CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A005900080001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 18
• Document Creation Date: December 15, 2016
• Document Release Date: February 12, 2003
• Sequence Number: 1
• Publication Date: August 18, 1961
• Content Type: REPORT

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18 August 1961
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18 August 1961
CENTRAL INTELLIGENCE BULLETIN
CONTENTS
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2.
France-Algeria: Paris apparently preparing to create
Moslem-dominated interim government in attempt to
break stalemate. (Page it)
3. Communist China: Further information on changes in
commune system. (Page tit)
5. India - Communist China: New Delhi planning to strengthen
defenses along border by fall. (Page t v)
6. UAR: Comment on 16 August government reorganization.
(Page t v)
9. Chile: Government interested in sale to USSR of 60,000 tons
of copper per year for four years. (Page vt)
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France -Algeria., Paris apparently is seriously prepar-
ing to create a Moslem- dominated "provisional Algerian ex-
ecutive" or interim government in an effort to break the
present stalemate over Algeria by a means short of De Gaulle's
last-resort threat of partition. This measure may be taken
in mid-September when the Delegation Generale, the central
French administration for Algeria, is to be transferred 25
miles east of Algiers to the new administrative center at
Rocher-Noir, and thus insulated from the capital's political
tensions. I 'First- string' I Moslem leaders have refused to
serve on the executive, but the mayors of several secondary
cities are said to have agreed. De Gaulle must move gingerly,
however, because of continuing concern over the adverse re-
action such a move might produce among the French military.
French officials in Algiers appear hopeful that the rebel
Provisional Algerian Government (PAG) would not oppose the
move flatly but would tacitly accept it as a useful device for
the transition period prior to complete PAG control of Algeria.
The PAG, though insistent that it is the sole representative of
the Algerian people, has indicated that it would join with other
Algerian elements, Moslem and European, in a provisional
18 Aug 61
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 O%/
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ever, the PAG could be expected to oppose the move and
mount terrorist attacks on members of the interim govern--
governmentduring a transition period. If the. composition
of the executive were not worked out with the PAG, or the
authority of the executive did not encompass the Sahara, how-
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ership of land, tools, and draft animals reportedly has been
transferred to the smallest farm units in some locales. This
development, plus a reference on 4 August in Peiping's Peo-
ple's Daily to the re-establishment of "supply and marketing
cooperatives," implies a return .to the concept of rural coop-
eratives, the more loosely collectivized agricultural units of
Commune inao -
ments in Communist hina's commune system confirms that
the system is continuing to undergo major changes, as the
regime strives to bolster lagging farm output. Not only have
production groups been broken up into smaller units, but own-
the mid=1950so
18 Aug 61
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COMMUNIST CHINA - INDIA BORDER AREA
STATUTE MILES
I
6;00
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China
r'Bhutan`'-;
istan
SAY- t F ENGA
6108182 31373
18 Aug 61 CENTRAL INTELLIGENCE BULLETIN Map Page
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India ? Communist China: New Delhi's contingency plan-
ning for the defense of the northeastern sector of India's bor-
der with Communist China continues-to call for the strength-
ening of army units in the Sikkim, Assam, and northern West
Bengal areas. A division headquarters has reportedly been
established immediately south of Sikkim to improve opera-
tional control over units charged with Sikkim's defense. Indian
military planners have apparently established the fall as the
deadline in their efforts to plug the gaps in the country's north-
eastern defenses. The planners are being spurred on.by con-
tinuing=-probably exaggerated- reports of Chinese military
activities and overflights in the Sikkim-Tibet border -re -
(M
social and economic
of "Arab socialism."
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security chief, Abd al-Hamid Sarraj, has been made UAR vice
president for internal affairs. The vice-presidential duties
and those of the 36 ministers are as yet poorly defined, but
heavy emphasis probably will be placed on executing the recent
Damascus. There appears. to have been no major shakeup
of personnel in the reorganization, and the leading figures of
the Nasir regime still retain key positions. Nasir's Syrian
UAR: The reorganization o. the c appoin
ment of seven vice presidents by President Nasir on 16 Augus
appear at least partially designed to give Cairo greater cen-
tralized control over both the Egyptian and Syrian regions.
The cabinet will reportedly be located in Cairo, as will the
separate executive councils previously seated in Cairo and 25X1
18 Aug 61
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Chile: The conservative government of President Ales-
sandri plans to ask the two major copper companies in Chile--
which are American-owned--to agree to its selling to the
USSR 60,000 tons of copper a year for four years, according
to an official of one of the companies. The sale would equal
about 10 percent of Chile's copper production. The Soviet
price is said to be one-half cent per pound above the world
market price. Rightist groups, in Chile have recently alleged
that the Alliance for Progress would be unnecessary' as far
as Chile is concerned if the US would pay a.fair price for
25X1 Chilean copper. F77 I
SELECTED INTELLIGENCE
REPORTS AND ESTIMATES
(Available during the preceding week)
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Prospects. for North and South Vietnam: political and eco-
nomic situation; Communist threat to South Vietnam, including
both DRV pressure and insurgent activity of the Viet Cong; out-
look for the struggle in the GVN. U.S.I.B. NIE 14.3/53-61.
Aug 1516 1.
Stability of East Germany in a Berlin crisis: ability of. the
regime to maintain domestic order; possibility of antiregime
action; and capability of the military forces. U.S.I.B. SNIE
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Vulnerability of the East German economy to Western coun-
termeasures, suppl.: nature and effectiveness of measures taken
by East Germany to reduce its vulnerability; decrease in West
Germany's importance as a supplier of NATO exports; recent
changes in dependence on imports of selected commodities and
on West German and NATO transport services. Tables. E.I.C.
Economic Intelligence Report EIC R18-52. 20pp. Aug' 61. I
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Further Retreat From the Commune System
In Communist China
In mid-1959, control over the land, manpower, and tools
in rural China passed from the commune to the production
brigade, the farm unit equivalent in size and function to the
commune's predecessor, the agricultural producer coopera-
tive. This was the regime's first major retreat on collectivi-
zation. Reports now being received indicate that control has
been transferred from the brigade to the production team--the
smallest farm unit.
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Peiping's attempts to retain the illusion of a functioning
commune system which no longer has any reality have appar-
ently created organizational confusion in the countryside. Some
reports describe the allocation of farm land to individuals and
groups of workers; the press has in one case termed production
teams too large for efficient management of actual field work and
in another said that "equal priority" must be given to production
on collective land and land owned by the peasants; and the organ-
izational changes on which detailed information is available are
noticeably lacking in standardization.
Reports of official moves to increase incentives in the coun-
tryside have also become more frequent. According to the Con-
sulate General in Hong Kong, there have been some increases in
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state prices for major farm products and numerous press ar-
ticles on the. distribution of "incentive grain" to peasants who
exceed their production targets. In 1960, specific grain rations
were distributed to peasants irrespective of their labor records.
These and other measures taken since the beginning of the
year reflect Peiping's urgent concern over agricultural produc-
tion, The regime apparently realizes that its agricultural
programs and organizations have only worked against its ef-
forts to boost crop output, but it appears to be at a loss for ac-
ceptable substitutes.
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Chile Apparently Plans Sale to USSR of Copper
From American Companies
Copper is usually in short supply within the bloc. Chile
has not made any direct copper sale to the Soviet Union in re-
cent years.
With 60,000 tons of copper worth nearly $40,000,000 at
current prices, the reported premium offered by the USSR
would equal about $650,000. Chile almost completed nego-
tiations with the USSR last January for a sale similar in
amount. At that time only the world market price was quoted,
however,, and US-owned companies were not involved. The
Chilean Government would obtain exclusively from the US-owned
companies the copper for the sale now proposed; 20,000 tons
refined in the United States would be included.
Chile's. first rightist government in over 20 years has re-
cently shown hostility toward private foreign investment. Of-
ficial statements in the past two months have revealed that new
mineral discoveries in northern Chile will probably be entrusted
to state enterprises rather than to private investment; these
statements have implied that American-owned copper com-
panies are exploiting the country and not meeting their obliga-
tions to the workers. This apparent shift in government policy
seems to stem chiefly from a rise in nationalism, frustration
over the lack of economic progress and national leadership,
rightist resentment of US endorsement of socio-economic re-
form as a condition for participation in the Alliance for Prog-
ress, and heightened interparty rivalry,
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THE PRESIDENT
The Vice President
Executive Offices of the White House
Special Counsel to the President
The Special Assistant for National Security Affairs
The Scientific Adviser to the President
The Director of the Budget
The Director, Office of Civil and Defense Mobilization
The Director, National Aeronautics and Space Administration
Chairman, Board of Consultants on Foreign Intelligence Activities
The Department of State
The Secretary of State
The Under Secretary of State
The Director, International Cooperation Administration
The Deputy Under Secretary of State for Political Affairs
The Deputy Under Secretary of State for Administration
The Counselor and Chairman of the Policy Planning Council
The Director of Intelligence and Research
The Treasury Department
The Secretary of the Treasury
The Under Secretary of the Treasury
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 Assistant Secretary of Defense (International Security Affairs)
The Assistant to Secretary of Defense (Special Operations)
The Chairman, The Joint Chiefs of Staff
Chief of Naval Operations, United States Navy
Chief of Staff, United States Air Force
Chief of Staff, United States Army
Commandant, United States Marine Corps
U.S. Rep., Military Committee and Standing Group, NATO
Supreme Allied Commander, Europe
Commander in Chief, Pacific
The Director, The Joint Staff
The Director for Intelligence, The Joint Staff
The Assistant Chief of Staff for Intelligence, Department of Army
The Director of Naval Intelligence, Department of Navy
The Assistant Chief of Staff, Intelligence, Department of the Air Force
The Department of Justice
The Attorney General
The Federal Bureau of Investigation
The Director
The Atomic Energy Commission
The Chairman
The National Security Agency
The Director
The United States Information Agency
The Director
The National Indications Center
The Director
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