CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A004200170001-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 12, 2016
• Document Release Date: April 1, 2002
• Sequence Number: 1
• Publication Date: December 22, 1958
• Content Type: REPORT

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22 December 1958
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CENTRAL INTELLIGENCE BULLETIN
22 December 1958
DAILY BRIEF
1. THE COMMUNIST BLOC
Syria: The Syrian economy, badly shaken by the afteref-
fects oast summer's Lebanese crises and more recently by
the UAR Government's land reform program, is experiencing a
severe flight of capital. In an effort to restore confidence, the
government has appealed to the people to ignore rumors "spread
by evil-minded people." This announcement, however, probably
will have the effect of increasing the demand for foreign cur-
renciesa F_ I 25X1
in - -reportedly died on 15 December of undetermined causes,
*Yemen: The ailing Imam of Yemen--target of recurrent
I Men of Crown Prince Badr's bodyguard
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are said to have begun to arrest officials opposed to the Prince.
Badr reportedly intends to suppress word of the Imam's death
until he has made s to intimidate those who op-
pose his succession.
but if it is true, serious unrest would prob-
ably follow in Yemen.
Crown Prince Badr, who has sought to strengthen his po-
sition by promoting close relations with the UAR and the Sino-
Soviet bloc, has not been friendly to the US.
j
III. THE WEST
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22 Dec 58 DAILY BRIEF ii
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Syrian Economic Situation
There has been a heavy flight of capital from Syria, whose
economy was badly shaken by the economic effects of last sum-
mer's Lebanese crises and more recently by the UAR Govern-
ment's land reform program. Syrian Central Bank foreign ex-
change holdings, which fell 70 percent from January to July, are
now apparently at the lowest level since 1951. In an effort to
restore confidence in the currency, the Ministry of Economy
issued a communique castigating "rumors spread by evil-minded
people which have led people to rush to purchase foreign cur-
rency on the free market:' The announcement probably will
have the effect, however, of stimulating further sales of Syrian
pounds for stable Western currencies. The government's an-
nouncement admitting the existence of the exchange drain.: in-
dicates the Syrian authorities view the situation as extremely
serious.
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ready have exceeded the level reached during the Suez crisis.
In Aleppo, the center of Syrian business life, the middle class
and the business community are attempting to salvage what re-
mains of their personal fortunes by converting assets and send-
ing them out of the country.
Unemployment also apparently is reaching record propor-
tions, although reliable statistics are lacking. In recent weeks,
business firms and government organizations posting job open-
ings have been deluged by thousands of applicants for each va-
cancy.
A poor agricultural crop and large unsold stocks of cotton
have contributed to the general economic stagnation. An impend-
ing reform, unifying Syrian and Egyptian currency, is further
dampening economic activity. While the situation has not yet
reached crisis proportions, implementation of the land reforms
and the approach of the currency union could result in harsh re-
strictive government controls over Syria's heretofore free-
enterprise economy. The result could well be a rapid prolif-
eration of government management at all levels of economic ac-
tivity.
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