CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A003600040001-7
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: November 19, 2002
• Sequence Number: 1
• Publication Date: March 5, 1958
• Content Type: REPORT

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5 March 1958
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CENTRAL INTELLIGENCE BULLETIN
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5 March 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
Korean airliner issue: North Korea has declared
that the passengers of the hijacked South Korean airliner
who wish to be returned will be delivered at Panmunjom
on 6 March. Pyongyang seems intent on maintaining the
facade of government-to-government arrangements and
has proposed that representatives of the American and
West German governments be present when the passen-
gers are freed, although it has announced readiness to
accept representatives of the South Korean Red Cross.
This latest Communist initiative may reflect some anxiety
to effect an early release of the passengers, whose kidnap-
ing distracted attention from Peipin Is recent promise to
withdraw its troops from Korea.
Communist China Ceylon: Communist China's
$10,0' ow-in :eren-year loan to Ceylon for
flood rehabilitation follows closely the conclusion of a
Soviet $30,000,000 long-term loan which also included
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relief funds. The S:ino-Soviet bloc has given credits and
grants worth $00,000,000 since it began its aid offensive
in Ceylon last September.
II. ASIA-AFRICA
Egypt-Jordan: The first violence stemming from
Nasir's vehement propaganda campaign against the Jor
danian Government occurred on 3 March, when a progov-
ernment newspaper's presses were blown up in Jordanian
Jerusalem. Further antigovernment violence in the West
Jordan area is likely.
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5 Mar 58
DAILY BRIEF
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Tunisian situation: Influential l Tunisian newspapers
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EN,
NEEN
Morocco. The Rabat government, fearing a French
military build-up in Morocco, has again requested. that the
United States prevent France from bringing large quanti-
ties of materiel into Morocco via the American air bases,
particularly the naval air facility at Port Lyautey. While
aware that these bases are under joint US-French control, the Moroccan Government fears this legal distinction may
be lost on an aroused. Moroccan public. An earlier request
occurred in the fall of 1956 when France used its facilities
on the Port Lyautey base to circumvent a Moroccan closure
of other Moroccan ports.
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India: India has received, a firm offer from Rumania
to finance and construct one of two government-owned re-
fineries soon to be built. New Delhi will entertain other
offers, but the Indian Ministry of Steel, Mines, and Fuel is
apparently favorably inclined toward the Rumanian offer.
It considers Rumanian competence high and the prospect of
quick action good. Acceptance would expand Soviet bloc in-
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fluence in the basic Indian steel, coal, and oil industries,
where considerable bloc interest already centers.
luml,
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indicate impatience and suspicion of the "good offices"
efforts. Meanwhile, a representative of the International
Red Cross is convinced that Algerian refugees, entering
Tunisia from the border area where France plans to create
a "no man's land," are telling atrocity stories which are
generally authentic even if exaggerated.
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Tunisian Situation Remains Tense
The two most influential French-language news-
papers in Tunisia reflect impatience and suspicion on
the part of many Tunisians toward. the "good offices"
mission. One paper says the people are waiting impa-
tiently for results of the Murphy mission's efforts. The
other comments that "silence, mystery, and the slow-
ness of American secret diplomacy are leading to con-
fusion:' Ambassador Jones reports that President
Bourguiba, who declined to comment on the "good of-
fices" in his 27 February radio speech, has created a
public opinion problem with his people, who are used to
being told how to react to important situations. The
Tunisian Government also is concerned about the upsurge
of activity on the part of followers of Salah ben Youssef,
the exiled rival of Bourguiba, and has arrested some 30
persons?
An International Red Cross representative has in-
spected the Tunisian border area where Algerians--some
7,000; -are fleeing the pro-
jected "no man's and" and are taxing relief operations.
The representative,, who declined to estimate the number
of such refugees, held interviews with some 30 Algerians
who reported "barbarism" by French paratroopers, ran-
dom executions, and wholesale destruction of property.
He claims to be personally convinced of the "general au-
thenticity, if exaggeration, of these reports:'
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Rabat Asks US to Curtail French Tse of American Bases.
Morocco
The Moroccan Government, fearing that France may
attempt a military build-up, has again asked the United
States to keep France from bringing in large quantities of
materiel via the naval air facility of Port Lyautey. On 30
November 1956, Rabat had protested to both the United
States and France over French stockpiling of materiel at
Port Lyautey, an action described as an "unacceptable
affront to Moroccan sovereignty,"
An official of the Moroccan Foreign Ministry informed
the American Embassy on 2 March that approximately 22
carloads of French military equipment, including several
tanks and half tracks, were off-loaded at Port Lyautey
during the night of 27. February. He believed: this equip-
ment. ultimately would be used against irregular Moroccan
forces in "the south." He added that a considerable amount
of clandestine activ&ty appeared to be going on at Port
Lyautey and this was causing his government concern.
While he recognized that American bases in. Morocco
are jointly commanded and operated with.France, he pointed
out that they were commonly considered to be American.
Their use for the supply of French forces, therefore, made
an extremely bad impression on public opinion and compli-
cated Moroccan-US air base negotiations.
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India Receives Rumanian Offer to Finance and. Build.
New Oil Refinery
The Indian Government, which is engaged in devel-
oping oil resources in the northeastern part of the coun-
try, is attracted by
a recent firm offer from Rumania to builcl. a small refinery
in Assam under a long-term, low-interest loan. The size
of the refinery indicates that a loan of $8,000,000 to
$10,000,000 probably is involved.
New Delhi in January signed a contract with the British-
owned Burmah Oil Company giving the Indian Government a
one-third interest in a $100,000,000 joint company formed
to exploit oil deposits in Assam. The government plans to
build. one refinery in Assam and one in Bihar, the latter con-
nected to the Assarese oil fields by a pipeline,
All four existing oil refineries in India are owned and
operated by Western companies, and British interests have
provided a sterling loan equivalent to $28,000,000 to finance
construction of the proposed. new pipeline. The Indian Gov-
ernment presumably will entertain other Western offers for
refinery construction, but the Ministry of Steel, Mines, and
Fuel apparently favors acceptance of the Rumanian approach.
Soviet bloc influence in India's developing heavy industry
is already considerable. The USSR has provided $132,000,000
for the Bhilai steel mill, $126,000,000 toward. a heavy machine
tool building complex, and has offered $25,000,000 to the phar-
maceutical industry. It has also assisted in oil exploration.
Czechoslovakia is providing about $33,000,000 for a foundry-
forge project.
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Fig
CENTRAL INTELLIGENCE BULLETIN
5 March 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
25X1
Korean airliner issue: North Korea has declared
that the passengers of the hijacked South Korean airliner
who wish to be returned will be delivered at Panmunjom
on 6 March. Pyongyang seems intent on maintaining the
facade of government-to-government arrangements and
has proposed. that representatives of the American and
West German governments be present when the passen-
gers are freed, although it has announced readiness to
accept representatives of the South Korean Red Cross.
This latest Communist initiative may reflect some anxiety
to effect an early release of the passengers, whose kidnap-
ing distracted attention from Peiping's recent promise to
withdraw its troops from Korea.
Communist China - Ceylon: Communist China's
$10,500;000 ow-m eres ten-year loan to Ceylon for
flood rehabilitation follows closely the conclusion of a NEWS
Soviet 30 000 000 long-term loan which also included_
DeUer uus. The Si-no-Soviet bloc has given credits and,
grants worth $00,000,000 since it began its aid offensive
in Ceylon last September. 25X1A
apt-Jordan: The first violence stemming from
Nasir's vehement propaganda campaign against the Jor-
danian Government occurred on 3 March, when a progov-
ernment newspaper's presses were blown up in Jordanian 25X' A
JQ'usalem.. Further antigovernment violence in the
eorcan area is likely.
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