CENTRAL INTELLIGENCE BULLETIN - 1959/06/16

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 06834825
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: February 25, 2020
• Document Release Date: February 27, 2020
• Publication Date: June 16, 1959

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3.3(h)(2)
3.5(c)
16 June 1959
Copy No. C
CENTRAL
c
62
INTELLIGENCE
BULLETIN
DOCUMENT NO.
NO CHANGE IN CLA3.
i DECLASSIFIED
CLASS. CHANGED TO:
NEXT REVIEW DATE�
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16 JUNE 1959
I. THE COMMUNIST BLOC
USSR�Communications indicate that
recent jet heavy bomber deployment
involved operational trainine in han-
ine_nufflear weapons.
II. ASIA-AFRICA
Iran�Shah explains recent cabinet
changes.
Nasir believes British are behind
UAR's current difficulties with Israel
and Jordan.
Japan�Prime Minister Kishi may face
open break with important leader in his
party.
III. THE WEST
French bring demands for global plan-
ning into forum of North Atlantic Coun-
cil.
�
--TOP---SEGRET
.. �
West Germany--CDU nominates Agri-
culture Minister Luebke as its presiden-
tial candidate.
�Spanish general strike scheduled for
18 June.
CI Caribbean--Invasion team lands in Domin-
ican Republic; Venezuela alerts military
forces af er its diplomatic break w th
Trujillo.
CI USSR exploits Brazilian financial crisis
by offering to purchase $100,000,000
worth of coffee.
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CENTRAL INTELLIGENCE BULLETIN
16 June 1959
DAILY BRIEF
I. THE COMMUNIST BLOC
Soviet Long Range Air Force Training: The recent deploy-
ment of BISON jet heavy boithers to Anadyr, in extreme north-
east Siberia, probably involved operational training in handling
of nuclear weapons. While the Soviet Long Range Air Force has
long been credited with a capability for carrying out such train-
ings
(Page 1) (Map)
II. ASIA-AFRICA
,
Iran�. 'The Shah has told an American official that the re-
cent cabine1 changes. were an effort to weed out those ministers
who have been in chronic disagreement with the government or.
have demonstrated weakness and vacillation in the face of the
Soviet war of nerves. In a lengthy general discussion on 11 Jun ,
the Shah expressed confidence and determination and made another
strong bid for increased American military aid and full American
participation in the Baghdad Pac9 (Page 2)
UAR: [President Nasir
is d that the British plan to try to reverse the trend
toward improvement of the UAR's relations with the West by pro-
voking the UAR into actions which would damage its standing with
the United States. Characteristically, Nasir believes that the
British are behind the UARis border trouble with Jordan and its
dispute with Israel over transit of the Suez Canal. Meanwhile.,
Nasir intent:Ls to try to nutwalt the Tqrnelin on the ranal issue.]
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Japan: Prime Minister Kishi has run into difficulties in
attempting to reshuffle his cabinet and top party posts. He is
facing a possible open break with one of the strongest leaders
in the government party, Ichiro Kono, who has publicly threat-
ened that he will no longer cooperate with lashi because of
disagreement over ICono's role in the party. ICono could cause
10.shi trouble over the revision of the US-Japan Security Treaty,
relations with Communist China, and other sensitive issues.
(Page 3)
III. THE WEST
France - NATO: CDe Gaulle% demands for planning on
global security, hitherto discussed only among France,
Britain, and the United States, have for the first time been
brought into the North Atlantic Council. A French statement
made acceptance of the demands a condition for the establish-
ment of nuclear stockpiles for USAF squadrons in France.
Full NATO discussion, as urged by several members, will
probably bring into the open the opposition of other European
natio to De Gaulle's approach on auestions of common de-
fens; (Page 4)
West Germany: The Christian Democrats' nomination of
Agriculture Minister Heinrich Luebke for the presidency re-
flects the party's effort to avoid further internal disputes be-
fore the 1 July election. Luebke's candidacy will probably
appeal to conservative elements, particularly in the small
,L German party (Deutsche Partei), whose support is necessary
DI to ensure his election over the Social Democrats' popular
candidate, Carlo Schmid. Election of Luebke, a Catholic,
would temporarily upset the ten-year religious balance be-
tween the presidency and the chancellorship but would improve
the chances of a Protestant�either Erhard or Etzel--suc-
ceeding to the chancellorship. (Page 5)
16 June 59
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DAILY BRIEF ii
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Spain: 6he 24-hour general strike, which the underground
Communist party has been trying to promote for some time, is
reportedly scheduled for 18 June. Increasing worker discontent
over economic conditions may give it limited success, particu-
larly in the Barcelona area where Christian Democrats and
Socialists are also said to be backing it, but the authorities
should have no difficulty in maintaining public order. To pre-
vent a further extension of labor discontent, however, Franco
may be obliged to take a public stand explaining and defending
Spain's economic stabilization program, now on the eve of final
agreement with the �EEC) (Page 6)
Venezuela - Dominican Republic: Following its suspen-
sion of diplomatic relations with the Dominican Republic on
12 June, Venezuela has placed its armed forces on alert Status
as a precaution against possible retaliation. Dominican dictator
Trujillo is increasingly disturbed over revolutionary activities
in the Caribbean and has informed the US that an 18-man inva-
sion force, allegedly from Cuba, landed about 55 air miles from
iudad Trujillo on 14 June. He may take violent action against
Cuba or Venezuela if he feels he is about to be attacked by any
siderable force from either nation.
The Dominican air force, army, and navy have been placed
alert as a precaution against further incursions from abroad.
(Page 7)
Brazil-USSR: 6he Soviet trade delegation in London has of-
fered, through the Brazilian Chamber of Commerce there, to
buy $100,000,000 worth of Brazilian coffee under a three-year
barter agreement. Since this is greatly in excess of the USSR's
current rate of consumption, the offer was probably designed
largely to exploit for political purposes Brazil's international
fj. cial crisis. Brazil did ship a small amount of coffee to the
SSR in early June--its first direct shipment in postwar years--
ut has insisted that any large-scale sal of coffee must be ac-
)
com anied b a arantee ainst resale.
(Page 8)
DAILY BRIEF
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I. THE COMMUNIST BLOC
�
Probable Soviet Air Force Training With Nuclear Weapons
the exercise probably involved operational train-
ing in the handling of nuclear weapons.
It has been fairly well establishe0
that the USSR uses the word "carriers" to refer to aircraft carry-
ing nuclear weapons. The term "article" is a cover word frequently
used to denote military equipment such as
an aircraft, a guided missile, or a bomb. The word "articles"
most likely refers to nuclear weapons. A regional
nuclear weapons storage site is believed to he lnea_ted nPar Anadv�.
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16 June 59 CENTRAL INTELLIGENCE BULLETIN
Page 1
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SE e R E -T-
I L ASIA-AFRICA
�
Cabinet Changes in Iran
6._�anian Prime Minister Eqbal, who has consistently op-
posed any concessions to the USSR, probably helped convince
the Shah that Foreign Minister Hekmat should be replaced to-
gether with Interior Minister Batmanqelich, with whom Eqbal
could not get along, and Commerce Minister Neisari, whom
the Shah regards as weak. The new iloreign minister3, Jalal .
Abdoh, who was permanent Iranian delegate to the UN, is re-
garded by the Shah as being a strong personality, experienced,
and strongly anti-Soviet. Newly appointed Interior Minister
Atabaki and Commerce Minister Etebar are tentatively rated by
the US Embassy as inadequate for their positions.
klie cabinet changes may mean that the Shah, who returned
from Europe full of confidence and angry over Soviet propaganda,
intends to embark on a more dynamic course:inlnternalreforms andfor-
eign affairs. He recently said that he must push reforms in order
to divert popular attention and show Soviet propaganda charges to be
absurd. He believes, however, that the USSR cannot precipitate
a revolution in Iran because the Iranian Army is the only force
inside the country capable of overthrowing him, and he believes
the army to be loyal.
The Shah told an American official on 11 June that he had
decided to replace Hekmat because of Hekmat's constant pressing
for an improvement in relations with the USSR, despite continuing
Soviet propaganda attacks. Hekmat was instrumental in convincing
the Shah in January that Iran should open nonaggression treaty )nego-
tiations
with the USSR for e purpose of applying pressure on the
US to provide additional aid.
@ince the breakoff of the talks in February, the USSR has con-
ducted an intensive propaganda campaign against the Shah. Hekmat
apparently now is paying for this blunder, which caused apprehen-
sion among Iran's allies that the :Shah might repeat the maneuver
without warning.)
16 June 59 CENTRAL INTELLIGENCE BULLETIN
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Japanese Prime Minister Meets Difficulty in Reshuffle
Of Cabinet and Party Posts
Japanese Prime Minister Kishi, although strengthened by
the favorable results of recent elections, has run into difficul-
ties in attempting to reshuffle his cabinet and top party posts.
He is facing a possible open break with one of the strongest
leaders in the government party, Ichiro Kono, who aspires to
succeed Kishi as prime minister.
ICono publicly threatened on 12 June that he would no longer
cooperate with the government because Kishi had not appointed
him secretary general of the ruling Liberal Democratic party.
He declared that he would not accept any party or cabinet post
regardless of any further overtures from Kishi.
Konots record of unprincipled opportunism and his flirta-
tions with the Communist bloc mark him as a source of danger
to Kishi and to US interests in Japan. He has said that the man
. who brings about diplomatic relations with Communist China
will be the next Japanese prime minister. He could cause Kishi
trouble over the revision of the US-Japan Security Treaty, rela-
tions with Communist China, and other sensitive issues.
Although Kono's decision not to participate in the cabinet may
not be final, the bitterness of his public attack on Kishi seems
certain to damage their previously close relationship. The loss
of Kono's support could be crucial to Kishi in the event of a chal-
lenge to his leadership during consideration of the security treaty
at the Diet session next fall.
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TIE THE WEST
De Gaulle's Demands Brought Into NATO Forum
(Erance for the first time has officially advised NATO of
De Gaulle's demands, hitherto discussed only at a tripartite
level, for Western policy and strategy coordination on a global
basis. This suggests that Paris may soon seek NATO approval
of its defense plans for North and sub-Sahara Africa and may
press for creation of :Lother international Western commands in
such areas as the Pacific)
(Mter General Norstad explained to the North Atlantic Council
(NAC3 ...,
on 11 June that French refusal to permit the establishment
of nuclear stockpiles in France had necessitated the redeployment
of several USAF strike squadrons to other bases, the French rep-
resentative stated that his government could not dissociate the
stockpile issue from global security. He added that Paris can
make no additional co . itments in NATO which have no reference
to "global necessities."
cn
This bald statement, which in effect conditions French participa-
tion NATO defense on recognition of Paris' political claims
outside NATO, led Italy and the Netherlands to call for full coun-
cil discussion of De Gaulle's proposals of September 1958 for
global policy planning. Further discussion could take place at the � ,
next regular NAC meeting on 17 June. Belgium has already raised
the issue of whether one country can arbitrarily and unilaterally
take action which undercuts the whole NATO defense program
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� CONFIDENTIAL
West German Christian Democrats Choose Agriculture Minister
Luebke as Presidential Candidate
The nominating commission of the West German Christian
Democratic Union (CDU) on 15 June chose 64-year-old Agricul-
ture Minister Luebke as its presidential candidate. Although the
office still carries prestige value for the party, .it had little at-
traction for politically ambitious CDU members since both Erhard
and Adenauer have rejected the nomination. The party was under
pressure, however, to select a candidate Acceptable to all factions
and of sufficient stature to defeat the Social Democrats' popular
nominee, Carlo Schmid.
Luebke is a respected and conservative figure long associated
with farming elements. He will probably appeal to the small,
largely agrarian German party (Deutsche Partei), whose 24 votes
are needed by the CDU as the latter is a few votes short of a
majority in the 1,038-member electoral convention.
Election of Luebke, a Catholic, would upset the religious bal-
ance between the chancellorship and the presidency which the CDU
has endeavored to maintain in the past in considering presidential
nominees. Protestant elements apparently accepted Luebke's
nomination in the expectation that the balance would be restored when
Adenauer leaves office. It also strengthens the chances of -Economics
Minister .Erhard, a P,rotestant, to succeed Adenauer.
A construction engineer by profession, Luebke has been ac-
tive in agricultural affairs since he became manager of the Ger-
man Farmers' Association in 1926. A member of the Center par-
ty, he served in the Prussian state legislature from 1931 until 1933,
when he was arrested and imprisoned by the Nazis for 20 months.
After the war Luebke joined the CDU and was elected to the
state legislature of North Rhine - Westphalia, where he served as
state agriculture minister from 1947 until 1953 when he joined the
Adenauer administration in the same post. He has sponsored eco-
nomic assistance to farmers and opposed liberalization of tariffs on
agricultural imports. He supports the Common Market but is less
than enthusiastic over the proposed European free trade area.
CONFIDENTIAL
16 June 59
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�
General Strike May Be mminent in Spain
A 24-hour strike which the Spanish Communist party has
been urging for some time now is reportedly scheduled for
18 June. Increasing worker discontent over economic condi-
tions may give it limited success, particularly in the Barcelona
area where Christian Democrats and Socialists are said to be
backing it, but public order is not likely to be endangered. To
prevent a further extension of labor unrest, however, Franco
may soon be obli ed to defend publicly Spain's economic stabl,
lization.program
&tailed production, lay-offs in Catalan industries, and
elimination of overtime pay have already resulted in protest
strikes in several firms in and near Barcelona. Hopes for new
wage increases to help meet the rising cost of living have been
dashed by repeated official statements--the most recent by the
) labor minister on 28 May--that pay boosts must be tied to
greater productivity..
(pespite labor concern over some aspects of the stabiliza-
tion program, no top official has explained adequately its ob-
jectives and implications. Recent pronouncements by the finance
and commerce ministers have tended to gloss over various as-
pects of the program that could have serious repercussions on
the economy. While Franco is said to be fully committed to the
program, he has avoided taking a public position, perhaps to
escape personal blame for any hardships it may impose on la-
bor. Final approval is expected when a high-level OEEC mis-
sion arrives in Madrid on 22 June)
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Break in Dominican-Venezuelan Relations
�
Venezuelan
armed forces have been placed on alert status.
This is a precaution against possible retaliation for Venezuela's
suspension of diplomatic relations with the Dominican Republic
on 12 June after weeks of strained relations and will probably in-
tensify the revolutionary unrest in the Caribbean. The immediate
cause of the break was the expulsion of the Venezuelan military
attach�t Ciudad Trujillo.
Trujillo appears disturbed by revolutionary activities through-
out the Caribbean area and particularly by the revolutionary plot-
ting of Dominican exile groups in Venezuela and Cuba. He may
take violent action if he believes he is going to be attacked by a
large force from either country. On 14 June, Trujillo advised the
US Embassy that an 18-man invasion force had just landed near
a mountainous area about 55 air miles from the Dominican cap-
ital. The force allegedly came from Cuba. The Dominican. gov-
ernment on 15 June claimed that additional invading forces were
expected from Venezuela. and Cuba. The Dominican air ferce,
army, and navy have been placed on the alert.
The Venezuelan Government has been seriously disturbed
by the effects of a hostile Dominican propaganda. campaign di-
rected against President Betancourt, long an implacable enemy
of Dominican dictator Trujillo.
a group of the Venezuelan military is conspiring with
Trujillo to overthrow Betancourt, and a coup attempt is immi-
nent. Betancourt, however, is believed to retain the support of
the majority of the Venezuelan armed forces.
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16 June 59
CENTRAL INTELLIGENCE BULLETIN
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� rONFIDENPIAL--
Brazil Studying Soviet Barter Offer
16'lle Soviet trade delegation in London has offered, thro.igh
the Brazilian Chamber of Commerce there, to buy $100,000,000
worth of coffee under a proposed three-year barter agreement.
Moscow reportedly has not specified the prui..tcts it will offer in
return. Negotiations are being carried ou secretly in Rio de
Janeiro between a British businessman and Brazilian Foreign
Ministry representatives, according to the British ambassador
in Brazil. The Soviet offer may have been transmitted before
Brazil suspended loan talks with the International Monetary Fund
on 9 June but was probably based on the knowledge that Brazil is
facing a severe balance-of-payments crisis)
amount of coffee involved--about 650,000 bags per year
over the three-year period--is nearly 10 times the USSR's cur-
rent annual rate of consumption and would be nearly 10 percent
of what the US bought from Brazil in 1957. In past talks with the
USSR, Brazil has expressed concern that Moscow might resell
large quantities of coffee, and Brazilian officials have insisted
that any large sale would have to be accompanied by a firm
guarantee against re-export. Several of the East European satel-
lites are currently negotiating independently with Brazil concern-
ing coffee purchases. The Soviet offer therefore probably does
not reflect a plan to purchase for the entire b1o9
c
th
Brazil in early June shipped 17,000 bags of coffee to e
USS --its first direct shipment since the war--
further coffee transactions will be
scrutinized carefully, particularly if barter is involved. A small-
scale cocoa-for-oil barter deal concluded last October encountered
several snags over payments arranzements
CONFIDENTIAL
16 June 59
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COTFIDENTIAL AL-
THE PRESIST
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
-GONRDENTTAT
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