CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003500300001-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 15, 2016
• Document Release Date: March 22, 2004
• Sequence Number: 1
• Publication Date: January 8, 1958
• Content Type: REPORT

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CURRENT
INTELLIGENCE
BULLETIN
8 January 1958
Copy No. 1.4 3
AUIH: H", DATE /!-REVIEWER:
OFFICE OF CURRENT INTELLIGENCE
CENTRAL INTELLIGENCE AGENCY
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State Dept. review completed
ii
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CONTENTS
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`1J If)
PROBABLY UNTRUE
1. REPORT OF SOVIET LAUNCHING OF MANNED ROCKET
2. PEIPING SHIFTS TO HARSHER POLICY IN TIBET
he 4. USAF PILOT MAY BE DOWN IN ALBANIA
5. USSR PRESSES INDONESIA TO ACCEPT ARMS AND
ECONOMIC AID
6. ARMY AND POLITICAL MODERATES MOVING TO EXPLOIT
7. DUTCH WARSHIPS BASED IN SINGAPORE MAY EMBARRASS
BRITISH
Q' 8. INTERNAL STRUGGLES IN SYRIA
N -e- 9. ADENAUER ADVISERS URGE REJECTION OF RAPACIU
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10. URUGUAYAN OFFICIALS BLAME US FOR ECONOMIC
PLIGHT
0-/j" 11. PANAMA MAY PRESS CANAL CLAIMS
12. ITALIANS CONCERNED OVER SOVIET AID OFFERS AT
CAIRO CONFERENCE
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1. REPORT OF SOVIET LAUNCHING OF MANNED
ROCKET PROBABLY UNTRUE
spokesman for the
Soviet Academy of Science laughed off
the report with the comment that "It
must be based on the Sputnik film:'
An official in the State Committee for
Cultural Relations said, "If the report
were true, it would be in the Soviet
press:' TASS has denied any knowledge
of such a launching.
The reports may have been based on a
Moscow broadcast on 5 January of a fictional report "from
the not-too-distant future" of the launching of a manned satel-
lite.
The USSR claims to have launched rock-
ets containing dogs to altitudes ranging up to 130 nautical miles,
recovering the animals by parachute. Accomplishing a similar
feat with a man, which would require a larger. rocket and more
equipment, is probably within current Soviet capabilities.
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2. PEIPING SHIFTS TO HARSHER POLICY IN TIBET
The Chinese Communists are taking
a more aggressive attitude toward
Tibetan officials and plan large-scale
arrests of resistance leaders in Lhasa,
Active resistance to Chinese rule has
thus far been confined to eastern Tibet, where harassment of
Chinese Communist work teams and road traffic has been go-
ing on for more than a year. However, potential resistance
groups may by now have moved as far west as Lhasa.
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4. USAF PILOT MAY BE DOWN IN ALBANIA
The Albanian radio announced on
7 January that an American air
force pilot in a jet trainer had vio-
lated Albanian air space and was
forced to land by Albanian fighters.
The aircraft is believed to be one missing since 23 Decem-
ber on a flight in the area.
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5. USSR PRESSES INDONESIA TO ACCEPT ARMS
AND ECONOMIC AID
The Soviet Union is putting "extreme
pressure" on Indonesia to accept
economic aid, military equipment,
and ships for the present emergency.
Indonesian Premier Djuanda told the American ambassador
in a "friend-to-friend" talk on 7 franuary that the early return
to Djakarta of the Soviet ambas ador, who interviewed the
premier on 6 January, was for this purpose. Conditions of
payment need not be arranged until after the arrival of the
equipment, according to Djuandaa
The USSR is able to provide arms on
short notice, and bloc vessels are able to meet Indonesia's
overseas shipping needs.
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6. ARMY AND POLITICAL MODERATES MOVING TO
EXPLOIT SUKARNO'S ABSENCE
Both the Indonesian Army and mod-
erate political elements appear to be
moving to take advantage of President
Sukarno's absence from Indonesia to
bring about changes in the government's
policies, if not in the government itself,
Their efforts seem aimed at decreasing
Communist influence and mollifying the
dissident regions. The army has ordered town commanders
to hold large-scale "security exercises" beginning on 9 Janu-
ary which would provide an ideal cover, if needed, for any
governmental changes that are contemplated.
Sukarno had barely departed before
Premier Djuanda called a cabinet meeting, attended by Chief
of Staff Nasution, to consider "trade relations" with the outer
islands. Nasution has also "summoned" a prominent leader
in East Indonesia to Djakarta to report on the local situation.
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Colonel Simbolon, former commander in
Sumatra and a leader among disaffected elements there, was
quoted on 6 January as having said the Communists had pressed
the Djakarta government into its "reckless" anti-Dutch campaign
and that Indonesia's independence was in jeopardy because of the
regime's leanings toward the Soviet bloc. Simbolon also said that
the non-Javanese areas were not willing to become "playthings of
the Communist- infiltrated central government:'
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7. DUTCH WARSHIPS BASED IN SINGAPORE MAY
EMBARRASS BRITISH
Popular resentment against the
British may erupt in Singapore,
Malaya, and Indonesia over the
continued use of Singapore port
facilities by Dutch warships,
particularly if there should be an
incident involving these ships.
Both the British governor and the
chief minister in Singapore are watching the situation
closely for adverse public reaction. The British have
economic interests in Indonesia, second to the Dutch in
value, which could be a target of retaliation.
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8. INTERNA
L STRUGGLES IN SYRIA
The behind-the -scenes struggle in
Syria is sharpening despite the ap-
parent belief of Baath leaders that
a public showdown with local Com-
munists should be delayed temporar-
ily for tactical reasons. The Baathist
press is now attempting toortray the
Communists as opponents of Arab unity,
a charge equivalent to treason in the
Arab popular mind.
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9. ADENAUER ADVISERS URGE REJECTION OF
RAPACKI PLAN
The West German Foreign Ministry
is advising Chancellor Adenauer to
reject Polish Foreign Minister Rapacki's
plan for an atom-free zone in central
Europe. The ministry stresses that no consideration should
be given any European security arrangement except in the con-
text of German unification. The ministry has also formulated
certain questions for Adenauer's use in talks with the Soviet
ambassador concerning control and inspection under the
Rapacki plan.
Bonn has consistently opposed plans for
neutral belts in central Europe, either political or military,
which would tend to confirm the division of Germany. In ad-
dition, Bonn would probably refuse to discuss any plan which
presumes government-level negotiations between East and
West Germany. In public statements, however, Bonn has
shown some interest in such proposals in order not to prejudice
the diplomatic conversations it will propose in its answer to
Bulganin's note. The government is also reluctant to appear
"inflexible" in the face of increasing German public interest
in East-West talks.
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10. URUGUAYAN OFFICIALS BLAME US FOR
ECONOMIC PLIGHT
High Uruguayan Government officials
are again becoming resentful of Amer-
ican economic policies and are claiming
that these policies are responsible for
he deterioration of Uruguay's economy,
Two large American-owned meat-packing
plants which supplied a major part of Uruguay's meat exports
closed recently because government regulations and the lag in
government subsidies had crippled their operations. As has
been the case when government intervention in the economy
crippled other industries, the government is being criticized
for mismanagement, while the Communists blame "American
policy." Facing election in the fall, government officials are
also tending to blame the United States for Uruguay's difficult
economic situation.
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11. PANAMA MAY PRESS CANAL CLAIMS
Popular pressures are again building
up in Panama for a greater financial
return from operations of the Panama
Canal. High Panamanian officials are
discussing a proposal recently made by the vice foreign min-
ister that Panama demand 50 percent of the gross receipts
from the canal, which were approximately $50,000,000 in
1957. Foreign Minister Boyd, who renewed Panamanian
claims to sovereignty in the Canal Zone during the 1956 Suez
crisis, has indicated his approval of the idea and may seek
to use Panama's seat on the UN Security Council to bring it
to world attention.
Moderate President de la Guardia has
called the proposal unrealistic, and his attitude is likely to
deter serious attempts to encroach on the US position in the
Canal Zone in the immediate future. The issue has been ex-
ploited by ambitious Panamanian politicians in the past, how-
ever, and may be used to weaken de la Guardia's influence.
Under the Remon-Eisenhower Treaty
of 1955, the annual payment to Panama for the use of the Ca-
nal Zone was raised to $1,930,000 per year, over 50 percent
of the 1957 net profit of the canal operations. In addition,
Panama receives approximately $25,000,000 through zone sal-
aries to its nationals and canal company and US employee pur-
chases. The United States spends an estimated $50,000,000
annually to defend the zone.
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12. ITALIANS CONCERNED OVER SOVIET AID OFFERS
AT CAIRO CONFERENCE
An Italian Foreign Ministry study
maintains that the West has "sadly
underestimated" the impact in Asia
and Africa of the USSR's offers of un-
conditional economic aid to all underdeveloped countries,
made at the Afro-Asian solidarity conference in Cairo.
The ministry believes it would be a grave mistake for the
West to respond now by trying to outbid the Communist of-
fers; and thus fall into the "blackmail game, which was
the aim of the conference organizers." As a result, Italy
has suspended plans for an early presentation to the OEEC
of the Pella Plan to finance Middle East development pro-
grams with repayments due in Marshall Plan aid.
Instead, the ministry proposes creation
of an OEEC working party to investigate ways of neutraliz-
ing Soviet economic penetration of underdeveloped countries.
The ministry study also showed`: irritation at the failure of
other Western governments to give full support to the Pella
Plan and complained that the Paris NATO meeting diverted
attention from urgent Middle East problems.
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