CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003500120001-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 12, 2016
• Document Release Date: May 6, 2002
• Sequence Number: 1
• Publication Date: February 14, 1958
• Content Type: REPORT

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14 February 1958
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CENTRAL INTELLIGENCE BULLETIN
CENTRAL BULLETIN
INTELLIGENCE
14 February 1958
DAILY BRIEF
DAILY BRIEF
I. THE COMMUNIST BLOC
a campaign.
Communist China:. Peiping's current move to
"break f he dead ock" in the Korean situation: suggests
that Peiping is launching a new diplomatic offensive
which the British Foreign Office thinks may be aimed
at Chinese Communist participation in summit talks or
a heads-of-government conference on Asian affairs.
Chou En-tai's relinquishment of the Foreign Ministry
post, which involved time-consuming representational
functions, will enable him to devote more time to such
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DAILY BRIEF
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II. ASIA-AFRICA
Iraqi-Jordanian union: Iraqi and Jordanian dele-
gations in Amman are working fairly smoothly on plans
for federation of the two countries after a compromise
agreement which in effect postpones for about 18 months
a Jordanian demand that Iraq leave the Baghdad Pact.
Iraqi Crown Prince Abd al-Illah has gone to Amman to
join the discussions,. which he anticipates might last
several more days. The crown prince has confirmed
that pro-Western Nuri Said has been chosen as Iraq's
new prime minister to replace the present cabinet head.
On the basis of findings by its Watch Committee, the
Intelligence Advisory Committee concludes that a delib-
erate initiation of hostilities in the Middle East is unlikely
in the immediate future. Tensions in the Middle East, par-
ticularly in the Israeli-Syrian border area, continue to
create possibilities for serious incidents.
Tunisia- -Bourguiba's position: President Bourguiba,
despi a is inflammatory pu lic utterances, continues to
maintain order. The situation may, however, deteriorate
sharply. He is willing to negotiate with France, but it is
clear that he will insist not only on the early withdrawal of
French troops from Tunisia but also on working out new
arrangements- -possibly under NATO auspices but exclud-
ing France--for the base at Bizerte. Bourguiba apparent-
ly hopes that the Sakiet Pidi. Youssef bombing can be used
to develop a solution of the larger AILY an problem.
pprove or ease - -
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Soani,h defense perimeters
estabttshe& at these points
in Der a iter.
AMW of liberating concen-
trations reported in
January.
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Cyprus: The Anglo-Greek talks in Athens have ended,
apparently with little progress toward a solution. During
the last week of January inconclusive conversations were M
held between British and Turkish officials in Ankara, A
status report on the Cyprus problem is expected to be made
-41
soon in the. British Parliament. The Greek Cypriot under-
ground organization has repeatedly warned that it intends
to resort again to violence. 2
Spanish West Africa: The operation against West
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Sahara uerri as is progressing satisfactorily,
The re orts of this o ra-
aion remain uncorro ora e
Indonesia: Dissident forces of Lt. Col. Hussein in
Centra umatra have occupied the airfield at Padang,
the provincial capital. The air force detachment at
Padang, which has been loyal to the central government,
was disarmed without opposition.
F
On the basis of findings by its Watch Committee, the
intelligence Advisory Committee concludes that there is.
no evidence of Sino-Soviet intention to become militarily
involved in the Indonesian situation, Continued failure to
resolve the basic differences between the central govern-.
ment and the dissident leaders could lead to disorders and
thus to a situation even more favorable to the Communists
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The Philippines. The Garcia administration is ap-
parat~t y considering how to put pressure on the United
States for additional financial aid to redress the country's
increasing economic problems. Fiscal measures which
would require American support and threats of a more
neutralist foreign olic may be contemplated,
2
.14 Feb 58
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III. THE WEST
HEMEMEM
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Tunisia Frencoi UN aspects: France's note to
,oggm\~sm
Tunisia takes a strong line, asking for new negotiations o-
I on outstanding difficulties but making such negotiations
'
s refraining from provocative meas-
contingent on Tunisia
such as interference with the "normal activities" of
ures
French troops in Tunisia. In the UN, where a Security
Council meeting on Tunisia will probably be held early
next week, France plans a more conciliatory approach
ities and which includes
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working out plans for French-Tunisian cooperation to
prevent further border incidents. France will, however,,
refuse to discuss the internal Algerian problem. The
British UN delegation wants Hammarskjold to explore
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I. THE COMMUNIST BLOC
British See New Chinese Communist Diplomatic Offensive
The British Foreign Office believes Chou En-lai, in
relinquishing his post as -foreign minister, will now be
free to. concentrate on managing a new diplomatic offen-
sive which may be intended to gain Chinese Communist
participation in summit talks or a heads-of-government
conference on Asian affairs. The Foreign Office sees
Peiping's current proposal to "break the deadlock" in
Korea as a strong indication that the Chinese have em-
barked on such a campaign. The Chinese have circulated
texts of this proposal to UN members with forces in Ko-
rea urging the withdrawal of all foreign troops and ask-
ing for early Korean reunification.
In its proposals for a summit conference, Moscow
has left open the possibility of later insisting on the in-
clusion of China. This could also serve as a bargaining
tactic to dissuade the West from insisting that German
reunification and the East European satellites should be
discussed. The Chinese, meanwhile, appear to be ac- .
tively laying the groundwork for a potential role in the
talks. One of Peiping's chief spokesmen, speaking in
a quasi-official capacity, recently declared his "hope"
that Peiping. would join in heads-of-government talks.
Chou was less specific on 10 February, when he as-
serted the regime was prepared to make "positive ef-
forts" and "assume corresponding obligations" in this
regard. Chou has endorsed Nehru's belief that the Near
East and Asia, as well as Europe, should be atom-free,
and has urged the inclusion of Egypt and other neutrals
in a summit conference.
Approv
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II. ASIA-AFRICA
i
Iraqi-Jordanian Union
Apparent agreement has been reached between Iraq
and Jordan on a federal union of the two states. In re-
sponse to a Jordanian demand, Iraq has agreed to re-
examine its membership in the Baghdad Pact next year,
provided the union is a going proposition at that time.
Jordan's Hussaynfavors.a"loose confederation" of
the two countries, while Faysal hopes for a "close fed-
eration." Iraqi Crown Prince Abd al-Illah has arrived
in Amman to help settle points of difference.
Present thinking of the Iraqi delegation envisions
a union in which FaysalandHussayn:both retain their
thrones. The military and foreign services are to be
integrated. Iraq is to provide Jordan immediately with
the equivalent of $8,740,000 in economic assistance and
the US is expected to continue its financial support of
Jordan. To achieve maximum propaganda impact, an-
nouncement of the federation is to be made before the
21 February plebiscite on Egyptian-Syrian union.
Both governments have requested the good offices
of the US to point out to King Saud, the benefits of Saudi
adherence. They see little prospect. of Saud's joining in
the immediate future, and would be satisfied if he is
noncommittal.
In anticipation of an adverse reaction to union in
Iraq, the crown prince has asked Nuri Said to form a
new government. Nuri has agreed to present a cab-
inet shortly after 18 February. This delay is probably
due to the desire to wait until after the federation is an-
nounced because of Nuni's unpopularity and identification
with the Baghdad Pact.
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The Tunisian Situation
President Bourguiba, despite his provocatory ut-
terances regarding the withdrawal of French troops
from Tunisia, including the Bizerte base, continues to
keep a tight rein on the local situation. Some outlets
for public indignation are permitted, and no serious
incidents have occurred. Rumors- -bolstered by public
threats by Bourguiba--that the Tunisian Government is
cutting off supplies, as well as communications, from
French troops confined to their bases, are denied by
Tunisian officials, who informed Ambassador Jones that
the government had taken steps to assure the provision-
ing of French military personnel. The situation, how-
ever, may deteriorate sharply in view of the heightened
tension.
Bourguiba indicates a general willingness to nego-
tiate with France. Nevertheless, he is unlikely to modify
his demand that France pull out all troops, a position he
has maintained since July 1956. Although now insisting
that France also relinquish the Bizerte base, he has.in-
dicated. France might remain at the base
until the end of and, in, the interim, arrangements could
be worked out to put the base at the disposal of NATO.
While Bourguiba prefers a settlement of.'-the issue
outside the United Nations, he has ordered. his delegation
to press for Security Council action, and the council may
take up the problem early next week. Meanwhile, he is
attempting to preserve as wide a field as possible to ma-
neuver in the UN and may also hope that the bombing in-
cident proves to be the turning point in an Algerian set-
tlement.
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Philippines May Plan Pressure Tactics to Obtain
Increased American ATT_
he Garcia administration is considering measures
o apply pressure on the United States for increased as-
sistance to bail the country out of its economic difficul-
ties.
Some vacillation in enforcement of the new austerity
program- -designed to halt a foreign exchange crisis--
has raised fears that the economic situation may be al-
lowed to drift in order to persuade the United States to
finance an exchange stabilization fund. There are signs
that Garcia may adopt early peso devaluation and the
lifting of some exchange controls and that he may be en-
couraging the resignation of Central Bank Governor
Cuaderno, the major exponent of a "hard money" policy.
Renewed criticism of American policies as it lever
for American concessions may be foreshadowed by re-
ports that Garcia has been consulting ultranationalist
Senator Recto and will probably elevate to cabinet rank
Under Secretary of Justice Barrera, a Recto follower
and a major obstructionist to a settlement of issues af-
facting American bases.
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III. THE WEST
French Note to Tunisia
France'slnote to?'Tunisia, as outlined by French For-
eign Minister Pineau to Ambassador Houghton on 12 Feb-
ruary, reiterates Paris' readiness to re-establish friend-
ly relations, provided Tunis refrains from measures which
would increase present tension. It specifies that French
troops in Tunisia must be permitted to carry on their "nor-
mal activities.," and Pineau stressed that provisioning of
the troops was "the most immediate explosive problem."
Pineau told Ambassador Houghton that France will
continue to insist the internal Algerian problem must not
be broughtintb UN Security Council discussions. Accord-
ing to Pineau, France, will recognize the principle of. in-
demnities to civilian victims of the recent bombing, but
will insist that the case be considered in the context Of
other frontier incidents.
Pineau suggested border security might be improved
if a no-man's land were established along the Algerian-
Tunisian frontier. He mentioned also the possibility of
a joint French-Tunisian inspection organization, and
added his personal view that a neutral might head such
a commission. This may be a step toward a solution on
the basis of a recommend .tion by the. British UN. delega-
tion for a resolution calling on the secretary general to
explore with the French and Tunisians the possibility of
establishing some form of border patrol.
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DISTRIBUTION
THE PRESIDENT
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 Mobilization
Special Assistant for Security Operations Coordination
Operations Coordinating Board
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Deputy Under Secretary for Political Affairs
The Deputy Under Secretary for Administration
The Deputy Under Secretary for Economic Affairs
The Counselor
Director, International Cooperation Administration
Director of Intelligence and Research
The Department of Defense
The Secretary of Defense
The Deputy Secretary of Defense
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
Deputy Director for Intelligence, The Joint Staff
Assistant Chief of Staff, 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
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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 Approve
CENTRAL INTELLIGENCE BULLETIN
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14 February 1958
DAILY BRIEF
1. THE COMMUNIST BLOC
. Communist China: Peiping's current move, to
"break the deadlock" in the Korean sittio :suggests
that Peiping is launching a new dpi lotiatic offensive
which the British Foreign O +e thinks may be aimed
at Chinese Communis icipation in summit talks or
a heads-of-gover nt conference on Asian affairs.
Chou En-lai) r ishment of the Foreign Ministry
post, whjz, 1-i involved time-consuming representational
fun ns, will enable him to devote more time to such
campaign. F__ I
basis of by its Watch Committee, the
Intelligence Advisory Committee concludes that a delib-
erate initiation of hostilities in the Middle East is unlikely
in the immediate future. Tensions in the Middle "East, par-
ticularly in the Israeli-Syrian border area, continue to
create possibilities for serious incidents
Bag siy its Watch Committeethe
Intelligence Advisory Committee concludes that there is
no evidence of Sino-Soviet intention to become militarily
involved in.the Indonesian situation. Continued failure to
resolve the basic differences between the central govern-
ment and the dissident leaders could lead to disorders and
to 2deed t ee i2IOi : iC~hAeF ~bY? I~~CU i A~ @9-9
on Java.
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IEEE,