
join the Egyptian-dominated Arab League.
A possible
nel outside the
(Page
alert in the Sudanese Army
indicating that leave for
country has been prohibited.
2)#
military person-
Japan: .Foreign Minister Fujiyama has outlined his gov-
ernment's. preliminary suggestions for adjustments in security
arrangements with the United States which must be. accomplished
without revising the present treaty. They include an under-
standing on cooperation of American and Japanese. forces in
the defense of Japan, consultation on the disposition and use of
American forces based in Japan; and a formal understanding
about bringing nuclear arms into Japan. The Japanese are
2 Aug 58
DAILY BRIEF ii
0
0
0
F
40
91
00j
1
Approved for Release: 2020/01/23 C06830668
Approved for Release: 2020/01/23 C06830668
OOP -SECRET
concerned primarily that freedom by the US tit) use:its Japan-based
forces in other areas without consulting might involve them,
in hostilities involuntarily. (Page .7)
III. � THE WEST
Iceland-Britain: No solution tci the impasse over. Iceland's
extension Of its fish-conservation:Emits to 12 miles is in -
sight. The limits become effective on 1 September, and �
Britain maintains that it is ready to protect it; fishing trawl-.
ers off Iceland. the
USSR has offered Iceland any aid it wants in this issue and .
has requested permission for a "courtesy" naval visit to
IcelancLabout 1 September.
Chile: Congres voted on 31 July to abrogate a ten-yeir-
old slat-7a outlawing the Communist party. While President
Ibanez has vetoed similar measures before, he is likely to
approve such a bill this time. The Communists would gain
freedom of action arid an air of respectability which would
improve the prospects for the Communist-front candidate in
the presidential elections scheduled for 4 September
(Page q)
2 Aug 58
#
0
Approved for Release: 2020/01/23 C06830668
Approved for Release: 2020/01/23 C06830668
ee-CONFIDEMAL--
��
I. THE COMMUNIST BLOC
Situation in Poland
Ambassador Beam in Warsaw believes that the last six
months in Poland have been a "holding operation" with re-
siva to internal affairs and external relations. He sees no
evidence that a further liberalization in policy is in process
or in prospect, and recent regime moves against church
publishing activities suggests that church-state relations may
be deteriorating. The ambassador believes the Gomulka re-
gime will remain stable if not pressed too strongly from either
East or West. The ambassador expects the Kremlin to toler-
ate Poland's internal freedom, despite the example it sets for
the rest of the bloc, rather than risk Polish reaction.
The ambassador noted that the shift in emphasis from
"the Polish road to socialism" to "bloc solidarity" has been
intensified in recent weeks although nuances of differences
with Soviet policy continue. In addition to geographic and mil-
itary reasons against straying from the bloc, Gomulka is moti-4-
vated by a fear of German resurgence, a need for a profitable
economic relationship with the USSR for which he sees no im=
Mediate Western substitute, and a feeling that Poland can play
a constructive role in the bloc. He apparently hopes that his
professions of loyalty to the bloc will persuade Moscow to
continue its toleration of internal Polish deviations.
-CONFIDENTIAL
-
2 Aug 58 CENTRAL INTELLIGENCE BULLETIN Page 1
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668--- -
��
II. ASIA-AFRICA
Middle East Developments
Lebanon: President-elect General Shihab and opposition
leaders are attempting to assess each other's strength and in-
tentions. The rebel leaders have generally taken the position
that the revolution is merely suspended and will continue if
Shihab will not accept the 15 conditions presented by the op-
position on 30 July.
To dramatize the extremists' case, terrorists set off a
bomb blast in Beirut on 1 August, killing at least two persons
and wounding several. The same day, rebel leaflets appeared
in Beirut, warning that the rebellion would continue until Ameri-
can troops were withdrawn and President Chamoun had handed
over power to General Shihab. Many opposition leaders who
have taken an active role in the rebellion will probably attempt
to refrain from cooperating with the government until at least
some of the demands are met.
General Shihab has begun discussions with various opposi-
tion leaders. He is seeking to reach an understanding with the
more moderate groups outside of Beirut, in the hope of isolat-
ing the extremists in the Basta quarter of the capital and under-
mining their hold on the opposition movement. The general has
once more stated that he could not tolerate the Basta's continuing
as a focus of the rebellion and has expressed hope that the re-
sistance there could be terminated through negotiations with
rebel "Commander" Saeb Salam, who has sought a meeting with
the general.
� Even moderate groups have pressed the general for an im-
mediate request that American forces be withdrawn and to ar-
range for President Chamoun's prompt departure from the coun-
try prior to expiration of his term on 23 September. Chamoun,
however, continues to insist that he will not leave office before
the end of his term. The general has suggested that Chamoun
might wish to take a trip abroad while remaining legal president
of Lebanon until 23 September. Shihab is convinced that the
present cabinet of Prime Minister. Sami Sulh can no longei be
effective and should be replaced. He has hinted that if Sulh
TOP SECRET
2 Aug 58 CENTRAL INTELLIGENCE BULLETIN Page 2
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668
�OTOP SECRET
o�
should leave office, presumably to be replaced by a prime min-
ister acceptable to the opposition, demands for Chamoun's de-
parture might be resisted. Chamoun will probably agree to re-
place the Sulh cabinet. It is possible that either or both the
President and prime minister may be sent out of the country on
an official mission to present Lebanon's case for international
guarantee of its integrity before the United Nations.
Maneuvers to bring about the resignation of Prime Minister
Sulh probably were responsible for the resignation of Finance
Minister Pierre Edde on 1 August. Additional resignations are
expected. Prior to the elections two ministers resigned, and no
new members have been added to the cabinet.
General Shihab believes that opposition demands for dissolu-
tion of the Chamber of Deputies and for holding new elections
cannot be complied with for a long time to come because of the
intensity of feeling generated by the rebellion.
Lebanon recognized the new government of Iraq on I August.
Possible evidence that rebel groups in northern Lebanon are
continuing to receive logistical support from Syria is suggested
15 trucks
moving south from the Syrian border toward Tripoli under cover
of darness. The convoy turned off headlights and pulled off the
road when sighted. This is reported to be the second such sight-
ing during a twelve-hour period.
Jordan: Army Chief of Staff Majalli is being subjected to in-
creasing criticism from within the army because of recent large-
scale arrests of officers undertaken by King Husayn; many of
these occurred before Majalli was notified. Antiregime nation-
alist groups are hopeful that this situation will produce further
disaffection within the army.
King .Husayn states that smugglers were intercepted on 30
July bringing arms into Jordan from Egypt. Evidently an old
Bedouin smuggling route across Israel is being used to supple-
ment the transport of arms across the heavily patrolled Syrian..
Jordanian border.
2 Aug 58 CENTRAL INTELLIGENCE BULLETIN Page 3
Approved for Release: 2020/01/23 C06830668
Approved for Release: 2020/01/23 C06830668
ofirOP SECRET
British troops in Jordan, meanwhile,are preparing fOr a
lengthy stay. They now are concerned with locating suitable
winter quarters.
Israel: In commenting on the coming visit of Israeli For-
eign Minister Meir to Paris, scheduled for 5 August, the semi-
official French press agency, stated that French-Israeli friend-
ship was not necessarily exclusive and that this fact was under-
stood by Israel. The statement added that French policies�would
not necessarily be based on Israel. Mrs. Meir reportedlyiwill
seek closer political and military ties with. France, and the
agency release may have been inspired by the French Govern-
ment to prepare Israeli and French public opinion for a loosen-
ing of French ties with Israel as a step toward a modus (vivendi
with the Arab states.
Ambassador Lawson in Tel Aviv believes that in the event
of widespread disorders in Jordan, Israel would act at once to
protect its security--even though British troops might still be
present--unless by that time Israel had received security as-
surances which it believed offered unquestionable protection.
If a collapse of the Jordanian Government and a take-over by pro-
UAR forces appeared imminent, Israel, unwilling to accept the
UAR as a neighbor on its present undefendable eastern boundary,
would probably move rapidly to seize most or allofWestAirdan�.,the
ttert.ofAciabg, and possibly the Island of Tiran at the entrance to
the Gulf of Aqaba. Such operations would not, however, pre-
vent the UAR from establishing control over the remainder of
Jordan�completing the land encirclement of Israel.
TOP SECRET
2 Aug 58 CENTRAL INTELLIGENCE I Page 4
Approved for Release: 2020/01/23 C06830668
Approved for Release: 2020/01/23 C06830668
4,00P SECRET
Iraq: Fire and explosions in a large oil storage depot in
Baghdad on 30 and 31 August may have been the work of ex-
tremists hoping to arouse anti-Western feeling and embarrass
the new government's efforts to improve relations with the
West. The crowds and even some soldiers who were alerted
to keep order appeared to give credence to rumors that the
fires had been started by the British.
ftwo fires .had
broken out in Baghdad and that the oil depot fire "was probably
caused deliberately."
Cairo has announced plans to provide 300 Egyptian teach-
ers to Iraq in response to a request from Baghdad.
UAR: During informal conversations on 28 July,Nasir
expressed the belief that
attempts by disaffected army officers to overthrow their gov-
ernments would next be made in the Sudan and Saudi Arabia.
He felt that such action could be encouraged by employing
Egyptian propaganda media to glorify the leaders of the Iraqi
revolt.
Nasir is also reported to have indicated that he was con-
sidering dissolution of the present union between Egypt and
Syria in favor of a federation which would permit Iraq to af-
filiate more closely with Egypt than would be possible under
the existing arrangement. Word that Syrian leaders are also
considering such a proposal has been reported by Syrian news-
men in Damascus.
Saudi Arabia: A mimeographed sheet titled "Voice of the
People" is reported to have appeared in Saudi Arabia at the
end of July The paper at-
tacked King Saud and warned Crown Prince Faysal that the
monarchy would fall.
Kuwait:
the Ruler of Kuwait on 31 July sought Britain's agree-
ment to Kuwait's joining the Egyptian-dominated Arab League,
2 Aug 58 CENTRAL INTELLIGENCE BULLETIN Page 5
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668
SO
and also favored membership for Bahrein. Although the Ruler
still professes to look to Britain for protection and to have no
intention of joining the UAR, he is apparently continuing to
search for a means of placing himself in general support of
Egyptian foreign policy objectives.
� Sudan: A possible alert of the Sudanese Army is suggested
a general staff order pro-
hibiting leave for military personnel outside the country. Al-
though the alert may indicate response to recent limited aug-
mentation of Egyptian forces in southern Egypt, it could also
reflect the government's concern over internal security.
Iran: General Zahedi, former prime minister and leader
of the forces which overthrew Premier Mossadeq,andnoW Iranian
ambassador at the European Office of the UN,. views develop-
ments in the Middle East with pessimism and predicts that
Baghdad will soon become a center of Arab nationalist activity
posing a serious danger to Iran. Zahedi, apprehensive of dis-
gruntled elements and subversive elements at work among the
tribes in Iran, fears that anti-Western developments may soon
occur in his country. The Shah continues to reflect concern
over his personal safety and has ordered investigation of all
officers of his armed forces.
--TOP-SEGRE-T
2 Aug 58 CENTRAL INTELLIGENCE BULLETIN Page 6
Approved for Release: 2020/01/23 C06830668
Approved for Release: 2020/01/23 C06830668
��
Japan Seeks Adjustment of Security Relations With US
Japanese Foreign Minister Fujiyama-on 30 July informed
Ambassador MacArthur that during his visit to the United
States in early September he hopes to hold consultations about
adjustments within the framework of the existing security treaty
which would clearly define the role of American forces in .Japan
and include an understanding on cooperation of American and Japa-
nese forces in the defense of Japan.
In a detailed "talking paper" which he presented, Fujiyama
outlined his government's desire for some control over the dis-
position and use .of American forces in Japan: for consultation
about the use of such forces in areas outside Japan; and for .a
formal understanding about bringing nuclear weapons to Japan.
� The Japanese are fearful primarily that the use of Japan-
based US forces outside the country without consulting the Tokyo
government might involve them involuntarily in hostilities. Op-
position to nuclear weapons also remains very strong, largely
because of widespread belief among the Japanese that their
presence would invite an attack on the country.
Fujiyama said that Japanese commitments regarding a
mutual defense treaty are handicapped by constitutional limita-
tions and by far-reaching domestic political implications,.
.2 Aug 58
CENTRAL INTELLIGENCE BULLETIN
Page 7
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668
S.
O�
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668
III. THE WEST
British-Icelandic Fisheries Dispute
Neither London nor Reykjavik appears prepared to yield
in the dispute over Iceland's extension of its fish-conservation
limits to 12 nautical miles, effective 1 September. Britain
declares that its trawlers will continue to operate within four
miles of Iceland, and that its navy will protect this historic
right. The British Foreign Office sees little advantage in
NATO Secretary General Spaak's suggestion for secret techni-
cal talks by representatives of Britain, Iceland, and other NATO
countries with fishing interests in the area, since the. Icelandic
permanent representative lacks any authority to negotiate.
Despite signs of somewhat greater flexibility in the Brit-
ish Foreign Office and Ministry of Agriculture and Fisheries,
the attorney general's objections to Spaakts idea of reaching a
modus vivendi before 1 September seem to be prevailing. The
attorney general holds that a demonstration of a firm intention
to protect the fishing fleet will deter other nations such as Den-
mark and Norway from following Iceland's example..
The Icelandic Communists, counting on the widespread
popular support for the extension of fish-conservation limits,
are successfully keeping their cabinet partners, the Progres-
sives and the Social Democrats, from making any conciliatory
moves. The USSR, has
offered Iceland assistance in enforcing the 12-mile.:: limit and
has suggested a Soviet naval visit around 1 September
2 Aug 58 CENTRAL INTELLIGENCE BULLETIN Page 8
Approved for Release: 2020/01/23 C06830668
 Approved for Release: 2020/01/23 C06830668
001avP3eerfAt
o�
� Chilean Congress Votes Legalization of Communist Party
The Chilean Congress voted on 31 July to abrogate the ten-
year-old Law for the Permanent Defense of Democracy--which
among other things outlawed the Communist party--and to replace
it with a new internal security bill. The old law was opposed by
most of the parties because of the harsh penalties it provided
against anf-kind of antiadministration activity.
President Ibanez recently vetoed similar measures for not
providing sufficient controls against subversive activities. He
is reportedly dissatisfied with this latest bill, but probably feels
this is the last chance before leaving office to fulfill his 1952
campaign promise to abrogate the unpopular law. Mame,' re-
cent actions, such as dismissal of his strongly anti-Communist
interior minister in early July, indicate that he is trying to
eliminate cabinet opposition to the new bill.
The respectability and prestige the Communists will gain if
the bill is signed will enhance the candidacy of the Communist-backed
Socialist candidate Salvador Allende in the presidential elections
scheduled for 4 September.
r-CONFIDENTIAL
2 Aug 58
CENTRAL INTELLIGENCE BULLETIN Page 9
Approved for Release: 2020/01/23 C06830668