CENTRAL INTELLIGENCE BULLETIN - 1958/09/25

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 02996635
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 20
• Document Creation Date: January 27, 2020
• Document Release Date: January 30, 2020
• Publication Date: September 25, 1958

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25 September 1958
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25 SEPTEMBER 1958
I. THE COMMUNIST BLOC
Taiwan Strait - Chinese Nationalists
send large numbers of aircraft over
mainland; Chinese Communist losses
apparently heaviest to date.
USSR offers Cambodia $12,500,000
long-term loan.
II. ASIA-AFRICA
Lebanon - Christian-Moslem violence
breaks out in Beirut.
Jprdan, UK agree to complete evacu-
ation of British troops by 31 October.
Saudi Arabia - Faysal complains
Aramco is indifferent to his financial
problems; hints at countermeasures
and possible relations with bloc.
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Cyprus - Turkey agrees to maneuver
reducing threat of widespread Cypriot
violence; Makarios compromise posi-
tion draws Greek and Cypriot opposi-
tion.
Ghana - Prime Minister Nkrumah
urging French colonies to vote for
independence in 28 September French
constitutional referendum.
III. THE WEST
Austrian recognition of Communist
China reported imminent.
LATE ITEM
0 Soviet space vehicle launched on 23
September may be transmitting sig-
nals from outer 7)ace.
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CENTRAL INTELLIGENCE BULLETIN
25 September 1958
DAILY BRIEF
I. THE COMMUNIST BLOC
*Tatwan Strait situation: The Chinese Nationalists
sent large numbers of aircraft, including photo reconnais-
sance planes, over the mainland on 23 and 24 September.
Communist jet fighters reacting to these penetrations ap-
parently suffered their heaviest losses to date on 24 Sep-
tember. No Nationalist losses were reported.
?age 1) (Map)
Watch Committee conclusion--Taiwan Strait: All in-
dications point to continued Chinese Communist efforts to
interdict supply lines to the Kinmen (Quemoy) Island group.
The Chinese Communists now possess a capability to
launch major attacks against the Kinmens,. the Matsus, and
smaller offshore islands with little or no warning, as well
as to launch major air strikes against Taiwan and the Peng-
hus (Pescadores). Seizure of one or more of the offshore is-
lands is possible, but amphibious lift necessary for an in-
vasion of Kinmen, Lieh Hsu (Little Quemoy) and Matsu has
not yet been observed.
Indications suggest that the Chinese Nationalists, fear-
ing US concessions in Warsaw talks, rand increasingly con-
cerned over the resupply of the Kinmens, might undertake
independent provocative action probably calculated to em-
broil the US in hostilities'. Individual pilots or flight lead-
ers might also take independent provocative action. In any
event, air clashes between Chinese Nationalist and Chinese
Communist forces are likely to continue and could involve
US forces.
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Available evidence fails to reveal that the USSR has
taken any measures which might reflect preparation to im-
plement the Soviet commitments to the defense of Commu-
nist China.
USSR-Cambodia: The USSR has offered the Cambo-
dian delegation, currently in Moscow seeking economic aid,
an interest-free, 40-year, $12,500,000 loan for purchases
of Soviet goods. The USSR, in keeping with its policy of
making only those economic development loans which prom-
ise long-term economic ties, refused to make an outright
gift, which the Cambodian negotiators apparently had re-
quested. The initial Cambodian response was unfavorable;
Phnom Penh his hithPrtn areentPri only ontriceht arante
II. ASIA-AFRICA
*Lebanon: President Shihab's appointment of rebel
leader Rashid ICarame as prime minister appears to be a
major concession to the rebels and to Nasir. The violence
on 24 September has seriously strained Christian-Mo4em
relations and is likely to be followed by further outbreaks.
There is danger that the security forces will also split along
confessional lines. Page 3)
Britain-Jordan: London and Amman have tentatively
agreed that British evacuation of Jordan will begin on 20
October and be completed by 31 October. Subject to a con-
tinuing examination of Nasiris actions, the two governments
plan a simultaneous announcement of these plans by 10 Octo-
ber. (Page 4)
25 Sept 58
DAILY BRIEF ii
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watcn committee -conclusion- nctbL: iuiuuu
a deliberate initiation of open hostilities in the Middle East
is unlikely in the immediate future, the situation remains
unstable throughout the area, particularly where US and UK
Interests or commitments are involved, and incidents and
I, coups could occur at any time.
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Saudi Arabia: Saudi Crown Prince Faysars frustration
with budgetary problems has led him to charge that the Ara-
bian-American Oil Company is indifferent to Saudi Arabia's
financial difficulties. Faysal, apparently reflecting the in-
fluence of his pro-Egyptian petroleum adviser, hinted to the
American ambassador that action to curtail Aramco's rights
may be under consideration. The ambassador also drew the
Inference that some recognition of the bloc is being considered.
Cyprus-Turkey: The threat of an early resumption of
widespread violence on Cyprus may have been eased by
Turkey's agreement to invest its consul general in Nicosia
with the functions of Turkish representative under the new
British plan, instead of naming a special ambassador as
originally proposed. Ankara warns of "serious trouble,"
however, if Archbishop Makarios is allowed to return to the
island, something London is now considering. Meanwhile,
Makariost new proposal for UN-guaranteed independence for
Cyprus is meeting opposition from within the Cyprus _e_th-.
narchy from leftist elements in Greece, and from Turkish
Cypriot leaders.
In Lebanon, Moslem-Christian strife has broken out
which may threaten the stability of the country, and incidents
could occur inVolving US forces.
The survival of the Jordanian regime continues to be
threatened. If the regime in Jordan collapses, action by
DAILY BRIEF iii
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Israel and other neighboring countries to take control of Jor-
danian territory is likely.
Within the Iraqi regime, growing instability, dissension,
and fragmentation offer increasing opportunities for local Com-
munist exploitation and action by Nasir to bring about an out-
come favorable to the UAR.
The formation of the provisional Algerian government
probably will cause an increase in fighting between French
forces and rebels in Algeria and could lead to an increase in
Incidents between French forces and those of Morocco and
Tunisia.
Ghana - French West Africa - UAR: Prime Minister
Nkrumah of Ghana, who has publicly stated his desire to see
Fiance's African territories opt for immediate independence
in the 28 September referendum, appears to be providing
support to extremist nationalist leaders in French
West Africa.
;;ir's colonial Africa.
Nkruma.h in some instances is prepared to abet President
designs in French
(Page 7) (Map)
III. THE WEST
Austria - Communist China: The secretary general of
the Austrian Foreign Ministry has told
his government will soon establish an embassy in Commu-
nist China. There has for some time been strong pressure in
Austria for a permanent trade mission in Peiping. Austrian
abstention in the 23 September UNGA vote on the Chinese re
resentati n resulted partly from Soviet pressure.
(Page 8)
25 Sept 58
DAILY BRIEF iv
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LATE ITEM
*Probable signals from Soviet space vehicle:
25 Sept 58
DAILY BRIEF
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I. THE COMMUNIST BLOC
Taiwan Strait Situation
The Chinese Nationalists stepped up their air activity
over the mainland on 23 and 24 September.
100 Nationalist aircraft penetrated the mainland
from five to forty nautical miles in the general Kinmen area
during one two-hour period around noon. From 100 to 150
Communist: jet fighters took to the air in reaction to the over-
flights and at least one clash occurred in which two and pos-
sibly three MIG's were downed.
Initial reports indicate that on 24 September the Na-
tionalists again put a large number of flights over and near
the mainland, mostly around and north of Foochow, includ-
ing photo reconnaissance missions. These penetrations were
engaged at several points by Communist fighters, and, at
last reports from the Nationalists, 11 MIG-17's (FRESCOES)
were shot down and another eight were listed as probables.
No Nationalist losses were reported. The Nationalists used
Sidewinder missiles in one engagement, scoring four kills
with five missiles launched.
Reports from Taiwan state that Nationalist transport
aircraft which made air drops on Kinmen during the night of
22 Spptember were not molested by Communist aircraft.
The Communists are estimated to have a ten to one
over-all artillery advantage in the Kinmen area and attempts
to improve Nationalist counterbattery fire have not yet been
successful. Four of six 8-inch howitzers landed on Kinmen
are immobilized and two are in position but not yet in action.
There are more signs that the Communists foresee
continued military operations in the strait area. High alti-
tude flak met by Nationalist aircraft suggests that the Commu-
nists have introduced 100-mm. antiaircraft guns into the
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area just north of Kinmen. There also are indications that
an advanced headquarters has been established at Liencheng
for the direction of all air operations in the area. Chinese
Communist air movements in the East China area during
the past week have been extensive,
iew fighter aircraft have recently
been deployed to the area from the Shanghai area. It is not
clear, however whether the Communists are rotating, add-
ing, or reorganizing units.
Since US naval forces began on 7 September to escort
Nationalist convoys to the three-mile limit, the resupply de-
liveries to Kinmeri by sea and air have averaged about 100
tone a day, As of 23 September, the Kinmen garrison had
on hand sufficient rations and ammunition�the two most im-
portant supply categories--to sustain it for slightly more
than a month, Increases in daily tonnage delivered could
extend this period. Increased Communist interdiction ef-
forts together with the increasingly bad weather from now
on could prevent any extension,
Peiping's 11th and 12th warnings, intended to docu-
ment ostensible Communist restraint and US military "pro-
vocations," were issued on 23 and 24 September, Althou,gh
US naval and air forces were said to have -"intruded" into
Communist China's territorial waters and air. again 'Owe
is no threat of counteraction.
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II. ASIA-AFRICA
Lebanese Situation
Lebanese President Shihab's appointment of Tripoli
rebel leader Rashid ICarame to head a cabinet composed
of minor political figures appears to be a major concession
to the rebels and to Nasir. The inclusion of several ac-
tive opposition supporters and the awarding to ICarame of
the portfolios of defense and interior is an almost total de-
feat for the pro- Chamoun faction. The fact that the Damas-
cus press on 23 September predicted the composition of the
present cabinet may give it a "made in Cairo" label and build
up pro- Chamoun and Phalangist opposition which might re-
suit in.eforts to bloc confirmation by parliament.
President Shihab has evaded responsibility for main-
tenance of the country's internal security by vesting it in
Kar ame ts hands. 'Caramel had appealed
to the UAR for additional funds.
The attacks by Christian Ph4langists on Moslems on
24 September are likely to result in retaliation by Moslems
against Christians. There is danger that the security forces
will split along confessional lines.
--SfeR-E-F
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British Plans for Evacuation From Jordan
Britain hopes to announce before 30 September that it
intends to evacuate its 3,200 troops from Jordan. According
to British Ambassador Tohnston in Amman, the British for-
eign secretary and the chief Jordanian UN delegate have agreed
that the evacuation will take place between 20 and 31 October
and that this schedule will be announced simultaneously by
London and Amman about 10 October.
According to Johnston, the schedule is subject to tan-
gible evidence of UAR President Nasir's good faith in carry-
ing out the 21 August UN General Assembly resolution endors-
ing the Arab League's pledge of mutual noninterference in in-
ternal affairs. In view of both British and Jordanian aware-
ness that Nasir has in fact continued his campaign against the
Jordanian Government, if on a less violent scale, this condi-
tion appears intended only to allow deferment of the evacua-
tion in the event that Nasir steps up his activities. British of-
ficial thinking tends toward the desirability of reaching an ac-
commodation with Nasir. In view of the practical difficulties
of maintaining British forces in Jordan, especially after Amer-
ican evacuation from Lebanon, the Macmillan government is
anxious to remove them, barring a new emergency.
London remains pessimistic about the future prospects
for Jordan's independence and seems to favor:replacing Samir
Ftifai as Jordanian premier with someone less offensive to
Nasir as a means of holding the state together. Ambassador
Johnston has also indicated that King Husayn is considering
a trip to Europe for a medical check-up, possibly by the end
of October.
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tee Nad
Developments in Saudi Arabia
Saudi Crown Prince Faysal has taken a somewhat harder
line toward American interests in a talk with Ambassador
Heath on 22 September. Faysal, apparently reflecting the in-
fluence of his pro-Egyptian Director General of Petroleum Af-
fairs,Abdulla Tariki, intimated to the ambassador that action
to curtail the rights of the Arabian-American Oil Company
(Aramco) were under consideration. Citing his continuing
frustration with budgetary problems, Faysal alleged that Aramco
had been indifferent to Saudi financial difficulties. He claimed
that income from oil royalties was reduced this year, leaving
fewer funds than anticipated to liquidate debts. Faysal alleged
that Aramco was holding down oil production as a means of
"bringing pressure" on Saudi Arabia, asserting that Aramco
could have maintained production in Saudi Arabia and dimin-
ished it elsewhere.
� Faysal also expressed indignation over what he consid-
ered a breach of faith by Aramco in referAing the long-standing
Onassis dispute to arbitration by an international tribunal in
Geneva, after Faysal felt he had concurrence from the company
to seek settlement by direct and private talks. The tribunal's
judgment :on:. 13 August declared invalid the Saudi grant of oil
shipping rights to Onassis. Faysal's concern is probably less
over this than over the unfavorable precedent it establishes
for settlement of the Saudi claim for $85,pom00 in back tax reve-
nues whichhe considers Aramco owes from profits of the Trans-
Arabian Pipeline. Faysal added that'the purpose of expressing
complaints against Aramco was to emphasize that any action,
which the Saudi Government found necessary would be directed
solely toward the private American oil company and should not
affect the good relations the Saudis wish to maintain with the
United States.
During the same interview, Ambassador Heath also drew
the inference that some relations with the Sib-Soviet bloc were
under consideration. Such a move would be in keeping. with
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vow 110
Faysal's desire to promote a "neutral" foreign policy for
Saudi Arabia, and might be more tempting than before be-
cause of current financial difficulties.
increased milit
operation with Egypt,
the Saudis have been selling ammunition to the
Egyptian armed forces. Closer Saudi relations with the UAR
may be developed at the Cairo meeting of the Political Com-
mittee of the Arab Leauecheduled for 1 October.
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Ghana's Premier Aiding Extremist Nationalists in French
West Africa
Prime Minister Nkrumah of Ghana appears to be pro-
viding direct assistance
to extremist 'nationalist leaders in French West Africa
with the aim of encouraging their rejection of the draft
French constitution in the 28 September referendum. In
a speech to Ghana's National Assembly earlier this month,
Nkrumah made clear his desire to see France's Afilc,an
territories opt for immediate independence, but he insisted
that Ghana would not resort to subversion to promote the
freedom of any colonial territory.
Principal recipient of Nkrumah's attentions seems to
be the leftist African premier of Niger, Djibo Bakary, who
is to have visited Accra recently for talks
with Ghanaian leaders. Subsequently, he publicly recom-
mended that Niger vote "no" in the referendum.
Ministry of Overseas France officials in Paris, Ghana
has also been "bargaining" with elements in French Sudan
whose leaders are still on record as favoring the proposed
new French community. A moderate African leader has
stated that Nkrumah is aiding extreme nationalists finan-
cially.
Moreover, Nkrumah apparently is prepared, in some
Instances, to abet UAR president Nasir's designs in colonial
Africa.
25 Sept 58
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III. THE WEST
Austria Reported Yielding to Pressure on Relations With
Communist China
Austria will "soon"
establish an embassy in Communist China. Vienna has
heretofore hesitated to break with the US on this issue, but,
in response to pressure from commercial interests, the
quasi-official chamber of commerce recently decided to
establish a permanent trade mission in Communist China.
Soviet representatives in Vienna have frequently urged the
Austrians to recognize Peiping.
Soviet pressure was also involved in Austria's decision
to abstain in the 23 September vote in the UN on the Chinese
moratorium proposal. Moscow has complained to the Aus-
trians that Austria had consistently voted with the US
against Sotiet interests and had never separated itself
from the US on matters of importance to the USSR.
Vienna has shown an increasing tendency to soft-pedal
its pro-Western orientation. This has been evident, for
example, in the decision to permit the Communist-front
World Youth Festival to meet in Vienna next year, in the
decision to join the bloc-dominated Eastern Danube Con-
vention, in the increase in official visits, and in Chancellor
Raab's praise of the USSR during his July visit to Moscow.
While these gestures are linked with Austrian hopes for
economic advantages�particularly a reduction in repara-
tions--they also reflect Raab's obsession with the idea of
"breaking down the iron curtain." American Embassy
representatives in Vienna have recently deplored as well
a tendency among other Austrian officials to equate Aus-
tria's international status with that of Finland.
25 Sept Sept 58
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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 and Civilian Mobilization
Special Assistant for Security Operations Coordination
Board of Consultants on Foreign Intelligence Activities
Special Assistant for Foreign Economic Policy
Special Adviser to the President
The Treasury Department
The Secretary of the Treasury
The Department of State
The Secretary of State
The Under Secretary of State
The Under Secretary of State for Economic Affairs
The Deputy Under Secretary for Political Affairs ,
The Deputy Under Secretary for Administration
The Counselor
Director, International Cooperation Administration
The 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 for 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
The Department of the Interior
The Secretary of the Interior
� 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
CONFIDENTIAL
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